fiscal year 2005-06 final budget & five-year financial plan · 2010-06-08 · final budget...

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Fiscal Year 2005-06 Final Budget

Village of Downers Grove Fiscal Year 2005-06

Final Budget & Five-year Financial

Plan

Published May, 2005

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Title Page Village of Downers Grove Fiscal Year 2005-06 Budget Document

and Five-Year Financial Plan

List of Principal Officials ELECTED OFFICIALS

Mayor: Brian Krajewski

Commissioners: Susan McConnell Ron Sandack

Marilyn Schnell Martin Tully

Stan Urban William Waldack

VILLAGE STAFF LEADERSHIP

Village Clerk: April Holden

Village Manager: Riccardo Ginex

Village Attorney: Enza Petrarca

Assistant Village Manager: Michael Baker

Director of Human Resources: Gregory Zimmerman

Director of Information Services: Dr. Liangfu Wu

Director of Financial Services: Rita Trainor

Director of Public Works: David Barber

Director of Planning Keith Sbiral

Chief of Police: Robert Porter

Chief of Fire: Phillip Ruscetti

Director of Social & Health Services: Andrew Matejcak

Director of Media & Marketing: Douglas Kozlowski

Director of Tourism & Events: Mary Scalzetti

Director of Code Services: Donald Rosenthal

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Table of Contents I. Introductory Information

Manager’s Transmittal Letter ............................................................................................. 1-7

Village Vision & Mission Statement ............................................................................ 1-16

Village Organizational Chart ............................................................................................ 1-17

II. Budget Process, Organization and Policy Information

Budget Process & Calendar ................................................................................................2-2

Organization of Financial Presentation ......................................................................... 2-3

Fund Groups & Basis of Budgeting................................................................................. 2-8

Cash Balance Policy................................................................................................................2-9

III. Revenue & Expense Summary Information

Sources and Uses by Fund................................................................................................... 3-2

All Funds Summary , Revenue & Expenses.................................................................3-4

General Fund Major & Minor Revenue Sources ........................................................3-7

General Fund Expense Drivers........................................................................................ 3-10

New Personnel Requests & Service Changes Requests........................................3-12

Debt Service Summary.........................................................................................................3-18

IV. Fund and Program Summaries, General Fund

Fund 001 – General Fund.................................................................................................... 4-2

100 Level Program Overview..............................................................................................4-5

Program 111 – Legislative Support.................................................................................4-6

Program 121 – General Management............................................................................4-8

Program 131 – Legal ...........................................................................................................4-10

Program 142 – Building Services..................................................................................4-12

Program 151– Human Resources..................................................................................4-14

Program 171 – Information Services............................................................................4-16

Program 197 – Productivity Investment Program ................................................ 4-18

200 Level Program Overview ...........................................................................................4-21

Program 243 – Central Services .................................................................................. 4-22

Program 261 – Financial Services ...............................................................................4-24

300 Level Program Overview............................................................................................4-27

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Public Works Department Programs (Program 311-349)................................ 4-28

400 Level Program Overview ...........................................................................................4-51

Program 411 – Planning and Community Development ................................... 4-52

Program 495 – Special Service Area #2.................................................................. -4-54

Program 496 – Economic Development Incentives ............................................ 4-56

600 Level Program Overview .......................................................................................... 4-59

Police Department Programs (601-683) .................................................................. 4-60

700 Level Program Overview........................................................................................... 4-95

Fire Department Programs (701-751)........................................................................ 4-96

800 Level Program Overview ......................................................................................... 4-115

Program 821 – Social and Health Services ............................................................. 4-116

Program 823 – Alcohol and Tobacco Control .......................................................4-118

Program 833 – Transportation Assistance ........................................................... 4-120

Program 840 – Public Information ...........................................................................4-122

Program 841 – Cable Television ................................................................................ 4-124

Program 864 – Tourism and Events.........................................................................4-126

Program 865 – Special Events Support...................................................................4-128

Program 867 – Local Grants ........................................................................................4-130

Program 880 – Code Services......................................................................................4-132

900 Level Program Overview .........................................................................................4-135

Program 998 – Interfund Transfers ..........................................................................4-136

V. Fund and Program Summaries, Other Funds

Fund 102 – Motor Fuel Tax Fund ....................................................................................5-4

Fund 107 – Central Business-Tax Increment Financing Fund.............................5-6

Fund 108 – Community Events Fund............................................................................. 5-8

Fund 109 – Foreign Fire Insurance ................................................................................ 5-10

