Community Budget Workshop
description
Transcript of Community Budget Workshop
Community Budget Workshop
City Council Chambers7:00 p.m. - September 14, 2010
www.cityofevanston.org/budget
Today’s Outcomes
Overview
Facts About Our City
The City’s Budget Process
Municipal Revenues and Expenditures and Other Funds
Review of FY10-11 Budget and Citizen Recommendations
City’s Current Budget Challenges
Questions/Thoughts/Discussion
Facts About Our City
Organizational Structure
The City of Evanston, Illinois is a full service municipal government located in Cook County, IL
It is a home rule unit, as defined in the 1970 Illinois Constitution, which means that we have certain powers to tax and enact local ordinances
Council / Manager form of government adopted in 1957
Organized to provide for the health, safety and welfare of Evanston residents.
Population77,857 (2009 Census Estimate)
76,406 (2006 Estimate from City of Evanston Community Development Department)
Size
8.0 Square Miles 30,817 Housing Units
147 Miles of Street 76 Miles of Alleys
208 miles of Sewers 5,641 Street Lights
Evanston Municipal Facts
Facts About Our City
Police & Fire
Protection
–164 Sworn Police Officers
• 11 Parking Enforcement Officers
• 49 Crossing Guards
–107 Sworn Firefighters
• 5 Fire Stations
• 1,385 Fire Hydrants
Municipal
Parking
– 2,300 Parking Meters
– 35 Parking Lots
– 3 Parking Garages with a capacity of 3,283 vehicles
Evanston Municipal Facts
Facts About Our City
Library Services
1 Main & 2 Branch Libraries
495,800 Books and Materials
65,638 Registered Borrowers
Park & Recreation Facilities
265 Acres of Park Area 75 Parks and Playgrounds5 Beaches (Public Swimming)6 Recreation Centers:
* Chandler-Newberger Community * Ecology *
* Noyes Cultural Arts * Levy Senior *
* Fleetwood-Jourdain Community *
* Robert Crown *
Evanston Municipal Facts
Facts About Our City
Municipal
Water Utility
– Population Served – 359,357• Evanston (77,857)• Skokie (63,400)• Northwest Water Commission (221,597)
– Filtration Capacity - 108 million gallons / day– Pumping Capacity - 147 million gallons / day– Average Pumpage – 40.3 million gallons / day– 157.5 Miles of Water Mains
Evanston Municipal Facts
Facts About Our City
Facts About Our City
City of Evanston
School District 65
School District 202 (ETHS)
Community College 535 (Oakton)
There are many units of government that service and tax Evanston Residents:
Cook County Evanston Township
Cook County Forest Preserve
Water Reclamation District
Mosquito Abatement District
Budget Overview
A Budget Is…
A legal document that serves as a government’s financial operating plan;
A financial and policy document for how the City provides services to residents;
A tool for communicating how tax money is spent;
Includes operating and capital costs and is categorized by fund;
Allows citizens an opportunity to be heard by their elected officials.
Budget Overview
Fund Based Budgets:
• General Fund: Supports general City operations (i.e. Police, Fire, Library, General Administration, Community and Economic Development, Health, Parks, Recreation and Community Services)
• Enterprise Fund: Used for services which charge a fee-handled like a business (i.e. Water, Sewer, Solid Waste and Parking Funds)
• Capital Improvement Fund: Separates major infrastructure and facilities expenses from operating expenses
• Special Revenue Fund: Created to monitor a specific activity (i.e. Economic Development Fund)
Budget Overview
Fund Based Budgets (Cont’d):
• Debt Service Fund: Monitors all G.O. Debt supported by property taxes
• Internal Service Funds: Created to centralize city operations (i.e. Insurance and Fleet Funds)
• Trust Funds: (i.e. Police and Fire Pension Funds)
Budget Overview
Notes The current budget policy requires a fund reserve of 8.3% for the General Fund and 10% for Enterprise Funds.
