City Council

SPECIAL JOINT MEETING OF THE CITY COUNCIL AND FINANCE ADVISORY COMMITTEE NOVEMBER 20, 2023 6:00 P.M. DeKalb Public Library Yusunas Meeting Room 309 Oak Street DeKalb, Illinois 60115 A. CALL TO ORDER B. ROLL CALL 1. City Council 2. Finance Advisory Committee C. APPROVAL OF THE AGENDA D. PUBLIC PARTICIPATION E. CONSIDERATION OF THE PROPOSED FY2024 BUDGET F. ADJOURNMENT Notice of a Special Joint Meeting of the City of DeKalb City Council and Finance Advisory Committee for November 20, 2023, at 6:00 p.m., called pursuant to Chapter 2 "City Council", Section 2.05 "Special Meetings", of the Municipal Code of the City of DeKalb, Illinois. Assistive services, including hearing assistance devices, available upon request. Fiscal Year 2024 Budget DRAFT This page has been intentionally left blank. Introduction This page has been intentionally left blank. Table of Contents Page Introduction  Table of Contents ..............................................................................................................i-ii  Principal Officials................................................................................................................. iii Section One: Transmittal Letter................................................................................................ 1-18 Section Two: The Community We Serve ................................................................................ 19-31  Strategic Goals and Long-Range Planning ................................................................... 32-34 Section Three: Budget Overview ................................................................................................ 35  Budget Process and Calendar ..................................................................................... 37-38  Fund Structure and Basis for Budgeting ...................................................................... 39-40  Fund Structure Chart ........................................................................................................ 41  Matrix of Funds and Departments.................................................................................... 43  Financial Policies .......................................................................................................... 45-47  Revenues and Expenditures by Category Graphs – All Funds .......................................... 48 Section Four: General Fund Detail .............................................................................................. 49  General Fund Revenues ............................................................................................... 51-57  General Fund Revenues Detail..................................................................................... 58-59  General Fund Expenditures ......................................................................................... 61-65  General Fund Expenditures by Category Detail ........................................................... 66-67  City-Wide Organization Chart ........................................................................................... 69  General Fund Departments Legislative..................................................................................................................... 71-73 City Manager’s Office................................................................................................... 77-85 Human Resources Department.................................................................................... 87-92 Finance Department .................................................................................................... 93-98 Information Technology Department ........................................................................ 99-103 Police Department ................................................................................................... 105-116 Fire Department....................................................................................................... 117-126 Public Works Department........................................................................................ 127-139 Community Development Department ................................................................... 141-157 General Fund Support .............................................................................................. 159-160 Section Five: Special Revenue Funds ........................................................................................ 161  American Rescue Plan Act Fund .............................................................................. 163-164  GEMT Fund............................................................................................................... 165-166  Transportation Fund ................................................................................................ 167-177  Motor Fuel Tax Fund ................................................................................................ 179-181  Special Service Area Funds ...................................................................................... 183-184  Heritage Ridge SSA #3 Fund ......................................................................................... 185  Knolls at Prairie Creek Subdivision SSA #4 Fund .......................................................... 186 i | Page   Greek Row SSA #6 Fund ............................................................................................... 187  Market Square Area SSA #29 Fund............................................................................... 188  Hunter Ridgebrook SSA #30 Fund ................................................................................ 189  Heartland Fields SSA #14 Fund ..................................................................................... 190  Central Area TIF District #3 Fund ............................................................................. 191-195  Community Development Block Grant Fund ........................................................... 197-198  Housing Rehabilitation Fund.................................................................................... 199-200  Foreign Fire Insurance Tax Fund .............................................................................. 201-202 Section Six: Debt Service Funds ................................................................................................ 203  General Debt Service Fund ...................................................................................... 205-208 Section Seven: Capital Project Funds ....................................................................................... 209  Capital Spending Overview ...................................................................................... 211-212  Capital Projects Fund ............................................................................................... 213-214  Capital Equipment Replacement Fund .................................................................... 215-217 Section Eight: Enterprise Funds ................................................................................................ 219  Water Operations Fund ........................................................................................... 221-227  Water Construction Fund ........................................................................................ 229-230  Water Capital Fund .................................................................................................. 231-233  Airport Fund ............................................................................................................. 235-239  Refuse & Recycling Fund .......................................................................................... 241-242 Section Nine: Internal Service Funds .................................................................................. 243-248  Workers Compensation & Liability Insurance Fund  Health Insurance Fund Section Ten: Fiduciary Funds .............................................................................................. 249-254  Police Pension Fund  Fire Pension Fund Section Eleven: Discretely Presented Component Unit  DeKalb Public Library Fund ...................................................................................... 255-261 Appendix .................................................................................................................................... 263  Financial Policies ...................................................................................................... 265-296  Performance Measures............................................................................................ 297-305  Glossary .................................................................................................................... 307-313  Chart of Accounts..................................................................................................... 315-326  Non-Bargaining Unit Pay Plan .................................................................................. 327-328 ii | Page  PRINCIPAL OFFICIALS Mayor Cohen Barnes City Council Alderman Carolyn Zasada, Ward One Alderman Barbara Larson, Ward Two Alderman Tracy Smith, Ward Three Alderman Gregory Perkins, Ward Four Alderman Scott McAdams, Ward Five Alderman Mike Verbic, Ward Six Alderman John Walker, Ward Seven Executive Assistant Ruth Scott City Manager Bill Nicklas Executive Team Susan Hauman, Director of Financial Services David Byrd, Police Chief Mike Thomas, Fire Chief Bryan Faivre, Director of Utilities & Transportation Andy Raih, Director of Streets & Facilities Michelle Anderson, Human Resource Director Jeremy Alexander, IT Director Dan Olson, Planning Director Bob Redel, Director of the Crime-Free Bureau Dawn Harper, Chief Building Official Zac Gill, City Engineer John Donahue/Matt Rose, City Attorneys iii | P a g e This page has been intentionally left blank. Section One Transmittal Letter This page has been intentionally left blank. DATE: November 20, 2023 TO: Honorable Mayor Cohen Barnes DeKalb City Council FROM: Bill Nicklas, City Manager RE: Letter of Transmittal: Fiscal Year 2024 Budget The Annual Budget for Fiscal Year 2024 extends from January 1, 2024 through December 31, 2024. This budget document compiles the numerical and narrative budgets for each governmental, proprietary, and fiduciary fund in one volume for easy reading and reference. In the creation of this budget document, Director of Financial Services Susan Hauman and Senior Accountant Meagan Challand were particularly helpful. I. OVERVIEW The City’s fiscal year budget is the outcome of a very transparent process that encompasses about five months. It begins only a month after the presentation and approval of the previous fiscal year’s audit in late June and continues through the adoption of the annual budget in early December. The first threshold is a presentation of very provisional General Fund revenue and spending projections before a joint meeting of the City Council and the Finance Advisory Committee (FAC) in mid-August. At this annual August meeting, the City Manager and Finance staff share projections regarding the City’s General Fund revenues that are largely speculative because a large portion of the general revenues are tied to state-shared revenues (e.g., the 1% state sales tax, local use tax, and state income tax) or local revenues collected by the state and later remitted to the City (e.g., home rule tax) with a typical 2-3 month lag. In truth, our City officials are looking at key income categories that reflect consumer spending in April and May of the current fiscal year, and using those early numbers to predict revenues and expenditures at a forward point about 8 months ahead. For City staffers there is a further difficulty in 2023: the pricing of commodities and contractual services have been complicated by economic uncertainty for three of the past four years, and in the second and third quarters of 2023 even the most seasoned prognosticators were puzzled about Federal Reserve policies, and continuing strong labor and equity markets. In this environment, the City staff have looked hard at “interior” trends in locally generated revenues, and resisted the temptation to predict when uncertainty will ease. Year-on-year estimates and 1 | Page focused budget sessions with City department heads have contributed significantly to the forecasting in the pages that follow. II. GENERAL FUND A. GENERAL FUND REVENUES The City’s General Fund is particularly worthy of attention as it supports the operating departments whose services our local residents and businesses encounter most often in any given year. In FY2024, as in recent years, the City’s general operations are funded by certain major revenue sources, which comprise about $35.219 million, or 70% of the total General Fund revenues. The following table highlights those revenues: Major General Fund Revenues--2024 FY2021 FY2022 FY2023 FY2023 FY2024 FY2024 % of Total Actual Actual Amended Projected Proposed Amt. Change* FY24 Rev. Type Property Taxes Fire Pension 3,520,454 3,672,401 3,869,713 3,869,713 4,415,632 545,919 8.82% Police Pension 2,912,595 3,083,738 3,249,417 3,249,417 3,707,827 458,410 7.40% Total 6,433,049 6,756,139 7,119,130 7,119,130 8,123,459 1,004,329 16.22% Sales & Use Taxes State Sales Tax 6,205,962 6,626,891 6,017,000 6,752,802 6,881,105 128,303 13.74% Home Rule Sales tax 7,675,584 8,592,479 7,282,000 8,729,959 8,869,638 139,679 17.71% Gross Receipts Taxes Munic. Utility Tax 2,528,658 2,463,148 2,535,000 2,535,000 2,636,400 101,400 5.26% Intergovernmental Federal--ARPA 1,511,017 1,997,435 1,837,285 1,837,285 1,019,023 2.03% (818,262) SAFER 851,566 908,602 908,602 961,089 52,487 1.92% State Income Tax 5,787,319 6,565,145 6,285,240 6,446,400 6,728,430 282,030 13.44% Total Major Revenues 30,141,589 33,852,803 31,984,257 34,329,178 35,219,144 889,967 70.33% Other Rev Sources 14,858,901 29.67% Total Gen Fund Rev. 50,078,045 100.00% *Change From FY2023 Projected to FY2024 Proposed 2 | Page a) Police and Fire Property Tax Levies. In the last regular Legislative session, the Illinois Legislature agreed to establish a working group to consider bringing the assets of the Police and Fire downstate public safety pension funds to a 90% funding level by 2050 instead of 2040. This proposed re-amortization will have no impact on the City’s 2023 levies for the two funds. The City of DeKalb will meet 100% of its pension obligations, as defined by the City’s actuarial consultant, but the annual 2023 levy will not cover the entirety of that obligation. The remainder will be paid from other General Fund revenues as indicated 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% In short, 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. The ultimate resolution of the downstate pension crisis is possibly 3-5 years away and will require the State Legislature’s shift to an “open amortization” model. In the near term, the City has been able to find some relief owing to the extraordinary EAV increases attending the continuing industrial development south of I-88. The evidence is found in the difference between the required pension contributions established each year by the City’s actuary and the actual City debt levies (the yellow-highlighted “shortfall” in the table above). In FY2024, for the first time in many years, a smaller “shortfall” can be achieved. This is the singular result of being able to levy for a higher proportion of the entire City obligation ($8,123,459 or 85.7% in 2024 vs 80.6% in 2023) while reducing the City’s tax rate. Through the annual, in-depth levy discussion in October and November each year, the estimated City EAV for the current year is refined with the close cooperation of the DeKalb County Supervisor of Assessments, and takes into account the equalization factors recommended by the DeKalb Township and Afton Township Assessors. The City’s emphasis on local property tax reduction has most recently been spearheaded by Mayor Barnes. The City has provided leadership since 2018 3 | Page  when the Council realized the community was at an economic crossroad: if unaddressed the property tax burden on local businesses, homeowners, and renters alike would put DeKalb in a non-competitive economic position. In the spring of 2022, when the most recent City financial plan was prepared, DeKalb’s aggregate tax rate was nearly 20% higher than the aggregate rates of the City’s nearest geographical competitors, which averaged about $9.0009 per $100 EAV. The City’s aggregate tax rate in 2019 was $11.73467 per $100 EAV. In 2020, the aggregate rate was 11.49927. The 2021 and 2022 aggregate rates are portrayed in the following table, as well as achievable aggregate rate goals shown for 2023 through 2025: Taxing Body 2021 Rate 2022 Rate % Diff. 2023 2024 2025 Actual Actual -5.00% -4.00% -3.00% County (blended) 1.03149 0.96761 -6.19% 0.91923 0.88246 0.85599 Forest Preserve (blended) 0.07355 0.06915 -5.98% 0.06569 0.06306 0.06117 DeKalb Township 0.14864 0.14107 -5.09% 0.13402 0.12866 0.12480 DeKalb Road & Bridge 0.17298 0.17052 -1.42% 0.16199 0.15551 0.15085 City of DeKalb 0.00000 0.00000 0.00% 0.00000 0.00000 0.00000 DeKalb Pension Funds 0.98612 0.89599 -9.14% 0.85119 0.81714 0.79263 DeKalb Library 0.38546 0.37454 -2.83% 0.35581 0.34158 0.33133 DeKalb Park District (blended) 0.69631 0.67796 -2.64% 0.64406 0.61830 0.59975 School District 428 (blended) 6.80841 6.09342 -10.50% 5.78875 5.55720 5.39048 Kishwaukee College 0.64100 0.60874 -5.03% 0.57830 0.55517 0.53852 KWRD 0.11998 0.10937 -8.84% 0.10390 0.09975 0.09675 Aggregate Rate: 11.06394 10.10837 -8.64% 9.60295 9.21883 8.94227 The achievement of such rate reduction is leveraged by the very significant EAV growth along the Gurler Road corridor between S. Route 23 and Peace Road. The City’s estimated EAV in 2023 is $998,000,000 largely owing to the extraordinary EAV growth from Meta (DeKalb Data Center), Ferrara Candy Company, Wehrli Custom Fabrication, and Amazon. The following table tracks the City’s EAV growth over ten years: Year Rate-Setting EAV: City City Levy City Rate 2014 464,966,381 4,270,540 1.0245 2015 468,077,742 5,094,730 1.1942 2016 503,861,829 5,565,384 1.2021 2017 529,629,464 6,004,594 1.2268 2018 547,947,687 6,017,140 1.1883 2019 585,726,839 6,269,649 1.1541 2020 610,333,062 6,522,507 1.06868 2021 694,171,673 6,845,317 0.98612 2022 794,561,930 7,119,130 0.89599 2023* 998,000,000 8,123,459 0.81397 *Estimated 4 | Page The estimated impact of the City’s proposed levy of $8,123,458 on a theoretical householder with a home carrying a present market value of approximately $375,000, including a DeKalb Township multiplication factor (“multiplier”) of 1.0953, is illustrated in the table below: City of DeKalb Year Base EAV Equalization Factor New EAV Homestead Final EAV DeKalb Rate DeKalb Tax 2019 $97,906 1.0351 $101,343 -$6,000 $95,343 1.1549 $1,101.11 2020 $101,343 1.0409 $105,488 -$6,000 $99,488 1.06868 $1,063.21 2021 $105,488 1.0162 $107,197 -$6,000 $101,197 0.98612 $997.92 2022 $107,197 1.0662 $114,293 -$6,000 $108,293 0.89599 $970.30 2023 $114,293 1.0953 $125,185 -$6,000 $119,185 0.81397 $970.13 b) State Sales Tax and Home Rule Sales Tax. As the recent FY2022 Audit reported, Sales and Use tax revenues were significantly understated in the FY2022 Budget, which led to a corresponding rise in the City’s fund balance at the end of FY2022. The understatement was an outcome of an abundance of caution during the budget preparation in the fall of 2021. Overall General Fund revenue and other financing sources in FY2022 exceeded the amended budgeted amount by $2,939,912 (6.7%). Additionally, overall FY2022 General Fund expenditures and other financing uses came in under the amended FY2022 budget by $545,498 (or 1.3%). The net increase in fund balance was $5,691,610 after all year-end adjustments and transfers were made. For the proposed FY2024 Budget, year-on-year and month-on-month reviews comparing FY2023 and FY2022 actual numbers were conducted over recent months with Susan Hauman, Director of Financial Services. FY2024 state sales tax revenue is expected to increase by $128,303 or 1.9% over projected year-end FY2023 revenue, and home rule sales tax revenue is expected to increase by $136,679 or 1.6% over projected year-end FY2023 taxes. c) Municipal Utility Tax. This category includes electric (ComEd) and gas (Nicor) tax receipts. The tax is based on kilowatt hours (electric) and therms (gas). The estimated 2024 revenues were based on the monthly averages for the past 5 years. This estimate should be conservative: the recently energized Meta spaces should generate a notable increase in electric usage even with the 50% discount that was part of the Meta incentive package. d) American Rescue Plan Act (ARPA) grant revenue continues to offset the cost of re-hiring previously frozen positions in the General Fund. ARPA monies have also been spent through the ARPA Fund (Fund 110) for the Hunter Hillcrest purchase, tenant relocation and demolition, lead service line replacement at scattered sites in DeKalb, and AGN street re-surfacing. Within the General Fund, twenty-one (21) fire, police, and public works employees' salaries and benefits are being funded by this grant. The ARPA funding will be exhausted at the end of FY2024. e) State income tax is allocated on a per capita basis by the State of Illinois. The population used since 2022 is 40,290. The Illinois Municipal League's per capita estimate of $167.00 was used to formulate the 2024 projected amount. Current data suggests flat growth in individual incomes, but the Illinois Legislature has approved about a 5% increase in municipal distributions from the Local Government Distributive Fund, which was effective August 1, 2023. This will increase the LGDF distribution rate from 6.16% to 6.47% of the LGDF. The City of DeKalb and the other 1,295 municipalities in Illinois are united in seeking the restoration of the 10% rate that prevailed for decades until the housing crisis of 2008. 5 | Page B. GENERAL FUND EXPENDITURES--OVERVIEW The FY2024 General Fund Budget features a major fiscal initiative: the building and staffing of a fourth Fire station. As the City staff wrestled with broader regional and national economic trends in the second quarter of 2023, the City Manager challenged the three largest departments with first- response duties – Fire, Police, and Public Works – to engage in longer-term planning for both staffing 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. Although useful in any fiscal year planning, this exercise was also partially driven by the City’s dramatic economic development in the past three years and the likelihood of greater demands for public service as the economic and social impacts of these developments unfold. For several reasons, the preliminary outcome of this planning initiative focused upon 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. The National Fire protection Agency (NFPA) defines response time as the “time that begins when units are enroute to the emergency incident and ends when units arrive at the scene.” This does not include the time for the alarm, dispatch, and turnout prior to rolling an engine or ambulance. The NFPA gold standard for response times is 4 minutes. There is no silver standard, based on decades of technical study establishing life-saving parameters in both EMS and fireground incidents. On July 24, the City Manager presented a detailed report to the City Council on the Fire Department’s current “coverage” with the existing three Fire stations. This report was also shared with the FAC on August 21. The conclusions were as follows: 1. The southwest quadrant of the City comprising much of the Seventh Ward and large areas within the Fourth, Fifth and Sixth Wards including the new industrial developments south of I-88 routinely experience an average response time of approximately six minutes under the most favorable weather and traffic conditions. 2. Fire and EMS responses to the southwest quadrant are entirely provided by Fire personnel housed at Station 1 (N. Seventh Street), Station 2 (S. Seventh Street) and Station 3 (W. Dresser Road). Station 3 on DeKalb’s northwest side often covers the southwest City quadrant either with first-arriving or second-arriving units because of the relatively faster path of travel due south on Annie Glidden Road versus cross-town across two-lane streets with multiple intersections. 3. The response times from all stations also rise as a result of simultaneous calls, which are growing. Of the Department’s 7,437 calls of all types in 2022 (including rural Fire District calls), 2,744 (37%) “overlapped” with other calls requiring recall alerts to fill empty stations and to beef up staff responses already in progress. In 2018 simultaneous calls constituted 2,145 out of 6,082 total calls (35%). 6 | Page 4. A fourth station was identified by the Council as the most viable solution to the serious challenge of rising response times, particularly in the southwest quadrant of the City. It should be noted that a future fourth station was envisioned as a possibility in the 1990s when the City accepted a one-acre parcel dedication near the corner of W. Taylor Street and S. Annie Glidden Road as the Schnuck’s subdivision was approved. 