HomeMy WebLinkAboutMinutes - 2/24/1999 - Finance and Personnel Committee (2) `- FIN�4NCE/PERSONNEL COMMITTE�
T0: Mayor and City Council
FROM: John A. Lobaito, City A nistrator
FOR: February 24, 1999 Fina c /Personnel Committee Meeting
RE: Revenue Projections
Enclosed for the Committee's review are the fiscal year-end revenue projections for
all the City's major funds. Also included are the forecasted revenues for the next
three fiscal years. The following funds are enclosed:
1 . General Fund
2. Annexation Fund
3. Park Donation Fund
4. Capital Development Fund
5. MFT Fund
6. Water/Sewer Fund (to be distributed Monday, February 22, 1 ggg)
� The year-to-date totals are through December 31 , 1998. The year-end projection is
an educated guess based on personal knowledge and trends of the particular revenue
source.
General Fund
In the General Fund, the forecasted revenues are conservative at an approximate 2%
increase each year. Because the fund is largely dependent on sales tax, I am reluctant
to be too optimistic. The modest increase from fiscal year 98/99 to fiscal year 99/00
is due to the S 135,000 loss in revenue for the COPS Grant.
Annexation Fund
This fund will show an approximate 5370,000 balance at fiscal year-end. As you will
recall, $100,000 was budgeted for land acquisition, which will not be spent this year.
This year, the large increase was due to the high number of building permits issued
for dwelling units. Part of each building permit contains an annexation fee. This fee
varies form subdivision to subdivision. We are not expected to sustain this number
of building permits in the forecasted years.
�
� Finance/Personnel Committee Meeting
February 24, 1999
Page Two
Park Donation Fund
`" This fund remains relatively unchanged. Again, the increase this year is due to the
high number of housing starts compared to prior years. As you recall, the Committee
is recommending this fund be divided 50/50 between the Recreation/Community
Center and Parks & Recreation capital project fund. For estimating purposes, I have
assumed the grant revenue for Wm. H. Althoff Park will be received in the next fiscal
year.
Capital Development Fund
There is 5600,000 budgeted this year for land acquisition that will not be spent. The
same assumption was made here as was in the Park Donation Fund with respect to
the number of building permits issued for dwelling units. The total number of units
built next fiscal year will likely be less.
As I have mentioned before to the Committee, water capital development fees should
be reviewed. Baxter & Woodman, at first glance, has suggested the fee is too low.
I will be recommending that the Committee review these fees in fiscal year
1999/2000.
MFT Fund
� It is projected this fund will have an approximately 5800,000 balance at fiscal year
end. The forecasted years represent a 2% increase annually. The allotment of MFT
dollars to each community is based on population. Once the census data from the
upcoming census is received by the Department of Revenue, there will be a noticeable
increase in the latter two forecasted years. The figures shown do not represent this
change.
Policv Issues
1. Capitalized Limit: Currently, it has been the City's practice to capitalize the
� purchase of assets over 5500 in each department's 700 account. This amount
has not changed for at least the past 10-years. As the price of items increase
over the years, more and more items fall into the "over 5500" category. After
speaking with our Auditor and other communities, the amount varies between
5500 and 51 ,000. It is recommended this amount be increased to 5750.
Capital items costing less than this would be expensed through each
department's "Small Equipment" account.
2. Street Program: It is forecasted that the balance of the MFT Account will be
5800,000 on April 30, 1999. It is estimated that the Street Program for fiscal
year 1999/2000 will be approximately $1 .5 million, if the City Council decides
to follow the program as outlined by IMS. This provides for 26-streets to be
� overlaid and 2-streets to be reconstructed.
Finance/Personnel Committee Meeting
February 24, 1999
Page Three
�. To implement a S 1 .5 million Street Program, it will be necessary to consider
other revenue sources to make up the approximate 5700,000 shortfall.
