City Council Workshops

1. City Council Budget Workshop Agenda Documents: 2015-03-14 CITY COUNCIL BUDGET WORKSHOP AGENDA.PDF 2. City Council Budget Workshop Minutes Documents: 2015-03-14 CITY COUNCIL BUDGET WORKSHOP MINUTES.PDF 3. City Council Budget Workshop Budget Workshop Presentation Bw01 Documents: 2015-03-14 CITY COUNCIL BUDGET WORKSHOP BUDGET WORKSHOP PRESENTATION BW01.PDF  CITY OF WHEATON, ILLINOIS BUDGET WORKSHOP SESSION - SATURDAY, MARCH 14, 2015 - 9:00 A.M. WHEATON CITY HALL, COUNCIL CHAMBERS, 303 W. WESLEY STREET, WHEATON, IL AGENDA I. Budget Overview II. Boards and Commissions III. Senior Citizens IV. Review of 2015-2016 Draft Budget a. Public Works i. General Fund ii. Water Fund iii. Sewer Fund iv. Parking Fund --Maintenance/Outside CBD --Maintenance/CBD --Parking Garage v. Municipal Garage Fund b. Debt Service V. Public Comment VI. Council Questions & Comments VII. Adjournment Persons speaking during Public Comment shall not speak longer than three (3) minutes and shall be permitted to speak only once.  emorandum Michael G. Dzugan Assistant City Manager TO: RECORD DATE: March 17, 2015 SUBJECT: BUDGET WORKSHOP MARCH 14, 2015 Those attending the March 14, 2015 City Council Budget Workshop included Mayor Gresk, Councilman Prendiville, Councilman Rutledge, Councilman Saline, Councilman Scaizo and Councilman Suess. Councilwoman Corry was absent. Also in attendance were City Manager Rose and Department Heads. The Workshop was held in the Council Chambers, Wheaton City Hall, 303 W. Wesley Street. The Workshop began at 9 am. and concluded at 11:05 a.m. The following items were discussed. I. Budget Overview City Manager Rose stated the proposed 2015/2016 budget has revenues in all funds of $91,084,376 and expenditures of $95,722,395. He stated the proposed budget shows a $4,638,019 deficit which relates to capital projects including street lights, North Main Street reconstruction, Manchester Road Water Tower painting, sidewalk repairs, and Streams Lake Dredging. City Manager Rose stated the proposed budget reflects one additional full time position in Engineering, eliminates two part time positions and creates one full time position in Buildings and Grounds, adds one part time crossing guard, and adds 3 part time Seasonal positions in Public Works. He stated although the full time engineering position is being requested, it would not be filled until a fmal decision is made by the State of IDinois on Income Tax distribution to municipalities. City Manager Rose stated the 2015/2016 proposed budget focuses on capital improvements and includes $15,837,286 of total capital improvements which reflects a $4,816,832 increase from the current budget. City Manager Rose stated the General Fund proposed budget includes $41,194,652 of revenue and $41,797,266 of expenditures with operating expenditures at a 1.0% increase and capital at a 3.9% increase with a combined expenditure increase of I .3% from current budget. He reviewed major revenue and expenditure categories. City Manager Rose stated the Water Fund showed $2,716,410 of capital improvements which will in all likelihood need to be reduced due to significant cost for work related to water main construction. He stated the DuPage Water Commission recently notified the City of a reduction in their rates which will help the Water Fund. City I\’lanager Rose stated the Sewer Fund also showed an increase in capital expenditures which will be decreased based on the recent Pilot Study recommendations. City Manager Rose reviewed future financial challenges including capital projects such as CBD Improvements\Downtown plan; storm water and sanitary sewer improvements; DuComm second facility; and the State of Illinois’ negative financial