Village of Downers Grove Municipal Budget Community Investment Program

Transcription

1 Village f Dwners Grve Municipal Budget Cmmunity Investment Prgram 801 Burlingtn Avenue Dwners Grve, IL

2 VILLAGE OF DOWNERS GROVE, ILLINOIS MUNICIPAL BUDGET and COMMUNITY INVESTMENT PROGRAM FOR THE FISCAL YEAR JANUARY DECEMBER 2013 Prepared by Finance Department & Village Manager s Office Judy Buttny Finance Directr Allisn Deitch Management Analyst

3 TO: Hnrable Mayr and Cuncil FROM: David Fieldman, Village Manager RE: Adpted FY13 Municipal Budget DATE: Nvember 12, 2012 FY13 Budget Message The Village Budget Team and I are pleased t present the Adpted FY13 Municipal Budget. The Adpted Budget reflects the Village s cntinued cmmitment t achieving the Strategic Plan gal f Steward f Financial Sustainability in the face f challenging ecnmic cnditins affecting nearly all municipalities in the state, regin and natin. The Adpted Budget is cnsistent with the strategies and recmmended actins f the Lng Range Financial Plan (LRFP) that was prepared earlier this year. The Adpted FY13 Budget implements the Strwmater Utility in a manner cnsistent with the Village Cuncil s apprval f the prgram earlier this year; includes a reductin in the Village s prperty tax levy, the secnd reductin in as many years; presents a balanced General Fund budget (revenues equal t expenses); and allws fr the cntinued investment in needed infrastructure imprvements in a sustainable manner. Key Cmpnents f the FY13 Budget Implements the Strmwater Utility Reduces the Prperty Tax Levy by $1.98 millin (15.2%) Includes a Balanced General Fund Cntinues Investment in Infrastructure The budget review and apprval schedule summarized belw prvided ample pprtunities fr dialgue amng the Village Cuncil, cmmunity and staff. FY13 Budget Review and Apprval Schedule Budget Wrkshp Sat. Octber 6 Budget Discussin at Cuncil Meeting (First Reading) Tue. Octber 9 Budget Discussin at Cuncil Meeting (First Reading) Tue. Octber 16 Cffee With the Cuncil Budget Discussin Sat. Octber 20 Public Hearing, Budget Discussin and Estimated Levy Discussin at Cuncil Meeting Tue. Nvember 6 Adptin f Budget & Estimated Tax Levy at Cuncil Meeting Tue. Nvember 13 Public Hearing fr Tax Levy at Cuncil Meeting Tue. December 4 Adptin f Tax Levy and Abatements Tue. December 11 The Village budget is cmprised f 26 active funds. The ttal municipal budget fr all funds cnsists f apprximately $104.6 millin in revenues and $124.6 millin in expenses. (Summaries f all funds are presented in the Fund Summaries sectin f the budget.) Expenses are budgeted t exceed revenues as the Village cntinues t invest the prceeds frm recent bnd issuances in street, water and strmwater infrastructure imprvements. The bnd prceeds appeared as revenues in recent budgets. As the Village spends the prceeds n the capital prjects, the expenses are reflected in the FY13 budget and future budgets. This results in expenses exceeding revenues in the Strmwater, Water and Capital Funds. Figure 1 belw summarizes the budgeted 1

4 revenues and expenses fr each fund within the Budget. Three f the funds are managed by the Library District, an independent cmpnent unit f the Village. Figure 1 All Funds Summary - Revenues & Expenses Expenses Revenues General Health Insurance Risk Management Fleet Services Equip. Replacement Plice Pensin Fire Pensin Strmwater Water Parking Capital Prjects Mtr Fuel Tax Majr Buildings Dwntwn TIF Ogden Ave. TIF Transprtatin Real Estate Tax Rebate Asset Frfeiture Freign Fire Ins. Fairview Debt Svc DT TIF Debt Svc Capital Debt Svc Library Library Cnstructin Library Debt Svc $ (in millins) 2

