Budget with attachements combined

Village of Downers Grove

Village Manager’s Budget Message

Village Manager’s Budget Message

Introduction

The Municipal Budget is the Village’s annual implementation plan of its mission and strategic goals. The purpose of the budget is to align everyday operations and Village resources with community priorities outlined in planning documents such as the Long-Range Plan and the Comprehensive Plan. It also includes shorter term priority action items identified by the Village Council. The FY15 Proposed Budget is consistent with the Village’s strategic goals, specifically the goal to be a Steward of Financial Sustainability.

The Proposed Budget is a starting point for council discussion. The budget will be reviewed and discussed over several months in an open, transparent and participative process. The budget review process provides ample opportunity for dialogue among community members, the Village Council and staff in a series of public meetings and workshops.

Budget Review and Approval Schedule

Saturday Budget Workshop (Fire Station 2) Saturday, October 11 Budget First Reading at Village Council Meeting Tuesday, October 14 Budget Coffee with the Council (Fire Station 2) Saturday, October 18 Budget Discussion at Regular Council Meeting (If Necessary) Tuesday, October 21 Public Hearing Tuesday, November 4 Motion to Estimate Levy/Budget Adoption Tuesday, November 11 Tax Levy Public Hearing Tuesday, December 2 Adopt Tax Levy Tuesday, December 9

Village Budget Reflects Planning Documents and Reports

The Village’s annual budget is the implementation document for plans and studies that have already been discussed or approved including: ● ● ● ● ●

Long-Range Plan 2013-2015 Comprehensive Plan 2014 Stormwater Project Analysis 2013 Flood Report 2012 Stormwater Utility Study

● ● ● ● ●

2010 Water Rate Study 2006 Stormwater Master Plan Sidewalk Matrix Bicycle and Pedestrian Plan Downtown Parking Plan

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Summary

Village Manager’s Budget Message

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The FY15 Proposed Budget demonstrates the Village’s commitment to continuous improvement and innovation as well as to the provision of exceptional municipal services at a value to residents, businesses and other stakeholders. The following key components are evidence of this commitment: A. Property Tax Levy Decrease: As proposed, the Village’s property tax levy would decrease by nearly $180,000 (1.55%) in FY15.

The public safety pension levies will be lowered due to strong investment returns. All other levy components are proposed to remain unchanged from FY14. (See page 4-2.)

B. Sustainable General Fund: The Village’s General Fund is financially sound and sustainable, with proposed expenses and revenues of $44.8 million, demonstrating a commitment to cost containment and continued modest revenue growth. (See page 4-2.)

C. Staffing Reduced: In the Proposed Budget, the Village would reduce its total full-time equivalent (FTE) staff by 3.6 positions in FY15.

The reduction is due in part to the elimination of 3.4 FTE bus driver positions as the Grove Commuter Shuttle service will be operated by PACE using a third party contractor and the elimination of the vacant Community Development Director position as these job responsibilities were assigned to the Planning and Building Division Managers. Since 2009, the Village has reduced staffing by over 37 FTE positions.

D. Continued Investment in Infrastructure: The Village will continue to make major investments in the Village’s infrastructure, including $9.5 million in streets, $4.6 million in stormwater and $5.6 million for water. The budgeted investments in infrastructure follow the plans previously created by the Village Council. The improvements are designed to reduce the total life cycle cost of owning and operating the infrastructure systems. (See page 6-2.)

E. Funding for Priority Action Items: The FY15 Proposed Budget provides funding for the priority action items identified by the Council to be completed in 2015.

The Village budget is comprised of 24 active funds. The total budget for all funds is approximately $126.4 million in revenues and $135.0 million in expenses. Expenses will exceed revenues in FY14 due to planned spending down of accumulated fund balance and the continued investment of bond proceeds into street, water and stormwater infrastructure projects.

Transportation Fund Eliminated -

The Transportation Fund has been eliminated because the Village will no longer operate the Grove Commuter Bus Shuttle, the only service provided by this fund. In 2014, the Village took two major steps regarding this service:

1) Used a portion of the General Fund balance to eliminate a $1.9 million deficit in the Transportation Fund, a result of several years during which the cost of providing the service exceeded available revenues, and

2) Terminated an agreement with PACE to manage the service on PACE’s behalf. The existing commuter shuttle routes will be served by a private PACE contractor and there will be no impact to commuters.

Village Manager’s Budget Message

Property Tax Levy Decrease Description

The total municipal budget relies on several sources of revenues, but the property tax levy is one of the most significant sources of funding. Property taxes account for approximately 23% of the General Fund budget. The Village’s property tax is comprised of five components that support specific services and obligations of the Village. The two most significant components of the levy are the levy for operations and the levy for pension obligations.

Recent History

Since FY11, the Village’s property tax levy for operations has been flat or decreased each year.

FY14 Budget Considerations

Equalized Assessed Valuation: Based on conversations with the Township Assessor’s Office, the total Equalized Assessed Valuation of all taxable property in the Village is expected to remain approximately the same.

In FY13, the Village shifted stormwater management costs from the property tax levy to the stormwater fund using a separate stormwater utility fee. This resulted in a decline in the total property tax levy of $1.98 million or 15.2%.

Operations: As proposed, the property tax levy for operations will not increase in FY15. This would be the fourth consecutive year of a flat or decreasing levy for operations. This reflects the Village’s commitment to controlling operating expenses and aligns with the Long Range Plan strategies.

Pensions: Due to strong investment returns exceeding return expectations, the property tax levies for the Police and Fire Pension Funds will decrease by nearly $180,000. (See page 4-4.)

Proposed Village Tax Levy

Under the proposed budget the total tax levy would decrease for the third time in four years.

Village Tax Levy FY11 to FY15 $16,000,000 $14,000,000

$13.38M

$12.98M

$12,000,000

$11.01M

$11.59M

$11.41M

FY13

FY14

FY15

$10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 FY11 Corporate Levy

FY12 Fire Protection

Fire Pension

Police Pension

Stormwater/Capital

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Village Manager’s Budget Message 1-4

Village Property Tax Levy FY14 vs. FY15 The components of the tax levy are shown in the table below.

Tax Levy Component

FY14

FY15

Corporate Levy

$2,997,145

$2,997,145

--

--

Fire Protection

$2,850,000

$2,850,000

--

--

Fire Pension

$2,467,520

$2,330,108

($137,412)

(5.57%)

Police Pension

$2,303,858

$2,261,516

($42,342)

(1.84%)

$971,524

$971,524

--

--

$11,590,047

$11,410,293

($179,754)

(1.55%)

Capital Total

Change

Percent Change

Impact of Proposed Tax Levy on a Typical Residential Property

In 2014 a typical residential property with a market value of $300,000 paid $574.30 to the Village. The taxable value of the same property is expected to remain unchanged in 2015. With the reduction in the Village property tax levy, a typical residential property would be expected to pay about $565.40 in Village property taxes, a reduction of $8.90.

Equalized Assessed Value Village Tax Rate Village Tax Amount

FY14

FY15

Difference

$100,000

$100,000

--

.5743

.5654

(.0089)

$574.30

$565.40

($8.90)

Village Manager’s Budget Message 1-5

Property Tax Breakdown

The Village portion of the property tax bill is generally about 9% of the total tax bill. Below is a breakdown of the percentage of distribution to local government entities from a typical tax bill. The information, as well as the property tax history of each parcel, is available on the DuPage County website at www.dupageco.org.

