City Council

DEKALB CITY COUNCIL AGENDA REGULAR MEETING JULY 24, 2023 6:00 P.M. DeKalb Public Library Yusunas Meeting Room 309 Oak Street DeKalb, Illinois 60115 Pursuant to Chapter 2 “City Council”, Section 2.04 “Council Meetings”, persons wishing to address the City Council during this meeting are required to register with the Recording Secretary by filling out and submitting a Speaker Request form, copies of which are located on the table just outside the meeting room, along with copies of the agenda. Comments will be limited to three (3) minutes. Further information for addressing the City Council can be found on the Speaker Request form. A. CALL TO ORDER AND ROLL CALL B. PLEDGE OF ALLEGIANCE C. APPROVAL OF THE AGENDA D. PRESENTATIONS 1. Celebrating the Retirement of Maureen Gerrity after 28 Years with Barb City Manor, 1995 – 2023. 2. Proclamation: Uke Day – August 13, 2023. E. PUBLIC PARTICIPATION F. APPOINTMENTS 1. Reappointing Steve Becker to the Planning and Zoning Commission for the Completion of a Five-Year Term through December 31, 2027. 2. Reappointing Lynn Neeley to the Finance Advisory Committee for the Completion of a Four-Year Term through December 31, 2026, and as Chair for the Completion of a Two-Year Term through December 31, 2024. G. CONSENT AGENDA 1. Minutes of the Regular City Council Meeting of July 10, 2023. 2. Accounts Payable and Payroll through July 24, 2023, in the Amount of $2,892,175.87. 3. Freedom of Information Act (FOIA) Report – June 2023. 4. FY2023 Human Services Funding 2nd Quarter Report. Assistive services, including hearing assistance devices, available upon request. City Council Regular Meeting Agenda July 24, 2023 Page 2 of 19 H. PUBLIC HEARINGS None. I. CONSIDERATIONS 1. Consideration of a Preliminary Five-Year Fire Department Plan. City Manager’s Summary: In the early Spring of 2022, the City administration produced a three-year financial plan (2022-2024) that was intended to be a transitional document. As our community was just emerging from the COVID-19 pandemic and beginning to establish what the “new normal” might become, our City government leaders took time to assess the City’s economic position by benchmarking key data in relation to the experience of comparable communities, providing a multi-year revenue and expenditure analysis, and generally identifying capital and staffing issues, which would pose challenging funding questions for the balance of the decade. In advance of the beginning of the City’s 2024 public budget process, which begins shortly after the presentation of the FY2022 annual fiscal audit in late June, the City management has opened discussion with the management of the City’s three “first responder” departments (Fire, Police, and Public Works) for a “deeper dive” into longer-term planning for both staffing needs and facility needs. These three departments comprise 76% ($33,457,912/$43,789,570) of the general operating costs within the approved FY2023 City Budget. For several reasons, this planning initiative begins with the DeKalb Fire Department. First, of the three first responder departments, Fire has the greatest deficiencies in facilities in terms of accessibility, equity, and geographical coverage. Second, although the staffing upgrade of 2021-2022 funded by a $2.7 million federal (SAFER) grant through the Federal Emergency Management Agency (FEMA) helped the City meet federal requirements for shift strength on engines and ambulances and reduce annual overtime, it could not of itself influence response times from the existing stations. As explained below, with steadily rising requests for service, the Department is daily challenged to meet the federal baseline for emergency response times across an expanding geography. This report will focus on the Fire Department’s current operating position and options for service upgrades to meet the demands of a community of 44,000 by the end of the decade. It should be acknowledged that key variables such as NIU enrollment, new housing demand, and job growth will impact such projections. However, the prioritization of Fire facility improvements and the staffing to make them effective will reasonably align with what we already know about future growth areas, whether in terms of residential, industrial, or commercial uses. This will be evident as this report unfolds. Service Response Models The leading regulatory agency in the determination of fire risk and hazards for American insurers as well as the Fire Service’s research, education, and training arm is the National Fire Protection Agency (NFPA). The City’s municipal code adopts a variety of NFPA codes and guidelines, created and routinely updated by over 250 technical committees responsive to 50,000 member organizations including the City of DeKalb. The NFPA cooperates with the Insurance Service Office (ISO) which rates public and private agencies in terms of their property and casualty risks. Such ratings are in turn used by insurers in setting annual fire and casualty premiums for homeowners and businesses. Assistive services, including hearing assistance devices, available upon request. City Council Regular Meeting Agenda July 24, 2023 Page 3 of 19 In the determination of maximum response times for first-arriving fire apparatus the applicable NFPA and ISO modelling identifies four (4) minutes as the gold standard for response time, which is “the time that begins when units are enroute to the emergency incident and ends when units arrive at the scene.” It does not include the time for alarm, dispatch, and turnout prior to rolling the engine or ambulance. The same time standard applies to the maximum travel time allowable for a first-arriving ambulance at the scene of