5 IMPLEMENTATION OF THE STORMWATER UTILITY The Adpted FY13 Budget reflects the implementatin f the Strmwater Utility apprved by the Village Cuncil n August 21, In January 2013 the Village will implement a mnthly strmwater fee that will be charged t all prperty wners. Revenues generated by the fee will be allcated t all csts f wning, perating and maintaining the strmwater infrastructure system, which cnsists f: Apprximately 7,000 drainage structures 315 strmwater detentin facilities 30 miles f strm sewer pipes 12 miles f streams 140 miles f radway ditches 47,000 feet f culverts. Csts fr the strmwater system are currently funded primarily thrugh prperty taxes. Shifting the surce f funding t a utility/fee based system will result in a reductin in the prperty tax levy by apprximately $2.47 millin. (see the Reductin f the Prperty Tax Levy sectin n page 5.) What Kind f Water? All water is nt the same... Tap water cmes frm a faucet and is used fr drinking, bathing, cking and husehld purpses. Custmers receive a bill fr their tap water use frm the Village. Wastewater is water that has been used fr washing clthes r flushing the tilet. Custmers receive a bill fr their wastewater use frm the Dwners Grve Sanitary District. Strmwater riginates frm rain r melting snw r ther activities invlving utdr water use such as car washing r hsing ff the driveway. Water that des nt sak int the grund becmes run-ff. Every prperty generates run-ff and benefits frm the Village innfrastructure system that manages strmwater. Beginning in 2013, custmers will receive a bill fr strmwater frm the Village. The Village has invested significant capital t cnstruct and maintain the strmwater infrastructure system. Strmwater riginates frm rain r melting snw, r ther activities invlving utdr water use such as car washing r hsing ff the driveway r sidewalk. Water that des nt sak int the grund becmes run-ff. Every prperty generates run-ff and benefits frm the Village infrastructure system that manages strmwater. The utility mdel represents an equitable methd t cllect revenue frm thse prperties that place a demand n the system. Revenue is generated by charging all prperty wners a mnthly strmwater fee, based n the prperty's impact t the strmwater system. Hw Will the Strmwater Utility Affect My Prperty? Residents and business peratrs wh wuld like t knw hw the Strmwater Utility affects their prperty may their prperty address t swutility@dwners.us. The Village will prvide them with the annual strmwater fees and the reductin in their prperty tax bill. 3

6 There are multiple benefits t implementing a fee-based system: All prperties in the Village share in the cst f perating and maintaining the strmwater system. Fees prvide a predictable and sustainable funding surce. A heightened sense f awareness f the strmwater management system is created. Prperty wners are encuraged t reduce the amunt f run-ff frm their prperty by installing rain barrels, rain gardens and detentin basins. These actins may allw prperty wners t reduce their strmwater fee. The implementatin f the Strmwater Utility affects many prtins f the Adpted FY13 Budget as summarized belw. Reduces the Village prperty tax levy by $2.47 millin. All f the revenues fr strmwater activities will be generated by the strmwater fees. The Village will n lnger levy prperty taxes fr strmwater-related activities. Therefre, the 2013 prperty tax levy will be reduced by $2.47 millin, the amunt the Village levied in 2012 fr strmwater-related expenses. Tw cmpnents f the Village tax levy will be reduced, including a prtin f the crprate levy and all f the strmwater levy. (see the Reductin in the Prperty Tax Levy sectin n page 5.) Reduces General Fund revenues and expenses by $815,202. As part f the Strmwater Utility Reprt, Municipal & Financial Services Grup (MFSG), the Village s cnsultant, analyzed expenses related t strmwater management activities and estimated that the Village wuld spend $815,202 n these expenses in the General Fund. With the creatin f the Strmwater Utility, all strmwater-related revenues and expenses will be included in the Strmwater Fund. Therefre, $815,202 f General Fund revenues (in the frm f prperty tax levy) and expenses will be remved frm the General Fund. Prvides revenue f $3.3 millin by charging a mnthly fee. Strmwater fees, which will be charged t all parcels in the Village, are expected t generate just ver $3.5 millin in grss revenue. The grss revenue frm the fees will be reduced by the granting f credits (nging reductins t strmwater fees) and incentives (ne-time reductin in the strmwater fee). The budget fr credits is $180,000, and the budget fr incentives is $20,000. Therefre, the net revenue frm the strmwater fees is budgeted t be just ver $3.3 millin (see page 4-21, line 7). Shifts $1.95 millin f Hme Rule Sales Tax revenue frm the Strmwater Fund t the Capital Fund. Prir t the creatin f the Strmwater Utility, the annual debt service payments n the 2008 Strmwater bnds were being made with revenues frm prperty taxes and Hme Rule Sales Taxes. These revenues were included in the Strmwater Fund. This prtin f the Hme Rule Sales Tax revenue is nw being used t make the debt service payments n the 2012 bnd issued fr the recnstructin f streets. Therefre, the Hme Rule Sales Tax revenue has been shifted ut f the Strmwater Fund and int the Capital Prjects Fund (see page 4-27, line 4). Changes the Strmwater Fund frm a capital fund t an enterprise fund. All strmwaterrelated revenues and expenses will be accunted fr in the Strmwater Fund. Thus, the fund will becme an enterprise fund like the Water Fund and Parking Fund. These changes will allw the Village t perate and maintain the strmwater system in a financially sustainable manner. The Adpted FY13 Budget includes $3.03 millin fr imprvements t the Village s strmwater infrastructure system (see pages 6-4 & 6-5, prgrams 343 & 347). 4

