Review of Budget Timeline

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1 Highlights

2 Review of Budget Timeline May/June Budgets developed in detail with explanation & justification for each line item June/July Budgets reviewed by Finance Advisory Group for reasonableness & consistency July Budgets reviewed by standing committees August Budgets fine tuned and reviewed again by standing committees September 30 Final budget presented to COW October 14 Budget approved for public display October 23 Budget placed on public display November 10 Budget adopted & tax levies approved

3 Highlights

4 Overall Budget Kane County Draft Budget Amended Budget Total $ Change in Budget Total % Change in Budget 2015 Budget Category Draft Budget General Fund 80,917,307 83,191,630 2,274, % Special Revenue Funds 180,153, ,819,310 (5,334,066) -3.0% Total County Budget 261,070, ,010,940 (3,059,743) -1.2%

5 Guiding Principals for Revenue No property tax increase: Maintain total County property tax levy at same level for 3 rd year in a row Assume recommended user fee increases will be approved for offices of County Clerk, Recorder and Sheriff, thereby increasing user fee revenue to more adequately recover cost of services provided Maximize return on investment without risking principal Estimate revenue conservatively

6 No Property Tax Levy Increase Property Tax Levies for County Fund Fund Name 2011 Budget 2012 Budget 2013 Budget 2014 Budget 2015 Budget 000 General Fund 31,730,000 31,863,147 31,470,802 33,012,567 33,012, Insurance Liability 3,109,343 3,740,764 3,303,036 2,982,462 2,982, Illinois Municipal Retirement 5,888,750 6,265,000 7,072,882 6,796,568 6,796, FICA/Social Security 3,218,000 3,315,000 3,382,434 3,433,332 3,433, County Highway 5,010,909 5,010,909 5,010,909 5,010,909 5,010, County Bridge 312, , , , , County Highway Matching 65,125 65,125 65,125 65,125 65, County Health 1,972,455 1,972,455 1,972,455 1,972,455 1,972, Veterans' Commission 304, , , , , Capital Debt Service 2,515,938 1,002, , Total County Property Tax Levy 54,128,120 53,852,000 53,891,513 53,891,513 53,891,513 Change Over Prior Year 3.5% -0.5% 0.1% 0.0% 0.0%

7 Additional Revenue from Recommended User Fee Increase Additional Revenue Recommended General Fund Impact by Office County Clerk 242,000 Sheriff 136,720 Adult Corrections 9,000 Recorder 325,000 Total General Fund Impact 712,720 Special Fund Impact County Clerk Vital Records Automation Fun 32,000 Graphic Information System Fund 195,000 Recorder's Automation Fund 455,000 Total Special Fund Impact 682,000

8 Overall Debt Service No new debt Debt reduced by $13,720,000 Outstanding Debt BOY $61,325,000 Principal Payments $13,720,000 Outstanding Debt EOY $47,605,000 Interest on debt reduced by $458,655

9 Overall Debt Service (Cont.) Meets County debt service requirements according to preestablished debt service schedules Includes $2,454,052 transfer from General Fund of Income Tax Revenue pledged to service 2013 Bond Issue Includes $805,998 transfer from Grand Victoria Casino Fund to service portion of 2013 Series Bond that refinanced JJC Series 2002 Bonds Includes $3,499,000 transfer from Motor Fuel Tax Fund to service Series 2004 Bonds Includes $891,234 of reimbursements to service Recovery Zone Bond payments Includes $8,329,011 draw down of cash-on-hand of RTA Sales Tax Debt Service Fund for final payment of Series 2009B Bonds

10 Overall Salary & Wage Budget New headcount limited to personnel required to maintain level of services and comply with mandated staffing levels No pay increase for elected officials No budgeted wage increases for union employees for which there is no collective bargaining agreement in place Wage increases budgeted for union employees according to collective bargaining agreements Increase salary & wage budget for non-union employees by 2%, allowing manager discretion in how it will be allocated 2 nd Half of market parity increase included for Judiciary & Court Services totaling $88,723