5. The capital and staffing costs associated with a fourth station are affordable at this time. With respect to capital costs, debt service on the City’s outstanding General Obligation Bonds (Series 2010C, 2012A, 2013 B, 2019 and 2020) is currently paid out of the General Fund (as opposed to a debt service levy) but in four years the annual payments will decline by about as much as any new debt service on a 15-year bond for construction of a fourth station. The debt service on the $4,210,000 General Obligation Bonds approved in September 2023 and issued in October 2023 with an underlying Moody’s rating of “A1” will bring interest payments beginning in 2024 and principal repayments beginning in 2025. All of the City’s previous G.O. debt commitments will be retired in 2030 and debt service for the fourth station will continue at a level no greater than the current debt service of about $1.865 million. With respect to staffing costs associated with a fourth station, the City’s GEMT (Ground Emergency Medical Transportation) Fund or Fund 130 can carry a significant share of the associated staffing and pension costs. GEMT funds constitute an annual federal reimbursement to fill the “gap” between what the City might receive in Medicaid funds for ambulance transports and the actual cost of the ambulance service. More information on the proposed debt service is displayed in the chart below. 15 Year Term Fiscal Yr. GF Debt Principal Interest Total D/S Aggregate D/S Diff vs. 2023 2023 $1,862,841 * 2024 $1,862,841 $0 $135,656 $135,656 $1,998,497 $135,656 2025 $1,861,121 $195,000 $205,625 $400,625 $2,261,746 $398,905 2026 $1,863,782 $205,000 $195,625 $400,625 $2,264,407 $401,566 2027 $1,865,256 $215,000 $185,125 $400,125 $2,265,381 $402,540 2028 $1,458,244 $225,000 $174,125 $399,125 $1,857,369 ($5,472) Total $8,911,244 $840,000 $896,156 $1,736,156 $10,647,400 Avg: $266,639 FY24-FY27 *Includes Series 2010C, 2012A, 2013B, 2019, and 2020 Bonds n.b.: City share of Library debt is paid from an interfund transfer 6. The Council agreed with the staff recommendation not to reach into the substantial General Fund surplus to fund the fourth station “out of pocket.” The City is currently earning 5% interest on its cash deposited in Illinois Funds managed by the Illinois State Treasurer. The average City balances are actually building the City’s reserves. In addition, the true interest cost of the new bonds is about 4.61%. 7 | Page The following table makes a global, multi-year, General Fund projection based on available data and local fiscal trends, and assumes an FY2024 commitment to build and staff a fourth fire station: FY22 Actual FY23 Projected FY24 Requested FY25 Projected FY26 Projected FY27 Projected Starting Fund Balance $ 19,625,868 $ 25,317,478 $ 30,172,780 $ 33,462,579 $ 34,086,149 $ 34,599,752 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 $ 21,224,075 $ 21,754,677 $ 22,298,544 Gross Receipts Taxes $ 3,304,467 $ 3,321,426 $ 3,454,283 $ 3,592,454 $ 3,727,553 $ 3,867,883 Intergovernmental CARES Act $ - $ - $ - $ - $ - $ - ARPA Grant $ 1,997,435 $ 1,837,285 $ 1,019,023 $ - $ - $ - SAFER Grant $ 771,938 $ 908,602 $ 961,089 $ - $ - $ - All Other (Inc. Income Tax) $ 8,056,908 $ 7,897,019 $ 8,096,144 $ 8,379,930 $ 8,698,117 $ 9,034,234 Licenses & Permits $ 1,044,722 $ 1,050,406 $ 1,060,866 $ 1,071,528 $ 1,082,404 $ 1,093,497 Service Charges $ 3,911,785 $ 4,303,274 $ 4,376,905 $ 4,451,900 $ 4,528,286 $ 4,606,089 Fines $ 448,960 $ 487,250 $ 496,420 $ 498,413 $ 502,232 $ 506,126 Other Income $ 568,659 $ 966,199 $ 801,387 $ 966,760 $ 970,861 $ 975,011 Transfers In $ 582,980 $ 553,947 $ 1,058,887 $ 1,313,889 $ 1,569,017 $ 1,574,272 Total Revenues $ 47,079,526 $ 48,570,959 $ 50,078,045 $ 50,458,767 $ 52,688,945 $ 54,707,438 Expenditures by Category Personnel $ 32,608,690 $ 35,984,197 $ 38,387,026 $ 41,127,811 $ 43,376,265 $ 45,785,280 Commodities $ 964,864 $ 994,881 $ 1,126,510 $ 1,103,140 $ 1,104,312 $ 1,126,399 Contractual Services $ 4,514,631 $ 4,044,685 $ 4,413,753 $ 4,313,506 $ 4,398,954 $ 4,486,111 Equipment $ 102,698 $ 159,454 $ 191,050 $ 154,871 $ 157,968 $ 161,128 Debt Service * $ 516,754 $ 469,599 $ 471,409 $ 470,748 $ 470,060 $ 469,088 Transfers Out # $ 2,680,280 $ 2,062,841 $ 2,198,497 $ 2,665,121 $ 2,667,782 $ 2,668,256 Total Expenditures $ 41,387,916 $ 43,715,657 $ 46,788,245 $ 49,835,197 $ 52,175,342 $ 54,696,262 Net Change $ 5,691,610 $ 4,855,302 $ 3,289,800 $ 623,570 $ 513,603 $ 11,176 Prior Period Adjustment $ - $ - $ - $ - $ - $ - Ending Fund Balance $ 25,317,478 $ 30,172,780 $ 33,462,579 $ 34,086,149 $ 34,599,752 $ 34,610,928 vs. Reserve Policy 25% 61.17% 69.02% 71.52% 68.40% 66.31% 63.28% * payment on Library bonds; previously reported under transfers # includes annual transfer to Debt Service Fund C. GENERAL FUND EXPENDITURE ASSUMPTIONS—OVERALL STAFFING 1. Personnel. With the Council’s commitment to the fourth Fire station, the proposed FY2024 General Fund Budget includes 12 new full-time hires: a) Nine new firefighter/paramedics to be hired after July 1, 2024, to staff a fourth fire station. To staff a fourth fire station while meeting NFPA staffing standards, a minimum of four 8 | Page  firefighter/paramedics and an officer would typically be required on any given shift day, which would mean an additional fifteen (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 (9) 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 alarm 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. Such a transitional arrangement is negotiable with IAFF Local 1236 because it impacts essential working conditions. Local 1236 has been consulted in this matter and is willing to proceed with the “jump company” concept in the good faith that the duration of the transition to a five-member complement will be resolved when the Fire contract is re-opened prior to its expiration in 2024. The GEMT fund (Fund 130) will show a major commitment to the ongoing staffing costs associated with the new fire station. The comparative funding shares for the staffing costs associated with the fourth fire station are shown in the chart below: 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 b) Four new Police officers to bring the total number of sworn officers to 73 from the authorized level of 70 sworn officers in 2023 (67 Patrol Officers and Sergeants; 6 Command Staff). b) One new Public Works mechanic was hired in 2023 to specialize in the repair and maintenance of Fire vehicles in particular, in order to reduce the rising third-party expenses to keep the department’s ambulances and engines road-worthy. The table that follows depicts the General Fund Staffing Plan in FY2024 and four previous years: 2020 2021 2022 2023 2024 FT PT FT PT FT PT FT PT FT PT City Manager’s Office 5 1 5 1 5 1 5 0 5 0 Human Resources 2 1 1 2 2 2 3 1 3 1 Finance Department 5 2 5 0 6 0 6 0 6 0 9 | Page Information Technology 3 1 3 1 3 1 3 1 3 1 Police Department 80 16 81 19 84 10 92 9 95 8 Fire Department 57 0 54 1 62 1 64 0 73 0 Public Works Department 33 18 31 11 35 17 36 18 37 18 Community Development 7 1 7 0 8 0 7 0 7 0 Total 192 40 187 35 205 32 216 29 229 28 FTE 212 204.5 221 229 243 D. GENERAL FUND DEBT SERVICE To fund the construction of Fire Station #4, the City issued a 15-year, $4.265 million general obligation bond in October 2023 with interest payments beginning in 2024 and principal repayment beginning in 2025. The City’s aggregate General Fund-supported debt service is approximately equivalent to the present annual G.O. debt service level from 2028 onward (~$1,865,000). Debt Service for Series 2023 Bond (15-year term) Fiscal General Fund Principal Assumed Assumed Assumed Total Debt Aggregate Year Debt Service* Rate Yield Interest Service Debt Service 1-Jan 1/1 & 7/1 2024 $1,862,841 $135,656 $135,656 $1,998,497 2025 $1,861,121 $195,000 5.00% 4.14% $205,625 $400,625 $2,261,746 2026 $1,863,782 $205,000 5.00% 4.09% $195,625 $400,625 $2,264,407 2027 $1,865,256 $215,000 5.00% 4.05% $185,125 $400,125 $2,265,381 2028 $1,458,244 $225,000 5.00% 4.00% $174,125 $399,125 $1,857,369 2029 $1,457,211 $235,000 5.00% 4.01% $162,625 $397,625 $1,854,836 2030 $1,458,000 $245,000 5.00% 4.07% $150,625 $395,625 $1,853,625 2031 $260,000 5.00% 4.12% $138,000 $398,000 $398,000 2032 $275,000 5.00% 4.16% $124,625 $399,625 $399,625 2033 $290,000 5.00% 4.21% $110,500 $400,500 $400,500 2034 $300,000 5.00% 4.35% $95,750 $395,750 $395,750 2035 $320,000 5.00% 4.35% $80,250 $400,250 $400,250 2036 $335,000 5.00% 4.59% $63,875 $398,875 $398,875 2037 $350,000 5.00% 4.59% $46,750 $396,750 $396,750 2038 $370,000 5.00% 4.75% $28,750 $398,750 $398,750 2039 $390,000 5.00% 4.75% $9,750 $399,750 $399,750 Total $13,678,374 $4,210,000 $1,907,656 $6,117,656 $19,796,030 *Includes Series 2010C, 2012A, 2019, and 2020. III. WATER FUND The City Budget features five enterprise funds: • The Water Operations Fund • The Water Construction Fund • The Water Capital Fund 10 | Page  • The Airport Fund • The Refuse and Recycling Fund This summary will focus upon the City-operated water utility and its impact on every residence and business in the City. A. Water Operations Fund The Water Operations Fund (Fund 600) provides for the supply, treatment, storage, and distribution of the City's potable water system, which provides approximately 1.1 billion gallons of water annually to DeKalb residents. The City’s Public Water System is a modern, state-of-the-art water supply and serves a population of over 40,000 permanent residents plus non-resident students at Northern Illinois University. Water provided to the residents of DeKalb comes from six deep wells drawing water from deep sandstone aquifers, and three shallow wells that draw water from sand and gravel aquifers. Groundwater is treated at one of five ion-exchange/iron removal water treatment plants. The treatment process produces a high quality water supply by reducing the amount of hardness and iron in the water. Before leaving the treatment plant, groundwater is treated with chlorine and phosphate to ensure the safety of the water supply within our distribution system. In addition, fluoride is added to the water to promote the development of strong teeth. After treatment, the water enters the distribution system for use or is stored in one of the City’s four elevated water towers. The four towers have the ability to store a total of 5.75 million gallons. The elevated towers also maintain system pressures for fire protection. The Utility staff maintain over 181 miles of water main making up the City’s water distribution system. Included in this system is over 2,500 hydrants, 3,000 valves, and 11,000 service lines and water metered accounts. Ensuring all these assets are adequately maintained is critical to a safe, uninterrupted water supply to our community and the ability to always provide fire protection. The primary source of funding for the Water Operations Fund is water sales, accounting for over 96% of the total revenue. The Water Department experienced an increase in water sales of 2.0% in 2023 over the prior year. This is the third year in a row that water sales have increased. Prior to this, water sales decreased an average of 1.46% annually over the past 10 years. Water use is expected to stabilize or moderately increase over the next few years because of new development to the area. This includes the new Ferrara, Meta, Amazon, and Kraft/Heinz facilities as well as additional water demands expected as a result of DeKalb Plaza, Isaac Suites, Home2 Suites, Agora Towers, and Johann Suites among others. 11 | Page  WATER FUND REVENUE SUMMARY 96.64% WATER SALES REVENUE 0.48% WATER IMPACT FEES 1.62% 0.08% 1.19% WATER SERVICE MISCELLANEOUS INVESTMENT CHARGES REVENUE INTEREST WATER REVENUES 6,000,000 5,800,000 5,600,000 5,400,000 5,200,000 5,000,000 4,800,000 4,600,000 4,400,000 4,200,000 4,000,000 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 12 | Page B. Water Construction Fund The Water Construction Fund (Fund 610) receives impact fee revenue from new construction activity. Expenditures are restricted to the construction of new water infrastructure (water mains, wells, water tower and water treatment plants). In FY2023, no monies were expended from this fund. The Water Construction Fund is expected to end the FY2023 budget year with a fund balance of $1,029,676. In FY2024, purchase of a new emergency diesel generator has been budgeted at cost of $600,000 for the West Lincoln Highway Water Treatment Plant, to service both the water treatment plant and Well No.10. The generator will increase emergency pumping capacity by over 3 million gallons per day (MGD), bringing the total emergency capacity from 6.7 MGD to over 9.7 MGD. C. Water Capital Fund The capital portion of the Water Fund was split into its own fund in FY2016.5. The City Council supported the creation of the Water Capital Fund to track and finance water-related expenses pertaining to fleet, equipment, and upgrades of existing water infrastructure such as water mains, wells, treatment plants and water towers. To provide a funding source to finance the capital improvements, the Council approved a water rate increase of 4.5% each year over a five-year period (2016-2020) with the stipulation that 2/3 of each year’s rate increase (or 3% of the 4.5% annual increase), would be directed into the Water Capital Fund (Fund 620). The remaining 1.5% would be directed into the Water Operations Fund (Fund 600). It should be noted that the rate increase in 2016 was only 2.2% and not 4.5%, so only 1.47% of this rate increase was directed into the Water Capital Fund. Subsequent rate increases since 2020 have been tied to the CPI and follow the same guidelines noted above with two-thirds of the revenue directed to Fund 620 and one third to Fund 600. In 2021, the CPI was 2.5% and in 2022, the CPI was 7.2%. However, in light of the severe impact of rapidly rising inflation in the first two fiscal quarters of 2022, the Council elected to increase the 2022 rate by only 3.5%. Likewise, in 2023, the CPI was 5.4%, and Council again elected to increase the 2023 rate by only 3.5%. Water Operations Water Capital Total Annual Fund 600 Fund 620 Annual Revenue Water Rate Annual Revenue Annual Revenue Generated from Fiscal Year Increase 33% of Rate Increase 67% of Rate Increase Rate Increase 2016.5 2.20% $19,782 $39,563 $59,345 2017 4.50% $80,156 $160,313 $240,470 2018 4.50% $153,982 $307,964 $461,946 2019 4.50% $228,001 $456,001 $684,002 2020 4.50% $301,255 $602,510 $903,765 2021 2.50% $367,592 $735,183 $1,102,775 2022 3.50% $413,204 $866,509 $1,279,713 2023* 3.50% $432,605 $977,687 $1,410,292 Total $1,996,577 $4,145,730 $6,142,307 13 | Page In the table above, from FY 2016.5 – 2022 the amounts are based on actual totals from the financial statements. The 2023 totals are projected based on anticipated 2023 operating results. Major accomplishments during FY2023 include: • Installation of over 290 feet of water main replacement across the river at the North First Street bridge. • Well No. 16 and 17 maintenance and repair. • Over 20 lead service line replacements. • Purchase of a new utility vehicle for water distribution repairs and maintenance. Since the creation of the Water Capital Fund in 2016, over 10 million dollars of water capital improvements have been completed. Some of the projects include the following: Projects Total Costs 2016 - 2023 2016 - 2023 Water main replacement • Kishwaukee Ln, Lewis & Vienna, South Sixth St., Maplewood Ave, South $5,502,851 Eleventh St., Sunset Place, Joanne Ln, Ilehamwood, Golfview, Oak Dr., Joanne Ln. (phase II), N. 13th and N. 14th Street, N. First St. at bridge Well Maintenance $791,605 North and South Water Tower Painting $2,016,811 Vehicles and Equipment (Backhoe, Loader, Tandem Dump Truck, Utility Vehicles) $1,088,019 Sewer Repair (218 & 226 E. Lincoln Hwy) $80,000 Water Meter Software Update $25,000 Lead Service Line Replacement $650,000 Water Meters $515,000 BS&A Utility Billing Software $314,000 TOTAL $10,983,286 Over $2.1 million of water capital improvements are included in the FY2024 Budget: Tentative Estimated FY2024 Projects Costs Water Main Lining – Walmart Parking Lot (1,600 feet) $576,000 Routine Meter Replacements and New Water Meter Purchases $80,000 Well No. 7 – Maintenance and Inspection $170,000 SCADA Upgrade (includes Water Model Update of $154,800) $505,000 New Vactor Truck Purchase $650,000 Replace W-6 Vehicle – pickup truck $60,000 Lead Service Line Replacements $50,000 Resurface Asphalt at Dresser Rd. WTP and North Water Tower $70,000 TOTAL $2,161,000 14 | Page  IV. OTHER CAPITAL FUNDS The revenue and spending projections for the City’s street and fleet replacement programs that were presented to the Council and Finance Advisory Committee in mid-August, 2023 have not substantially changed. The narrative summaries that follow speak to the numerical budget spreadsheets in this budget document. A. Motor Fuel Tax Fund (Fund 210). The City receives a per capita allocation of Illinois Motor Fuel Tax (MFT) revenues on a monthly basis from a State tax on gasoline purchases. These funds can only be used for certain costs related to street maintenance and improvement projects, as set forth by the State of Illinois. The annual MFT allotment to the City in FY2024 is projected to be flat at $1,700,000. According to the Illinois Municipal League, gas prices lingering around $3.85 per gallon across Illinois have not depressed the number of gallons pumped, which is the basis for the MFT calculation. Several years ago, the REBUILD Illinois capital bill issued bonds and local municipalities have received allocations from that bond revenue. DeKalb received REBUILD support for its bridge replacement work at Lucinda Avenue and N. First Street and will expend the balance of those funds in the first half of FY2024. About $618,000 of the FY2024 state MFT allocation will be used to defray the City’s electrical charges for streetlights ($333,000) and road salt purchases ($285,000) which have levelled since the annualized inflation rate peaked in June of 2022. At that time, the yearly inflation rate was about 9.1%; it is currently about 6%. An additional allocation for street supplies and commodities ($133,000) can be considered part of the annual street maintenance work. FY2023 was the State MFT-designated year for annual street maintenance which is alternated with the City’s Capital Projects Fund (Fund 400). The relatively higher balance in Fund 210 will support the largest portion of the street maintenance program again in 2024, including about $1,650,000 in street-related projects and engineering costs. Fund 400 can contribute $650,000 for street and alley resurfacing and related engineering costs. Overall, the street maintenance budget in 2024 will match the ambitious work completed in 2023. Among the scattered street sections scheduled for re-surfacing or repair in 2024 are the road surface under the Annie Glidden Road railroad trestle, Fairview Drive, the Heritage Ridge streets, Sunnymeade Trail, Fox Hollow, and Garden Road. The actual scope of the street maintenance program is always subject to bid prices and budget parameters. B. Capital Projects Fund (Fund 400). The local motor fuel tax rate of 9.5 cents per gallon is split between road expenditures (7 cents), airport expenditures (1.5 cents), and vehicle replacement (1 cent). Proceeds from the local tax on motor fuel can be used for any public capital improvement. In FY2024 a total of $935,000 is projected in local motor fuel tax revenue. The year-end FY2022 local fuel tax revenue was $930,053. Aside from the funds allocated for street and alley maintenance and engineering in FY2024 ($650,000), the fund will also support the purchase of IT equipment such as PC replacements, network infrastructure upgrades, and public safety cameras ($65,000), miscellaneous building improvements ($20,000), the non-TIF architectural improvement program started in 2023 ($70,000), and the annual Barb City Manor allocation ($50,000). 15 | Page C. Capital Equipment Replacement Fund (Fund 420). The City’s GEMT Fund has supported Fire department vehicle and equipment needs for several years and will continue to do so. The Police and Public Works departments rely upon the one cent per gallon local fuel tax which will raise an estimated $120,000 in 2024. Another source of annual revenue in Fund 420 consists of lease payments from telecommunication companies with antennae on the City’s water towers (“Rental Income”) and sales of surplus property (such as old vehicles put out of service or land sales). In FY2023, payments from the DeKalb County E-911 board totaling several hundred thousand dollars were shifted under new auditing rules to the General Fund because of their personnel content, reducing the recurrent funding sources. A new dedicated funding source – cannabis tax payments – has not yet been realized but is expected to begin accruing in FY2024. In FY2024, the following vehicle expenses are planned:  Police: $260,000 (4 squad replacements)  Public Works: $401,840  Used 2017 Mack Single Axle Dump with Wing Plow from DeKalb Township ($150,000)  Utility Tractor ($75,000)  Two F250 4x4 Pickups with plow packages ($126,210)  One F250 4x4 Pickup without Plow ($50,630)  Building: $42,500 (inspection vehicle)  Crime-Free: $42,500 sedan D. Central Business District Tax Increment Finance Fund (Fund 262). Since the Central Area TIF (TIF #1) expired on December 31, 2021, TIF #3 has constituted the City’s TIF program. The geographical area is very modest: extending approximately two blocks either side of Lincoln Highway from the NIU lagoon eastward to Seventh Street. The annual TIF income is about $520,000 instead of the approximately $7 million under TIF #1. Nevertheless, by combining the residual balance in TIF #1 upon its closure with accruing revenue in TIF #3, the City was able to accomplish the IL Rt. 38 reconfiguration last year and incentivized the redevelopment of the former City Hall site on S. Fourth Street (City Hall Suites). Additionally, TIF #3 has financed a number of “architectural improvement” projects in the downtown area over the past few years. The proposed FY2024 TIF #3 budget will pay out a “surplus distribution” to the other local taxing bodies representing 30% of the property taxes received according to the intergovernmental agreement that was fully executed in January 2021. The proposed budget also funds $100,000 in “AIP” (Architectural Improvement Program) projects as in FY2023 and potentially another $92,697 in private property rehab work at 151 N. Fourth Street (262-00-00-69199). Line item 262-00-00-83900 sets aside $290,000 for expenditures related to other potential downtown redevelopment. 16 | Page  V. CITY-WIDE FUND BALANCES FUND BALANCE SUMMARY FUND BALANCE 2024 2024 FUND BALANCE PROJECTED BUDGETED BUDGETED PROJECTED % FUND FUND NAME 12/31/2023 REVENUES EXPENSES 12/31/2024 CHANGE Note 100 Genera l $30,172,780 $50,078,045 $46,788,245 $33,462,579 10.90% 110 Ameri ca n Res cue Pl a n Act $56,543 $0 $56,543 $0 -100.00% 1 130 GEMT $1,536,126 $1,806,250 $2,830,000 $512,376 -66.64% 2 200 Tra ns porta ti on $3,008,838 $23,320,737 $23,313,155 $3,016,420 0.25% 210 Motor Fuel Ta x $1,784,877 $1,765,000 $2,951,000 $598,877 -66.45% 3 223 SSA #3 (Heri ta ge Ri dge) $1,952 $1,000 $1,400 $1,552 -20.49% 4 224 SSA #4 (Knol l s ) $10,505 $5,500 $5,500 $10,505 0.00% 226 SSA #6 (Greek Row) $21,421 $12,000 $10,500 $22,921 7.00% 229 Ma rket Squa re SSA #29 $28,276 $50,000 $50,000 $28,276 0.00% 230 Hunter Ri dgebrook SSA #30 $70,779 $50,000 $50,000 $70,779 0.00% 234 SSA #14 (Hea rtl a nd Fi el ds ) $12,170 $2,000 $1,500 $12,670 4.11% 260 TIF Di s tri ct #1 $0 $0 $0 $0 0.00% 262 TIF Di s tri ct #3 $930,911 $577,000 $662,859 $845,053 -9.22% 280 CDBG $0 $454,770 $454,770 $0 0.00% 285 Hous i ng Reha b $70,734 $0 $25,000 $45,734 -35.34% 5 290 Forei gn Fi re Ins ura nce Ta x $67,635 $79,206 $79,000 $67,841 0.31% 300 Debt Servi ce $195,687 $1,998,497 $2,001,147 $193,037 -1.35% 400 Ca pi ta l Projects $648,993 $950,000 $1,136,300 $462,693 -28.71% 6 420 Ca pi ta l Equi pment Rep. $407,774 $1,045,240 $1,081,130 $371,884 -8.80% 600 Wa ter Opera ti ons $28,903,111 $6,313,938 $6,824,047 $28,393,002 -1.76% 610 Wa ter New Cons tructi on $1,016,595 $85,000 $600,000 $501,595 -50.66% 7 620 Wa ter Ca pi ta l $5,160,361 $3,238,114 $2,161,000 $6,237,475 20.87% 650 Ai rport $31,252,462 $2,436,862 $2,576,073 $31,113,251 -0.45% 680 Refus e & Recycl i ng -$61,298 $2,624,796 $2,562,095 $1,403 0.05% 700 Worker's Comp / Li a bi l i ty $1,145,502 $1,125,000 $1,375,000 $895,502 -21.82% 8 710 Hea l th Ins ura nce $793,392 $7,449,734 $7,441,234 $801,892 1.07% 830 Pol i ce Pens i on $43,810,103 $5,243,936 $4,817,417 $44,236,622 0.97% 850 Fi re Pens i on $38,204,793 $6,260,178 $4,974,250 $39,490,721 3.37% $189,251,022 $116,972,803 $114,829,165 $191,394,660 900 DeKa l b Li bra ry $19,566,431 $3,525,036 $3,525,036 $19,566,431 $208,817,453 $120,497,839 $118,354,201 $210,961,091 Fund Balance Changes Greater than 10%: • Note 1: In FY2024, the ARPA Fund will be drawn down and closed. • Note 2: The GEMT Fund absorbed several large fire engine replacements in 2023. The balance will grow even as the Fund supports the FY2024 Fire Station #4 architectural costs and staffing costs in future years (see Fund 130 projection). 17 | Page  • Note 3: The Motor Fuel Tax Fund carried a larger than average reserve in anticipation of two bridge projects that began in 2023. • Note 4: SSA #3 was created to cover maintenance costs related to four cul-de-sac islands within Heritage Ridge. Contractual services have increased resulting in a drawdown of the fund balance. • Note 5: The City received $17,333 from the federal Strong Communities Grant program to assist the rehabilitation or demolition of vacant homes. • Note 6: This balance was purposely drawn down in 2023 to support more aggressive annual street maintenance work. • Note 7: In FY2024, the balance is purposely drawn down to finance the purchase of a new emergency diesel generator with an estimated cost of $600,000 for the West Lincoln Highway Water Treatment Plant, to service both the water treatment plant and Well No. 10. • Note 8: The fund balance will be drawn down to achieve the $1.0 million fund balance target per the reserve policy. VI. CONCLUSION The preparation of the annual City Budget involves many authors. The City Manager is especially grateful to Susan Hauman, Director of Financial Services, for her detailed data collection, analysis, and projections. In this work, she was very faithfully assisted by Senior Accountant, Meagan Challand. Human Resource Director Michelle Anderson was particularly helpful in her guidance on personnel matters and cost projections for essential City benefits. Executive Assistant Ruth Scott was remarkable as always for her responsive and unselfish service. All City department heads and directors are commended for their numerical forecasting and narratives. As in any fiscal year, the overall City staff assistance has been indispensable. It is our shared hope that the 2024 City Budget will be a reliable guide to the City’s services in 2024. 