CITY OF ROCHELLE2020 BUDGET WORKSHOP

November 18, 2019

1

The City of Rochelle’s Strategic Plan is guided by three fundamental elements:

2

Our Mission

Our Vision

Our Core Values

3

OUR VISION

A vibrant community where all can thrive.

4

OUR MISSION

To provide a safe, connected and innovative community with professional, personalized

and impartial services.

Our Values

5

Economic and Business Developmentmeans we create a simplified range of opportunities for all types of business recruitment and retention. We value strong collaborations with elected officials and regional economic development organizations to promote and market the region for industrial and commercial growth.

Financial Management and Stabilitymeans we believe integrity, fiscal responsibility, and the prudent stewardship of public funds is essential for citizen confidence in government. We are committed to attainable performance measures based on a secure strategic plan.

Community Inclusivity and Engagementmeans we value the cultural and social diversity that is reflected in our community. We welcome the changes and new perspectives that this diversity brings.

Infrastructure Effectiveness and Improvementmeans we provide a maintained and reliable infrastructure for all members of the community while continuing to find innovative ways to improve the delivery of services.

Core Service Deliverymeans we encourage employees to exercise independent judgment in meeting customer needs through professional behavior. We support continuing education and training for all staff members.

OUR VALUES EXPLAINED

6

Economic and Business DevelopmentCapable | Business-friendly | Growing | Intentional

Financial Management and StabilityTransparent | Stable | Accountable | Stewards

Community Inclusivity and EngagementIndividuals | Respectful | Compassionate | Ethical

Infrastructure Effectiveness and ImprovementAffordable | Local | Sustainable | Strategic Planners

Core Service DeliveryProactive | Servants | Best Practices | Dedicated

It sets the City's culture and is based upon the 5 Strategic Goal Priorities.

Our Mission Statement is based on the principles of high quality and continuous improvement.

7

INDUSTRY BEST PRACTICE

Economic and Business Development

Financial Management and Stability Community Inclusivity

and Engagement

Infrastructure Effectiveness and

ImprovementCore Service Delivery

8

GENERAL FUND The General Fund is the operating fund for the following Departments:

Police | Fire | City ClerkCommunity Development | Streets & Cemetery

Engineering | Economic Development | Administration

Taxes and transfers are the primary sources of revenue.

9

10

GENERAL FUND REVENUES & EXPENSES

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

$10,000,000

$11,000,000

$12,000,000

Revenues

Expenditures

11

2020 GENERAL FUND REVENUES –$11,210,836 (PROPOSED)

$6,526,127

$262,000

$0

$1,514,102$100,000

$60,000

$2,748,607

Taxes

Licenses and Permits

Grants

Charges for Services

Fines and Forfeitures

Investment Income

Transfers

12

2020 GENERAL FUND EXPENDITURES

1592923

6498809

2891988

152369 22000

General Government

Public Safety

Public Works

Public Service Enterprises

Conservation & Development

13

SALES TAX - $2,400,000

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

CY16(Partial)

CY17 CY18 CY19Projection

CY 20Budget

14

NON-HOME RULE SALES TAX –$1,118,000

$1

$200,001

$400,001

$600,001

$800,001

$1,000,001

$1,200,001

CY16(Partial)

CY17 CY18 CY19Projection

CY20Budget

15

HOTEL-MOTEL TAX - $260,000

$1

$50,001

$100,001

$150,001

$200,001

$250,001

$300,001

CY16(Partial)

CY17 CY18 CY19Projection

CY20Budget

16

LGDF HISTORY (INCOME TAX) –$1,017,716

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

CY16(Partial)

CY17 CY18 CY19Projection

CY 20Budget

17

TRANSFERS-IN TO CORPORATE –$2,748,607

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

CY16(Partial)

CY17 CY18 CY19Projection

CY20Budget

18

MFT TAX RECEIPTS - $400,800

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

CY16(Partial)

CY17 CY18 CY19Projection

CY20Budget

19

LIGHTHOUSE POINTE TIF - $609,591

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

$550,000

$600,000

$650,000

CY16(Partial)

CY17 CY18 CY19Projection

CY20Budget

20

DOWNTOWN TIF - $86,896

$1

$10,001

$20,001

$30,001

$40,001

$50,001

$60,001

$70,001

$80,001

$90,001

CY16(Partial)

CY17 CY18 CY19Projection

CY20Budget

21

NORTHERN GATEWAY TIF – $3,671

$1

$501

$1,001

$1,501

$2,001

$2,501

$3,001

$3,501

$4,001

CY16(Partial)