7 Widespread flding frm heavy rains in Octber f 2006 prmpted the Village t cmprehensively address deficiencies in the infrastructure and maintenance f the public strmwater system. In 2007 the Village cmpleted the Watershed Infrastructure Imprvement Plan (WIIP) prjects recmmended t primarily address drainage and strmwater issues within the public system. The cmpletin f these prjects will create additinal capacity within the system and imprve drainage as a whle. In 2008 the Village issued $25 millin in bnds with the prceeds earmarked fr high pririty strmwater imprvement prjects identified in the WIIP. T date, 13 f the high-pririty prjects have been cmpleted r are under cnstructin. In FY13 the Village plans t cntinue wrking n the remaining high-pririty prjects and the strmwater budget prvides apprximately $13 millin frm the prceeds f the 2008 bnd issue fr this cntinued investment (see page 4-21, line 2). REDUCTION OF THE PROPERTY TAX LEVY While the ttal municipal budget relies n a number f surces f revenue, the Prperty Tax Levy cntinues t be a fcus f judging the fiscal health f a cmmunity. Prperty taxes accunt fr abut 24.1% f the General Fund budget. The Village s prperty tax levy is cmprised f five cmpnents which supprt specific services prvided by the Village. Table 1 summarizes the adpted real estate tax levy fr FY13. Table 1 Village Prperty Tax Levy, FY12 & FY13 Levy Cmpnent FY12 FY13 Change Crprate Levy $3,812,347 $2,997,145 ($815,202) Fire Prtectin $2,850,000 $2,850, Fire Pensin $2,122,822 $2,244,196 $121,374 Plice Pensin $1,567,925 $1,943,836 $375,911 Capital (frmerly Strmwater) $2,630,139 $971,524 ($1,658,615) Ttal $12,983,233 $11,006,701 ($1,976,532) The ttal adpted Prperty Tax Levy declined by nearly $1.98 millin, cmpared t the FY12 levy - a reductin f 15.2%. The reductin is due t the shift in funding fr the Strmwater Fund frm primarily prperty taxes t strmwater fees. The levy fr all strmwater-related activities, including peratins, maintenance, capital prjects and debt service payments n the 2008 Strmwater bnds, has been remved frm the tax levy, reducing the levy by $2.47 millin (the cmbinatin f the reductins in the Crprate -$815,202- and Capital -$1,658,615- cmpnents f the tax bill). In 2012 the Village levied $2,630,139 fr strmwater-related expenses, including $511,565 fr maintenance expenses and ver $2.1 millin fr the annual debt service payment n the 2008 strmwater bnds. In 2013 the Village will nt levy fr strmwater-related expenses and will use revenues frm the strmwater fees instead. The capital cmpnent f the tax levy, $971,524, will be used t make the annual debt service payment n the 2012 bnd issuance (see page 4-27, lines 4 & 22). Prceeds frm the 2012 bnds are being used t recnstruct streets that have fallen int disrepair. The adpted levy fr plice and fire pensins will increase by $497,285, r 13.5%. Pursuant t state law, the Village is required t levy these amunts t make sure the pensin funds are funded accrding t minimum state requirements and per the results f actuarial studies. 5

