EVANSTON. FY 2017 Proposed Budget Presentation. Martin Lyons, Assistant City Manger / CFO Lara Biggs, City Engineer.

Transcription

1 EVANSTON FY 2017 Proposed Budget Presentation Martin Lyons, Assistant City Manger / CFO Lara Biggs, City Engineer October 24, 2016 Administrative Services 1

2 FY 2017 BUDGET PRESENTATION-- October 17, FY 2017 Budget Overview 2. Challenges 3. Opportunities 4. FY 2016 Budget Status 5. Library Budget Today, October 24, Capital 2. TIFs 3. Debt 4. Pensions October 29 Public Hearing, 9am Administrative Services 2

3 FY 2017 BUDGET PRESENTATION-- October 24, Capital 2. TIFs 3. Debt 4. Pensions Administrative Services 3

4 STREET RESURFACING, WATER MAIN AND SEWER MAJOR PROJECTS Project Year Total Funding Sheridan Road/Chicago Avenue $9,440,000 $4,930,840 $14,370,840 Various Main Street, Maple to Hinman $150,000 $400,000 $4,455,000 $5,005,000 GO Bond, TIF Main Street Commons Corridor $175,000 $1,500,000 $1,675,000 GO Bond Howard Street Corridor, Dodge to Custer $300,000 $275,000 $3,400,000 $3,975,000 GO Bond, STP Chicago Ave Corridor Impr, Howard to Main $50,000 $2,050,000 GO Bond, Apply for Funding Sheridan Road/Chicago Avenue Upgrade of Sheridan Road/Chicago Avenue including resurfacing, bike and pedestrian infrastructure improvements and traffic signal upgrades Main Street, Maple to Hinman Includes streetscape and other roadway improvements along this corridor. In 2017, work will include Phase I Engineering, including investigation into vaulted sidewalks along Main Street Administrative Services 4

5 STREET RESURFACING, WATER MAIN AND SEWER MAJOR PROJECTS Project Year Total Funding Sheridan Road/Chicago Avenue $9,440,000 $4,930,840 $14,370,840 Various Main Street, Maple to Hinman $150,000 $400,000 $4,455,000 $5,005,000 GO Bond, TIF Main Street Commons Corridor $175,000 $1,500,000 $1,675,000 GO Bond Howard Street Corridor, Dodge to Custer $300,000 $275,000 $3,400,000 $3,975,000 GO Bond, STP Chicago Ave Corridor Impr, Howard to Main $50,000 $2,050,000 GO Bond, Apply for Funding Main Street Commons Corridor Installation of new traffic signals and other intersection/ streetscape improvements at entrance to Main Commons Shopping Center. Includes corridor study from city limits to Dodge Avenue Howard Street Corridor, Dodge to Custer Installation of new streetscape and other roadway improvements along this corridor. The City has received an STP grant for construction only which requires a 30% match Chicago Avenue Corridor Improvements Installation of a new streetscape, bike lanes and other roadway improvements along this corridor. In 2017, completing Phase I design in order to apply for outside grant funding for construction Administrative Services 5

6 STREET RESURFACING, WATER MAIN AND SEWER ANNUAL PROJECTS Project Year Total Funding Street Resurfacing - MFT $1,391,000 $1,100,000 $1,100,000 $5,791,000 MFT Water Main & Street Resurf $3,330,000 $3,700,000 $3,810,000 $18,800,000 Water Fund WM - 30" Downtown Feeder Rehab $400,000 $6,820,000 $7,220,000 IEPA Loan WM - Lining Small Dia Mains on Private Easement $1,300,000 $1,300,000 IEPA Loan Sewer - CIPP Rehabilitation $650,000 $450,000 $700,000 $3,275,000 Sewer Fund Street Resurfacing MFT Funding from the Motor Fuel Tax Fund used to pay for the annual resurfacing on City streets Water Main/Street Resurfacing Funding from the Water Fund to rehabilitate 1.5 miles/year of water main (1% of system). Water main replacement is coordinated with street resurfacing needs Administrative Services 6

