Village of Romeoville Village Board met April 13.
Here are the minutes provided by the board:
1. CALL TO ORDER-Roll Call
Present 4 - Trustee Dave Richards, Trustee Brian A. Clancy Sr., Mayor John Noak, and Trustee Ken Griffin
Absent 2 - Trustee Jose Chavez, and Trustee Linda Palmiter
2. POSTING OF COLORS-PLEDGE OF ALLEGIANCE
3. ITEMS FOR DISCUSSION
23-3119 A Presentation on the Annual Operating Budget for the Fiscal Year 2023-2024 for the Village of Romeoville, Will County, Illinois
Village Manager, Dawn Caldwell, thanked the Mayor and Board along with the Finance Department staff who spent so much time preparing this budget and to the Department Managers who provided a lot of detailed information.
Our 2023 revenue is $11 million higher than budget due to increased sales and home rule taxes ($4M), increased income tax ($1M), increased fees for services ($1M), increased building permits ($1.6M), increased engineering fees ($600K), increased tap-on fees (325K), reduced salaries and benefits ($2.3M), reduced contractual services ($1.7M), and reduced capital ($11M).
The proposed expenses are $148.4 M, representing a 0.7% ($1.1 M) decrease compared to the FY22-23 Budget. Revenue of $148.8 M is also budgeted to decrease 0.7% compared to the prior year budget. General Fund Expenses total $70.7M is 2% ($1.5M) lower than the prior year budget primarily due to decreased transfers out ($6.4M vs $11.6M). Water and Sewer Fund total $27.6 M, which is 5.3%($1.4M) higher than the FY 22-23 budget. The proposed ending Fund Balance is $172.2 M, which is 15.5% higher than the ending Fund Balance of the adopted 2022-2023 Budget. The proposed budget includes a revenue total of $148.8M (which includes use of fund balance). The overall budget is 0.7% lower than the last year due to decreased transfers, use of reserves, lease proceeds, and (included in Misc) developer contributions, other taxes include increased sales and home rule taxes, income tax, food & beverage taxes and hotel/motel taxes, increased fees from services including Ambulance and Fire Academy fees, Recreation programs, Aquatic Center Fees, and Water & Sewer fees.
The total proposed expenses are $148.4 M, which is 0.7% lower compared to the prior year budget. The ending reserve balance of $172.2M is anticipated to be higher than budgeted in 22-23 ($149.1M). As a reminder this is due to numerous projects being carried over; General Fund minimum balance is 3 months -ending balance is projected to be exceed the target (11 months), Water and Sewer is 10 months, and Recreation is around 6 months. Revenue in the General Fund totals $73 M.
Proposed revenue is 4% ($2.9M) higher than the prior year budget due to increased sales, home rule and use taxes ($5.5M), state income ($1.0M), and food & beverage tax ($314,000). Increases are partially offset by decreased developer contributions and reduced grants. We have already received notifications of possible grant funds that are not included. General Fund expenses are 2.1% lower than the prior year budget due to decreased interfund transfers of $5.2M and a reduced capital projects budget of $1.6M. Debt service is also slightly lower due to reduced lease expenses in the Fire Department. Offsetting the decrease are increased other expenses which are mainly due to increased business incentive payments.
Salaries, benefits and contractual services are collectively budgeted to be 5% higher primarily related to COLA and inflationary increases. Revenue in the Water Sewer Fund totals $23.3 million. Proposed revenue is 6% ($1.5M) lower than the prior year budget due to the reduced transfers General Fund from ARPA Grant proceeds ($1M this year-$3M prior year) for Well $14 capital project. Revenue also reflects water and sewer rate increase of 5%. Expenses totaling $27.6 million are 5.3% higher than the prior year due to increased capital projects, partially related to the shift of some projects from, FY23 to FY24. Expenses are also higher related to increased salaries and benefits and inflationary price increase of supplies (Water Distribution chemicals and salt). The W&S Lake Michigan Fund was created in the last fiscal year to keep track of expenses related to the newly formed water commission and internal expenses necessary to change the Village’s future water source. Expenses budgeted for next year include the commission administration fees and engineering for infrastructure. Revenue of $8.5 million includes a shift of property tax from the General to the Recreation Fund of $837,560 in place of budgeting transfer revenue which was budgeted in prior years. Fees for services is almost 40% higher due to new revenue at the aquatic facility combined with an expected increase in enrollment in programs including day camp and gymnastics. $224,200 additional revenue is also expected from hotel/motel taxes. The prior year grant revenue was $532,800 higher as the budget included IDNR and DCEO for the Lake Strini and Romeo Crossings capital projects. Operation expenses are primarily increasing due to the addition of the Aquatic facility. The budget also includes the use of $1.1M from the recreation reserve balances. The projected reserve balance in the fund at FY24 year end is $4.1 M which is about 6 months of operational expenses. Revenue totaling $1,715,000 is budgeted to be 21.5% higher than the prior year, and includes $960,000 in grants from Citgo and DCEO and IDOT for bike paths and trails. Expenses totaling $1,798,000 include the use of $83,000 fund balance and is primarily for bike path construction and a debt service transfer of $200,000 for the 2016A GO Bond.