8 Based n cnversatins with the Twnship Assessr s Office, the ttal Equalized Assessed Valuatin f all taxable prperty lcated within the Village limits is expected t decline by 7% frm $2.27 billin t $2.11 billin (additinal prperty valuatin and assesment prcess infrmatin). The applicatin f the Village s adpted levy t the ttal taxable value f prperty results in a decrease f the Village s tax rate frm.5787 in 2012 t an estimated.5215 in Because the ttal prperty tax levy will decline, the amunt paid by the wner f a typical residential prperty will als decrease. Table 2 belw shws hw the Village s levy wuld affect a residential prperty with a market value f $300,000 in The value f the prperty is expected t decline by 7% and wuld have a market value f $279,000 in In 2012 the example prperty paid $ t the Village. The same prperty in 2013 wuld pay $ ($94.21 less). Table 2 Village Tax Levy n a $300,000 Residential Prperty FY12 FY13 Difference Equalized Assessed Value $100,000 $93,000 ($7,000) Village Tax Rate ( ) Village Tax Amunt $ $ ($94.21) It is imprtant t nte that the Village prtin f the tax bill is generally abut 10% f the ttal tax bill. Understanding Yur Prperty Tax Bill Prperty tax bills are cmprised f many taxing bdies. The Village s prtin accunts fr nly abut 10% f the ttal tax bill. Click n tax bill presentatin t learn mre abut yur bill. BALANCED GENERAL FUND The General Fund is the main perating fund f the Village and includes the majrity f Village services. The General Fund Adpted Budget is balanced with revenues and expenses f $41.6 millin (see page 4-3, lines 15 and 25). The Adpted FY13 Budget is the furth annual budget prepared per the recmmendatins f the Lng Range Financial Plan (LRFP). In the past three years, significant changes t the Village s budget and peratins were made t address a substantial structural financial gap in the General Fund f up t $6.0 millin by Changes included reductins and eliminatins f Village services and prgrams; vluntary and invluntary staffing reductins; and revenue enhancements. Thrugh these changes, the structural gap in the General Fund was eliminated. In fact, during the past few years, the Village has reduced General Fund expenses by apprximately $5 millin. Because these apprpriate actins were taken, the Village is well psitined fr the FY13 Budget. 6