7 STREET RESURFACING, WATER MAIN AND SEWER ANNUAL PROJECTS Project Year Total Funding Street Resurfacing - MFT $1,391,000 $1,100,000 $1,100,000 $5,791,000 MFT Water Main & Street Resurf $3,330,000 $3,700,000 $3,810,000 $18,800,000 Water Fund WM - 30" Downtown Feeder Rehab $400,000 $6,820,000 $7,220,000 IEPA Loan WM - Lining Small Dia Mains on Private Easement $1,300,000 $1,300,000 IEPA Loan Sewer - CIPP Rehabilitation $650,000 $450,000 $700,000 $3,275,000 Sewer Fund 30-inch Downtown Feeder Main Rehabilitation Replace the 30 transmission main providing water to the downtown area Lining Small Diameter Water Main on Private Easements Rehabilitate 2,000 feet of water main in hard to maintain locations Sewer CIPP Rehabilitation Utilizing Cured-In-Place-Pipe lining method to rehabilitate sewer main. Sewer rehabilitation is generally coordinated with street resurfacing needs Administrative Services 7

8 CIP STREETS & WATER MAINS Administrative Services 8

9 OTHER TRANSPORTATION MAJOR PROJECTS Project Year Total Funding Central Street Bridge $360,000 $400,000 $6,100,000 $6,860,000 GO Bond, Grant Traffic Signals - Emerson PUD, $150,000 $1,250,000 Apply for Funding Alley Paving $816,000 $500,000 $550,000 $3,116,000 GO Bond, CDBG Street Patching Program $600,000 $600,000 $700,000 $3,400,000 GO Bond Parking Lot Improvements $1,900,000 $1,000,000 $560,000 $4,610,000 Parking Fund, GO Bond Central Street Bridge Renovate/replace the bridge on Central Street over the North Shore Channel Traffic Signals In 2017, begin design on traffic signal replacements using funding from private development. Apply for CMAQ funding for construction Alley Paving Alley improvement generally completed as a 50/50 cost share with the residents. No petitions are currently being issued as backlog of approved alley petitions will take until 2021 to complete Administrative Services 9

10 OTHER TRANSPORTATION MAJOR PROJECTS Project Year Total Funding Central Street Bridge $360,000 $400,000 $6,100,000 $6,860,000 GO Bond, Grant Traffic Signals - Emerson PUD, $150,000 $1,250,000 Apply for Funding Alley Paving $816,000 $500,000 $550,000 $3,116,000 GO Bond, CDBG Street Patching Program $600,000 $600,000 $700,000 $3,400,000 GO Bond Parking Lot Improvements $1,900,000 $1,000,000 $560,000 $4,610,000 Parking Fund, GO Bond Street Patching Program Program to complete patching on approximately 22,000 sq ft of roadway annually in order to extend the life between full resurfacing projects Parking Lot Improvements Rehabilitate 5 lots in 2017, including Levy Center Lot Administrative Services 10

11 CIP PARKING LOT AND ALLEY PROJECTS Administrative Services 11

12 PARKS MAJOR PROJECTS Project Total Funding Fountain Square Renovations $4,920,000 $4,920,000 TIF James Park - North Fields Renovations $1,000,000 $1,000,000 GO Bond Fountain Square Renovation Rehabilitate Fountain Square as a new shared street and festival space in the heart of the downtown, including a new fountain and veteran s memorial James Park North Fields Renovation As part of a new long-term initiative to address athletic fields, rehabilitate the north section of James Park with a new baseball diamond and soccer field. This will make space to allow future reconfiguration of other areas of James Park Advanced Waste Settlement Following further discussion with the community, additional project(s) may be added to improve parks and greenspace Administrative Services 12

13 FACILITIES MAJOR PROJECTS Project Total Funding Crown Center $1,500,000 $28,500,000 $30,000,000 GO Bond Fleetwood - HVAC & Electrical Impr $1,700,000 $1,700,000 GO Bond Howard Street Theater $1,000,000 $1,000,000 TIF Crown Center Build new Crown Center and rehabilitate the surrounding park area Fleetwood Jourdain HVAC & Electrical Improvements Replace existing boiler system with new zoned HVAC. Replace and reconfigure electrical system Howard Street Theater Working with a partner theater group, renovate 721 Howard Street into a new theater space Administrative Services 13

