Village of RoselleFYE DECEMBER 2013 BUDGET SCHEDULE

10/31/12

FUND FOR REVIEW PAGE 11/5 11/12 11/26

BUDGET OVERVIEW

GENERAL FUND REVENUES 2-5 XADMINISTRATION/GENERAL VILLAGE 6-17 XFINANCE 18-24 XFIRE DEPARTMENT 25-41 XPOLICE DEPARTMENT 42-62 XPUBLIC WORKS DEPARTMENT 63-73 XCOMMUNITY DEVELOPMENT 74-79 XBOARD OF FIRE & POLICE COMMISSION 80-81 XELECTED OFFICIALS 82-85 XCAPITAL IMPROVEMENT FUND 86-101 XMOTOR FUEL TAX FUND 102-107 XINSURANCE FUND 108-110 XDEBT SERVICE 111-114 XWATER/SEWER OPERATING FUND 115-126 XWATER/SEWER CAPITAL PROJECT 127-133 XWATER/SEWER EQUIPMENT REPLC FUND 134-136 XWATER/SEWER EXTENSION FUND 137-139 XWATER/SEWER BOND DEPRECIATION FUND 140-141 XPARKING LOTS OPERATING 142-147 XPARKING LOTS CAPITAL IMPROVEMENT 148-149 XTIF DISTRICT 150-153 XTIF REVENUE BOND 154-157 XGENERAL EQUIPMENT REPLACEMENT 158-160 XTASTE OF ROSELLE 161-162 XSISTER CITIES 163-164 XFOREIGN FIRE INSURANCE FUND 165-166 XFIRE PENSION FUND 167-169 XPOLICE PENSION FUND 170-172 XCAPITAL IMPROVEMENT PLAN XBUDGET FORMS 173-180 XLONG TERM FISCAL SUSTAINABILITY X

October 23, 2012 Dear Mayor Smolinski and Board of Trustees: The FY 2013 Proposed Budget reflects an organization utilizing a downsized full-time workforce, part-time personnel, regional consolidation, contractual personnel services, and membership in an intergovernmental risk pool to maximize limited revenue and tax base growth. Although many challenges exist for securing long term financial sustainability, initiatives designed to reduce operational expenditures over the last three budget fiscal years have enabled the organization to endure unprecedented negative economic pressure on its overall revenue and tax base. While several additional workforce reductions in the organization took place in 2012, residents and business owners of the community continued to receive cost effective and efficient administrative, public safety, and public works municipal services. Finance Planning Committee initiatives designed to further enhance department operations efficiencies, reduce employee benefit plan costs, increase the use of technology and geographical databases for access by all departments, and modify current compensation and job classification plans were undertaken to help address the long-term fiscal sustainability strategic objective established by the Village Board. The FY 2013 Proposed Budget includes funding for employee salary adjustments, scheduled replacement of public safety vehicles and equipment, improvements to various street, stormwater, municipal building, and wastewater treatment plant infrastructure, and continuation of the Emerald Ash Borer tree infestation management program. However, there are several other initiatives not included in the proposed budget that will warrant additional review and approval by the Village Board. These budget proposals are related to economic development and land use initiatives, another independent department optimization and efficiency study, an engineering study regarding a train horn quiet zone, on-going professional geographic information system consulting services, and enhanced employee wellness programs. The General Fund budget reflects estimated 2012 year end reserves of $3,398,961 or 2.88 months of reserves. This is a decrease from 2011 actual reserves of $3,642,864 or 3.30 months of reserves. The proposed budget reflects $14,093,178 in revenues and $14,270,371 in expenditures. While the $177,193 deficit is manageable, Village Board approval of the additional budget proposals mentioned above are not included in these projected expenditures and will increase that deficit to $368,493. Property taxes and state shared sales, income, and local use taxes represent 68% of all revenues. The proposed budget reflects a 1.3% increase in projected revenues over what is estimated for 2012. However, increases in projected property tax revenues ($160,000) and state shared sales, income, and local use revenues ($110,000) will offset all other revenue projections in decline or that reflect no growth.

