City of Rock Falls Fiscal Year 2018 Budget P a g e | 2 City of Rock - - PowerPoint PPT Presentation
City of Rock Falls Fiscal Year 2018 Budget P a g e | 2 City of Rock Falls Mayor William B. Wescott Council Members Ward 1 Ward 2 Ward 3 Ward 4 Daehle Reitzel Glen Kuhlemier James Schuneman Lee Folsom George Logan Brian Snow Rod
City of Rock Falls Fiscal Year 2018 Budget
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Mayor
William B. Wescott
Council Members
Ward 1 Ward 2 Ward 3 Ward 4
Daehle Reitzel Glen Kuhlemier James Schuneman Lee Folsom George Logan Brian Snow Rod Kleckler
Clerk City Treasurer City Administrator
Eric Arduini Kay Abner Robbin Blackert
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Rock Falls At A Glance
Rock Falls is celebrating our 150th birthday in 2017. Rock Falls prides itself on our hard-working, friendly people and businesses that are both capable and willing to serve and help you in any way. Founded on the south bank of the Rock River in eastern Whiteside County in 1867 by A.P. Smith, we are on your way no matter where your destination. Centrally located between the Iowa/Illinois Quad Cities to our southwest and Rockford on our northeast, Rock Falls is located at the intersection of Illinois Routes 30 and 40 and is adjacent to Interstate 88 with two interchanges. Downtown Chicago is only two hours away and the western suburbs are only an hour’s drive. The Rock River remains our community’s most valuable recreational asset and is a part of the 330-mile long Rock River Water Trail which is recognized by the National Water Trails System. Home to some of the world’s best cat fishing, which has been featured on television outdoor shows, the Rock River is also a quiet Mecca for recreational boating. The historical Hennepin Canal runs through the city’s east side with strolling and bike paths. The City offers peaceful, scenic park views with tennis courts, ball diamonds, soccer fields, picnic shelters, canoes and paddle boats and plenty of parking. Rock Falls is very proud of its workforce, the schools, healthcare facilities, recreation, clubs and organizations and most importantly, its people. By pulling together, we are making things happen in Rock Falls. I invite and encourage everyone to come help us celebrate our 150th . William B. Wescott, Mayor
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Contents
Rock Falls At A Glance ...................................................................................................................................................................................................... 3 FY 18 General Fund Revenue Summary ............................................................................................................................................................................ 5 General Fund Revenues & Assumptions: ....................................................................................................................................................................... 5 6 Year Revenue Chart ..................................................................................................................................................................................................... 5 General Fund Revenue Breakdown ................................................................................................................................................................................ 6 FY 18 General Fund Revenue Pie Chart......................................................................................................................................................................... 8 FY 18 General Fund Expenditures Summary ..................................................................................................................................................................... 9 General Fund Expenditures & Assumptions ................................................................................................................................................................... 9 General Fund Expenditures FY 18 & FY 17 Comparison .............................................................................................................................................. 9 FY 18 General Fund Expenditures Pie Chart ............................................................................................................................................................... 10 FY 18 Utility/Enterprise Funds Summary ........................................................................................................................................................................ 11 Enterprise Expenditure/Revenue FY 18 & FY 17 Comparison.................................................................................................................................... 12 Enterprise Historical Revenue Summary ...................................................................................................................................................................... 13 FY 18 Total Government Funds Summary ....................................................................................................................................................................... 14 Rock Falls named IMEA Municipality of the Year .......................................................................................................................................................... 19 Rock Falls Water Department First Groundwater System to Win Prestigious Source Water Protection Award ............................................................ 20
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$- $1,000,000.00 $2,000,000.00 $3,000,000.00 $4,000,000.00 $5,000,000.00 $6,000,000.00 $7,000,000.00 $8,000,000.00 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18
Revenue
FY 18 General Fund Revenue Summary
General Fund Revenues & Assumptions:
The General Fund assumption for the reoccurring revenue sources with slight growth in some revenue sources and stagnation in other sources. The FY 18 budget predicts an increase in general fund revenues by 2.42% over FY 17 revenues. Certain revenue assumptions are made based on historical data and formulas as supplied by the Illinois Municipal League for calculating Motor Fuel Tax, State Use Tax and State Income Tax (LGDF). Notable changes in revenue are reflected in the budget as presented with the most significant being the expectation of utilizing the funds from both the USEPA and ILEPA for environmental assessment of the limestone building along the riverfront. Another significant increase is Rural Fire Protection District increase of $100,000 over past years. Due to the burdensome increase in fire and police pension costs, the City has asked for an increased contribution from the Rural Fire Protection District. The escalated contribution to the fire and police pension funds caused the City to hold a Truth in Taxation Hearing in 2016. The final levied amount represented an increase in property taxes of 16.12% over the previous year. Contributions to the general fund revenues by the utilities held steady at 13% of the overall realized general revenue. Below is a chart representing the past six years of general fund revenues.