Fund 110 – Ogden Tax Increment Financing Fund................................................. 5-12

Fund 126 – Real Estate Fund............................................................................................5-14

Fund 220 – Capital Projects Fund................................................................................. 5-16

Fund 223 – Major Buildings Fund ..................................................................................5-18

Fund 337 – Fairview Avenue Debt Service Fund.................................................... 5-20

Fund 338 – Central Business District-TIF Debt Service Fund...........................5-22

Fund 471 – Parking Fund.................................................................................................. 5-24

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Fund 478—Transportation Fund...................................................................................5-26

Fund 481 – Water Fund .....................................................................................................5-28

Fund 530 – Equipment Replacement Fund ...............................................................5-30

Fund 531 – Fleet Services Fund.......................................................................................5-32

Fund 562 – Risk Management Fund.............................................................................5-34

Fund 563 – Health Insurance Fund...............................................................................5-36

Fund 640 – Construction Deposit Fund.....................................................................5-38

Fund 651 – Police Pension Fund .................................................................................... 5-40

Fund 652 – Fire Pension Fund........................................................................................ 5-42

Fund 805 – Library Fund.................................................................................................. 5-44

Fund 821 – Library Construction Fund...................................................................... 5-46

Fund 836 – Library Debt Fund........................................................................................5-48

VI. Organization and Community Information

Staffing History........................................................................................................................6-2

Wage & Classification Schedules .................................................................................... 6-8

Community Description and Demographics .............................................................. 6-11

VII. Appendicies

Appexdix A: Glossary............................................................................................................ 7-2

Appendix B: List of Acronyms......................................................................................... 7-10

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Manager’s Transmittal Letter May 1, 2005

Village Council Village of Downers Grove 801 Burlington Avenue Downers Grove, IL 60515 Dear Mayor and Members of the Village Council: Submitted herewith is the Village of Downers Grove’s Final Budget for fiscal year 2005-06 (FY05-06), including the five-year financial plan. This budget provides revenue and expense information for all funds pertaining to the general operation and maintenance of municipal government, including the Downers Grove Public Library. A detailed descriptive and financial summary of each fund and each Gen-eral Fund program is provided within this document. Budget Process During this year’s budget process, the Village Council and staff have made con-certed efforts to improve the manner in which the process is organized and con-ducted. As is displayed in greater detail on page 2-2, this is a complex process that spans several months and involves a great deal of analysis, discussion and review before the budget is ready for consideration by the Village Council. Some of the refinements to the process include the following: Greater Opportunities for Public Input – Responding to a goal set by the Village Council, this budget process has been structured to incorporate greater input and comment from Village residents. A December Dialogue on Fiscal Priorities was held on December 4 at the Downers Grove Recreation Center and provided oppor-tunity for residents to discuss and present on matters central to the Village’s budget planning. In addition, a survey was made available to all residents in paper and online format that allowed for comment on the overall Village Mission and sug-gestions for how to most effectively accomplish it. This information was compiled into a report presented to the Village Council on January 4. Improved Presentation of Budgetary Information – A great deal of effort was in-vested by Village staff to improve the manner in which information is communi-cated to those many stakeholders that participate in the Village’s budget process. Our hope is that this presentation will allow the average resident and/or taxpayer, who may have never before participated in Village affairs, to read this document and better understand how Village resources are being allocated. The organization of information should also improve the decision-making process at the Council level. This marks the first year that such a comprehensive public document has published.