14 WATER TREATMENT, STORAGE AND BILLING MAJOR PROJECTS Project Total Funding Retail Water Meter Replacement Program $1,220,000 $2,420,000 Water Fund WTP Reliability Improvements $1,100,000 $1,100,000 IEPA Loan Treated Water Storage Replacement $3,920,000 $12,200,000 $4,000,000 $20,120,000 IEPA Loan Retail Water Meter Replacement Program Replace approximately 11,000 residential and commercial water meters to improve accuracy of water billing Water Treatment Plant Reliability Improvements Rehabilitation of various items at the water treatment plant in order to remove bottlenecks in flow and make needed repairs on various valves and other equipment Treated Water Storage Replacement Replacement of a 5.0 million gallon water storage tank located adjacent to the water treatment plant Administrative Services 14

15 FY 2017 CAPITAL PLAN- SUMMARY FY 2016 GO Bond FY 2017 GO Bond Water Fund Sewer Fund IEPA Loan MFT Fund Street Resurfacing, Water Main, Sewer Projects $ 150,000 $ 3,990,000 $ 3,750,000 $ 1,470,000 $ 2,300,000 $ 1,391,000 Other Transportation $ 1,964,938 $ 2,265,000 $ 1,562,819 $ 1,021,000 $ - $ - Parks $ 310,000 $ 1,520,000 $ - $ - $ - $ - Facilities $ 1,929,000 $ 3,820,000 $ - $ 200,000 $ - $ - Miscellaneous $ 325,000 $ 700,000 $ - $ - $ - $ - Library $ - $ - $ - $ - $ - $ - Water Treatment, Storage and Billing $ - $ - $ 2,590,000 $ - $ 5,190,000 $ - TOTAL 2017 CIP $ 4,678,938 $ 12,295,000 $ 7,902,819 $ 2,691,000 $ 7,490,000 $ 1,391,000 SUMMARY Other Federal Funds/ Parking Funds Reserves TIF Funding Fund TOTAL Street Resurfacing, Water Main, Sewer Projects $ 2,130,000 $ 3,200,000 $ 750,000 $ 550,000 $ 19,681,000 Other Transportation $ 280,000 $ 804,474 $ - $ 1,300,000 $ 9,198,231 Parks $ - $ - $ 4,920,000 $ - $ 6,750,000 Facilities $ - $ 335,000 $ 1,000,000 $ 620,000 $ 7,904,000 Miscellaneous $ - $ 325,000 $ - $ 300,000 $ 1,650,000 Library $ - $ 3,924,500 $ - $ 250,000 $ 4,174,500 Water Treatment, Storage and Billing $ - $ - $ - $ - $ 7,780,000 TOTAL 2017 CIP $ 2,410,000 $ 8,588,974 $ 6,670,000 $ 3,020,000 $ 57,137,731 Administrative Services 15

16 5 YEAR CAPITAL PLAN SUMMARY- SUMMARY FY 2017 Proposed FY 2018 Projected FY 2019 Projected FY 2020 Projected FY 2021 Projected 5-YEAR TOTAL Street Resurfacing, Water Main, Sewer Projects $ 19,681,000 $ 22,595,840 $ 15,315,000 $ 11,620,000 $ 12,435,000 $ 81,646,840 Other Transportation $ 9,198,231 $ 4,080,000 $ 10,220,000 $ 3,005,000 $ 3,140,000 $ 29,643,231 Parks $ 6,750,000 $ 4,570,000 $ 2,925,000 $ 3,900,000 $ 2,780,000 $ 20,925,000 Facilities $ 7,904,000 $ 37,930,000 $ 7,550,000 $ 5,810,000 $ 6,815,000 $ 66,009,000 Miscellaneous $ 1,650,000 $ 200,000 $ 225,000 $ 225,000 $ 225,000 $ 2,525,000 Library $ 4,174,500 $ 5,500,000 $ - $ - $ - $ 9,674,500 Water Treatment, Storage and Billing $ 7,780,000 $ 13,425,000 $ 7,300,000 $ 3,150,000 $ 16,575,000 $ 48,230,000 TOTAL CIP $ 57,137,731 $ 88,300,840 $ 43,535,000 $ 27,710,000 $ 41,970,000 $ 258,653,571 Administrative Services 16