VILLAGE

Township

1.45% of DOWNERS College DuPage DuPage GROVE 4.66% County 9.05% 3.21% of

Distric 58

35.63%

Sanitary District

0.58% DuPage Airport Authority

0.28%

Forest Preserve District 99

Park District

32.66%

5.82%

Library

3.94%

2.61%

Sustainable General Fund Description

Recent History

Village Manager’s Budget Message

The General Fund is the main operating fund of the Village and includes funding for the majority of Village services. The proposed General Fund budget is sustainable and fiscally sound with revenues and expenses of $44.8 million. The General Fund derives its revenue from several sources, with the top four sources being property tax, sales tax, utility tax and state shared revenue (income tax).

Since 2009, the Village eliminated a structural gap in the General Fund by reducing staffing levels, implementing cost-cutting process improvements including significant savings in the areas of Fleet management and special events, and controlled health expenses.

Revenues increased 15.09%, an average of 2.51% per year, driven by increases in the distributed state income tax (19.94% increase since 2009), sales tax (15.04% increase since 2009) and some large one-time revenues due to commercial redevelopment. As a result, the Village established a strong fund balance of $20.4 million in FY13.

The Village used $3.8 million of the fund balance to eliminate the Transportation Fund accumulated deficit and to reduce the cash deficit in the Risk Fund (see Long Range Plan page 6).

The Village will add approximately $300,000 to the General Fund Fund Balance at the end of FY14. The projected fund balance will be 38% of 2015 expenses, within the Village’s policy and consistent with the LRP strategy to keep a AAA bond rating.

FY15 Budget Considerations

As proposed, the General Fund expenses would increase by 2.6% compared to the FY14 budget and 2.1% compared to FY14 estimated expenses prior to transferring funds to the Risk Fund and Transportation Fund. (See page 4-3.)

Personnel expenses, including salaries, health benefits and post-employment benefits such as pensions, account for about 77% of the General Fund. Personnel expenses would increase by .21% over the FY14 budget.

As proposed, non-personnel expenses would increase by 11.29%.

Revenues are budgeted to increase by 2.4% over the FY14 budget and 1.3% over the FY14 estimated revenues. The Village anticipates moderate growth in sales tax, income tax, licenses and permits. Consistent with the Long-Range Plan, user fees, licenses and permits will be adjusted at a rate similar to personnel expenses to align with the costs of providing services. (See page 4-4.)

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Village Manager’s Budget Message

Proposed General Fund Revenues & Expenses, FY10 to FY15 (in millions) Revenue

Expenses

Difference

Fund Balance

Fund Balance % of Expenses

FY10 (Actual)

$39.44

$39.20

$0.24

$15.68

40.00%

FY11 (Actual)

$41.86

$40.33

$1.52

$17.20

42.65%

FY12 (Actual)

$43.32

$41.31

$2.01

$19.20

46.48%

FY13 (Actual)

$43.56

$42.33

$1.23

$20.43

48.26%

FY14 Budget

$43.79

$43.70

$.09

$15.91

36.42%

FY14 Estimate Prior to Risk & Transportation Fund Transfers

$44.24

$43.91

$.33

$20.76

47.28%

FY14 Estimate Including Risk & Transportation Fund Transfers

$44.24

$47.71

($3.47)

$16.97

38.65%

FY15 Proposed Budget

$44.82

$44.82

--

$16.97

37.88%

Proposed General Fund Expenses by Category FY14 vs. FY15 Category Personnel Non-Personnel Total

FY14 Budget

FY15 Budget

Change

% Change

$34,399,433

$34,473,223

$73,790

0.21%

$9,299,180

$10,349,039

$1,049,859

11.29%

$43,698,613

$44,822,262

$1,123,649

2.57%

The FY15 Proposed Budget aligns with the Long-Range Plan goal to limit personnel-related cost increases. Employee wages are budgeted to increase by 3.0% while benefit expenses are budgeted to increase by 3.8%. The Village will see a decrease in annual pension contributions to for Police and Fire ($180,000) due to very favorable investment returns and IMRF ($350,000) due to the expiration of early retirement incentives offered to some employees in the early 2000s.

Pursuant to the strategy outlined in the Long-Range Plan, the Proposed Budget includes an increase in the annual contribution to the Risk Fund in FY15. This annual contribution of $1.3 million is considered a non-personnel expense. (See page 4-8.)

Other increases in non-personnel related expenses include $150,000 for an upgrade to the in-car camera system in the Police Department. This cost is offset by revenues from DUIs.

These increases would be offset by decreases for Emerald Ash Borer costs which are now being budgeted in the Capital Fund, and in most other non-personnel accounts due to Lean improvements throughout the organization. (See EAB Report.)

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Village Manager’s Budget Message

Top Ten General Fund Revenues RANK

FY 2012 Actual

SOURCE

1

Sales Tax

2

FY 2013 Actual

FY 2014 Budget

FY 2014 Estimate

FY 2015 Budget

$10,772,180

$11,345,002

$11,300,000

$11,600,000

$11,850,000

Property Taxes - Operations

$6,728,914

$5,898,786

$5,847,145

$5,847,145

$5,847,145

3

Utility Taxes

$5,690,708

$5,275,316

$5,505,000

$5,258,000

$5,440,000

4

State Income Tax

$4,203,160

$4,557,546

$4,400,000

$4,570,000

$4,750,000

5

Property Taxes - Pensions

$3,747,734

$4,218,455

$4,771,378

$4,771,378

$4,591,624

6

Home Rule Sales Tax

$1,862,873

$1,909,870

$1,975,000

$1,975,000

$2,000,000

7

Building Related Permits

$1,445,138

$1,234,564

$1,023,000

$1,250,000

$1,250,000

8

Cellular Equipment Rental Fees

$1,105,625

$1,175,653

$1,195,844

$1,200,000

$1,128,000

9

Ambulance Fees

$1,112,859

$1,060,869

$1,100,000

$1,100,000

$1,107,000

$832,460

$851,675

$860,000

$860,000

$860,000

Sub -total

$37,501,651

$37,527,736

$37,977,367

$38,431,523

$38,823,769

All Other Total

$5,821,723

$6,030,308

$5,815,451

$5,807,517

$6,000,855

Total General Fund Revenues

$43,323,374

$43,558,044

$43,792,818

$44,239,040

$44,824,624

10

Hotel Tax

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Staffing Reduction Description

Recent History FY15 Budget Considerations

Village Manager’s Budget Message 1-9

Personnel expenses make up approximately 77% of total expenses. The Village continually seeks to reduce or control personnel expenses by seeking alternative service providers, consolidating functions with other entities or using technology to make existing employees more efficient.

Since 2009, the Village has reduced its total staffing by 37.2 FTEs from 366.5 to a proposed 329.3 in FY15. This was accomplished through various methods, including attrition, involuntary reductions in staff, and consolidation of services with other entities.

The Proposed Budget would reduce the total number of FTEs by 3.6 over the FY14 total. This is a result of the following actions: ● The transition of Grove Commuter Shuttle to a PACE operated system resulted in the elimination of 3.4 part-time bus driver positions. ● The elimination of the vacant Community Development Director position. The responsibilities previously assigned to this position have been reassigned to the Building Division Manager and the Planning Manager. Additional assistance in building permit plan review, building inspections and code enforcement inspections will be provided using private sector contractors. ● Addition of a Management Analyst position in the Village Manager’s Office - Using a portion of the funds made available by the elimination of the Community Development Director position, the FY15 budget includes a Management Analyst position that will support key functions in most Village departments.

Improved Efficiency Community Development

In support of the Village’s Long-Range Plan goal to reduce personnel costs and increase operating efficiencies, the Village implemented a plan to improve Community Development Department services by eliminating a director-level vacancy, reassigning responsibilities and adding resources for building permit plan review, building inspections and code enforcement.

