City Council Minutes 2023 03-14-23United City of YorkvilleFY 24 BUDGET PRESENTATIONCITY COUNCIL3‐14‐23
Budget Schedule•Policy decisions presentation•February 28, 2023•Full budget presentation •March 14, 2023•One mandated public hearing•March 28, 2023•City Council must approve budget before April 30, 2023
Tonight’s outline•Big Picture•Year‐by‐year overview•Select Items to note•The small picture•General Fund overview•Line‐items of interest in other funds
Tonight’s outline•Not covered in tonight’s powerpoint•Fox Hill SSA•Sunflower SSA•Debt Service Fund•Sewer Fund •Land Cash Fund•Parks and Recreation Fund•Items to Note sections•City Council goals•Sales tax projections•Staffing requests•Countryside TIF•Capital Projects•Bond ratings and refinancing•Building Inspection Load
Reminder•City Council approves the FY 24 budget proposal only•FY 25 and beyond are planning tools
How do things look? (1,500,000) (1,000,000) (500,000) ‐ 500,000 1,000,000 1,500,000 2,000,000FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028General Fund ‐Surplus(Deficit) ComparisonFY 23 BudgetFY 24 Budget
How do things look? ‐ 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028General Fund ‐Fund Balance FY 23 BudgetFY 24 Budget
How do things look? (30,000,000) (20,000,000) (10,000,000) ‐ 10,000,000 20,000,000 30,000,000FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028Aggregate City Budget ‐Surplus(Deficit) ComparisonFY 23 BudgetFY 24 Budget
How do things look? ‐ 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028Aggregate City Budget ‐Fund Balance ComparisonFY 23 BudgetFY 24 Budget
BIG PICTURE•Fund Balance of General Fund at 46% in FYE 24•Above 40% in FY 25 and beyond•Offset by TIF fund negative fund balances•Fund Balance in Water Fund at ~26% in FY 24, but relies on policy decision and Lake Michigan project in FY 25 and beyond•Policy decision of places of eating tax vs. staggered water rate increase•Aggregate budget outlook is best in years, but relies on policy decisions and capital project review in the future
•Revenue growth projections are conservative, even if recent performance has been extremely strong•Funding of Public Infrastructure (PW/Parks) facility without any revenue increases•Funds major water/sewer infrastructure projects, but subdivision cluster unaddressed•New police officers, police civilian staff, utility billing clerk, planner I, and a mechanic to keep up with population growthBIG PICTURE
Fund Balance History – General Fund‐2024681012FY 06FY 07FY 08FY 09FY 10FY 11FY 12FY 13FY 14FY 15FY 16FY 17FY 18FY 19FY 20FY 21FY 22FY 23FY 24FY 25FY 26FY 27FY 28Millions
How do things look? ‐ 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028Aggregate City Budget ‐Fund BalanceFY 24 Budget
Major initiatives•FY 24 •Lake Michigan studies and early costs•Major Road to Better Roads program•Potential Kennedy Road intersection improvements and/or resurfacing•Van Emmon LAFO grant, if awarded•Full water and sewer CIP, including watermain replacements and Well #6 design•Expanded/new programs for building maintenance, sidewalks, and playgrounds •Planning for PW building construction•New playgrounds at Rice and Prestwick Parks•New accountant (utility billing) and Planner 1•Shared police training coordinator
Major initiatives•FY 25 •Lake Michigan water source project, funding TBD•Expanded Road to Better Roads program•Public Infrastructure Facility (PW/Parks) construction•Potential Kennedy Road intersection improvements and/or resurfacing•Route 47 northern expansion!•Comprehensive Plan Update•Full water and sewer CIP•Expanded/new programs for building maintenance, sidewalks, paths, parking lots and playgrounds •Land Acquisition for a new Parks and Rec. property•Playgrounds at Cannonball and Rotary parks•New patrol officer hired
Major initiatives•FY 26, FY 27, and FY 28•Lake Michigan water source project must be planned•Expanded Road to Better Roads program•Subdivision cluster needs a policy decision•New Police Records Clerk and Evidence Custodian in FY 26•New Police Officers in FY 27 and FY 28•Full water and sewer CIP•Expanded/new programs for building maintenance, sidewalks, paths, parking lots and playgrounds
How do things look? ‐ 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028Aggregate City Budget ‐Fund BalanceFY 24 Budget