6 Year Revenue Chart
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General Fund Revenue Breakdown
SALES TAX REVENUE
State Sales Tax
$ 1,090,000.00
Non-Home Rule Sales Tax
$ 818,000.00
State Use Tax
$ 234,430.00
Non-Home Rule Sales Tax Transfers
$ -
Sales Tax - Subtotal
$ 2,142,430.00
PROPERTY TAX REVENUE
$ 181,957.00
$ 50,000.00
$ 54,587.00
$ 54,587.00
$
Prop Tax.-School Cross Gds
$ -
$ 477,809.00
$ 24,712.00
ESDA
$ 198,250.00
Trans/Work Comp & Gen Liab
$ 75,000.00
Rural Fire Protection Tax
$ 230,000.00
Property Tax Subtotal
$ 1,346,902.00
FRANCHISE/USAGE/TAXES
Comcast Franchise Fee
$ 125,000.00
Simplified Tele. Maint. Fee
$ 225,000.00
Natural Gas Utility Tax
$ 115,000.00
Utility Service Partners Royalty
$ 3,600.00
Wireless Tower Rental Fee
$ 10,000.00
Nicor Franchise Fee
$ 15,900.00
Motor Fuel Tax Allotment & transfers
$ 238,900.00
Street Maintenance-IDOT
$ 19,000.00
Franchise/Usage/Other Taxes
$ 752,400.00
INCOME TAX REVENUE
State Income Tax (LGDF)
$ 935,866.00
Income Tax - Subtotal
$ 935,866.00
GRANTS
Reimbursement-Grant Funds
$ 260,000.00
Police Grants
$ 2,500.00
Fire Grants
$ -
Grants subtotal
$ 262,500.00
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LICENSE/PERMITS/FEES
Liquor Licenses
$ 38,000.00
Tobacco/Liq. Violation Fines
$ 500.00
Electric/Drain Layers Lic.