11 Additional Headcount Included Fund Department Position Salary Benefits Total Salary & Benefits General Fund Auditor Admin Assistant - part time 21,840 11,406 33,246 General Fund Public Defender Receptionist 28,400 25,338 53,738 General Fund Court Services Youth Counselor - mandated 41,110 14,811 55,921 General Fund Court Services Youth Counselor - mandated 41,110 14,811 55,921 General Fund Court Services Youth Counselor - mandated 41,110 14,811 55,921 General Fund Court Services Youth Counselor - mandated 41,110 14,811 55,921 General Fund Court Services Adult Redeploy Intiative - grant funded 40,248 19,985 60,233 General Fund Court Services Adult Redeploy Intiative - grant funded 40,248 14,616 54,864 General Fund Court Services Adult Redeploy Intiative - grant funded 40,248 9,116 49,364 General Fund Court Services Adult Redeploy Intiative - grant funded 45,000 29,098 74,098 Subtotal General Fund 380, , ,228 Insurance Liability State's Attorney Assistant State's Attorney - Civil Division 63,000 33,175 96,175 Total 443, , ,403

12 Overall Health & Dental Budget Maintain County s self insured health insurance status Seek lowest cost of medical & dental insurance while maintaining comparable benefits Increase County health insurance contribution by 6.2%, the lowest negotiated rate for current BCBS plan Decrease County dental insurance contribution by 8% assuming County will adopt Guardian as new dental insurance provider Assume separate wellness benefit expense will be eliminated by utilizing BCBS wellness program

13 Overall IMRF Budget No increase to property tax levy Since we currently have a reserve of 1 year s worth of payments and only need a reserve of 7 months, utilize 10% of excess reserve to cover increased cost of IMRF resulting from salary and wage increase - $289,011 Honor County s commitment to lowering unfunded pension liability by maintaining higher than required contribution rates: Maintain IMRF contribution rate at 11.19%, even though required contribution rate is 10.24% Maintain County SLEP contribution rate at 21.30%, even though required contribution rate is 20.30%

14 Draw Down 10% of Excess Reserve 7,000,000 IMRF Fund Balance 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 Beg Year Balance 7 month's Expense 1,000,

15 Overall FICA Budget No increase to property tax levy Since we currently have a reserve of 1 year s worth of payments and only need a reserve of 7 months, utilize 10% of excess reserve to cover increased cost of FICA resulting from salary and wage increase - $165,069

16 Draw Down 10% of Excess Reserve FICA Fund Balance 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, , Beg Year Balance 7 month's Expense

17 Highlights

18 General Fund Revenue Revenue Type 2014 Amended Budget 2015 Draft Budget Change in Budget Explanation Property Tax 33,012,567 33,012,567 - Flat Back Taxes Interest & Penalty 1,600,000 1,600,000 - Flat Sales Tax 13,213,000 14,215,000 1,002,000 Increased to 104% of 2012 level Income Tax 4,950,000 5,620, ,000 Increased to 104% of 2012 level Local Use Tax 917, ,000 51,000 Increased to 104% of 2012 level Personal Property Replacement Tax 1,443,000 1,702, ,000 Per IDOR forecast Estate Tax 125, ,000 - Flat Reduction in volume offset by user fee User Fees 13,816,826 13,649,045 (167,781) increases Licenses 153, ,000 29,500 Increase in Marriage & Liquor License revenue Primarily US Marshal Board & Care and Reimbursements 6,945,722 7,817, ,445 Probation Salary Reimbursements Fines 1,544,200 1,561,375 17,175 Increase in State's Attorney & Eviction Fines offset by decrease in Bond Forfeiture Fines Grants 841, ,000 No Help America Vote Act, IL Voter Registration (242,613) or external Community Outreach grants Permits 462, ,000 5,000 Increase in Gathering Permits Investment Income 125, , ,000 Increased return on investment Rental Income 76,214 64,358 (11,856) Elimination of WIA office rent Transfer From Other Funds 1,569,822 1,282,077 $300,000 less transferred from Special Reserve offset by increase transfer to IT from Kane (287,745) Comm Miscellaneous Income 121,643 80,841 (40,802) Total Revenue by Type 80,917,307 83,191,630 2,274,323