17 FY 2017 BUDGET PRESENTATION-- October 24, Capital 2. TIFs 3. Debt 4. Pensions Administrative Services 17

18 FY 2017 TIF -- WASHINGTON-NATIONAL Administrative Services 18

19 FY 2017 TIF -- WASHINGTON-NATIONAL TIF will expire at the end of 2018 Interfund transfers: $350,000 to General Fund $5,470,000 to Capital Fund $180,000 for Fountain Square Engineering $4,740,000 for Fountain Square Construction $550,000 for Sheridan Road/Chicago Avenue, Grove to Isabella $4,120,636 to Parking Fund CTA Purple Line project Administrative Services 19

20 FY 2017 TIF HOWARD-HARTREY Operating Revenue FY 2015 Actual Amount FY 2016 Amended Budget FY 2016 Year End Estimated FY 2017 Proposed Budget Property Taxes 1,248,231 1,300,000 1,300,700 - Other Revenue 1,986 2, Total Revenue $ 1,250,217 $ 1,302,000 $ 1,300,700 $ - Operating Expenses Services and Supplies 1, Miscellaneous 2,162, , ,000 - Capital Outlay 11, Interfund Transfers 148,010 1,752,450 1,852, ,865 Total Expenses $ 2,322,950 $ 1,952,450 $ 2,067,950 $ 513,865 Net Surplus (Deficit) $ (1,072,733) $ (650,450) $ (767,250) $ (513,865) Beginning Fund Balance $ 2,353,848 $ 1,281,115 $ 513,865 Ending Fund Balance $ 1,281,115 $ 513,865 $ 0 TIF will expire at the end of 2016 Only 2017 expense is close-out and disbursement of potential remaining funds Administrative Services 20

21 FY 2017 TIF HOWARD-RIDGE Operating Revenue FY 2015 Actual Amount FY 2016 Amended Budget FY 2016 Year End Estimated FY 2017 Proposed Budget Property Taxes 540, , , ,000 Other Revenue 64,176 1,120, ,500 1,030,000 Interest Income 1, Total Revenue $ 606,568 $ 1,670,100 $ 698,000 $ 1,585,400 Operating Expenses Services and Supplies 587, , , ,000 Miscellaneous Insurance and Other Chargebacks Capital Outlay (6,275) 1,000,000-1,000,000 Community Sponsored Organizations Debt Service Interfund Transfers 107, , ,500 60,000 Total Expenses $ 689,999 $ 1,646,100 $ 657,000 $ 1,598,600 Net Surplus (Deficit) $ (83,431) $ 24,000 $ 41,000 $ (13,200) Beginning Fund Balance $ 54,810 $ (28,621) $ 12,379 Ending Fund Balance $ (28,621) $ 12,379 $ (821) Began in 2004, will expire in Capital Outlay of $1 million for theater 2018 Capital Outlay $500,000 for theater Administrative Services 21

22 FY 2017 TIF WEST-EVANSTON Operating Revenue FY 2015 Actual Amount FY 2016 Amended Budget FY 2016 Year End Estimated FY 2017 Proposed Budget Other Revenue - - 9,000 - Interest Income , Total Revenue $ 257 $ 150 $ 10,100 $ 150 Operating Expenses Services and Supplies 1, Miscellaneous 1, Capital Outlay (11,205) Debt Service 7,185 10,000 10,000 10,000 Interfund Transfers 60,000 30,000 30,000 30,000 Total Expenses $ 58,365 $ 40,000 $ 40,400 $ 40,000 Net Surplus (Deficit) $ (58,107) $ (39,850) $ (30,300) $ (39,850) Beginning Fund Balance $ 500,370 $ 442,263 $ 411,963 Ending Fund Balance $ 442,263 $ 411,963 $ 372,113 TIF Current EAV is still well below Frozen EAV and no property tax is anticipated for Administrative Services 22