The Water/Sewer Operating Fund budget reflects estimated 2012 year end reserves of $848,510. This is an increase from 2011 actual reserves of $588,500. The proposed budget reflects $6,185,900 in revenues and $6,216,162 in expenditures. This deficit of $30,262 leaves the budget with a projected $818,248 fund balance at the end of 2013. The proposed budget reflects a $.60 per 1,000 water rate increase pass through to users as a result of the DuPage Water Commission’s (DWC) four year water rate increase plan. Now in its second year, the plan was adopted by the DWC to cover cost increases from the City of Chicago, prepare for the elimination of $32 million in annual sales tax revenue after 2016, and retain adequate reserves per industry standards. The average household in Roselle uses 6,000 gallons of water per month. Therefore, the average household will see the water portion of their combined bill increase by $3.60 per month. The General Capital Projects Fund, Motor Fuel Tax, and Water and Sewer Capital Projects Fund budgets include needed funding for street, stormwater, municipal buildings, water main, and wastewater infrastructure improvements. Projected reserve levels in the General Capital Projects and MFT funds will allow for a $1,000,000 street improvement program, $300,000 in stormwater improvements, and $99,000 in municipal building upgrades. Had it not been for $250,000 in DCEO grant funding, a third $100,000 disbursement of the state capital projects bill MFT funding, and lower than projected costs to complete the Larson Lane roadway project in 2012, street improvement funding for 2013 would have been much less. The Water and Sewer Capital Projects fund includes funding for a $125,000 water main improvement project and $1,100,000 to cover a portion of the costs for the planned Devlin Wastewater Treatment Plant clarifier, pump station, and biological phosphorous removal project. The General Equipment Replacement and Water/Sewer Equipment Replacement Funds have sufficient funds to provide for the scheduled replacement of desktop computers and network servers, three police emergency vehicles, and other public safety security equipment. The proposed budget includes $356,300 to purchase this equipment. These two funds have been established to pay for the future replacement of the Village’s vehicle and fleet inventory, computer equipment, and other equipment such as public works lawn maintenance machinery. Each year, the General and Water/Sewer operating funds provide for an annual budget interfund transfer to these equipment replacement funds based on the original cost of each piece of equipment and its useful life. The FY 2013 proposed budget includes interfund transfers in the amount of $558,373 to pay for the future replacement of this equipment. The Insurance Fund provides funding to support health, dental, and life insurance expenditures for employees along with costs related to the Village’s risk management program. The fund reflects health insurance coverage for 19 Public Works employees covered by their union contract while all other employees are covered by a Blue Cross/Blue Shield plan. The proposed budget includes a 12% increase on the cost of health insurance for all non-union public works employees in 2013. However, the renewal quote came in after the budget was prepared reflecting a 3.75% overall increase to health

insurance premiums. The additional savings as a result of the lower renewal costs will help offset higher than projected dental renewal costs with the remaining savings retained as reserves. Employees contribute 10% toward the employee cost of coverage and 20% for their portion of the dependent coverage. The 2013 annual contribution to the Intergovernmental Risk Management Agency is $523,277. However, the Village will continue to utilize the alternate $25,000 deductible plan and the agency’s excess surplus fund disbursement to reduce the overall annual contribution to $372,974. The Roselle Police and Fire Pension Funds provide pension benefits to sworn firefighters and police officers. Pension benefits are financed by employee contributions, investments, and employer contributions through the property tax levy. As a result of changes in the law related to the amortization schedules and funding level requirements, employer contributions in the Police Pension Fund were reduced in 2012 and will continue to reflect those reductions in 2013. The Village’s contribution to the Police Pension Fund will be $821,533 in 2013. The Village’s contribution to the Fire Pension Fund will be $268,295. The increase in the Fire Pension Fund employer contributions for 2012 and 2013 is due to actuary projections that account for an employee group with more seniority. The FY 2013 Proposed Budget includes revenues and expenditures sufficient to provide residents and business owners continued quality municipal services. It also provides for capital infrastructure improvements necessary to maintain the Village’s wastewater, water, stormwater, streets, and municipal buildings. Other than the DuPage Water Commission pass through water rate increase, there are no additional proposed increases to fees, taxes, fines, or other charges. The Village Board and staff have worked diligently over the last three years to reduce a budget structural imbalance in the General Fund. However, that budget structural imbalance, which led to an unprecedented operating fund deficit, continues to exist and is a threat to long term fiscal sustainability. As I do not recommend any further reductions in authorized staffing levels, revenue expansion and/or essential municipal service level reductions must occur soon or the extraordinary efforts to reduce that budget structural imbalance in the last three years will be for naught. I want to thank Finance Director Pam Figolah, Assistant Village Administrator Jason Bielawski, Department Heads, and other staff members for the many efforts put forth to prepare this proposed budget. All of us look forward to presenting the budget to the Village Board beginning Monday, November 5. Respectfully, Jeffrey D. O’Dell Village Administrator