As of April 30, 2022, the police pension was 75.2% funded and the Fire pension was 86.5% funded. In the current year (FY23) the investment market has continued to be unstable. Although the average savings rates have increased, the equities market remains less predictable. Investment earnings in the budget are based on average earnings of about 7%. The Village has 9 TIF Districts and in all funds combined increment revenue totals $6,511,400. A chart was provided that illustrates the distribution of the resident's tax dollars. Depending on the location, the Village portion of the tax bill is 9-10%. In areas served by the Romeoville Fire Department, taxes are 2% additional. Areas served by Lockport Fire Department have 10% of their bill allocated to the Fire Department. The Village-wide EAV increased 5.67% from $1,399,032,507 (2021 Tax Levy) to $1,478,292,696. The Fire District EAV increased from $886,300,855 to $927,891,548. The tax rate for the Fire Service is proposed to remain at .2047 per $100 EAV, an increase in the extension of $85,562. The tax rate for the Village is proposed to decrease .9828 to .9764 per $100 EAV. Due to the increase in EAV the Village will receive an additional $684,876. The combined Village and Fire Service area tax rate is budgeted to be 1.811, which is slightly lower than the prior year of 1.1875. Sales taxes collected includes a portion of the state tax collected and the additional home rule sales tax imposed by the Village. The total tax rate in Romeoville is 8.50% on general merchandise (2.5% of sales goes to the Village), 7.0% on titled merchandise (1% of sales goes to the Village) and 1.75% on qualifying food, drugs, and medical appliances (1% of sales goes to the Village). The sales tax budget also includes revenue generated from the 3% local tax on the sale of cannabis which was implemented in 2020. The 2023-2024 budget total is $28.6M. Businesses are 5.4M higher than the prior year budget as sales exceeded initial estimates and new ecommerce businesses have opened. 2023-2024 budgeted grants in the General Fund total $3,195,300 which is 905% ($2,877,200) higher than the prior year budget due to the anticipated receipt $2.7 million from the ARPA grant funds second installment. Also included in the General Fund is $7,500 for the D.A.R.E program from the Valley View School District, $49,000 from HIDTA, $65,000 for the SWARM safety grant (60% reduction from the prior year budget), $371,400 from FEMA for a SAFER and Port Security grant. Grants budgeted in all funds total $5,238,100.
Total proposed capital for FY2024 totals $37M with 113 total projects. Administration Capital Projects total $570,000 which include a Deer Crossing Park Video Board ($50,000), ERP Replacement ($200,000), and Cameras in Century Park ($85,000). The Public Works Department in the General Fund has Capital Projects totaling $5.1M and include Storm Sewer Maintenance and Repairs ($400,000), Decorative Lighting ($550,000), Roadway Islands ($200,000), Roadway Landscaping ($100,000), LED Upgrades at Facilities ($100,000), and other projects ($1,563,200). If we are successful in obtaining a grant we will replace 2008 Ambulance with a new Bariatric Ambulance that would require less maintenance and better serve the public. This ambulance would be built to accommodate and transport bariatric patients, something that is currently not regionally available. The capital projects for the Fire Department include Bariatric Ambulance ($500,000), Station 2 Site Improvements ($100,000), and Water Conserving Pump Simulator ($80,000). The Police Department capital projects include Evidence Room Audit ($100,000), Safety and Training Equipment ($20,000), and Non-Leased Equipment for Squad Cars ($115,000). REMA capital projects include cosmetic upgrades such as flooring and painting of the EOC facility which was built in 2002. The 135th Street Project is underway and will reconfigure the street from four lanes to two lanes and add additional bike lanes. This project will be partially funded by the Will County Governmental League STP funding. Bikers will be able to travel along 135th street more safely and the path will connect to the existing path that runs along Grand Avenue. The Recreation Funds (Recreation, Real Estate Transfer Tax, Athletic & Event Center and Aquatic Center) have Capital Projects totaling $1.9M and include additional Holiday Lights ($75,000), Wesglen Park Playground Redevelopment ($70,000), Deer Crossing Concession Stand Windows, Multi-Use Path-Metra/I&M Canal/Centennial Trail ($900,000), and Multi-Use Path-Route 7 Phase I ($170,000). The TIF Funds have Capital Projects totaling $3,661,140 and are primarily funding the completion of the Aquatic Center but also includes budgeted amounts for infrastructure improvements; Aquatic Center ($3.2M), Landscaping at Aquatic Center ($181,640), Marquette Business Park Patching ($100,000), Marquette Business Park Crack Sealing ($25,000), and Normantown Frontage Road Resurfacing ($200,000). Facility Construction Fund Totals $5.1M and include Romeo Crossing Dog Park Phase I and II $4.8M and Romeo Crossing Adaptive Sports Field Phase III-$334,400. The Water & Sewer fund has Capital Projects totaling $13.7M and include Watermain Rehabilitation ($4,320,000), Watermain Replacement ($5,497,240), Fairfax Tank Repainting ($771,295), Spangler Lift Station Rehabilitation ($200,000), Inflow and Infiltration Project ($500,000), and the Completion of Well 14: Naperville Road Ion Exchange Plant ($750,000).