Items to Note•Lake Michigan water source project•Capital improvement plan (CIP) to be reviewed by Public Works Committee•FY 24•$2.6 million in expenditures•IDNR permits, preliminary engineering, annual wateraudit, leak detection, water meter retrofits, corrosion control study (tentatively planned to do with DWC, offset by federal grant from Rep. Underwood), early payments to DWC for engineering and construction, ground storage tank design, watermain replacements•Needs a policy decision on places of eating tax vs. staggered water rate increase to keep fund above fund balance policy limits
Items to Note•Lake Michigan water source project•FY 25•$112 million in expenditures•Annual water audit, leak detection, water meter retrofits, corrosion control study (tentatively planned to do with DWC, offset by federal grant from Rep. Underwood), lump sum payments toDWC for construction, receiving stations, ground storage tank design, watermain replacements
Items to Note•Lake Michigan water source project•FY 26, FY 27, FY 28 and beyond•$27 million in expenditures•Everything previously mentioned plus flow meters, a Montgomery interconnection for security and emergency use, and a decommissioning of our existing water treatment plants
Items to Note•Lake Michigan water source project•CIP below will be reviewed by Public Works Committee•Numbers are extremely conservative, to be used for WIFIA loan coverage
Items to Note•RINF fee increase with pay‐as‐you‐go vs. bonding for upcoming subdivision cluster•Reviewed at the Feb 28thCC meeting•Unaddressed in FY 24 budget proposal•~$11m in upcoming subdivision pavement obligations, with no current funding source1.No change in RINF, issue $10m in bonds and find revenues for $900k annual debt service2.No change in RINF, complete roads as we can afford them (30+ yearrepaving timelines)3.One time increase in RINF, then tie to inflation. Issue $7m to $8m in bonds and find revenues for ~$675k annual debt service4.Inflationary increases to RINF, issue $8m to $9m in bonds and find revenues for a ~$775k annual debt service
Items to Note•Public Works Building Planning•$30m bond planned for FY 24•Debt service covered by each individual fund, with no specific revenue increase•Funded out of Streets, Water, and Sewer•Will prompt a discussion on in‐house Mechanichire in FY 27
Items to Note•Home Rule Status and Special Census•2020 decennial census population ‐21,533•March 2023 population estimate is 24,000•~900 new houses constructed after decennial census, worth an estimated $250,000 •Partial special census should cost $150,000 •WIFIA loans for Lake Michigan available to Yorkville at 80% of entire project if we are under 25,000 population; falls to 49% if we are above 25,000 population
Small picture•Fund highlights •Full descriptions included in the budget memo
General Fund Revenues•Property taxes, Corporate Levy•New construction only•Property taxes, Police Pension•Following actuarial determined contribution•Pension fund had poor investment returns in FY 22•Funded at 53.6% as of FYE 22•2040 target expected to be 100% funded
General Fund Revenues•Municipal Sales Tax and Non‐Home Rule Sales Tax•FY 23 projection right in line with 3% year‐over‐year estimate•Revising future growth projections down to 2% year‐over‐year•State Income Tax•Budgeting for IML estimate of $155 per capita in FY 24, but recent state reports have been promising
General Fund Revenues•Building Permits•Still very strong•FY 23 figure does not yet include Bright Farms project•Continue to budget for operational costs of Community Development Dept, with overages going to City‐Wide Capital•Investment Earnings•Interest rates are up, with earnings into the 6‐digits annually
General Fund Expenditures•All Departments•COLA and merit/steps budgeted for bargaining units and non‐union•Health insurance historically budgeted for an 8% increase, came in at ~4% •IMRF rates are down from a peak of 11.62% in 2014, to 6.56% in FY 22. •Tuition reimbursement for Sergeant and one officer•Training and Conferences for employees to state and national conferences•Commodity assumptions have conservative increases across the board•Office cleaning expenditures expect to increase due to 651 Prairie Pointe, but exact proposal still TBD
