Debt Management DEBT MANAGEMENT

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1 Debt Management DEBT MANAGEMENT Introduction The County has issued debt over the last two decades primarily for the rebuilding of its facility infrastructure. Issuance of debt is managed in compliance with the County s Debt Management Policy as documented in the Financial Policies section of this document. Debt Rating In recent years, the County has issued $1.995 million in debt in with Bond Issue 2010A in December 2010 for the construction of the 202 Art Bartell Facility, issued $4.2 million in refunding of the 2003 Nursing Home Bonds in July 2011, and issued $9.795 million in refunding of 2005 Public Safety Sales Tax Bonds in October 2014 to achieve more favorable interest rates generating savings to the taxpayers. Moody s Investor Services completed an updated rating on Champaign County in October 2014, and the County maintained the Aa2 bond rating it has had since Outstanding Debt $23.8 million in 1999, for the construction and remodeling of the Champaign County Court Facility and for the construction of the Juvenile Detention Center The principal amount outstanding as of December 31, 2016 will be $4,850,000. o $18.44 million in 2005 refunding the 1999 bond issue The principal amount outstanding as of December 31, 2016 will be $1,815,

2 Debt Management o $9.8 million in 2014 refunding the 2005 refunding of the 1999 bond issue The principal amount outstanding as of December 31, 216 will be $9,795,000. $5 million in 2000, for the additional funding for the construction and remodeling of the Champaign County Court Facility The principal amount outstanding as of December 31, 2016 will be $431,707. $19.9 million in 2003, for the construction of a new Champaign County Nursing Home The principal amount outstanding as of December 31, 2016 will be $0. o $7.43 million in 2005 refunding the 2003 bond issue The principal amount outstanding as of December 31, 2016 will be $3,435,000. o $4.2 million in 2011 refunding the 2003 bond issue the principal amount outstanding as of December 31, 2016 will be $4,255,000. $4 million in 2006, for the additional cost required to complete the new Champaign County Nursing Home construction project the principal amount outstanding as of December 31, 2016 will be $2,295,000. $5.955 million in 2007, for the Courthouse Exterior Renovation and Clock and Bell Tower Restoration project The principal amount outstanding as of December 31, 2016 will be $3,740,000. $1.48 million in 2007, for the General Corporate Fund and Highway Fund contribution to the Highway Fleet Maintenance Facility construction project the principal amount outstanding as of December 31, 2016 will be $0. $1.995 million issued in December 2011 for the 202 Art Bartell Facility housing the Coroner, Physical Plant, and County Clerk Election Storage the principal amount outstanding as of December 31, 2015 will be $1,265,000. The County issued all of the above debt as general obligation bonds to achieve the lowest possible interest rates. However, with the exception of the Nursing Home $19.9 million Bond and subsequent refunding of that Nursing Home bond issue, all of the debt is repaid with dedicated revenues rather than property taxes. The bonds for the Courthouse and Juvenile Detention Center projects are being repaid with the County s ¼% Public Safety Sales Tax. The $4 million bond issue for the additional costs for the completion of the Champaign County Nursing Home is obligated with the County s 1% county-wide sales tax within the General Corporate Fund but is actually being repaid by the Nursing Home through an annual transfer from the Nursing Home Fund to the General Corporate Fund, and the $1.5 million highway facility project funding and $1.995 million 202 Art Bartell facility completed in 2011 are backed by the County s general sales tax revenues. 536

3 Debt Management The $19.9 million and subsequent refunding issue for the Champaign County Nursing Home is paid with property tax, pursuant to referendum approved by the voters of Champaign County in November Debt Financing Plans At this time, the County does not have a documented plan for issuance of additional debt. However, a current master planning study on the Sheriff s operations for both law enforcement and corrections could result in a jail construction project sometime in the next three years. The following graph shows the County s current outstanding debt through the end of its term. Intergovernmental Loans In 1995 a loan from the Regional Planning Commission to the County in the amount of $1,050,000 for the purpose of buying and remodeling the Brookens Administrative Building was made. The loan is to be repaid over 20 years at 0% interest from June 1996 through June 2016, with annual payments of $52,500. The loan is repaid out of the County s General Corporate Fund, and the balance outstanding on December 31, 2016 will be $0 with the last payment made in Capital Leases The County does not currently have any capital lease obligations. Debt Limitations Pursuant to 55 ILCS 5/5-1012, the County s debt limit is 5.75% of Assessed Valuation. The real estate year 2015 gross equalized assessed valuation for Champaign County is 537