9 The LRFP includes a specific actin plan fr the 2013 General Fund Budget. The Adpted Budget is cnsistent with the recmmended actin plan belw. Lng Range Financial Plan Strategies fr the General Fund Increase Operating Efficiencies Reduce Persnnel Expenses Partner with Others Adjust Fees Regularly Enhance the Revenue Base Adjust the Tax Levy and Other Revenues as Needed Cnsistent with the abve plan, the FY13 Adpted Budget is balanced with revenues and expenses f $41.6 millin. The ending fund balance is budgeted t be $17.55 millin, r 42.2% f budgeted expenses, within the Village's fund balance plicy (see page 4-3, line 27). Table 3 General Fund Revenues and Expenses, FY07 t FY13 (in millins) Revenues Expenses Difference Fund Balance Fund Balance % f Expenses FY07 (Actual) $41.14 $42.72 ($1.58) $ % FY08 (Actual) $40.98 $42.25 ($1.27) $ % FY09 (Actual) $38.95 $39.28 ($0.33) $ % FY10 (Actual) $39.44 $39.20 $0.24 $ % FY11 (Actual) $41.86 $40.33 $1.52 $ % FY12 (Estimate) $41.71 $41.34 $0.37 $ % FY13 (Budget) $41.60 $ $ % General Fund Expenses (Table 4) As nted in Table 3 abve, General Fund expenses are budgeted at $41.6 millin. The Village is cmmitted t cst cntainment by implementing the recmmendatins f the LRFP n a daily basis. This is evident in the fact that the budgeted FY13 expenses are ver $1.1 millin less than 2007 actual expenses ($815,000 f this is due t the shift f expenses t the Strmwater Fund. FY13 expenses wuld be $275,000 less than FY07 expenses if expenses were nt shifted t the Strmwater Fund.) Table 4 General Fund Expenses by Categry, FY12 and FY13 Categry FY12 Budget FY13 Budget Change % Change Persnnel $31,727,371 $32,706,054 $978, % Nn-Persnnel $9,621,653 $8,924,824 ($696,829) (7.2%) Ttal $41,349,024 $41,630,878 $281, % Persnnel expenses including salaries, health benefits and pst emplyment benefits, such as pensins, accunt fr ver 78% f General Fund expenses (see page4-3, line 17). These expenses, which are budgeted t increase by 3.1%, have been cntrlled using a number f appraches. Fr example, the cntracts with the Public Wrks Department and Fire Department cllective bargaining units apprved in 2012 have lcked in mdest wage increases fr 2013 (2% and 1% respectively). In additin, the Village has changed the way planned time ff fr firefighters is scheduled. This change reduced vertime expenses by apprximately $110,000 per year. 7

10 Nn-persnnel expenses are budgeted t decrease by nearly $700,000 r 7.2% (see page 4-3, lines 18-23). This decline is due primarily t the shift f apprximately $400,000 f nn-persnnel strmwater related expenses t the Strmwater Fund. The remaining decrease f apprximately $300,000 is due t the Village s nging cmmittment t expense reductin by implementing Lean cncepts. As an example, the Adpted FY13 Budget reflects significant cst savings frm changes in Fire Department respnses that were implemented in In February the Fire Department revised its guidelines t reduce the number f vehicles that respnd t certain calls fr service (activated fire alarms nt accmpanied by a call r ther signs f smke r fire). The change was made t reduce the number f vehicles respnding t calls while sending nly the vehicles likely t be used. With this change, the Village is nw sending ne engine t respnd t certain activated fire alarm calls. Under the previus respnse guidelines, the Village was sending five Village vehicles and a mutual aid vehicle t these calls. The change is designed t reduce fuel expenses, reduce vehicle maintenance expenses, extend the life f the vehicles, and reduce the number f mutual aid respnses frm ther fire departments. Hwever, the respnse guidelines still ensure that the apprpriate number f vehicles will be ready t respnd in the case f a fire. General Fund Revenues Ttal General Fund revenue is budgeted t be $41.6 millin, an amunt equal t budgeted expenses and dwn slightly cmpared t The decline is due t the eliminatin f the prtin f the prperty tax levy used fr strmwater related expenses. There are a variety f revenue surces that supprt the General Fund. Table 5 Tp Ten General Fund Revenue Surces Surce FY10 Act FY11 Act FY12 Bud FY12 Est FY13 Bud 1 Sales Tax 10,308,322 10,311,333 10,800,000 10,600,000 10,850,000 2 Prperty Taxes- 6,246,186 6,720,950 6,662,347 6,662,347 5,847,145 Operatins 3 Utility Taxes 5,395,373 5,571,335 5,430,000 5,670,000 5,505,000 4 State Incme Tax 3,834,683 3,787,095 3,650,000 3,800,000 3,990,000 5 Prperty Taxes - 3,690,574 4,109,732 3,690,747 3,690,747 4,188,032 Pensins 6 Hme Rule Sales Tax ,936 1,950,000 1,900,000 1,950,000 7 Cellular Equip. Fees 986,835 1,057,074 1,092,000 1,103,105 1,148,813 8 Fines 721, , , , ,000 9 Building Related Permits 1,029,223 1,089, ,000 1,075, , Htel Tax 728, , , , ,000 Sub- 32,941,342 35,146,848 35,790,684 36,031,199 35,938,990 Ttal All Other 6,495,988 6,710,765 5,558,628 5,676,217 5,692,158 Ttal 39,437,330 41,857,613 41,349,312 41,707,416 41,631,148 8