an emergency medical incident. There is no silver standard. Six (6) minutes is the maximum response or travel time allowable for a second-arriving apparatus (preferably a ladder truck) capable of rapidly surcharging the volume of water that can be used to extinguish a fire before a flashover occurs. In the case of larger buildings or complexes requiring a full alarm fire contingent (17 firefighters), eight minutes is the maximum allowable travel time. Three-Station vs. Four-Station Configuration DeKalb Fire’s current 4-minute response coverage is illustrated in the following graphic: Assistive services, including hearing assistance devices, available upon request. City Council Regular Meeting Agenda July 24, 2023 Page 4 of 19 The current map shows significant gaps in the southwest quadrant, the industrial developments south of I-88, and the northeastern limits of the DeKalb corporate boundaries in terms of the 4- minute response model. It is a credit to the prescience of some planning in the 1990s that the City currently owns a one- acre parcel at the north end of the Schnucks subdivision, abutting South Malta Road (Taylor Street) and several lots west of the intersection with Annie Glidden Road. If a fourth station were built on this site as envisioned in the 1990s, nearly all of the southwest quadrant of the City would be covered within the four-minute response preference, as shown below: Currently, Station 3 on DeKalb’s northwest side often covers the southwest City quadrant either as second-arriving or as first-arriving in the event the Station 2 company is already committed. Theirs is a relatively faster path of travel due south on Annie Glidden Road versus cross-town from Station 1. With the exception of larger, full alarm incidents requiring all engine companies, the tactical need to leave one primary service district to service another would be much reduced with a fourth station. This is also generally true of the EMS responses which constituted 81% of the Department’s calls in 2022. Assistive services, including hearing assistance devices, available upon request. City Council Regular Meeting Agenda July 24, 2023 Page 5 of 19 Envisioning a fourth station with the geographical distribution of the 2022 emergency responses in mind, the “split” in terms of overall calls to the south, east, and west by station would be more even: The northwest quadrant would remain the busiest by far, but in theory the ability of Station 3 to focus on the northwest quadrant most of the time would enhance service to that quadrant. At the same time, having a Station 4 would help all companies serve their numerous residents and businesses when call volumes are high. Simultaneous Calls In the 2022 Annual Report presented to the Council by Chief Thomas on May 8, the impact of simultaneous calls was briefly reviewed. NFPA guidelines recommend facility and/or staffing enhancements when simultaneous calls exceed 35%. Response capabilities are clearly impacted by increasing simultaneous calls. In 2022, of the Department’s 7,437 calls of all types (including Fire District calls not shown in the map above), 2,744 (37%) “overlapped” with other calls, requiring recall alerts to Department members to fill empty stations and to beef up staff responses already in progress. Simultaneous calls are rising; Assistive services, including hearing assistance devices, available upon request. City Council Regular Meeting Agenda July 24, 2023 Page 6 of 19 in 2018 they totaled 2,145 out of 6,082 total calls (35%). In 2022 an average of 7.5 simultaneous events per day prompted 320 recalls resulting in $110,570 in overtime for callbacks. Provisional Station 4 Layout The provisional site layout below depicts a one-story, fully accessible neighborhood station with equitable male and female facilities and three garage bays: As noted above, the land is owned by the City. The preliminary construction cost of the proposed 7,630 square foot station is $3,900,000 or approximately $511 per square foot. Another $100,000 for soft costs and utility connections should be included. To arrive at the conceptual estimate for the construction of Station 4, the City Manager and Fire Administration interviewed several regional architectural firms. The provisional drawings were Assistive services, including hearing assistance devices, available upon request. City Council Regular Meeting Agenda July 24, 2023 Page 7 of 19 prepared by Studio 222 Architects, a small and notable firm based in Chicago with a practice focusing on fire stations and other public facilities. This GEMT-funded work (for approximately $6,000) has enabled our staff to pose the questions and options presented in this report. The Fiscal Impact of a New Station: Capital Costs The City currently has a substantial General Fund balance. The FY2022 Annual Comprehensive Financial Report (ACFR) presented to the City Council on June 26 shows a General Fund balance at the end of FY2022 (December 31, 2022) of $25,317,478, or 61.17% of the final FY2022 General Fund expenditures. City policy requires a minimum, unassigned General Fund balance at 25% of annual expenditures. If the estimated $4 million cost of Station 4 were drawn from the General Fund reserve, a remaining balance of $21,317,478 would still be 51.5% of the final FY2022 General Fund expenditures. There are several problems with the option of reaching into that surplus to fund a new Fire station “out of pocket:” a. First, the City is currently earning 5% interest on cash deposited in Illinois Funds managed by the Illinois State Treasurer. The larger balances are actually building the City’s reserves in terms of interest revenue. b. Second, the City still has a substantial