4 Debt Management estimated to be $3,610,647,899. By the statutory definition, the County s debt limit is $207,612,254. The expected County debt applicable to the debt limit at the beginning of FY2016 is: General Obligation Bonds $33,967,566 Intergovernmental Loans $ 24,062 Capital Leases $ 0 Total Outstanding Debt $33,991,628 The legal debt margin is $173,644,688 as of January 1,

5 Nursing Home Debt Service Fund NURSING HOME DEBT SERVICE FUND This budget is for the repayment of $19,925,000 in general obligation bonds issued in FY2003 for the purpose of financing the current Champaign County Nursing Home. BUDGET HIGHLIGHTS The FY2015 budget exhibits a significant decrease in expenditure. Because of the thirteen-month FY2014, there were two annual principal payments and three semi-annual interest payments paid in FY2014 because the annual principal and semi-annual interest payments are made in December. The FY2015 and FY2016 budgets reflect annual costs in the form of one annual principal payment and two semi-annual interest payments each year. As indicated below, the bonds funding this debt service will be retired in FY2022. FINANCIAL Fund 074 Dept Actual Original Projected Budget CURR PROP TX-NURS HM BOND $1,475,013 $1,429,613 $1,434,367 $1,436, RE BACKTAX-NURS HOME BOND $589 $0 $0 $ MOBILE HOME TAX $1,410 $0 $0 $ PAYMENT IN LIEU OF TAXES $1,044 $800 $0 $0 PROPERTY TAXES $1,478,056 $1,430,413 $1,434,367 $1,436, INVESTMENT INTEREST $670 $1,000 $0 $0 MISCELLANEOUS $670 $1,000 $0 $0 REVENUE TOTALS $1,478,726 $1,431,413 $1,434,367 $1,436, GEN OBLIG BOND PRINCIPAL $1,935,000 $1,000,000 $1,030,000 $1,085, INT &FEES-GEN OBLIG BONDS $706,324 $430,813 $430,563 $352,538 DEBT $2,641,324 $1,430,813 $1,460,563 $1,437,538 EXPENDITURE TOTALS $2,641,324 $1,430,813 $1,460,563 $1,437,538 FUND BALANCE FY2014 Actual FY2015 Projected FY2016 Budgeted $384,341 $388,145 $386,970 The fund balance of a debt service fund is required to cover the ensuing fiscal year debt service payments. The indicated fund balance, when added to the property tax revenue to be received in each fiscal year, provides appropriate coverage for the debt service to be paid in that year. 539

6 Nursing Home Debt Service Fund DEBT SERVICE SCHEDULE ANALYSIS The County sold $19,925,000 in General Obligation Bonds in February Pursuant to a voter approved referenda in November 2002, the debt will be repaid from property taxes over a twenty- year period. In FY2005, the County approved the advance refunding of $7,425,000 of bonds due 2013 through 2019 to achieve savings from lower interest rates. In FY2011, the remainder of the original 2003 bonds was refunded to achieve lower interest rates. Bond Issue 2005A - Refunding 2003 Nursing Home Construction Bonds Original Yield to Maturity Date Principal Interest Rate Maturity 1/1/2017 $1,085, % 3.94% 1/1/2018 $1,145, % 4.01% 1/1/2019 $1,205, % 4.07% Total $3,435,000 Debt Service Payments Fiscal Year Principal Interest Total FY 2016 $1,085,000 $180,338 $1,265,338 FY 2017 $1,145,000 $123,375 $1,268,375 FY 2018 $1,205,000 $63,263 $1,268,263 TOTAL $3,435,000 $366,975 $3,801,975 Bond Issue Refunding 2003 Nursing Home Construction Bonds Maturity Date Principal Interest Rate Original Yield to Maturity 1/1/2020 $1,365, % 3.00% 1/1/2021 $1,415, % 3.18% 1/1/2022 $1,475, % 3.40% Total $4,255,000 Debt Service Payments Fiscal Year Principal Interest Total FY 2016 $0 $170,200 $170,200 FY 2017 $0 $170,200 $170,200 FY 2018 $0 $170,200 $170,200 FY 2019 $1,365,000 $170,200 $1,535,200 FY 2020 $1,415,000 $115,600 $1,530,600 FY 2021 $1,475,000 $59,000 $1,534,000 TOTAL $4,255,000 $855,400 $5,110,