$ -
Other Licenses
$ 7,000.00
Building Permits
$ 20,000.00
Inspection Fees
$ 12,000.00
Contractors Registration
$ 10,000.00
Electrical Business License
$ -
License/Permits/Fees Subtotal
$ 87,500.00
MISCELLANEOUS
Interest/Investments
$ 4,000.00
Sale of Junk
$
Miscellaneous / fund transfers
$ 61,000.00
Miscellaneous Subtotal
$ 65,000.00
Totals
$ 6,852,686.00
FIRE/POLICE REVENUE
Emergency Rescue
$ 8,500.00
Non Res. Emergency Response Fee
$ 500.00
Hazardous Chemical Release
$ -
Fire Chief Reimbursement
$ 84,837.00
Video Gaming
$ 160,000.00
Bail/Warrant Fee
$ 13,000.00
Fines
$ 62,000.00
Police Reports
$ 1,500.00
Code Hearing Income
$ 40,420.00
Charitable Games
$ 2,500.00
Sex Offender Registration
$ 2,000.00
Fire/Police subtotal
$ 375,257.00
UTILITY CONTRIBUTION
Capital Cost Recovery
$ 490,000.00
Rent - Utility Office
$ 48,786.00
Cont Electric - Electric Usage
$ 70,000.00
Cont Electric - Utility Tax
$ -
Cont Electric - Cap Cost
$ 4,800.00
Cont Sewer - Sewer Usage
$ 4,400.00
Cont Water - Water Usage
$ 3,500.00
Contribution from Electric
$ 5,000.00
Contribution from Water
$ 37,000.00
Contribution from Sewer
$ 37,000.00
Contribution from Garbage
$ 65,000.00
Contribution Electric City Administrator
$ 59,547.00
Contribution Water City Administrator
$ 14,887.00
Contribution Sewer City Administrator
$ 14,887.00
Contribution Garbage City Adminis
$ 9,924.00
Tourism Rent
$ 12,000.00
Tourism Admin Fee
$ 8,100.00
Credit Card Convenience Fee
$
Contribution from Utilities to General Fund
$ 884,831.00
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FY 18 General Fund Revenue Pie Chart
Sales Tax 31% Property Tax 20% Income Tax 14% Utility Contribution 13% Franchise/Usage 11% License/Fees 1% Police& Fire 5% Grant Funds 4% Miscellaneous 1%
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FY 18 General Fund Expenditures Summary
General Fund Expenditures & Assumptions
The FY 18 General Fund assumes increased expenditures over FY 17 by 2.82%. The most notable increase is in the Police & Fire Department’s budget and is due to the consolidated dispatch which was mandated by the State of Illinois. Some of the general fund budgets have experienced a decrease in expenditures however, the overall increase in spending at 2.82% is exceeding the increase in anticipated revenues of 2.42%. As in the past the three largest general fund budgets are the Police, Street & Fire Departments. The Street Department is experiencing a decrease in anticipated expenditures due mostly to the mild winter recently experienced which left the City with a large inventory of road salt. Because of this inventory, the City will be
General Fund Expenditures FY 18 & FY 17 Comparison
Budget Year FY 18 FY 17
Over/Under FY 17 Administration $ 747,883.00 $ 805,407.28
Building Dept. $ 185,766.00 $ 173,090.82
7.32%
City Administrator $ 98,505.00 $ 92,926.00
6.00%
City Clerk $ 200,418.00 $ 180,541.60
11.01%
Code Hearing Dept. $ 26,700.00 $ 23,500.00
13.62%
ESDA $ 1,000.00 $ 2,000.00
Fire Dept. $ 1,211,880.00 $ 1,089,575.94
11.22%
Planning & Zoning $ 3,875.00 $ 1,875.00
106.67%
Police Dept. $ 2,693,978.00 $ 2,381,998.84
13.10%
P/F Commission $ 12,345.00 $ 12,395.00
Public Property $ 201,650.00 $ 205,650.00
Street Dept. $ 1,496,596.00 $ 1,713,239.57
IMRF/SS $ 182,157.00 $ 186,565.23
$ 7,062,753.00 $ 6,868,765.28 2.82%
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FY 18 General Fund Expenditures Pie Chart
Administration 11% Building Dept. 3% City Admininistrator 1% City Clerk 3% Code Hearing Dept. 0% ESDA… Fire Dept. 17% Planning & Zoning 0% Police Dept. 38% P/F Commission 0% Public Property 3% Street Dept. 21% IMRF/S…
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FY 18 Utility/Enterprise Funds Summary
ELECTRIC UTILITY: The Rock Falls Electric Utility was again the recipient of the RP3 Award through the American Public Power
force development and system improvement. Criteria within each of the four RP3 areas are based upon sound business practices and recognized industry leading practices. The electric utility’s rate study has recently been completed and presentation to the City Council is anticipated in early FY 18. The revenue assumptions for the utility are not inclusive of any rate increase which may be
multiple months during the past fiscal year. There are no significant changes to the operation & maintenance or capital budgets of the electric utility with the biggest share of the capital expenditures going toward ongoing maintenance and upgrading of the hydroelectric facility. WATER/WASTEWATER The FY 18 budget reflects a 0.99% increase in water rates for basic residential customers and a 0.98% in wastewater rates to basic residential customers effective May 1, 2017. The Water and Wastewater Departments are completing a rate study which will be presented to the council in FY 18 however, no increase in water or wastewater rates are anticipated until May 1, 2018. There are no significant changes to revenues or expenditures in the water and wastewater FY 18 budgets. FY17 saw the establishment of a Utility Office Superintendent which has been a great success and is helping to solidify policies and procedures with the Utility Customer Service Office. GARBAGE There are no notable or significant changes to the FY 18 Garbage budget. FY 18 marks the final year of the current multi-year contract with Moring Disposal for solid waste pick up within the City. No changes in garbage collection rates are anticipated in FY 18.