18 | Page Section Two The Community We Serve 19 | Page This page has been intentionally left blank. 20 | Page The Community We Serve ______________________________________________________________________________ Overview The City of DeKalb is an urban community with a vital commercial and industrial base situated in a rural setting. It is located approximately 60 miles west of downtown Chicago. The City’s current land area is 16 square miles, all of which is located within DeKalb County. Neighboring communities include Sycamore, Malta, and Cortland. The City of DeKalb was incorporated in 1856 and since that time has continued to expand as new residents move farther west of the Chicago area to find quality a congestion-free community with a premium quality of life. The regional road system serving the City includes Annie Glidden Road, Peace Road, State Routes 23 & 38, and two full interchange connections with I-88. The DeKalb Taylor Municipal Airport accommodates private aircraft from one-seater planes to large corporate aircraft. 21 | Page DeKalb’s downtown is the heart of the community, playing host to numerous annual events and providing unique dining, shopping, entertainment, and residential alternatives. The community offers excellent City services, easy mobility around the town, and access to cultural, sports and educational activities. DeKalb is home to Northern Illinois University, which hosts 15,504 students as of Fall 2023 and employs 2,900 faculty and staff. NIU’s operations, capital projects and visitor spending generate over $400 million in local economic impact. The marriage of community and university provides DeKalb with a solid foundation as a regional hub with major retailing and employment opportunities. 22 | Page The DeKalb Community Unit School District No. 428 serves the City of DeKalb with seven elementary schools, two middle schools, and one high school. Kishwaukee Community College, the DeKalb Public Library (a discretely presented component unit), and the DeKalb Park District all serve the DeKalb community and provide expanding opportunities for its residents. Council-Manager Form of Government The City of DeKalb’s municipal government operates under the Council-Manager form of government that combines the strong political leadership of elected officials in the form of a council or board, with the strong managerial experience of an appointed local government manager. The Council-Manager form establishes a representative system where all policy is concentrated in the elected City Council and the Council hires a professionally trained manager to oversee the delivery of public services. Under the Council-Manager form of government, those duties not specifically reserved by the elected body pass to the City Manager and his or her professional staff. Home Rule Authority The City of DeKalb is a home rule unit by virtue of the provisions of the Constitution of the State of Illinois of 1970. Home rule status allows a community to take actions not specifically prohibited by the state statutes. Conversely, a non-home rule community can only undertake those actions 23 | Page specifically allowed for in the state statutes. Home Rule enables a municipality or county to establish its own system of self-governance without receiving a charter from the state and shifts much of the responsibility for local government from the state legislature to the local community. The most significant powers granted to a home rule community that pertain to finance are the ability to issue bonds without referendum, an exemption from property tax caps under the Property Tax Extension Law Limit (PTELL), and the ability to establish taxes and fees with local public approval and without state legislative action. Population DeKalb was incorporated in 1856 and designated a City in 1877. At the first decennial census after that designation, the population of DeKalb was 1,598 (1880). Since the beginning of the twentieth century, the City’s population has generally increased at each decennial census except in 1920 and 2020, as shown in the table below: Census Year Population Change % Change 1900 5,904 NA NA 1910 8,102 2,198 37.23% 1920 7,871 (231) -2.85% 1930 8,536 665 8.45% 1940 9,146 610 7.15% 1950 11,567 2,421 26.47% 1960 18,408 6,841 59.14% 1970 32,949 14,541 78.99% 1980 33,157 208 0.63% 1990 35,076 1,919 5.79% 2000 39,018 3,942 11.24% 2010 44,095 5,077 13.01% 2020 40,290 (3,805) -8.63% Demographics & Housing In addition to raw population counts, the U.S. Census Bureau typically publishes demographic and housing data as part of its “American Community Survey (ACS).” Based on ACS data and information shared by the DeKalb County Housing Authority, the following demographical information has been derived: DeKalb DeKalb County Population 40,290 100,420 Growth -8.63% -4.51% Population by Age Less than 10 Years 9.7% 12.1% 24 | Page  10-19 Years 15.3% 15.0% 20-34 Years 39.7% 28.6% 35-54 Years 17.5% 22.7% 55-64 Years 8.7% 10.4% 65 Years and Older 9.1% 11.2% 100% 100.0% Median Age 25 31 Educational Attainment High School Diploma or Higher 92.4% 92.4% Bachelor's Degree or Higher 38.9% 31.4% Household Incomes Median Household Income $45,020 $61,086 Housing Owner-Occupied Units 6,200 21,746 Renter Occupied Units 9,299 16,406 Median Value, Owner-Occupied $157,900 $173,100 Median Gross Rent $903 $924 Household Income by Age Under 25 years $19,864 $24,963 25-44 Years $44,083 $65,834 45-64 Years $83,468 $86,188 65 Years and over $46,625 $51,360 Rent Expense as Percentage of Income Less than 15% 11.7% 12.9% 15% to 25% 20.4% 24.3% 25% to 35% 20.0% 20.9% 35% or more 47.9% 41.9% 100.0% 100.0% Context for Affordability Median Household Income $44,222 $61,086 80% MHI* $35,378 $48,869 30% of 80%--Rent/Month** $884 $1,722 30% of 80% Home Purchase** $106,133 $146,606 Rate of Persons in Poverty 28.5% *Affordability in this context assumes a household earning 80% of the median household income can still rent or own without being cost-burdened in terms of non-housing demands on income (e.g., education, health, etc.). **What a household earning 80% of the median household income can afford using 30% of their income for housing costs. 25 | Page Race & Ethnicity DeKalb is a diverse, welcoming community. While 66% of the population identifies as White, 13% identify as Black or African American, 13% identify as Hispanic or Latino, and 5% identify as Asian. POPULATION BY RACE Identified by Two or more Asian 3% 5% Hispanic or Latino 13% African American 13% White 66% 26 | Page Economic Factors 1. Assessed Valuations and Property Tax Relief Property tax is the most stable source of general revenue for local taxing bodies. What is levied is typically applied and generally distributed, assuming property owners pay their obligations. Over the past decade, what DeKalb taxpayers have contributed to their local taxing bodies has, in the aggregate, exceeded what taxpayers in other northern Illinois cities have paid per $100 of EAV by a significant amount. In 2019, the City’s aggregate rate was $11.73467 per $100 EAV. In 2020 the aggregate rate was $11.49927 per $100 EAV. At that time, DeKalb’s aggregate property tax rate was 20% higher than that of the City’s nearest geographical competitors (e.g., Geneva, St. Charles, Batavia, North Aurora, South Elgin, and East Dundee) whose aggregate rates were on average about $9.00 per $100 EAV. The 2021 aggregate rate in DeKalb was reduced to $11.06394 per $100 EAV owing in large part to the termination of the City’s TIF #1 and recapture of those TIF gains, as well as a substantial increase in local equalized assessed valuation tied to the Ferrara industrial development on the Gurler Road corridor. In 2022 (for taxes payable in 2023), the aggregate rate declined from $11.06394 per $100 EAV to $10.10837 per $100 EAV. The table below shows the rising community wealth that has been achieved owing to the extraordinary EAV growth from Meta (DeKalb Data Center), Ferrara Candy Company, Wehrli Custom Fabrication, and Amazon. The commitment of Kraft-Heinz in the late spring of 2023 promises continuing growth along the Gurler Road corridor. Year Rate-Setting EAV: City City Levy City Rate 2014 464,966,381 4,270,540 1.0245 2015 468,077,742 5,094,730 1.1942 2016 503,861,829 5,565,384 1.2021 2017 529,629,464 6,004,594 1.2268 2018 547,947,687 6,017,140 1.1883 2019 585,726,839 6,269,649 1.1541 2020 610,333,062 6,522,507 1.06868 2021 694,171,673 6,845,317 0.98612 2022 794,561,930 7,119,130 0.89599 2023* 998,000,000 8,123,459 0.81397 *Estimated In late November 2022, DeKalb Mayor Cohen Barnes invited all local taxing bodies to join him in a summit consisting of the chief elected and administrative officers from each taxing body to jointly define targeted aggregate tax rates that would reduce the community’s aggregate rate to less than $9.00 per $100 EAV in 2-3 tax years. The first summit was convened on March 9, 2023, and a follow-on summit meeting was convened on August 17. At the August meeting, it was agreed that a third summit meeting would be convened once all the local taxing bodies had approved their annual levies, keeping in mind the possibility that four industrial companies 27 | Page (Meta, Ferrara, Wehrli and Amazon) will contribute an estimated $150 million in new EAV in 2023, not including the impact of the DeKalb Township equalization factor of 9.53% on all types of properties. Although only the DeKalb Library and Park District have EAVs similar to the City of DeKalb, since DeKalb’s 2023 EAV is tentatively pegged at $998,000,000 it is clear that all local taxing bodies will have an opportunity to levy more actual dollars and still assure a solid decline in their tax rate. The table below illustrates the trend in actual property tax dollars paid to the City alone by a household living in a home with a market value of approximately $300,000 in recent years: Base Twp New Final DeKalb DeKalb Year EAV Multiplier EAV Homestead EAV Rate Tax 2019 $97,906 1.0351 $101,343 -$6,000 $95,343 1.1549 $1,101.11 2020 $101,343 1.0409 $105,488 -$6,000 $99,488 1.06868 $1,063.21 2021 $105,488 1.0162 $107,197 -$6,000 $101,197 0.98612 $997.92 2022 $107,197 1.0662 $114,293 -$6,000 $108,293 0.89599 $970.30 Representatives at the recent Mayoral summit meetings were urged to pursue 2023 rates (impacting 2024 tax payments) to yield a sub-9% aggregate rate within three levy seasons. The following table illustrates that scenario: 2021 Rate 2022 Rate % Diff. 2023 2024 2025 Taxing Body Actual Actual -5.00% -4.00% -3.00% County (blended) 1.03149 0.96761 -6.19% 0.91923 0.88246 0.85599 Forest Preserve (blended) 0.07355 0.06915 -5.98% 0.06569 0.06306 0.06117 DeKalb Township 0.14864 0.14107 -5.09% 0.13402 0.12866 0.12480 DeKalb Road & Bridge 0.17298 0.17052 -1.42% 0.16199 0.15551 0.15085 City of DeKalb 0.00000 0.00000 0.00% 0.00000 0.00000 0.00000 DeKalb Pension Funds 0.98612 0.89599 -9.14% 0.85119 0.81714 0.79263 DeKalb Library 0.38546 0.37454 -2.83% 0.35581 0.34158 0.33133 DeKalb Park District (blended) 0.69631 0.67796 -2.64% 0.64406 0.61830 0.59975 School District 428 (blended) 6.80841 6.09342 -10.50% 5.78875 5.55720 5.39048 Kishwaukee College 0.64100 0.60874 -5.03% 0.57830 0.55517 0.53852 KWRD 0.11998 0.10937 -8.84% 0.10390 0.09975 0.09675 Aggregate Rate: 11.06394 10.10837 -8.64% 9.60295 9.21883 8.94227 2. State Pensions and the Annual City Property Tax Levy In approaching its annual levy, the City Council has had to contend with the downstate pension crisis as well as its annual operating needs in recent decades. The Downstate Fire and Police Pensions are part of a unique, closed amortization system. Under the Illinois Pension Code, the 28 | Page Illinois Department of Insurance annually defines actuarial required contributions, which include a “normal” cost (based on mortality tables, investment returns, beneficiary longevity, etc.) plus an amount sufficient to steadily bring the total assets of a pension fund up to 90% of the total actuarial liabilities of the fund by the end of the 2040 fiscal year, even though the fund will obviously be needed indefinitely into the future. As the arbitrary 90% funding date of 2040 approaches, the annual funding obligation increases independent of normal cost calculations. The downstate pension funding method is akin to paying the minimum amount of one’s credit card (i.e., an increasing interest cost plus the dollars one can afford). In this system, a municipality absorbing routine payroll increases resulting from cost-of-living adjustments or staffing increases is hard-pressed to keep pace with the ever-increasing annual dollar impact to reach the 90% threshold at the arbitrary due date. For DeKalb’s Police officers, the City will contribute a fixed dollar amount of $4,130,481 in 2024. This is based on the demographics of 65 active officers and an uneven investment performance over the past year. On a percentage of salary basis, the City’s contribution works out to 67% of the total wage and salary costs for active sworn officers (including Commanders who contribute to the Police Pension Fund). For DeKalb’s Firefighters, the City will contribute a fixed dollar amount of $5,343,974 in 2024. This is based on demographics of 58 active Firefighters and an uneven investment performance over the past year. On a percentage of salary basis, the City’s contribution equates to 94.4% of the total wage and salary costs of active firefighters (including Fire management who contribute to the Fire Pension Fund). The City’s contributions to the Fire Pension and Police Pension Funds continue to rise each year based on the results of the annual actuarial valuation. The chart below shows the recent experience: 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% 29 | Page  The total annual state Fire and Police pension obligation has exceeded the totality of the City’s annual property tax levy for decades. As depicted in the chart above, the total 2024 obligation is $9,474,455. 3. The City’s 2023 Levy The ultimate resolution of the downstate pension crisis is possibly three to five years away and will require the State Legislature’s shift to an “open amortization” model like that employed by the Illinois Municipal Retirement Fund (IMRF). In the near term, the City has been able to find some relief owing to the extraordinary EAV increases attending the continuing industrial development south of I-88. The evidence is found in the difference between the required pension contributions established each year by the City’s actuary and the actual City debt levies (the yellow-highlighted “shortfall” in the previous table, above). In FY2024, for the first time in many years, a smaller “shortfall” can be achieved. This is the singular result of being able to levy for a higher proportion of the entire City obligation ($8,123,459 or 85.7% in 2024 vs 80.6% in 2023) while reducing the City’s tax rate. Nevertheless, the fact is that every property tax dollar raised by the City government in 2023 (payable in 2024) will go toward the payment of unfunded Police and Fire pension obligations, and an additional $1,350,996 from other General Fund revenues (e.g., sales and use taxes) will be needed to meet the 2024 pension obligations. No City property tax revenues will be available for other general operating needs. The 2023 City levy is $8,123,458. The impact on a theoretical householder with a home carrying a present market value of approximately $375,000, including a DeKalb Township equalization factor (“multiplier”) of 1.0953, is illustrated in the table below: City of DeKalb Equalization Year Base EAV Factor New EAV Homestead Final EAV DeKalb Rate DeKalb Tax 2019 $97,906 1.0351 $101,343 -$6,000 $95,343 1.1549 $1,101.11 2020 $101,343 1.0409 $105,488 -$6,000 $99,488 1.06868 $1,063.21 2021 $105,488 1.0162 $107,197 -$6,000 $101,197 0.98612 $997.92 2022 $107,197 1.0662 $114,293 -$6,000 $108,293 0.89599 $970.30 2023 $114,293 1.0953 $125,185 -$6,000 $119,185 0.81397 $970.13 *The DeKalb tax rate is estimated. The final 2023 DeKalb EAV will not be published until early April 2024. 4. Employment The City’s principal employers have been stable, and due to new development are projected to increase over the next several years as the Meta data center campus develops and as Kraft Heinz and other properties within the ChicagoWest Business Center build out. The top employers are shown below: 30 | Page  2022 2023 EAV Rank % Total EAV EAV Rank % Total EAV Taxpayer Meta $46,300,586 1 5.83% Ferrara $31,491,805 2 3.96% 3M $29,327,165 3 3.69% $11,357,544 1 2.34% Target $12,992,995 4 1.64% $11,061,281 2 2.28% Oak Crest $8,012,388 5 1.01% $5,423,203 7 1.12% Goodyear $7,956,450 6 1.00% $6,847,508 4 1.41% Nestle $7,497,861 7 0.94% $6,622,065 5 1.36% Panduit $7,162,765 8 0.90% $7,321,367 3 1.51% University Village $6,029,180 9 0.76% Amazon $4,677,124 10 0.59% Total $161,448,319 20.32% $48,632,968 10.02% 31 | Page  Strategic Goals and Long-Range Planning The “DeKalb 2025 Strategic Plan,” adopted in February 2016, attempted to set direction for City policy, budgeting, and program development for a 10-year period. A mission statement was created to: Deliver high quality municipal services to those who live, work, learn in, or visit our community. Core values identified in the plan, which remain in place today, included: • Integrity: The state of being honest, fair, and ethical in every situation, even if it’s unpopular. • Professionalism: Serving with the highest level of respect, skill, and judgment in each situation. • Excellence: The expectation of engaging in outstanding levels of performance. • Service: Providing City services at the highest level for the advancement of the community. • Collaboration: Working together to benefit from the resources, knowledge, wisdom and understanding of others. • Accountability: Taking responsibility for our decisions and actions while doing everything possible to achieve the desired results. Since the plan’s inception, the Community has changed dramatically. An ever-changing fiscal climate, including the COVID-19 pandemic in 2020 and 2021 and the inflationary spiral owing to supply side deficiencies and slow central bank countermeasures in 2022 and 2023, has forced the City to change course in many areas since the planning even five years ago. Twice-annual joint meetings between the City Council and Finance Advisory Committee (FAC) have identified priorities for individual fiscal years. A longer-term financial planning process gave rise to the City’s Financial Plan for 2022-2024, in collaboration with the FAC. Additionally, dramatic industrial investment which has increased the City’s EAV by over $400 million since 2019 (from $585,726,839 in 2019 to an estimated $1,039,000,000 in 2023) prompted a Comprehensive Land- Use Plan Update in 2022 and additional textual changes to the City’s Unified Development Ordinance. The fruit of the City’s financial prudence and planning was a bond rating upgrade by Moody’s in September 2023 as the City issued general obligation bonds to fund the construction of a fourth fire station. The history behind the upgrade is instructive. In the 1990s, the City’s rating was Aa2. For a Police station building bond in 2012 the rating was Aa3. The rating then dropped to A1 in 2017 when Moody’s did a periodic rating review. In 2018 Moody’s gave the City a “negative outlook” which requires a rating review within about 2 years. In 2020, the City issued a public offering to “scoop” the entire 2020 G.O. Bond debt service in the face of the Covid crisis and 32 | Page spread it over 2028, 2029, and 2030. This involved a rating review and Moody’s downgraded the City from A1 to A2, primarily because the City was struggling with the state pension “ramp” without the reserves we now have, or the certain EAV increases that have since materialized. The rating upgrade assured better pricing for the Fire Station #4 bonds, but it also sent an important message to business prospects and state agencies: DeKalb is fiscally strong. General Fund Long-Range Financial Plan The City’s rising pension obligations and their drain on financial resources was a key item discussed in the City’s 2022-2024 Financial Plan. In order to maintain pace with increasing annual contributions, and maintain existing City services, several assumptions for future revenue and expenditures within the General Fund were made: Revenue Assumptions • Owing to DeKalb’s extraordinary EAV gains from recent industrial development, the City property tax levy can increase by 4.95% or more in tax years 2023 and 2024 while assuring a lower tax rate and lower actual tax dollars demanded of city taxpayers. • Sales and use taxes can grow at an average annual pace of about 2.75%, exclusive of known new developments. This category includes sales tax, home rule sales tax, local use tax, hotel/motel tax, and restaurant/bar tax. • Intergovernmental revenues would also grow at 2.75%, exclusive of short-term grant revenue such as ARPA and SAFER grants. Expenditure Assumptions • Cost of living increases for staff within the City’s union contracts and non-bargaining unit were projected to increase 2.5% annually, but the inflationary spiral of the past 18 months has pushed those increases higher. • Staffing levels of the Fire Department will increase to a minimum shift of 16 to meet the requirements of the IAFF Local 1236 collective bargaining agreement in 2024. A further increase in the minimum shift staffing level will be necessary in the period 2024-2027 to gradually staff the new Fire Station 4. An additional 9 firefighters will be hired in the fourth quarter of 2024 to provide minimum staffing for the new Station 4. • Staffing levels in the Police Department are expected to rise from an authorized level of 70 sworn officers by the end of 2023 to 73 sworn officers by the end of 2024. • Personnel costs are assumed to rise from 78.79% of the overall 2022 General Fund budget to 82.66% of the 2024 General Fund budget. • Non-personnel costs are expected to rise between 2.6%-2.7% per year. • Police and fire pension contributions will be funded at 100% of the actuary’s annual recommendation. 33 | Page  Water and Capital Funds Long-Range Financial Plans Beyond the General Fund, the City’s Water Fund (major fund) as well as capital-intensive funds (Capital Projects, Capital Equipment Replacement, and Motor Fuel Tax) were reviewed in 2023, giving rise to the following assumptions: Revenue Assumptions • The City will continue to increase water rates annually in accordance with the consumer price index, subject to City Council approval. • The City will continue to allocate 1/3 of any rate increase to the Water Operations Fund (600), and 2/3 to the Water Capital Fund (620). • An additional $600,000 per year of capital funding for the next 5 years will be needed to close the present funding shortfall, and an additional $215,000 per year will be needed for fleet replacement. The anticipated opening of 2 cannabis dispensaries by January 1, 2024, will aid in this effort by providing an estimated $200,000-$450,000 per dispensary, annually. • Grant opportunities will continue to be sought, including monies available under the Infrastructure Investment and Jobs Act (IIJA) of 2022. Expenditure Assumptions • Debt service on the City’s existing IEPA loans will continue at annual amounts of $60,370 through 2032 and then $41,845 through 2039. • Lead service lines have been a target of Water Department activity over the past 2 years, using funds provided through the American Recovery Plan Act. Approximately 160 known lead service lines remain, and the City will work with the Illinois Environmental Protection Agency to fund their replacement in the years ahead. • The City will continue to fund major water improvements at an average of about $2.0 million annually. In October 2023 the City Council authorized an engineering services contract in the amount of $154,800 for a comprehensive and strategic upgrading of the current Water Model and Master Plan. The plan will provide a roadmap that identifies needed improvements to the existing water system including well capacity, treatment capacity, and elevated storage to address expanding industrial demand in particular. • The City will continue to fund the City’s annual street maintenance program at an average of $2.5 million annually. The City recognizes that we operate in a fluid environment and must continually revisit and refine our financial plans. Another “condition index” of the City’s paved roads will be conducted in 2024 to strengthen the predictive basis of the capital models described in this section for future public policy considerations. 34 | Page Section Three Budget Overview 35 | Page This page has been intentionally left blank. 