7 Highway Facility Debt Service Fund HIGHWAY FACILITY DEBT SERVICE FUND This budget is for the repayment of $1,480,000 in general obligation bonds (alternate revenue source) issued in FY2007 for the purpose of financing a portion of the Highway Facility constructed in 2007/2008. BUDGET HIGHLIGHTS The FY2014 Budget exhibited an upward spike in both revenue and expenditure. Because FY2014 was a thirteen-month fiscal year, there were two annual principal payments and three semi-annual interest payments on the bonds made in FY2014. The corresponding increase in revenue as transfers from the General Corporate and Highway Funds reflected the required transfers to cover the bond payments during that thirteen-month period. The FY2015 and FY2016 budgets resume a twelve month budget with one annual principal and two semi-annual interest payments. FINANCIAL Fund 350 Dept Actual Original Projected Budget INVESTMENT INTEREST $42 $0 $0 $0 MISCELLANEOUS $42 $0 $0 $ FROM GENERAL CORP FND 080 $93,927 $95,644 $95,644 $96, FROM CNTY HIGHWAY FND 083 $104,661 $106,575 $106,575 $107,139 INTERFUND REVENUE $198,588 $202,219 $202,219 $203,289 REVENUE TOTALS $198,630 $202,219 $202,219 $203, GEN OBLIG BOND PRINCIPAL $345,000 $185,000 $185,000 $195, INT &FEES-GEN OBLIG BONDS $38,994 $18,150 $18,150 $9,288 DEBT $383,994 $203,150 $203,150 $204,288 EXPENDITURE TOTALS $383,994 $203,150 $203,150 $204,288 FUND BALANCE FY2014 Actual FY2015 Projected FY2016 Budgeted $704 -$227 -$1,226 The fund balance of a debt service fund is required to cover the ensuing fiscal year debt service payments. The ending fund balance, added to the inter-fund revenue that will be received in the current fiscal year, will provide appropriate coverage for the debt service that will be paid each year. By the end of FY2016, this fund and debt service will be complete and zeroed out. 541

8 Highway Facility Debt Service Fund DEBT SERVICE SCHEDULE The County sold $1,480,000 in General Obligation Bonds (Alternate Revenue Source) in October $780,000 of this issue is to be repaid by the Highway Fund for a portion of its financial obligation to the new Highway Fleet Maintenance Facility, and $700,000 of this issue is to be repaid by the General Corporate Fund for the space dedicated to maintenance of the fleet of vehicles owned by General Corporate Fund departments. Bond Issue 2007B - Highway Facility Bonds Maturity Date Principal Interest Rate Original Yield to Maturity 1/1/2017 $195, % 3.76% Total $195,000 Debt Service Payments Fiscal Year Principal Interest Total FY 2016 $195,000 $8,288 $203,288 TOTAL $195,000 $8,288 $203,

9 General Corporate Fund Debt Service GENERAL CORPORATE FUND DEBT SERVICE This budget is for the repayment of two different bond issues. The first is $4,000,000 in general obligation bonds (general sales tax alternate revenue source) issued in FY2006 for the purpose of financing additional costs of the Nursing Home Construction Project. The alternate revenue source for repayment is the County s 1% sales tax. However, beginning in FY2010, the Nursing Home operating budget assumed responsibility for the debt service on this bond obligation and continues to do so through a Transfer from the Nursing Home Fund to the General Corporate Fund. The County continues to set aside the sales tax revenue as required by the bond covenants, but the transfer from the Nursing Home effectively re-establishes the benefit of those sales taxes to the General Corporate Fund. The second is $700,000 in general obligation bonds (general sales tax alternate revenue source) issued in FY2007 for the purpose of financing a portion of the County Highway Fleet Maintenance Facility which is to be used for service for the fleet of vehicles owned by the General Corporate Fund. The alternate revenue source for repayment is the County s general one-quarter-percent sales tax. BUDGET HIGHLIGHTS The FY2014 Budget exhibited an upward spike in both revenue and expenditure. Because of the thirteenmonth fiscal year that was adopted with FY2014, there were thirteen months of sales tax revenues posted, and two annual principal and three semi-annual interest payments made out of the single fiscal year budget. The FY2015 and FY2016 budgets resume a twelve-month budget, where there is only one annual principal payment and two semi-annual interest payments budgeted for each of the debt obligations. FINANCIAL Fund 080 Dept Actual Original Projected Budget % SALES TAX (UNINCORP.) $25,639 $308,202 $307,846 $311, /4% SALES TAX (ALL CNTY) $102,057 $95,307 $95,643 $96,150 FEDERAL, STATE & LOCAL SHARED REVENUE $127,696 $403,509 $403,489 $407, REIMB FROM NURSING HOME $307,665 $307,490 $307,490 $311,491 INTERFUND REVENUE $307,665 $307,490 $307,490 $311,491 REVENUE TOTALS $435,361 $710,999 $710,979 $719, TO HWY FACIL BOND FUND350 $93,927 $95,644 $95,644 $96,150 INTERFUND EXPENDITURE $93,927 $95,644 $95,644 $96, GEN OBLIG BOND PRINCIPAL $365,000 $195,000 $195,000 $210, INT &FEES-GEN OBLIG BONDS $187,710 $112,490 $112,490 $101,775 DEBT $552,710 $307,490 $307,490 $311,775 EXPENDITURE TOTALS $646,637 $403,134 $403,134 $407,