condition, which could lead to significant revenue reductions current proposal to reduce the City’s share of the income tax by - 50°/o equaling a loss of revenue of $2.6M. II. Boards and Commissions City Manager Rose stated the proposed budget reflects a 8.7% expenditure increase which is related to Fire and Police Commission testing. Mr. Ted Witte, Chair of the Environmental Improvement Commission, stated the Commission’s monthly electronic recycling drop off collection will begin again in April 2015 with a new collection company. Mr. Witte stated the Commission has requested funding for an electric car charging station. City Ivlanager Rose stated the charging station request would be placed on a future Planning Session. III. Senior Citizens City Manager Rose stated the Senior Citizens Programs showed no change. The City Council questioned if there was a waiting list and/or had anyone been turned away due to lack of funding. Mr. Joe Kreidl, staff representative for Housing Commission, stated no one had been turned away or was there a waiting list. IV. Review of 2015/2016 Draft Budget A. Public Works General Fund City Manager Rose stated the overall Public Works Department’s budget showed a 3.1% expenditure increase from the previous year. The City Council questioned the last time the Streams Lake was dredged and whether the area would flood if the lake was not dredged. Director of Engineering Redman stated it had been 6 years and if not dredged there could be some minor flooding. He stated the sediment would probably build up enough that the lake area would disappear and revert back to a creek. He stated the lake acts as a holding area for sediment which comes from upstream properties. B. Water Fund City Manager Rose stated the Water Fund showed a 17.2% increase in expenditures which is directly related to an increase in capital projects. He stated, given the cost for underground work recently received by the City for water main work, the supplemental water main replacement amount should be removed from the budget. He stated water main work associated with the Road Program would continue. C. Sewer Fund City Manager Rose stated the Sewer Fund showed a 33.7% expenditure increase which is primarily related to continued efforts with the Capacity Assurance Program; capital enhancements of the sewer system. He stated a report has been completed for the Pilot Project and will be presented to the City Council in April 2015. He stated based upon this report the amount in the proposed budget for the Capital Assurance Program should be reduced. D. Parking Fund City Manager Rose stated the Parking Fund showed an expenditure increase of 12.2% which relates to resurfacing of Parking Lot No. 10. The City Council questioned if parking rates are appropriate given costs. City Manager Rose stated staff is constantly looking at its overselling program to ensure effective utilization and would parking review ratesthis coming fiscal year. The City Council questioned if permeable payers would be effective for Lot No. 10. Director of Engineering Redman stated the Lot No. 10 project was an asphalt overlay. He sated changing the lot to permeable payers at this time would be significantly more expensive since permeable payers would require a total reconstruction of the parking lot. E. Municipal Garage Fund City Manager Rose stated the Municipal Garage Fund showed a 41.5% expenditure increase which is primarily related to the purchase of more vehicles than the previous budget year, which includes a Fire Engine Pumper. The City Council noted from the five year replacement schedule another Fire Engine Pumper and a $IM Ladder truck are to be replaced within the next 3 years. Fire Chief Schulz stated these