The plan will allow the Village to continue to provide existing service levels at a lower overall cost by using part-time employees and private contracted firms. This approach allows the department to be more flexible and well-positioned to respond to changes in building permit activity and seasonal staffing demands.

Continued Investment in Infrastructure

The Village’s strategic goal to provide Top Quality Infrastructure requires a commitment to ongoing investment in maintenance, as well as investment in replacing or building new infrastructure. Since 2010, the Village has created and followed plans for sustainable funding for infrastructure. As a result, the Village has made major investment in streets, the stormwater system, the water systems and sidewalks.

The FY15 proposed budget calls for continued investment in infrastructure. The investment allocation is shown to the right. (See section 6.)

FY15 Capital Budget by Major Program Type Wa ter 24%

Ma jor Buildings 4%

Streets 40%

Tra ffi c, Bikeways a nd Other Projects 3%

Stormwa ter a nd Dra i nage 19% Pa rki ng Deck and Pa rking Lots 7%

Si dewalks 3%

Village Manager’s Budget Message 1-10

Description

Recent History

The Village maintains several major infrastructure systems: streets, sidewalks, stormwater and water. In addition, the Village manages public facilities, traffic and streetlight systems and the parking deck and parking lots. The Village has both long and short-term spending plans for each of its major systems. Short-term spending plans are in the annual Community Investment Plan.

In 2014, the Village will complete approximately $20 million of infrastructure projects including: Streets - Completed $6.96 million in street reconstruction projects (Downers Grove Estates, Esterbrook and Brook & Center) and $4.91 million in street maintenance projects.

Stormwater - Completed $3.57 million in new projects to mitigate flooding. Acquired and demolished houses susceptible to recurring flooding.

Water - Completed $3.75 million in new watermains, valves and hydrants.

FY15 Budget Considerations

Sidewalks - Completed $860,500 in new sidewalks and sidewalk maintenance, as well as ADA-compliant right-of-way improvements.

The Proposed FY15 Budget includes $23.5 million for continued investment in the Village’s water, streets, stormwater, sidewalk and other systems.

Streets - The Proposed FY15 Budget includes $5.1 million for street reconstruction projects (Brookbank Road-59th to 60th St, Clyde Estates, Orchard Brook East, Maple-Fairview to Cumnor, and Lacey Road-north of Ogden) and $4.4 million for street maintenance projects on nine miles of streets. Street reconstruction projects are funded by the 2012 bond issuance; maintenance activities are funded by the Motor Fuel Tax, Home Rules Sales Tax and Local Gasoline Tax. (See page 4-28 - 4-30.)

Stormwater - The Proposed FY15 Budget includes $4.56 million in CIP projects and approximately $1.9 million in operations and maintenance. Revenues for stormwater expenses are provided by stormwater utility fees. These fees are budgeted to increase by 8.7% in FY15.

The budget calls for continued spending of existing fund balance in the Stormwater Fund for capital projects as well as gradually increasing maintenance activities in order to reach the full maintenance goals by 2028. (See page 4-20.)

Water - The Proposed FY15 Budget includes $5.6 million for water infrastructure projects, including $2 million for the replacement of the meter transmission units, which transmit utility readings from customers to the Village’s billing system. (See AMR Report.) The proposed budget includes a 14% increase in water rates to cover the cost of purchasing water from the City of Chicago via the DuPage Water Commission as well as capital costs for system maintenance and replacement. (See page 4-24.)

Sidewalks - As proposed, the FY15 Budget would include $500,000 for new sidewalk construction projects, $211,000 for sidewalk maintenance and $50,000 for crosswalk and accessibility improvements. (See page 4-30.)

Parkway Trees - The Proposed FY15 Budget $261,300 for the installation of new parkway trees including funding for the removal and replacement of trees affected by the Emerald Ash Borer (see EAB Funding and Operations).

Village Manager’s Budget Message

Improving the Streets in Downers Grove

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There are two major categories of street condition: Maintainable and In Need of Reconstruction. Maintainable condition refers to a street that is crack-filled, patched and resurfaced on a regular schedule, allowing it to continue to function. Streets that do not receive that level of maintenance investment eventually fall into the category of In Need of Reconstruction. This means that the pavement has failed and is not salvageable. Reconstruction is the most expensive and disruptive type of pavement project and it is four times as expensive to reconstruct a street segment as it is to maintain it regularly.

The Village is currently in the process of bringing all of its streets up to Maintainable condition by the end of 2015. At that point, fewer than 1% will be considered failed. The existing level of funding for infrastructure maintenance is insufficient to maintain this level of maintenance and without additional funding, a significant portion of the Village’s street segments will need reconstruction by 2040.

An additional $1.2 million in annual funding will keep 99% of street segments in Maintainable condition. The charts below show how the Village has improved the condition of streets since 2010. During the Long-Range Plan process, the Village identified existing revenue sources that can be reallocated to street maintenance beginning in 2016.

Street Condition in 2010 In Need of Reconstruction

Maintainable

78%

Percentage in maintainable condition vs. in need of reconstruction

22%

Street Condition in 2012 In Need of Reconstruction

Maintainable

84%

16%

Percentage in maintainable condition vs. in need of reconstruction

Street Condition in 2015 In Need of Reconstruction

Maintainable

99%

Percentage in maintainable condition vs. in need of reconstruction

1%

Effect Of Proposed Water Rate Increase On Typical Resident Typical Residential User - Bi-Monthly Bill 2014 Typical Bill

2015 Bill (Plan 9% increase for fixed charge, 14% increase per unit)

$90.00

Typical Residential User (15 units bi- monthly, 5/8” Fixed Meter Charge)

$101.99

Effect Of Recommended Stormwater Fee Increases

The Stormwater Utility plan calls for an increase of approximately 8.7% in FY15. The fee per ERU will increase from $8.94 in FY14 to $9.72 per month in FY15.

Single Family Residential

2014 Fee

2015 Recommended Fee

Typical Residential Property (2,501- 4,000 square feet of impervious area) = 1 ERU

$8.94 per month $107.28 per year

$9.72 per month $116.64 per year

Village Manager’s Budget Message

Priority Action Items

In the FY14 Long-Range Plan process, the Village Council identified action items to further the Village goals. The FY15 Proposed Budget includes resources to accomplish several action items.

Action Item

Funding

Complete Facilities Sustainability Plan and Implementation

The FY15 Proposed Budget includes $4.5 million for the acquisition and improvements of land in the Ogden Avenue TIF, $1.5 million in the Asset Forfeiture Fund, professional services design work and related consulting services on the police station project, and $150,000 in the Major Buildings Fund. (See attached report)

Construct Gateway Signs

The FY15 Proposed Budget includes $100,000 in the Capital Projects Fund for construction costs.

Continue to Improve Resident Engagement

This project will be completed by staff. No specific additional funding is required (See attached report)

Develop Employee Compensation Strategy

This project will be completed by staff. No specific additional funding is required.

Negotiate Collective Bargaining Agreements (Police and Public Works)

This project will be completed by staff. No specific additional funding is required.

Consider Amendments to Stormwater Management

This project will be completed by staff. No specific additional funding is required.

Develop a Standard for ROW Improvements

This project will be completed by staff. No specific additional funding is required.

Update New Construction Sidewalk Plan

This project will be completed by staff. No specific additional funding is required.

Continue to Implement Downtown Parking Plan

This project will be completed by staff. No specific additional funding is required.