CY17 CY18 CY19Projection

CY20Budget

22

UTILITY TAX - $539,000

$1

$100,001

$200,001

$300,001

$400,001

$500,001

$600,001

CY16(Partial)

CY17 CY18 CY19Projection

CY20Budget

23

UTILITY REVENUES FROM OPERATIONS

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

$45,000,000

$50,000,000

2017 2018 2019 Projection 2020 Budget

Water Water Reclamation Electric Technology/Communications

24

SOLID WASTE TRANSFER TO GENERAL FUND

$1

$100,001

$200,001

$300,001

$400,001

$500,001

$600,001

CY16(Partial)

CY17 CY18 CY19Projection

CY20Budget

25

EXPENSES BY DEPARTMENTCity Manager

0%Mayor & Council

0%City Attorney

1%City Clerk

1%

Police Department

33%

Fire Department 25%

Community Development

5%

Engineering3%

Street19%

Cemetery1%

Economic Development

0% 12%

26

GENERAL FUND COMPARISION2019 Budget 2020 Budget % Change

General Fund

Revenues $10,992,833 $11,210,836 2%

Expenditures $10,992,296 $11,158,089 2%

Mayor & Council

Expenditures $ 40,150 $ 39,800 (1%)

City Manager

Expenditures $ 29,900 $ 39,150 31%

27

GENERAL FUND COMPARISION2019 Budget 2020 Budget % Change

City Clerk

Revenues $ 106,386 $ 93,916 (12%)

Police Department

Expenditures $3,445,813 $3,662,378 6%

Fire Department

Expenditures $2,803,386 $2,836,431 1%

28

GENERAL FUND COMPARISION2019 Budget 2020 Budget % Change

Community Development

Revenues $ 539,159 $ 503,798 (7%)

Engineering

Expenditures $ 369,041 $ 291,152 (21%)

Street Department

Expenditures $1,742,013 $2,097,038 20%

29

GENERAL FUND COMPARISON2019 Budget 2020 Budget % Change

Cemetery

Expenditures $ 148,269 $152,369 3%

Municipal Building

Expenditures $1,622,739 $1,310,057 (19%)

30

EXTERNAL DEBT OUTSTANDINGOutstanding Debt As of 1/1/20 Principal Payments As of 12/31/20

Electric $13,265,000 $ 650,000 $12,615,000

Technology Center $ 2,765,000 $ 275,000 $ 2,490,000

Water Reclamation $ 265,648 $ 32,626 $ 233,022

Airport $ 480,000 $ 40,000 $ 440,000

Lighthouse Point TIF $ 2,625,000 $ 145,000 $ 2,480,000

31

EXTERNAL DEBT OUTSTANDINGOutstanding Debt As of 1/1/20 Principal Payments As of 12/31/20

General Fund –Quiet Zone

$ 1,320,000 $ 165,000 $ 1,155,000

General Fund –Capital Improvement

$ 4,500,000 $ 485,000 $ 4,015,000

General Fund –Fire Department

$ 350,000 $ 24,115 $ 325,885

General Fund –Street Department

$ 248,973 $ 86,802 $ 162,171

Water $ 5,354,765 $ 235,666 $ 5,119,099

TOTAL $31,174,386 $ 2,139,209 $29,035,177

32

CITY FULL-TIME EMPLOYEES

General Fund 60 Full-Time Employees

Internal Service 11 Full-Time Employees

Enterprise Funds 40 Full-Time Employees

Total 111 Full-Time Employees

33

LABOR EXPENSES

Full-Time Employees - Non-union labor costs have been budgeted for based on compensation study. Average increase 2.75%.

Legal fees remain flat. Some legal fees reimbursed by developers.

34

STAFFING CHANGES

Three vacant positions will be filled in the General Fund.

Electric Superintendent retiring. Adam Lanning will serve as Utility Superintendent.

35

COMMUNITY RELATIONS - HOTEL/MOTEL FUNDRevenue Sources:

· Hotel/Motel Taxes-5% of local hotel stays· Railfan Park Gift Shop Merchandise Proceeds

Grant Applications:· $25,000 Tourism Attraction Grant – Updating siding, bathrooms, and doors at Railroad Gift Shop· $10,000 Marketing Partnership Grant – Billboard, Rack Card Distribution, Website, Visitors Guide

Special Projects:· Peace Corps Fellow, Bollards, Entrance Signs, Information Kiosks, Overpass Mural · The Spark Community Initiative

Community Events:· Irish Hooley, Cinco de Mayo, Downtown Block Party, Farm-to-Table Dinner, Hay Day, Outdoor Markets,