Memorandum To: Jeff O’Dell, Village Administrator

From: Pam Figolah, Finance Director

Date: October 31, 2012

Re: 2011 Finance Department Proposed Budget

On behalf of the Finance Department, I am pleased to provide you with the 2013 proposed

budget. This budget document supports the Finance Department’s commitment for continued

prompt and professional administration, accounting of the Village’s finances, and for the

continued efficient and professional level of customer service. The proposed budget has been

carefully prepared and represents our needs for the year 2013.

The Finance Department consists of three components: 1) administration, 2) accounting, and

3) customer service. The administration component plans, directs, organizes, and

communicates all Village fiscal operations. This includes the preparation of the annual budget,

mid-year budget review, property tax levy, coordination of the annual audit and advises on the

investments of all Village funds. The accounting component of the department is responsible

for the actual accounting and tracking of all the Village’s financial activities. This includes all

annual audit work papers and preparation, monitoring all Village investments, and accounting

for $93.8 million of Village assets and $23.8 million of Village liabilities. The third component of

the finance department is customer service. This component serves as the central

receptionists for the Village, directing much of the phone and foot traffic to the proper areas.

We receive over the counter and telephone inquiries/complaints and serve as the main

information hub of the Village. We are responsible for finance operations such as bill

processing and invoicing, payroll, purchasing, cash handling transactions, crediting payments

to accounts and promptly processing all other payments. Front counter staff sells and keeps

records of business licenses, vehicle licenses, building permits, yard waste stickers, and

parking lot permits. We are very fortunate to have such a professional and competent staff.

During 2012, the finance department reorganized to accommodate reduced staffing levels as

well as a reduction of Village Hall front counter customer service hours. In addition to shifting

staff responsibilities, outside contractual services were used during the audit season as well as

for special projects such as Munis software migration upgrades and other various accounting

projects. During 2012, the 2004 and 2004A debt was refunded utilizing a negotiated bond sale,

which resulted in a $250,000 savings over the remaining term of the bonds (twelve years).

During the 2012 year several technology enhancements were undertaken to improve

efficiencies within the department as well as the overall organization. The first efficiency

enhancement was the remote deposit program, which provided us with the ability to deposit

funds on a daily basis, yet reduced the number of times a Police Officer was taken away from

more critical work to escort us to the bank. A second efficiency was gained through an

enhanced automation process of payroll, which reduced the amount of data entry and reduced

the amount of paper processing.

The Finance Department 2013 Budget as proposed is below the 2009 actual expenditures.

Excluding personnel costs, the most costly expenditures within the finance department is the

processing of the vehicle stickers, the annual software and OSDBA maintenance agreement

contract, accounting contractual services, auditing services, and the publication of various legal

and financial notices. This proposed budget reflects the same continued commitment to seek

efficiencies while providing the same quality service at our current level.

Thank you for the opportunity to present the proposed Finance Department’s 2013 budget. We

look forward to the challenges ahead in 2013.

Please do not hesitate to contact me with any questions.