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Impact of Budget on Typical House Category Property Tax Stormwater Fee Water Fees TOTAL ANNUAL IMPACT OF BUDGET

Village Manager’s Budget Message

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Annual Increase/(Decrease) ($8.90) $9.36 $71.94 $72.40

Risk to Budget

Risks to the Adopted Budget - As discussed during the Long-Range Plan process, the Village faces an ongoing risk that the State of Illinois will decrease or eliminate funding to municipalities currently provided through the Local Government Distributive Fund.

The Village currently receives approximately $4 million in a per-capita share of the State’s Income Tax. Additionally, while the revenue increases are conservative, there is a chance that the economic recovery could slow, reducing revenues below budget.

The Village’s status as self-insured also represents a risk to the General Fund. The Village maintains insurance against catastrophic claims but smaller, unanticipated claims have the potential to impact the budget significantly.

Staff will monitor and report revenue performance to the Village Council as necessary throughout 2015. If revenues fall short of the budget, the Village should be ready to discuss amendments to the budget at any time during 2015. The amendments, if necessary, could increase expense reductions, use of reserves or additional revenue enhancements.

Supplemental Reports

Facilities Planning Report Stormwater Utility Fee and Spending Modeling Stormwater Utility Restructuring Community Grants Report Automated Meter Reading Report Customer Response Management System Report Emerald Ash Borer Funding and Operations Research and Development Proposal

Memorandum

To: Mayor & Village Council From: David Fieldman, Village Manager Date: September 26, 2014 Topic: Facility Sustainability Plan _______________________________________________________________________

During the past ten months, the Village Council and staff have worked together to prepare a Facility Sustainability Plan. After considering a wide range of options, the Village Council indicated that the facility sustainability plan should be based on “Option 4­ Mixed Use, Partnership Option.” This report:

● Provides background about the facility planning process ● Summarizes the key components of the Facility Sustainability Plan ● Includes a preliminary facility project budget ● Identifies and explains the revenue sources that will be used to pay for project expenses ● Explains the impact of the facility sustainability plan on the Village’s bonding capacity ● Shows the impact of the facility sustainability plan on the proposed FY15 municipal budget

Background In the 2013­15 Long Range Plan, the Village Council identified as one of the high priority action item the creation of a Facility Sustainability Plan. The action item update sheet is available here: http://www.downers.us/public/docs/mayor_council/StrategicPlanUpdates/2014_Action_Items/HPAI_Re port%20_FacilitySustainability.pdf

The Village made progress on this project in 2014, focusing efforts around: ● Understanding the vision and preferences of the Village Council ● Evaluating a wide range of options available for the successful completion of this project ● Engaging the community on the project options and decision­making

Facility Sustainability Plan At the Council Meeting on September 9, 2014, the Village Council indicated that the facility sustainability plan should be based on “Option 4 ­ Mixed Use, Partnership Option.” This plan calls for the construction of public facilities and private developments in two phases at two separate locations.

Phase 1 includes the construction of a new Police Station, Fire Station #1, (now located in Ellsworth Business Park) and Vehicle Fleet Maintenance Facility approximately 80,000 square feet in area on the rear portion of the vacant 9.8 acre property on Ogden Avenue at Lacey Avenue (see aerial photo

below). The front portion of the property would be developed with privately owned commercial buildings.

The budgeted cost for this phase is $38 million and would be paid for with Ogden Avenue TIF District funds (for the cost of acquiring the public portion of the land and the cost of making improvements to the property that benefit both the Village facility and the private commercial development) and a general obligation bond supported by existing property taxes, existing local gasoline taxes and new revenue sources likely to include property taxes. The Village would also explore the use of grant funding.

Site development and design of the Village facility is expected to take place in 2015. Construction of the Village facility is expected to take place in 2016.

Phase 2 includes the construction of a new Village Hall, approximately 40,000 square feet in area, on the west side of the Civic Center property (south of the railroad tracks, east of Washington Street; see aerial photo). Further, the plan calls for the balance of the Civic Center property, east of the new Village Hall, to be sold to a real estate developer to be improved with approximately 200 or more residential units (apartments or condominiums). The budgeted cost for this phase is $14 million. The construction of the new Village Hall would be funded by the proceeds of the sale of land to the developer and the property taxes paid by the new residential development for 23 years following the commencement of construction. A tax increment financing district would be created to capture these property tax revenues and would be used to support Village Hall construction costs.

Design of the new Village Hall is expected to begin in late 2015 with construction starting in early 2017.

Summary of Village Facility Sustainability Plan

What?

Why?

Phase 1

1. Make site improvements to 9.8 acre Ogden & Lacey parcel 2. Construct combined municipal facility on rear portion of site 3. Facilitate commercial development of Ogden Avenue frontage

Allow for the relocation and consolidation of municipal buildings (police station, fire station & fleet services) to property that: 1. Has limited commercial value 2. Meets Village’s operational needs 3. Helps facilitate commercial/economic development

Phase 2

1. Construct new facility on existing site (Village Hall & possible partners) 2. Facilitate residential/mixed­use redevelopment of remaining site

Leverage private redevelopment of the site to: 1. Provide funding sources for public facilities 2. Achieve comprehensive plan goal of providing transit oriented residential development in the downtown

Preliminary Project Budget Staff prepared the following preliminary budget which was used during the Village Council discussion of the facility plan options. This budget is suitable for planning and preparing the FY15 municipal budget.

However, it is not detailed enough to serve as the development and construction budget. One of the first next steps in the project is to prepare a detailed project budget with the assistance of an owner’s representative and a professional cost estimator. The detailed project budget should be completed by the end of 2014.

Expenses

$ (in millions) Revenues

$ (in millions)

Phase 1

Professional Services Land Acq./Site Dev. Hard Costs Furniture, Fixtures & Equipment Contingency Total

2.4 5.8 25.0 1.8

3.0 38.0

Ogden TIF Asset Forf. Fund Bond Issue Existing Rev. (12.0) New Rev. (19.5)

Total

5.0 1.5 31.5

38.0

Phase 2

Professional Services Hard Costs Furniture, Fixtures & Equipment Contingency Total

1.2 11.0 0.8

1.0 14.0

Land Sale New TIF Revenue

Total

4.0 10.0

14.0

Revenue Sources to be Used for Project Costs Ogden TIF: $5.0 Million ­ With the existing balance in the Ogden TIF fund of $4.75 million and budgeted annual revenue from tax increment of just over $600,000, the Ogden TIF fund can provide $5.0 million for Phase 1 expenses. The money would be used to pay for the cost of acquiring the public portion of the land and the cost of making improvements to the property that benefit both the Village facility and the private commercial development. Expenses would be paid over two years (2015 and 2016).

Bond Issue: $31.5 Million ­ The Village would issue a bond of up to $31.5 million to pay for the cost of designing, constructing and furnishing the Village facility. The estimated annual debt service payments on a $31.5 million bond with a 20­year amortization period range from $2.0 million to $2.25 million. The Village has existing revenues in place that are currently used to make debt service payments on existing library construction bonds (about $600,000 per year) and Fairview Avenue reconstruction bonds (about $200,000 per year). Both bonds will be retired in 2016. The existing revenues of approximately $800,000 will be used to make debt service payments on the facility bond issuance. Up to $1.2 million in new annual revenue will have to be generated to make the annual payments on the planned bond issuance.

Asset Forfeiture Fund: $1.5 Million ­ The Asset Forfeiture Fund has a current balance of $1.27 million and generates approximately $500,000 per year. $1.5 million will be available to pay for Phase 1 project expenses in 2015. Revenues in this fund are unpredictable and highly variable. It is possible that

future year revenues collected in 2016 and 2017 may be allocated to pay for a portion of project construction costs.