10 General Corporate Fund Debt Service DEBT SERVICE Bond Issue 2006A- Nursing Home Construction Bonds Maturity Date Principal Interest Rate Original Yield to Maturity 1/1/2017 $210, % 3.95% 1/1/2018 $215, % 3.97% 1/1/2019 $225, % 4.00% 1/1/2020 $235, % 4.04% 1/1/2021 $245, % 4.08% 1/1/2022 $255, % 4.12% 1/1/2023 $265, % 4.14% 1/1/2026 $855, % Total $2,505,000 Debt Service Payments Fiscal Year Principal Interest Total FY 2016 $210,000 $101,765 $311,765 FY 2017 $215,000 $93,470 $308,470 FY 2018 $225,000 $84,978 $309,978 FY 2019 $235,000 $75,978 $310,978 FY 2020 $245,000 $66,578 $311,578 FY 2021 $255,000 $56,655 $311,655 FY 2022 $265,000 $46,200 $311,200 FY 2023 $275,000 $35,269 $310,269 FY 2024 $285,000 $23,925 $308,925 FY 2025 $295,000 $12,169 $307,169 TOTAL $2,505,000 $596,985 $3,101,985 Bond Issue 2007B - Highway Facility Bonds Maturity Date Principal Interest Rate Original Yield to Maturity 1/1/2017 $195, % 3.76% Total $195,000 Debt Service Payments Fiscal Year Principal Interest Total FY 2016 $195,000 $8,288 $203,288 TOTAL $195,000 $8,288 $203,288 *Only 47% of the 2007B bond issue debt service is paid out of this budget. The remaining 53% is paid from the County Highway Fund. 544

11 ERI Debt Service ERI DEBT SERVICE This budget is for the repayment of $2,450,000 in bonds issued in 2006 to repay an Illinois Municipal Retirement Fund (IMRF) Early Retirement Incentive debt. The bonds were issued at a lower interest rate than if the County had structured the repayment of the debt with IMRF. The final payment was made on January 1, FINANCIAL Fund 088 Dept Actual Original Projected Budget REVENUE TOTALS $0 $0 $0 $ GEN OBLIG BOND PRINCIPAL $405,000 $0 $0 $ INT &FEES-GEN OBLIG BONDS $10,328 $0 $0 $0 DEBT $415,328 $0 $0 $0 EXPENDITURE TOTALS $415,328 $0 $0 $0 545

12 Public Safety Sales Tax Debt Service PUBLIC SAFETY SALES TAX FUND DEBT SERVICE The sales tax revenue required to be set aside for repayment of the $28,797,290 in bonds issued for the construction/remodeling of the Courthouse and construction of the Juvenile Detention Center, and the $5,955,000 in bonds issued for the Courthouse exterior masonry renovation and Clock and Bell Tower restoration projects are deposited in this budget. The corresponding annual bond payments are budgeted as expenditure in this budget. BUDGET HIGHLIGHTS The annual Budget reflects one annual principal payment and two semi-annual interest payments on the bonds that have been issued for the afore-mentioned projects. A refunding of 2005 bonds completed in FY2014, and anticipated refunding of additional bonds in FY2015 is generating savings in the annual debt service obligations paid out of the Public Safety Sales Tax Fund. FINANCIAL Fund 106 Dept Actual Original Projected Budget PUB SAFETY 1/4% SALES TAX $3,803,237 $3,559,587 $3,559,587 $3,611,871 PROPERTY TAXES $3,803,237 $3,559,587 $3,559,587 $3,611, INVESTMENT INTEREST $2,769 $0 $2,769 $1, OTHER MISC. REVENUE $199 $0 $199 $0 MISCELLANEOUS $2,968 $0 $2,968 $1, PROCEEDS-GEN OBLIG BONDS $11,763,593 $0 $0 $0 INTERFUND REVENUE $11,763,593 $0 $0 $0 REVENUE TOTALS $15,569,798 $3,559,587 $3,562,555 $3,612, PROFESSIONAL SERVICES $138,834 $0 $0 $0 SERVICES $138,834 $0 $0 $ GEN OBLIG BOND PRINCIPAL $2,753,284 $1,500,492 $1,490,492 $1,550, INT &FEES-GEN OBLIG BONDS $3,485,658 $1,996,035 $2,048,635 $1,999, GEN OBLIG BOND REFUNDED $11,624,759 $0 $0 $0 DEBT $17,863,701 $3,496,527 $3,539,127 $3,550,515 EXPENDITURE TOTALS $18,002,535 $3,496,527 $3,539,127 $3,550,515 DESCRIPTION The County sold $23,800,000 in General Obligation Bonds in June 1999 for the purpose of constructing a new Juvenile Detention Center, and for the construction of an addition and remodeling of the Champaign 546