General Fund Expenditures•Finance Dept•Utility billing clerk / accountant in FY 24, to cover cross‐training and new ERP implementation•Police Dept•Police officers in FY 25, 27, and FY 28•Evidence custodian and police records clerk in FY 26•Community Development Dept•New Planner 1 position to backfill from a Great Recession downsizing, and to work on expected new land‐use submittals•Outsourced inspections decreased in FY 23, since we hired new in‐house inspectors•Streets Dept•Two new, part‐time seasonal streets department employees (1000 hours each)
General Fund Expenditures•Admin Services Dept •IT services includes ERP system spread over FY 24 and FY 25•Contingency set at $75,000•Purchasing Manager shared position ended in FY 23•Facilities Manager shared position ended in FY 24, with new Yorkville‐only position•GIS Consortium proposed•Shared services model with Kendall County and Oswego
General Fund in FY 24Revenues 23,012,965Expenditures 23,012,965Surplus (Deficit) 0
Motor Fuel Tax Fund•Motor fuel taxes, transportation renewal taxes continue to increase•Salt prices were average in FY 23, but salt usage has been very low•Route 47 expansion through downtown finally paid off!•10 year payment plan from the State duringthe Great Recession
City‐Wide Capital Fund•Van Emmon Road repaving, assuming the City gets a grant•Subdivision cluster and RINF policy decisionleft unaddressed•Route 47 northern expansion expected to start in FY 25•Bristol Bay road connections funded through IDOT•Kennedy Road sections done with funds to be collected from Grande Reserve new housing starts placed in escrow
Building and Grounds Fund•Contains $30m bond issuance in FY 24 for Public Works building construction•Yorkville‐only Facilities Manager and existing Building and Grounds worker
Vehicle and Equipment Fund•Chargeback line‐items offset difference between impact fees and vehicle purchases•Developer funds received•$50k from Raintree Village –use TBD•$50k for Grande Reserve – pickleball court•FY 25 – Grande Reserve payments, for general park use•FY 26 – Bristol Bay for construction of a park site•FY 27 – Grande Reserve payments, dependent upon final platting•Sale of PW Capital•Dependent upon City Council purchase of vehicles and approval to trade‐in•Older dump trucks, backhoes, and mowers •Vehicle Maintenance Services Dept proposed in FY 27
Vehicle and Equipment Fund•Police•Police response training simulator in FY 25•New speed sign and message boards in FY 28•Full replacement schedule of police squads plusone critical incident response vehicle•Public Works•Full replacement schedule of dump trucks, bucket truck, street sweeper, leaf vacuum, and general vehicles•Parks•Full replacement schedule of mowers, backhoe, skid steer, gator, and lightning detectors
Vehicle and Equipment Fund•Playgrounds•Rice, Prestwick, Riverfront Park concrete repair, Kiwanis, Countryside, Sleezer, Cannonball, Rotary, Sunflower, Gilbert, Bristol Bay (new), Bridge Park, Raintree Park A, Stepping Stones, Bristol Station•Land Acquisition•Parks Department has funds from multipledevelopers and sale of property to put towards land acquisition of a new park/facility
Water Fund•Water policy decision•Needed to keep fund balance above policy in FY 24•Places of eating tax vs. staggered water rate increase•Lake Michigan project costs as previously discussed•WIFIA loans, IEPA loans, municipal bonds •ERP costs, full CIP costs including watermain replacements (including accelerated mains), Well #6 and treatment plant, Well #7 standby generator, and Public Works building costs all included
Countryside TIF•Upside down again, long‐term financial position is negative•City’s general fund could absorb deficit if necessary•One of final lots being developed for Station One Smokehouse•Opal Banquet Facility outcome unknown
Downtown TIF 1 and TIF 2•No major projects proposed, but this could change depending on development proposals•TIF 2 has seen some stable TIF increment figures
Budget Schedule•Budget policy decision presentation•February 28, 2023•City Council presentation•March 14, 2023•Public hearing•March 28, 2023•City Council discussion, debate and potential approval•April 13 and 27
Online•Full budget proposal, including excel spreadsheet available at:https://www.yorkville.il.us/Archive.aspx?AMID=44