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Enterprise Expenditure/Revenue FY 18 & FY 17 Comparison
Expenditures FY 18 FY 17
Over/Under FY 17
Electric $ 9,177,232.00 $ 8,816,520.00 4.09% Sewer $ 1,259,000.00 $ 1,343,278.00
Water $ 1,218,404.00 $ 1,173,347.51 3.84% Garbage $ 605,710.00 $ 604,710.00 0.17% Revenue FY 18 FY 17
Over/Under FY17
Electric $ 9,265,024.00 $ 9,477,135.96
Sewer $ 1,259,000.00 $ 1,343,278.00
Water $ 1,234,837.00 $ 1,196,113.67 3.24% Garbage $ 605,710.00 $ 604,710.00 0.17%
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Enterprise Historical Revenue Summary
FY 17 & FY 18 are budgeted figures and not actual final revenue ELECTRIC The decline in electric revenues continues with a decline of 6.67% since FY 14. This decline is due in part to fewer users and also much more efficient appliances, etc. in our homes. WATER Water revenues have continued to increase. This increase in revenues is marked at 9.57 % since FY 14. SEWER Since the opening of the new wastewater treatment facility in July of 2011, wastewater revenues have been level with a slight decrease of 1.94% since FY 14 with only slight fluctuations. $9,928,154.00 $9,686,730.00 $9,764,811.00 $9,477,135.00 $9,265,024.00 FY 14 FY 15 FY 16 FY 17 FY 18
ELECTRIC REVENUES
$1,126,976.78 $1,190,063.02 $1,157,815.00 $1,196,113.00 $1,234,837.00 FY 14 FY 15 FY 16 FY 17 FY 18
WATER REVENUES
$1,283,899.17 $1,270,866.47 $1,288,923.00 $1,343,278.00 $1,259,000.00 FY 14 FY 15 FY 16 FY 17 FY 18
SEWER REVENUES
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FY 18 Total Government Funds Summary
GENERAL FUND
FY 18 Budget Projected Revenue $ 6,852,686.00
Other Financing Sources $ -
IMRF/SS Contribution $ 210,100.00 Revenue Totals $ 7,062,786.00 Department Expenses FY 18 Budget Administration $ 747,883.00 Building Dept. $ 185,766.00 City Administrator $ 98,505.00 City Clerk $ 200,418.00 Code Hearing Dept. $ 26,700.00 ESDA $ 1,000.00 Fire Dept. $ 1,211,880.00 Planning & Zoning $ 3,875.00 Police Dept. $ 2,693,978.00 Police/Fire Commission $ 12,345.00 Public Property $ 201,650.00 Street Dept. $ 1,496,596.00 Sub-Total Expenses $ 6,880,596.00 IMRF/Social Sec. $ 182,157.00 GF Utility Offset Expense Total $ 7,062,753.00 Surplus/(Deficit) $ 33.00
P a g e | 15 TOURISM DEMOLITION BROADBAND ELECTRIC GARBAGE GIS/IT
FY 18 Revenues $ 9,265,024.00 Transfer from Reserves $ - Total Income $ 9,265,024.00 Expenses $ 9,177,232.00 Capital Projects $ 712,674.00 Total Expenses $ 9,889,906.00 Transfer to Reserves $ (624,882.00) FY 18 Budget Revenues $ 4,137,299.00 Transfer in from Reserves $ - Total Income $ 4,137,299.00
Expenses w/Capital $ 3,972,382.00
Trans to(from) Reserves
$ 164,917.00 Total Expenses $ 4,137,299.00 FY 18 Budget Revenues $ 76,060.00 Reserves Total Income $ 76,060.00 Expenses
$ 73,000.00
Trans to (from) Reser $ 3,060.00 Total Expenses $ 76,060.00 FY 18 Budget Revenues $ 182,500.00 Reserves $ - Total Income $ 182,500.00 Expenses
$ 177,589.00
Trans to (from) Reser $ 4,911.00 Total Expenses $ 182,500.00 FY 18 Budget Revenues $ 605,710.00
Transfer from Reserves
$ - Total Income $ 605,710.00 Expenses $ 547,106.00 Transfer to Reserve $ 58,604.00 Total Expense $ 605,710.00 FY 18 Budget Total Income $ 36,468.00 Total Expenses $ 36,468.00