vehicles are closely monitored for cost of repair and when warranted there useful life is extended. He stated the current Ladder Truck is over 10 years old showing signs of corrosion, and wear and tear. F. Debt Service The City Council requested an exhibit showing the maturity dates and rates of the various bond issues. The City Council also felt if the issues were callable it may make sense to seek lower rates or use high fund reserve balances which are not earning any income to pay off the debt. V. Public Comment There was no public comment VI. Council’s Questions and Comments There were no further questions or comments by the Council. VII. Adjournment The City Council Budget Workshop Session was adjourned at 11:05 a.m. cc: iayor and City Council City Manager City Clerk Department Heads 3  City of Wheaton, Illinois Annual Draft Budge! Fiscal Year 2015-2016 1 2015-2016 Draft Budget Budget Presentation Agenda Fiscal Year 2015-2016 Draft Budget I. Budget Overview — All Funds a. Revenues b. Expenditures c. Personnel d. Pension Contributions e. Capital Projects f. Property Tax Levy II. General Fund III. Motor Fuel Tax Fund IV. Water Fund V. Sewer Fund VI. Future Financial Challenges 2015-2016 Draft Budget All Funds Totals FY 2015 FY 2016 FY 2016 vs FY 2015 Budget Budget Amount % Revenues $ 89,442,842 $ 91,084,376 $ 1,641,534 1.8% Expenditures Operating $ 78,404,912 $ 79,885,109 $ 1,480,197 1.9% Capital 11,020,454 $ 15,837,286 $ 4,816,832 43.7% Total Expenditures $ 89,425,366 $ 95,722,395 $ 6,297,029 7.0% Difference $ 17,476 $ (4,638,019) 2015-2016 Draft Budget Total Revenues - $91,084,376 Revenues FY 2016 All Funds by Type Revenues Budget Taxes $ 32,594,532 Intergovernmental $ 14,228,548 LEenses $ 158,750 Interfund Transfers Permits $ 743,000 l8.7% Charges for ServEes $ 22,611,405 Miscellaneous 0.8% Flies and Forfeits $ 844,500 Invernent Investment Income $ 2,139,197 Taxes Mceflaneous $ 748,500 2.3% ._ -. Interfund Transfers $ 17,015,944 Fines and Forfeits $ 91,084,376 0.9% Water Serve Charges $ 13,102,732 Sewer Servce Charges $ 3,657,619 charges for Total Water & Sewer Charges $ 16,760,351 Services % of total Charges for Services 74.1% 24.8% Permits 0.8% Intergovernmental Licenses 15.6°h 0. 2 % 2015-2016 Draft Budget Total Expenditures - $95,722,395 Expenditures FY 2016 Expenditures Budget All Funds by Type Personal Servkes $ 23,643,574 Empbyee Benefits $ 9,700,295 Suppls & Materials $ 3,472,225 Interfund Transfers Charges & Services $ 22,239,094 1O.5% Personal Services Pension Benefits 24.7% Capital Outlays $ 15,837,286 Debt Serve $ 6,275,623 Pensbn Benefits $ 4,505,000 Debt Service Interfund Transfers $ 10,049,298 6.6% S 95,722,395 Em ployee Benefits 34.8% personnel-related costs Capital Outlays 16.5% Supplies & Materials 3.6% Charges & Services 23.2°h 2015-2016 Draft Budget FuII-Tme PosHions % of Function FY 07/08 FY 15/16 Total Full-Time Positions General Government 46 45 19% 270 Fire Department 36 37 16% Police Department 94 81 35% 260 -—-----------------—-----—-------—- —----———---—— -- Public Works Department 85 69 30% 250 Total City Employees 261 232 100% ——-—------ —--——---——-- 240 — Since FY 07/08,29 fewer full-time positions (or-11.1°h). h, 230 t -- 220 210 FYO7/08 Ff08/OS FYO9/1O Ff10/li F’fll/12 Ff12113 Ff13114 FY14/15 Ff15/lB Actual Actual Actual Actual Actual Actual Actual Budget Budget Position Changes: • FT Project Engineer positon was added in the Engineering Department (General Fund). • FT Maintenance Custodn position was added and 2 PT positons were eliminated in the Building & Grounds Department (General Fund). • 1 PT Crossäg Guard position was added in the Police Department (General Fund). • 3 PT Seasonal Worker positons were added in the Public Works Department (General Fund).  