Land Sale Proceeds: $4.0 Million ­ The facility sustainability plan calls for the Village to sell the east portion of the Civic Center property to a private developer. The property would be developed with a minimum of 200 residential units (mid­rise development with apartments or condominiums, in conformance with Village plans and ordinances). The sale of this property for this purpose is expected to generate a minimum of $4.0 million. This money would be used to pay for Village Hall development costs.

New TIF Revenue: $10.0 Million ­ The facility plan calls for the Village to create a new tax increment financing (TIF) district that includes only the Civic Center property. With the creation of the new TIF district, all of the property taxes generated and paid by the new residential development would be used to pay for Village Hall development costs. The TIF district would generate property tax revenue for 23 years commencing with the start of construction. This revenue stream is expected to generate a total of over $15 million during this period. This revenue stream could be used to fund a Village bond issuance, could be pledged to the residential developer as income allowing the developer to increase the land purchase price, or could be sold to a third party for up­front cash. In any case, the revenue would be used to pay for Village Hall development costs.

Impact of the Facility Sustainability Plan on the Village’s Bond Capacity The Village could be issuing bonds of up to $41.5 million to construct the facilities. The Village’s financial advisor, Northern Trust, performed an analysis of the potential bond ratings on all potential bond issuances, including bonds for facilities. They concluded that the Village’s overall net debt as a percent of market valuation will continue to remain low and below the Standard & Poor’s guideline.

Project Schedule Milestone

Timeframe

Phase 1 ● Select Professional Services Firms ● Present Proposed Redevelopment Agreement for Ogden & Lacey Property ● Approve Space Program ● Approve Final Design Plans ● Develop Ogden & Lacey Site ● Award Construction Contract

By December 2014

By January 2015

By April 2015

By July 2015

By November 2015

By January 2016

● Construct Facility

By Spring 2017

Phase 2 ● Select Professional Services Firms ● Approve Village Hall Space Program ● Select Developer ● Approve Site Concept Plans ● Approve Redevelopment Agreement ● Approve Final Plans ● Approve TIF District ● Construct Facility

By December 2015

By March 2015

By January 2016

By May 2015

By July 2016

By December 2017

By Spring 2018

By Spring 2018

Impact to FY15 Budget The FY15 proposed budget includes $6.15 million for the implementation of the facility plan. Funding for this project appears in the following funds and for the following purposes: Fund 114 Asset Forfeiture Fund

$1.5 Professional Services and Design of Police Facility

110 Ogden Avenue TIF

$4.5 Purchase of property and site improvements associated with the Ogden and Lacey Site

223 Major Buildings Fund

$ (in millions) Purpose

$0.15 Professional Services

Memorandum

To: Mayor & Council From: David Fieldman, Village Manager Re: Potential Changes to Stormwater Utility Plan Date: September 26, 2014 _______________________________________________________________________

At the August 9 Long­Range Plan Meeting, the Village Council asked staff to provide alternatives to the existing stormwater utility revenue and expense plan. This report outlines the results of two alternative scenarios that would increase spending on maintenance while reducing spending on capital improvements without changes to planned revenue.

The FY15 Stormwater Fund budget includes approximately $3.8 million in revenues. The Village allocates funding between annual capital projects, existing debt service and operations and maintenance (O&M). Over the next two years, the Village will spend down remaining fund balance in the Stormwater Fund before relying exclusively on stormwater fee revenues for capital improvements (including bond issuances) and O&M expenses.

Without changing the plan for revenue generation (stormwater fees), the Village could increase maintenance spending from the planned $2 million to up to $3 million beginning in 2015 ($4 million is the recommended level). This incremental spending in maintenance would be directed primarily toward additional storm sewer maintenance (televising and cleaning) and street sweeping. However, this additional funding for maintenance would reduce funding for capital projects that were identified after the April 2013 flood.

Analysis Existing Plan: ­ The existing stormwater fund revenue and expense plan will increase maintenance activities from the current level to the recommended level by 2028 and allow for $4.0 to $6.1 million in capital projects each year. The projects will be completed over ten years beginning in 2017. This plan calls for annual rate increases of approximately 8.7%.

This plan has two major components:

● Spend approximately $2 million on maintenance in FY15 ­ about 50% of the recommended amount ­ and increase budget for maintenance incrementally each year. ● Complete 26 major capital projects between 2017 and 2023 with $10 million bond issuances in 2017 and 2020 (See attachment for list of planned capital projects.)

Alternative Scenario 1: In this scenario, spending on annual O&M activities would be initially increased to $2.4 million (about 60% of the recommended funding amount) and spending on capital projects would be reduced by $400,000. The scenario would result in: ● Increased televising and cleaning storm sewers ● Increased street sweeping ● Elimination of three floodplain projects and three local drainage projects

Alternative Scenario 2: In this scenario, spending on annual O&M activities would be initially increased to $3 million (about 75% of the recommended funding amount) and spending on capital projects would be reduced by $1 million. Due to annual existing debt service payments of $1.14 million, this is the maximum that could be reallocated to maintenance with existing revenues. The scenario would result in: ● Further increased televising/cleaning storm sewers ● Further increased street sweeping ● Elimination of 17 future capital projects identified after the April 2013 floods

The table below summarizes the impacts of each scenario.

Recommended Level of Service

Annual O&M Spending

$4.0 Million

Annual O&M Activities

Televising/Cleaning 143,000 lineal feet of Sewers

Street Sweeping 2,150 curb miles Capital Projects to be Completed by 2017

NA

Existing Plan

Alternative 1

$2.0 Million

$2.4 Million

20,000 lineal feet

764 curb miles

85,000 lineal feet

1,300 curb miles

26 9 previously identified in CIP 17 new

Alternative 2 $3.0 Million

143,000 lineal feet

2,150 curb miles

20 9 previously identified in CIP 9 previously identified 11 new in CIP

Lists of Planned Capital Projects for Each Alternative

Capital Projects to be Constructed Per Current Plan St Joseph Creek, South Branch ­ Streambank Stabilization ­ Phase 2 St Joseph Creek, Main Branch ­ Japanese Knotweed Control Cumnor Rd,between Sheldon and Chicago ­ Structure Replacement Lacey Creek ­ Streambank Stabilization ­ Phases 2 & 3 PW Parking Lot Reconstruction Stormwater Quality Improvements Chicago & Washington, Local Drainage Improvements Clyde Estates, Local Drainage Improvements Headwall Replacement, Gilbert and Brookbank Headwall Replacement, Grand at 55th St. Middaugh and Jefferson, Local Drainage Improvements Drendel Road South of Indianapolis, Local Drainage Improvements Francisco at Burlington north, Local Drainage Improvements Pershing Between Ogden and Grant, Local Drainage Improvements Downers Drive/Virginia Street/Seeley Ave./40th st.­Bellaire to Seeley, Local Drainage Improvements Washington south of Ogden/Highland Court, Local Drainage Improvements Walbank North of Warren, Local Drainage Improvements Downers Drive/Virginia Street/Seeley Ave./40th st., Local Drainage Improvements Elm and Earlston Between Ogden and 41st St., Local Drainage Improvements Black Oak Drive Between Saratoga and Candlewood, Local Drainage Improvements Debolt/Linden/Gierz, Local Drainage Improvements Benton and Elmwood Between Maple and Randall, Floodplain Improvements Deer Creek Subdivision, Floodplain Improvements St. Joe's Creek north of Railroad, Floodplain Improvements South of Prairie Between Forest and Prince, Local Drainage Improvements Chase Avenue between Haddow and Warren, Local Drainage Improvements Hobson Triangle Area, Local Drainage Improvements

Alt. 1 yes yes yes yes yes yes yes yes yes yes yes yes yes

Alt. 2 yes yes yes yes yes yes yes yes yes NO NO NO NO

yes yes yes yes yes yes yes NO NO NO NO NO NO

NO NO NO NO NO NO NO NO NO NO NO NO NO

Memorandum

To: Mayor & Council From: David Fieldman, Village Manager Re: Stormwater Utility ­ Exempting Property Tax Exempt Parcels Date: September 26, 2014 _______________________________________________________________________

Background At the September 9, 2014 Village Council meeting, under New Business Commissioner Barnett requested that the Council consider restructuring the stormwater utility to exempt property tax exempt parcels (PTE’s) from paying stormwater fees. This report explains the impact of making this change.