Otherwise, the committee should decide what amount of monies are available
for the Street Program. Listed below are three options:
a. Annexation Fund: It is forecasted this fund will have an approximate
balance of 5370,000 on April 30, 1999. $100,000 was budgeted in
fiscal year 1998/99 for land acquisition. Although this money will not
be spent it may be in the future.
b. General Fund Reserves: These monies may also be used; however, the
Committee must decide what amount of reserves should be kept on hand
as backup for the general operation of the City before deciding the
amount of funds to transfer to the Street Program.
c. Reduce Program Scope: Although there is a fair amount of reserves in
the General Fund that could offset the shortfall in the Street Program, the
Committee should give serious consideration to reducing the scope of the
program. This option would be more appropriately addressed by the
Public Works Committee.
3. General Fund Reserve Balances: The Committee should consider the amount
�-- of reserves that should be maintained in the General Fund. By making this
decision, it will be easier to bring a balanced budget to the Committee during
the annual budget process. It will also provide Staff guidance from year-to-
year.
In considering the fund reserve, you must consider the fact that revenues for
the General Fund are provided by sales tax. A typical reserve amount may be
anywhere from 30 to 90-days of operating expenditures. Due to the
dependency on sales tax, it is recommended the City keep a higher reserve. In
my opinion, the best approach would be to designate a specific percentage
amount over and above the operating expenditures. This would be easy to
calculate annually.
The 1998/9 Fiscal Year operating budget is approximately 57,600,000. This
is approximately 5633,000 per month. A 3-month reserve would be
< approximately 51,900,000. This is roughly 25% of the operating budget. The
Committee may decide on 25% or a lesser amount.
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� Enc.
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CITY O MC �ARY 1989-2000 BUDC3ET P PARATION
FEBRU RY 79 1998
ACCT �.10A5 �.'i0A6 �h10�97 M10-83 1998A8 1998-88 1998�8 7999-2080 2600-2G01 2001-Z002 _
NO. OENERAL PUND ACTUAL ACTUAL ACTUAL ACTUAL BUD(;ET YTp 14P31 PROJECTm YIE ESTIMATE ESTINIATE ESTIMATE
REVENUE 01.00.
300.01 P Taxes-Generel Fund $638,653 $66'9,472 $690.771 $413,423 $703,700 �698.132 $704,000 5725,120 $746,800 5769,204
300.0 Pro Taxes-RoadlBrid 5178,806 5790,104 5200.884 $2a5,991 5210,000 $214,956 5215.000 ' 5210.000 5210.000 5210,000
300. Pro Taxes-Police Protection 5190,721 5202.079 5200.272 5194.435 $247,100 $245,159 $246,000 $245,000 3245.000 $250,U00
301 State Sales Tax $3,121,638 $3,462.425 $3,918,322 $4,143.630 34.400,000 52.965.403 54,100,000 ' 54,230,000 54.360.00p $4.qgp.ppp
