Administrative Services EVANSTON October 19, 2015 FY 2016 Proposed Budget Presentation Martin Lyons Assistant City Manger / CFO 1

Administrative Services 1

EVANSTON

October 19, 2015

FY 2016 Proposed Budget Presentation

Martin Lyons Assistant City Manger / CFO


PRESENTATION OUTLINE

TODAY1. FY 2016 Budget Overview2. New Funds for FY 20163. Property Tax Levy4. Upcoming Budget Discussion Schedule5. Questions

PUBLIC MEETING SATURDAY OCT 24 9AM 6. Library Fund 7. Proposed FY 2016 Capital Improvement Plan


FY 2016 PROPOSED BUDGETTotal Proposed Budget for FY 2015 is $294,710,257 (including interfund transfers, and excluding the Library) – Pg. 37

General Fund Revenues – $111,725,181 – Pg. 49, 50-52

General Fund Expenditures – $110,187,198 – Pg. 49, 50

2016 Proposed Budget Adjustments on pages 18 and 19 of Proposed Budget document, providing multiple options for revenue or expense changes.

Large increase in General Fund revenues & expenses due to GASB 67 & 68 Police/Firefighter Pension changes.


2016 BUDGET OVERVIEW

Challenges• Pensions• Debt and Capital• State of Illinois

Good News• Stable Revenue Increases• Holding Operating Expenses


2016 BUDGET -- PENSIONS

• FY 2015 Pension Contribution--$15.0 million• FY 2016 Pension Contribution-- $16.7 million• Actuarial recommended increase-- $1.7 million• Proposed property tax increase for pensions-- $800,000• Reduced Gen Fund Levy-- $350,000• Reduced Gen Assistance Fund Levy-- $550,000


2016 DEBT AND CAPITAL• Projected 2015 year-end unabated debt $111.2 million• Debt policy limit $113 million• 2016 unabated debt funded capital

• $8.25 million– all projects page 217• $1 million– Robert Crown Center Design – page 216

• Remaining $9 million for Crown in 2017• New debt limit proposed-- $125 million


2016 – CAPITAL FINANCING • 2016 issuing $9.25 million in new bonds• 2016 pay off $9.5 million in bonds• Total capital improvements plan $56.1 million• Total capital improvements plan funded from debt $31

million• 2016 unabated debt funded capital

• $8.25 million– all projects page 217• $1 million– Robert Crown Center Design – page 216

• Remaining $9 million for Crown in 2017• New debt limit proposed-- $125 million


2016 TOTAL CITY DEBT AND CAPITAL• Total pension debt for 2014 was $198 million• $160.8 million governmental • $91.1 million in enterprise bonds and IEPA loans• Total of above debt at end of 2014 is $450 million

• Pension funding is increasing to cover increased liability• Capital debt service costs will also increase unless the

City provides ongoing revenue for ongoing capital


2016 STATE OF ILLINOIS

• Potential shared revenue cuts:• Local Government Distributive Fund (LGDF)• Motor Fuel tax distribution• Property tax freeze• Other taxes (telecommunications, PPRT)

• Reduced grant opportunities


2016 GENERAL FUND REVENUES • Stable tax revenue increases

• Sales tax• Income tax• Real Estate Transfer tax• Liquor tax

• Permit and economic revenues • Strong permitting revenue • Increased hotel tax (can transfer to General Fund)

• Good Neighbor Fund • Details on page 17


2016 GENERAL FUND EXPENSES• General Wage Increase below 2.5%• Health insurance decrease 3%• Solid Waste (SWANCC)-- $100,000

• $1.5 million in alternative expense reductions

• Details on page 19


FY 2016 PROPOSED BUDGETPOSITION CHANGES

Position Funding ChangeAdd 1 FTE for Electrical Inspector/Plan Reviewer

General Fund 1

Add 1 FTE Outreach worker General Fund (reimbursed by Good Neighbor Fund) 1

Add 1 FTE for Transportation and Mobility Coordinator

Economic Development Fund 1

Add 0.4 FTE Special Events Coordinator

General Fund 0.4

Add 1.5 FTE for Gibbs Morrison Cultural Center

General Fund 1.5

Reduce 1 FTE for Community Engagement Specialist

Economic Development Fund -1

Reduce 1 FTE for Administrative Secretary

General Fund -1

Reduce 1 FTE for Director of Public Works

General Fund -1

TOTAL CHANGE 1.9


FY 2016 PROPOSED BUDGETGENERAL FUND PROPOSED BUDGET

FY2016 Total Revenues (Total Revenues w/ Trending + Proposed FY2016 Revenues) 112,138,711$