23 FY 2017 TIF DEMPSTER-DODGE Operating Revenue FY 2015 Actual Amount FY 2016 Amended Budget FY 2016 Year End Estimated FY 2017 Proposed Budget Property Taxes Other Revenue 2,000,000 50,000 50,000 50,000 Total Revenue $ 2,000,000 $ 50,000 $ 50,000 $ 50,000 Operating Expenses Services and Supplies Capital Outlay 2,000, Debt Services - 40,000 40,000 40,000 Total Expenses $ 2,000,000 $ 40,000 $ 40,000 $ 40,000 Net Surplus (Deficit) $ - $ 10,000 $ 10,000 $ 10,000 Beginning Fund Balance $ - $ - $ 10,000 $ 10,000 Ending Fund Balance $ - $ 10,000 $ 10,000 $ 20,000 Ongoing expenses are for interest only payments on Letter of Credit, which will be converted to long term bonds upon tax increment receipt and ability to pay principle. Administrative Services 23

24 FY 2017 TIF CHICAGO MAIN Operating Revenue FY 2015 Actual Amount FY 2016 Amended Budget FY 2016 Year End Estimated FY 2017 Proposed Budget Property Taxes - 75, Other Revenue 900,000-2,120,000 - Total Revenue $ 900,000 $ 75,000 $ 2,120,000 $ - Operating Expenses Services and Supplies Capital Outlay 580,000-2,320,000 - Debt Service 7,930 43,500 43,500 60,000 Total Expenses $ 587,930 $ 43,500 $ 2,363,500 $ 60,000 Net Surplus (Deficit) $ 312,070 $ 31,500 $ (243,500) $ (60,000) Beginning Fund Balance $ - $ - $ 312,070 $ 68,570 Ending Fund Balance $ 312,070 $ - $ 68,570 $ 8,570 Created in 2013, expires in 2037 Ongoing expenses are for interest only payments on Letter of Credit, which will be converted to long term bonds upon tax increment receipt and ability to pay principle. Administrative Services 24

25 FY 2017 BUDGET PRESENTATION-- October 24, Capital 2. TIFs 3. Debt 4. Pensions Administrative Services 25

26 FY 2017 DEBT 101 What is debt service? Payments on capital Principle and interest When are payments made? July 1 st & December 1 st What do we use debt for? Capital Over $20K, lasts longer than 5 years TIF developer payments Essentially Private Capital Special Assessment Essentially Shared Capital How does bond rating effect debt service? Debt Service is both principle and interest Higher bond rating = lower interest costs. Administrative Services 26

27 FY 2017 DEBT 101 What is our debt policy? Internal policy of $113 million cap - not changed since 2012 Will be asking for an exception for Crown Will be asking for separate cap for Library Who creates the debt service property tax levy? The City adjusts the debt service levy each time bonds are issued Cook County consolidates all issues into one levy Debt Service v Capital Fund? Capital Fund tracks year s project expenses and bond proceed revenues Debt Service Fund tracks the annual payment of principle and interest of bonds Administrative Services 27

28 RECENT DEBT ISSUANCE Administrative Services 28

29 RECENT DEBT ISSUANCE 2013 Debt Service Includes: 2013B Bonds Refunding $28,875, A New Construction bonds of $12,565, A New Construction bonds - $12,585, B Bonds Refunding $11,475,000 refunding 2015A New Construction bonds -$13,885, B Bonds Refunding $8,025,000 refunding 2016A New Construction bonds -$13,715,000 Administrative Services 29

30 TOTAL DEBT BY TYPE AS OF 12/31/15 General Obligation Debt $145,641,615 Paid from Property taxes $106,639,900 IEPA Loans - $51,901,172 Other Debt LOC, Compensated Absences, OPEB, etc. $26,936,769 Total Debt in 2015 Excluding Police/Fire/IMRF Pension Liability $224,479,556 Total Debt Excluding Police/Fire/IMRF Pension in 2005/06 - $335,856,858 Non-Pension Debt Decrease of $111,377,302 Administrative Services 30