2015-2016 Draft Budget City Pension Contributions Current 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 FY 2016 vs FY 2015 Funded Pension Plan Actual Actual Actual Actual Budget Budget Amount % Ratio Poke 1,913,209 $ 1,782,779 $ 1,824,529 $ 1,961,084 $ 2,000,982 $ 39,898 2.0% 65.8% $ 1,887,986 $ F-e $ 982,397 $ 948,469 $ 931,961 $ 944,837 $ 1,056,269 $ 1,010,419 $ (45,850) -4.3% 78.1% IMRF $ 1,295,252 $ 1,382,367 $ 1,440,117 $ 1,461,495 $ 1,512,090 $ 1,448,251 $ (63,839) -4.2% 79.5% Total $4,165,635 $ 4,244,045 $4,154,857 $ 4,230,861 $ 4,529,443 $ 4,459,652 $ (69,791) -l.5% Pohce & Fire Penskn. City contributbn determined annuaNy by actuary. IMRF. Empbyer rate decreased from 13.56% to 12.60% (7.1%) for calendar year 2015. City Pension Contributions Eniloyee Contribution Rates: Poke 9.910% Fiscal Year Amt Increase % Increase Fire 9.455% 2010-11 $ 604,374 17.0% IMRF 4.500°h 2011-12 $ 78,410 1.9% 2012-13 $ (89,188) -2.1% Eni,loyer Contribution Rates: 2013-14 $ 76,004 1.8% Poke 29.93°h 2014-15 $ 215,981 5.1°h Fre 26.51% 5-yr Average 4.7% IMRF 12.60% Past 3 Years Average 1.6% 2015-2016 Draft Budget CaptaI Improvements Capital Improvements By Fund Fund Amount Municipal Garage $ 2,825,404 General - Sewer General $ 2,797,459 18% Sewer $ 2,794,860 Water $ 2,716,410 Motor Fuel Tax $ 2,586,000 Capital Projects $ 1,022,072 Municipal Garage 18% Technology RepI. $ 303,583 Parking $ 270,000 Capital Equip. Building Renewal $ 202,000 Repi. Water Public Library $ 178,270 1% 17% Capital Equip. RepI. $ 141,228 Public Libra $ 15,837,286 1% Building Renewal 1% Parking —. Motor Fuel Tax 2% 16% Technology RepI.] Capital Projects 2% 6% 2015-2016 Draft Budget CaptaI Improvements Major Capital Improvements Amount Fund Fund Amount 2015 Annual Road Program Road Construction $ 2,586,000 MFT Municipal Garage $ 2,825,404 Water Mains $ 1,112,000 Water General $ 2,797,459 Sanitary Sewers $ 20,000 Sewer Sewer $ 2,794,860 Storm Sewers $ 145,000 Sewer Total 2015 Annual Road Program $ 3,863,000 Water $ 2 716,410 Motor Fuel Tax $ 2,586,000 Sidewalk Repair Program $ 400,000 General Capital Projects $ 1,022,072 Street Light Replacements $ 300,000 General Technology Repl. $ 303,583 North Main Street Reconstruction $ 277,928 General Parking $ 270,000 West & Childs Traffic Signal System Upgrade $ 250,000 General ‘t Buildinri Renewal 202 000 Indiana St/Sunnyside Ave Reconstruction $ 220,000 General Bikeway Signage and Network Map (BO% grant) $ 180,200 General Public Library $ 178,270 Controlled Intersections Repavement Program $ 155,741 General Capital Equip. RepI. $ 141,228 Police Facility Parking Lot Rehabilitation $ 137,000 General $ 15,837,286 City Hall Parking Lot Rehabilitation $ 110,000 General Guard Rail Replacements Program (3 locations) $ 100,000 General North Main Street Reconstruction $ 822,072 Capital Projects Manchester/Wesley Bridge Project $ 200,000 Capital Projects Manchester Tower Painting $ 800,000 Water Supplemental Water Main Replacements $ 500,000 Water Butterfield Road Widening Project-Water Mains $ 120,000 Water Sanitary Sewer Capacity Assurance Program $ 1,300,000 Sewer Streams Lake Dredging Project $ 600,000 Sewer Elm & Blanchard Lift Station Rehabilitation $ 258,750 Sewer Sanitary Sewer Rehabilitation Lining Program $ 150,000 Sewer Storm Sewer Rehabilitation Lining Program $ 150,000 Sewer Parking Lots #6 and #9 Preventative Maintenance $ 140,000 Parking Parking Lot #10 Rehabilitation $ 130,000 Parking Vehicle Replacements $ 2,825,404 Municipal Garage floor Repairs/Repaint at Public Works Garage $ 125,000 Building Renewal 2015-2016 Draft Budget 2014 Property Tax Levy Distribution 2014 Property Tax Levy Debt Service General 16% Corporate General Corporate $ 8,989,287 Fire