302 StatelncomeTax 5899.918 51,004,620 57,103,404 51,261,523 57,313,000 �796,725 51,300,000 51,359,360 51,400,064 $1,442.065
---,-.__. __ _ ._--_____-
303 L' uor Licenses $44,917 $51,450 355.800 $51,650 $48.000 51,850 550.000 $50,000 $51,000 552.400
304 C' Licenses a9,840 $23,160 578.160 $11,935 a12,000 $9,705 $12,000 $12,000 $12.000 $13,000
305 Buildin Pertnits $114,514 599,811 $117,509 5116,644 $135,000 3114,655 $150,000 $125,000 $125,000 5125,000
306 2onin Filin Fees s4.850 $3,790 34.910 $7,780 $5.000 $3,255 55,000 55,000 $S.ppp SS,ppp
307 Traffic Fines 5168,675 $205,348 $198,213 �213,104 $21,500 5155,976 $210,000 5218,000 $220,000 5220.000
308 Parldn Fines 518,295 $22.987 �21,946 $20,970 522,000 513,319 $20,000 520,000 $20,000 s20.000
309 Po{ice Re rts $4.888 55.956 55.117 55,550 55,000 53.595 55,000 $5�000 55.000 35,000
3101r�terest-Pro Tax $1,522 52.264 $1.642 $992 31.000 SO 51,000 51,300 51.300 51,300
311 Reimb.-Comm.DeskSalaries $41,300 541,300 341,300 y44.550 $45,000 529,700 �44.500 s44.500 �{4.5pp sqq,5pp
312 Reimb.-0fBcer Trainin $0 $16,440 515,780 570,661 515,400 53,585 $4,000 S30 000 $15,000 515,000
313 Reimb-Miscellaneous Salaries 30 y0 s0 566,703 350,000 $27,744 $35,000 520,000 $20,000 320,000
314 Funerel Home Income 56,309 $6.732 $6.539 $8,327 $6,000 $5,446 57,000 Sfi0,000 56.00p 57,000
315 Interest Eamed s61,812 $80.012 $128.357 $152.693 a125.000 5161,136 $200,000 5130,000 5130,000 5130,000
316 Pro Dama e Reimbrsmnt. 510,164 $31,533 56,512 524,410 $10,000 $1,537 $50,000 35,OOp SS,ppp �,5,ppp
317 Re acemerd Taxes 520,030 $1,905 $1.962 $8,655 a1,500 $1,345 51,500 51,500 51,600 51,600
318 Tele hone Franch.Fees s54,076 $55,963 558.595 567,944 $60,000 5108.546 $170,000 5175,000 Sf75,000 $180,000
319 Cablevisiort Frenchise a37,180 539,051 545,630 $56.516 $50,000 SO $58.000 �60.000 s65,00p 570.000
320 Vehicle Licenses $130,928 5129,781 5134,874 y144.385 $150.000 5140.847 �141.000 $144,000 5145,000 5145.000
321 Fines-Vehicle Licenses $3.893 35.066 38,346 �4.155 �5.000 $4.454 SS.000 $S,OOp 35.5pp �5,gpp
322 Federal Gas Tax Refunds s11,058 511.794 $9,549 $1U,670 510,000 50 510,000 �10,000 $10,000 s11,000
323 In ion Fees-E ineerin $491 s2,473 $8,578 s7,331 $10,000 $6,192 38,000 38,Opp gg,5pp sg�5pp
324 Ga e/leaf s SO SO SO $8,584 59�000 57.295 58.5�0 58,500 58�500 59,000
32� Mowi eeds $0 $0 s0 510,635 $10,000 59,80p 510.000 510,000 510,000 S70,000
328 False Alarms SO 30 $0 36.856 55�000 57,148 37,500 56.000 56.000 57,000
329 Elevator In ions 30 $0 $0 57,220 �6.000 $5,610 57,000 57,000 S7,500 57,500
330 Donations-Miscellaneous SO 30 SO $12.065 310.000 $6�909 54.000 54,000 54�000 54.000
332 Room Rental $0 $0 $0 37,875 510,000 $6,075 58,000 $B4OOp gg,ppp sg.ppp
334 ReimbursemeM-TrafficSi nals $3,973 $1,891 $12,104 $1,009 ;1,500 $355 3i,500 51,000 51,000 $1,000
