1 budget planning session city council chambers 7:00 p.m. – march 22, 2011

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Budget Planning Session

City Council Chambers

7:00 p.m. – March 22, 2011

2© jefferyaki

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Today’s Outcomes

Overview

General Fund Revenue Projections

General Fund Expenditure Projections

Infrastructure and Capital Needs

Next Steps

Questions, Thoughts, and Discussion

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City Revenue Projections

Major Revenue Sources – Assumes 2% Growth

Property Tax, Sales Tax, State Shared Income Tax, Utility Tax, Building Permits, Liquor Tax, Recreation Program Charges

Assumptions – 2012 Projections – Completed November 2010 2010 CPI-U (Urban Consumers) – 1.4% 2011 CPI-U (Urban Consumers) – 1.9% 2010 GDP – 1.3% 2011 Real GDP – 3.1% 2012 – 2014 Real GDP – 4.25% 2010 Unemployment – 9.4% 2011-2014 Unemployment - Decline 2015 Unemployment – below 6%

Source:http://www.whitehouse.gov/sites/default/files/omb/budget/fy2011/assets/econ_analyses.pdf

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Property Tax

Property Tax Revenue (Net Levy)

41,844,547

37,323,777

41,024,065

40,219,672

33,711,163

34,839,671

38,983,777

32,000,000

34,000,000

36,000,000

38,000,000

40,000,000

42,000,000

44,000,000

2006 2007 2008 2009 2010 2011 Projection 2012 Projection

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Property Tax

Property Tax Revenue* (General Fund Portion)

16,305,500

16,676,592

17,010,124

16,587,883

16,976,26217,091,200

16,349,600

15,000,000

15,500,000

16,000,000

16,500,000

17,000,000

17,500,000

18,000,000

2006 2007 2008 2009 2010 2011 Projection 2012 Projection

* Each 1% increase in Property Tax generates approximately $400,000 in new revenue

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Sales Tax

8,152,678

7,300,000

8,315,7328,482,0468,546,173

8,857,9949,237,337

5,510,756

4,552,968

5,296,7675,463,5615,572,880

5,911,796

5,402,702

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

FY07/08 Actual FY08/09 Actual FY09/10 Actual FY10/11 Est.Actual

FY11 Budget* FY12 Projection FY13 Projection

REGULAR

HOME RULE

* 10 month budget in FY11

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State Shared Income Tax

$4,635,565

$5,513,234$5,623,498

$6,827,642 $6,821,169

$5,912,082

$5,405,131

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000




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Utility Tax

$6,982,174

$7,392,249

$7,176,941

$6,967,904

$8,537,097$8,802,973

$7,856,422

$6,000,000

$6,500,000

$7,000,000

$7,500,000

$8,000,000

$8,500,000

$9,000,000


FY11 Budget* FY12Projection

FY13Projection


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Real Estate Transfer Tax

$1,640,274

$1,801,903 $1,837,942

$1,500,000

$1,766,572$2,064,170

$3,956,243

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000




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Building Permits

2,800,7072,745,7912,854,424

4,476,925

1,480,739

2,691,9522,500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000




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Liquor Tax

2,098,939 2,140,917

1,750,381

1,948,366 1,953,005 2,057,783

1,623,754

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000




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Recreation Program Charges


4,503,360

5,070,175

4,654,468

4,970,760

4,776,6894,630,299

5,171,579

3,500,000

3,700,000

3,900,000

4,100,000

4,300,000

4,500,000

4,700,000

4,900,000

5,100,000

5,300,000

FY07/08Actual

FY08/09Actual

FY09/10Actual

FY10/11Est. Actual

FY11Budget*

FY12Projection

FY13Projection

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Expenditure Projections

Expenditures Non-Public Safety

Legislative City Manager’s Office Legal Administrative Services Community and Economic Development Health Public Works Library Parks, Recreation and Community Services

Public Safety Police Department Fire & Life Safety Services

Capital Projects

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Expenditure Projections

Assumptions

IMRF - .25%

Health Insurance – .75%

General Salary Growth – 1%

Other Growth – 2% Fixed costs – fuel, supplies Personnel Costs

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General Fund Expenditures

Other*23%

Benefits19%

Salaries58%

* Other = Contractual Services, Supplies and Miscellaneous Program Expenses

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Staffing & Population Trends

Year Population* Staffing1980 73,706 856.101990 73,233 854.222000 74,239 836.092010 74,486 797.83

* Per United States Census

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Staffing & Population Trends