FY2016 Total Expenses (Total Expenses w/ Contractual Increases + Proposed FY2016 Expense Adjustments) 111,563,196$ FY2016 Projected Surplus 575,515$

Projected surplus from budget balancing worksheet 575,515$

Projected surplus from baseline revenues and expenses$1,537,982

Projected surplus from budget balancing worksheet$ 575,515

Additional $1.5 million in cuts for consideration –page 19• Elimination of city-wide cell phone allowance $(31,418)• Remove baseline transfer to Capital Improvement Fund $(500,000)• Reduce "Legal Services--General" $(22,000)• Reduction in personal computer equipment $(47,428)• Eliminate 2 position (Currently vacant) + Vacancy Savings $ (410,527)• Hold 2 vacancies $ (200,000)• Eliminate Medical Billing position $ (70,000)• Eliminate 2 position (vacant) -$(173,844)• Staff reorganization savings $ (84,685)


FY 2016 PROPOSED BUDGETNEW FUNDS – GOOD NEIGHBOR FUND

Increased ExpensesNew Job Training program (Good Neighbor Fund) 100,000$ One additional FTE Outreach worker (Good Neighbor Fund) 80,000$

TOTAL 180,000$ Increased Revenues

Increased funding to aid families affected by violent crime 50,000$ Increased funding for youth and young adult division from Good Neighbor Fund 100,000$ Increased funding for at-risk youth job training 150,000$ Transfer from Good Neighbor Fund to pay for one ambulance company 200,000$

TOTAL 500,000$

Good Neighbor Fund impact on General Fund

The 2016 Budget also includes a $500,000 transfer to the Capital Fund.


FY 2016 PROPOSED BUDGETNEW FUNDS – SPECIAL SERVICE DISTRICT #6

Special Service District #6: adopted by Council on July 13, 2015. Tax cap set at 0.45% of the EAV for the area– Dempster, Chicago Ave, Main Street.

• $210,500 in proposed revenue

• $200,000 in proposed expenses


FY 2016 PROPOSED BUDGETPROPERTY TAX LEVY HISTORY

2014 ADOPTED

LEVY

2015 PROPOSED

LEVY

$ VARIANCE INCREASE / (DECREASE)

% VARIANCE INCREASE / (DECREASE)

GENERAL FUNDGross Levy 8,841,731 8,556,481 (285,250) -3.2%Loss Factor* 176,835 171,130 (5,705) -3.2%Net Levy - General Fund 8,664,896$ 8,385,351$ (279,545)$ -3.2%

GENERAL FUND - IMRF PENSIONGross Levy 2,777,778 2,719,691 (58,087) -2.1%Loss Factor* 55,556 54,394 (1,162) -2.1%Net Levy - IMRF Pension 2,722,222$ 2,665,297$ (56,925)$ -2.1%

GENERAL ASSISTANCE FUNDGross Levy 1,376,074 816,327 (559,747) -40.7%Loss Factor* 27,521 16,327 (11,195) -40.7%Net Levy - General Assistance 1,348,553$ 800,000$ (548,553)$ -40.7%

TOTAL CITY AND GA FUND $ 12,735,671 $ 11,850,648 $ (885,023) -6.95%



2014 ADOPTED

LEVY

2015 PROPOSED

LEVY

$ VARIANCE INCREASE / (DECREASE)

% VARIANCE INCREASE / (DECREASE)

FIRE PENSION FUND Gross Levy 6,185,281 7,215,168 1,029,887 16.7%Loss Factor* 123,706 144,303 20,597 16.7%Net Levy - Fire Pension 6,061,575$ 7,070,865$ 1,009,290$ 16.7%

POLICE PENSION FUND Gross Levy 8,551,232 9,240,755 689,523 8.1%Loss Factor* 171,025 184,815 13,790 8.1%Net Levy - Police Pension 8,380,207$ 9,055,940$ 675,733$ 8.1%

DEBT SERVICE FUND Gross Levy 11,275,348 11,275,348 - 0.0%Loss Factor* 225,507 225,507 - 0.0%Net Levy - Debt Service 11,049,841$ 11,049,841$ -$ 0.0%