One-time money should only be spent on one-time expenditures.
Budget Process
The Budget Process
Budget Office receives requests from
Departments (July)
Requests revised to match revenue
projections (Aug.-Sept.)
Budget presented to Council in October
Several budget discussions held by Council (Oct.-Nov.)
Public Hearing is held in November
Council budget discussions continue
(Citizen Comment Welcome)
Budget Adopted (anticipated November 22)
Budget
How Big is Evanston’s Budget?
The City’s total operating budget is $224,438,941
The City’s General Fund Budget is $86,578,760
Budget
City Other Funds Include:
• Parking
• Water
• Sewer
• Motor Fuel Tax
• Fleet Service
• Emergency Telephone
• CIP
• Garage Funds (Sherman, Maple, Church)
• Downtown II TIF
• Howard / Ridge TIF
• Howard / Hartrey TIF
• CDBG
• Special Assessment
Municipal Revenue
Where do we get our Money?(Sources)
Municipal Revenue
Revenues by Type:
Property Taxes
Other Taxes
Licenses Permits and Fees
Fines and Forfeitures
Charges for Services
Revenues from State and Federal Government
Transfers from Other Funds
Municipal Revenue
FY 2010-11 Budget
Transfers From Other Funds8.44%
Other Taxes43.12%
Other Revenue2.71%
Interest Revenue0.12% Library Revenue
0.15%
Property Tax19.05%
Service Charges10.86%
Intergovernmental Revenue
0.90%
Fines5.07%
Licenses , permits and Fees
9.58%
Municipal Revenue
FY 2010-11 Adopted
$2.35
$8.32
$7.34
$16.55
$0.10
0.13
$0.79
$4.40
$9.43
$37.46
$0.00 $10.00 $20.00 $30.00 $40.00Dollars - Millions
Other Taxes
Property Tax
Transfers from Other Funds
Licenses, Permits, & Fees
Charges for Services
Fines
Federal & State Revenue
Other Revenue
Library Revenue
Interest Income
Property Tax Revenue
Property Tax Bill Based on 2008 Tax Rates
District 202*26.55%
District 65*39.35%
Oakton Community College*
2.16%
City of Evanston19.97%
Cook County6.40%
Evanston Township0.77%
Other0.91%
Water Reclamation3.89%
Property Tax Revenue
City % Share of the Property Tax History
19.7419.7019.6019.96
19.56
18.95
18.55
20.00
20.8021.70
22.5023.40
25.4026.00
27.90
27.90
28.40
27.80
28.50
19.30
18.62
17.84
18.72
18.40
17.70
18.29
18.52
16
18
20
22
24
26
28
30
Year
Pe
rce
nt
Property Tax Revenue
How We Compare with Other Communities - 2008 Property Tax Levy
0.974%
1.039%
1.182%
1.238%
1.295%
1.975%
1.451%
1.425%
1.391%
0.000% 0.500% 1.000% 1.500% 2.000% 2.500%
Glenview
Park Ridge
Wilmette
Skokie
Evanston
DesPlaines
Hoffman Estates
Arlington Heights
Oak Park
Tax Levy
Tax Levy=Municipality+ Park District + Library Fund
Other Tax Revenue
Other Taxes (Some Examples) Sales Tax (Basic) -1% on all purchases ($8,914,000)
Sales Tax (Home Rule) - 1% on selected purchases ($5,520,000)
State Income Tax - ($5,717,000)
Real Estate Transfer Tax - ($1,600,000)
Athletic Tax - 11% on athletic events ($650,000)
Liquor Tax - 6% on purchases ($2,050,000)
Cigarette Tax - $.60 per pack ($485,000)
Telecommunications Tax - ($3,230,000)
Parking Tax - ($1,785,000)
Utility Taxes - ($5,254,000)
Other Tax Revenue
FY 10-11 Adopted General Fund Revenue
$3.2
$0.5
$2.1
$1.6
$5.7