13 Public Safety Sales Tax Debt Service County Courthouse. The issued bonds were General Obligation Public Safety Sales Tax Alternate Revenue Source Bonds. The County sold additional bonds for the Courthouse construction/renovation project in February $1,370,000 General Obligation Public Safety Sales Tax Alternate Revenue Source Bonds Issue 2000A; and $3,627, General Obligation Public Safety Sales Tax Alternate Revenue Source Bonds Issue 2000B (Capital Appreciation Bonds). In 2004, the County approved the advance refunding of $1,520,000 of the 2000 bonds due in 2007 to 2012 to achieve savings from lower interest rates. In 2005, the County approved the advance refunding of $18,440,000 of the 1999 bonds due in 2010 to 2029 to achieve savings from lower interest rates. In 2007, the County sold additional bonds - $5,955,000 General Obligation Public Safety Sales Tax Alternate Revenue Source Bonds Issue 2007A - for the exterior renovation of the original Courthouse, and for the restoration of the Courthouse Clock and Bell Tower. In 2014, the County approved the advance refunding of $9,795,000 - of the 2005B bonds due in to achieve savings from lower interest rates. The debt service schedules for the bonds are as follows: Bond Issue Courthouse and Juvenile Detention Center Facility Bonds Maturity Date Principal Interest Rate Original Yield to Maturity 1/1/2020 $1,015, % 5.39% 1/1/2021 $1,140, % 5.40% 1/1/2022 $1,275, % 5.41% 1/1/2023 $1,420, % 5.42% Total $4,850,000 Debt Service Payments Fiscal Year Principal Interest Total FY 2016 $0 $400,125 $400,125 FY 2017 $0 $400,125 $400,125 FY 2018 $0 $400,125 $400,125 FY 2019 $1,015,000 $400,125 $1,415,125 FY 2020 $1,140,000 $316,388 $1,456,388 FY 2021 $1,275,000 $222,338 $1,497,338 FY 2022 $1,420,000 $117,150 $1,537,150 TOTAL $4,850,000 $2,256,375 $7,106,

14 Public Safety Sales Tax Debt Service Bond Issue 2000B - Courthouse Facility Bonds Maturity Date Principal Interest Rate Original Yield to Maturity 1/1/2017 $465, % 6.05% 1/1/2018 $431, % 6.10% Total $897,566 Debt Service Payments Fiscal Year Principal Interest Total FY 2016 $465,860 $809,141 $1,275,000 FY 2017 $431,707 $833,293 $1,265,000 TOTAL $897,566 $1,642,434 $2,540,000 Bond Issue 2005B - Refunding 1999 Courthouse & JDC Facility Bonds Maturity Date Principal Interest Rate Original Yield to Maturity 1/1/2017 $785, % 3.98% 1/1/2018 $865, % 4.03% 1/1/2019 $950, % 4.09% Total $2,600,000 Debt Service Payments Fiscal Year Principal Interest Total FY 2016 $785,000 $136,500 $921,500 FY 2017 $865,000 $95,288 $960,288 FY 2018 $950,000 $49,875 $999,875 TOTAL $2,600,000 $281,663 $2,881,663 Bond Issue 2007A - Courthouse Exterior Renovation & Clock Tower Restoration Maturity Date Principal Interest Rate Original Yield to Maturity 1/1/2017 $300, % 3.76% 1/1/2018 $310, % 3.86% 1/1/2019 $325, % 3.92% 1/1/2020 $335, % 3.97% 1/1/2021 $350, % 4.00% 1/1/2022 $365, % 4.03% 1/1/2023 $380, % 4.05% 1/1/2024 $395, % 4.09% 1/1/2025 $410, % 4.12% 1/1/2026 $425, % 4.15% 1/1/2027 $445, % 4.18% Total $4,040,000 Debt Service Payments 548