long-term structural problem in its unfunded state pension obligations. As of January 1, 2023, the total unfunded liabilities for the Fire and Police pension funds were $55,991,016 and $42,513,249, respectively. Otherwise put, the Fire Pension Fund as of January 1, 2023, was 41% funded and the Police Pension Fund was 53.6% funded. For many years, all of the City’s annual property tax and a substantial share of additional General Fund revenues (e.g., sales and use taxes, shared state income tax, etc.) have been dedicated to the payment of the annual actuarial obligations for these funds. This is illustrated in the table below: Actuarial Fiscal Required City's Adopted Shortfall Shortfall Year Contribution Tax Levy $ % Fire Pension $4,415,632 $3,720,878 $694,754 15.73% 2022 Police Pension $3,707,827 $3,124,439 $583,388 15.73% Total $8,123,459 $6,845,317 $1,278,142 15.73% increase over PY 2.87% 4.95% Fire Pension $4,933,015 $3,869,713 $1,063,302 21.55% 2023 Police Pension $3,901,382 $3,249,417 $651,965 16.71% Total $8,834,397 $7,119,130 $1,715,267 19.42% increase over PY 8.75% 4.00% Fire Pension $5,343,974 $4,415,632 $928,342 17.37% 2024 Police Pension $4,130,481 $3,707,827 $422,654 10.23% Total $9,474,455 $8,123,459 $1,350,996 13.80% increase over PY 7.25% 14.11% Assistive services, including hearing assistance devices, available upon request.  City Council Regular Meeting Agenda July 24, 2023 Page 8 of 19 The following table projects General Fund revenues and expenditures for the next five years without a fourth station: FY22 FY2023 FY24 FY25 FY26 FY27 Actual Rev Projected Projected Projected Projected Starting Fund Balance $19,625,868 $25,317,478 $29,968,209 $33,977,354 $35,732,211 $37,153,584 Revenues by Category Property Taxes $6,756,139 $7,119,130 $8,123,459 $8,959,817 $9,855,799 $10,751,781 Sales & Use Taxes $19,635,533 $20,126,421 $20,629,582 $21,145,321 $21,673,954 $22,215,803 Gross Receipts Taxes $3,304,467 $3,321,426 $3,454,283 $3,592,454 $3,736,153 $3,885,599 Intergovernmental CARES Act $0 $0 $0 $0 $0 $0 ARPA Grant $1,997,435 $1,837,285 $1,019,023 $0 $0 $0 SAFER Grant $771,938 $908,602 $961,089 $0 $0 $0 All Other (Inc. Income Tax) $8,056,908 $8,258,331 $8,588,664 $8,889,267 $9,200,392 $9,522,405 Licenses & Permits $1,044,722 $1,050,406 $1,060,866 $1,071,535 $1,082,418 $1,093,518 Service Charges $3,911,785 $4,303,274 $4,376,905 $4,451,900 $4,528,286 $4,606,089 Fines $448,960 $470,500 $482,170 $491,523 $501,064 $510,795 Other Income $568,659 $490,980 $494,987 $499,040 $503,142 $507,292 Transfers In $582,980 $553,947 $558,826 $563,826 $568,952 $574,206 Total Revenues $47,079,526 $48,440,302 $49,749,853 $49,664,685 $51,650,159 $53,667,488 Expenditures by Category Personnel $32,608,690 $36,019,483 $37,962,624 $40,024,093 $42,233,260 $44,602,383 Commodities $964,864 $1,005,719 $1,025,833 $1,046,350 $1,067,277 $1,088,623 Contractual Services $4,514,631 $4,182,119 $4,264,940 $4,349,417 $4,435,583 $4,523,473 Equipment $102,698 $162,650 $165,903 $169,221 $172,605 $176,058 Debt Service * $516,754 $469,599 $471,409 $470,748 $470,060 $469,088 Transfers Out # $2,680,280 $1,950,000 $1,850,000 $1,850,000 $1,850,000 $1,850,000 Total Expenditures $41,387,916 $43,789,570 $45,740,709 $47,909,828 $50,228,786 $52,709,624 Net Change $5,691,610 $4,650,732 $4,009,144 $1,754,857 $1,421,373 $957,864 Prior Period Adjustment $0 $0 $0 $0 $0 $0 Ending Fund Balance $25,317,478 $29,968,209 $33,977,354 $35,732,211 $37,153,584 $38,111,448 vs. Reserve Policy 25% 61.17% 68.44% 74.28% 74.58% 73.97% 72.30% * payment on Library bonds; previously reported under transfers # includes annual transfer to Debt Service Fund Debt service on the City’s outstanding General Obligation Bonds, Series 2010c, 2012A, 2013B, 2019 and 2020 is currently paid out of the General Fund (as opposed to a debt service levy). If the City was to issue a 15-year, $4.265 million general obligation bond in 2023 with interest payments beginning in 2024 and principal repayment beginning in 2025, the City’s aggregate General Fund-supported debt service would be approximately equivalent to the present annual G.O. debt service level from 2028 onward (~$1,865,000). Based on current market conditions, the City could borrow at a true interest cost of about 3.80%, or below the rate at which the City is currently earning on its reserves deposited in Illinois Funds. Assistive services, including hearing assistance devices, available upon request. City Council Regular Meeting Agenda July 24, 2023 Page 9 of 19 Hypothetical Debt Service for GO Bond 2024--Fire Facility Upgrade 15 Year Term Fiscal General Fund Assumed Assumed Assumed Total Debt Aggregate Year Debt Service* Principal Rate Yield Interest Service Debt Service 1-Jan 1/1 & 7/1 2024 $1,862,841 $0 $106,625 $106,625 $1,969,466 2025 $1,861,121 $195,000 5.00% 3.46% $208,375 $403,375 $2,264,496 2026 $1,863,782 $205,000 5.00% 3.39% $198,375 $403,375 $2,267,157 2027 $1,865,256 $215,000 5.00% 3.35% $187,875 $402,875 $2,268,131 2028 $1,458,244 $230,000 5.00% 3.32% $176,750 $406,750 $1,864,994 2029 $1,457,211 $240,000 5.00% 3.38% $165,000 $405,000 $1,862,211 2030 $1,458,000 $250,000 5.00% 3.41% $152,750 $402,750 $1,860,750 2031 $265,000 5.00% 3.37% $139,875 $404,875 $404,875 2032 $280,000 5.00% 3.39% $126,250 $406,250 $406,250 2034 $290,000 5.00% 3.41% $112,000 $402,000 $402,000 2035 $305,000 5.00% 3.48% $97,125 $402,125 $402,125 2036 $325,000 5.00% 3.59% $81,375 $406,375 $406,375 2037 $340,000 5.00% 3.71% $64,750 $404,750 $404,750 2038 $355,000 5.00% 3.87% $47,375 $402,375 $402,375 2039 $375,000 5.00% 4.02% $29,125 $404,125 $404,125 2040 $395,000 5.00% 4.12% $9,875 $404,875 $404,875 2041 2042 2043 2044 2045 Total $11,826,455 $4,265,000 $1,903,500 $6,168,500 $17,994,955 *Includes Series 2010C, 2012A, 2013B, 2019, and 2020 In the period 2024 through 2027, the annual average increase in general obligation debt service would be approximately $329,472 as seen in the following table: Debt Service Breakdown 2024 to 2028 15 Year Term Fiscal General Fund Assumed Total Debt Aggregate Year Debt Service* Principal Interest Service Debt Service Diff vs. 2023 2023 $1,862,841 2024 $1,862,841 $0 $106,625 $106,625 $1,969,466 $106,625 2025 $1,861,121 $195,000 $208,375 $403,375 $2,264,496 $401,655 2026 $1,863,782 $205,000 $198,375 $403,375 $2,267,157 $404,316 2027 $1,865,256 $215,000 $187,875 $402,875 $2,268,131 $405,290 2028 $1,458,244 $230,000 $176,750 $406,750 $1,864,994 $2,153 Total $8,911,244 $845,000 $878,000 $1,723,000 $10,634,244 *Includes Series 2010C, 2012A, 2013B, 2019, and 2020 Bonds Avg: FY24-FY27 $329,472 Assistive services, including hearing assistance devices, available upon request. City Council Regular Meeting Agenda July 24, 2023 Page 10 of 19 The Fiscal Impact of a New Station: Staffing The opening of a new Fire station requires enough personnel to operate the station seven days a week and 24 hours a day. The current collective bargaining agreement with Firefighters Local 1236 enforces a normal shift schedule of 24 consecutive hours on duty followed by 48 consecutive hours off duty. When staffing is short due to injuries, illnesses, scheduled leave, or a high call volume, firefighter/paramedics may “hold over” or remain on duty in overtime status after the regularly scheduled time to go off duty for no more than 72 hours of consecutive duty. As reported in recent Fire Department annual reports, the emergency call volume has been rising. After a relatively flat volume in the range of 5,200 to 5,500 calls per year from 2012 through 2017, a dramatically higher ramp in emergency calls was recorded in 2018 and has largely continued. In 2017, 5,572 emergency calls (combined EMS and Fire) were recorded and in 2022 a total of 7,437 calls were reported – an increase of over 33%. Of the total 7,427 calls in 2022, 81% (6,061) were EMS (emergency medical service) calls; of the total 5,572 calls in 2017 74% (4,139) were EMS calls. More emergency calls are generated from the Annie Glidden North neighborhood than any other area in the city. By far the most decisive factor in the growth in EMS call volume in recent years is the growing reliance on the City’s firefighter/paramedics and the emergency room of Northwestern Hospital to provide basic health care including emergency treatment. As calls increase, the department must call off-duty members to return to work on overtime to maintain essential staffing on front-line apparatus. In 2017, the overtime costs associated with such backfilling along with emergency recalls for large-scale incidents was $365,334. That number was $1,156,000 in 2020. This trend was not offset by the very sophisticated mutual aid arrangements between DeKalb, Sycamore, Cortland, Genoa, Malta and other local fire departments for large-scale incidents. The reason is fundamental: the department has to continue to provide EMS and suppression services for the next ambulance or fire call even if its entire complement of firefighters is fully committed to a major fire event or multiple and simultaneous calls. From the 1990s through December 2020, the Department had been operating with a shift minimum that had failed to meet the minimum NFPA standard of 4 personnel on each fire company. The Department regularly ran only two persons per engine on the assumption that the two firefighter/paramedics assigned to the accompanying ambulance would provide adequate personnel to suppress a fire and perform essential tasks (e.g., search and rescue, hose deployment, ventilation, etc.). This strategy was often undone when either the ambulance was committed to an EMS call at the time of the fire or, upon arriving at the scene, one or more injured persons required paramedic attention. The arriving engine company was then left with just two personnel to operate the fire engine until mutual aid companies or recalled firefighters arrived, which could take 10 to 30 minutes. This approach fell well short of the NFPA staffing standard. which is echoed in the applicable OSHA “Two-in, Two Out” rule requiring 4 personnel on each fire company: one driver/engineer, two firefighters for task work, and one officer (supervisor). The staffing shortage was further aggravated by another alarming trend – the rise in simultaneous or “overlapping” calls for service. As noted above, in 2017, there were about 2,135 simultaneous incident responses; in 2022 the total had reached 2,744 (+28.5%). On December 28, 2020, Council unanimously approved a collective bargaining agreement with Firefighters Local 1236, which included a gradual, long-term path to remedy the staffing shortage and to address rising overtime costs. The bold plan was built on a unique labor-management collaboration over multiple years, rather than the conventional adversarial and competitive engagement that typified the City administration’s approach for decades. Over the four-year life of the agreement (expiring on December 31, 2024), the minimum daily shift staffing across the three DeKalb Fire stations would rise from 13 bargaining unit members to 16 members per shift. Assistive services, including hearing assistance devices, available upon request. City Council Regular Meeting Agenda July 24, 2023 Page 11 of 19 A minimum of nine hires were necessary to reach the four-year goal. In August 2021, the City was notified that the Department of Homeland Security’s Federal Emergency Management Agency had awarded DeKalb a “Staffing for Adequate Fire and Emergency