Movie in the Park, Fiesta Hispana, Supper & Song, Family Swim Night, Lincoln Highway Heritage Festival

36

COMMUNITY RELATIONS

• InVironments Magazine Advertising• Outdoor Market Booth• All-Resident Mailer• Social Media Advertising• Newspaper & Radio Advertising

37

GENERAL FUND COMMUNITY CONTRIBUTIONS

• Annual Fireworks $12,000• Municipal Band Performances $14,000• Senior Center Pledge $12,500 (RMU $12,500)• Rochelle Rescue Mission $2,500 (RMU $2,500)

38

COMMUNITY DEVELOPMENT

• Update of City Codes and Ordinances - $50,000• Expansion of City-Wide Façade Program - $30,000• Wayfinding/Parking Lot Signs• Blade Sign Program• Tree Replacement

DOWNTOWN REVITALIZATION

39

• Hanging Baskets for Entryways ($15,000)

• Whimsical Benches ($10,000) • Games Around the Gazebo

40

ENTERPRISE LEASE PROGRAM2020 Vehicle Department Annual Lease Payment

Chevy 1500 WT 4x4 Crew Cab Street $ 6,247.20

Chevy 1500 WT 4x4 Double Cab IT $ 5,654.76

Chevy 1500 WT 4x4 Double Cab IT $ 5,654.76

Chevy 1500 WT 4x4 Double Cab Water $ 5,654.76

Chevy 2500 WT 4x4 Double Cab Diesel $ 6,390.24

Chevy 2500 WT 4x4 Regular Cab Water $ 8,219.64

Chevy 2500 Chassis WT 4x4 Crew Cab Street $ 7,703.64

41

ENTERPRISE LEASE PROGRAM2020 Vehicle Department Annual Lease Payment

F150 XL 4x4 Super Cab Electric $ 5,674.92

F350 XL 4x4 Regular Cab Street $ 8,090.64

Ford Interceptor Utility Patrols $11,692.92

Ford Interceptor Utility Patrols $11,692.92

Ford Interceptor Utility Patrols $11,692.92

Ranger XL 4x4 Super Cab Community Development $ 5,573.76

42

VEHICLE PURCHASESDepartment Capital Outlay Budget

Street Department Utility Tractor Replacement $ 27,900

Street Department Compact Track Loader Replacement (2)

$ 80,450

Fire Department Ambulance $200,000

43

EQUIPMENT PURCHASESDepartment Capital Outlay Budget

Municipal Building Handicap entrance doorsLED Sign

$ 50,000$ 30,000

Police Software/Data Conversion $ 52,452

Fire Exterior Doors, Parking Lot Repaving, West Side Concrete $ 63,000

Street Department Asphalt Repair Machine $ 75,500

44

CAPITAL IMPROVEMENT FUND PROJECTSDescription Amount

2015 Bond Payment QZ (RR Fund) $ 210,300

2018 Bond Payment CIP $4.5M $ 642,425

Building $ 55,000

Equipment – Street Department $ 65,000

Miscellaneous Right-of-Way Acquisitions $ 92,000

MFT EDP South Main Street Improvements Sec #12-00112-00FP (PE and CE) Phase 1

$ 3,605,000

City-Wide Storm Sewer and Drainage Structure Improvements PH1 (SD) $ 675,000

45

CAPITAL IMPROVEMENT FUND PROJECTSDescription Amount

4th Ave 6thSt to Kyte River Storm Sewer and Drainage Improvements (PE1 MYP)

$ 1,350,000

Steward Road Widening & Resurfacing East of Loves Dev Site (City Participation)

$ 55,000

7th Ave Bridge over Kyte River and Related Approach Street Improvements (PE and CE PH 1)

$ 1,220,000

2nd Ave S 12th to 14th St Urbanization and Reconstruction $ 470,000

Dement Rd Overpass Approach/Pavement Rehabilitation & Drainage Culvert Improvements

$ 130,000

Washington St / 1st Ave Parking Lot Reconstruction $ 148,000

MFT Misc St Treatments Sec #20-00000-00GM $ 225,000

46

CAPITAL IMPROVEMENT FUND PROJECTSDescription Amount

1st Ave Bridge Over Kyte (Scour Protection) $ 17,000

2nd Ave Washington to Rte 251 Overpass Reconstruction $ 348,000

Traffic Signalization & Other Intersection Improvements at IL Rte251/Steward Road

$ 125,000

5th Ave, Rte 251 to Lincoln/6th St, 5th Ave to 4th Ave Resurfacing Sidewalk Ramps

$ 304,000

Sidewalk/Pedestrian Paths – Annual Program TBD $ 336,000

General Maintenance – Other, Pavements, Sidewalks, Storm Sewer $ 120,000

Other Street/Alley Improvements – HMA Surface, Pavement Striping, Curb & Gutter Replacement

$ 180,000

47

TOTAL CAPITAL OUTLAY

$10,372,725

48

REVENUE ENHANCEMENT RECOMMENDATIONS

• Possible referendum for .25% increase in the non-home rule sales tax to fund Police/Fire pensions and property tax relief.