15 Public Safety Sales Tax Debt Service Fiscal Year Principal Interest Total FY 2016 $300,000 $164,139 $464,139 FY 2017 $310,000 $149,139 $459,139 FY 2018 $325,000 $137,359 $462,359 FY 2019 $335,000 $124,765 $459,765 FY 2020 $350,000 $111,700 $461,700 FY 2021 $365,000 $97,875 $462,875 FY 2022 $380,000 $83,275 $463,275 FY 2023 $395,000 $68,075 $463,075 FY 2024 $410,000 $52,275 $462,275 FY 2025 $425,000 $35,670 $460,670 FY 2026 $445,000 $18,245 $463,245 TOTAL $4,040,000 $1,042,516 $5,082,516 Bond Issue Refunding 2005B Courthouse & JDC Facility Bonds Maturity Date Principal Interest Rate Original Yield to Maturity 1/1/2024 $1,330, % 2.40% 1/1/2025 $1,445, % 2.51% 1/1/2026 $1,565, % 2.60% 1/1/2027 $1,690, % 2.72% 1/1/2028 $1,815, % 2.84% 1/1/2029 $1,950, % 2.90% Total $9,795,000 Debt Service Payments Fiscal Year Principal Interest Total FY 2016 $0 $489,750 $489,750 FY 2017 $0 $489,750 $489,750 FY 2018 $0 $489,750 $489,750 FY 2019 $0 $489,750 $489,750 FY 2020 $0 $489,750 $489,750 FY 2021 $0 $489,750 $489,750 FY 2022 $0 $489,750 $489,750 FY 2023 $1,330,000 $489,750 $1,819,750 FY 2024 $1,445,000 $423,250 $1,868,250 FY 2025 $1,565,000 $351,000 $1,916,000 FY 2026 $1,690,000 $272,750 $1,962,750 FY 2027 $1,815,000 $188,250 $2,003,250 FY 2028 $1,950,000 $97,500 $2,047,500 TOTAL $9,795,000 $5,250,750 $15,045,

16 Capital Purchases Projects CAPITAL PURCHASES PROJECTS OVERVIEW The County FY2016 capital budget of $6,354,451 includes sixteen funds with Capital Equipment/ Replacement or Improvement Projects/Purchases. An overview of the FY2016 Champaign County Capital Expenditures Budget, as distributed among the County s funds is as follows: Capital Budget by Funds FY2016 RPC & Head Start $130,000 General Fund $57,500 Highway & Bridge Funds $4,503,596 Capital Asset Replacement $867,855 Nursing Home $556,000 Special Revenue Funds $234,000 GIS Consortium $5,500 TOTAL $6,354,451 Through the County s accounting system, established by the County Auditor, all purchases over $5,000 are classified as capital expenditures. Therefore, purchases for technology, equipment, and vehicles which are recurring expenses, are classified as part of the capital budget. This type of capital expenditure can be found in many of the 550

17 Capital Purchases Projects special revenue fund budgets, as well as in the General Corporate Fund budget. Of the $6.35 million capital budget in FY2016, $291,500 is budgeted in special revenue and general funds for recurring capital purchases. The non-recurring capital expenditures are typically tied to major capital projects, and are typically budgeted in the construction project budgets and/or highway funds. In FY2016, 71% of the FY2016 capital budget is in the Motor Fuel Tax, Highway, and Bridge Funds a total of $4,503,596. These are bridge and road construction projects scheduled to be completed in FY2016, as well as capital equipment replacement in the Highway Fund. Although there are new and different bridge and road projects each year, the Motor Fuel Tax and Bridge Funds budgets for capital projects remain at fairly constant levels. IMPACT OF CAPITAL EXPENDITURES ON THE OPERATING BUDGET General Corporate Fund In general, the County administers its capital improvement program through funds separate from the General Corporate Fund. The County Board adopts the budget fund by fund, and because most non-recurring capital projects costs are segregated from the operating budget, changes in the capital projects do not directly impact the operating budget and vice versa. One exception to this is the purchase of squad cars for the Sheriff s Office. The General Corporate Fund goal is to include $230,000 annually for the purchase of new squad cars. This enables the Sheriff to turn over his entire fleet every five years. However, with the required 4% budget cuts to the General Corporate Fund budgets, the Sheriff s squad cars budget was zeroed out in the FY2016 budget. The expansion of the County s facilities infrastructure from has placed increased demand on the maintenance and physical plant operations. In 1995 the County s total facility square footage was 395,599 square feet for six buildings. By 2011, this square footage had increased by 56% to 616,369 square feet for eleven buildings and six garage/out-buildings. While the County Board did take into consideration the staffing needs of the various departments of county government as their office spaces were remodeled or re-constructed over this 15-year period of building, consideration for the impact on the County s Physical Plant staffing and operating budget was not comprehensively addressed. Since 1995, the County s maintenance staffing has increased by 1 position (from 11 maintenance positions to 12) a 9% staffing increase to manage a 56% increase in building square footage. Similarly, the custodial staff has increased by 1 full-time equivalent position (FTE) a 13 % increase going to 8.5 FTEs from 7.5 FTEs. The County Board is currently in the process of completing a Facilities Conditions Assessment prepared through a contract with an architectural/engineering team. From this Assessment, the County will then construct a long term financial plan for the maintenance and future replacement of the County s facilities. The initial challenge will be to identify the appropriate levels of funding to address these facilities requirements. At the current time, the General Corporate Fund budgets $532,261 annually to address 551