5 Year Budgeted Staffing History - Full-Time Equivalents

857.03

842.40

797.83

867.97885.24

740.00

760.00

780.00

800.00

820.00

840.00

860.00

880.00

900.00

FY2006/07 FY2007/08 FY2008/09 FY2009/10 FY2010/11

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General Fund Expenditures

Non-Public Safety vs. Public Safety Expenditures (FY09-10 Actuals)

Public Safety39%

Non-Public Safety61%

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Non-Public Safety Expenditures

52,827,251

42,417,057

52,203,24754,291,377

50,195,430

-

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

FY09-10 Actual FY10-11 Est. Actual FY11 Budget* FY12 Projection FY13 Projection


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Public Safety Expenditures

35,902,80431,456,425

38,832,47337,338,916

34,200,591

-

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

FY09-10 Actual FY10-11 Est.Actual



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General Fund Summary

General Fund Revenues vs. Expenditures

88,160,093 89,923,295

73,873,482

86,431,46484,454,243

93,123,850

89,542,16387,027,842

86,098,234

73,873,482

60,000,000

65,000,000

70,000,000

75,000,000

80,000,000

85,000,000

90,000,000

95,000,000

FY09-10 Actual FY10-11 Est.Actual


Revenues

Expenditures


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Staff down by 10% since FY2006/07

Revenues are projected to increase by 2% in FY 2012 and FY 2013

Expenditures are forecasted to increase by 4% in FY 2012 and FY 2013

Personnel costs represent approximately 77% of total budget

Increasing General Fund structural deficit projected for future years

FY 2012 - $1.4 million FY 2013 - $3.2 million

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Capital Needs

Major Funding Sources

CIP Fund General Obligation Bonds CIP Fund Reserves

Other Funding Sources Water Fund Parking Fund Motor Fuel Tax Fund Fleet Fund Economic Development Fund E911 Fund TIF Funds Special Assessment Reserves Grants, Donations, Loans

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Capital Needs

Infrastructure Maintenance – Public Works

Chicago Avenue between Lake and Main

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Capital Needs


Church Street at Evanston Township High School

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Capital Needs


Salt Dome

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Capital Needs


Fleet Services

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Capital Needs

Infrastructure Maintenance – Parks, Recreation & Comm. Services

Crown Center Parking Lot Pavement Hazardous Conditions – Church Street Boat Ramp

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Capital Needs


Deteriorated Playground Equipment at Philbrick Damaged Athletic Surface at McCulloch Park

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Capital Needs


Backstop Fencing at Foster Field Deteriorated Gazebo, Equipment and Edging at Cartwright Park

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Capital Needs


Non-ADA compliant and Deteriorated Furnishings at Garden Park

Wall Damage - Lagoon

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Capital Needs


Deteriorating Duct Work – Service Center Deteriorated Concrete Beams – Service Center

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Capital Needs


Deteriorating Chimney - NoyesService Center – Deteriorated HVAC

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Capital Needs


Deteriorated Brick Wall - Noyes High Voltage Panels - Crown

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Capital Needs


Siding Deterioration – Ecology Center Greenhouse Exterior – Ecology Center

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Capital Needs


Fire Station 2 Chimney Cracking and Deterioration

James Park Sled Hill Erosion

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Capital Needs


Window Damage – Lakefront Arts Center Glazing Deterioration – Lakefront Arts Center Coach House/Greenhouse

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Capital Needs


Confined Lakefront Lagoon Entry Water on Lakefront Pedestrian Path

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Capital Needs


Civic Center Parking Lot PoleWater on Ladd Arboretum Path

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Capital Needs


Curling Roof Shingles at Noyes Damaged Roof Gutter and Downspout – Fog House

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Capital Needs – CIP Fund


(GO Debt + Fund Reserves)

12,900,000

10,500,000 10,247,0548,795,446

32,317,250

22,311,000

13,629,000

8,743,00011,134,629

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

FY07-08Budget

FY08-09Budget

FY09-10Budget

FY10-11Budget

FY 2011Budget*

FY 2012Projection

FY 2013Projection

FY 2014Projection

FY 2015Projection

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Capital Needs – CIP Fund


GO Debt Issuances for CIP Fund Only

-

6,500,000

6,215,000

16,640,000

12,500,000

12,020,000

10,795,000

10,620,0009,469,780

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

2002 2003 2004 2005 2006 2007 2008 2009 2010

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Capital Needs – Fleet


Fleet Capital Needs

2,000,000 2,000,000 2,000,000 1,700,000 1,900,000

9,400,000 9,682,000 9,972,460 10,271,634

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

FY07-08Budget

FY08-09Budget

FY09-10Budget

FY10-11Budget

FY 2011Budget*

FY 2012Projection

FY 2013Projection

FY 2014Projection

FY 2015Projection

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Capital Needs – Other Sources