337 Sale/Auction-C' Pr 596.085 586,000 531.997 516.419 $10,000 5291 52.500 56,000 s6,Opp �g,ppp
340 Park 6 Recreation Pr rams Sd $0 $242,969 �247,018 $204,025 5115,913 5785,000 5200 000 5200.000 5200.500
347 Concessions $0 524.886 $27,924 $28,050 $29,948 $30,000 526,000 $26,000 S2B4O00
348 Beach Pr rams $0 $0 $2,079 $1,920 52,500 $3.021 $3,000 52,500 52,500 32.700
349 Swimmi Pool $0 a0 580,738 381,521 $85,000 ;75,767 $89,000 $75.000 �80.000 SBp,ppp
350 Pr ram Donations $0 $0 $17,150 �18,861 $20,900 $16,793 $18,000 318,000 $20,000 520,000
360 Rental Income $21,100 $0 $0 $0 sp sp gp yp
370 Federal Grents $0 $6 $0 $159,774 $135.000 $32,530 3135,000 $0 sp $p
390 MisceUaneous Income $120,749 $101,784 $203,664 $20,977 $25,000 $11,741 a25,000 $25,000 $25,000 525,000
392 Huntin /Fishin Licenses-IL $345 $604 $800 g8pp ggpp sgpp
394 HuntinglFishin Licenses-WI $1,338 $1,601 31,800 51,800 51,800 $1,800
Total 5 995 385 $6 555 201 7 639 059 $7 878 968 6 223 175 $6 044 663 288 600 38 298 380 439 364 656 969
Current $5,995,385 $6,555.201 $7,639,Q59 57,878,968 $8,223,175 $6,044,663 $8,288,600 58,298,380 $8,439.364 58,656,969
Transfers
Su us $728,143 3914,648 $1,675,518 $2,&00,218 52,709,226
Total $6 723 528 $7 469 849 $9 374 578 $10 479186 $70 932 401 $6,044 663 $8 288 B00 $8 288 380 s8 439,364 $8 656 969
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CITY MC "rRY 1989-2000 BUDGET P ARATION
FEBRU Y 19,1899
ACCT. 4.10�85 4.10-96 4.10-97 1-]6�98 198&89 1998�99 '1898-99 1989�T000 2000-2001 2001-2002
NO. ANNEXATIONS 1S. ACTUAL ACTUAL ACTUAL ACTUAI. BUD(3ET YTD 12f31 PROJECTEQYIE ESTIMATE ESTIMATE ESTI�AATE
B (31N�fINC3 BALANCE; $48 542 S78 297 156 295 131 931 168 808 2 '?! o
REVENUES:
315 Irderest Earned SO 37.187 $4,381 �5.344 $5,000 $7,888 511,000 55.000 s4.000 S4.ppp
325 Gravel Minin$Incane_`_____-- 555,875 _ 371 210 $27,418 — _$49.790 --__`$75,000 - - __$74,000 575,000 $75.000 $75.000 575,000
- -- - ----- -
326 Mnexation lncome �$101,820 -- -- �$85,589 $44,660 $75,680 a60,U00 $61,000 $70,000 560.000 $65.000 �65.000
Cou GraM SO $0 $0 �400.000 $0
360 School Fees 52.480 335.960 532.240 365�898 555�000 $65�898 590,000 550.000 550�000 $50,000
TOTALS: 160175 199 846 �108 694 296 712 195 000 206 786 246 000 5190 000 194 000 194 000
EXPENSES:
510 U ate En .Master Plan $2,940 $0 30 30 $0 SO sp
6i8 School Fees 52,480 538,440 �31,000 $62,539 $50,000 SO 590,000
620 Mun.Bld .Transfer SO $0 y0 SO SO sQ $0
621 Road&Brid Transfer a25,000 $75,000 �0 SO �0 a0 SO
700 E ui mer�t Purchase SO $0 30 30 s0 Sp 3p
725 InTrastructure Extens. SO �8,508 y0 SO $0 ap $p
700 Land Purchasa 5100,000 $0 �0 SO $100.000 a0 $0
622 Donovan lift Transfer a0 $0 376,709 $15,000 30 $0 $0
709 Rt.31/Lan Tum Lane �0 y0 SO y0 �0 $p 3p
712 Industrial Dr. SO $0 �25,349 $182,295 $0 �0 SO