Response” (SAFER) grant in the amount of $2,721,256.47 to be allocated between February 27, 2022, and February 26, 2025. The City of DeKalb was one of only four entities in the country to receive the full, three- year grant allocation. The grant request was the result of close collaboration between Local 1236, the Fire department administration, and the City Manager’s office. All the “SAFER 9” firefighters have been hired and fully integrated with the three Fire shifts. Significantly, the additional staffing reduced overtime costs dramatically. Excluding mandatory training to maintain paramedic and other certifications, operational overtime dropped from $1.156 million in 2020 to $713,000 in 2022 (-38%). To staff a fourth fire station while meeting NFPA staffing standards, a minimum of four firefighter/paramedics and an officer would typically be required on any given shift day, which would mean an additional 15 firefighters. A transitional alternative to fiscally “grow into” the NFPA standard would involve a “jump company” with a shift strength of three, requiring an overall increase of nine new firefighter hires upfront, raising the daily Department minimum staffing to 19. A “jump company” would be equipped with a front-line ambulance and engine as are the other City stations. However, with any call “toned out” to the fourth station, a calculated judgment must be made about whether the call requires an engine or an ambulance. Once that choice is made, the smaller engine company of three will clear the station with either the ambulance or engine and leave the station empty of the number of firefighter/paramedics needed to address a follow- on or simultaneous call in that particular fire district. This is currently the case for Stations 2 and 3, which roll an ambulance and engine, but they have more hands on the apparatus to address unexpected circumstances that may arise at an emergency incident as first responding company. The duration of such a transitional arrangement would be negotiable when the Fire contract is re- opened in 2024. The staffing path ahead could be resolved in principle in a memorandum of understanding in advance of the 2024 contract negotiations. In December 2020, the City and Local 1236 agreed to gradually attain NFPA shift staffing standards by October 2024 and both parties have been true to that commitment. A transitional jump company of three would be an anomaly as compared to staffing at the other three stations based on fiscal considerations. Such an arrangement should be resolved through a mutually agreed timetable in the next long-term collective bargaining agreement. The following tables illustrate the City’s budget capacity for a fourth Fire station. In these tables, it is assumed that the General Fund will carry the borrowing costs for a 15-year municipal bond to cover the building construction, and both the General Fund and the GEMT Fund will carry the associated staffing and pension costs. The projections assume an aggressive timeline that includes Fire station design in 2023, construction in 2024, and a move-in date of January 1, 2025. The following staffing costs are part of the calculation:  FY24 Firefighter Base Wage: $71,588.21  Clothing Allowance: $800 (not pensionable)  Medicare: $1,200 (not pensionable)  Health Insurance (single coverage): $10,000 (not pensionable)  Dental Insurance: $500 (not pensionable) Subtotal: $84,088.21  Pension: $62,000 (Includes estimated share of “global” unfunded obligation) Total: $146,088.21 (One Firefighter) x 9 = $1,314,793.89, rounded to $1,315,000. Assistive services, including hearing assistance devices, available upon request.  City Council Regular Meeting Agenda July 24, 2023 Page 12 of 19 The labor cost per new employee is estimated to rise 2.5% per year after 2024: Fourth Fire Station Staffing - General Fund Cost 2024* 2025** 2026** 2027** 2028** Personnel $657,500 $1,347,875 $1,381,572 $1,416,111 $1,451,514 Debt Service $106,625 $403,375 $403,375 $402,875 $406,750 Less GEMT $500,000 $750,000 $1,000,000 $1,000,000 $1,000,000 Total GF $264,125 $1,001,250 $784,947 $818,986 $858,264 *One-Half Year **2.5% COLA Based on the preceding estimates of labor costs, the following table projects the General Fund impacts, including new debt service for the building, through FY2027: FY22 FY2023 FY24 FY25 FY26 FY27 General Fund Impacts Actual Rev Projected Projected Projected Projected Starting Fund Balance $19,625,868 $25,317,478 $29,968,209 $33,713,228 $34,466,835 $35,103,261 Revenues by Category Property Taxes $6,756,139 $7,119,130 $8,123,459 $8,959,817 $9,855,799 $10,751,781 Sales & Use Taxes $19,635,533 $20,126,421 $20,629,582 $21,145,321 $21,673,954 $22,215,803 Gross Receipts Taxes $3,304,467 $3,321,426 $3,454,283 $3,592,454 $3,736,153 $3,885,599 Intergovernmental CARES Act $0 $0 $0 $0 $0 $0 ARPA Grant $1,997,435 $1,837,285 $1,019,023 $0 $0 $0 SAFER Grant $771,938 $908,602 $961,089 $0 $0 $0 All Other (Inc. Income Tax) $8,056,908 $8,258,331 $8,588,664 $8,889,267 $9,200,392 $9,522,405 Licenses & Permits $1,044,722 $1,050,406 $1,060,866 $1,071,535 $1,082,418 $1,093,518 Service Charges $3,911,785 $4,303,274 $4,376,905 $4,451,900 $4,528,286 $4,606,089 Fines $448,960 $470,500 $482,170 $491,523 $501,064 $510,795 Other Income $568,659 $490,980 $494,987 $499,040 $503,142 $507,292 Transfers In $582,980 $553,947 $1,058,826 $1,313,826 $1,568,952 $1,574,206 Total Revenues $47,079,526 $48,440,302 $50,249,853 $50,414,685 $52,650,159 $54,667,488 Expenditures by Category Personnel $32,608,690 $36,019,483 $38,620,124 $41,371,968 $43,614,832 $46,018,494 Commodities $964,864 $1,005,719 $1,025,833 $1,046,350 $1,067,277 $1,088,623 Contractual Services $4,514,631 $4,182,119 $4,264,940 $4,349,417 $4,435,583 $4,523,473 Equipment $102,698 $162,650 $165,903 $169,221 $172,605 $176,058 Debt Service* $516,754 $469,599 $471,409 $470,748 $470,060 $469,088 Transfers Out # $2,680,280 $1,950,000 $1,956,625 $2,253,375 $2,253,375 $2,252,875 Total Expenditures $41,387,916 $43,789,570 $46,504,834 $49,661,079 $52,013,733 $54,528,610 Net Change $5,691,610 $4,650,732 $3,745,019 $753,607 $636,426 $138,878 Prior Period Adjustment $0 $0 $0 $0 $0 $0 Ending Fund Balance $25,317,478 $29,968,209 $33,713,228 $34,466,835 $35,103,261 $35,242,139 vs. Reserve Policy 25% 61.17% 68.44% 72.49% 69.40% 67.49% 64.63% * payment on Library bonds; previously reported under transfers # includes annual transfer to Debt Service Fund Assistive services, including hearing assistance devices, available upon request.  