$5.3
$1.8
$0.7
$5.5
$8.9
$0.0 $2.0 $4.0 $6.0 $8.0 $10.0Dollars - Millions
Sales Tax - Basic
Sales Tax - Home Rule
State Income Tax
Real Estate Transfer Tax
Athletic Tax
Liquor Tax
Cigarette Tax
Telecommunications Tax
Parking
Utility Taxes
4.0 4.0
2.8
3.7
4.2 4.5
4.0
2.1
1.6 1.6 1.6
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
12001-02 2002-03 2003-042004-05 2005-06 2006-072007-08 2008-09 2009-102010-11 Budget 2010-11 Estimate
General Fund Revenue
Real Estate Transfer Tax Revenue:
General Fund Revenue
License, Permits, & Fees (Some Examples)
Vehicle Licenses - $75 per vehicle ($2,700,000)
Business Licenses - ($171,000)
Building Permits - ($2,200,000)
Liquor Licenses - ($370,500)
General Fund Revenue
Building Permit Revenue
3.10
1.9 1.9 1.9
3.1 3.1
4.5
2.9
1.5
2.2
2.7
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
2001-02 2002-03 2003-042004-05 2005-06 2006-072007-08 2008-09 2009-102010-11 Budget 2010-11 Est.
An economically sensitive revenue that depends heavily on development
General Fund Revenue
Fines and Forfeitures (Some Examples):
Parking Tickets - $3.5 million annually
Boot Release Fee - $68,000 annually
False Alarm Fines - $165,000 annually
Library Fines and Fees - $195,000 annually
Municipal Revenue
Parking Ticket Fines
3.243.0
3.43.1
2.8
3.2
3.6 3.63.4 3.5 3.4
0
0.5
1
1.5
2
2.5
3
3.5
4
2001-02 2002-03 2003-04
2004-05 2005-06 2006-072007-08 2008-09 2009-10
2010-11 Budget 2010-11 Est.
General Fund Revenue
Charges for Services (Some Examples):
Ambulance Fees - $985,000
Recreation Programs - $4,940,000
Refuse Charge - $2,442,400
Alarm Registration Fee – $150,000
General Fund Revenue
Charges for Services
6.0 6.16.9 7.2
7.78.4 8.7
9.4 9.4
0123456789
10
2003-04 2004-05 2005-06
2006-07 2007-08 2008-09
2009-10 2010-11 Budget 2010-11 Est.
• Ambulance Fees
• Recreation
Programs
• Refuse Charges
• Alarm
Registration Fees
General Fund Revenue
State and Federal Grants Used for the General Fund Operating Budget
Community Development Block Grant (CDBG) Reimbursement for some personnel costs - $856,000
Health Department (various grants) - $613,700
Other Grants - $171,800
Other Fund Revenue
Transfers from Other Funds / Cover the Cost of Administration
• Parking Fund
• Emergency Telephone System
• Motor Fuel Tax Fund
• CDBG Fund
• HOME Fund
• Maple Garage Fund
• TIF Funds
• Water Fund
• Fleet Service Fund
• Economic Development Fund
• Sewer Fund
• Capital Improvement Fund
• Housing Fund
Municipal Expenses
Where do we spend our money? (Uses)
Municipal Expenses
General Fund
• Personnel Costs - approximately 75% of budget
• Services & Supplies - approximately 21% of budget
• Capital Outlay - 1.4% of budget
• Insurance & Other Transfers - 2% of budget
• Community Sponsored Organizations – 1% of budget
Expenses by Type
75%
21%
1% 1%2%
Personnel Costs
Services & Supplies
Capital Outlay
Insurance & Other Transfers
Community SponsoredOrganizations
Expenses by Department
Police Department
Parks/Rec/Comm Services
Public Works
Fire Department
Administrative Services
Library
Community & Economic Dev.