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Overall Financial Summary A total budget amount of $78,319,004 in expenditures is being presented to the Village Council for consideration. This expenditure level is funded primarily through the $82,172,272 in budgeted revenue, and balanced by existing financial resources available for use in the various funds. The total budget amount repre-sents activity in governmental, internal services, enterprise and fiduciary funds. These funds vary in structure and statutory requirement depending on the activity performed within each fund. The budget process represents an opportunity for the Village to assess and evalu-ate how it commits its financial resources and make decisions regarding their con-tinued use. The process, if conducted effectively, will result in a clearly spelled out plan for the future of this organization and a general collective understanding of how and where limited fiscal resources will be directed. This year, perhaps more than any other, has demonstrated the need to take a forward thinking approach to budget planning and look out beyond next year to understand how recent and cur-rent decisions will impact the future of this community. The budget process this year has featured several specific issues worthy of mention: Personnel Expenditures – The Village, as a service driven organization, continues to expend the greatest percentage of its operating revenue on personnel. For FY2005-06 personnel expenditures are expected to total $33,890,504. These costs continue to rise on an annual basis by 3 to 4%, with virtually no increases in actual staffing levels, due in part to increases mandated by the Village’s collective bar-gaining agreements and the rising costs of health insurance and pension contribu-tions. Non-union personnel, while not guaranteed an increase in salary by any contracts, are deserving of compensation benefits that remain relatively aligned with their union counterparts, and also contribute to the personnel increases that drive the greatest proportion of cost increases reflected in this budget. At the time that the budget was developed, the Village was still in the process of settling contracts with both the Police and Fire Unions. As such, wages for these employees have been budgeted according to the wage scale being proposed by Vil-lage management during the commensurate stage of the negotiations. In the case of both collective bargaining agreements, the actual percentage increases for FY2005-06 exceeded the amount allocated in the budget. Even so, the impact on the departmental budgets is nominal and should not create a burden in meeting personnel expense obligations. Salary and wage increases for non-union employees have been budgeted at 3.0%. The Village evaluated and implemented changes to its non-union ranges at the be-ginning of the prior fiscal year. Since Village practice is to conduct this reevalu-ation every other year, a review of ranges will be conducted during FY2005-06.

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The outcome of this review process will be presented to Council during this fiscal year with recommendations on how to adjust non-union salary ranges to remain competitive with the local labor market and continue to attracted talent and well-trained employees. In order to present future spending plans that are sustainable given projected reve-nues, the Village Council and staff must work collaboratively to identify solutions that seek to maintain or improve service levels, while relying on less staffing to complete this work. Several discussions in recent years have centered on this theme, and the Village management recognizes the importance and urgency of this task. Discussions with the Village Council regarding this budget will seek to de-termine means by which to come to a common understanding of how this chal-lenging task should be accomplished. It should be noted, however, that it is a process and a management philosophy which will evolve over time and will not immediately yield the fully desired results. A significant reduction to the Village workforce, undertaken at once, may prove more catastrophic than beneficial to this organization, as well as the residents of this community. The FY2005-06 budget proposes no new full-time positions. Four part-time or seasonal positions are being requested in order to improve operational efficiency at minimal cost. In addition, reductions in staffing levels are expected this year and will continue to materialize over the next two years based on planned retirements, elimination of those vacated positions, and consolidation of their duties by apply-ing more efficient use of technology. Debt Service – One area that has received attention recently involves the level of the Village’s debt obligations, and the plan for repaying the debt that the Village has borrowed over recent years. The Village has sold general obligation bonds for a variety of reasons dating back to the mid-nineties, including the reconstruction of the library facility, the purchase and installation of the automated water meter reading system, the reconstruction of Fairview Avenue south of 63rd Street, and downtown improvements including the replacement of infrastructure and the con-struction of the parking facility. A section on page 3-18 has been provided to show the outstanding principal related to each of these debt instruments. This use of debt was carefully planned and evaluated, with dedicated funding mechanisms put in place to help retire the debt. Council Priorities – During its goal setting process in 2004, the Village Council articulated a set of goals that helped establish the workplan for Village staff for the upcoming year. Several of these goals are integrated in the budget process and are worthy of mention here. One of those goals sought to conduct two means of public input into the budget process and is alluded to in the section above, “Greater Op-portunities for Public Input.” The other budget related goals include the following: 1. Evaluate and make organizational changes as appropriate (in the following operational areas):

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• Village Operations Center (Program 681): • Tourism & Events Department (Program 864): • Accounting Department (Program 261): Thorough evaluation of these programs has been conducted, the results of which were discussed during the actual budget review process. Please note that this budget does not reflect substantial changes to these program areas as compared to prior years. 2. Evaluating the making of recommendations regarding the economic impact of all major tourism/events sponsored by the Village The objective will also receive attention during the budget reviews with Council. The Tourism & Events Department has been exploring options for gathering more information regarding the economic impact of the events that the Village organizes and conducts. Some of this information has been shared with Council during the consideration of the 2005 Heritage Festival budget, and will continue to be refined in the upcoming weeks and months as the department, working with the Tourism & Events Commission, examines options for improving the cost effectiveness and overall benefit of the events that this community provides. 3. Create and implement a 5-year capital expense and budget plan to include: Capital equipment, Village owned property, appropriate level of Village re-sources to meet objectives. The Capital Budget process has received several refinements since last year, with the overall goal of provided more comprehensive information and establishing a long-term sustainable plan for capital financing throughout the Village. The Budget Team and Public Works Department initially worked through the Public Services Subcommittee to discuss and solicit preliminary input on Capital Projects that staff proposed, as well as the means by which to fund them. The full Council then reviewed the entire set of Capital Projects and made further refinements in developing the final Capital Improvements Plan for the upcoming fiscal year and into the future. A separate CIP document has been produced to detail the projects approved for funding in FY2005-06 and beyond. Most notably, the Council has authorized a significantly greater level of expenditure in the Capital Projects Fund (220) to complete projects throughout the Village. The budget in this fund for this fiscal year totals $3,936,287, up from a budget of $1,863,939 in FY2004-05. 4. Facilitate the creation of recommendations related to the Village bus system (Fund 478) to the Village Council, preferably as part of a more comprehensive public transportation system plan, but at a minimum, re: disposition/