• Staff will recommend a three-year water rate increase in December/January to fund infrastructure improvements.

• Continue to promote growth that leads to additional EAV, sales tax collections and utility revenues.

49

ENTERPRISE FUNDS

50

REVENUES & INVESTMENTS –WATER & WATER RECLAMATION

• The combined Water & Water Reclamation Fund revenues are up slightly over previous calendar year.

• Staff is recommending a three-year water rate increase to fund increased infrastructure investments.

• All projects will be funded through ILEPA loans and cash, including completion of Wells 12 and 4 and updates to Well 8.

51

WATER REVENUES - $5,975,904

Residential39%

Commerical30%

Industrial31%

52

WATER EXPENSES - $7,233,800Personnel

11%

Contractual Services

10%

Supplies6%

Capital Outlay67%

Debt Service4%

Transfers2%

53

WATER RECLAMATION REVENUES -$6,915,262

Residential33%

Commerical33%

Industiral34%

54

WATER RECLAMATION EXPENSES -$7,095,321

Personnel12%

Contractual Services

14%

Supplies5%

Capital Outlay65%

Debt Service1%

Transfers3%

55

REVENUES-ELECTRIC• The Electric Fund covers all costs associated with the purchase,

transmission and distribution of electricity to all properties within the utility’s service territory.

• FY 2020 Revenue Estimate $36,067,313• Decrease from FY 19 due to lower power cost adjustment (8

months at $0.00).• Transmission sale is to be completed 1st quarter 2020.• 58% of budget is dedicated to power purchase costs.• Days cash on hand has increased from 16 days (2016) to 115

days (current).

56

ELECTRIC REVENUES - $36,067,313Residential

18%

Commerical15%

Industrial67%

57

ELECTRIC EXPENSES - $36,654,941Generation

5%

Purchased Power59%

Peaker Plant0%

Gen Sets1%

Gas Turbine0%

Distribution17%

Customer Accounting

2%

Utility Engineering

0%

Utility Administration

16%

58

REVENUES-TECHNOLOGY CENTER & ADVANCED COMMUNICATIONS

• The funds were established to document the revenues associated with the development of the Technology Center and the Advanced Communications System.

• Revenues include leases for rack and colocation space, fiber, dark fiber and internet services.

• Fund is estimated to generate revenue in excess of expenses.

59

TECHNOLOGY CENTER REVENUES -$1,517,100

Telecommunication Leases

5%

Commercial Fiber Leases

35%

Commerical Colocation Leases

51%

Internal Colocation Leases

9%

60

TECHNOLOGY CENTER EXPENSES –$1,142,770

Contractual Services

56%

Supplies1%

Debt Service40%

Capital Outlay3%

61

AIRPORT REVENUES - $2,570,065

Federal Grant82%

Hangar Rent3%

FBO Receipts

Aviation Fuel Sales8%

Property Tax2% Interfund

Transfer4%

62

AIRPORT EXPENSES - $2,569,751Salaries & Benefits

6%

Contractual Services & Supplies

3% Aviation Fuel7%

Debt Service2%

Capital Outlay82%

63

RAILROAD REVENUES - $1,358,062

Switch Absorbtion Fees51%

In/Out Storage Switch Fees

4%

Storage Fees6%

Capital Fund Revenue

37%

Other2%

64

RAILROAD EXPENSES - $1,320,949Contractual

Services21%

Interfund Transfers

38%

Capital Outlay41%

65

GOLF COURSE REVENUES - $356,750

Golf Rounds28%

Season Pass10%

Cart Rentals11%

Merchandise Sales6%

Other Revenue22%

Advertising2%

Interfund Transfer

21%

66

GOLF COURSE EXPENSES - $356,324Salaries - Pro

Shop11%

Contractual Services - Pro

Shop13%

Supplies - Pro Shop7%

Salaries - Golf Course

45%

Contractual Services - Golf

Course8%

Supplies - Golf Course

11%

Capital Outlay5%

67

68