City Council Regular Meeting Agenda July 24, 2023 Page 13 of 19 The funding impact on the City’s GEMT (Ground Emergency Medical Transportation) Fund or Fund 130 is depicted in the table that follows: FY2022 FY2023 FY2023 FY2024 FY2025 FY2026 FY2027 GEMT Fund Impacts Actual Budget Estimate Proposed Proposed Proposed Proposed Balance Forward $325,748 $1,725,485 $1,725,485 $1,536,126 $512,376 $1,149,907 $1,876,777 Revenues GEMT Revenues $1,672,186 $1,350,000 $1,650,000 $1,691,250 $1,733,531 $1,776,870 $1,821,291 Interest $31,693 $6,180 $75,000 $65,000 $30,000 $25,000 $25,000 Trsf from General Fund $800,000 $0 $0 $0 $0 $0 $0 Grants $0 $251,009 $250,000 $50,000 $75,000 $75,000 $75,000 Trsf from Fund 420 $0 $0 $0 $0 $0 $0 $0 Total Revenues $2,503,879 $1,607,189 $1,975,000 $1,806,250 $1,838,531 $1,876,870 $1,921,291 Expenditures Commodities Supplies--Technology $6,533 $10,000 $0 $0 $0 $0 $0 Ambulance Supplies/Equipment $0 $130,000 $93,362 $50,000 $50,000 $50,000 $50,000 Commodities Subtotal $6,533 $140,000 $93,362 $50,000 $50,000 $50,000 $50,000 Contractual Maintenance - Vehicles $0 $25,000 $20,000 $0 $0 $0 $0 Maintenance - Equipment (Gear) $40,366 $40,000 $40,000 $40,000 $40,000 $0 $40,000 Arch/Engin Services $0 $50,000 $200,000 $50,000 $0 $0 $0 Training/Travel incl. "live burns" $0 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 Contractual Subtotal $40,366 $215,000 $360,000 $190,000 $140,000 $100,000 $140,000 Capital Land Acquisition $0 $0 $0 $0 $0 $0 $0 Buildings $0 $0 $0 $0 $0 $0 $0 Equipment Cots $339,900 $0 $0 $0 $0 $0 $0 SCBAs/Compressor $0 $465,700 $465,000 $0 $75,000 $0 $50,000 Lucas Tools $0 $72,000 $71,566 $0 $0 $0 $0 Radios $0 $60,000 $112,500 $0 $35,000 $0 $0 AEDs $0 $8,000 $0 $0 $16,000 $0 $0 Station Alert System $0 $285,000 $285,000 $0 $40,000 $0 $0 E-Force Extrication Equipmnt $0 $36,607 $36,680 $0 $20,000 $0 $0 Capital Subtotal $339,900 $927,307 $970,746 $0 $186,000 $0 $50,000 Vehicles Engine #3 plus Upfitting $717,343 $0 $0 $0 $0 $0 $0 Engine #2 plus Upfitting $0 $635,236 $635,236 $0 $0 $0 $0 Existing Eng #1 (Stn 4) Upfitting $0 $0 $0 $0 $75,000 $0 $0 Ambulance #1 $0 $0 $0 $215,000 $0 $0 $0 Ambulance #2 $0 $0 $0 $215,000 $0 $0 $0 Staff Vehicle #1 $0 $55,000 $50,015 $0 $0 $0 $0 Staff Vehicle #2 $0 $55,000 $55,000 $0 $0 $0 $0 Staff Vehicle #3 $0 $0 $0 $60,000 $0 $0 $0 Truck $0 $0 $0 $1,600,000 $0 $0 $0 Subtotal $717,343 $745,236 $740,251 $2,090,000 $75,000 $0 $0 Transfer to General Fund $0 $0 $0 $500,000 $750,000 $1,000,000 $1,000,000 Transfer to Debt Service Fund $0 $0 $0 $0 $0 $0 $0 Total Expenditures $1,104,142 $2,027,543 $2,164,359 $2,830,000 $1,201,000 $1,150,000 $1,240,000 Rev Minus Exp $1,399,737 -$420,354 -$189,359 -$1,023,750 $637,531 $726,870 $681,291 Ending Balance $1,725,485 $1,305,131 $1,536,126 $512,376 $1,149,907 $1,876,777 $2,558,068 For Station 4 Assistive services, including hearing assistance devices, available upon request. City Council Regular Meeting Agenda July 24, 2023 Page 14 of 19 This Consideration is not a theoretical exercise. A case is made herein for a fourth fire station to better serve major portions of the Seventh, Sixth, Fifth and Fourth Wards. In the current, stubborn inflationary environment, the cost of such an investment in terms of both capital and personnel expenses is not anticipated to be less a year from now or five years from now. Since the Council is just one month away from a joint consideration of the proposed FY2024 General Fund budget parameters with the Finance Advisory Committee, serious consideration of a fourth Fire station as a budget priority is recommended so the proper documents can be prepared. The proposed FY2024 Budget parameters that will be discussed in that joint meeting on August 21 will feature this analysis. City Council direction is requested. J. RESOLUTIONS 1. Resolution 2023-074 Authorizing the Waiver of Competitive Bidding and Approving an Agreement with Layne Christensen Company for Maintenance Inspection and Repair to Well No. 16 and Well No. 17 in the Amount of $130,000 with Staff Authority to Approve Miscellaneous Repairs in an Amount Not to Exceed $140,000. City Manager’s Summary: As Assistant Public Works Director Bryan Faivre writes in his background memorandum, Well No. 16 and Well No. 17, located at 2650 N. Annie Glidden Road, are two of nine wells the City owns and operates. The wells have a combined pumping capacity of 1,050 gallons per minute and account for 8% of the annual overall volume to the City. The wells are among the three raw water sources that supply water to the City’s Dresser Road Water Treatment Plant. The two wells can be operated individually; however, they are presently designed to operate in tandem. Both wells are currently operating in suitable order; however, they are due for routine inspection and preventative maintenance. Well 16 was last inspected or repaired in 2006 and Well 17 in 2011. The FY2023 Water Capital Fund budget (Fund 