36 | Page DeKalb’s Budget Process and Calendar The budget process is a comprehensive mechanism for developing each year’s financial plan. This process includes input and feedback from the City Council, the Finance Advisory Committee, City staff, and members of the public. The Finance Advisory Committee (FAC) is one of 16 boards and committees of the City, which consists of seven members of the public and serves to provide the City Council with well-reasoned, financially sound recommendations and to work with the Council to analyze the City’s financial policies and, long-term financial stability, options for greater efficiencies and possible revenue and expenditure modifications. Additionally, the public has the opportunity to influence the City’s budget preparation in a variety of other ways including attendance at other committee meetings and listening sessions, attendance at Councilman ward meetings, public comments at City Council meetings and public hearings and direct communication with City staff. According to the Government Finance Officers Association, the key characteristics of the budget process are: • Incorporates a long-term perspective; • Establishes linkages to broad organizational goals; • Focuses budget decisions on results and outcomes; • Involves and promotes effective communication with stakeholders; and • Provides incentives to government management and employees. In DeKalb, these principles guide the process of budget development. Long range plans such as the City’s 2022 – 2024 Financial Plan are updated every few years with regular input and modification by City staff before final presentation to the Council and FAC. Consistent with the City’s Budget Policy, the preparation of the annual City budget begins after June 30, once the audit for the prior fiscal year is complete. In preparing this budget, as in recent years, priorities for the coming year are discussed at a joint meeting of the Council and FAC in August. Preliminary revenue estimates are presented to frame the discussion. Based on general fiscal direction from the Council and FAC, the City Manager and Director of Financial Services review major operational changes, personnel, and capital needs, and discuss operational challenges and requests with each of the City’s department heads. Current fiscal year projections and proposed budgets are prepared by each department and reviewed and refined over subsequent meetings between the City Manager, Finance, and department heads. Unjustified items or requests are removed from the budget during this process. Concurrently, other budget documents such as goals, objectives and accomplishments are updated by staff. Once revenue and expenditure estimates are finalized, an additional joint meeting between the City Council and FAC is held in mid-October to discuss and develop the property tax levy. The detailed draft budget is then presented for joint Council and FAC review in mid-November. If 37 | Page necessary, further revisions are made and the recommended budget is offered for comment at a public hearing with subsequent adoption by the Mayor and City Council in December. The City of DeKalb Budget is the culmination of strategic financial and operational planning. This document reflects sound decision-making and recommendations for the City’s future. The budget will be monitored, reviewed, and referenced throughout the year, and from time-to-time budget amendments may be adopted to remain flexible to the changing environment. Budget Calendar Date Responsible Party Action August 21, 2023 City Council, Finance Strategic Goal Setting and Budget Planning Advisory Committee & Staff Workshop August - October City Manager, Finance & Budget meetings held to review/determine Department Heads needs; departments enter their projections and proposed budgets; budgets are refined, and projections are updated October 16, 2023 Finance Advisory Committee Consideration of Property Tax Levy & Budget & Staff Planning Workshop #2 October 23, 2023 City Council Consideration of Property Tax Levy November 13, 2023 City Council & residents of Public Hearing on Property Tax Levy the City of DeKalb November 13, 2023 City Council Truth in Taxation Hearing on 2023 Property Tax Levy First Reading – 2023 Property Tax Levy First Reading – 2023 Abated Taxes November 15, 2023 Staff Public Release of FY2024 Proposed Budget November 20, 2023 City Council & Finance FY 2024 Proposed Budget Review Advisory Committee November 27, 2023 City Council Public Hearing on Proposed FY 2024 Budget Second Reading – 2023 Property Tax Levy Second Reading— 2023 Abated Taxes First Reading – FY2024 Budget December 11, 2023 City Council Second Reading – FY2024 Budget Last Tuesday in Staff Last Day to File FY2024 Annual Budget & December 2023 Property Tax Levy with the County January 1, 2024 Fiscal Year 2024 Begins Ongoing City Council & Staff Review budget vs. actual reports and recommend budget amendments as necessary 38 | Page DeKalb’s Fund Structure and Basis for Budgeting Fund Structure The accounts of the City are organized on the basis of funds, each of which is considered to be a separate accounting entity. The operations of each fund are portrayed as a separate set of self-balancing accounts that comprise its assets, liabilities, equities, revenues, and expenditures/expenses. The various funds are grouped by type in the financial statements. Within each fund type exists one or more funds. The City has 28 budgeted funds (excluding the Library) that consist of three types of funds: Governmental Funds, Proprietary Funds, and Fiduciary Funds. Governmental Funds are used to account for most of the City’s general activities using a current financial resources measurement focus and the modified accrual basis of accounting. Governmental funds are divided into four categories: • The General Fund (1) is the City’s primary operating fund. It is used to account for all financial resources of the government that are not required to be accounted for in another fund. • Special Revenue Funds (15) are used to account for the collection and disbursement of committed, restricted, or assigned monies. • Debt Service Funds (1) are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest, and related costs. • Capital Project Funds (2) are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed through proprietary funds or fiduciary funds) or the purchase of capital fleet and equipment. Proprietary Funds are utilized for those services for which the City charges customers a fee and use an economic resources measurement focus and the accrual basis of accounting. There are two types of proprietary funds: enterprise and internal service. • Enterprise Funds (5) are used to account for operations that are financed and operated in a manner like a private business enterprise. Enterprise fund services are primarily provided to customers external to the City organization and include the water utility division, refuse collection and the airport. The intent of the City in using this type of fund is to recover the costs (including depreciation) of providing goods or services on a continuing basis primarily through user charges. • Internal Service Funds (2) are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City on a cost-reimbursement basis. Internal service funds provide services and charge fees to customers within the City organization for health/dental insurance and for worker’s compensation and general liability insurance. Fiduciary Funds are used to account for assets held by the City on behalf of outside parties in a trustee capacity. • Pension Trust Funds (2) are used to account for assets that the City holds in a fiduciary capacity for the Firefighter’s Pension and Police Pension and are fiduciary component units of the City. Pension Trust Funds are accounted for in the same manner as Proprietary funds and use an economic resources measurement focus and the accrual basis of accounting. 39 | Page In addition to the funds, the City determines if any entities are component units of the City, which are legally separate organizations for which the elected officials of the primary government are financially accountable. Financial accountability is defined as 1) appointment of a voting majority of the component unit’s board and either the ability to impose will by the primary government or the possibility that the component unit will provide a financial benefit to or impose a financial burden on the primary government, or 2) fiscal dependency on the primary government. Based on these criteria, the DeKalb Public Library is included in the financial statements of the City as a discretely presented component unit. Basis for Budgeting For budgeting purposes within the Governmental Fund types, the City uses the same method as for accounting under Generally Accepted Accounting Principles (GAAP): the modified accrual basis of accounting. Under this method, revenues are recognized when they become measurable and available, and expenditures are recognized when the related liability has been incurred. The Proprietary and Fiduciary Fund types are budgeted utilizing the accrual basis of accounting, the same method used for accounting purposes: revenues are recorded when earned, and expenses are recorded when a liability is incurred. The following exceptions apply: • Capital purchases are recorded as an asset on a GAAP basis but budgeted as expenses; • Depreciation is recorded as an expense on a GAAP basis but not budgeted as expense; • Debt principal payments are recorded as reductions of liabilities on a GAAP basis but budgeted as expenses; and • The issuance of debt is recorded as an increase to liabilities on a GAAP basis but budgeted as revenue. 40 | Page  FUND STRUCTURE GOVERNMENTAL PROPRIETARY FIDUCIARY FUNDS FUNDS FUNDS GENERAL DEBT INTERNAL PENSION ENTERPRISE FUND* SERVICE SERVICE TRUST FUNDS (100) FUND (300) FUNDS FUNDS SPECIAL CAPITAL Water OperaƟons* Worker’s Comp/ REVENUE PROJECT (600) Police Pension Liability Insurance Water ConstrucƟon* (830) FUNDS FUNDS (610) (700) Fire Pension Health Insurance Water Capital* (620) (850) (710) Airport* (650) American Rescue Plan (110) Refuse & Recycling GEMT (130) (680) TransportaƟon* (200) Capital Projects Motor Fuel Tax (210) (400) SSA #3 (223) Capital Equipment SSA #4 (224) Replacement SSA #6 (226) (420) SSA #14 (234) SSA #29 (229)  Major Fund noted by asterisk (*) SSA #30 (230)  All funds noted above are budgeted and included in TIF #1 *(260) the Annual Comprehensive Financial Report TIF #3 (262) CDBG (280) Housing RehabilitaƟon (285) Foreign Fire Insurance (290) 41 | Page This page has been intentionally left blank. 42 | Page  CITY OF DEKALB MATRIX OF FUNDS AND DEPARTMENTS FUND DEPARTMENT DESCRIPTION Elected Municipal Human Information Community City Manager Finance Police Fire Public Works Transit Officials Band Resources Technology Development General Primary operating fund. Provision of transportation and planning Transportation services to the DeKalb metropolitan area. Use of the City's share of state gasoline Motor Fuel Tax taxes for City street maintenance and operations as required by law. Maintenance of various public areas: SSA #3 - Heritage Ridge street islands, detention basins, street lighting and entrance sign. Maintenance of various public areas: SSA #4 - Knolls Subdivision stylized street lighting and entrance. Provision of street lighting placed upon SSA #6 - Greek Row private property in the neighborhood. Repair, replacement, repaving, reconstruction, and maintenance of the SSA #29 - Market Square Area common area private streets and roadways, stormwater sewer and sanitary facilities serving the properties. Construction, installation and maintenance of public safety SSA #30 - Hunter Ridgebrook improvements, lighting, landscaping, snow and trash removal, building and land improvements. Maintenance of the common facilities, SSA #14 - Heartland Fields mosquito abatement and snow removal. Central Area Tax Increment Property tax increment and capital Financing #1 improvements in TIF #1. Central Business Tax Increment Property tax increment and capital Financing #3 improvements in TIF #3. Accounts for the funds received from HUD Community Development Block through CDBG used on eligible projects Grant within the City. Accounts for funds received from CDAP Housing Rehabilitation and acts as a pass-through for certain funds in the CDBG fund. Accounts for the funds received for the Foreign Fire Insurance Tax maintenance, benefit, and use of the Fire Department. Payments on long term debt principal and General Fund Debt Service interest. Accounts for the cost of major capital Capital Projects projects such as street maintenance and facility construction. Capital equipment replacement fund for Capital Equipment Replacement general City equipment and fleet replacement. Accounts for the provision of water Water services to customers within the City. Accounts for the expenses of new water Water Construction main construction related to impact fee revenue. Accounts for the capital portion of the Water Capital Water Fund related to maintenance of existing assets. Accounts for the provision of aviation Airport services to customers of the DeKalb Taylor Municipal Airport. Accounts for the provision of refuse Refuse & Recycling disposal and recycling services to customers of the City. Accounts for workers compensation costs Workers Compensation / and property & liability insurance Property & Liability Insurance premiums and charges to other funds/departments. Accounts for health insurance premiums for employees, retirees and the DeKalb Health Insurance Public Library and charges to other funds/departments/entities. Accounts for the accumulation of Police Pension resources to be used for the retirement payments to sworn police officers. Accounts for the accumulation of Fire Pension resources to be used for the retirement payments to firefighters. Accounts for the City's financial DeKalb Public Library responsibility to the DeKalb Public Library. Dark green shading indicates the department devotes substantial time to the fund's operations. 43 | Page This page has been intentionally left blank. 44 | Page Financial Policies The City has adopted several policies that help guide the budgeting process and financial operations of the City: 01-01 Budget Policy 01-02 Fund Balance Policy 01-03 Capital Equipment Replacement Fund Policy 01-04 Revenue and Expenditure Policy 01-05 Accounting, Auditing and Financial Reporting Policy 01-06 Capital Asset Policy 01-07 Debt Management Policy 01-08 Investment Policy The full text of each policy can be found in the Appendix. Budget Policy An annual budget must be submitted to the City Council that is within the City’s ability to pay. The annual budget should finance current operating expenditures, excluding major capital expenditures, with current revenues. A “balanced budget” must be adopted, i.e., a budget for which expenditures in a given fiscal year do not exceed the sum of 1) estimated revenues for the fiscal year, plus 2) the fund balance at the beginning of the fiscal year. All of the City’s funds in 2024 report a balanced budget. Budgetary controls are maintained to ensure compliance with legal provisions embodied in the annual appropriated budget. The budgetary level of control, the level at which expenditures cannot exceed the appropriated amount, is exercised at the fund level. Fund Balance Policy The fund balance policy defines the categories of fund balance as non-spendable, restricted, committed, assigned, and unassigned. Only the City Council can take action to commit fund balance to specific purposes; either the City Council or City Manager may assign fund balance for specific purposes. The fund balance policy also outlines the reserve balances ideally maintained in each fund type: the General Fund’s unassigned fund balance shall be maintained at 25% of annual expenditures; Special Revenue Funds should maintain fund balance to cover current expenditures and next year’s expenditures enough to avoid a cash deficit position; TIF Funds (a type of Special Revenue Fund) should maintain a balance to support the future planned capital improvements; and Capital Projects Funds should maintain a minimum dollar amount necessary to meet the planned improvements identified in the multi-year capital replacement schedule. Within enterprise funds, “net assets” is the terminology used in place of fund balance to describe the net financial resources. The Water Operating Fund should maintain unrestricted net assets equal to 25% of annual budgeted operating expenses; amounts above that will be transferred to the Water Capital Fund. The Airport Fund should maintain unrestricted net assets of 25% of annual budgeted operating expenses plus the budgeted capital improvements for the current fiscal year. 45 | Page The Health Insurance Fund should maintain unrestricted net assets of one month of premiums. The Worker’s Compensation Fund should maintain unrestricted net assets of $1.0 million. Except for the Airport Fund, all other funds comply with the fund balance policy for the 2024 budget. Capital Equipment Replacement Fund Policy The Capital Equipment Replacement Fund (CERF) was established to set aside funds for the annual replacement of existing vehicles and equipment and to avoid significant fluctuations in the operating budget year over year. Water tower rental income and a portion of home rule motor fuel tax (currently $.01 of the $0.095/gallon charged, or approximately 10.5%) is dedicated to funding the CERF. Transfers from the General Fund may also be used when revenues are insufficient. Equipment purchased out of this fund is limited to capital items with a cost greater than $10,000 and a useful life in excess of one year. When surplus capital equipment is sold, the proceeds shall be deposited into this fund. Revenue and Expenditure Policy The City shall strive to maintain a diversified and stable revenue base to reduce the impacts of fluctuations in any one revenue source. Property tax rates shall be kept as low as possible, and levies will be established in the following order of priority: Police and Fire Pension, IMRF Pension, FICA, general obligation bond principal and interest, General Fund operations, and additional personnel. User charges and tap-on fees shall be sufficient to finance all operations and debt of the Water Fund. If revenues fall below estimates, the City Manager may impose spending limits. The City shall consistently budget the minimum level of expenditures to provide for the public well-being and safety of residents and businesses of the community. Additionally, expenditures will be within the confines of generated revenue. Fund balance will not be used to pay for operating expenditures except in the case of emergencies and after careful consideration. Accounting, Auditing and Financial Reporting Policy Annually, an audit is conducted on the City’s financial statements by a qualified, independent public accounting firm and filed within six months of the fiscal year end. The City follows generally accepted accounting principles (GAAP) and prepares an Annual Comprehensive Financial Report (ACFR) which is submitted to the Government Finance Officer’s Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting Program. Monthly, the City prepares account reconciliations on significant accounts that are overseen by the Finance Director. Year-end adjustments must be prepared by the Finance Department staff within 90 days after year end are reviewed by the Finance Director. The Finance Director reviews the full audited financial statements and footnotes for accuracy and completeness. Capital Asset Policy “Capital expenditures” are items with a cost of $25,000 or more and a useful life of more than one year. These assets, including contributed assets, are capitalized, and depreciated in the City’s financial statements. Repair and maintenance costs are expensed. The City categorizes its capital assets into the following: land, building and building improvements, equipment, vehicles, infrastructure (streets, traffic signals), and water distribution system. 46 | Page Proprietary Fund capital assets such as the water system and airport improvements are capitalized directly in the related funds. General capital assets are reported in the City’s entity- wide financial statements. Assets purchased with federal funds typically have specific tracking requirements and are notated as such in the financial records. Physical inventories of all capital assets should be performed biennially. Debt Management Policy The City’s debt management policy provides a functional tool for debt management and capital planning. Long-term debt shall be issued only to fund capital improvements that cannot be financed with current revenues; it shall not be used to fund operations. The ultimate goals established by the City’s debt policy are as follows: • Maintain a minimum Aa3 (Moody’s) credit rating; • Avoid financial decisions that will negatively impact current or future credit ratings; • Maintain a General Fund balance of 25% of total annual expenditures; • Consider market timing; • Determine the optimal maturity schedule of the debt; • Consider the impact of debt issuance on overlapping governments; • Assess financial alternatives to debt issuance; • Minimize debt interest costs. In addition to these goals, the debt policy addresses the authority and purpose of the debt issuance, the terms by which short versus long term debt may be issued, when capital leases may be utilized, recognition of the Capital Improvement Program (CIP), structure of debt issues, credit enhancements, use of local institutions, legal constraints, and other limitation on the issuance of debt, credit implications and parameters for overall administration of the debt. Investment Policy The City’s policy is to invest public funds in a manner that will conform to state statute, maximize security, meet daily cash flow demands, and attempt to obtain a market rate of return. Investment earnings shall be maximized by consolidation unless prohibited by restricted funds. The primary objectives are safety of principal, liquidity, and yield. In addition, the policy addresses the standards of care to be observed, including prudence, ethics, and delegation of authority. Safekeeping and custody, authorized institutions, and internal controls over investing are delegated to the Finance Director. The policy also details the allowable investments and related collateralization requirements (110% of uninsured cash deposits), along with diversification, maximum maturities, monthly required reporting to the City Council and performance standards to be followed. 47 | Page  2024 Revenues by Category: All Funds Transfers In 4.13% Taxes Charges for Services 28.92% Taxes 34.13% Intergovernmental Licenses & Permits Other Income Fines and Forfeits Charges for Services Fines and Forfeits 0.45% Transfers In Intergovernmental Other Income 28.22% 3.07% Licenses & Permits 1.09% 2024 Expenditures by Category: All Funds Debt Service Transfers Out 2.60% 4.10% Capital/Equipment 17.28% Personnel 46.92% Personnel Commodities Contractual Services Capital/Equipment Debt Service Contractual Services Transfers Out 26.46% Commodities 2.64% 48 | Page Section Four General Fund Detail • General Fund Revenues • General Fund Expenditures • Legislative • City Administration  City Manager’s Office  Human Resources  Finance  Information Technology • Police Department • Fire Department • Public Works Department • Community Development Department • General Fund Support 49 | Page This page has been intentionally left blank. 50 | Page General Fund Revenues General Fund revenues are derived from numerous sources that can be placed into one of nine categories, as depicted in the chart below. The FY202 Budget includes $50,078,045 in General Fund revenues and transfers in. Fines GENERAL FUND REVENUE SUMMARY 1.0% Other Income Transfers 1.6% From… Charges for Property Tax Services 16.2% 8.7% Intergovernmental 20.1% Licenses & Sales & Use Permits Taxes 2.1% Gross Receipts 41.2% Taxes 6.9% Sales & Use Taxes $20,629,582 (41.19%) • State Sales Taxes. Sales and use taxes comprise the largest category of General Fund revenues. As the recent FY2022 Audit reported, Sales and Use tax revenues were significantly understated in the FY2022 Budget, which led to a corresponding rise in the City’s fund balance at the end of FY2022. The understatement was an outcome of an abundance of caution during the budget preparation in the fall of 2021. Overall General Fund revenue and other financing sources in FY2022 exceeded the amended budgeted amount by $2,939,912 (6.7%). Additionally, overall FY2022 General Fund expenditures and other financing uses came in under the amended FY2022 budget by $545,498 (or 1.3%). The net increase in fund balance was $5,691,610 after all year-end adjustments and transfers were made. 51 | Page  The Illinois Department of Revenue collects a 6.25% tax on the sale of general merchandise and distributes 1% to the municipality where the sale occurred and 0.25% to DeKalb County. FY2024 state sales tax revenue is expected to increase by $128,303 or 1.9% over projected year-end FY2023 revenue. STATE SALES TAX 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 • Home Rule Sales Tax. The City imposes a 1.75% Home Rule Sales tax on sales of general merchandise. The tax is not collected on the sale of food, drugs, or tangible personal property that is required to be licensed or registered with the State of Illinois. Home rule sales tax revenue is expected to increase by $136,679 or 1.6% over projected year-end FY2023 taxes. HOME RULE SALES TAX 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 • Restaurant & Bar Tax. The City collects a 2% tax on prepared food and beverages and packaged liquor sales. This tax is administered at the local level and had been steady at an annual rate of about $1.9 million in pre-pandemic years. The FY2021 and FY2022 totals rebounded after the deep COVID-related constraints in 2020. Based on an estimate of about $2.43 million in R&B taxes in FY 2023, the FY2024 projection is $2,594,350 (+$166,244 or +6.85% above the projected FY2023 year-end number). 