Analysis ● All parcels in the Village are charged stormwater fees based on the amount of impervious area located on the parcel.

● The current stormwater fee is $8.94 per Equivalent Residential Unit (ERU) per month. An ERU is 3,300 square feet of impervious area.

● The proposed stormwater fee for FY15 is $9.72 per ERU.

● The FY15 Stormwater Fund budget includes revenues from stormwater fees of $3.65 million.

● Stormwater fees paid by PTE’s account for approximately $218,000 of the FY15 budgeted revenue.

● Exempting PTE’s from paying stormwater fees would reduce stormwater fee revenue by about $218,000 to $3.43 million.

● If the Village were to raise stormwater fees on all other parcels to make up for the loss of $218,000 of revenue, the stormwater fee would have to be increased from the proposed $9.72 per ERU to $10.34 per ERU.

Impact of Exempting PTE’s from Stormwater Fees

Fee per ERU Annual Revenue Revenue from PTE’s

Proposed Exempting PTE’s, FY15 Budget No Change to Fee

Exempting PTE’s, Increase Fee to Maintain Total Revenue

$9.72

$9.72

$10.34

$3.65 Million

$3.43 Million

$3.65 Million

$218,000

­­

­­

Attachments 2014 Stormwater Fees for PTE’s

Annual Stormwater Fees* for Property Tax Exempt Parcels Billing Name 1ST BAPTIST CHURCH 1ST CHURCH CHRIST SCIENT 1ST PRESBYTERIAN CHURCH ADVOCATE HEALTH CARE AVERY COONLEY SCHOOL BETHEL EVANGELICAL CHILDSERV INC COMM HOUSING ASSN DUPAGE DIOCESE OF JOLIET DOWNERS GROVE CHURCH DOWNERS GROVE COMM CHURCH DOWNERS GROVE PARK DIST DOWNERS GROVE PUBLIC LIB DOWNERS GROVE SAN DIST DOWNERS GROVE TOWNSHIP FAITH UNITED METHODIST FAMILY SHELTER SERVICE FIRST BAPTIST CHURCH FIRST CHRISTIAN CHURCH FIRST CONGREGATIONAL FIRST PRESBYTERIAN CHURCH FIRST UNITED METHODIST FOREST PRESERVE DISTRICT GLORIA DEI LUTHERAN GOOD SHEPHERD EVANGELICAL GROVE SENIOR LIVING LP HOBSON RD COMMUNITYCHURCH IL ST TOLL HWY AUTH ILL ASSOC OF 7TH DAY ADV IMMANUEL EVANGELICAL IMMANUEL RESIDENCES JEHOVAHS WITNESSES LITTLE FRIENDS INC MARQUETTE MANOR MIDWESTERN UNIVERSITY PROVIDENCE DOWNERS GROVE RAY GRAHAM ASSOCIATION ROMAN CATHOLIC DIOCESE SCHOOL DISTRICT NO 58 SCHOOL DISTRICT NO 99 SENIOR HOME SHARING INC ST ANDREWS EPISCOPAL ST LUKE PRESBYTERIAN ST MARY OF GOSTYN PARISH ST PAULS UNITED CHURCH UNITED STATES OF AMERICA VILLAGE OF DOWNERS GROVE WEST SUBURBAN HUMANE SOC YMCA OF CHICAGO

PIN Count Total ERUs 1 1 1 9 6 1 1 5 20 2 3 153 3 19 5 1 1 2 3 1 1 3 21 1 3 1 2 4 1 6 1 2 6 2 3 2 3 2 38 21 1 5 1 1 4 3 120 3 1

3 5 1 51.9 48.3 1 2 15 111.3 14 16.3 563.4 11 237.5 1.5 19 9 17 22 10 14 24 68.9 13 22 26 20 39 22 22 19 16 39.34 80 61.3 45 6 7 505.9 433 2 12 7 1 19.3 11 372.96 6.3 53

BiMonthly Fee

Annual Fee

$ 53.64 $ 321.84 $ 89.40 $ 536.40 $ 17.88 $ 107.28 $ 927.96 $ 5,567.76 $ 863.60 $ 5,181.60 $ 17.88 $ 107.28 $ 35.76 $ 214.56 $ 268.20 $ 1,609.20 $ 1,990.03 $ 11,940.18 $ 250.32 $ 1,501.92 $ 291.43 $ 1,748.58 $ 10,073.28 $ 60,439.68 $ 196.68 $ 1,180.08 $ 4,246.47 $ 25,478.82 $ 26.80 $ 160.80 $ 339.72 $ 2,038.32 $ 160.91 $ 965.46 $ 303.95 $ 1,823.70 $ 393.36 $ 2,360.16 $ 178.80 $ 1,072.80 $ 250.32 $ 1,501.92 $ 429.11 $ 2,574.66 $ 1,231.86 $ 7,391.16 $ 232.44 $ 1,394.64 $ 393.36 $ 2,360.16 $ 464.88 $ 2,789.28 $ 357.60 $ 2,145.60 $ 697.32 $ 4,183.92 $ 393.35 $ 2,360.10 $ 393.36 $ 2,360.16 $ 339.72 $ 2,038.32 $ 286.07 $ 1,716.42 $ 703.38 $ 4,220.28 $ 1,430.40 $ 8,582.40 $ 1,096.04 $ 6,576.24 $ 804.60 $ 4,827.60 $ 107.28 $ 643.68 $ 125.16 $ 750.96 $ 9,045.41 $ 54,272.46 $ 7,742.00 $ 46,452.00 $ 35.76 $ 214.56 $ 214.56 $ 1,287.36 $ 125.16 $ 750.96 $ 17.88 $ 107.28 $ 345.08 $ 2,070.48 $ 196.68 $ 1,180.08 $ 6,668.34 $ 40,010.04 $ 112.64 $ 675.84 $ 947.64 $ 5,685.84 Total $ 335,480.82

Annual Credits

$ (1,400.00)

$ (1,104.98)

$ (60,439.68) $ (12,739.41)

$ (7,391.16)

$ (4,291.20)

$ (14,727.00) $ (15,455.72)

$ (117,549.15)

Annual Net

Notes

$ 321.84 $ 536.40 $ 107.28 $ 4,167.76Various Credits (0632306003, 008, 009, 014, 025, 026, 032) See 13-SWU-0190. $ 5,181.60 $ 107.28 $ 214.56 $ 1,609.20 $ 10,835.20St Mary's Church 2013/2014 Education Credit 5 PINs 0908221001, -014, -015, -027, -028 $ 1,501.92 $ 1,748.58 $ -100% Partnership Credit $ 1,180.08 $ 12,739.4150% Credit on 16 PINs Direct Discharge $ 160.80 $ 2,038.32 $ 965.46 $ 1,823.70 $ 2,360.16 $ 1,072.80 $ 1,501.92 $ 2,574.66 $ -100% Partnership Credit $ 1,394.64 $ 2,360.16 $ 2,789.28 $ 2,145.60 $ 4,183.92 $ 2,360.10 $ 2,360.16 $ 2,038.32 $ 1,716.42 $ 4,220.28 $ 4,291.2050% Direct Discharge Credit $ 6,576.24 $ 4,827.60 $ 643.68 $ 750.96 $ 39,545.462014/2015 Education Credit (4,909 Students x $3) $ 30,996.282014/2015 Education Credit (2,152 Students x $3) plus Site Runoff, Vol Red, and Water Qlty $ 214.56 $ 1,287.36 $ 750.96 $ 107.28 $ 2,070.48 $ 1,180.08 $ 40,010.04 $ 675.84 $ 5,685.84 $ 217,931.67 *Annual fees extrapolated from billing data as of August, 2014.