P a g e | 16 INDUSTRIAL DEVELOPMENT WASTEWATER
FY 18 Budget Revenues $ 20.00
Transfer from Reserves
$ 6,680.00 Total Income $ 6,700.00 Expenditures $ 6,700.00
Trans to/(from) Reserve
$ -
UTILITY OFFICE
FY 18 Budget O&M revenues $ 1,259,000.00 Transfer from Reserves $ - Total O&M Income $ 1,259,000.00 O& M Expenses $ 1,367,011.00 to Reserves $ (108,011.00) Total O&M Expenses $ 1,259,000.00 Capital Improvement Income $ 127,000.00 Transfer from Reserves $ - Total Capital Income $ 127,000.00 Capital Exp. $ 129,795.00 Transfer to Reserves $ (2,795.00) Total Capital Imp. Exp. $ 127,000.00 Debt Service Income $ - Transfer from Reserves $ - Total Debt Service Inc. $ - Debt Service Expenses $ -
Transfer to (from) Reserves
$ - Total Debt Service Exp. $ - Plant Rep Income $ 1,285,200.00 Transfer from Reserves $ - Total Income $ 1,285,200.00 Plant Rep Exp $ 1,158,063.06 Transfer to Reserves $ 127,136.94 Plant Expense $ 1,285,200.00 FY 18 Budget Revenues $ 463,251.00 Expenditures $ 463,251.00 Unexpended Funds $ -
P a g e | 17 RIVERFRONT TIF WATER
FY 18 Budget Revenues $ 36,015.00 Transfer in from Reserves $ - Total Income $ 36,015.00 Total Expenses $ 19,650.00 Transfer to Reserves $ 16,365.00 Unexpended Funds
DOWNTOWN TIF
FY 18 Budget O&M revenues $ 1,234,837.00
Transfer from Reserves
Total O&M Income $ 1,234,837.00 O& M Expenses $ 1,218,404.00 Transfer to Reserves $ 16,433.00 Total O&M Expenses $ 1,234,837.00 Capital Imp. Income $ 131,533.00 Transfer from reserve $ - Total Capital Income $ 131,533.00 Total Cap Expense $ 367,635.00 Transfer to reserve $ (236,102.00) Total Capital Expenses $ 131,533.00 Debt Service Income $ 265,839.00 To/(from) Reserves Total Debt Service Inc. $ 265,839.00 Debt Service Expenses $ 167,400.00 Transfer to Reserves $ 98,439.00 Total Debt Service Expenses $ 265,839.00 FY 18 Budget Revenues $ 440,000.00 Transfer in from Reserves $ - Total Income $ 440,000.00 Total Expenses $ 436,702.00 Transfer to Reserves $ 3,298.00 Unexpended Funds $ -
P a g e | 18 TOTAL GOVERNMENTAL FUNDS
FY 18 Budget Total Revenues $ 26,615,222.00 Total Expenditures $ 26,615,189.00 Surplus/(Deficit) Budget $ 33.00
The total operating budget expenditures for the City of Rock Falls in Fiscal Year 18 is $26,615,189.00 and projects a surplus balance in the amount of $33.00. This surplus balance assumes total revenue will be $26,615,222.00. This is an overall increase of $922,264.00 or 3.59% over the projected FY 17 budget revenues. One time revenues of $4.1M from the issuance of bonds to fund the Gigabit fiber optic broadband network are included in the governmental fund total. No other remarkable or notable changes are assumed. The FY 18 budget continues Rock Falls’ strong budgetary performance and maintaining an operating surplus. The City has historically maintained very strong budgetary flexibility with sufficient and stable fund balances. In addition, the City’s liquidity remains excellent with available cash internally and access to external liquidity if necessary.
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Rock Falls named IMEA Municipality of the Year