Health Department
City Manager's Office
Legal
City Council
$- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000
1
Other Funds
Other Funds – Internal Service
Insurance Fund
• City is self insured with stop loss coverage beginning at $2,000,000.
• City is beginning to build up adequate insurance reserves to pay out future
liability and workers’ compensation claims and to stabilize the health insurance
fund – IPBC and allocations to departmental budgets.
• The following Funds contribute funding for Insurance: General, Parking, Water,
Sewer, E911, CDBG, Economic Development.
• Insurance Fund’s primary purpose is to set aside funding for all types of claims
against City.
Other Funds – Internal Service
Fleet Services Fund
• Fund is used to account for purchases of new vehicles and equipment as
well as major maintenance on vehicles & equipment.
• Funded by other City Funds that require vehicles/equipment such as
General, Parking, Water, Sewer.
• City will establish reserves in the upcoming year by returning unspent
funds to the Fleet Services Fund.
• City has been keeping many vehicles and equipment longer than
recommended useful life, causing increased maintenance needs.
• A comprehensive Fleet Study will occur in the upcoming year.
Other Funds - Fiduciary
Police Pension & Firefighters’ Pension
• Illinois law mandates Police and Firefighters’ pension and disability benefits.
• Under current law, both Police and Firefighters’ pension funds must be fully
funded no later than 2033. Currently, Police and Firefighters’ pension are funded
at 42.9% and 41.2% per most recent actuarial valuation reports.
• Both the City and active sworn officers and firefighters contribute to the
pensions. Officer/firefighter contribution rates are per State statute and are
9.91% for Police and 9.455% for Fire.
Other Funds - Enterprise
Parking Fund
• This Fund includes revenues and expenses for all City pay parking lots,
as well as the Church, Maple, and Sherman Avenue Garages.
• Setting parking rates is truly a balancing act. A great deal of analysis
and professional judgment is needed to determine best parking rates to
continue to attract potential customers to downtown while still charging
enough to make the Fund self-sufficient for operating and debt
expenses.
• Without the subsidy provided from City TIF Funds, this Fund would not
be self sufficient on an annual operating basis.
Other Funds - Enterprise
Water & Sewer Funds
• Water funds account for all revenue and expenses related to pumping, filtration, distribution, meters, and other water distribution expenses, including capital equipment.
• Sewer funds account for all expenses related to the removal but not the “cleaning” of used water. Evanston residents are separately charged by the Water Reclamation District.
• The City sells its water to Evanston residents as well as Skokie and the Northwest Water Commission.
• Only Evanston residents pay the Sewer Fee.
• Sewer capital projects are often funded by low or zero interest IEPA loans.
• Water/Sewer rate discussion will occur this fall.
Other Funds - Designated
Motor Fuel Tax FundOperating budget varies each year based on State of IL estimated per capita distributions.
Emergency Telephone Funded through wireless and landline E911 surcharges paid by users.
Economic Development While legally not mandated to be a separate Fund – it is done so as it is funded primarily by City hotel and amusement taxes.
Review of FY10-11 BudgetCitizen Recommendations
Top Recommendations:
• Personnel cost reductions – 27 votes• Solid Waste cost reductions – 18 votes• Close Township Office and move to Civic Center – 15 votes• Sell water to other communities – 11 votes• Close Branch Libraries – 10 votes• Review Parking operation and fees – 8 votes• Close one Fire Station – 7 votes• Fine Arts development on lakefront – 5 votes• Increase employee contributions to benefits – 4 votes• 10% cut in Management across the board – 4 votes• Refinance current debt – 4 votes• Encourage business/commercial development – 4 votes
How did we do?
Positions - All Funds Last Five Fiscal Years
884.24
866.97
841.00
796.06
856.03
770.00
790.00
810.00
830.00
850.00
870.00
890.00
FY 2006-07 FY 2007-08 FY 2008-09 FY 2009-10 FY 2010-11
Fiscal Year
Pos
ition
s
Review of FY10-11 BudgetCitizen Recommendations
•Solid Waste cost reductions – 18 votesRefuse contract out to bid – award expected on 9/27/10 with
anticipated savings of $560,000 – in-source recycling pickup – outsource solid waste pickup – savings projected @ - Solid Waste is now an enterprise fund, where revenues will be set to cover costs.