Pension // 48% Library $ 3,650,000 Police Pension $ 2,000,982 Fire Pension $ 1,010,419 Police Pension 11% Debt Service $ 2,993,269 $ 18,643,957 Library 20% 2015-2016 Draft Budget 2014 Property Tax Levy 2013 Levy 2014 Levy 2014 vs 2013 Levy FY 2014-15 FY 2015-16 Amount % Budget Budget Change Change General Purpose Levy General Corporate $ 9,240,952 $ 8,989,287 $ (251,665) -2.7% Library $ 3,550,000 $ 3,650,000 $ 100,000 2.8% Police Pension $ 1,961,084 $ 2,000,982 $ 39,898 2.0% Fire Pension $ 1,056,269 $ 1,010,419 $ (45,850) -4.3% Total General Purpose Levy $ 15,808,305 $ 15,650,688 $ (157,617) -1.0% Debt Service Levy Debt Service $ 3,233,433 $ 2,993,269 $ (240,164) -7 .4°Io Total Property Tax Levy $ 19,041,738 $ 18,643,957 $ (397,781) -2.1% 2015-2016 Draft Budget General Fund FY2015 FY2016 FY2O16vsFY2O15 Budget Budget Amount % Revenues $40,317,124 $41,194,652 $ 877,528 2.2% Expenditures Operating $ 37,381,441 $ 37,769,487 $ 388,046 l.0% Capital $ 3,876,840 $ 4,027,779 $ 150,939 3.9% Total Expenditures $41,258,281 $41,797,266 $ 538,985 1.3% Difference $ (941,157) $ (602,614) Strategic Priority Financial Stability “Annual operating costs increase by 2% or ss, beginning with the FcaI Year 2012-13 Budget.” - Status: FY 2015-16 Operating Budget Increase: 1.0% 2015-2016 Draft Budget General Fund FY 2015 FY 2015 FY 2015 Budget vs Projected Budget Projected Amount % Revenues $ 40,317,124 $ 41,535,315 $ 1,218,191 3.0% Expenditures $ 41,258,281 $ 41,284,353 $ 26,072 0.1% Difference $ (941,157) $ 250,962 FY 2016 Budget vs FY 2015 FY 2016 FY 2015 Projected Projected Budget Amount % Revenues $ 41,535,315 $ 41,194,652 $ (340,663) -0.8% Expenditures $ 41,284,353 $ 41,797,266 $ 512,913 1.2% Difference $ 250,962 $ (602,614) 2015-2016 Draft Budget General Fund Actual Actual Budget Projected Budget 2012/2013 2013/2014 2014/2015 2014/2015 2015/2016 Beginning Fund Balance $ 17,150,187 $ 20,803,325 $ 24,172,577 $ 24,172,577 $ 24,423,539 Revenues $ 39,244,450 $ 40,912,618 $ 40,317,124 $ 41,535,315 $ 41,194,652 Expenditures $ 35,191,312 $ 37,043,366 $ 39,908,281 $ 39,934,353 $ 40,797,266 Transfers Out (MFT) $ (400,000) $ (500,000) $ (1,350,000) $ (1,350,000) $ (1,000,000) Difference 3.653.138 3,369.252 (941,157) 250,962 $ (602,614) Ending Fund Balance $ 20,803,325 $ 24,172,577 $ 23,231,420 $ 24,423,539 $ 23,820,925 Strategic Priority Financial Stability “Operating reserves equal 40% of yearly operating expenditures in the General Fund by April 30, 2016.” - Status: April 30, 2016 Operating Reserve: 63.1°h 2015-2016 Draft Budget General Fund Revenues $41,194,652 FY 2016 Major Revenues Budget Fines and Forfeits Property Taxes $ 12,804,257 4 1. % Investment Income 6,300,000 Charges for 0.2% Sales Tax $ Services Permits 8. % 2 Miscellaneous 0.2% Sales Tax-Local $ 4,000,000 1.8% Income Tax $ 5,230,000 nterfundTrans 3% Utility Taxes $ 4,297,250 Licenses. 0.4% -_———-—-—— Total Major Revenues $ 32,631,507 % of Total General Fund Revenues 79. 2% Interaovernmental Revenues 7 Intergovernmental 31.3% Sales Tax $ 6,300,000 Income Tax $ 5,230,000 Use Tax $ 1,000,000 Personal Property Replacement Tax $ 229,270 Grants $ 144,160 Total Intergovernmental Revenues $ 12,903,430 % of Total General Fund Revenues 31.3% 2015-2016 Draft Budget General Fund Revenues Change from Change from % of FY 2016 FY 2015 Budget FY 2015 Projected Total Budget Amount % Amount % Taxes 53.1% $ 21,892,757 $ (36,313) -0.2% $ (512,976) -2.3% Intergovernmental 31.3% $ 12,903,430 $ 548,530 4.4% $ 281,230 2.2% Licenses 0.4% $ 158,750 $ 31,750 25.0% $ (4,890) -3.0% Permits 1.8% $ 743,000 $ 277,500 59.6% $ (60,000) -7.5% Charges for Services 8.2% $ 3,387,675 $ (27,081) -0.8% $ (92,069) -2.6% Fines and Forfeits 1.4% $ 592,500 $ (4,500) -0.8% $ 40,660 