52 | Page  RESTAURANT & BAR TAX 3,000,000 2,000,000 1,000,000 0 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 • Local Use Tax. Use taxes are imposed on the privilege of using, in the State of Illinois, any item of tangible personal property that is purchased anywhere at retail, including online purchases. This revenue source is collected by the State and forwarded to the City on a per capita basis. This tax revenue has been trending up as more consumers purchase their taxable goods through the internet. In FY 2024, the estimated revenue from this source is $1,715,543 (+$41,842 or 2.5% above the projected FY 2023 year-end number). LOCAL USE TAX 2,000,000 1,500,000 1,000,000 500,000 0 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 • Hotel/Motel Tax. The City imposes a 7.5% tax on the use of hotel/motel rooms in the City. The projected FY 2024 revenues are expected to exceed the FY 2023 year-end revenues in this category by $27,093 or 5%. HOTEL/MOTEL TAX 500,000 400,000 300,000 200,000 100,000 0 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 53 | Page Intergovernmental Revenues $10,076,256 (20.12%) • State Income Tax. The second largest category of General Fund revenue is intergovernmental revenues. About 67% of this revenue comes from the City’s per capita share of State Income Tax revenue. In FY2024, state income tax revenue is budgeted at $6,728,430, an increase of $282,030 (+4.4%) over the estimated FY 2023 year-end revenues. STATE INCOME TAX 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 • Grants. Another significant intergovernmental revenue source is grant revenue, constituting $2,120,112 in FY 2024. Much of the expected grant revenue comes from federal sources. At the end of FY 2024, the remaining ARPA [$1,019,023] and SAFER [$961,089] grant monies will be fully expended. GRANTS 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 - FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 • Other Intergovernmental revenues include Video Gaming Tax receipts, Personal Property Replacement (PPRT) Tax, Township Road and Bridge Tax, and Cannabis Use Tax. PPRT taxes are revenues collected by the State of Illinois and paid to local governments to replace money that was lost by local governments when their powers to impose personal property taxes on corporations, partnerships, trusts and other business entities were taken away in the 1970s. Such business entities pay a 2.5 percent tax on their net Illinois income. 54 | Page Property Taxes $8,123,459 (16.22%) This revenue is derived from a tax levy on real estate within the corporate limits of the City of DeKalb. The City of DeKalb is a home rule community and is not regulated by the Property Tax Extension Limitation Law (PTELL). For over a decade, the entirety of the City’s property taxes have been dedicated to the City’s state pension obligations, as defined annually by an independent actuary (see pp. 3-5, above). In FY2024, the City will increase its levy by $1,004,328 (+14%) but should deliver a property tax rate decrease of about 9.15% owing to about $170,000,000 in new construction in 2023, and an overall corporate EAV increase of $203,438,070. This extraordinary growth in the community’s property wealth is principally owing to the continuing investment of Meta in its DeKalb Data Center and a DeKalb Township equalization number of 9.53% in 2023. Year Rate-Setting EAV: City City Levy City Rate 2014 464,966,381 4,270,540 1.0245 2015 468,077,742 5,094,730 1.1942 2016 503,861,829 5,565,384 1.2021 2017 529,629,464 6,004,594 1.2268 2018 547,947,687 6,017,140 1.1883 2019 585,726,839 6,269,649 1.1541 2020 610,333,062 6,522,507 1.06868 2021 694,171,673 6,845,317 0.98612 2022 794,561,930 7,119,130 0.89599 2023* 998,000,000 8,123,459 0.81397 *Estimated The estimated impact of the City’s proposed levy of $8,123,458 on a theoretical householder with a home carrying a present market value of approximately $375,000, including a DeKalb Township multiplication factor (“multiplier”) of 1.0953, is illustrated in the table below: City of DeKalb Year Base EAV Equalization Factor New EAV Homestead Final EAV DeKalb Rate DeKalb Tax 2019 $97,906 1.0351 $101,343 -$6,000 $95,343 1.1549 $1,101.11 2020 $101,343 1.0409 $105,488 -$6,000 $99,488 1.06868 $1,063.21 2021 $105,488 1.0162 $107,197 -$6,000 $101,197 0.98612 $997.92 2022 $107,197 1.0662 $114,293 -$6,000 $108,293 0.89599 $970.30 2023 $114,293 1.0953 $125,185 -$6,000 $119,185 0.81397 $970.13 Gross Receipts Taxes $3,454,283 (4%) The largest revenue stream within this category is the Municipal Utility Tax, which will account for $2,636,400 (76%) in FY 2024. This tax is collected on electric and natural gas utility services in the City of DeKalb and modest increases should continue owing to larger users on DeKalb’s southside (notwithstanding 50% utility tax abatements for Ferrara and Meta). 55 | Page In recent years, both the telecommunications Tax and Franchise Tax revenues have been largely flat as a result of consumers abandoning land-line phones and also “cutting the cord” from traditional TV. GROSS RECEIPTS TAXES 4,000,000 3,000,000 2,000,000 1,000,000 - FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 Service Charges $4,376,905 (8.74%) Of the revenues included in this category, Fire Services and Ambulances Services account for most of the total. The City charges Northern Illinois University (per contract) and the DeKalb Fire Protection District for fire and emergency medical services to their residents. The City also charges users (or their insurance) for City-provided ambulance services. This revenue has increased significantly in recent years as an increasing number of local residents use the City’s paramedic services as their primary health care. Another component of this category is Police services. Beginning in FY 2022, Police services provided to the DeKalb Community Unit School District #428 and other agencies are reported in this category. The revenue includes utilization of the City’s Police force for private and school events, as well as the reimbursement for having designated DeKalb officers present in the schools. In the latter part of 2022, the number of School Resource Officers (SRO) increased to five. Licenses & Permits $1,060,866 (2.12%) This General Fund revenue category includes a number of locally-issued licenses and permits, including Building Permits, Fire Life-Safety Licenses (e.g. rooming houses, restaurants), Liquor Licenses, and Crime-Free Housing Registration. It is anticipated that Building Permit revenue ($502,860) will remain at an elevated level in FY 2024 as a result of ongoing development on the Gurler Road corridor. Other Income $801,387 (1.6%) This revenue category is comprised of various small revenue sources that include Investment Interest, the annual TIF Surplus, Refunds and Reimbursements, and other Miscellaneous Revenue. Refunds and Reimbursements account for $333,394 and include the annual contribution from the Emergency Telephone Systems Board (ETSB) to offset the cost of 56 | Page emergency 911 dispatching and the annual payment from the Illinois Department of Transportation (IDOT) for street maintenance. Fines $496,420 (1.0%) Fines issued by Police and Code Compliance personnel account for most of the revenue included in this category. Much of this revenue is derived from Court Fines, Parking Fines, and Administrative Tow Fees. Generally, five-year average was used in formulating the budget estimate for FY 2024. Transfers from Other Funds $1,058,887 (2.1%) Transfers from other City funds into the General Fund include transfers from Transportation and CDBG Funds to reimburse General Fund salary and benefit expenses related to staff administration of these programs; a Water Fund transfer for payment in lieu of taxes (PILOT); and a Refuse and Recycling Fund transfer to cover the administrative cost of managing monthly refuse billing. The transfers will vary on an annual basis, subject to underlying salary and benefit costs and time spent administering the grant programs, along with grant administrative cost limits, depreciable value of the water system and the City’s property tax rate; and the margin between refuse charges and expenses. In FY 2024, an additional $500,000 will be transferred into the General Fund from the GEMT Fund to offset the debt service on the new 2023 G.O. Bond underwriting the construction of a fourth fire station. 57 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED DESCRIPTION BUDGET ACTIVITY BUDGET Fund 100 - GENERAL FUND REVENUES PROPERTY TAXES 100-00-00-30140 PROPERTY TAX - FIRE PENSION 3,520,454 3,672,401 3,869,713 3,869,713 4,415,632 100-00-00-30150 PROPERTY TAX - POLICE PENSION 2,912,595 3,083,738 3,249,417 3,249,417 3,707,827 PROPERTY TAXES 6,433,049 6,756,139 7,119,130 7,119,130 8,123,459 SALES & USE TAXES 100-00-00-31100 STATE SALES TAX 6,205,962 6,626,891 6,017,000 6,752,802 6,881,105 100-00-00-31200 HOME RULE SALES TAX 7,675,584 8,592,479 7,282,000 8,729,959 8,869,638 100-00-00-31300 LOCAL USE TAX 1,634,277 1,632,879 1,570,000 1,673,701 1,715,543 100-00-00-31400 HOTEL/MOTEL TAX 418,384 449,385 398,077 541,853 568,946 100-00-00-31500 RESTAURANT & BAR TAX 2,156,649 2,333,899 2,200,000 2,428,106 2,594,350 SALES & USE TAXES 18,090,856 19,635,533 17,467,077 20,126,421 20,629,582 GROSS RECEIPTS TAXES 100-00-00-31700 MUNICIPAL UTILITY TAX 2,528,658 2,463,149 2,535,000 2,535,000 2,636,400 100-00-00-31750 TELECOMMUNICATIONS TAX 450,710 441,512 381,086 381,086 404,436 100-00-00-31900 FRANCHISE TAX 419,460 399,807 405,340 405,340 413,447 GROSS RECEIPTS TAXES 3,398,828 3,304,468 3,321,426 3,321,426 3,454,283 LICENSES & PERMITS 100-00-00-32200 LIQUOR LICENSES 277,644 310,506 256,406 256,406 256,406 100-00-00-32300 ROOMING HOUSE LICENSES 10,050 9,540 10,000 10,000 10,000 100-00-00-32350 FIRE LIFE SAFETY LICENSES 13,600 15,600 14,000 14,000 14,000 100-00-00-32400 AMUSEMENT LICENSES 4,025 4,275 4,000 4,000 4,350 100-00-00-32450 OTHER LICENSES 46,735 50,106 50,000 50,000 50,000 100-00-00-32500 BUILDING PERMITS 653,215 448,783 493,000 493,000 502,860 100-00-00-32900 OTHER PERMITS 52,270 35,635 30,000 30,000 30,250 100-00-00-34700 CRIME FREE REGISTRATION FEE 191,413 170,277 193,000 193,000 193,000 LICENSES & PERMITS 1,248,952 1,044,722 1,050,406 1,050,406 1,060,866 INTERGOVERNMENTAL REVENUES 100-00-00-33100 FEDERAL GRANTS 60,587 77,235 148,608 148,608 135,000 100-00-00-33110 FEDERAL GRANTS - ARPA 1,511,017 1,997,435 1,837,285 1,837,285 1,019,023 100-00-00-33120 FEDERAL GRANTS - SAFER 0 771,938 908,602 908,602 961,089 100-00-00-33150 FEDERAL PASS-THROUGH GRANTS 17,932 19,663 8,600 8,600 5,000 100-00-00-33200 STATE GRANTS 1,246 35,531 7,672 60,950 0 100-00-00-33300 LOCAL GRANTS 6,603 8,980 0 7,672 0 100-00-00-33400 FIRE GRANTS 0 15,866 0 3,996 0 100-00-00-33450 POLICE GRANTS 787 20,000 0 0 0 100-00-00-33500 STATE INCOME TAX 5,787,319 6,565,145 6,285,240 6,446,400 6,728,430 100-00-00-33600 PERSONAL PROPERTY REPLACEMENT TAX 290,821 559,267 417,764 435,000 426,119 100-00-00-33650 VIDEO GAMING TAX 376,490 391,196 380,000 380,000 389,500 100-00-00-33700 TOWNSHIP ROAD & BRIDGE TAX 157,080 166,231 172,093 172,093 176,395 100-00-00-33800 CANNABIS USE TAX 55,773 65,897 100,000 100,000 102,000 100-00-00-33900 OTHER SHARED REVENUES 165,365 131,898 133,700 133,700 133,700 INTERGOVERNMENTAL REVENUES 8,431,020 10,826,282 10,399,564 10,642,906 10,076,256 SERVICE CHARGES 100-00-00-34100 ADMINSTRATION FEES 145,716 169,004 158,460 158,460 161,625 100-00-00-34200 POLICE SERVICES 28,455 605,669 782,333 782,333 797,980 100-00-00-34250 FIRE SERVICES 1,026,811 1,109,418 1,081,481 1,081,481 1,092,300 100-00-00-34260 AMBULANCE SERVICES 2,705,735 1,926,575 2,200,000 2,200,000 2,244,000 100-00-00-34270 GEMT REVENUE 771,870 0 0 0 0 100-00-00-34500 FUEL SALES 19,910 30,807 26,000 26,000 26,000 100-00-00-34750 ZONING FEES 9,400 8,200 7,000 7,000 7,000 100-00-00-34760 PLAN REVIEW FEES 40,546 37,607 40,000 40,000 40,000 100-00-00-34780 INSPECTION FEES 2,000 24,505 8,000 8,000 8,000 SERVICE CHARGES 4,750,443 3,911,785 4,303,274 4,303,274 4,376,905 FINES 100-00-00-35100 COURT FINES 121,315 126,571 110,000 110,000 112,200 100-00-00-35200 DUI FINES 16,609 16,489 18,500 18,500 18,870 100-00-00-35250 ANTI-CRIME ACTIVITIES 1,763 174 1,000 1,000 1,000 100-00-00-35260 CRIME LAB 1,281 362 1,000 1,000 1,000 100-00-00-35300 PARKING FINES 99,140 82,360 145,000 145,000 147,900 100-00-00-35400 FALSE ALARM FINES 45,150 (45,950) 7,500 7,500 7,500 100-00-00-35500 MAIL-IN FINES 54,301 73,813 55,000 55,000 56,100 100-00-00-35600 ADMIN HEARING FINES 0 10,776 0 15,000 15,000 58 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED DESCRIPTION BUDGET ACTIVITY BUDGET 100-00-00-35700 ADMINISTRATIVE TOW FINES 109,471 174,948 130,000 130,000 132,600 100-00-00-35760 ANIMAL CONTROL FEES 0 220 0 1,750 1,750 100-00-00-35800 ABATEMENT FINES 2,621 5,730 2,500 2,500 2,500 100-00-00-35900 OTHER FINES 15,800 3,467 0 0 0 FINES 467,451 448,960 470,500 487,250 496,420 OTHER INCOME 100-00-00-31800 AUTO RENTAL TAX 21,374 26,769 21,387 21,387 21,815 100-00-00-35950 POLICE FORFEITURES 11,876 2,013 500 500 500 100-00-00-37100 INVESTMENT INTEREST 14,549 304,166 102,600 570,319 400,000 100-00-00-37500 GAIN/LOSS ON INVESTMENTS 3,125 (94) 0 0 0 100-00-00-38100 MISCELLANEOUS REVENUE 27,036 37,677 20,000 20,000 20,000 100-00-00-38200 REFUNDS / REIMBURSEMENTS 519,412 153,297 330,093 330,093 333,394 100-00-00-38350 50/50 TREE PLANTING 0 0 0 7,500 9,000 100-00-00-38600 SALES OF SURPLUS PROPERTY 23,436 1,063 2,500 2,500 2,500 100-00-00-38700 LEASE ISSUANCE 0 30,208 0 0 0 100-00-00-38850 TIF PROPERTY TAX SURPLUS 284,815 13,561 13,900 13,900 14,178 OTHER INCOME 905,623 568,660 490,980 966,199 801,387 TRANSFERS IN 100-00-00-39130 TRANSFER FROM GEMT 0 0 0 0 500,000 100-00-00-39200 TRANSFER FROM TRANSPORTATION FUND 25,972 39,295 51,150 51,150 52,490 100-00-00-39223 TRANSFER FROM SSA #3 FUND 500 300 500 500 500 100-00-00-39224 TRANSFER FROM SSA #4 FUND 500 500 500 500 500 100-00-00-39226 TRANSFER FROM SSA #6 FUND 500 500 500 500 500 100-00-00-39230 TRANSFER FROM SSA #30 FUND 97,500 0 0 0 0 100-00-00-39234 TRANSFER FROM SSA #14 FUND 500 0 500 500 500 100-00-00-39280 TRANSFER FROM CDBG FUND 89,636 91,386 77,297 77,297 77,297 100-00-00-39600 TRANSFER FROM WATER FUND 311,000 311,000 279,500 279,500 279,500 100-00-00-39680 TRANSFER FROM REFUSE FUND 212,000 140,000 144,000 144,000 147,600 TRANSFERS IN 738,108 582,981 553,947 553,947 1,058,887 PROJECTED REVENUES - GENERAL FUND 100 44,464,330 47,079,530 45,176,304 48,570,959 50,078,045 59 | Page This page has been intentionally left blank. 60 | Page General Fund Expenditures General Fund expenditures are broken down into six categories, each containing numerous individual account lines. General Fund Expenditure Summary by Department 2023 2024 % $ Department Budget Budget Change Change Legislative - Elected Officials $ 86,075 $ 86,085 0.01% $ 10 Legislative - Municipal Band 41,088 41,088 0.00% - City Manager's Office 776,932 777,904 0.13% 972 Human Resources 396,362 422,887 6.69% 26,525 Finance 491,335 464,684 -5.42% (26,651) Information Technology 1,008,510 1,060,328 5.14% 51,818 Police 16,309,148 17,780,756 9.02% 1,471,608 Fire 13,805,103 14,518,221 5.17% 713,118 Public Works 3,343,661 3,607,271 7.88% 263,610 Community Development - Administration 697,090 755,474 8.38% 58,384 Community Development - Building & Code 604,461 615,725 1.86% 11,264 General Fund Support 6,229,805 6,657,822 6.87% 428,017 Total $ 43,789,570 $ 46,788,245 6.85% $ 2,998,675 61 | Page The FY2024 budget includes $46,778,245 in General Fund expenditures, which is about $2.99 million (6.85%) higher than the FY 2023 budget. Personnel In FY2024 personnel costs will account for 82.66% of total General Fund expenditures, or $38,387,026. This expenditure category includes salaries and wages, overtime, employer pension contributions, employer health insurance and other benefit costs. • Employee Wages: In 2024, an additional 14 full-time positions are being added, primarily in public safety. Nine new firefighter/paramedics will be hired in the fourth quarter to staff a fourth fire station. Four new police officers will be hired to bring the total number of sworn officers to 73 from the authorized level of 70 sworn officers in 2023 (67 Patrol Officers and Sergeants; 6 Command Staff). • Fire and Police Pensions: The rising costs associated with public safety pensions continue to impact the General Fund. In FY 2024, the actuarially determined City contribution for the Fire and Police Pension Funds is $9,474,455, which is an increase of $640,058 from FY 2023 (7.25%). The 2023 City levy (collected in 2024) will only cover $8,123,459 of this fiduciary obligation, requiring another $1.350,996 in General Fund revenues to cover the shortfall. • IMRF Pensions: The City’s General Fund contribution rate to IMRF decreased slightly from 8.71% of salary to 8.55% of salary in 2023. This will result in an FY 2024 estimated employer contribution of $457,774 versus the employer contribution of $443,147 in 2023. Strong investment performance by IMRF since the spring of 2023, as well as a shift to more Tier 2 than Tier 1 employees (with lesser benefits), contributed to the lower rate. PERSONNEL 40,000,000 37,500,000 35,000,000 32,500,000 30,000,000 27,500,000 25,000,000 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 Commodities Items purchased for use by the City are categorized as Commodities. The FY 2024 Budget for this category is $1,126,510 or 2.4% of the General Fund expenditure budget. The increase of $136,629 (13.23%) from the estimated year-end FY 2023 budget is an unfortunate side effect of record-high inflation over the past 18 months. The three largest expenditures in this category are: • Supplies/Parts – Vehicles ($206,375): As previously noted, the cost to maintain our aging fleet is significant. These purchases typically represent the material costs for the City mechanics to repair and maintain fleet vehicles. Staff labor time is not accounted for in this line item. 62 | Page  • Fuel, Oil, & Lubricants ($356,950): The Public Works staff have managed to reduce overall fuel consumption in recent years; however, the City has borne the additional cost of higher fuel prices from which the City is not exempt. • Patrol Supplies & Equipment ($97,925): As the authorized level of sworn officers increase to 73, the cost of additional handguns, rifles, body worn cameras and portable radios will slightly increase in kind. Ammunition cost increases, gas masks and additional K-9 supplies are among the other items in this category. Contractual Services Services provided to the City by others are classified as Contractual Services and represent $4,411,253 in FY2024, an decrease of $366,568 (9%) from projected FY 2023 year-end numbers. This category includes expenditures for the maintenance of buildings, equipment, software, and vehicles; engineering services; legal services; training and travel; and utilities. Also included in this category is $1,368,810 in payments to other government agencies through tax sharing agreements. Notable FY 2024 expenditures in Contractual Services include: • Contracted Services ($407,565): This category of expenditures will increase by $84,642 (26%) over the projected FY 2023 year-end total. The City’s Police Department partners with Northwestern Medicine to provide outsourced social workers to assist with the aftermath of crimes and crime prevention. Within the Fire Department, ambulance service billing is provided by Andres Medical Billing at a cost of about $65,000 annually. Within Public Works, these funds cover City-wide janitorial services, and within Building & Code Enforcement the funds cover outsourced sprinkler plan reviews and larger project plan reviews. • Maintenance – Software ($436,130): Funding will increase in this category by $38,285 (9.6%). City- wide software costs are centralized in the Information Technology department and include such items as police CAD/records maintenance, Office 365 maintenance, and the maintenance of the City-wide BS & A financial suite. • Training/Travel ($216,515): No change is expected in this line item. Much of the training budget is a result of new hires attending the fire and police academies, telecommunicator training, and a variety of other required public safety training. 63 | Page  • Maintenance – Equipment ($316,517): Because the City lacked the capital needed to properly address fleet replacement over the past decade, costs associated with vehicle maintenance have increased. The increase in FY2024 is expected to be $94,748 (42.7%) and will include the maintenance of Police body-cam cameras. • Human Services ($225,000): This category will increase by $25,000 in FY2024 to support both established and start-up 501 c3 agencies serving the community. • Developmental Services ($140,000): This line item supports the DeKalb Chamber ($35,000), DeKalb County Economic Development Corporation ($35,000), and the DeKalb County Convention & Visitors Bureau ($50,000). CONTRACTUAL SERVICES 5,000,000 4,000,000 3,000,000 2,000,000 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 Capital/Equipment In FY 2024, the City has budgeted $193,550 for minor equipment within the General Fund budget. Items in this category include capital items with a value of more than $5,000 but less than $10,000. Items with a value in excess of $10,000 are budgeted in the Capital Equipment Replacement Fund (Fund 420). Transfers Out Transfers of funds from the General Fund to other City funds are represented in this category. Transfers Out in FY 2024 consist of a transfer to the Debt Service Fund to make the annual principal and interest payments on the City’s bond issues, as well as a $200,000 transfer to the Capital Equipment Replacement Fund. 64 | Page  TRANSFERS OUT 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 - FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 Debt Service The majority of the City’s debt payments are paid from the Debt Service Fund, as noted above. However, the City also pays the principal and interest payments on the GO Bonds Series 2013A which was issued on behalf of the Library to fund the Library’s expansion project, and also the debt service on the GO Refunding Bond Series 2022 issued to refund those bonds in 2022. The amount of principal and interest paid on these bonds is accounted for in this category. DEBT SERVICE (LIBRARY BONDS) 500,000 400,000 300,000 200,000 100,000 - FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 65 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED DESCRIPTION BUDGET ACTIVITY BUDGET Fund 100 - GENERAL FUND EXPENDITURES PERSONNEL 41100 WAGES - FULL-TIME 14,708,122 15,970,032 17,854,296 17,812,310 19,228,343 41200 WAGES - PART-TIME 418,502 369,949 407,392 372,226 359,033 41300 WAGES - OVERTIME 2,067,563 1,749,490 1,500,400 1,565,266 1,610,400 41400 LONGEVITY PAY 108,366 100,915 113,880 107,627 102,360 41500 CLOTHING ALLOWANCE 99,305 107,947 129,222 130,022 131,092 41550 CAR ALLOWANCE 2,925 2,925 2,925 2,925 2,925 41600 WELLNESS BONUS 139,467 96,534 280,000 280,000 240,000 41650 EDUCATION BONUS 4,875 5,500 5,000 5,000 5,000 41700 DEFERRED COMPENSATION 0 0 208,864 208,864 208,800 41800 HSA CONTRIBUTIONS 0 0 90,137 90,137 90,137 42100 EMPLOYER PORTION FICA 480,983 515,068 625,697 625,697 660,965 42200 EMPLOYER PORTION IMRF 584,351 526,955 460,694 443,147 457,774 42300 EMPLOYER CONTRIB/PENSION 7,897,111 8,123,459 8,834,396 8,834,396 9,474,455 42500 RETIREE HEALTH INSURANCE 4,407,325 4,588,857 4,532,225 4,532,225 4,583,526 42600 WORKER'S COMPENSATION/LIABILITY INSURAN 662,345 451,064 974,355 974,355 1,232,216 PERSONNEL 31,581,240 32,608,695 36,019,483 35,984,197 38,387,026 COMMODITIES 51000 BOARDS & COMMISSIONS 3,410 525 800 800 800 51300 SUPPLIES/PARTS-BUILDINGS 46,066 35,106 32,525 50,289 36,050 51410 SUPPLIES/PARTS-STREETS 0 10,998 12,000 20,000 25,000 51430 SUPPLIES/PARTS-STORM SEWERS 10,132 23,475 25,000 20,000 25,000 51500 SUPPLIES/PARTS-EQUIPMENT 3,605 6,615 10,500 5,500 5,500 51600 SUPPLIES/PARTS-TECHNOLOGY 27,790 21,530 25,000 25,000 25,000 51700 SUPPLIES/PARTS-VEHICLES 128,982 168,196 191,125 190,975 206,375 51997 STREETLIGHTS, PARTS 24,269 14,026 20,000 19,000 20,000 51998 TRAFFIC & STREET SIGNS 0 302 500 500 750 52000 OFFICE SUPPLIES 14,611 19,320 21,250 19,656 21,800 52500 JANITORIAL SUPPLIES 12,741 16,936 17,360 18,085 19,150 52600 PATROL SUPPLIES & EQUIPMENT 56,863 99,703 94,800 94,850 97,925 52700 INVESTIGATION SUPPLIES & EQUIPMENT 11,614 12,377 14,375 16,650 37,525 52800 FIREFIGHTING SUPPLIES & EQUIPMENT 14,210 52,684 60,000 56,004 60,000 52900 AMBULANCE SUPPLIES & EQUIPMENT 45,077 43,438 45,000 32,402 45,000 53099 ACTIVITIES & SUPPLIES 850 988 1,100 1,523 1,600 53100 ICE/SNOW CONTROL SUPPLIES 705 1,553 3,000 3,000 3,710 53300 SMALL TOOLS & EQUIPMENT 13,110 13,150 12,900 12,479 60,150 54000 UNIFORMS/PROTECTIVE CLOTHING 63,507 57,449 44,850 55,858 56,375 55000 FUEL, OIL, & LUBRICANTS 247,460 347,406 353,534 331,185 356,950 58110 DUI FINES EXPENDITURES 810 1,265 6,600 6,600 6,600 58120 ANTI-CRIME EXPENDITURES 1,198 3,709 8,525 8,525 8,575 58130 CRIME LAB EXPENDITURES 0 1,846 1,125 1,250 1,400 58140 POLICE FORFEITURES EXPENDITURE 1,801 9,114 100 0 100 59999 COMMODITIES 2,879 3,154 3,750 4,750 5,175 COMMODITIES 731,690 964,865 1,005,719 994,881 1,126,510 CONTRACTUAL SERVICES 61100 MAINTENANCE-GROUNDS 11,998 10,218 29,200 23,800 29,000 61300 MAINTENANCE-BUILDINGS 88,956 64,722 102,236 107,095 107,850 61400 MAINTENANCE-INFRASTRUCTURE 21,876 17,308 30,000 9,000 30,000 61420 MAINTENANCE-STREETS 0 13,725 11,500 11,500 13,000 61430 MAINTENANCE-STORM SEWERS 0 422 20,000 12,500 20,000 61450 MAINTENANCE-SIDEWALKS (50/50) 0 0 15,000 5,000 12,500 61500 MAINTENANCE-EQUIPMENT 129,343 112,665 201,880 221,769 316,517 61599 WARNING SIRENS 6,960 0 7,500 7,440 7,800 61700 MAINTENANCE-VEHICLES 194,639 188,938 182,325 169,275 124,775 61800 MAINTENANCE-SOFTWARE 298,060 285,629 397,845 397,845 436,130 62099 PRINTED MATERIALS 27,457 27,831 30,000 29,709 31,150 62100 FINANCIAL SERVICES 37,114 40,873 43,824 43,574 44,926 62200 LEGAL SERVICES 176,173 171,780 159,000 159,000 159,000 62300 ARCHITECT/ENGINEERING SERVICES 1,000 0 0 0 0 62400 TECHNOLOGY SERVICES 17,820 19,610 19,820 19,820 19,820 62600 MEDICAL SERVICES 31,222 36,383 45,950 49,620 60,500 62700 HUMAN & SOCIAL SERVICES 150,000 200,000 200,000 200,000 225,000 62800 UNEMPLOYMENT INSURANCE SERVICES 6,961 6,380 10,000 10,000 10,000 62900 PERSONNEL RECRUITMENT SERVICES 50,978 40,972 75,000 75,000 85,680 63000 SPECIAL EVENT SERVICES 1,371 1,027 3,850 3,850 6,000 63100 FORESTRY SERVICES 113,227 139,339 100,000 100,000 135,000 66 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED DESCRIPTION BUDGET ACTIVITY BUDGET 63150 50/50 TREE PLANTING 0 0 7,500 7,500 10,000 63300 NUISANCE ABATEMENT SERVICES (1,135) 4,929 9,000 7,000 10,000 63400 SNOW REMOVAL SERVICES 76,388 27,338 0 0 0 63500 TOWING SERVICES 1,270 2,386 2,800 4,080 4,760 63600 WEATHER SERVICES 3,456 3,660 3,800 3,800 3,800 63700 DEVELOPMENTAL SERVICES 105,000 105,000 140,000 140,000 140,000 63750 DEMOLITION SERVICES 0 0 50,000 50,000 70,000 63800 CONTRACTED SERVICES 357,787 266,228 419,140 322,923 407,565 64000 UTILITIES 17,548 19,417 20,703 14,936 17,700 64100 ELECTRIC SERVICES 28,294 26,002 50,000 45,000 50,000 64500 TELEPHONE SERVICES 95,699 91,451 101,031 97,672 107,031 65100 FREIGHT & POSTAGE 21,381 14,408 21,775 25,438 24,725 65200 MARKETING ADS & PUBLIC INFO 1,779 2,746 2,600 1,150 4,150 65300 LEGAL EXPENSES & NOTICES 22,311 18,480 6,561 5,986 6,925 65400 TAXES, LICENSES, & FEES 13,304 1,409 12,089 5,500 10,500 65500 RENTAL-BLDG & EQUIP 1,138 11,092 1,500 750 2,000 66100 DUES & SUBSCRIPTIONS 24,573 26,456 30,119 31,180 36,624 66200 TRAINING/TRAVEL 128,187 131,338 209,100 216,502 216,515 66300 TRAVEL EXPENSES 0 0 500 500 500 66400 EDUCATION TUITION REIMBURSEMENT 0 100 0 0 0 68750 TAX SHARING AGREEMENTS 1,639,010 1,298,835 1,368,971 1,368,971 1,368,810 69199 PRIV PROP REHAB / REDEVELOP 0 1,000,000 0 0 0 69200 SURETY BONDS 62,150 67,317 0 0 0 69700 SPECIAL PROJECTS 26,179 18,222 40,000 40,000 45,000 CONTRACTUAL SERVICES 3,989,474 4,514,636 4,182,119 4,044,685 4,411,253 DEBT SERVICES 75000 DEBT SERVICE - PRINCIPAL 0 375,000 375,000 375,000 360,000 76000 DEBT SERVICE - INTEREST 0 114,138 94,599 94,599 111,409 79000 CAPITAL LEASE PRINCIPAL 0 27,209 0 0 0 79100 CAPITAL LEASE INTEREST 0 407 0 0 0 DEBT SERVICES 516,754 469,599 469,599 471,409 EQUIPMENT 86000 EQUIPMENT (LEASED) 3,699 86,115 93,500 93,154 115,000 86100 TECHNOLOGY EQUIPMENT 16,527 14,228 18,000 18,000 18,000 86200 OFFICE FURNITURE & EQUIPMENT 944 1,755 24,150 23,300 28,550 86300 TELEPHONE & RADIO EQUIPMENT 385 600 27,000 25,000 32,000 EQUIPMENT 21,555 102,698 162,650 159,454 193,550 TRANSFERS OUT 91130 TRANSFER TO GEMT FUND 0 800,000 0 0 0 91300 TRANSFER TO DEBT SERVICE FUND 0 1,880,280 1,750,000 1,862,841 1,998,497 91400 TRANSFER TO CAPITAL PROJECTS FUND 22,500 0 0 0 0 91420 TRANSFER TO CAPITAL EQUIPMENT FUND 25,000 0 200,000 200,000 200,000 91900 TRANSFER TO LIBRARY FUND 490,625 0 0 0 0 TRANSFERS OUT 538,125 2,680,280 1,950,000 2,062,841 2,198,497 PROJECTED EXPENDITURES - GENERAL FUND 100 36,862,084 41,387,928 43,789,570 43,715,657 46,788,245 67 | Page This page has been intentionally left blank. 