11 In the past several years, many f the General Fund revenue surces have declined r remained flat. As discussed during the LRFP meetings, mst revenues are expected t grw slwly ver the next few years. Sales Tax, Utility Taxes, Hme Rule Sales Tax, State Incme Tax, Htel Tax, and Cellular Equipment lease revenues are budgeted t increase mdestly cmpared t the FY12 budget. Pursuant t LRFP recmmendatins, mst fees fr service will be increased by 3%. Staffing Plan The 2013 staffing plan includes a ttal f full-time equivalent (FTE) psitins, an increase f 3.10 FTE psitins frm the 2012 staffing plan (see page 7-2). Table 6 Staffing Plan, 2009 t The increase in staffing is due t the additin f the fllwing psitins: 0.5 FTE fr Strmwater Utility Administratin This 0.5 FTE psitin will assist in the administratin f the Strmwater Utility. This psitin will be respnsible fr updating the Gegraphical Infrmatin System (GIS) and assisting with billing administratin Seasnal Emplyees in Public Wrks Beginning in 2010, the Village did nt hire seasnal wrkers in the Public Wrks Department and Building Services Divisin. The wrk traditinally perfrmed by these seasnal emplyees was perfrmed by full-time Village emplyees during ver-time hurs. The eliminatin f the seasnal psitins was budget neutral as the expenses were shifted frm seasnal emplyee expenses t permanent emplyee expenses. In 2013 the Village will again hire seasnal emplyees in Public Wrks. Changes in the cllective bargaining agreement with Lcal 150 apprved by the Village Cuncil in 2012 allw the Village t hire seasnal emplyees. Just as the eliminatin f the seasnal psitins was budget neutral, the reinstatement f the seasnal emplyees will be budget neutral as the expenses will shift frm permanent emplyee expenses t seasnal emplyee expenses. Minr changes t the staffing plans in the Public Wrks Department and Fire Department accunt fr the remainder f the change in the staffing plan. CONTINUED INFRASTRUCTURE INVESTMENT Sustainable funding fr the Village s infrastructure systems was the primary fcus f the recent LRFP meetings. The Adpted FY13 Budget prvides funding f $27.24 millin fr cntinued investment in the Village s infrastructure, including strmwater (discussed in the Strmwater Utility sectin f the budget message), streets, sidewalks, and water system (see pages 6-4 & 6-5). Streets The FY13 Budget calls fr a $14.2 millin investment in the Village s street system (see page 6-4, prgram 342). A ttal f $5.7 millin dllars is budgeted t maintain Village streets and $7.8 millin is budgeted fr street recnstructin. In 2010 the Village cmpleted an assessment f the cnditin f the streets, ranking street segments in seven categries ranging frm Gd t Failed. The assessment revealed that apprximately 36% f the street segments (569 segments) in the Village are in Pr t Failed cnditin. Street segments in these cnditins typically require recnstructin t be restred t Gd cnditin. Street segments that 9