Rock Falls earned the distinction of being named the Agency’s Municipality of the Year. The award recognizes Rock Falls’ reliable service and support to its electric customers. In presenting the award, IMEA’s President & CEO Kevin Gaden praised the city’s officials and utility personnel. “The people at the Rock Falls Electric Department understand that having a small utility department does not preclude them from running a first-class operation and delivering big-time services to their customers.” Gaden pointed out that the city utility, which serves 5,400 electric customers, is one of only four municipal utilities in Illinois to earn the American Public Power Association’s Reliable Public Power Provider designation. Known as RP3, the Reliable Public Power Provider designation comes only after a utility undergoes a rigorous quality assurance evaluation from the American Public Power Association. “Rock Falls is so adept at the RP3 process that Illinois Municipal Electric Agency staff have consulted Rock Falls Electrical Director Dick Simon when they have sought to advise
designation,” Gaden said. Rock Falls is the first public utility in Illinois to have key personnel earn the American Public Power Association Certificate in Public Power Governance. Mayor Bill Wescott and City Administrator Robbin Blackert completed and passed 13 training sessions in five key areas of public-sector utility governance to earn their certificates, only the third and fourth people in the entire country to successfully complete the program. Rock Falls also has an outstanding record of local generation. Rock Falls operates nine diesel generators and its Hydroelectric Generation Facility to help assure electric reliability for the community. Over the past five years, the city has put more than $10 million worth of upgrades into the telecom and hydroelectric plant, including a complete overhaul of both hydroelectric turbines. That effort has not gone unnoticed, said Gaden. Rock Falls earned the Illinois Municipal Electric Agency’s Generating Member of the Year Award in 2003 and again in 2015. From Left to Right: Robbin Blackert, Dick Simon, Kevin Gaden, Mayor Bill Wescott, Alderman Jim Schuneman, Alderman George Logan, Jr. and Alderman Glen Kuhlemier
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Rock Falls Water Department First Groundwater System to Win Prestigious Source Water Protection Award
Rock Falls Water Superintendent Ted Padilla recently accepted the Illinois Section American Water Works Association (ISAWWWA) award for Source Water Protection at the WaterCon in Springfield, IL. The Rock Falls water system has exceled at all the components required of the source protection program: Vision, Characterization, Goals, Action Plan, Implementation of the Action Plan and Evaluation of the program. Rock Falls not only exceeded all the necessary criteria and components
State of Illinois to do so with a groundwater system. “Congratulations to the City of Rock Falls for winning the Source Water Protection Award. Rock Falls exemplifies the vision of the ISAWWA to provide safe and sustainable water to their residents,” stated Kevin M. Culver, ISAWWA Award Chairman.