19 General Fund Expenditures 2014 Amended Budget Change in Cost of Payroll Change In Scheduled Debt Service Payments & Transfers Change in Cost of Health & Dental Insurance One Less Election Budgeted Total Change in Budget 2015 Draft Budget Change in Department Other Costs 010 County Board 1,317,246 19,547 0 (298) (64,550) 0 (45,301) 1,271, Finance 759,480 10, , , , Information Technologies 3,495,255 28, ,403 28, ,335 3,557, Building Management 4,514,622 91, , , ,088 4,821, Human Resource Management 414,210 6,688 0 (10,288) (1,179) 0 (4,779) 409, County Auditor 247,157 19, ,185 53, , , Treasurer/Collector 574,375 9, , , , Supervisor of Assessments 1,212,325 16, ,009 53, ,525 1,309, County Clerk 2,880,111 48, ,173 20,665 (551,598) (460,896) 2,419, Recorder 871,660 13, , , , Regional Office of Education 304, , , , Judiciary and Courts 2,712, ,629 0 (29,100) 28, ,229 2,814, Circuit Clerk 4,327,959 (11,083) 0 65,462 5, ,333 4,388, State's Attorney 5,010,191 76,681 0 (98,377) (18,320) 0 (40,016) 4,970, Public Defender 3,362,270 82, , ,255 3,537, Sheriff 26,187, ,944 0 (13,217) (128,354) 0 176,373 26,363, Merit Commission 96,106 1, , , , Court Services 10,983, , ,408 (319,475) 0 422,756 11,406, Coroner 835,542 4, , , , Emergency Management Services 191,572 3, , , , Development 1,550,778 (11,361) 0 (20,771) (18,950) 0 (51,082) 1,499, Debt Service 1,466,816 0 (439,359) (439,359) 1,027, Other- Countywide Expenses 6,820,773 (2,201) 1,129,650 48,478 (143,709) 280,000 1,312,218 8,132, Contingency 780, , ,559 1,184,446 Grand Total 80,917,307 1,383, , , ,259 (271,598) 2,274,323 83,191,630 % Change in Relation to 2014 Budget 2.9% 19.2% 4.1% 0.6% -24.8% 2.8%

20 General Fund Salary & Wage Budget Notes Total Salary & Wage Increase 1,383,847 Less increase for additional headcount (380,424) Less parity increase (88,723) Increase due to collective bargaining agreements for union employees and 2% increase for non-union employees, excluding elected officials. No increase has been budgeted for unions for which there is no settled CBA contract (Adult Corrections, Coroner, etc ) Average increase excluding additional headcount and parity increase 914, %

21 General Fund Health & Dental Budget Notes Total Health & Dental Increase 360,524 Less increase for additional headcount (82,638) Increase due to difference in rates budgeted each year as well as change in coverage chosen by employees 277,886 Average increase 3.1%

22 General Fund Other Expenditures Department Change in Budget Explanation 010 County Board (64,550) Reduction to Community Outreach program 040 Finance 0 Flat 060 Information Technologies 28,267 Increase to conference & training 080 Building Management 204,554 Increase to natural gas, water, sewer, janitorial service & maintenance 120 Human Resource Mngmt (1,179) Reduction to employee training 140 County Auditor 53,840 Transition audit of Sheriff's Office and Vulnerability & Penetration Test of IT 150 Treasurer/Collector 0 Flat 170 Supervisor of Assessments 53,507 Publication by Supervisor of Assessments of all parcels is required in County Clerk 20,665 "Vote Mobile" repairs, Laserfiche training, repairs to computer equipment 210 Recorder 0 Flat 230 Regional Office of Education 0 Flat 240 Judiciary and Courts 28,700 Increase to Spanish language interpreters & pyschological/psychiatric services 250 Circuit Clerk 5,954 Supervisor management training & publication service notices 300 State's Attorney (18,320) Reduction in witness costs and training 360 Public Defender 0 Flat 380 Sheriff (128,354) Reduction to prisoner board & care, medical/dental/hospital services, repairs 420 Merit Commission 3,750 Background checks is new expense 430 Court Services (319,475) Reduction to electronic/gps monitoring, juvenile board & care, grant expense 490 Coroner 0 Flat 510 Emergency Management 3,000 Employee training is new expense 690 Development (18,950) Reduction to project administration services and repairs & maintenance 800 Other-Countywide Expenses (143,709) Transfers to IMRF/FICA for collective bargaining agreements in 2014, not Contingency 403,559 Restored to 1.4% of budget (original 2014 level + $59,466 = $1,184,446) Grand Total 111,259

23 Highlights

24 Special Revenue Fund Sources of Revenue Consist of: Revenue currently collected for specific purpose Cash on Hand representing accumulation of past revenue collections for a specific purpose Investment Income earned on cash on hand Since revenue is normally collected in advance to fund Special Revenue Fund expenditures, Cash on Hand becomes a normal source of funding for Special Revenue Funds See following chart indicating use of Cash on Hand