31 FY 2017 BUDGET PRESENTATION-- October 24, Capital 2. TIFs 3. Debt 4. Pensions Administrative Services 31

32 2017 BUDGET-- PENSIONS INTEREST RATE ASSUMPTION OF 6.5% Police Pension Fund Firefighter's Pension Fund 2016 City Recommend Minimum Contribution at 6.50% $9,380,940 $7,350,865 Funded Ratio 47.4% 44.8% OPTION 1 - NO ASSUMPTION CHANGES 2017 City Recommend Minimum Contribution at 6.50% $9,359,836 $7,520,758 Funded Ratio 49.0% 45.7% Increase over 2016 Contribution ($21,104) $169,893 OPTION 2 - CHANGE IN MORTALITY TABLES ONLY $10,237,200 $8,148,709 Funded Ratio 46.6% 43.6% Increase over 2016 Contribution $856,260 $797,844 OPTION 3 - CHANGE IN MORTALITY TABLES AND INTEREST RATE $10,814,136 $8,558,282 Funded Ratio 45.2% 42.2% Increase over 2016 Contribution $1,433,196 $1,207,417 STATE DEPARTMENT OF INSURANCE ACTUARY REPORT $6,792,225 $5,463,239 Funded Ratio 52.0% 47.0% Decrease over Recommended City funded level ($3,444,975) ($2,685,470) Administrative Services

33 2017 BUDGET-- PENSIONS Firefighters Pension Fund Actuarial Assets* - $69,312,907 Actuarial Liabilities* - $159,121,485 Unfunded Liability* - $89,808,578 Unfunded liability in per CAFR - $40,431,597 Police Pension Fund Actuarial Assets* - $99,623,717 Actuarial Liabilities* - $213,710,492 Unfunded Liability* - $114,086,775 Unfunded Liability in per CAFR - $51,156,780 *Per January 1, 2016 Actuarial Report Administrative Services

34 2017 BUDGET-- PENSIONS FY 2016 Pension Contribution $16.7 million FY 2017 Pension Contribution $18.25 million Actuarial recommended increase $1.65 million Proposed property tax increase for pensions $800,000 General Fund Property Tax increase $1,000,000 General Fund Other tax allocation to pensions $654,000 TOTAL INCREASE TO PENSIONS $1,654,000 Administrative Services

35 2017 BUDGET TOTAL LONG TERM DEBT Pension Debt (unfunded liability for Police, Fire and IMRF) Police* - $114,086,775 Fire* - $89,808,878 IMRF** - $14,555,442 Bonded and Loan Debt G.O. Bonds** - $145,615,641 IEPA Loans** - $51,901,172 Other Debt** LOC, Compensated Absences, OPEB, etc. $26,936,769 Total long-term debt - $442,904,677 Total long-term debt $424,460,789 *From 1/1/16 Actuarial Report **From 12/31/15 CAFR Administrative Services

36 2017 BUDGET CALENDAR DATE TIME ACTIVITY Monday, August 15, PM* Mid-Year 2016 Budget Review Wednesday, September 21, PM - 9PM in G300 Multi-media Budget Outreach Event Friday October 7, PM Proposed 2017 Budget to City Council Monday, October 17, PM 2017 Budget Discussion Monday, October 24, PM* 2017 Budget Discussion Saturday, October 29, AM Special City Council meeting Public Hearing-- Truth in Taxation Public Hearing-- FY 2017 Proposed Budget Preliminary Tax Levy Estimate Monday, November 7, PM 2017 Budget Discussion (if needed) Monday, November 28, PM* 2017 Budget & 2016 Tax Levy Adoption *meeting times are approximate City of Evanston 2017 Budget Calendar All meetings are held in the James C. Lytle Council Chambers except for the Sept 21st outreach event (G300) Administrative Services 36

37 FY 2017 PROPOSED BUDGET QUESTIONS Administrative Services 37