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Home My WebLink AboutPacket - 04/06/2009 - Finance and Personnel Committee City of McHenry r �� ,:;,„ 0,. .;i. 333 South Green Street — - _ •-41„'„�(' , ` www.ci.mchenry.il.us McHenry,Illinois 60050-5495 —. }'ii v �•�r iilr U l fl-. Kri.:,Cze —,—TaL=... e .4." - m yi N:','.' i '' Mayor's Office (815) 363-2108 Fax (815) 363-2119 Clerk's Office FINANCE/PERSONNEL COMMITTEE MEETING (815)363-2100 Fax(815)363-2128 City of McHenry Municipal Center Administration(815)363-2108 333 South Green Street Fax(815)363-2119 Aldermen's Conference Room Colic works Community Monday, April 6, 2009, 6:30 PM Development (815)363-2170 Fax(815)363-2173 Parks and Recreation AGENDA (815)363-2160 Fax(815)363-3186 Police Non-Emergency (815)363-2200 Fax(815)363-2149 1. Call to Order Mayor Susan E.Low 2. 2009/10 Fiscal Year Budget Discussion City Clerk Janice C.Jones 3. Adjournment Treasurer David M.Welter Aldermen WARD 1 Victor A. Santi WARD 2 Andrew A.Glab Posted: April 1, 2009 WARD 3 Jeffrey A. Schaefer WARD 4 Steven C.Murgatroyd WARD 5 Richard W.Wimmer WARD 6 Robert J.Peterson WARD 7 Geri A.Condon MEMORANDUM TO: Mayor and City Council FROM: Chris Black,Finance Director FOR: April 6,2009 Finance and Personnel Committee Meeting RE: General Fund Revenue Analysis ATTACHMENTS: General Fund Revenue Summary Background. Approximately six months ago, staff began developing revenue estimates for the 2009/10 operating budget. The process of estimating revenues has been especially challenging with the economic downturn resulting in declining sales tax, income tax, and growth related revenues. General Fund Revenues. Fiscal Year 2009/10 General Fund revenues are projected to be $16,298,497, a decrease of $761,300 (4.5%) from the prior year. The revenue estimates for 2009/10 utilize trends and economic conditions and include only those revenues that can reasonably be expected to be realized during the fiscal year to meet operating needs. Property Tax Property tax receipts are approximately 29.6% of total General Fund revenues. Revenues increase 6.9% from the prior year's budget to$4,824,047. Intergovernmental Revenues Intergovernmental revenues consist of several state shared municipal revenue sources, sales tax, pull tabs, inter-track wagering, telecommunication taxes, and grants. For 2009/10, intergovernmental revenues total $9,203,202, a decrease of$841,200 (8.4%) from the prior year. The following is a summary of major intergovernmental revenue sources. Sales Tax. Sales Tax receipts are approximately 37% of General Fund revenue. Based on the decline in retail activity and new car sales, revenue is projected to be $6,028,000. This represents a decrease of$795,100 (11.7%) from the prior year's budget and is equal to the projected 2008/09 total. Use Tax. Use Tax, which is combined with Sales Tax revenue for financial reporting purposes, represents approximately 2.4% of General Fund revenue. Use Tax revenue is estimated at $397,100 ($14.10 per capita), an increase of$37,900 (10.5%) from the prior year. The increase in population from the special census is expected to generate approximately$52,500 in additional revenue. Income Tax. Income Tax proceeds are approximately 13.8% of total General Fund revenues. This revenue source is distributed to municipalities on a per capita basis. For 2009/10, the per capita estimate is $85, a decrease of 2.6% below from the 2008/09 • projected amount. Total proceeds are estimated at$2,393,600, an increase of 0.69% from the prior year. Grants. In the last two fiscal years, General Fund grant revenue has been is limited to Leaking Underground Storage Tank (LUST) funding. For 2009/10, the budgeted amount is $60,000, a decrease of$90,000 from the prior year. Anticipated revenues are equal to expected expenses for underground storage tank removal related remediation. Other Local Sources Other local source revenue consists of franchise fees, licenses and permits, fines, charges for service, and interest income. The 2009/10 revenue estimate decreases $244,100 (11.2%) from the previous year to $1,940,879. With the continued decline in new construction, building permit fees are budgeted at $62,200, a decrease of 47.1% from the prior year. Another significant reduction occurs in interest income, which decreases to $60,000 due to the steep decline in interest rates. Finally, traffic fines are estimated at $290,300, a reduction of $39,800 (12.0%) from the prior year's budget and the same as the 2008/09 projected amount. With planned officer vacancies and the adjudication process resulting in lower fines, an increase in this revenue source is unlikely. Miscellaneous Revenues Miscellaneous revenues consist of donations, reimbursement from other governmental units for police and dispatching services, and other minor revenue sources. The 2009/10 budget for miscellaneous revenue is $330,369, an increase of$13,800 (4.4%) from the prior year's budget. Fees received from other governments for dispatch services are expected to increase $36,900 to $136,980. Similarly, fees collected from school districts #15 and #156 for the school resource officer program and traffic details are budgeted at $166,900, a $19,900 increase from the prior year's budget. 1314 . . MEMoR D Mayor and City Coup°il TO: Finance Director Chris Black, ittee Meeting FROM: el Comm April 6,2009 Finance and Personas FOR: Budge et Follow Up Issues Water/Sewer B g March 23 �' Committee meeting held on provide Comm effort to rom the Finance and Personneloperational issues. In gathered During theeSt Fin information round ation on several °p Back uested information members, this was and committee req the arized in additional clarification to superintendents of the Water and Sewer divisions and su Water Division call outs for water main expenses are incurred due to emergency _ Most overtimeandissues. Overtime is also incurred and check building on weekends breaks take Overtime andpressure quality monitor well le breaks water p routine readings of water treatment chemicals, conditions. and surds main and hydrant painting. One experienced Seasonal workers typically do facility Seasonal Workers — to ee was trained to do J.tJ.L1E. locates, g up ko permanent wo rkers for more importantnt duties. This summer a worker will bends elm,which GPS locating of water buffalo boxes. This data will be added to our GIS mappings . save time locating these boxes in the future. contractua SCADA Maintenance—The division's budget includes SI1,5000ai hardware lfor ser�a viw s for level work. The majority of planned expenses are for programming maintenance including programming, hardware re at Well e nd troubleshootings are o budgeted infrequent transmission problems. hardware repairs,a Telephone Charges — The majority of the increase in this line item was the result of wireless earlier. service for a GPS receiver that will be used to locate water its number of phone lines f when SCADboxes, as A masanstalled The Water Division significantly reduced in 2001.The division pays for two lines that are utilized as backup to the SCADA system. Water Meter Change Out Program—TheWater slon has converted Staff anticipates completing the 7-year ly 94%of 7,400 water customers to radio frequency read meters. change out program during this year by replacing 466 manual read meters. Sewer Division Overtime—The vast majority of overtime is incurred because certain testing must be done seven days a week resulting in approximately five hours of scheduled overtime per week. Seasonal Workers—The seasonal worker typically does grounds and facility maintenance. This summer time will be allocated to mapping the City's storm sewer system for eventual inclusion in GIS. Telephone Charges — When SCADA has been successfully installed at all Sewer Division facilities, all but two telephone lines used at for alarms will be eliminated resulting in an annual savings of approximately$10,000.