Administrative Services EVANSTON October 19, 2015 FY 2016 Proposed Budget Presentation Martin Lyons Assistant City Manger / CFO 1

Administrative Services PRESENTATION OUTLINE TODAY 1.FY 2016 Budget Overview 2.New Funds for FY Property Tax Levy 4.Upcoming Budget Discussion Schedule 5.Questions PUBLIC MEETING SATURDAY OCT 24 9AM 1.Library Fund 2.Proposed FY 2016 Capital Improvement Plan 2

Administrative Services FY 2016 PROPOSED BUDGET Total Proposed Budget for FY 2015 is $294,710,257 (including interfund transfers, and excluding the Library) – Pg. 37 General Fund Revenues – $111,725,181 – Pg. 49, General Fund Expenditures – $110,187,198 – Pg. 49, Proposed Budget Adjustments on pages 18 and 19 of Proposed Budget document, providing multiple options for revenue or expense changes. Large increase in General Fund revenues & expenses due to GASB 67 & 68 Police/Firefighter Pension changes. 3

Administrative Services 2016 BUDGET OVERVIEW Challenges Pensions Debt and Capital State of Illinois Good News Stable Revenue Increases Holding Operating Expenses 4

Administrative Services 2016 BUDGET -- PENSIONS FY 2015 Pension Contribution--$15.0 million FY 2016 Pension Contribution-- $16.7 million Actuarial recommended increase-- $1.7 million Proposed property tax increase for pensions-- $800,000 Reduced Gen Fund Levy-- $350,000 Reduced Gen Assistance Fund Levy-- $550,000 5

Administrative Services 2016 DEBT AND CAPITAL Projected 2015 year-end unabated debt $111.2 million Debt policy limit $113 million 2016 unabated debt funded capital $8.25 million– all projects page 217 $1 million– Robert Crown Center Design – page 216 Remaining $9 million for Crown in 2017 New debt limit proposed-- $125 million 6

Administrative Services 2016 – CAPITAL FINANCING 2016 issuing $9.25 million in new bonds 2016 pay off $9.5 million in bonds Total capital improvements plan $56.1 million Total capital improvements plan funded from debt $31 million 2016 unabated debt funded capital $8.25 million– all projects page 217 $1 million– Robert Crown Center Design – page 216 Remaining $9 million for Crown in 2017 New debt limit proposed-- $125 million 7

Administrative Services 2016 TOTAL CITY DEBT AND CAPITAL 8 Total pension debt for 2014 was $198 million $160.8 million governmental $91.1 million in enterprise bonds and IEPA loans Total of above debt at end of 2014 is $450 million Pension funding is increasing to cover increased liability Capital debt service costs will also increase unless the City provides ongoing revenue for ongoing capital

Administrative Services 2016 STATE OF ILLINOIS Potential shared revenue cuts: Local Government Distributive Fund (LGDF) Motor Fuel tax distribution Property tax freeze Other taxes (telecommunications, PPRT) Reduced grant opportunities 9

Administrative Services 2016 GENERAL FUND REVENUES Stable tax revenue increases Sales tax Income tax Real Estate Transfer tax Liquor tax Permit and economic revenues Strong permitting revenue Increased hotel tax (can transfer to General Fund) Good Neighbor Fund Details on page 17 10

Administrative Services 2016 GENERAL FUND EXPENSES General Wage Increase below 2.5% Health insurance decrease 3% Solid Waste (SWANCC)-- $100,000 $1.5 million in alternative expense reductions Details on page 19 11

Administrative Services FY 2016 PROPOSED BUDGET POSITION CHANGES 12

Administrative Services FY 2016 PROPOSED BUDGET GENERAL FUND PROPOSED BUDGET 13 Projected surplus from baseline revenues and expenses$1,537,982 Projected surplus from budget balancing worksheet$ 575,515 Additional $1.5 million in cuts for consideration –page 19 Elimination of city-wide cell phone allowance $(31,418) Remove baseline transfer to Capital Improvement Fund $(500,000) Reduce "Legal Services--General" $(22,000) Reduction in personal computer equipment $(47,428) Eliminate 2 position (Currently vacant) + Vacancy Savings $ (410,527) Hold 2 vacancies $ (200,000) Eliminate Medical Billing position $ (70,000) Eliminate 2 position (vacant) -$(173,844) Staff reorganization savings $ (84,685)

Administrative Services FY 2016 PROPOSED BUDGET NEW FUNDS – GOOD NEIGHBOR FUND 14 Good Neighbor Fund impact on General Fund The 2016 Budget also includes a $500,000 transfer to the Capital Fund.

Administrative Services FY 2016 PROPOSED BUDGET NEW FUNDS – SPECIAL SERVICE DISTRICT #6 15 Special Service District #6: adopted by Council on July 13, Tax cap set at 0.45% of the EAV for the area– Dempster, Chicago Ave, Main Street. $210,500 in proposed revenue $200,000 in proposed expenses

Administrative Services FY 2016 PROPOSED BUDGET PROPERTY TAX LEVY HISTORY 16

Administrative Services FY 2016 PROPOSED BUDGET PROPERTY TAX LEVY HISTORY 17

Administrative Services FY 2016 PROPOSED BUDGET PROPERTY TAX LEVY HISTORY 18

Administrative Services FY 2016 PROPOSED BUDGET 2015 PROPERTY TAX LEVY IMPACT SUMMARY 19

Administrative Services FY 2016 PROPOSED BUDGET ALL FUNDS = $260,192,889 20

Administrative Services FY 2016 PROPOSED BUDGET CALENDAR 21

Administrative Services FY 2016 PROPOSED BUDGET QUESTIONS 22