Memorandum

To: Mayor & Council From: David Fieldman, Village Manager Re: Community Grants Program Report Date: September 26, 2014 _______________________________________________________________________

At the September 9, 2014 meeting, under New Business Mayor Tully requested staff to prepare a report on the Community Grants Commission that would facilitate Council discussion of re­instating the community grants program.

Background The Community Grants Program exists to provide, on a discretionary basis, under the sole discretion of the Downers Grove Village Council, monetary grants to not­for­profit organizations to promote, conduct or sponsor community oriented activities that contribute to the quality of life for Village residents. The Mayor, subject to confirmation by the Village Council, appoints the seven members on this Board, who serve three­year terms and one student member who serves a one­year term.

On December 21, 2004, Village Council passed an ordinance whereby, the amount of funds for the Downers Grove Community Grants Program shall be established on an annual basis through the normal budgeting process and shall equal eight percent (8%) of the Downers Grove Hotel Tax generated in the fiscal year preceding the budget year or $48,000, whichever is greater. The amount budgeted shall be exclusive of any donations. The Community Grants Commission develops criteria for use as guidelines in the preparation and review of grant requests. Priority is typically given to projects that include the following criteria: ● Celebrate and contribute to the cultural arts in the community ● Contribute to the positive image of the Village ● Introduce new events or activities to Downers Grove ● Demonstrate sound management practices by their sponsors ● Indicate sources of funding in addition to the Village grant request ● Attract visitors to Downers Grove ● Provide activities open to the public ● Demonstrate the potential to become financially self­sustaining ● Take place in Downers Grove

In 2010, the Village suspended the community grants program as part of the restructuring of the General Fund.

Impact on the Proposed FY15 Budget If the Council were to fund community grants in the FY15 budget, the cost of the program would be $68,800 (8% of the estimated hotel tax revenue of $860,000). Funding the program at this level without making other changes to the budget would increase General Fund expenses by $68,800.

Table 1 Impact on Proposed FY15 General Fund Budget

Proposed FY15 GF Budget

FY15 GF Budget with Community Grants Funding

Revenues

44,824,624

44,824,624

Expenses

44,822,262

44,891,062

2,362

(66,438)

Change in Fund Balance

Impact on the FY14 Budget If the Village had funded the community grants program in FY14, the cost of the program would have been $68,800 (8% of the estimated hotel tax revenue of $860,000).

Funding History From 2005 to 2009, the Village awarded nearly $335,000 in grant funding to 24 entities.

Table 2 Community Grants Funding, 2005­2009

Year

Number of

Entities Receiving Amount Awarded Funds

2009

$79,519

17

2008

$79,200

15

2007

$70,089

20

2006

$43,504

17

2005

$62,619

20

Table 3 Funding by Recipient, 2005­2009

Recipient

2005

2006

2007

2008

2009

Total

A.A.U.W.

2,000

2,000

­­

­­

­­

4,000

DG Choral Society

10,000

6,000

12,000

15,000

15,000

58,000

DG Concert Association

10,000

4,000

11,000

11,000

11,000

47,000

DGSHS Band Boosters

2,100

3,200

­­

6,500

5,000

16,800

Grove Players

4,100

5,000

6,000

7,920

8,300

31,320

Midwest Ballet Theater

6,200

6,000

4,400

7,000

8,400

32,000

New World Repertory Theater

4,000

5,000

5,500

6,000

6,800

27,300

Our Town Productions

4,000

­

4,500

­­

­­

8,500

West Town Chorus

2,229

2,300

3,489

6,230

5,000

19,248

Senior Suburban Orchestra

2,000

­­

3,000

5,000

5,000

15,000

600

­­

600

700

500

2,400

1,000

1,500

1,500

2,000

1,819

7,819

400

400

400

­­

­­

1,200

DG Kiwanis DG Rotary Squires of Downers Grove

West Suburban Humane Soc

2,000

2,000

2,000

3,000

2,000

11,000

YMCA

2,100

1,700

1,700

­­

­­

5,500

Downtown Management

3,000

3,000

6,000

3,500

3,000

18,500

Friends of the Library

500

500

500

500

400

2,400

DG Junior Woman’s Club

400

400

500

­­

­­

1,300

Maple Hill Recreation Corp

400

­­

­­

­­

­­

400

VOX Caelestis

­­

504

­­

­­

­­

504

DG Area American Assoc of Women

­­

­­

­­

3,350

3,000

6,350

DG Area Newcomers

­­

­­

­­

1,500

1,400

2,900

SEASPAR

­­

­­

­­

­­

1,400

1,400

After Hours Film Society

­­

­­

­­

­­

1,500

1,500

62,619

43,504

70,089

79,200

79,519

334,931

Memorandum

To: Mayor & Council From: David Fieldman, Village Manager Re: Meter Transmission Unit Replacement Project Date: September 26, 2014 _______________________________________________________________________

Synopsis The FY15 Budget includes $2 million in the Water Fund for the replacement of meter transmission units (MTU’s). Proceeds from the 2012 bond issuance will be used to pay for this project. This is a planned use of the bond proceeds.

Background The Village owns and maintains a water metering system through which meter readings are transmitted automatically from battery­powered radio units on customer meters to the Village. Information submitted to the Village is used to produce water bills. There are approximately 16,700 MTU’s. Many of the units are beginning to fail to transmit readings consistently, a sign that they are failing and need replacement. The MTU’s, originally purchased and installed in 2002/2003, have performed as expected with a projected useful life of about 12 years. Most meter transmission units are located on the outside of buildings.

MTU Replacement Project The Village will use a private company to remove the existing MTU’s and install the new ones. The project is planned to be completed over a 15­month period beginning in January 2015.

Staff is planning to complete the project with the following desired outcomes: ● Messaging regarding the project will begin prior to the project kickoff and be on­going throughout the project ● Water customers (residents and businesses) will be notified when work is planned to occur in their area ● Customers will not see service or billing disruptions and there will be channels to resolve problems or concerns ● The Village will oversee the content of all communication and messaging that comes from the vendor

FY15 Budget Impact The FY15 budget includes $2 million in the Water Fund for the MTU replacement project. This replacement was anticipated and budgeted and has been included in out­years in the CIP since FY14.

The Village issued an RFQ to identify vendors that could meet the Village’s needs. Staff evaluated the responses and determined that Aclara, the vendor that installed the initial system, proposed a solution that will best meet the Village’s needs, provides the best product and provides the most continuity in metering operations. Staff will present a contract at an October Village Council meeting.