7.4% Investment Income 0.2% $ 75,000 $ 5,000 7.1% $ 5,000 7.1% Miscellaneous 0.2% $ 69,000 $ 5,500 8.7% $ (74,760) -52.0% Interfund Transfers 3.3% $ 1,372,540 $ 77,142 6.0% $ 77,142 6.0% Total Revenues 100.0% $ 41,194,652 $ 877,528 2.2% $ (340,663) -0.8% 2015-2016 Draft Budget General Fund-Taxes Change from Change from % of FY 2016 FY 2015 Budget FY 2015 Projected Total Budget Amount Amount % Property Tax-Corporate 41.1% $ 8,989,287 $ (94,048) -1.0°h $ (129,905) -1.4°k Property Tax-Fire Pension 4.6% $ 1,010,419 $ (45,850) -4.3% $ (45,850) -4.3% Property Tax-Police Pension 9.1% $ 2,000,982 $ 39,898 2.0% $ 39,898 2.0% Property Tax-Road and Bridge 3.2% $ 709,616 $ 17,766 2.6% $ 7,687 1.1% Property Tax-SSA #3 0.1°h $ 12,949 $ 149 1.2% $ 108 0.8°h Property Tax-SSA #7 0.4°h $ 80,254 $ (2,478) -3.0% $ (1,850) -2.3% Property Tax-Prior Years 0.0% $ 750 $ - 0.0% $ - 0.0% Sales Tax-Local 18.3% $ 4,000,000 $ 150,000 3.9% $ 50,000 1.3% Utility Tax-Gas 4.0% $ 865,000 $ 15,000 1.8% $ 5,000 0.6% Utility Tax-Electric 8.0% $ 1,742,250 $ (57,750) -3.2% $ 17,250 1.0% Utility Tax-Telecommunications 7.7°h $ 1,690,000 $ (235,000) -12.2% $ (80,000) -4.5% Auto Rental Tax 0.0% $ 250 $ - 0.0% $ 10 4.2% Real EstateTransferTax 3.3% $ 725,000 $ 175,000 31.8°h $ (375,000) -34.1% Foreign Fire Insurance Tax 0.3% 66,000 $ 1,000 1.5% $ (324) -0.5% Total Taxes 100.0% $ 21,892,757 $ (36,313 -0.2% —. $ (512,976) -2.3% 2015-2016 Draft Budget General Fund-Intergovernmental Revenues Change from Change from % of FY 2016 FY 2015 Budget FY 2015 Projected Total Budget Amount % Amount Sales Tax 48.8% $ 6,300,000 $ 500,000 8.6% $ 100,000 1.6% Income Tax 40.5% $ 5,230,000 $ 80,000 1.6% $ 100,000 1.9°h Use Tax 7.7% $ 1,000,000 $ 60,000 6.4% $ 20,000 2.0% Personal Property Replacement Tax 1.8% $ 229,270 $ 7,070 3.2% $ 7,070 3.2% Grants 1.1% $ 144,160 $ (98,540) -40.6°h $ 54,160 60.2% Total Intergovernmental 100.0% $ 12,903,430 $ 548,530 4.4% $ 281,230 2.2% 2015-2016 Draft Budget General Fund Revenues FY 2016 Budget vs FY 2008 Actual Key Losses Recovery FY 2010 Actual vs FY 2016 Budget vs FY 2008 FY 2010 FY 2008 Actual FY 2016 FY 2008 Actual Actual Actual Amount Budget Amount Sales Tax $ 6,396,261 $ 5,545,846 $ (850,415) -13.3% $ 6,300,000 $ (96,261) -1.5% Income Tax $ 5,102,336 $ 4,401,349 $ (700,987) -13.7% $ 5,230,000 $ 127,664 2.5% Real Estate Transfer Tax $ 802,117 $ 626,134 $ (175,983) -21.9% $ 725,000 $ (77,117) -9.6% Permits $ 620,963 $ 287,093 $ (333,870) -53.8% $ 743,000 $ 122,037 19.7°h Fines and Forfeits $ 751,313 $ 545,899 $ (205,414) -27.3% $ 592,500 $ (158,813) -21.1% Totals $13,672,990 $ 11,406,321 S (2,266,669) -1G. % 6 $ 13,590,500 $ (82,490) -0.6% 2015-2016 Draft Budget 2014 Property Tax Levy General Fund OnIy* 2013 Levy 2014 Levy FY 2014-2015 FY 2015-2016 2014 vs 2013 Levy Budget Budget Amount % General Corporate $ 9,240,952 $ 8,989,287 $ (251,665) -2.7% Police Pension $ 1,961,084 $ 2,000,982 $ 39,898 2.0% Fire Pension $ 1,056,269 $ 1,010,419 $ (45,850) -4.3% Total $ 12,258,305 $ 12,000,688 $ (257,617) -2.1% *ExcIudes Library and Debt Service 2015-2016 Draft Budget General Fund Expenditures $41,797,266 FY 2016 Budget Charges & Capital Outlays Personal Services $ 18,749,181 Services 6.7% Interfund Employee Benefits $ 7,731,479 15 5% Supplies & _i Transfers 11.6% Supplies & Materials Charges & Services Capital Outlays $ 1,190,969 $ 6,486,908 $ 2,797,459 Materials 4 Interfund Transfers $ 4,841,270 2.8% — Total Expenditures $41,797,266 Employee— Benefits 63.4% personnel-related costs Personal 18.5% Services 44.9% 2015-2016 Draft Budget General Fund Expenditures Change from Change from % of FY 2016 FY 2015 Budget FY 2015 Projected Total Budget Amount % Amount % Personal Services 44.9% $ 18,749,181 $ 475,643 2.6% $ 