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continuance of the bus services as part of the FY 05-06 process. This Program was being presented again for discussion by the Council after a thor-ough review of its performance and desirability to continue during last year’s budget process. At the time, it was determined that the commuter bus program would remain funded and operational for at least one year after the completion of the Downtown Parking Facility (completed October 1, 2004). Since that time, the program has continued to see ridership decline, despite concerted efforts by Vil-lage staff, working through the recently established Transportation Advisory Com-mittee, to promote the system and attract greater ridership. No doubt, the precari-ous existence of the system has much to do with the inability to attract new and committed riders. An increase in the number of daily fee parking spaces in the Parking facility must also be considered a contributing factor in the poor ridership levels. The adopted budget for FY2005-06 does reflect continued funding for the com-muter bus program. However, a clearly defined long-term program for the opera-tion of the system has yet to be developed and adopted by the Village Council. This matter will be revisited later this year, as the one-year deadline following the opening of the parking deck approaches. General Fund Summary The General Fund accounts for the vast majority of operational activity on the mu-nicipal side. For FY2005-06, a General Fund budget of $39,085,509 is being pre-sented for consideration. These expenses are balanced by $41,237,181 in revenues. This represents a 1.3% increase in expenses over the budget adopted by the Village Council in FY2004-05. Revenue Projections – For the first time in several years, the overall revenue pic-ture for the upcoming fiscal year is a positive one. Revenues are currently budg-eted to exceed expenses by $2,151,672 in FY2005-06. This increase is attributable to a more robust local economy, as reflected in the increases in sales tax receipts and projections. Both the Local 1% sales tax and home rule sales tax have exceeded initial projections for FY04-05 and are projected to generate a combined $17,150,000 in FY2005-06. It should be noted, however, that the growth in local sales tax has, in part, been spurred on by a series of sales tax incentive agreements that the Village has entered into with local businesses. These agreements obligate the Village to return a portion of the increased sales taxes generated to these busi-nesses. In order to effectively track and monitor the impact of these agreements, a separate fund (111) was created to account for the revenue, in the form of sales tax dollars, and the expenses associated with them. Property Taxes for General Fund operations are currently projected to experience only modest growth, with the tax rate being held constant. For the average home-owner, a constant rate means that the taxes paid to the Village will not increase

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unless the assessed value of one’s property increases. Home Rule Sales Tax – In March of 2003, preceding the adoption of the FY2003-04 Budget, the Village Council adopted a home-rule sales tax at one-half of one percent, raising the Village’s sales tax on most, but not all, retail goods from 6.75% to 7.25%. This additional revenue was critical to the Village maintaining its high quality services, since several other revenues sources, including the local sales tax, income and telecommunications taxes had seen declines in prior years. At the time of adoption, a sunset clause was attached to the home rule sales tax ordinance that will take effect after three years, effectively eliminating the tax in July 2006. For FY2005-06, the home rule sales tax is expected to generate $4,350,000, and based on the trend of collections to date, it will continue to grow. The elimination of this revenue sources will require careful collaboration between the staff and Council to determine how to reduce levels of expenditure in the General Fund in order to meet the significantly reduced level of available revenues. General Fund Expenses – Recognizing the need to limit spending, the increase in expenses over the prior fiscal year budget is only 1.3%. Budgets were developed this year with an eye toward keeping expenses level and only allowing increases where obligated or justified. The section on page 3-10 explains in greater detail which expense accounts are driving the increases to the General Fund budget in FY2005-06. In addition, beginning on page 3-12, we have included a section which describes the major new personnel and service change increases that have been reflected in the budget. This section also reflects several requests that were re-quested but not approved for funding in the upcoming fiscal year. Long Term Issues and Considerations Throughout the document, you will see information that pertains not only to FY2005-06, but to FY2006-07 and beyond. This emphasis on the “out-years” is intended to help shift the discussions regarding this budget and the most appro-priate allocation of the Village’s resources into a more strategic and long-term fo-cus. The demands of the future will require us to carefully assess how our current environment will play out in these future years. Conclusion There is a strong and continuing need to reassess the fundamental mission of this organization and develop a commonly shared set of values and goals, recognizing the valuable role that elected officials, board and committee members, employees of the Village, and residents play in helping to further this organization and this community. The multitude of stakeholders by its very nature challenges us and compounds the degree of effort that must be expended to arrive at the best solu-tion for the citizens of Downers Grove. We have a wealth of talent to draw from in working to meet these challenges, and I am hopeful that this budget and the re-mainder of the process that follows will allow for productive discussions that util-