12 are in Gd t Fair cnditin require regular maintenance activities such as resurfacing and crack sealing t be maintained t these cnditins. The cst f maintaining streets t these cnditins is significantly less than recnstructing streets that have fallen int Pr t Failed cnditin. Generally speaking, the cst f recnstructing a street csts fur times as much as maintaining a street. In 2011 the Village resurfaced 44 street segments, and in 2012 the Village resurfaced 39 street segments. Cnsistent with the Village s practice in recent years, the $5.7 millin will be used t maintain street segments that are in Fair cnditin in an effrt t prevent them frm falling int a state that requires the street t be recnstructed. If funding is available after the street maintenance cntracts have been cmpleted, the Village will patch prtins f streets that are in Pr t Failed cnditin. In 2012 the Village issued $25 millin in bnds t recnstruct streets in nine neighbrhds that had fallen int disrepair (rated Pr r Failed). Since the bnd issuance, the Village has spent ver $8.5 millin f the prceeds and has recnstructed the streets in the Knttingham and Valley View subdivisins, as well as Grve Street. The FY13 Budget calls fr the Village t spend $7.4 millin f the bnd prceeds t recnstruct streets in three neighbrhds; Cncrde Square Unit 2, Oak Grve Unit III, and Brkbank frm 59th t 60th Streets. Apprximately $400,000 is budgeted t design future recnstructin prjects fr Chase Rad, Maple Avenue and the Esterbrk Subdivisin. Sidewalks The FY13 Budget calls fr a $1.2 millin investment in the Village s sidewalk system and includes $950,000 fr the cnstructin f new sidewalks and ver $240,000 fr the maintenance f existing sidewalks (see page 6-4, prgram 341). This funding will allw the Village t cntinue t pursue the gal f cnstructing a sidewalk n at least ne side f every street in the Village. If the current funding fr new sidewalk cnstructin cntinues, the Village shuld cmplete the sidewalk matrix by Water System The FY13 Budget calls fr a $6.4 millin investment in the Village s water system (see page 6-5, prgram 394). The Village prvides clean, safe and reliable water service t residents and cmmercial establishments in and arund the Village. The water system serves a residential ppulatin f apprximately 50,000 with a service area that includes all areas within the Village limits and a limited area utside the Village. The primary surce f water supply fr the Village is frm the DuPage Water Cmmissin. The Water Cmmissin is supplied with water frm the City f Chicag, which draws water frm Lake Michigan. In 2010 the Village Cuncil apprved a Water Rate Study Reprt which recmmended changes in the water billing structure and a series f annual fee increases t pay fr the rising csts f perating and maintaining the water system. In 2011 the Village changed the water billing structure and rates pursuant t the plan. In 2012 the Village increased rates pursuant t the plan and t cver unanticipated increases in the cst f purchasing water frm the DuPage Water Cmmissin. The Village als issued $10.0 millin in bnds t cnstruct replacement watermains thrughut the system. The debt service payments n the bnd will be funded by the revenue frm water rates. The FY13 Budget reflects the recmmended increase in water rates. Revenues frm the sale f water are budgeted t be $13.1 millin, up frm the FY12 estimated revenues f $11.5 millin (see page 4-23, line 7). 10

13 RISKS TO THE ADOPTED BUDGET The biggest risk t the Adpted FY13 budget is the ptential t receive less revenue in the General Fund than is budgeted. While the adpted revenue budget is cnservative, there is a chance that ecnmic cnditins culd wrsen, driving revenues lwer than budgeted. Further, the state f Illinis may reduce the distributin f state shared revenues such as incme tax t municipalities. Staff will mnitr and reprt revenue perfrmance t the Village Cuncil thrughut If revenues fall shrt f the budget, the Village shuld be ready t discuss amendments t the budget at any time during The amendments, if necessary, culd include further expense reductin effrts, strategic use f reserves and additinal revenue enhancements. CONCLUSION The Adpted FY13 Budget is attached. It is prepared pursuant t the recmmendatins f the Lng Range Financial Plan and furthers the Strategic Plan gal f Steward f Financial Sustainability The key cmpnents f the budget include: Implementatin f the Strmwater Utility A $1.98 millin reductin f the prperty tax levy the secnd reductin in as many years A balanced General Fund with revenues and expenses f $41.6 millin Cntinued investment in needed infrastructure imprvements in a sustainable manner: $27.24 millin ttal investment in infrastructure $14.23 millin investment in the street system $6.37 millin investment in the water system $2.68 millin investment in the strmwater system $1.24 millin investement in the sidewalk system 11