68 | Page  CITY OF DEKALB ORGANIZATIONAL CHART MAYOR CITY CITY COUNCIL CLERK CITY CITY ATTORNEY MANAGER EXECUTIVE ASSISTANT POLICE FIRE CITY MANAGERS PUBLIC COMMUNITY DEPARTMENT DEPARTMENT OFFICE WORKS DEVELOPMENT CRIME‐FREE PLANNING ADMINISTRATION ADMINISTRATION UTILITIES STREET BUREAU & ZONING DIVISION DIVISION COMMUNITY OPERATIONS HUMAN SUPPORT SERVICES FACILITIES BUILDING RESOURCES TRANSIT DIVISION & CODE PATROL TRAINING INFORMATION TECHNOLOGY ENGINEERING AIRPORT COMMUNITY SERVICES INVESTIGATIONS FINANCE 69 | Page This page has been intentionally left blank. 70 | Page Legislative _____________________________________________________________________________ Department Introduction The Legislative Department encompasses all activities of the City Council, which is the primary policy-making body of the City. The City Council is elected for staggered four-year terms and is comprised of the Mayor, who is elected at-large, and seven Aldermen, who are elected by wards. The City Council conducts regular meetings and Committee of the Whole meetings on the second and fourth Mondays of each month at the DeKalb Public Library. The proceedings of all City Council meetings are recorded and archived by the Executive Assistant. Among the routine duties assumed by the Executive Assistant are the keeping of the voting record at City Council meetings, the preparation of minutes of City Council meetings, attesting the Mayor's signature, and applying the City Seal to ordinances, resolutions, and agreements. All elected officials of the City are considered part-time and are compensated annually in an amount established by the DeKalb Municipal Code. The compensation of our Mayor and Council members for FY 2024 is shown below: • Mayor $22,500 • Council Member $5,400 The Legislative Department also includes funding for the DeKalb Municipal Band. The Band started in 1854 as the “DeKalb Silver Cornet Band” and it has existed continuously since that date making it the longest continuously serving municipal band in the State of Illinois. Dedication of the Veteran’s Memorial 71 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET LEGISLATIVE - ELECTED OFFICALS PERSONNEL 41200 WAGES - PART-TIME 64,886 64,886 68,300 68,300 68,300 42100 EMPLOYER PORTION FICA 4,965 4,965 5,225 5,225 5,225 PERSONNEL 69,851 69,851 73,525 73,525 73,525 COMMODITIES 52000 OFFICE SUPPLIES 946 509 1,000 1,000 1,000 53099 ACTIVITIES & SUPPLIES 29 COMMODITIES 975 509 1,000 1,000 1,000 CONTRACTUAL SERVICES 62099 PRINTED MATERIALS 184 78 64500 TELEPHONE SERVICES 9 65300 LEGAL EXPENSES & NOTICES 4,144 2,071 1,250 1,250 1,250 66100 DUES & SUBSCRIPTIONS 2,916 3,366 3,565 3,565 3,575 66200 TRAINING/TRAVEL 4,607 2,888 6,235 6,235 6,235 66300 TRAVEL EXPENSES 500 500 500 CONTRACTUAL SERVICES 11,860 8,403 11,550 11,550 11,560 LEGISLATIVE - ELECTED OFFICALS 82,686 78,763 86,075 86,075 86,085 72 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET LEGISLATIVE - MUNICIPAL BAND CONTRACTUAL SERVICES 63800 CONTRACTED SERVICES 41,088 41,088 41,088 41,088 41,088 CONTRACTUAL SERVICES 41,088 41,088 41,088 41,088 41,088 LEGISLATIVE - MUNICIPAL BAND 41,088 41,088 41,088 41,088 41,088 73 | Page This page has been intentionally left blank. 74 | Page  CITY ADMINISTRATION ORGANIZATIONAL CITY MANAGER DIRECTOR OF EXECUTIVE CRIME‐FREE BUREAU ASSISTANT ADMINISTRATIVE ASSISTANT INFORMATION HUMAN RESOURCES FINANCE TECHNOLOGY MANAGEMENT HUMAN RESOURCES DIRECTOR OF IT DIRECTOR ANALYST DIRECTOR FINANCIAL SERVICES RECRUITMENT SENIOR IT TECHNICIAN ACCOUNTANT MANAGER ACCOUNTANT HR COORDINATOR GIS MANAGER ACCOUNT TECH III ACCOUNT TECH I MULTIMEDIA INTERN (PT) ACCOUNT TECH I TECHNICIAN (PT) 75 | Page This page has been intentionally left blank. 76 | Page CITY MANAGER’S OFFICE ORGANIZATIONAL CHART CITY MANAGER EXECUTIVE DIRECTOR OF CRIME‐FREE ASSISTANT ADMINISTRATIVE ASSISTANT MANAGEMENT ANALYST 77 | Page This page has been intentionally left blank. 78 | Page City Manager’s Office _____________________________________________________________________________ Department Introduction The City of DeKalb has operated under the Council-Manager form of government since 1961. Within this system of local government, the City Manager is the chief operating and administrative officer. All policymaking is performed by the elected Mayor and City Council (the “corporate authorities”), and the City Manager is responsible to the Council for the proper management and execution of all Council policies. The City Manager appoints and removes all officers, department heads, and employees of the City, with the exception of those who fall under the authority of the Fire and Police Commission. The City Manager’s Office is responsible for coordinating the daily operations of all municipal departments. The City Manager has the authority to serve as acting department head during any department head vacancies or delegate such responsibilities. The authority of any department head or subordinate employee is derived from the authority of the City Manager and is subject to the oversight and supervision of the City Manager. In FY2024 as in FY2023, FY2022, FY2021, FY2020, and FY2019, the City Manager will serve as the community development director and the public works director. The City Manager’s Office has principal oversight regarding a broad range of administrative duties. These include records management, which involves preparing, maintaining, and retaining many of the City’s records, such as City Council minutes, ordinances, resolutions, agreements, contracts, leases, bonds, deeds, easements, permits, and petitions, as well as assisting with administering the oaths of appointed and elected officials. The City Manager’s Office prepares ordinances and resolutions for City Council meetings; prepares and distributes City Council agendas as well as agendas for the TIF Joint Review Board, Finance Advisory Committee, Human Relations Commission, and various volunteer committees. The Office is responsible for updates to the Municipal Code. The Office also serves as an alternate registrar for the County Clerk by registering voters and assisting with petitions from candidates for all City elections. The City Manager’s Office also oversees the City’s mass communication and community engagement efforts, which include administration of the City’s website, social media platforms, employee intranet, and community e-newsletter. The City Manager’s staff manage all Freedom of Information Act (FOIA) requests except for those submitted to the Police Department and are responsible for coordination with department representatives to ensure FOIA responses are made to the requestors in a timely manner. Most of the FOIA duties fall to the Management Analyst position within the City Manager’s Office. The City Manager’s Office supports the work of the contracted City Attorney to prosecute all ordinance and code violations in court and in the administrative hearing process. The Office maintains all files related to current ordinance violations and administrative hearing cases, in addition to documenting and recording all liens or release of liens for properties within the City. The Office also maintains all files relating to pending City litigation in claims where the City Attorney represents the City's interest and coordinates the City's efforts in furtherance of such litigation. Office staff manage all primary interaction with the City's various insurers, including 79 | Page insurance renewal, claim submission, coordination of defense of claims, pre-litigation efforts to collect on damages owed to the City for property damage or subrogation related matters, and insurance coverage issues. The Office also conducts a preliminary review of all claims brought against the City, in evaluating whether to accept or reject such claims, or whether to submit them to the City's insurers. The Office manages all bankruptcy filings, class action filings and related matters pertaining to City contractors, utility customers and other parties with whom the City has a contractual relationship. Further, the Office manages interaction with any state or federal agencies in any administrative or adjudicative proceedings. The City’s Finance office, Human Resources, and IT functions also fall within the City Manager’s Office and their functions are detailed in the pages that follow. Finally, and very importantly, the City’s economic development and business attraction efforts are led by the City Manager. The attraction of new industrial and commercial businesses including Meta, Kraft Heinz, the Ferrara Candy Company, and Amazon and their ongoing, phased development will continue to require the City Manager’s abiding attention in FY2024. The redevelopment of the City’s downtown core with the assistance of the City’s tax increment financing (TIF) program has also been an abiding interest of the department for several years and will continue to be now that TIF #1 has expired and TIF #3 has become the principal focus of City financial assistance to eligible private redevelopment initiatives. FY2023 Accomplishments Appointment of New Finance Director: Carrie Dittman resigned in June 2023 and the Finance Office was re-organized. Susan Hauman was appointed Director of Financial Services; Meagan Challand was promoted to Senior Accountant, and a new Accountant position will be filled by the end of the fiscal year with a slight net savings in annual expenditures. The reconstituted Finance staff ably sustained the office’s reputation for adherence to generally accepted accounting principles and immediately became an integral part of the City’s financial operations. Creation of a New Crime-Free Bureau: On November 27, 2023 Bob Redel organized the new Crime-Free initiative approved by the Council in September, 2023. The initiative was prompted by a summer of numerous weapons-related offenses and citizen complaints culminating in a series of senseless and tragic shootings on three consecutive days in late August 2023. With the Council’s legislative support, Bob has replaced the former “three-strike” system of crime-free housing provisions generally adopted in 2013 with a new system that compresses the period for landlords to establish a pattern of lawful conduct in a city rental unit, whether or not an arrest is made on the spot. The new system also imposes very stiff fines on those landlords or managers without an affirmative defense as to why their rental units were the location of unlawful offenses. The key to Bob’s success to date has been his aggressive and in-person follow-up with landlords and managers after reports of unlawful behavior at specific rental units have been received. This daily interaction has contributed to the decline in the pace and scope of criminal activity in rental units, particularly in DeKalb’s densely populated northwest quadrant. Management of the City’s TIF Program: On December 31, 2021 the Central Area Tax Increment Financing Redevelopment Area (TIF #1) was terminated according to the provisions of Ordinance 2021-043. The termination followed the consensus of the TIF Joint Review Board whose participating governmental bodies reached agreement on an intergovernmental agreement dated November 15, 2020 that directed the termination by 12/31/2021. The management of the existing TIF#3 falls to the City Manager’s Office. In FY2023, a number of architectural 80 | Page improvement grants were approved by the Council, as well as a $92,697 forgivable loan to Sam Patterson for the rehabilitation of the property at 151 N. Fourth Street. Additionally, the last TIF#3 payout was made to Pappas Development for the ongoing redevelopment of the former City Hall property at S. Fourth and Grove. Annie Glidden North Redevelopment: With ARP funds and other resources to continue and intensify redevelopment, the City Manager led the City staff in further redevelopment efforts including the reconfiguration of Kimberly Drive and the attraction of bids for the redevelopment of the City-owned property at Blackhawk Road and W. Hillcrest Drive. On July, 10 the Council approved a resolution (Resolution 2023-067) authorizing the City Manager to work with the NIU Foundation on a redevelopment agreement for the project area at the corner of the City’s Blackhawk and W. Hillcrest property. On October 23, the Council approved a resolution extending the deadline for the NIU Foundation to exercise its option to March 31, 2024, by which time a purchase and sale agreement will hopefully be entered and the Council will have a conceptual building and site plan and a plat of subdivision to approve as well. Collective Bargaining: The City Manager led the management team in the renegotiation of the City agreement with FOP Lodge 115 and IAFF Local 1236. ChicagoWest: The development of the Facebook, Ferrara, Amazon and Kraft Heinz sites has generated further market interest in this business park which is expanding by about 450 acres to the south of the Meta site. ChicagoWest was notified in mid-August that it was one of nine “Megasites Investment Program” recipients in 2023. The State of Illinois is leveraging Rebuild Illinois capital funds to help underwrite infrastructure in highly active development areas around the state. The purpose is to have development-ready sites for large industrial projects including data centers, distribution centers, and manufacturing. One feature of this general area will be a 81 | Page new 30-40 acre ComEd transmission substation to handle increased electrical capacity and larger electrical loads in the next three years. Property Tax Reform: The City Manager supported the property tax reform initiative led by Mayor Cohen Barnes and intended to bring the aggregate tax rate down to a more competitive level (approximately $9 per $100 EAV or less) in the next two tax years. In late November 2022, Mayor Barnes invited all local taxing bodies to join him in a summit consisting of the chief elected and administrative officers from each taxing body to jointly define targeted aggregate tax rates. The first summit was convened on March 9, 2023, and a follow-on summit meeting was convened on August 17. At the August meeting, it was agreed that a third summit meeting would be convened once all the local taxing bodies had approved their annual levies, keeping in mind the possibility that four industrial companies (Meta, Ferrara, Wehrli and Amazon) will contribute an estimated $150 million in new EAV in 2023, not including the impact of the DeKalb Township equalization factor of 9.53% on all types of properties. Although only the DeKalb Library and Park 82 | Page District have EAVs similar to the City of DeKalb, since DeKalb’s 2023 EAV is tentatively pegged at $998,000,000 it is clear that all local taxing bodies will have an opportunity to levy more actual dollars and still assure a solid decline in their tax rate. Belonging: A vitally important feature of DeKalb’s social and intellectual landscape in the past 2- 1/2 years has been the rise of the Belonging movement focusing on the removal of continuing obstacles to racial equity and social justice. The conversation has been taken up by the DeKalb community in the streets, in parks, in churches, in schools, and in municipal public meetings. Significant steps have been taken by the DeKalb City Council and administration to bring more transparency and accountability to law enforcement policies and practices, to address public safety issues in certain large apartment complexes, and to build hope out of intense community engagement and action in 2022 and 2023. Substantive steps toward sustained engagement will be undertaken in 2024. FY2024 Initiatives The following highlights will look familiar after reading through the FY2023 Accomplishments. Pursuant to the City Council’s direction, the “main thing” in terms of top objectives for the City government in 2024 remain economic growth in a business-friendly environment, crime prevention and safe neighborhoods, property tax relief, and the encouragement of social justice initiatives. ChicagoWest Business Park: Further development under the aegis of the “Megasites” program is likely and will involve freight rail service. The City and state will work collaboratively with Chicago West to enlist federal infrastructure support for the substantial private investment necessary to build such infrastructure. Park 88: Further development on Macom Drive in the Park 88 Business Park may unfold in the first quarter of 2024. Additionally, Park 88 has been a focal point for several larger production facilities as they narrow their search for attractive sites in the upper Midwest. AGN Redevelopment: The NIU Foundation will move forward in the first quarter of 2024 to create a plat of subdivision for their intended “Greek Life Center” at the corner of Blackhawk and E. Hillcrest, and should enter a purchase and sale agreement by April 2024. TIF #3: Additional Architecture Improvement Program (“AIP”) grants are likely to be brought to the Council. A total of $100,000 has been allocated for that purpose. Crime-Free Bureau: The new Crime-Free Bureau Director will continue to actively engage local landlords with rental properties of all sizes to explain the new program, maintain the practical inventory established by Bob Redel in 2023 that includes contact information for all owners and property managers, and work closely with the Police Department to identify locations with a pattern of unlawful activity. City/NIU Collaboration: The City Manager will work closely with Mayor Barnes to identify additional ways in which the City departments and NIU Colleges and Administration can work cooperatively to continue building a welcoming “college-town” atmosphere. 83 | Page 84 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET CITY MANAGERS OFFICE - ADMINISTRATION PERSONNEL 41100 WAGES - FULL-TIME 395,339 343,490 434,329 434,329 449,752 41200 WAGES - PART-TIME 310 41300 WAGES - OVERTIME 160 635 1,200 1,200 1,200 41550 CAR ALLOWANCE 2,925 2,925 2,925 2,925 2,925 42100 EMPLOYER PORTION FICA 28,366 24,500 33,222 33,222 34,721 42200 EMPLOYER PORTION IMRF 56,871 42,166 38,189 38,189 38,807 42500 EMPLOYEE HEALTH INSURANCE 74,747 69,336 77,137 77,137 76,999 42600 WORKER'S COMPENSATION/LIABILITY INSUR 655 946 PERSONNEL 559,373 483,998 587,002 587,002 604,404 COMMODITIES 52000 OFFICE SUPPLIES 1,096 2,647 1,000 1,000 1,000 53099 ACTIVITIES & SUPPLIES 78 90 100 100 100 COMMODITIES 1,174 2,737 1,100 1,100 1,100 CONTRACTUAL SERVICES 62099 PRINTED MATERIALS 928 77 1,000 1,000 1,000 62200 LEGAL SERVICES 176,173 171,780 159,000 159,000 159,000 63000 SPECIAL EVENT SERVICES 339 561 850 850 850 63800 CONTRACTED SERVICES 16,223 16,925 1,500 1,500 64500 TELEPHONE SERVICES 1,806 1,710 1,296 1,296 1,296 65100 FREIGHT & POSTAGE 34 100 100 100 65200 MARKETING ADS & PUBLIC INFO 725 2,355 1,000 65300 LEGAL EXPENSES & NOTICES 13,904 12,211 1,000 1,000 1,000 66100 DUES & SUBSCRIPTIONS 2,872 2,412 2,459 2,519 2,654 66200 TRAINING/TRAVEL 376 320 200 69700 SPECIAL PROJECTS 10,448 9,734 5,000 5,000 5,000 CONTRACTUAL SERVICES 223,794 201,194 188,830 172,265 172,400 EQUIPMENT 86200 OFFICE FURNITURE & EQUIPMENT 120 EQUIPMENT 0 120 0 0 0 CITY MANAGERS OFFICE - ADMINISTRATION 784,341 688,049 776,932 760,367 777,904 85 | Page This page has been intentionally left blank. 86 | Page HUMAN RESOURCES DEPARTMENT ORGANIZATIONAL CHART CITY MANAGER HUMAN RESOURCES DIRECTOR RECRUITMENT MANAGER HR COORDINATOR HR INTERN (PT) 87 | Page This page has been intentionally left blank. 