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ize this talent and emphasize thoughtful collaboration. Appreciation The publication that you see here is the culmination of a great deal of hard work among people in this organization, as well as the larger community. The members of the Village Council, that have spent an extraordinary amount of time under-standing, researching, and speaking with residents about matters that have budg-etary significance, deserve much credit for all of their hard work and commitment. I would also like to recognize those residents who have taken time out of their busy lives to listen, understand, and offer their own comments and opinions, in order to better shape Downers Grove’s future. Finally, I would like to offer my heartfelt appreciation to the employees in this or-ganization who played a role in this process. This document, and the efforts that led up to it and will continue into the next few months, have been a dramatic im-provement over processes of the past. Discussions about the most effective, fair and responsive use of the Village’s financial resources have been much richer and more strategic and purposeful than in the past. This staff is truly committed to meeting the policy goals of this Council and providing the highest quality services to the residents in a fiscally responsible manner. The teamwork, sacrifice and per-severance that the staff has displayed in the face of some extremely difficult and challenging circumstances is admirable. I look forward to our continued efforts to make this budget process a successful one and carry out the plan for the future of Downers Grove. Sincerely, Riccardo Ginex Village Manager

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Village Vision & Mission Vision Statement Statement

The Village of Downers Grove, an organization of excellence, will be the community of choice for living, working, and leisure activities. The Village Government, through its elected officials, staff, boards, commissions, and citizens, will provide: • Quality services in all areas, embracing the principles of good stewardship for

our resources. • As an organization, we will endeavor to support social and cultural diversity in

Downers Grove. • Mindful of our heritage, we will seek and enter partnerships with others to se-

cure a sound economic future for the community through careful planning, where the land use distribution among residential, commercial and industrial is stable and balanced.

Revised March 2000 Mission Statement To promote and provide for the safety, health and welfare of its citizens, it is the mis-sion of the Village of Downers Grove, Illinois, through its employees, officials and volunteers to: • Provide customer service in a professional, creative, innovative, cost-efficient

manner, consistent with the values that have been adopted by the employees: integrity, teamwork, stewardship, competence, enthusiasm, and respect.

• Provide planning direction which preserves our heritage while promoting pro-gress and economic development.

• Regularly evaluate Village programs and services, and revise them where appro-priate.

• Commit appropriate revenues to fund creative, high quality, cost efficient pro-grams and services while maintaining adequate financial reserves for unforeseen events or occurrences.

• Respond to individual and business concerns while balancing the needs of the entire community.

• Involve citizens and develop civic leadership. • Provide an employment environment that attracts and retains high quality em-

ployees, and which promotes loyalty, creativity and professional growth. Revised March 2000

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Citizens of Downers Grove

Village Attorney

Mayor and Village Council

Village Manager

Deputy Village ManagerAdministration

Boards and Commissions

Village Clerk

Clerk’s OfficeLegal Department

Assistant VillageManager

Code Services

Financial Services

Building Services

Information Services

Tourism and Events

Social & HealthServices

Public InformationOffice

Fire Department

CommunityDevelopment

Police DepartmentPublic Works

Citizens of Downers Grove

Village Attorney

Mayor and Village Council

Village Manager

Deputy Village ManagerAdministration

Boards and Commissions

Village Clerk

Clerk’s OfficeLegal Department

Assistant VillageManager

Code Services

Financial Services

Building Services

Information Services

Tourism and Events

Social & HealthServices

Public InformationOffice

Fire Department

CommunityDevelopment

Police DepartmentPublic Works

Organizational Chart The following represents the organizational chart for the Village of Downers Grove, effective May 1, 2005. This version represents the structure of the organization as planned for fiscal year 2005-06.

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fiscal year 2005-06 final budget & five-year financial plan · 2010-06-08 · final budget...

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