584,017 3.2% Employee Benefits 18.5% $ 7,731,479 $ 16,251 0.2% $ 74,345 1.0% Supplies & Materials 2.8% $ 1,190,969 $ 87,512 7.9% $ 173,672 17.1% Charges & Services 15.5% $ 6,486,908 $ 157,477 2.5% $ (825,624) -11.3% Capital Outlays 6.7% $ 2,797,459 $ 278,117 11.0% $ 982,518 54.1% Interfund Transfers 11.6% $ 4,841,270 $ (476,015) -9.0% $ (476,015) -9.0% Total Expenditures 100.0% $41,797,266 $ 538,985 1.3% $ 512,913 1.2% 2015-2016 Draft Budget Motor Fuel Tax Fund 2012-13 2013-14 2014-15 2014-15 2015-16 Actual Actual Budget Projected Budget Beginning Fund Balance $ 1,397,914 $ 1,515,918 $ 1,711,001 $ 1,711,001 $ 1,976,601 Revenues MFT AUotments $ 1,260,109 $ 1,305,837 $ 1,285,000 $ 1,285,000 $ 1,259,000 Transfer In $ 400,000 $ 500,000 $ 1,350,000 $ 1,350,000 $ 1,000,000 IL Capital Program $ 240,654 $ 240,654 $ 240,654 $ 481,308 $ - Other $ 13,881 $ 13,567 $ 2,000 $ 1,900 $ 2,000 Total Revenues $ 1,914,644 $ 2,060,058 $ 2,877,654 $ 3,118,208 $ 2,261,000 Expenditures $ 1,796,640 $ 1,864,975 $ 2,847,608 $ 2,852,608 $ 2,626,000 Difference $ 118,004 $ 195,083 $ 30,046 $ 265,600 $ (365,000) Ending Fund Balance $ 1,515,918 $ 1,711,001 $ 1,741,047 $ 1,976,601 $ 1,611,601 • MET Allotments Projected to decrease of 2.0Yo compared to FY 2014/15 Budget. - • $1,000,000 Transfer from the General Fund. Decrease of $350,000 from FY 20 14/15. • Strategic Priority Quality Infrastructure. 2014 Annual Road Program $2.6 million. - - Fund Balance Policy 50°k of Annual Expenditures $ 898,320 $ 932,488 $ 1,423,804 $ 1,426,304 $ 1,313,000 Over/(Under) Policy Amount $ 617,598 $ 778,513 $ 317,243 $ 550,297 $ 298,601 2015-2016 Draft Budget Water Fund 2012-13 2013-14 2014-15 2014-15 2015-16 Actual Actual Budget Projected Budget Beginning Fund Balance $ 2,753,530 $ 1,732,145 $ 2,098,725 $ 2,098,725 $ 2,216,241 Revenues $ 8,823,247 $ 10,316,020 $ 12,182,156 $ 11,954,017 $ 13,268,232 Expenses $ 9,844,632 $ 9,949,440 $ 11,836,147 $ 11,836,501 $ 13,874,047 Diference $ (1,021,385) $ 366,580 $ 346,009 $ 117,516 $ (605,815) Ending Fund Balance $ 1,732,145 $ 2,098,725 $ 2,444,734 $ 2,216,241 $ 1,610,426 • Revenues reflect a %3 increase in the water usage rate on January 1, 2016, as recommended by the water rate study. • $7.5 million for purchase of water from DWC, an increase of $571,596 (or 8.2%) from FY 2014/15 budget. FY 2015/16 DWC Water Purchases accounts for 54% of total Water Fund expenses. • $2.7 million in capital improvements: • $1.1 million for Water Main Replacements done in conjunction with the Annual Road Program. • $800,000 for Manchester Water Tower Painting. • $500,000 for Supplemental Water Main Replacements. • $120,000 for water main relocations required for IDOTs Butterfield Road Widening Project (carried forward from FY 2014/15 budget). • $400,000 for the Water Automated Meter Reading (AMR) Replacement program. 2015-2016 Draft Budget Water Fund 2012-13 2013-14 2014-15 2014-15 2015-16 Actual Actual Budget Projected Budget Beginning Fund Balance $ 2,753,530 $ 1,732,145 $ 2,098,725 $ 2,098,725 $ 2,216,241 Revenues Water Servke Charges $ 8,685,063 $ 10,118,352 $ 12,045,156 $ 11,759,367 $ 13,098,232 Other Revenues $ 138,184 $ 197,668 $ 137,000 $ 194,650 $ 170,000 Total Revenues $ 8,823,247 $ 10,316,020 $ 12,182,156 $ 11,954,017 $ 13,268,232 Expenses Operating Expenses $ 2,525,553 $ 2,741,854 $ 3,068,867 $ 2,981,615 $ 3,616,326 DWC Water Purchases $ 5,689,066 $ 6,286,804 $ 6,969,715 $ 6,872,855 $ 7,541,311 Capital Expenses $ 1,630,013 $ 920,782 $ 1,797,565 $ 1,982,031 $ 2,716,410 Total Expenses $ 9,844,632 $ 9,949,440 $ 11,836,147 $ 11,836,501 $ 13,874,047 Difference $ (1,021,385) $ 366,580 $ 346,009 $ 117,516 $ (605,815) Ending Fund Balance $ 1,732,145 $ 2,098,725 $ 2,444,734 $ 2,216,241 $ 1,610,426 2015-2016 