88 | Page Human Resources Department _____________________________________________________________________________ Department Introduction The City’s small but enormously productive Human Resources (HR) Department administers all aspects of personnel services including recruitment, selection and retention, management of employee benefits programs, workers’ compensation administration, occupational health, and wellness programs and participation in labor-management and contract administration for three bargaining units (AFSCME, FOP and IAFF). The HR Department is responsible for establishing, administering and effectively communicating sound employment policies, rules, and practices that treat employees with dignity, respect and equality. This occurs while maintaining the City’s compliance with all employment and labor laws, management directives and labor agreements. Additionally, the HR Department daily addresses personnel concerns and inquiries, and provides employee orientation and training. HR also works to attract potential employees by disseminating employment information to colleges, universities, municipalities and media as well as assisting prospective employees through the recruitment process. The HR Department provides staff liaison to the Board of Fire and Police Commissioners. FY 2023 Accomplishments Sustainable Operations • Successfully filled 16 positions through external hiring and internal promotions in the Finance and Public Works Departments through the 3rd Quarter ensuring continuity of operations. Continued recruitment efforts to fill various positions within Information Technology, Finance, Community Development, Human Resources, and Public Works Departments. • Enhanced social media campaigns, expanded sourcing sites, and increased job fair participation to attract local talent and increase diversity in recruitment pools to fill open positions. • Collaborated with departments and applicable unions to update job descriptions as positions became available. Completed various job evaluations and equity studies and ensured all essential functions and hiring requirements were updated and reflected in the role. • Partnered with the Public Works and Fire Departments to develop and hire a skilled maintenance mechanic position specializing in fire equipment to reduce contractual cost. • Served as an advisor to employees and supervisors on employee and labor relations issues. Acted as a liaison between employee and supervisor. Counseled supervisors on appropriate responses or corrective action as necessary. • Successfully implemented a new benefit administration platform while ensuring the integrity of all employee data. 89 | Page  • Signed an intergovernmental agreement with the DeKalb Public Library to administer the Library’s health insurance program. Re-enrolled staff into various insurance options and assumed administration of the Library’s health insurance program. • Coordinated on-site meetings for employees to meet with retirement vendors to set-up accounts and plan for retirement. • Met with long serving employees contemplating retirement to run projections and review benefit options. • Continued the ongoing administration of all employee benefit programs. Assisted employees and retirees with insurance issues and worked with carriers on resolutions. • Continued to foster interest in City government with emerging professionals. Hired two grant- funded interns through a partnership with Northern Illinois University. Public Safety • Assisted in the recruitment and hiring of the Police Commander of Investigations during the 2nd Quarter to re-constitute the Command staff after Bob Redel’s retirement. • Hired and onboarded 9 Entry Level Police Officers and 3 Lateral Police Officers to achieve departmental growth goals and ensure continuity of operations. • Completed 2 Entry Level and 1 Lateral Police Officer recruitment processes during 1st and 2nd Quarters. Initiated a new Entry Level and a Lateral Process to establish eligibility lists during the 4th Quarter to fill future vacancies. • Partnered with the Board of Fire and Police Commissioners to revise hiring requirements for Entry Level Police Officer to expand and further diversify applicant pools. • Successfully hired and onboarded 5 new Firefighter/Paramedics from the current eligibility list during the 1st and 3rd Quarters achieving FY 2023 hiring goals. Initiated a new testing process and established a new list to achieve FY 2024 hiring goals. • Collaborated with the Fire Department and City’s Manager’s Office to develop recruitment videos to attract firefighter/paramedic candidates. • Oversaw the promotions of 3 Fire department employees to the rank of Battalion Chief, Captain, and Lieutenant/Paramedic and the promotion of 1 Police officer to the rank of Sergeant as determined by the Board of Fire and Police Commissioners. • Began a new Fire promotional examination process to establish an eligibility list for the promotion of Fire personnel to the ranks of Captain and Battalion Chief during the 2nd Quarter. Initiated a new Police Sergeant promotional examination process during the 3rd Quarter. • Collaborated with AFSCME on the creation of Telecommunicator Specialist positions to provide enhanced Center support during 1st Quarter. Completed panel interviews and internally promoted 3 Telecommunicators during the 2nd Quarter. • Filled 5 Telecommunicator positions by the 3rd Quarter. Retooled the Telecommunicator processes to increase responsiveness and initiated a new recruitment process during the 3rd Quarter to fill current vacancies. • Hired an outside vendor to assist with Telecommunicator background investigations to reduce Police departmental workload with expedited hiring for the Telecommunicator role. • Hired an Office Associate I in the Administrative Services Division through external hiring to fill vacant role. • Completed various comparable studies within public safety to ensure equity and market competitiveness to attract and retain talent while maintaining standards. 90 | Page FY 2024 Initiatives Sustainable Operations • Revise new employee orientation program to streamline processes. • Develop training for new supervisors on HR functions, regulatory requirements, and applicable roles. • Continue the audit of the employee personnel manual and benefits handbook and make any necessary updates. • Continue work on the job description project and updating all job descriptions to accurately reflect all duties and requirements. • Work with City Departments on the creation of a performance evaluation tool that sets clear, relatable performance expectations. • Continue the review of the City’s salary administration program to maintain internal equity and maintain competitiveness. Public Safety • Continue the hiring and onboarding of new Police officers and Firefighter/Paramedics through additional testing processes to recruit talent and achieve hiring initiatives within a highly competitive market. • Continue to test and interview telecommunicator applicants to sustain operations. • Collaborate with the Fire and Police Departments and look for opportunities to enhance local partnerships to expand interest in public safety positions. • Coordinate with the Fire Department to initiate a firefighter apprenticeship program to assist in the development of future firefighters while spotlighting the Department and increasing future applicant pools. • Initiate a new fire promotional examination process to establish an eligibility list for the promotion of Fire personnel to the rank of Lieutenant. 91 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET CITY MANAGERS OFFICE - HR PERSONNEL 41100 WAGES - FULL-TIME 96,278 150,535 200,280 200,280 210,891 41200 WAGES - PART-TIME 52,820 21,878 15,485 15,485 15,872 42100 EMPLOYER PORTION FICA 10,948 12,639 16,506 16,506 17,347 42200 EMPLOYER PORTION IMRF 19,653 20,544 17,444 17,444 18,031 42500 EMPLOYEE HEALTH INSURANCE 22,771 25,301 45,547 45,547 45,446 42600 WORKER'S COMPENSATION/LIABILITY INSUR 118 170 PERSONNEL 202,588 231,067 295,262 295,262 307,587 COMMODITIES 51000 BOARDS & COMMISSIONS 735 800 800 800 52000 OFFICE SUPPLIES 934 969 425 425 675 COMMODITIES 1,669 969 1,225 1,225 1,475 CONTRACTUAL SERVICES 62099 PRINTED MATERIALS 187 200 200 200 62600 MEDICAL SERVICES 4,853 4,160 6,950 4,500 5,500 62800 UNEMPLOYMENT INSURANCE SERVICES 6,961 6,380 10,000 10,000 10,000 62900 PERSONNEL RECRUITMENT SERVICES 50,978 40,972 75,000 75,000 85,680 63000 SPECIAL EVENT SERVICES 1,032 400 3,000 3,000 5,150 64500 TELEPHONE SERVICES 1,189 1,186 1,475 1,475 1,475 65100 FREIGHT & POSTAGE 300 300 300 65300 LEGAL EXPENSES & NOTICES 692 200 200 700 66100 DUES & SUBSCRIPTIONS 734 963 1,000 1,000 1,070 66200 TRAINING/TRAVEL 168 554 1,750 1,500 3,750 CONTRACTUAL SERVICES 66,102 55,307 99,875 97,175 113,825 CITY MANAGERS OFFICE - HR 270,359 287,343 396,362 393,662 422,887 92 | Page  FINANCE DEPARTMENT ORGANIZATIONAL CITY MANAGER DIRECTOR OF FINANCIAL SERVICES SENIOR ACCOUNT TECH III ACCOUNT TECH I ACCOUNT TECH I ACCOUNTANT ACCOUNTANT AP/AR UTILITY BILLING/ CUSTOMER SERVICE LICENSING REP 93 | Page This page has been intentionally left blank. 94 | Page Finance Department _____________________________________________________________________________ Department Introduction The Finance Department is responsible for the administration of all fiscal operations and maintenance of all accounting records for the City as well as providing “front counter” customer service at City Hall during regular business hours. The Department is dedicated to maintaining a fiscally sound government organization that adheres to legal requirements and financial management principles and applying such resources in a manner which is most beneficial to the residents and businesses of DeKalb. The responsibilities of the Department include the following: cash and investment management, budgeting, auditing, debt administration, bi-weekly payroll processing, accounts payable/accounts receivable, utility billing, business licensing, local tax collection and regulation, property tax levy preparation, and the auditing of Illinois Motor Fuel Tax funds. The Department is dedicated to providing residents and businesses with exceptional government financial management. The Department's commitment to financial excellence has been recognized nationally by the Government Finance Officers Association (GFOA), which has presented the Department with the Certificate of Excellence in Financial Reporting for its Annual Comprehensive Financial Report (ACFR) and the Distinguished Budget Presentation Award. FY 2023 Accomplishments Retained a 25% General Fund balance reserve level: The City’s fund balance policy, which is based on “Best Practices” formulated by the Government Finance Officers Association (GFOA), requires that the General Fund maintain a reserve level of 25% of annual expenditures. After a hardship year in 2018 when the City did not achieve the benchmark, the City made some extraordinary personnel adjustments and constrained department spending and exceeded the 25% mark in fiscal years 2019 – 2022. It is projected that the reserve will substantially exceed the 25% fund balance policy through year-end 2023 and again in 2024. Annual City Financial Audit: The City obtained an unmodified (“clean”) opinion on the financial statements for the year ended December 31, 2022. in addition, the City was awarded the Certificate of Excellence in Financial Reporting from GFOA for the year ended December 31, 2021, which was the 28th award the City has obtained; we are currently awaiting the results from our submission for December 31, 2022. Annual City Budget: The City expects to receive the Distinguished Budget Presentation Award from GFOA for the fiscal year January 1, 2023 – December 31, 2023, which would be the 8th award the City has received. The annual preparation of the municipal budget is a team effort involving all city departments, along with forward planning in the creation of another notable budget document for fiscal year 2024. Implementation of GASB 87: The City worked in partnership with Sikich, the City’s third-party auditing team, to implement GASB Statement No. 87, the new reporting requirements for 95 | Page recognizing leases on the City’s financial statements. The City forwarded all lease agreements to Sikich for review to determine if recognition was required under GASB 87. Upgrade to the City’s Bond rating: DeKalb has earned a bond rating upgrade reflecting the City’s strong financial health resulting from responsible financial policies and transformative economic development. The upgrade by Moody’s Investors Services increases the City’s bond rating to A1 from A2. Among the City’s credit strengths, Moody’s cites notable growth in the City’s economy from larger scale economic development projects in the ChicagoWest Business Center on the far southside. In its opinion released Oct. 4, Moody’s credits more than $2 billion in investments from Meta, Amazon, Kraft Heinz, and Ferrara Candy for positive trends in both sales and use taxes and property taxes, the City’s main revenue sources. Other factors cited by Moody’s in the upgrade were the City’s home-rule status and the presence of Northern Illinois University as an anchor in the regional economy. The City’s Budget Policy requires adequate funding of all pension plans and the City’s actuary prepares the annual valuation and annual required contribution assuming 100% funding by 2040 under the Entry Age Normal actuarial cost method, which is higher than the statutory minimum (90% by 2040). The City has been contributing the full annual contribution (or more) under this method since FY 2018. Water Account Delinquent Balance Review: Finance instituted a monthly review process for all utility billing accounts and implemented a collections policy for all delinquent accounts. In addition, flagging accounts within the BS&A software and determining when to refer outstanding balances to a collection agency. Crime Free Housing Bureau: Finance assisted the Director of the Crime-Free Bureau in establishing a debt collection strategy, clearly outlining the terms and conditions of required payments, offering online invoice processing, emailing of delinquent invoices, and determining when to refer outstanding balances to a collection agency. Achieving Greater Department Efficiencies: In 2023, the Department continued to improve efficiencies and internal controls by reviewing and revising the City’s Financial Policies. in November 2023 a thorough review was performed and several updates were adopted as part of the annual budget process. Quantitative Breakdown of Department Activity Department Activity 2021 2022 Incoming Calls Main Number 6,554 6,332 Number of Utility Bills Issued 66,854 66,672 Water Gallons Billed 1,354,445 1,395,951 Purchase Orders Issued 213 258 Checks Issued - AP 3,221 4,011 Invoices Processed - AP 7,773 8,089 Cash Receipt Transactions (Front 53,026 48,185 Counter) Online Payments 22,076 23,675 96 | Page FY 2024 Initiatives Annual City Budget: City staff continued to implement enhancements in the 2024 budget and look forward to another successful submission to the GFOA. Compilation of a Comprehensive Capital Improvement Program (CIP): In the past, the City was able to produce a 5-year CIP encompassing the capital needs of all City funds and departments. Due to a lack of staff, this has fallen by the wayside on a City-wide basis, although individual departments still maintain lists of future capital needs. The presentation of a comprehensive plan will highlight all needs and assist the City with recognizing and prioritizing the greatest needs with available resources. Implement City Wide Collections/Write-Off Policy: In 2024, the Department will continue to fine tune the collections process, with the goal of implementation across all BS&A modules. The Finance staff are currently assessing the requirements to include Accounts Receivable and Business Licensing in this process. Achieving Greater Department Efficiencies: In 2024, the Department will continue to improve efficiencies and internal controls by reviewing and revising essential staff functions, streamlining routine processes, more efficiently utilizing existing technology and promoting staff growth through training opportunities. 97 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET FINANCE DEPARTMENT PERSONNEL 41100 WAGES - FULL-TIME 159,383 284,748 302,986 261,000 270,404 41300 WAGES - OVERTIME 1,095 (25) 2,000 2,000 2,000 42100 EMPLOYER PORTION FICA 11,323 20,545 23,331 23,331 20,839 42200 EMPLOYER PORTION IMRF 23,339 32,450 24,431 24,431 23,291 42500 EMPLOYEE HEALTH INSURANCE 52,229 70,931 62,157 62,157 71,189 42600 WORKER'S COMPENSATION/LIABILITY INSUR 626 904 PERSONNEL 247,995 409,553 414,905 372,919 387,723 COMMODITIES 52000 OFFICE SUPPLIES 1,212 3,605 2,700 2,700 2,700 COMMODITIES 1,212 3,605 2,700 2,700 2,700 CONTRACTUAL SERVICES 61500 MAINTENANCE-EQUIPMENT 4,944 180 4,975 4,975 5,000 62099 PRINTED MATERIALS 4,132 4,835 4,250 3,850 4,250 62100 FINANCIAL SERVICES 37,114 38,348 42,824 42,824 43,926 63800 CONTRACTED SERVICES 39 64500 TELEPHONE SERVICES 351 360 360 360 65100 FREIGHT & POSTAGE 14,216 9,651 15,000 15,000 15,000 65300 LEGAL EXPENSES & NOTICES 1,328 2,248 2,286 2,286 2,250 66100 DUES & SUBSCRIPTIONS 500 918 805 805 805 66200 TRAINING/TRAVEL 144 1,183 2,030 1,770 2,070 CONTRACTUAL SERVICES 62,417 57,714 72,530 71,870 73,661 EQUIPMENT 86200 OFFICE FURNITURE & EQUIPMENT 722 408 1,200 1,200 600 EQUIPMENT 722 408 1,200 1,200 600 FINANCE DEPARTMENT 312,346 471,280 491,335 448,689 464,684 98 | Page INFORMATION TECHNOLOGY ORGANIZATIONAL CHART CITY MANAGER IT DIRECTOR MULTIMEDIA IT TECHNICIAN GIS MANAGER TECHNICIAN (PT) 99 | Page This page has been intentionally left blank. 100 | Page Information Technology Department _____________________________________________________________________________ Department Introduction Information Technology (IT) is responsible for the City’s core technology and ensures data is collected, stored, protected and available for use by the City staff, elected officials, residents, businesses and other stakeholders. While IT does purchase, fix, and maintain computers, laptops, phones, servers and other electronic devices, the department does much more for the City organization. The first and foremost responsibility for IT is providing the capability to collect, protect, and allow access to data. Technology is the vehicle to provide City decision-makers access to data and IT strives to not only streamline that process, but also to increase the amount of information available. IT is responsible for the confidentiality and integrity of the City’s data through policy and technology. Additionally, IT facilitates and encourages collaboration and data sharing within the City and with external customers and agencies. IT also evaluates processes to find efficiencies to save the City money and time and to facilitate customer service. The IT Department is constantly evaluating current processes, data collection and use, current technology, and service capabilities to increase efficiencies, assist stakeholders with better information, keep with evolving technology trends and ensure maximum uptime of technology. FY2023 Accomplishments Fire Department: Implemented a new Pre-Planning platform for the Fire Department. This system provides structural and visual information for Fire-related incidents in real-time. As CAD calls come into the system for Fire dispatch, they are sent in real-time. The Fire Department can then use their Smartphones and Tablets to view an actual picture of the location and Pre-Plans they have associated with the location. A new station alerting system was installed for all 3 Fire stations to provide better response time and communication. Police Department: Public safety cameras were added at key intersections throughout the City of DeKalb. License Plate Readers (LPRs) were also added on main roads and intersections that provided the Police department with instant access to license plate validations for violations. IT also established real-time incident data for the DeKalb School District and their “Handle with Care” program. Infrastructure: Upgraded the South water tower and the Corporate Drive well house for the Water Division with fiber connections replacing their outdated radio connection. This provides a more reliable and faster connection to the well house for the SCADA system. IT also replaced older switches at Fire Station #2 and #3 to provide better connectivity to the network. 101 | Page Enterprise Systems: A network-wide asset management system was configured and deployed to all computers, laptops, and servers. This will allow the IT department to actively manage all aspects of these devices. IT can now actively monitor the performance and health of these managed devices, and deploy software on demand with Windows security updates. Geographic Information Systems (GIS): Created an interactive mapping solution for JULIE locate requests for the Water Division. This takes the JULIE-generated email, processes it, and plots it on an interactive map. The Water Division locator using his tablet device can see the exact location of the request as well as information related to the request, and then mark it as completed. This eliminates the email or a printed request that was used in the past. FY2024 Initiatives Geographic Information Systems (GIS): The Information Technology Department’s largest GIS commitment for 2024 is more comprehensive online mapping. This will include more interactive maps with a greater amount of content for both people within the organization and the general public. A major initiative to realize this commitment is to install Portal for ArcGIS, which controls data security for both internal and external users. An emphasis will be placed on using Story Maps to convey information in an easily consumable format on the internet so City staff can educate stakeholders on the City’s initiatives, information, and resources. Enhanced data initiatives include adding building footprints, updating the tree inventory, and special use permits. The GIS will also be used as a repository for all zoning district ordinance changes, geographically linking PDFs of the approved City Council ordinances for easy retrieval. Enterprise Systems Infrastructure: A key focus is the upgrading of the existing Storage Area Network to accommodate additional storage and performance for the new Public Safety cameras as well as planning for additional cameras in the future. The staff will also establish redundancy for the Public Works data center to improve disaster recovery scenarios. The department will also continue switch upgrades throughout all city buildings replacing equipment that has become “end of life.” Analyzing the new IT asset management system to better determine technology life cycle for all devices is all planned. Public Safety: IT will install additional public safety cameras at locations determined by the Police department. Additionally, IT will continue upgrades of existing Police squad systems and the configuring of new Police squads for patrol. The Fire Department truck companies will get tablets to utilize the new pre-planning platform. Getting more devices and data into the hands of the Fire department will help with emergency situations. Analyzing the better use of technology in the Public Works department is also a priority. The extensive amount of data in-house should be available to the Public works staff out in the field, utilizing existing hardware and software that is already readily available. 102 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET INFORMATION TECHNOLOGY PERSONNEL 41100 WAGES - FULL-TIME 226,037 230,787 236,557 236,557 242,146 41200 WAGES - PART-TIME 8,048 10,271 15,759 15,759 16,154 41300 WAGES - OVERTIME 7,000 7,000 7,000 41400 LONGEVITY PAY 4,444 4,534 4,620 4,620 2,340 41500 CLOTHING ALLOWANCE 900 900 900 900 450 42100 EMPLOYER PORTION FICA 17,289 17,738 19,725 19,725 20,509 42200 EMPLOYER PORTION IMRF 33,540 29,265 21,007 21,007 21,502 42500 EMPLOYEE HEALTH INSURANCE 46,184 46,316 45,230 45,230 43,968 42600 WORKER'S COMPENSATION/LIABILITY INSUR 1,523 2,200 PERSONNEL 337,965 342,011 350,798 350,798 354,069 COMMODITIES 51500 SUPPLIES/PARTS-EQUIPMENT 2,630 2,604 4,000 4,000 4,000 51600 SUPPLIES/PARTS-TECHNOLOGY 27,790 21,530 25,000 25,000 25,000 52000 OFFICE SUPPLIES 485 457 500 600 500 53300 SMALL TOOLS & EQUIPMENT 308 293 300 300 300 55000 FUEL, OIL, & LUBRICANTS 163 323 200 200 200 COMMODITIES 31,376 25,207 30,000 30,100 30,000 CONTRACTUAL SERVICES 61500 MAINTENANCE-EQUIPMENT 40,335 34,085 109,405 109,405 116,667 61800 MAINTENANCE-SOFTWARE 298,060 285,629 397,845 397,845 436,130 62099 PRINTED MATERIALS 6,044 6,674 8,000 8,000 8,000 62400 TECHNOLOGY SERVICES 17,820 19,610 19,820 19,820 19,820 63800 CONTRACTED SERVICES 17,825 23,910 45,052 45,052 45,052 64500 TELEPHONE SERVICES 15,412 16,529 22,000 25,000 25,000 65100 FREIGHT & POSTAGE 86 156 250 250 250 66100 DUES & SUBSCRIPTIONS 545 961 1,340 1,340 1,340 66200 TRAINING/TRAVEL 2,460 6,000 6,000 6,000 CONTRACTUAL SERVICES 396,127 390,014 609,712 612,712 658,259 EQUIPMENT 86100 TECHNOLOGY EQUIPMENT 16,527 14,228 18,000 18,000 18,000 EQUIPMENT 16,527 14,228 18,000 18,000 18,000 INFORMATION TECHNOLOGY 781,995 771,460 1,008,510 1,011,610 1,060,328 103 | Page This page has been intentionally left blank. 104 | Page  DEKALB POLICE DEPARTMENT ORGANIZATIONAL CHART CHIEF OF POLICE ADMINISTRATIVE DEPUTY ASSISTANT CHIEF ADMINISTRATIVE COMMUNITY PATROL SERVICES INVESTIGATION DIVISION SUPPORT SERVICES DIVISION DIVISION DIVISION PATROL ADMINISTRATIVE COMMUNITY SUPPORT SERVICES INVESTIGATIONS COMMANDER COMMANDER COMMANDER COMMANDER AM PATROL SHIFT RECORDS COMMUNICATIONS OFFICERS (13) INVESTIGATIONS TARGETED RESPONSE SERGEANTS (3) SUPERVISOR COORDINATOR SERGEANT (2) UNIT SERGEANT (1) PM PATROL SHIFT OFFICE ASSOCIATES TELECOMMUNICATOR DETECTIVES DETECTIVES SERGEANTS (3) OFFICERS (13) (2 FT) (2 PT) SPECIALISTS (3) (8) (3) MN PATROL SHIFT VIDEO EVIDENCE TELECOMMUNICATORS SERGEANTS (3) OFFICERS (9) TECHNICIAN (13 FT) (1 PT) SOCIAL WORKERS (2 CONTRACTED) SCHOOL RESOURCE COURT SECURITY OFFICERS (5) (PT) COMMUNITY POLICING OFFICERS (4) 105 | Page COMMUNITY SERVICE OFFICERS (4 PT) To Protect And Serve This page has been intentionally left blank. 106 | Page Police Department _____________________________________________________________________________ The Police Department is responsible for serving and protecting residents, businesses, students and visitors to our City. The Department is obligated to preserve the peace, enforce laws and ordinances, and protect the constitutional rights of all people. The Police Department seeks to deploy effective policing strategies, develop community partnerships, and engage in the efficient commitment of resources to fulfill our vision and mission statements. The Police Department’s Vision Statement is: “A city where our families, businesses, and culture prosper in an environment in which all people are treated with dignity, equity, and respect.” Our Mission Statement is: “The members of the DeKalb Police Department are committed to reducing crime and enhancing the quality of life through an active partnership with our community.” The Police Department is committed to making positive changes to enhance public trust, transparency, and racial equality. The spirit of belonging is one of the core missions, and the goal of the DeKalb Police Department is to assure every resident, student, and visitor to the City of DeKalb feels the spirit of belonging. To realize this Vision and Mission, the Department must work in partnership with our community. Therefore, the Police Department embraces Community Policing, Community Engagement, Co- Policing Initiatives, and Intelligence-Driven Policing. Using the best practices in proactive policing our goal is to reduce crime, improve public safety, positively engage residents, students and visitors to our community, and enhance our quality of life. FY 2023 Accomplishments Department Leadership: In order to fill a vacancy caused by the retirement of Commander Bob Redel, Sergeant Keith Ehrke was promoted to become the Investigations Commander. Sonny Streit was promoted to Sergeant to fill former Sgt. Ehrke’s position, and Sgt. Streit later transitioned from Patrol to Investigations to supervise the case detectives. Patrol officer Steve Parsons was promoted from his position in the Targeted Response Unit to fill the vacant Patrol Sergeant position. Sworn Staffing Increase: The Police Department was authorized to add five (5) Police Officers to increase overall sworn staffing to seventy (70) Police Officers. Hiring continued throughout the year in an effort to reach this level. Telecommunicator Staffing Increase: The Police Department added three full-time Telecommunicator positions in 2023, boosting the existing staffing levels with a goal of having three Telecommunicators on duty the majority of the time. In addition, three specialty positions were created and filled, allowing for increased attention to the duties of LEADS Coordinator, Training Coordinator, and CAD Administrator. Citizens Police Review Board: The Citizens Review Board was fully functional in 2023, with regular meetings occurring throughout the year which primarily included reviews of Police conduct in cases brought forward by citizens. Additional training sessions were provided by the Police Department and the Review Board also considered a number of policies and procedures. 