18 Capital Purchases Projects major facilities repair/replacement projects, which is documented as inadequate to meet the current known facilities requirements. The completion of the Facilities Conditions Assessment will produce a comprehensive statement of the long-term financial requirements for funding repair and replacement. Based on that report, the County Board will consider the possibility of going to the voters in 2016 to request approval for a ¼ cent sales tax specifically to be used for expenditures relating to the County s facilities long term needs including coverage of any bond issues for future building replacements. The FY2016 budget maintains the status quo for funding capital facilities projects at $532,261. CAPITAL PURCHASES PROJECTS FUNDS This section describes the source for each fund which includes capital projects/purchases in the FY2016 budget, and the amount of the FY2016 capital budget. Purchases for these funds are subject to the County s Purchasing Policy and/or to state law regarding purchases by governmental entities. The County s accounting system establishes all purchases with an initial cost of $5,000 or more be paid for from capital expenditure line items, which means that a substantial amount of the budgeted capital within the funds that include operations are for purchase and replacement of technology, furnishings and other special equipment needs. GENERAL FUND - General Corporate Fund Principal operating fund of the County finances most activities for which there is no specific tax levy or user fee. The General Corporate Fund receives revenues from property taxes, sales taxes, state shared revenues, fees, fines, intergovernmental revenue, and inter-fund transfers. The FY2016 budget for capital is $57,500. SPECIAL REVENUE FUNDS - Capital Asset Replacement Fund Fund created through monies transferred from the General Corporate Fund, Public Safety Sales Tax Fund, and other special revenue funds to reserve for the current and future replacement of technology, equipment and facilities. The FY2016 budget for capital is $867,855. Court Document Storage Fund - The Document Storage Fund was established by the County Board pursuant to 705 ILCS 105/27-3c. The fund revenue comes from a $15 fee assessed in virtually all court cases, to be used to defray the cost of establishing and maintaining a document storage system in the Clerk s Office. All expenditures from this fund must be approved by the Clerk of the Circuit Court. The FY2016 budget for capital is $30,000. Circuit Clerk e-ticketing Fund - This fund has been established in accordance with 705 ILCS 105/27.3e, as amended by Public Act effective January 1, The fee shall be used to defray expenses related to the establishment and maintenance of electronic citations the process of transmitting traffic, misdemeanor, municipal 552

19 Capital Purchases Projects ordinance, conservation, or other citations and law enforcement data via electronic means to the circuit court clerk. The FY2016 budget for capital is $60,000. County Bridge Fund Property tax revenue source fund for building and maintaining county bridges. The FY2016 budget for capital is $1,232,213. County Highway Fund Property tax revenue source fund for building and maintaining county highways. The FY2016 budget for capital is $646,383. County Motor Fuel Tax Fund State shared revenue from motor fuel taxes for construction and maintenance of county highways. The FY2016 budget for capital is $2,625,000. County Treasurer Automation Fund Fee generated on parcels sold at the annual tax sale, and on non-homeowner requests for duplicate bills. The FY2016 budget for capital is $5,000. Recorder Automation Fund Fee for automating records in the Recorder s Office. The FY2016 budget for capital is $85,000. GIS Consortium Fund Intergovernmental joint venture, funded through membership fees and services fees. The FY2016 budget for capital is $5,500. Head Start Fund Federally funded education and development program for lowincome pre-school children and their families. The FY2016 budget for capital is $86,500. Jail Commissary Fund The Jail Commissary Fund is comprised of revenue from detainee utilization of the commissary, donations and gifts, and investment interest earnings to be used to provide detainees with items that are not supplied by the Jail. The FY2016 budget for capital is $40,000. County Clerk Election Assistance Grant - Revenue is anticipated from at least two grants in FY2016. The Illinois State Board of Elections Voter Registration State Grant and the Voting Access for Individuals with Disabilities (VAID) V grant. The funds will be used to purchase election equipment. The FY2016 budget for capital is $14,000. Regional Planning Commission The fund includes federal and state grants for economic development, community services, senior services, transportation engineering and police training, plus local contracts for planning and other technical assistance. The FY2016 budget for capital purchases is $43,500. ENTERPRISE FUND Nursing Home Fund Fund established for the operation of the Champaign County Nursing Home. Primary revenue sources are from Medicaid and Medicare payments, private pay fees and property taxes. The FY2016 budget for capital is $556,