The Village’s Long-term Debt payments for FY23-24 totals $11.3M; $7.1M in principal and $4.2M in interest. All Debt Service payments included in the 2023-2024 Budget total $12.3M. This includes $794,400 in operating leases for police and fire vehicles and equipment and estimated payments of $186,800 for the Upper Gateway TIF note payable. Budgeted salaries and benefits total $41.2M. Excluding transfers, this represents approximately 31% of Village expenses. The Village is currently in negotiations with three contracts. We are currently at 356 full-time equivalents (FTE), a decrease of 10 FTE from the 2022-2023 but increased cost of 7%. Decreased FTE is due to fewer estimated programming positions at the Aquatic Center and in the Recreation Department. However, expenses are expected to increase in part because last year the budget for the Aquatic Center was for only 3 months and this year includes 12 months. The increase is also due to increased minimum wage, COLA and Step increases. Total operational expenses are $67.1M, which is 6.4% higher than the prior year total largely due to the Aquatic Center and increased costs within the Public Works Department.
Administration Operating expenses totaling $2,359,200 are increasing by 6.4% ($141,000) due to increased consulting for Safety Town Planning, updates to the Corridor Enhancement plan, and Point of Difference strategies. Supplies are higher due to the shift $41,000 of dues expenses from the Village Board Budget to the Administration cost center.
The Information Technology budget is increasing by 6.7% ($138,760) due to increased expenses for new software agreements and for current maintenance agreements. The Community Development budget is increasing by 5.5% ($66,400) due to increased salaries, health insurance and consulting expenses. The Police Operating expenses totaling $14.2M are increasing by 2.1% ($299,200) due to increased salaries and benefits and due to one part-time animal control position budgeted to convert to full-time. The Fire Department Operating expenses totaling $8.2M are increasing by 4.6% ($361,990) due to increased salaries related to the conversion of 2 part-time firefighter positions to 3 full-time firefighters and the addition of a summer intern program. Other expenses are for the monthly vehicle lease payments and are lower than last year due to last year’s inclusion of a lease for a ladder truck. Lease payments are budgeted to be slightly lower as 4 of the 43 budgeted vehicles are at the end of their lease term during the year. Public Works Operating expenses totaling $23,166,400 are increasing by 4.6% ($1,009,900). Salaries and Benefits totaling $8,607,700 are 5.1% higher than the prior year’s budget.
Full-time wages are increasing 4.6% ($234,000) as the budget includes one new full-time position. Part-time and seasonal wages are increasing to assist with the asset database project. Recreation Operating expenses totaling $9.3M are increasing by 19.9% primarily due to the opening of the Aquatic Center. Salaries and Benefits totaling $6 M increased by 22.6% and $880,890 is related to the Aquatic Center. In addition, two new positions, a building technician and custodian that will be split between the Aquatic Center and the Athletic and Event Center.
A public hearing will be at our next Board Meeting along with budget approval, but overall this is a really good financial outlook for the Village.
This information will be available to view on our website.
The Mayor commented that it's still a difficult and uncertain time.
Trustee Griffin asked about computer security and how vulnerable or impenetrable we are. Dawn commented that we are spending a lot more time with cyber security and are purchasing software along with doing testing with our staff. Jeff Hlava is going through additional training too.
Trustee Richards commented that there could be some questions that come out of a deeper dive into the book but overall it is a good budget and it is a living breathing document that is constantly changing and evolving.
This is all for the residents and I'm very proud of that. Every year we talk about street resurfacing and you don't realize until you drive through towns who don't keep up with that just how important it is. Dawn commented that when the village does the roads it also included curbs and sidewalks and ADA compliance.
Trustee Clancy commented that it is easier to repair roads than to completely replace. A lot of neighbors have been getting outside and walking at night and the new street lighting has been great!
4. ADJOURNMENT
A motion was made by Trustee Griffin, seconded by Trustee Clancy, that this be Meeting be Adjourned at 5:52 PM. The motion carried by a unanimous vote.
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