Draft Budget Sewer Fund 2012-13 2013-14 2014-15 2014-15 2015-16 Actual Actual Budget Projected Budget Beginning Fund Balance $ 3,673,137 $4,842,847 $4,326,690 $4,326,690 $4,414,000 Revenues $ 4,431,618 $ 3,970,170 $ 3,826,240 $ 3,700,661 $ 3,665,619 Expenses $ 3,261,908 $ 4,486,327 $ 4,019,968 $ 3,613,351 $ 5,374,151 Difference $ 1,169,710 $ (516,157) $ (193,728) $ 87,310 $ (1,708,532) Ending Fund Balance $4,842,847 $4,326,690 $4,132,962 $4,414,000 $ 2,705,468 • Sewer Service Charges $3.7 million, a $163,621 (or 4.3%) decrease compared to FY 2014/15 Budget. - • $2.8 million in capital improvements: • $1.3 million for Sanitary Sewer Capacity Assurance Program. • $600,000 for Streams Lake Dredging Project. • $300,000 for Sanitary Sewer and Storm Sewer Rehabilitation Lining. • $258,750 for the Elm & Blanchard Lift Station Rehabilitation. • $165,000 for Sanitary Sewer and Storm Sewer Replacements done in conjunction with the Annual Road Program. 2015-2016 Draft Budget Sewer Fund 2012-13 2013-14 2014-15 2014-15 2015-16 Actual Actual Budget Projected Budget Beginning Fund Balance $ 3,673,137 $ 4,842,847 $ 4,326,690 $ 4,326,690 $ 4,414,000 Revenues Sevr Service Charges $ 4,424,895 $ 3,959,174 $ 3,821,240 $ 3,687,291 $ 3,657,619 Other Revenues $ 6,723 $ 10,996 $ 5,000 $ 13,370 $ 8,000 Total Revenues $ 4,431,618 $ 3,970,170 $ 3,826,240 $ 3,700,661 $ 3,665,619 Expenses Operating Expenses $ 2,400,627 $ 2,518,964 $ 2,467,759 $ 2,385,607 $ 2,579,291 Capital Expenses $ 861,281 $ 1,967,363 $ 1,552,209 $ 1,227,744 $ 2,794,860 Total Expenses $ 3,261,908 $ 4,486,327 $ 4,019,968 $ 3,613,351 $ 5,374,151 Difference $ 1,169,710 $ (516,157) $ (193,728) $ 87,310 $ (1,708,532) Ending Fund Balance $ 4,842,847 $ 4,326,690 $ 4,132,962 $ 4,414,000 $ 2,705,468 2015-2016 Draft Budget Future Financial Challenges • Capital Projects. o CBD Improvements\Downtown Plan ($53 million). o Sanitary Sewer Improvements. o Storm Water Improvements. o Surface Transportation Program ($1.7 million). o Supplemental Water Mains ($1.0 million annually). o Ash Tree Replacements ($1.3 million). o Sidewalks ($1.0 million). o Misc. Road Related Projects-Street Lighting, Traffic Signals, Guard Rails. ($1.7 million) • DuComm Second Facility ($1.0 million). • Union Related Wage and Benefit Increases. • State of Illinois Fiscal Condition. 2015-2016 Draft Budget Future Financial Challenges • Local Government Distributive Fund (LGDF). o State enacted an Income Tax in 1969. Municipalities received a portion of the new tax after agreeing to a limitation on their ability to enact a local income tax. o Cities and Counties currently receive w 8 /a of the State income tax revenues thru the LGDF. o LGDF goes into the City’s General Fund to support Police, Fire, Public Works and General Administration. o LGDF ($5,230,000) accounts for approximately 12.7% of the City’s total General Fund revenues. o Governor Rauner has proposed to eliminate 50% of the LGDF distributions to local governments. Wheaton’s loss would be $2,615,000 or approximately 6.4% of General Fund revenues. 2015-2016 Draft Budget Future Financial Challenges • Local Government Distributive Fund (LGDF). o $2,615,000 is: • 75% of the General Fund Public Works Personnel Costs. • 23/c of the Police Departments Personnel Costs. • 44% of the Fire Departments Personnel Costs. • 48% of the General Governments Personnel Costs. • 65% of the General Funds Capital Projects Budget. o These numbers are important because lO% of General Fund expenditures are used for Capital Projects and 63% is allocated to Personnel Costs. o To replace the $2,615,000 revenue loss would, by way of example, require a $.14 increase in the City’s property tax rate, a ll.6% increase in the total property tax levy.