TOTAL CITY LEVYGross Levy 39,007,443 39,823,770 816,327 2.09%Loss Factor* 780,149 796,475 16,326 2.09%

TOTAL CITY NET LEVY $ 38,227,294 $ 39,027,294 $ 800,000 2.09%




FY 2016 PROPOSED BUDGET2015 PROPERTY TAX LEVY IMPACT SUMMARY


FY 2016 PROPOSED BUDGETALL FUNDS = $260,192,889


FY 2016 PROPOSED BUDGETCALENDAR


FY 2016 PROPOSED BUDGETQUESTIONS


EVANSTON

October 24, 2015

FY 2016 Proposed Budget Presentation

Martin Lyons Assistant City Manger / CFO


PRESENTATION OUTLINE

LAST MONDAY, OCT 191. FY 2016 Budget Overview2. New Funds for FY 20163. Property Tax Levy4. Upcoming Budget Discussion Schedule5. Questions

TODAY 6. Library Fund 7. Proposed FY 2016 Capital Improvement Plan


EVANSTON PUBLIC LIBRARY2016 BUDGET • The 2016 budget includes the following:• A 4.7% increase in the collection budget

with an investment in streaming media.• Circulating Wi-Fi Hotspots to provide

internet access throughout Evanston.• Additional staffing to meet essential

security, public service and fundraising needs.

• Funding of a contractual Technology Trainer .


EVANSTON PUBLIC LIBRARY2016 BUDGET• Funding of the 2016 Storytelling Festival and Big

Read community-wide reading program. • A mobile Community Outreach vehicle to deliver

services throughout Evanston.• Funding for the next phase of the Main Library

Interior Renovation Project and minor renovations at the Chicago Avenue/Main Street Branch.


EVANSTON PUBLIC LIBRARY2016 BUDGET• Capital Project work as detailed by the Buildings

Assessment completed by Wiss Janney Elstner in 2013 is included in both the Operating Budget and Capital Budget.


EVANSTON PUBLIC LIBRARY2016 BUDGET

10% of Market Factor is 2.6039 EPL tax rate is 0.264

Market Value of Home

Assessed Value of Home

Equalized Value of Home

2015 Library Tax2016 Projected

TaxDifference

100,000$ 10,000$ 26,039$ 69$ 72$ 2.82$

200,000$ 20,000$ 52,078$ 137$ 143$ 5.64$

400,000$ 40,000$ 104,156$ 275$ 286$ 11.27$

600,000$ 60,000$ 156,234$ 412$ 429$ 16.91$

800,000$ 80,000$ 208,312$ 550$ 572$ 22.55$

1,000,000$ 100,000$ 260,390$ 687$ 716$ 28.18$


FY 2016 PROPOSED BUDGETCAPITAL IMPROVEMENT PLAN

Total Proposed FY 2016 CIP budget is $56,143,015 across all funds


FY 2016 PROPOSED BUDGETCAPITAL IMPROVEMENT PLAN


FY 2016 PROPOSED BUDGETCIP – FUNDING SOURCES


FY 2016 PROPOSED CIP


FY 2016 PROPOSED CIPALL PROJECTS OVER $1M

Project Name Project Amount Percent Total of CIPTreated water storage replacement--construction 14,000,000$ 24.94%Green Bay Noyes Asbury 5,301,000$ 9.44%Sheridan Road/Chicago -- Water main design and construction 3,770,000$ 6.71%Water Treatment Plant Reliability Improvements 2,500,000$ 4.45%Fountain Square and Sherman Avenue 2,000,000$ 3.56%Emerson Ridge Green Bay Asbury Project 1,920,000$ 3.42%Treated water storage replacement--design 1,390,000$ 2.48%Parking Garage - Maple 1,075,000$ 1.91%Howard Street - Access Drive (Target Access) 1,000,000$ 1.78%Robert Crown Center - Design 1,000,000$ 1.78%


FY 2016 PROPOSED CIP - PROJECTS










FY 2016 PROPOSED BUDGETCALENDAR


FY 2016 PROPOSED BUDGETQUESTIONS

Documents

Administrative Services EVANSTON October 19, 2015 FY 2016 Proposed Budget Presentation Martin Lyons Assistant City Manger / CFO 1