TOTALS: 5130 420 127 948 133 058 $259 834 $150 000 000
BALANCE 78 297 156 295 13 931 $168 809 213 809 3208 786
'3�`�i�P`f
CITY O HIC ���RY 1999-2000 BUD(3ET ARATION
FEBRU Y 19,1999
ACCT. 430.95 4-30-86 4.'i0 97 4.10AB 1998��9 198&69 1888�8 1988-2000 2000-T001 2001-2002
NO. PARK DONAT10N3 ACTlJAL AC AL ACTUAL ACTUAL BUDGET YTO 171Ji PR0.IECTED YIE E5T16AATE ESTIMATE ESTIMATE
BEGINININO NCE 1 041,421 910, 9 604 1 157 962 1 206 283 j
REVENUE
12.315 Ir�terest Eamed f34,344 $62.369 a76,535 $75,592 $60.000 552,825 570,000 a70.000 560.000 s30.ppp
12.344 Colleeted for Parks $173,827 _a117,569 _ _ $938.840 __$160,369 $120,W0 5171.355 5210,000 5140,000 $140,000 5140,OOQ
---- -- -
12.360 Rentallncome $13,200 SO $0 521,000 $0 $14,564 �21.000 $21.000 �21.000 521.000
�2.sss �►��naUo� sss� ssss S�o.� ss,�ss S�o.00Q so S2,000 so so so
12.370 Boat Launch Grant �140,000 �p $p gp gp g0 ap $p Sp Sp
12.380 Clean lakesGrant 5118,934 $16.294 31.516 S11 002 510,396 521.640 $21,640 SO sp sp
12.390 Land A isidon 5200,916 $0 $0 SO $0 ap $p Sp sp Sp
� cCK- '� t2v-�l y0 cY'A
Total 79 812 196 891 227194 273122 200 396 260 384 24 640 221 000 191 000
EXPENSES
12.510 Recr.Pr rams Trfr. $25,000 SO s0 $0 $0
12.558 Tree Planti Lendsc. a31,490 53.536 52,389 SO 30
12.620 Boat Launch 386,58p �p �p gp $p
72.721 ParWPta round Im . 5111.074 a4,360 522,770 5116,476 SO
12.726 Misc.lm roveme�ts $87,633 395,057 �13,853 $21,095 $67,500
12.727 Park Dev.Plans $5.215 30 5800 37,220 $20.000
12J00 Land Ac uisition 5434,282 SO SO y0 556,5p0
12.731 McC.lake Restoration 329,917 528,006 $2,f91 327,135 $10,000
12.732 Brookside Park y0 $0 53,203 $52,875 $285,000
Total $811 191 130 959 206 224 801 39 000 $0 gp
5alaries s0 $p ap gp �p
rati $31.490 53�536 52�389 SO $0
Transfer s25,000 $0 $0 $0 s0
Ca ital 5754.701 5127,423 342.817 $224,801 5439,000
Totaf 5811 191 5130 959 345 206 5224,801 $438 000 $0 �► sp gp gp
BALANCE 70 U42 a975 974 $1 157 962 1 206 283 $967 679 384 5221 000 5191 000
j�o���923 31l,ao
cmr o MChc�aRY 1999-2000 BUDOET PR PARATION
FEBRU Y 19,1999
ACCT. 4J0�85 4�30-96 4�'f0-97 4-30.98 1996.99 1998-99 1998-99 1999-2000 2000�2001 Z001-2002
NO. CAPtTAL DEVELOPMENT FUND 55. ACTUAL ACTUAL ACTUAL ACTUAL BUDCiET YTD 12f31 PROJECTED YIE ESTIMATE ESTIMATE ESTIMATE
BEOINNINO BALANCE 1 717 532 $2 077 702 $2,394 354 1 503 602 2 025 276
REVENUE
32.315 Interest Eamed $65,856 $168,253 5148,464 $100,369 380.000 574.658 $100.000 $100,000 $50,000 550.000
31.352 Water Fees 5723,368 $81,601 3116,655 $137,510 $100,000 a135,932 5175,000 $140,000 5140,000 $140.000
32.352 Sewer Fees � ------'- $278.282 5135.116 $158,773 $283.795 $190,000 $325,318 $400.000 - $160,000 $160,000 $160.000
32.360 Ca ital Pro'.Transfer $0 $0 $0 $0 $0
TOTAL $467 506 $384,970 �423 892 $521,674 $370 000 $535,908 $675 000 $400 000 3350 000 335p ppp