Capital Needs - Other Sources

26,654,598

12,482,074 12,338,629

20,335,502 20,720,000

16,610,000

13,424,00014,856,000

11,025,000

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

FY07-08Budget

FY08-09Budget

FY09-10Budget

FY10-11Budget

FY 2011Budget*

FY 2012Projection

FY 2013Projection

FY 2014Projection

FY 2015Projection

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Capital Needs – All Funds


Capital Needs - All Funds

41,554,598

33,170,131 31,415,446

58,327,250

38,457,460

30,039,634

45,417,000

24,982,074 24,585,683

-

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

FY07-08Budget

FY08-09Budget

FY09-10Budget

FY10-11Budget

FY 2011Budget*

FY 2012Projection

FY 2013Projection

FY 2014Projection

FY 2015Projection

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Projected General Fund operating deficit:

FY2012 - $1.4 million FY2013 - $3.2 million

Projected General Fund operating deficit with transfer of revenue to fund limited capital improvements on pay-as-you-go basis:

FY 2012 - $3.4 million FY 2013 - $5.2 million

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Capital Needs Summary

Infrastructure improvements have been delayed due to competing priorities and lack of funding

General Obligation debt load of $111,233,880 remains high

Limited opportunities to fund future capital projects with General Obligation debt

Transfer of General Fund revenue to capital is an option for funding infrastructure maintenance ($2.0 million proposed)

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Next Steps

Budget Planning Summary

1. Community Services Comparison

2. Efficiencies / Alternative Service Delivery Methods

3. Better Capital Planning

4. Priority-Based Budgeting

5. Innovation

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Community Services Comparison

Illinois Comparables

Skokie Arlington Heights Oak Park Champaign Schaumburg

National Comparables

Ann Arbor, Michigan Berkley, California Cambridge, Massachusetts New Haven, Connecticut Rockville, Maryland

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Potential Efficiencies

Contract In Services

Contract Out Services

Partnerships

Elimination of Services

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Capital Improvement Program

A regular funding source to apply to ongoing maintenance is needed

Transfer of General Fund revenue to capital is an option for funding infrastructure maintenance ($2.0 million proposed)

Earmark funding for capital needs: Gasoline tax Growth in certain revenue – sales tax Other sources, both existing or new

Adopt a Debt Management Policy

Consider sale of capital assets

Consider privatization of capital assets

Better Capital Planning

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Priority-Based Budgeting

Review of City Council Goals

Affordable Housing Budget Planning Capital Improvement Program Climate Action Plan Economic Development Efficiency and Effectiveness of Services Federal/State/Regional Government Affairs Agenda Lakefront Development Northwestern University Police and Fire Pension Funding Issues Robert Crown Center Improvements Safety Issues Youth Services

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Review of Strategic Plan - Economic Viability

Economics Vision

Goal One: Create and implement a comprehensive economic development strategy, which results in a vibrant and diverse economy for the City of Evanston.

Goal Two: Create polices and programs that result in a well-maintained, diverse housing stock throughout the City of Evanston.

Goal Three: Generate marketable job skills for Evanston residents.

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Review of Strategic Plan - Environmental Sustainability

Infrastructure and Natural Resources Visions

Goal Four: Create and maintain functionally appropriate, sustainable, accessible and high quality infrastructure and facilities.

Goal Five: Protect and optimize the City’s natural resources and built environment, leading by example through sustainable practices and behaviors.

Goal Six: Coordinate and influence transportation resources to provide an improved system that is safe, integrated, accessible, responsive, understandable, efficient, and meets the needs of all people.

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Review of Strategic Plan - Strengthening Community

Partnerships, Governance, Neighborhood and Social Programs Visions

Goal Seven: Continue to develop a collaborative and reciprocal relationship with Northwestern University.

Goal Eight: Create collaborative and productive partnerships with schools, hospitals, business organizations, arts organizations, and other not-for-profit groups and governments.

Goal Nine: More effectively utilize Board and Commissions.

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Review of Strategic Plan- Strengthening Community, continued:

Goal Ten: Promote a standard of excellence and collaboration between staff and the City Council to provide outstanding customer service to the citizens of Evanston.

Goal Eleven: Define Evanston neighborhoods and ensure that they are safe, clean, and attractive.

Goal Twelve: Provide opportunities for and engage Evanston youth and young adults to become active and productive citizens of the Evanston community.