620-00-00-85500) includes $180,000 for this purpose. The two wells are located approximately 200 feet from each other, and from the standpoint of cost and time there is efficiency in performing the inspection work on both wells simultaneously. The Utility Division received a quote from Layne Christensen in the amount of $130,000 for pulling the column pipe, pump, and motor at each well and reinstalling them after any necessary repairs have been made. Unfortunately, a total cost estimate cannot be produced until such time as the well components are pulled and evaluated to determine what additional repairs may be necessary. The quote does, however, contain common maintenance repairs including motor service, pump bowl rebuilds and installation of 250 feet of newly coated column piping. If the anticipated repairs exceed the base cost and $10,000 contingency, the Division will seek further Council approval for any additional cost exceeding the City Manager’s authority. Layne is a worldwide organization with extensive experience in the drilling, maintenance and repair of water, gas and oil wells. The City of DeKalb Utility Division has relied on their expertise over the years to ensure the City has a well-maintained and reliable water supply. The company maintains an office in Aurora, Illinois with a wide inventory of well components along with a complete machine shop dedicated solely to rebuilding well pump equipment. For these reasons, the Utility Division recommends that Layne perform the required work for a not-to-exceed amount of $140,000. This will allow the well components to be pulled and repaired in a timely manner without future Council deliberation so that both wells can be Assistive services, including hearing assistance devices, available upon request. City Council Regular Meeting Agenda July 24, 2023 Page 15 of 19 returned to service as soon as possible. Should the repairs ultimately exceed this amount, Council approval would then be required for any additional expenses. City Council approval of the Layne Christensen proposal is recommended. (click here for additional information) 2. Resolution 2023-075 Authorizing the Award of a Contract to Curran Contracting Inc. in the Amount of $178,892.05 for the Resurfacing of Greenbrier Road with Staff Authority to Approve Change Orders Up to a Combined Project Total Not to Exceed $184,000. City Manager’s Summary: CDBG funds may be utilized in certain scenarios for street maintenance tasks such as surface pavement removal and replacement to improve conditions for underserved areas of a community. In recent years, the Council has focused some of these funds in qualifying Annie Glidden North areas. Bids for the re-surfacing of Greenbrier Road were recently solicited and the following bid was received: Company Name Base Bid Curran Contracting Inc $178,892.05 This is the second project in 2023 which focuses CDBG block grants on street and sidewalk repairs within Annie Glidden North and is consistent with a similar project along Ridge Drive in 2022. City Engineer Zac Gill is requesting additional spending authority for a not-to-exceed price of $184,000 to approve change orders for contingency items such as minor quantity over-runs and unforeseen repairs. The project will be paid for with CDBG funds (280-00-00- 83900; $184,000). City Council approval is recommended. (click here for additional information) K. ORDINANCES – SECOND READING None. L. ORDINANCES – FIRST READING 1. Ordinance 2023-029 Approving the Rezoning of Parcels Along E. Lincoln Highway, E. Locust Street, N. Seventh Street, N. Eighth Street, and N. Tenth Street, from the “SFR-1” Singe-Family Residential District, “SFR-2” Single Family Residential District, “LC” Light Commercial District, “LI” Light Industrial District, and “HI” Heavy Industrial District to the “PD-I” Planned Development Industrial District (Nehring Electrical Works Company). City Manager’s Summary: The City has received a petition from Nehring Electrical Works Company to rezone 21 parcels to the “PD-I” Planned Development-Industrial District. On October 10, 2022, the City Council approved Ordinance 2022-048, which authorized a Development Agreement with Nehring Electrical Works Company. The intent of the Agreement was to find a “global” solution to frictions with neighboring property owners over tractor trailer conflicts with passenger vehicles, limited on-street parking, storage of materials, and night-time noise. Part of the Agreement called for the rezoning of their existing parcels along E. Locust Street and N. 8th Street to the “PD-I” Planned Development-Industrial District. Another part of the agreement called for the vacation of E. Locust Street from N. 7th Street to N. 10th Street and N. 8th Street from E. Lincoln Highway to E. Locust Street. Since the approval of the agreement, Nehring has purchased eight parcels along E. Lincoln Highway, east of the Assistive services, including hearing assistance devices, available upon request. City Council Regular Meeting Agenda July 24, 2023 Page 16 of 19 Union Pacific railroad crossing, which are also proposed for “PD-I” zoning. The parcels eligible for rezoning altogether total about 27 acres. The rezoning of the subject parcels to “PD-I” Planned Development-Industrial District is to provide the maximum flexibility for the applicant as they re-arrange vital functions within their properties. Nehring Electrical Works Company serves the utility and electrical distribution market with a wide range of stranded and solid aluminum and copper wire. They have expanded their office, manufacturing, warehousing, storage and parking facilities over recent years and particularly the storage of wire spools. The company’s growth