• Close Township Office and move to Civic Center – 15 votesNo action taken to date.
• Sell water to other communities – 11 votesOpportunities are currently being pursued.
• Close Branch Libraries – 10 votesBranches were funded in the current budget for six months. Local citizens group raised funds for additional six months so branches will remain open. City Council and Library Board are working on a long term solution to Library funding.
Review of FY10-11 BudgetCitizen Recommendations
• Review Parking operation and fees – 8 votesParking Committee is reviewing operations, parking incentives
and fee generation – new software is being considered to enhance collections.
• Close one Fire Station – 7 votesRecommendation not being pursued at this time.
• Fine Arts development on lakefront – 5 votesLakefront Master Plan is being funded and implemented –A waterfront arts venue is not envisioned in the plan.
• Increase employee contributions to benefits – 4 votesThe majority of all employees are paying 10% more for health insurance benefits in the current year.
Review of FY10-11 BudgetCitizen Recommendations
• 10% cut in Management across the board – 4 votesMany middle management positions were cut during the budget process, such as GIS Manager and Revenue Manager. City Manager, Assistant City Manager and Department Directors were given a 5% pay cut.
• Refinance current debt – 4 votesDebt was refinanced in the upcoming year.
• Encourage business/commercial development – 4 votesThe City continues to work with Downtown Evanston to keep the downtown area vibrant. TIFs are being reviewed to ensure all strategies are being employed to enhance development and business opportunities in other areas of the City.
Current Year Budget Challenges
General Fund revenues are flat today and are not projected to increase in the upcoming year.
Developing a ten month transitional budget.
Establishing reoccurring revenue sources to provide ongoing funding for Capital needs and other funds, such as Insurance and Fleet.
To minimize service reductions for the remainder of the 2009-10 fiscal year and come in on budget.
Possible delay of property tax receipts.
Possible reduction of income tax proceeds.
Expense Reduction Options
Hiring Freeze: Effective immediately, involving all or targeted positions.
Implement Reorganizations: Continue to look at combining positions as a result of attrition to achieve additionalcost savings.
Spending Freeze: All non-essential spending will be curtailed for the remainder of the year.
Expenditure Control: Expenditures over $1,000 will require City Manager’s Office approval.
Training & Travel: All training and travel requests must be justified. Approval from the City Manager’s Office for out-of-state training is required.
Overtime Analysis;Work with departments with high overtime and callback costs to minimizeexpenditures and explore long-term solutions to reduce costs.
Next Steps
Staff currently evaluating service delivery for opportunities to reduce costs.
Public input requested on service priorities, ideas for revenue enhancements, and cost containment strategies.
Joint recommendations from staff and public for balancing the budget will be shared with Council in October and November, 2010.
09/20/10Special City Council Meeting
Goal Setting & Mid-Year Financial Review6 p.m. – City Council Chambers
09/29/2010Community Budget Workshop
7 p.m. - Levy Center
10/23/2010Special City Council Meeting
Budget Discussion9:00 a.m. - TBD
11/06/2010Special City Council Meeting
Budget Discussion9:00 a.m. - TBD
Future Budget Sessions
11/08/2010Public Hearing – FY2011 Budget/Truth in
Taxation7:00 p.m. – City Council Chambers
11/15/2010Optional Special City Council Meeting
Budget Discussion7:00 p.m. TBD
11/17/2010Optional Special City Council Meeting
Budget Discussion7:00 p.m. TBD
11/22/2010City Council Meeting
Budget Adoption7:00 p.m. – City Council Chambers
Future Budget Sessions
Questions
Thoughts
Suggestions
Thank you!