Goal Thirteen: Strive to ensure that all Evanston residents have access to healthcare as well as basic food, housing and shelter.

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Establish Community Priorities Online survey for individuals to invest $100 in City priorities – April 2011

Priority-Based Budgeting - Sample

Thursday, February 04, 2010

Directions:

$ 100 $ 100 $ -

Amount of Money CitizenIntends to Invest in Result

$ 30

$ 5

$ 20

$ 15

$ 10

$ 20

Valuing the Results of GovernmentGiving Emphasis to the Priorities of Government

The results that our Government strives to achieve are identified in the table below. As a citizen, your job is to help the City undersand clearly the results you value most. For this exercise, you are to imagine having $100 to invest in achieving the City's results. You can invest all of your money in one single result, or you can invest your money toward the achievement of various results emphasizing those which are most important to you. Spend the $100 until it's gone by typing the amount you intend to invest in a result into the empty box to the "right" of the Result Statement

Money You Started With

Money You Have Invested

Money You Have Left (When this box reads $0, you have completed Step 1.)

Results of GovernmentA Safe Community

Strong Neighborhoods and a Sense of CommunityEconomic Vitality

Culture, Recreation and Learning OpportunitiesStewardship of the Environment

Effective Transportation and Mobility Options

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Identify Programs and Services

Staff will develop a City Services and Program inventory

Services and Program inventory will identify: Key services and programs which contribute to Council goals Other services which do not directly support Council goals

Staff will provide costs and personnel associated with each service and program


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Program and Service Scoring Identify “value” of program based on their influence on results


Mandated to Provide Program

Cost Recovery of

Program

Change in Demand for

Service

Reliance on City to Provide

ServiceSafe City

Prosperous Economy

Green, Sustainable Community

Attractive, Vibrant

Community

Reliable, Well-Maintained

Infrastructure

0-4 Scale 0-4 Scale 0-4 Scale 0-4 Scale

Department Program

Office of Economic Development

Economic Strategy, Policy and Analysis

4 3 1 2 1 3 0 4 2

Office of Economic Development Downtown Management

1 2 1 4 4 2 2 1 3


Sister-City Program Management

2 1 0 3 1 1 0 1 0


Cultural Planning and Arts

1 0 0 0 3 2 1 4 4


Public / Private Partnership

3 2 1 1 1 1 3 4 2


Community Grants Administration

4 3 3 1 1 2 2 4 3


Community Events and Planning

2 3 4 3 4 1 3 2 1


Commercial / Retail Development Strategy

1 1 0 4 0 1 1 4 2


Business Attraction / Retention

2 2 0 0 1 3 4 3 1

One a scale of 0 to 4 points: 0 - program has no influence on achieving result; 1 - program has some influence, though minimal; 2 - program influences the result; 3 - program has strong influence on the

result; 4 - program is essential to result

Evaluation CriteriaThursday, January 28, 2010

Directions: for all the programs in your department, please rate how these programs score in the four basic attributes and their influence on the City's ability to achieve the program results.

Individual Department Program Scorecard

Basic Program Attributes Priority Results

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Program and Service Scoring Identify “value” of program based on their influence on results


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Program Prioritization and Resource Allocation

Programs will be grouped based on “value”

City Council and public will review program groups and associated costs

Community budget meetings will be held to prioritize programs

Low priority programs will be recommended for reduction or elimination

Staff will revise General Fund deficit estimate based on program prioritization exercise


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Innovation

Community Generated Ideas for Further Consideration

Shared use of NU facilities Reduce City vehicles Increase false alarm fees Reduce outside consulting costs Boat marina Cap revenues and place excess in pension funds Theater / Music facility Better planning for street repair / space out costs Create new park district Increase parking rate near rail stations Forgo free parking for first hour – downtown Retire TIF districts Wage freeze for all employees 5-star hotel near lakefront Attract additional entertainment sporting events

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Budget Planning Calendar

Upcoming Schedule

April, 2011 Online Community Prioritization survey Community Planning Session (late April / early May)

May 16, 2011: City Council Update Community Planning Sessions summary Online Survey results Programs and Services inventory

August 8, 2011: Community comparison findings Program prioritization summary Recommended program reductions / eliminations Revised General Fund deficit estimate

September, 2011: Community Budget Meetings

October 7, 2011: Submit FY12 Proposed Budget

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Questions

Thoughts

Suggestions

Thank you!

1 budget planning session city council chambers 7:00 p.m. – march 22, 2011

Documents

fy11 slide

property tax slide

loans slide

main slide

discussion slide

jefferyaki slide

month budget

new revenue slide