in and around the neighborhood where it was first housed has rubbed up against neighboring properties. Within the last few years, the company has made investments which promise further growth in production and greater wire storage needs. Nehring Electric bought properties along E. Lincoln Highway, east of the Union Pacific railroad line, in late 2022 and early 2023. This expansion eastward along E. Lincoln Highway will allow for the continued growth of the company and lessen some of the storage and truck maneuvering limitations along E. Locust Street and N. 8th Street. The rezoning of the subject parcels to “PD-I” Planned Development-Industrial District provides the maximum flexibility for the applicant and provides for some additional control for the City. In addition, rezoning the sites to the “PD-I” District is seen as the best possible option and the most compatible with the surrounding neighborhoods. The proposed permitted uses and standards for the parcels will accommodate the applicant’s future growth and also require compatibility with the surrounding neighborhoods including the screening of any outside storage of materials. The Planning and Zoning Commission held a public hearing regarding the rezoning petition at their meeting on July 17, 2023. By a vote of 6 to 0 (Commissioner Stoker was absent) the Commission unanimously recommended to the City Council approval of the rezoning requests for the parcels as listed on the chart and maps labeled as Exhibit A and in line with the development standards in Exhibit B, created by Planning Director Dan Olson and attached to this Agenda. On July 14, the City had an opportunity to celebrate an extraordinary commitment of a global leader in food production and distribution in DeKalb. The acquisitions and redevelopment represented by the exhibits to this agenda item speak to another commitment of millions of dollars in DeKalb’s future by a Nehring ownership group linked through time to an innovative company founded in DeKalb in the early twentieth century. City Council approval is recommended. (click here for additional information) 2. Ordinance 2023-030 Regulating Vehicular Traffic on Normal Road Between W. Locust Street and Lucinda Avenue by Prohibiting Access and Use by Motor Vehicles Except Those Authorized for Emergency Response or Critical Maintenance. City Manager’s Summary: At the regular Council meeting of June 26 the Council considered a detailed staff proposal to convert the signalized intersection at Normal Road and Lucinda Avenue to a roundabout, and to eliminate through traffic on Normal Road north of W. Locust Street to Lucinda Avenue to allow the conversion of this Normal Road section by Founders Library to a campus quadrangle. The bold proposal also included the conversion of Normal Road to one way northbound from Lincoln Terrace to W. Locust Street (see following page): Assistive services, including hearing assistance devices, available upon request. City Council Regular Meeting Agenda July 24, 2023 Page 17 of 19 The proposed conversion would allow northbound access to the NIU parking facility and would maintain two-way traffic movements on Carroll Avenue from Lincoln Highway to W. Locust Street. In this scheme, the closed Normal Road section north of W. Locust Street would include a central, paved pathway that could bear emergency Fire and Police vehicles as well as NIU’s Physical Plant vehicles involved in building maintenance and deliveries. Assistive services, including hearing assistance devices, available upon request. City Council Regular Meeting Agenda July 24, 2023 Page 18 of 19 There is much engineering and planning ahead. Both the City Engineer and his professional counterparts at NIU would prefer to proceed with temporary signage and traffic barriers in advance of the 2023 Fall semester by legally establishing the revised traffic schemes. Such a transitional conversion would afford both maintenance personnel and first responders the opportunity to identify and work through the changes with the least impact on everyday service. Ordinance 2023-030 and Ordinance 2023-031 would allow for enforceable revisions in Chapter 51 of the Municipal Code which governs traffic in the City of DeKalb. City Council approval is recommended. (click here for additional information) 3. Ordinance 2023-031 Amending Chapter 51 “Traffic”, Schedule A “One Way Traffic”, as it Pertains to Establishing One Way Traffic on Normal Road from Lincoln Terrace to W. Locust Street. City Manager’s Summary: Consistent with the purposes of Ordinance 2023-030 above, the proposed revision to Chapter 51 allows direct access to the NIU parking garage and several adjacent lots for traffic entering Normal Road from Lincoln Highway, and a sensible circulation for vehicles exiting the parking facility and smaller nearby parking lots in the direction of Carroll Avenue and thence Lincoln Highway. Assistive services, including hearing assistance devices, available upon request. City Council Regular Meeting Agenda July 24, 2023 Page 19 of 19 The ultimate intent is to make the entire segment of Normal Road from Lincoln Highway north to W. Locust Street one-way. However, since that segment intersects with a major state highway (Illinois Route 38) with a signalized intersection, significantly more coordination with the Illinois Department of Transportation is required to enact such a restriction. City Council approval is recommended. (click here for additional information) M. REPORTS AND COMMUNICATIONS 1. Council Member Reports. 2. City Manager Report. N. EXECUTIVE SESSION None. O. ADJOURNMENT REGULAR AGENDA PACKET JULY 24, 2023 Assistive services, including hearing assistance devices, available upon request.