Mr. Muetz gave the following Power Point presentation.
Tonight is our fourth meeting to discuss the FY 2013/14 budget.
The Approval of the FY 2013/14 is included in tonight’s Board Agenda.
In May or June, the Village will pass the Appropriation Ordinance.
FY 13/14 Budget Highlights
Balanced Budget excluding Mall Redevelopment funding.
No Tax Increases.
1.95 Full Time Equivalent Increase in Headcount.
Focusing on increasing capital investments in the most needed areas, while at the same time keeping public safety a priority.
Changes to the Proposed Budget’s Revenues
In the General Fund, staff increased the projected hotel tax income by $29,000.
In the Capital Fund, staff increased total revenues by $253,280.
In the Utility Fund, staff decreased sewer sales by $151,000.
Changes to the Proposed Budget’s Expenses:
In the General Fund, insurance expenses were decreased by $25,000, the streets budget was increased by $2,200 and the salary category was decreased by $52,000 due to delayed hiring of positions.
In the 911 Fund, $80,000 was relocated as budgeted funds for the mobile data computers were not expended in FY 12/13, leading to an adjustment for the FY 12/13 year-end estimates and a corresponding increase in the FY 13/14 budget.
In the Capital Fund, street rehabilitation was increased by $200,000 and Public Works facility improvements were decreased by $35,500.
In the Utility Fund, an additional $100,000 was budgeted for repairs at the HeatherRidge well’s pump and motor. A problem had recently been detected and this funding was set aside in case significant repairs were necessary. Staff also decreased the amount budgeted for the SCADA project by $20,000.
Revision of FY 2012/13 Forecast
Staff revised FY 2011/12 revenues and expenses projections based on more up to date information available.
Revised Projected Year End General Fund Balance is $23,007,867 or 63% of FY 2013/14 expenditures.
General Fund Overview
Mr. Muetz outlined that based off of the initial fund balance of $23,007,876 and with projected revenues of $35,861,050 and expenses of $34,900,262, that staff projected the General Fund balance to increase roughly $900,000 to $23,968,655 on April 30, 2014.
Capital Improvement Fund Budget
The budget includes a purposeful spend down of fund balance. Revenues for FY 13/14 are projected at 930,000; expenditures are estimated at $3.0 million, thereby decreasing the projected unrestricted cash balance to $2.1 million as for April 30, 2014. Some notable expenditures in the Capital Fund include:
$1,300,000 for Street Resurfacing
$275,000 for Storm Water Detention
$50,000 for Sidewalk Improvements
The overall capital program for FY 2013/14 Capital Projects total $9,208,514, and is spread across the General Fund, 911 Fund, Motor Fuel Tax Fund, Capital Fund, Mall Redevelopment Fund, and Utility Funds.
Utility Fund Combined Budget
Staff projects $8.1 million in revenue, $8.2 million in expenses; therefore the fund balance is decreasing slightly to $5.8 million.
On the expense side, plans for FY 13/14 include removing the 50+ year old water tower located near Fire Station #1, continuing an aggressive sewer line televising program which will be expanded to include spot repairs and sandblasting and repainting 20% of the Village’s fire hydrants.
FY 2012/13 Budget – All Funds
From a Village-wide perspective, including all funds, we should begin the year with $99.6 million in fund balance, receive $53.7 million in revenues, spend $56.2 million, of which $2.5 million relates to the Gurnee Mills Redevelopment Agreement, and end the FY 2013/14 fiscal year with $97.1 million in fund balance.
$50.1 million of the $97.1 million is restricted to the police and fire pension funds. The remaining $47 million are other Village funds.
Trustee Park reminded the Board of the prior year’s discussion of spending down General Fund balance until it reached 60% of the upcoming year’s expenditures in order to fund capital improvement projects. He then asked if staff felt comfortable about keeping that standard for the upcoming fiscal year.
Mr. Muetz stated staff felt comfortable but said it was ultimately a Village Board decision. Staff could generate some information for the Board to consider.
Mayor Kovarik suggested it could be done later in the year as more data became available.
Trustee Park said he believed that, in the prior year, the Board had agreed that 60% was acceptable. He said he would be comfortable with doing that again this coming year.
Mr. Muetz said they would investigate that amount and bring some information back to the Board for their consideration.
Trustee Park then asked about the implementation of the School Resource Officer positions and when the agreement with the school districts which would fund the positions would be brought back to the Village Board for consideration.
Chief Woodside stated that the school districts had responded favorably to a multi-year contract, but since each district will be signing an agreement, it was difficult to estimate a timeline.
Trustee Ross asked about the HeatherRidge well and what would happen to any budgeted funds in the well repair line item if they were not expended.
Mr. Muetz explained that they would not be directed toward another activity and would simply go toward fund balance.
It was moved by Trustee Schwarz, seconded by Trustee Balmes to recommend the Proposed Budget for Fiscal Year 2012/2013 to the Regular Meeting for approval.
AYE: 5- Ross, Park, Garner, Balmes, Schwarz
NAY: 0- None
ABSENT: 1- None
It was moved by Trustee Park, seconded by Trustee Garner to adjourn the meeting.
Voice Vote: ALL AYE: Motion Carried.