25 Projected Cash Balances FY13 Actual EOY Cash Balance FY14 Projected Change in Cash Balance FY14 Projected EOY Cash Balance FY15 Budgeted Change in Cash Balance FY15 Budgeted EOY Cash Balance General Operating Reserves General Operating 63,344, ,773 63,938,747 18,494 63,957,241 IMRF 8,087,010 (1,495,000) 6,592,010 (289,011) 6,302,999 FICA 3,863,270-3,863,270 (165,069) 3,698,201 Health Insurance - 1,600,000 1,600, ,731 1,728,731 Total General Operating Reserves 75,295, ,773 75,994,027 (306,855) 75,687,172 Special Purpose Funds Special Revenue Funds 21,827,524 (1,928,623) 19,898,901 (2,503,298) 17,395,603 Grand Victoria Casino 12,512,201 (2,325,984) 10,186,216 (2,195,105) 7,991,111 Judicial Technology (CMS) 4,915,195 (372,267) 4,542,929 (3,770,850) 772,079 Farmland Preservation 2,080,797 (124,100) 1,956,697 (814,500) 1,142,197 Capital Funds 12,260,736 (3,748,008) 8,512,728 (5,742,301) 2,770,427 KDOT 76,265,339 (32,571,729) 43,693,610 (26,524,034) 17,169,576 Impact Fees 10,334,700 (1,502,098) 8,832,602 (1,201,875) 7,630,727 SSA / SBA 1,065,208-1,065,208 (117,558) 947,650 Debt Service Funds 17,153,606 (1,215,160) 15,938,446 (8,303,370) 7,635,076 Enterprise Funds 15,815,120 (2,290,849) 13,524,272 (2,054,551) 11,469,721 Total Special Purpose Funds 174,230,426 (46,078,818) 128,151,608 (53,227,442) 74,924,166 Total Projected Cash Balances 249,525,680 (45,380,045) 204,145,635 (53,534,297) 150,611,338

26 Supporting Documents Quick Reference Guide for Special Revenue Fund Budget indicating key points for each fund Projected Fiscal Year End Cash Balances for each fund Schedule of Recommended User Fee Increases detailing which user fees will change in which office: the current fee, how much it will increase, the new fee, and the additional revenue generated by fund Mandate Book detailing the mandated functions of each County office and department Kane County 2015 Draft Budget Report

27 Next Steps Budget to be approved to be placed on public display at October County Board meeting Resolutions establishing new user fees will be submitted by the County Clerk, Recorder & Sheriff at their respective standing committees A resolution clarifying that the 2% non-union salary increase included in the 2015 budget does apply to executive directors and the Supervisor of Assessments will be submitted at the next Finance Committee

28 To Be Approved at November County Board Meeting: Ordinance adopting 2015 budget Tax Levies Resolutions increasing user fees for County Clerk s Office, Recorder s Office & GIS, and Sheriff s Office Resolution clarifying increase for executive directors and Supervisor of Assessments

29 Ongoing Pursuit of Revenue Enhancements Encourage passage of Illinois State Statute allowing Court Security user fee to be based on cost of service study (potential of additional $640,00 in revenue) Consider Sheriff s proposal for new burglar alarm fees Negotiate new room & board rates for other counties use of Juvenile Justice Center based cost of service Perform cost-of-service study for permits and consider increasing permit fees Negotiate chargeback of operating costs to Regional Office of Education (potential recovery of $70,000)

30 Ongoing Pursuit of Cost Saving Opportunities for Healthcare Consider implementation of: High Deductible PPO with Healthcare Savings Account Pharmacy Utilization Management Program Encourage/Promote utilization of: Wellness Program Generic drugs Mail order pharmacy for maintenance medication New BCBS Benefit Value Advisor New BCBS Blue Choice PPO network (coming 2015)

31 Acknowledgements Leadership of County Chairman and Board members Collaborative effort by elected officials, department heads and their staff in trimming expenditures and enhancing revenues to generate a balanced budget Hard work and dedication of Finance Department staff in assembling the thousands of details included in the budget and providing the necessary analysis Citizens of Kane County for whom we strive to be good stewards of the resources they provide through this open & transparent budget process.

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