The primary cost component is the contract with Aclara to purchase and install the MTUs. The Village will also need temporary administrative support for data entry and quality control to ensure water billing processes continue seamlessly throughout the project. Project costs include temporary administrative support.

Memorandum

To: From: Re:

Mayor & Council David Fieldman, Village Manager Continue to Improve Resident Engagement & Communication ­ Impact on FY15 Budget Date: September 26, 2014 _______________________________________________________________________

In the 2013­15 Long Range Plan, the Village Council identified as one of the high priority action items Continue to Improve Resident Engagement and Communication. The Village has made progress on this project in 2014, including the following accomplishments/objectives: ● Expanded use of YouTube to create awareness of Village projects and activities ● Live broadcast of informal workshop­style Village Council meetings ● Launch of NextDoor.com presence ● Stream of DGTV to mobile devices (October 2014 planned launch)

The proposed FY15 budget includes resources to continue to enhance resident engagement and communications efforts in several areas, building upon the successes listed above.

The next major project to be pursued in support of this action item is the development of a CRM (customer relationship management) system to improve the manner and consistency in which Village staff communicates with the public and with one another on individual requests and inquiries. While there are currently systems in place to see that requests to the Village are responded to, these systems can vary by department and do not capitalize on modern technology to facilitate interaction or response. An improved system would include the following components: 1. The ability for residents to access the system using multiple devices or forms of communication based on their preference and convenience 2. The ability for staff across multiple departments to access and share information in a manner that facilitates the most effective and timely response

For instance, if a resident had a concern about a stormwater issue, it could be entered into the system by the resident through their computer or mobile device, or by a staff person, following an interaction over the phone or in person. The system would maintain a real­time and accessible record of this interaction and its resolution, along with others, constructing a more informative history of issues and the efforts of the Village to address them.

The system will be GIS (Geographic Information Systems) based, which means that it will capitalize on the tools already available in the Village’s robust GIS system. After reviewing several third­party

products that are available on the market, staff has concluded the an in­house developed app and web­based tool most will most effectively meet the Village’s needs. In addition, Village staff possesses the knowledge, skills and abilities to develop such a system. The in­house approach requires minimal commitment of further Village resources (less than $5,000) in the FY15 budget.

Completion Timeframe: ● Complete design of system, test functionality & train staff by December 2014 ● Conduct beta test of system by March 2015 ● Launch CRM system by April 2015

​

Memorandum

To: Mayor & Council From: David Fieldman, Village Manager Re: Emerald Ash Borer CIP Project Date: September 26, 2014 _______________________________________________________________________

SYNOPSIS The FY15 Capital Projects Fund budget includes $147,000 for the treatment, removal and replacement of 300 ash trees affected by the Emerald Ash Borer (EAB). Staff plans to budget a similar amount for the next six years. This funding plan is reflected in the Community Investment Plan.

BACKGROUND In the four years since Emerald Ash Borer was discovered in the Village, the Village has been working to treat and save as many ash trees as possible while removing and replacing trees that are too damaged to save. Staff recently conducted a thorough inspection of all ash trees to assess the progression of EAB and the effectiveness of treatment. The inspection shows that EAB has significantly progressed, in particular in ash trees that have not been treated, those that have only been treated for a couple of years, and those in stressful situations (narrow parkways, near high speed traffic, or have significant surrounding concrete).

Despite early positive signs seen for ash trees with EAB treatment, the periods of drought and extreme temperature have taken a toll. Based on the current level of decline, this would eventually result in the removal and replacement of approximately 1,750 ash trees over the next 6 years, about 300 ash trees per year. The estimated increased cost for the tree removal and planting program for these 6 years at this rate would be approximately $147,000/year.

In FY14, staff has been addressing the increasing cost of tree removal and tree plantings through change orders to the contracted services for tree removal and tree plantings. In December 2012 the Village entered into a three year contract with D. Ryan Tree and Landscape for the removal of trees and stumps. The annual contract amount of $115,800 provides for the removal of approximately 400 trees per year. The FY13 and FY14 budgets have included an amount of $140,000 for tree removal services, anticipating an increasing number of removals due to EAB. In August 2013 a change order was approved for this contract for an amount of $30,000. On October 14th a change order for $30,000 will be presented for Council consideration for the 2014 program. This will provide for the removal of 100­120 additional trees this year.

Based on the estimated cost of $147,000 per year for six years beginning in 2015, staff included the treatment, removal and planting of Ash Trees as a project in the CIP beginning in 2015, for a five year period, and included a budget of $261,300 per year. After that time, staff anticipates this cost will be reduced to include a lower level of chemical treatment to preserve the remaining trees.

The following table lists the number of ash in each canopy dieback rating percentage that were identified in the early 2014 survey. Dieback is defined as a condition in which a tree begins to die from the tip of its leaves or roots backwards, owing to disease or an unfavorable environment. For the dieback rating percentage, a tree with 50% dieback has had its branches die from their tips at least halfway back toward the trunk of the tree.

Rating %

Blue Ash

European Ash

Green Ash

White Ash

0

4

0

80

404

10

1

1

304

271

20

0

1

415

114

30

0

1

334

57

40

0

0

240

26

50

0

1

246

26

60

0

1

151

30

70

0

1

117

12

80

0

0

93

11

90

0

0

69

6

100

0

0

59

13

Removal Pending

0

0

143

15

Total

5

6

2251

985

Memorandum

To: Mayor & Council From: David Fieldman, Village Manager Re: Creation of Research & Development Team Date: September 26, 2014 _______________________________________________________________________

At the September 9, 2014 meeting, under New Business Commissioner Barnett requested that the Village consider creating a Research & Development Team.

Commissioner Barnett prepared the following summary of the proposal.

What I am seeking to do, is have a personnel structure which adds capacity to our ability to work on ideas that come up. Innovation incubation, if you will.

We have done a solid job of embracing LEAN and while there always remain opportunities to improve, I would like to have additional manpower flexibility to investigate ideas or concepts that come up without necessarily diminishing our resources in other, existing, areas of effort. To be sure, such flexibility in and of itself will continue to be limited but in my mind now, we're talking about an upper level management person with the authority and resources to supervise 1­2 intern~esque folks.

I would expect annual costs in $150k ­ $250k kind of neighborhood. Specifically for FY2015, I'd like to budget $200k recognizing that such a program won't start on January 1st and thus actual expenditures may be lower. In order to avoid raising our levy, I'd like to test the idea by using the projected reduction in pension contribution requirements.

Actual savings or, improved service levels seem likely ­ and while savings at levels to fund the program may well be the result that is not the sole factor in deciding whether to engage this initiative.

If the above concept were included in the FY15 Budget, General Fund expenses would increase by $200,000 and revenues would increase by $180,000. The proposed property tax levy would also increase by $180,000 (see tables 1 and 2 below).

Table 1 Impact on Proposed FY15 General Fund Budget

Proposed FY15 GF Budget

FY15 GF Budget Research & Development Team

Revenues

44,824,624

45,004,624

Expenses

44,822,262

45,022,262

2,362

(17,638)

Change in Fund Balance

Table 2 Impact on the Proposed FY15 Property Tax Levy

Tax Levy Component

FY14

Proposed FY15

FY15 With Funding for R&D

Corporate Levy

$2,997,145

$2,997,145

$3,177,145

Fire Protection

$2,850,000

$2,850,000

$2,850,000

Fire Pension

$2,467,520

$2,330,108

$2,330,108

Police Pension

$2,303,858

$2,261,516

$2,261,516

$971,524

$971,524

$971,524

$11,590,047

$11,410,293

$11,590,293

Capital Total