EXPENSES
701 Land A uisition $18,151 $0 $159,712 $0 $G00,000
710 Centrifu e $1,637 $0 $0 $0 30
726 WTP#4-Construction $87,554 $0 $0 $0 $0
727 SWWTP En ineeri 30 $0 $28,571 $0 $0
728 Well#�9 Construction 30 $68,318 354,031 $0 $0
730 Eastside San.Sewer SO $0 $1,072,330 $0 $0
731 Ca ital Pro'.Transfer �0 $0 $0 �0 g0
TOTAL $107 336 368 318 $1 314 644 $0 $600 000 $0 $0 $0 $0 sp
Salaries s0 $0 �0 $0 �0
ratin SO $0 30 $0 $0
Transfer �0 $0 $0 $0 $0
Ca ital $107,336 $68,318 $1,314,644 $0 $600,000
TOTAL EXPENSES: 107 336 318 1 314 644 000 0 $0
BALANCE 2 077 702 2 394 354 1 503 602 2 025 276 1 7B5 276 535 908 s675 000 $400 000 $350 000 3350 000
:ITY O MCHENRY . :d-2000 BUDCiET PRE ARATION
VIOT FUEL TAX FUND-FEBRUARY 16,1 9 •
ACCT. 4.10�85 430�98 430�97 430-98 1988-7989 199&89 1898.99 1999-Z000 2000-2001 2001-2002
NO. MOTOR FUEL TAX FUND 22 ACTUAL ACTUAL ACTUAL ACTUAL BUDGET YTD-12131 PROJECTED YIE ESTIMATE ESTIMATE ESTIMATE
BEGINNINO BALANCE 353 233 410 751 250 437 621 677 631 357 849 078 I
REVENUE .
�.315 Interest Eamed 22,060 19,833 21,441 29,270 21,000 28,080 38,000 25,000 30,000 25000
_ _- ----- --
w.338 Allotments from State 430,084 442,485 441,091 462,546 490,000 315,133 480,000 490,000 500,000 510000
�.339 Sidewalk Reimb. 0 0 0 0 0 0 0 0 0 0
00.350 Pubiic Works Transfer 0 0 0 0
)0.360 Received from State 36,585 48,673 6,425 0 459,000 0 459,000 0 0 0
TOTALS: 488 729 510 991 468 957 491 816 970 000 343 213 977 000 515 000 530 000 535 000
EXPENSES
19.510 C tal Lake Rd.Im r. 125,169 0 0 0 0
19.527 Materials and Su ies 45,154 81,314 63,105 38,668 65,000 •
19.726 Green St.im r.-STA I� 131,488 26,191 0 0 0
19.702 ResurFacin 2,084 211,611 20,381 429,402 15,000
19.703 Reconstruction 0 301,951 6,711 0 0
I9.705 CLRlDartmoor Si nal 0 0 0 0 70,000
19.706 ROW Ac uiskion 100,000 0 0 0 0
19.707 En .Studies STA III 0 16,417 7,520 14,068 574,000
KJ.708 Rt.31 Tra�c S nals 27,316 33,821 0 0 0
�9.711 AAain St./Borden St.Im . 0 0 0 0 0
Plannin Str.Im r. 0 0 0 0 60,000
TOTALS: 431 211 671 305 97 717 482 138 784 000 0 0 0 0 0
BALANCE 410 751 250 437 621 677 631 355 817 357 1 192 292 _ 515 000 530 000 535 ppp
gZ`�1'��
BUDGET ADOPTION SCHEDULE
�'" FISCAL YEAR 1999-2000
February 24, 1999 Revenue projections, MFT Water & Sewer, General
Fund. Discuss policy issues relating to the budget.
Wk. of March 7, 1999 Public Works committee to discuss Street Program.
Wk. of March 14, 1999 Presentation of Public Works budget for
Administration, Buildings and Grounds, Streets, and
Sewer & Water Divisions.
Wk. of March 21, 1999 Presentation of Community Development budget and
Parks & Recreation - Update revenue projection and
Carryover Project amounts.
� Wk. of April 4, 1999 Finalize the budget.
April 21, 1999 Present budget to City Council for approval.
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