20 Capital Purchases Projects SUMMARY The total of all capital purchases budgeted in the FY2016 Champaign County Budget is $6,354, % of the total FY2016 budget. 554

21 Courts Construction Fund COURTS CONSTRUCTION FUND This Fund was created in FY1999 as the capital projects fund for the construction and remodeling of the Champaign County Courthouse and Courthouse Addition. BUDGET HIGHLIGHTS In FY2015, there is budgeted $255,000 in Court Facility Repair/Maintenance. $40,000 is for parking lot improvements, and $215,000 is for replacement of all the windows in the original 1901 Courthouse building. There is an additional $255,000 budgeted in FY2016. The prioritization for that expenditure will be recommended by the Facilities Director and the County Facilities Committee after the receipt of the Facilities Condition Assessment and ADA Compliance Project costs to be delivered by Bailey Edward Architects at the end of FINANCIAL Fund 303 Dept Actual Original Projected Budget INVESTMENT INTEREST $106 $300 $300 $ GIFTS AND DONATIONS $16,308 $0 $16,308 $0 MISCELLANEOUS $16,414 $300 $16,608 $250 REVENUE TOTALS $16,414 $300 $16,608 $ ARCHITECT SERVICES $4,035 $0 $28,750 $ COURT FACILITY REPR-MAINT $181,405 $255,000 $226,250 $255,000 SERVICES $185,440 $255,000 $255,000 $255,000 EXPENDITURE TOTALS $185,440 $255,000 $255,000 $255,000 FUND BALANCE FY2014 Actual FY2015 Projected FY2016 Budgeted $612,103 $373,711 $118,961 A fund balance in a construction fund simply reflects funds that remain available for the purpose of construction of the particular project. The anticipated change in fund balance at the end of each fiscal year is attributable to spending these project funds on appropriate Courthouse related projects. Eventually, the funds will be depleted and the fund will then be closed. 555

22 Highway Facility Construction Fund HIGHWAY FACILITY CONSTRUCTION FUND This Fund was created in FY2006 as the capital projects fund for the construction of a new Champaign County Highway Maintenance and Office Facility. The portion of the fund budget is for construction of County Highway fleet maintenance facility space, to be paid for from the County Motor Fuel Tax Fund. The facility was completed in FY2008, with final payments related to the project made in FY2009. The final distribution of all monies from this fund that were left over at the end of the project were distributed back to the Motor Fuel Tax Fund in FY2014. There is no current or future activity anticipated for this fund. FINANCIAL Fund 304 Dept Actual Original Projected Budget INVESTMENT INTEREST $22 $0 $0 $0 MISCELLANEOUS $22 $0 $0 $0 REVENUE TOTALS $22 $0 $0 $ TO COUNTY MTR FUEL TX 085 $155,377 $0 $0 $0 INTERFUND EXPENDITURE $155,377 $0 $0 $0 EXPENDITURE TOTALS $155,377 $0 $0 $0 FUND BALANCE FY2014 Actual FY2015 Projected FY2016 Budgeted $0 $0 $0 As stated above, this fund was closed out in FY2014. It appears in the FY2016 Budget only because of the activity that occurred in FY

23 202 Art Bartell Construction Fund 202 ART BARTELL CONSTRUCTION FUND This Fund was created with the FY2011 Budget for the construction of the new County facility at 202 Art Bartell Road on the County s East Campus in Urbana. The building houses the offices of the Coroner and Physical Plant Maintenance Division, which were previously housed in a rented facility in downtown Urbana. The new facility also houses County Clerk Election Storage. The construction budget also covered costs of upgrade of the storm water system on the County s east campus, and expanded fiber connectivity among all the facilities on the campus. BUDGET HIGHLIGHTS This fund was officially closed out in FY2014, when the balance of unspent funds was transferred back to the General Corporate Fund. FINANCIAL Fund 305 Dept Actual Original Projected Budget INVESTMENT INTEREST $3 $0 $0 $0 MISCELLANEOUS $3 $0 $0 $0 REVENUE TOTALS $3 $0 $0 $ ENGINEERING SERVICES $5,416 $0 $0 $0 SERVICES $5,416 $0 $0 $ TO GENERAL CORP FUND 080 $15,947 $0 $0 $0 INTERFUND EXPENDITURE $15,947 $0 $0 $0 FUND BALANCE EXPENDITURE TOTALS $21,363 $0 $0 $0 FY2014 Actual FY2015 Projected FY2016 Budgeted $0 $0 $0 As stated above, this fund was closed out in FY2014. It appears in the FY2016 Budget only because of the activity that occurred in FY