107 | Page License Plate Readers: The strategic deployment of License Plate Readers (LPRs) was expanded in 2023 with additional locations and has enhanced public safety by detecting numerous stolen and felonious vehicles, leading to several successful criminal arrests. Citizen Appreciation Ceremony: The DeKalb Police Department held its third Citizen Appreciation Ceremony in which citizens were commended for offering assistance to the Police Department. This will continue to be an annual event, as the Department looks forward to commending citizens for assistance rendered to the DeKalb Police Department. Crisis Intervention Team and Social Worker Program: Over the past several years, the Police Department has participated in various behavioral health initiatives as an extension of the federal Police-Mental Health Collaboration Program. Additional members of the department attended a 40-hour training course in Crisis Intervention Team tactics in 2023, which include de-escalation and diversion techniques. Team members became specialists in intervention with persons experiencing a personal crisis due to behavioral health issues. Two embedded social workers provided through Northwestern Medicine Ben Gordon Center continue to work within the Police Department, connecting hundreds of people to various services throughout the year. Community Outreach: The Police Department was able to expand its complement of community outreach efforts this past year, including a Toys for Tots fundraiser basketball game, Pay it Forward Christmas gift event, Camp Power, National Night Out, and a host of community events throughout the year. New initiatives in 2023 included Fun Jam in the Park, a summerlong community outreach in various city parks each Tuesday and Thursday evening where children could play various board games, listen to live instrumental music, participate in art projects, and enjoy sports activities with Police officers and support staff. Also new this year were two Water Wars events, with children and families participating in water fights at both Welsh Park and Hopkins Park. 108 | Page Drones: By late 2023, the Police department will enhance its technology by adding drones to the list of available resources. Drones have a variety of public safety uses, from finding missing persons, providing aerial photography of accidents and crime scenes, and locating fleeing subjects, without putting the public or officers at undue risk. Public Safety Cameras: Additional public safety cameras were installed in 2023 to help monitor high crime areas. It is the department’s intent to continue to install cameras at key locations in the city to deter gang activity and violent crimes. There were several successful identifications of criminals this past year due to the public safety camera initiative. Updated Livescan Machine: The Police Department received and installed an updated Livescan machine, which is used to collect electronic fingerprints of offenders and various applicants. This technology also included an upgrade to the booking camera system. FY2024 Initiatives Continued Public Safety Initiatives: The Police Department intends to continue its growth of technological devices to deter crime and aid in the investigation of offenses. Additional public safety cameras, license plate readers, and drones are planned. These investigative aids act as a force multiplier in the detection and identification of perpetrators. Crime Scene Camera System: The Police Department intends to add a highly sophisticated 360- degree camera system to aid in the photography, documentation, and crime scene preservation of serious crimes. The camera system is capable of extremely accurate measurement of spaces and items and can even calculate the trajectory of bullets. Staffing Increase: The Police Department is anticipating an additional five (5) Police Officers in 2024 to bring the sworn total to seventy-three (73) including the Chief and Command staff. This 109 | Page staffing increase will allow the dedication of one or two officers to a Traffic Enforcement Unit, sustain a Crisis Intervention Team, and add a detective to help relieve the caseload that Patrol Officers initiate. Sgt. Joe Espy is also expected to transition from Patrol to Investigations as a second Sergeant in the assignment and supervision of detective cases. 110 | Page  POLICE DEPARTMENT EXPENDITURES BY DIVISION Administration Community Support \ ; 7.6% Services 17.5% \ Investigations 20.7% --...__Patrol 54.3% 111 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET POLICE DEPARTMENT PERSONNEL 41100 WAGES - FULL-TIME 6,894,885 7,276,547 8,376,550 8,376,550 9,249,462 41200 WAGES - PART-TIME 266,431 228,162 231,504 196,338 183,989 41300 WAGES - OVERTIME 929,847 897,832 732,000 732,000 812,000 41400 LONGEVITY PAY 42,462 36,599 43,152 36,899 36,744 41500 CLOTHING ALLOWANCE 51,531 54,353 68,401 69,201 70,001 41600 WELLNESS BONUS 8,250 4,550 130,000 130,000 130,000 42100 EMPLOYER PORTION FICA 187,197 194,116 240,648 240,648 255,913 42200 EMPLOYER PORTION IMRF 180,869 145,869 138,390 138,390 139,035 42300 EMPLOYER CONTRIB/PENSION 3,614,881 3,707,827 3,901,381 3,901,381 4,130,481 42500 EMPLOYEE HEALTH INSURANCE 1,516,666 1,567,595 1,568,507 1,568,507 1,659,946 42600 WORKER'S COMP/LIABILITY INSURANC 90,102 130,148 PERSONNEL 13,783,121 14,243,598 15,430,533 15,389,914 16,667,571 COMMODITIES 51300 SUPPLIES/PARTS-BUILDINGS 464 356 525 525 550 51500 SUPPLIES/PARTS-EQUIPMENT 882 51700 SUPPLIES/PARTS-VEHICLES 26,475 43,656 75,125 75,175 80,375 51997 STREETLIGHTS, PARTS 2,500 2,500 2,500 52000 OFFICE SUPPLIES 7,854 7,931 11,425 11,425 11,725 52600 PATROL SUPPLIES & EQUIPMENT 56,863 99,703 94,800 94,850 97,925 52700 INVESTIGATION SUPPLIES & EQUIPMENT 11,614 12,377 14,375 16,650 37,525 53300 SMALL TOOLS & EQUIPMENT 45,000 54000 UNIFORMS/PROTECTIVE CLOTHING 54,177 38,760 39,250 47,250 47,675 55000 FUEL, OIL, & LUBRICANTS 92,150 127,323 125,250 125,250 128,250 58110 DUI FINES EXPENDITURES 810 1,265 6,600 6,600 6,600 58120 ANTI-CRIME EXPENDITURES 1,198 3,709 8,525 8,525 8,575 58130 CRIME LAB EXPENDITURES 1,846 1,125 1,250 1,400 58140 POLICE FORFEITURES EXPENDITURE 1,801 9,114 100 100 59999 COMMODITIES 2,879 3,154 3,750 4,750 5,175 COMMODITIES 257,167 349,194 383,350 394,750 473,375 CONTRACTUAL SERVICES 61300 MAINTENANCE-BUILDINGS 4,655 4,579 6,625 7,825 7,350 61500 MAINTENANCE-EQUIPMENT 47,927 48,242 61,150 62,080 149,050 61700 MAINTENANCE-VEHICLES 13,731 22,942 20,325 21,275 23,775 62099 PRINTED MATERIALS 14,072 10,790 12,375 12,450 13,125 62100 FINANCIAL SERVICES 2,525 63500 TOWING SERVICES 1,270 2,386 2,800 4,080 4,760 63800 CONTRACTED SERVICES 83,305 12,791 105,725 56,110 111,475 64500 TELEPHONE SERVICES 47,412 46,561 48,500 48,500 51,500 65100 FREIGHT & POSTAGE 6,375 3,613 5,600 9,300 8,400 65200 MARKETING ADS & PUBLIC INFO 427 336 800 750 850 65300 LEGAL EXPENSES & NOTICES 273 534 1,075 850 1,125 66100 DUES & SUBSCRIPTIONS 10,717 10,281 12,765 12,670 14,900 66200 TRAINING/TRAVEL 90,396 98,292 142,275 140,155 147,850 66400 EDUCATION TUITION REIMBURSEMENT 100 CONTRACTUAL SERVICES 320,560 263,972 420,015 376,045 534,160 EQUIPMENT 86000 EQUIPMENT 2,896 2,300 28,500 28,500 49,000 86200 OFFICE FURNITURE & EQUIPMENT 222 21,750 21,500 26,650 86300 TELEPHONE & RADIO EQUIPMENT 25,000 25,000 30,000 EQUIPMENT 3,118 2,300 75,250 75,000 105,650 TOTAL POLICE DEPARTMENT 14,363,966 14,859,064 16,309,148 16,235,709 17,780,756 112 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Dept 20-21 - POLICE DEPARTMENT - ADMINISTRATION PERSONNEL 100-20-21-41100 WAGES - FULL-TIME 202,984 527,793 558,785 558,785 567,242 100-20-21-41200 WAGES - PART-TIME 1,876 126,543 95,166 60,000 44,238 100-20-21-41300 WAGES - OVERTIME 1,120 1,720 2,000 2,000 2,000 100-20-21-41500 CLOTHING ALLOWANCE 600 4,693 4,600 4,600 4,600 100-20-21-42100 EMPLOYER PORTION FICA 8,119 31,498 33,263 33,263 29,291 100-20-21-42200 EMPLOYER PORTION IMRF 30,242 34,945 29,515 29,515 24,252 100-20-21-42300 EMPLOYER CONTRIB/PENSION 59,265 114,087 167,202 167,202 165,219 100-20-21-42500 EMPLOYEE HEALTH INSURANCE 49,586 134,497 124,017 124,017 137,766 100-20-21-42600 WORKER'S COMPENSATION/LIABILITY INSU 6,916 9,990 PERSONNEL 360,708 985,766 1,014,548 979,382 974,608 COMMODITIES 100-20-21-51300 SUPPLIES/PARTS-BUILDINGS 464 356 525 525 550 100-20-21-51700 SUPPLIES/PARTS-VEHICLES 1,034 2,058 1,275 1,275 1,325 100-20-21-52000 OFFICE SUPPLIES 1,774 1,730 1,700 1,700 1,725 100-20-21-52700 INVESTIGATION SUPPLIES & EQUIPMENT 1,452 1,058 1,500 1,500 21,550 100-20-21-54000 UNIFORMS/PROTECTIVE CLOTHING 3,293 1,639 1,300 1,900 1,825 100-20-21-55000 FUEL, OIL, & LUBRICANTS 92,150 127,323 125,250 125,250 128,250 100-20-21-58110 DUI FINES EXPENDITURES 810 1,265 6,600 6,600 6,600 100-20-21-58120 ANTI-CRIME EXPENDITURES 1,198 3,709 8,525 8,525 8,575 100-20-21-58130 CRIME LAB EXPENDITURES 1,846 1,125 1,250 1,400 100-20-21-58140 POLICE FORFEITURES EXPENDITURE 1,801 9,114 100 100 100-20-21-59999 COMMODITIES 577 698 1,025 1,050 1,175 COMMODITIES 104,553 150,796 148,925 149,575 173,075 CONTRACTUAL SERVICES 100-20-21-61300 MAINTENANCE-BUILDINGS 2,632 1,115 1,325 1,500 1,500 100-20-21-61500 MAINTENANCE-EQUIPMENT 31,717 33,518 36,000 36,000 121,100 100-20-21-61700 MAINTENANCE-VEHICLES 2,513 1,796 1,800 1,800 2,050 100-20-21-62099 PRINTED MATERIALS 3,134 3,112 2,900 3,100 3,325 100-20-21-62100 FINANCIAL SERVICES 2,525 100-20-21-63800 CONTRACTED SERVICES 1,086 1,504 1,425 1,510 1,575 100-20-21-64500 TELEPHONE SERVICES 47,412 46,561 48,500 48,500 51,500 100-20-21-65100 FREIGHT & POSTAGE 2,608 2,075 3,300 3,850 4,050 100-20-21-65300 LEGAL EXPENSES & NOTICES 150 150 150 100-20-21-66100 DUES & SUBSCRIPTIONS 1,760 1,419 2,115 2,460 2,475 100-20-21-66200 TRAINING/TRAVEL 2,212 2,953 4,875 3,030 5,075 CONTRACTUAL SERVICES 95,074 96,578 102,390 101,900 192,800 EQUIPMENT 100-20-21-86200 OFFICE FURNITURE & EQUIPMENT 5,250 5,000 5,400 EQUIPMENT 5,250 5,000 5,400 Totals for dept 20-21 - POLICE DEPARTMENT - ADMINISTRATION 560,335 1,233,140 1,271,113 1,235,857 1,345,883 113 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Dept 20-22 - POLICE DEPARTMENT - PATROL PERSONNEL 100-20-22-41100 WAGES - FULL-TIME 4,087,414 4,005,566 4,698,641 4,698,641 4,990,622 100-20-22-41200 WAGES - PART-TIME 901 57,282 14,190 14,190 14,543 100-20-22-41300 WAGES - OVERTIME 668,636 560,288 450,000 450,000 475,000 100-20-22-41400 LONGEVITY PAY 29,255 22,616 28,392 19,000 16,068 100-20-22-41500 CLOTHING ALLOWANCE 30,400 28,738 38,260 39,060 39,060 100-20-22-41600 WELLNESS BONUS 4,650 3,500 128,500 128,500 128,500 100-20-22-42100 EMPLOYER PORTION FICA 66,484 82,182 99,444 99,444 105,070 100-20-22-42200 EMPLOYER PORTION IMRF 648 32,594 30,559 30,559 32,242 100-20-22-42300 EMPLOYER CONTRIB/PENSION 2,488,917 2,566,957 2,396,563 2,396,563 2,588,435 100-20-22-42500 EMPLOYEE HEALTH INSURANCE 814,571 802,281 765,990 765,990 812,265 100-20-22-42600 WORKER'S COMPENSATION/LIABILITY INSU 57,930 83,677 PERSONNEL 8,249,806 8,245,681 8,650,539 8,641,947 9,201,805 COMMODITIES 100-20-22-51700 SUPPLIES/PARTS-VEHICLES 21,557 29,728 63,200 63,200 68,000 100-20-22-52000 OFFICE SUPPLIES 3,520 3,263 3,100 3,100 3,200 100-20-22-52600 PATROL SUPPLIES & EQUIPMENT 47,119 96,939 91,000 90,500 93,000 100-20-22-54000 UNIFORMS/PROTECTIVE CLOTHING 47,550 28,681 30,000 37,400 37,500 100-20-22-59999 COMMODITIES 509 1,077 1,500 2,150 2,350 COMMODITIES 120,255 159,688 188,800 196,350 204,050 CONTRACTUAL SERVICES 100-20-22-61300 MAINTENANCE-BUILDINGS 2,023 3,464 5,300 6,325 5,850 100-20-22-61500 MAINTENANCE-EQUIPMENT 11,675 7,242 15,350 15,250 16,750 100-20-22-61700 MAINTENANCE-VEHICLES 9,486 16,069 14,000 14,750 16,550 100-20-22-62099 PRINTED MATERIALS 5,887 3,251 4,600 4,550 4,650 100-20-22-63500 TOWING SERVICES 1,270 2,386 2,800 4,080 4,760 100-20-22-63800 CONTRACTED SERVICES 3,672 3,511 4,300 4,300 4,550 100-20-22-65300 LEGAL EXPENSES & NOTICES 273 330 425 300 450 100-20-22-66100 DUES & SUBSCRIPTIONS 1,995 2,250 2,850 2,570 2,875 100-20-22-66200 TRAINING/TRAVEL 62,784 68,818 107,650 107,605 107,950 CONTRACTUAL SERVICES 99,065 107,321 157,275 159,730 164,385 EQUIPMENT 100-20-22-86000 EQUIPMENT 2,896 2,300 28,500 28,500 49,000 100-20-22-86200 OFFICE FURNITURE & EQUIPMENT 222 1,500 1,500 3,250 100-20-22-86300 TELEPHONE & RADIO EQUIPMENT 25,000 25,000 30,000 EQUIPMENT 3,118 2,300 55,000 55,000 82,250 Totals for dept 20-22 - POLICE DEPARTMENT - PATROL 8,472,244 8,514,990 9,051,614 9,053,027 9,652,490 114 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Dept 20-24 - POLICE DEPARTMENT - INVESTIGATIONS PERSONNEL 100-20-24-41100 WAGES - FULL-TIME 1,193,888 1,548,059 1,511,016 1,511,016 1,998,643 100-20-24-41200 WAGES - PART-TIME 19,094 14,190 14,190 14,543 100-20-24-41300 WAGES - OVERTIME 195,340 249,754 200,000 200,000 250,000 100-20-24-41400 LONGEVITY PAY 6,489 8,046 7,416 10,555 12,204 100-20-24-41500 CLOTHING ALLOWANCE 8,800 10,869 12,660 12,660 13,460 100-20-24-41600 WELLNESS BONUS 2,900 900 1,000 1,000 1,000 100-20-24-42100 EMPLOYER PORTION FICA 19,664 40,812 47,074 47,074 56,583 100-20-24-42200 EMPLOYER PORTION IMRF 648 32,594 30,559 30,559 32,242 100-20-24-42300 EMPLOYER CONTRIB/PENSION 651,844 627,479 780,276 780,276 826,096 100-20-24-42500 EMPLOYEE HEALTH INSURANCE 253,812 309,810 305,888 305,888 350,814 100-20-24-42600 WORKER'S COMPENSATION/LIABILITY INSU 18,503 26,727 PERSONNEL 2,351,888 2,874,144 2,910,079 2,913,218 3,555,585 COMMODITIES 100-20-24-51700 SUPPLIES/PARTS-VEHICLES 2,335 8,659 7,875 7,750 7,925 100-20-24-51997 STREETLIGHTS, PARTS 2,500 2,500 2,500 100-20-24-52000 OFFICE SUPPLIES 305 457 700 700 750 100-20-24-52600 PATROL SUPPLIES & EQUIPMENT 9,744 2,764 3,800 4,350 4,925 100-20-24-52700 INVESTIGATION SUPPLIES & EQUIPMENT 9,979 11,017 7,350 9,550 9,850 100-20-24-53300 SMALL TOOLS & EQUIPMENT 45,000 100-20-24-54000 UNIFORMS/PROTECTIVE CLOTHING 1,656 4,673 5,650 5,650 5,825 100-20-24-59999 COMMODITIES 9 186 225 550 600 COMMODITIES 24,028 27,756 28,100 31,050 77,375 CONTRACTUAL SERVICES 100-20-24-61500 MAINTENANCE-EQUIPMENT 446 2,000 2,250 2,250 100-20-24-61700 MAINTENANCE-VEHICLES 1,235 2,726 2,800 2,825 3,050 100-20-24-62099 PRINTED MATERIALS 1,203 1,737 1,450 1,425 1,550 100-20-24-63800 CONTRACTED SERVICES 115 100-20-24-65100 FREIGHT & POSTAGE 2,500 2,500 100-20-24-65300 LEGAL EXPENSES & NOTICES 139 175 150 175 100-20-24-66100 DUES & SUBSCRIPTIONS 5,447 6,067 6,450 6,440 8,175 100-20-24-66200 TRAINING/TRAVEL 21,548 17,341 17,750 17,595 20,075 CONTRACTUAL SERVICES 29,433 28,571 30,625 33,185 37,775 EQUIPMENT 100-20-24-86200 OFFICE FURNITURE & EQUIPMENT 2,500 EQUIPMENT 2,500 Totals for dept 20-24 - POLICE DEPARTMENT - INVESTIGATIONS 2,405,349 2,930,471 2,968,804 2,977,453 3,673,235 115 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Dept 20-25 - POLICE - COMMUNITY SUPPORT SERVICES PERSONNEL 100-20-25-41100 WAGES - FULL-TIME 718,518 1,195,129 1,608,108 1,608,108 1,692,955 100-20-25-41200 WAGES - PART-TIME 155,667 25,243 107,958 107,958 110,665 100-20-25-41300 WAGES - OVERTIME 25,876 86,070 80,000 80,000 85,000 100-20-25-41400 LONGEVITY PAY 4,738 5,937 7,344 7,344 8,472 100-20-25-41500 CLOTHING ALLOWANCE 5,315 10,053 12,881 12,881 12,881 100-20-25-41600 WELLNESS BONUS 700 150 500 500 500 100-20-25-42100 EMPLOYER PORTION FICA 32,105 39,624 60,867 60,867 64,969 100-20-25-42200 EMPLOYER PORTION IMRF 28,034 45,736 47,757 47,757 50,299 100-20-25-42300 EMPLOYER CONTRIB/PENSION 414,855 399,304 557,340 557,340 550,731 100-20-25-42500 EMPLOYEE HEALTH INSURANCE 277,781 321,007 372,612 372,612 359,101 100-20-25-42600 WORKER'S COMPENSATION/LIABILITY INSU 5,959 9,754 PERSONNEL 1,669,548 2,138,007 2,855,367 2,855,367 2,935,573 COMMODITIES 100-20-25-51700 SUPPLIES/PARTS-VEHICLES 1,549 3,211 2,775 2,950 3,125 100-20-25-52000 OFFICE SUPPLIES 2,255 2,481 5,925 5,925 6,050 100-20-25-52700 INVESTIGATION SUPPLIES & EQUIPMENT 183 302 5,525 5,600 6,125 100-20-25-54000 UNIFORMS/PROTECTIVE CLOTHING 1,090 3,767 2,300 2,300 2,525 100-20-25-59999 COMMODITIES 1,784 1,193 1,000 1,000 1,050 COMMODITIES 6,861 10,954 17,525 17,775 18,875 CONTRACTUAL SERVICES 100-20-25-61500 MAINTENANCE-EQUIPMENT 1,828 7,036 7,800 8,580 8,950 100-20-25-61700 MAINTENANCE-VEHICLES 497 2,351 1,725 1,900 2,125 100-20-25-62099 PRINTED MATERIALS 1,847 2,690 3,425 3,375 3,600 100-20-25-63800 CONTRACTED SERVICES 78,547 7,661 100,000 50,300 105,350 100-20-25-65100 FREIGHT & POSTAGE 3,767 1,538 2,300 2,950 1,850 100-20-25-65200 MARKETING ADS & PUBLIC INFO 427 336 800 750 850 100-20-25-65300 LEGAL EXPENSES & NOTICES 65 325 250 350 100-20-25-66100 DUES & SUBSCRIPTIONS 752 545 1,350 1,200 1,375 100-20-25-66200 TRAINING/TRAVEL 2,538 9,180 12,000 11,925 14,750 100-20-25-66400 EDUCATION TUITION REIMBURSEMENT 100 CONTRACTUAL SERVICES 90,203 31,502 129,725 81,230 139,200 EQUIPMENT 100-20-25-86200 OFFICE FURNITURE & EQUIPMENT 15,000 15,000 15,500 EQUIPMENT 15,000 15,000 15,500 Totals for dept 20-25 - POLICE - COMMUNITY SUPPORT SERVICES 1,766,612 2,180,463 3,017,617 2,969,372 3,109,148 116 | Page  DEKALB FIRE DEPARTMENT ORGANIZATIONAL CHART FIRE CHIEF ADMINISTRATIVE ASSISTANT (2) DEPUTY CHIEF DEPUTY CHIEF OF OPERATIONS OF TRAINING BATTALION BATTALION BATTALION LIEUTENANT OF EMS LIEUTENANT OF FIRE CHIEF CHIEF CHIEF COORDINATION PREVENTION CAPTAIN CAPTAIN CAPTAIN LIEUTENANT (3) LIEUTENANT (3) LIEUTENANT (3) FIREFIGHTER/ FIREFIGHTER/ FIREFIGHTER/ PARAMEDIC (17) PARAMEDIC (17) PARAMEDIC (17) 117 | Page This page has been intentionally left blank. 118 | Page Fire Department _____________________________________________________________________________ The DeKalb Fire Department is a full service, all-hazards emergency service provider serving the City of DeKalb, Northern Illinois University, and the DeKalb Fire Protection District. The Department is a member of the Mutual Aid Box Alarm System (MABAS) Division 6, a system that shares emergency services with partner communities during times of need. The Department’s core services include fire suppression, emergency medical, hazardous materials, technical rescue, fire investigation, and fire prevention. The Fire Department is comprised of two divisions: Administration and Operations. The Operations Division is comprised of three shifts of firefighters and officers from three (3) fire stations. Minimum daily staffing is fifteen (15) firefighter/paramedics who work 24-hours-on/48- hours-off schedules. In October 2024, the minimum daily staffing will increase to sixteen (16) in accordance with the collective bargaining agreement with IAFF Local 1236. The Department’s employees are its most valued resource, committed to providing the highest quality service the DeKalb community has come to expect and deserve. The Administration Division consists of the Fire Chief, Deputy Fire Chief of Operations, Deputy Fire Chief of Training, Fire Prevention Lieutenant, EMS Lieutenant, and two (2) Administrative Assistants that support every aspect of the Fire Department. The Fire Administration strives to bring efficiency both operationally and administratively. The Fire Department’s emergency call volume remains steady. Year Fire/Life Safety EMS & Rescue Total Responses 2020 1299 5066 6365 2021 1442 6004 7446 2022 1376 6061 7437 FY2023 Accomplishments In 2023, the Fire Department focused on personnel, rolling stock, and other areas in need of improvement. The following are highlights: • Completed the hiring of three (3) new firefighters to replace three (3) who left for retirement or to pursue other career opportunities. The Department will hire 4 more during the 2023 fiscal year to achieve an optimal shift strength of nineteen (19). • Renewed the Department’s annual application to participate in the federal Ground Emergency Medical Transport (GEMT) program. This program generates monies used for capital and other needs for the Fire Department. • Utilized a $251,008 (FEMA) Assistance to Firefighters Grant (AFG). The Grant covers approximately 54% of the total cost of the following equipment. • a new Fill Station – installed in 2023. • new Self-Contained Breathing Apparatus (SCBA). 119 | Page • Received the Department’s second Rosenbauer Fire Engine in August 2023 (new Engine 2 below). This vehicle was funded by the GEMT Fund (Fund 130). • Received a staff vehicle in May (new Chief 2) and a second staff vehicle (new Battalion 1), in September 2023. • Started the installation of a new Station Alert System. • Upgraded Department portable radios. • The South radio tower was upgraded with fiber-optic service. • A Mobile radio repeater installed in the Battalion 1 staff vehicle. • Collaborated with the Director of Streets, Facilities & Airport to propose a Skilled Maintenance Fire Mechanic position that was approved by the Council. The position’s primary duty is to work on Fire Department Equipment. The position is in the Street Division under Public Works. • Helped prepare a detailed facility plan to the City Council seeking approval for building a fourth Fire Station in the city’s southwest quadrant. • Applied for two (2) AFG grants. 120| Page  2023 PROBATIONARY EMPLOYEES Trevor Yaeger Brennan Peters FY2024 Initiatives In 2024, the Fire Department will pursue the following: • Put a new Rosenbauer King Cobra ladder truck (September 2024) in service. • Receive two (2) new ambulances in late 2024. • Actively participate in the process for the design and construction of Fire Station 4. • On-board new staff including a total of 9 new hires in the fourth quarter for Station 4. The on-boarding process includes pre-employment screenings, a 120-hour orientation, Basic Operations Firefighter (BOF) certification through a fire academy (if needed), personal protective equipment outfitting, and a 12-month probationary period. • Apply for another SAFER grant to aid with the costs of staff hired for Station 4. • Continue a capital replacement program for Fire and EMS administration/operations. The Fire Department will continue to provide prompt and professional service to the residents, visitors, and stakeholders of DeKalb. 121 | Page 122 | Page FIRE DEPARTMENT EXPENDITURES BY DIVISION I Operations 92.6% 123 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET FIRE DEPARTMENT PERSONNEL 41100 WAGES - FULL-TIME 5,261,138 5,811,381 6,288,281 6,288,281 6,621,252 41200 WAGES - PART-TIME 8,067 41300 WAGES - OVERTIME 1,000,052 713,571 551,000 615,866 551,000 41400 LONGEVITY PAY 46,939 46,190 51,996 51,996 50,652 41500 CLOTHING ALLOWANCE 39,333 43,467 49,600 49,600 49,600 41600 WELLNESS BONUS 131,217 91,984 150,000 150,000 110,000 41650 EDUCATION BONUS 4,875 5,500 5,000 5,000 5,000 42100 EMPLOYER PORTION FICA 87,634 92,071 109,307 109,307 113,630 42200 EMPLOYER PORTION IMRF 7,791 8,929 9,015 9,015 8,979 42300 EMPLOYER CONTRIB/PENSION 4,282,230 4,415,632 4,933,015 4,933,015 5,343,974 42500 EMPLOYEE HEALTH INSURANCE 1,160,085 1,229,840 1,109,024 1,109,024 1,125,234 42600 WORKER'S COMP/LIABILITY INSURANC 177,136 255,863 PERSONNEL 12,198,430 12,722,495 13,256,238 13,321,104 13,979,321 COMMODITIES 51300 SUPPLIES/PARTS-BUILDINGS 24,276 14,497 9,000 26,264 10,000 51700 SUPPLIES/PARTS-VEHICLES 25,053 21,311 25,000 25,000 25,000 52000 OFFICE SUPPLIES 1,548 2,097 3,000 1,356 3,000 52500 JANITORIAL SUPPLIES 5,326 8,298 6,000 8,435 8,500 52800 FIREFIGHTING SUPPLIES & EQUIPMENT 14,210 52,684 60,000 56,004 60,000 52900 AMBULANCE SUPPLIES & EQUIPMENT 45,077 43,438 45,000 32,402 45,000 53099 ACTIVITIES & SUPPLIES 743 898 1,000 1,423 1,500 53300 SMALL TOOLS & EQUIPMENT 1,779 1,533 2,400 2,529 2,600 54000 UNIFORMS/PROTECTIVE CLOTHING 8,033 17,980 5,500 7,508 8,500 55000 FUEL, OIL, & LUBRICANTS 55,936 83,621 74,584 67,635 75,000 COMMODITIES 181,981 246,357 231,484 228,556 239,100 CONTRACTUAL SERVICES 61300 MAINTENANCE-BUILDINGS 19,846 17,837 50,111 50,270 50,000 61500 MAINTENANCE-EQUIPMENT 31,670 23,472 18,100 37,709 37,600 61700 MAINTENANCE-VEHICLES 87,223 91,927 75,000 75,000 15,000 62099 PRINTED MATERIALS 1,302 3,875 3,500 3,659 3,700 62600 MEDICAL SERVICES 26,369 32,223 39,000 45,120 55,000 63800 CONTRACTED SERVICES 78,319 80,200 70,000 67,473 70,000 64000 UTILITIES 4,314 6,243 3,320 4,436 4,500 64500 TELEPHONE SERVICES 16,731 13,970 14,000 9,341 14,000 65100 FREIGHT & POSTAGE 506 480 350 413 500 65200 MARKETING ADS & PUBLIC INFO 2,500 66100 DUES & SUBSCRIPTIONS 4,202 3,841 6,000 6,646 9,000 66200 TRAINING/TRAVEL 27,290 23,641 36,000 50,052 36,000 CONTRACTUAL SERVICES 297,772 297,709 315,381 350,119 297,800 EQUIPMENT 86300 TELEPHONE & RADIO EQUIPMENT 385 600 2,000 2,000 EQUIPMENT 385 600 2,000 0 2,000 TOTAL FIRE DEPARTMENT 12,678,568 13,267,161 13,805,103 13,899,779 14,518,221 124 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Dept 25-27 - FIRE DEPARTMENT - ADMINISTRATION PERSONNEL 100-25-27-41100 WAGES - FULL-TIME 446,915 475,773 544,326 544,326 556,893 100-25-27-41200 WAGES - PART-TIME 8,067 100-25-27-41300 WAGES - OVERTIME 167 1,000 1,000 1,000 100-25-27-41500 CLOTHING ALLOWANCE 1,600 2,400 2,400 2,400 2,400 100-25-27-42100 EMPLOYER PORTION FICA 8,568 11,288 14,359 14,359 14,635 100-25-27-42200 EMPLOYER PORTION IMRF 7,791 8,929 9,015 9,015 8,979 100-25-27-42300 EMPLOYER CONTRIB/PENSION 158,573 228,395 238,694 238,694 225,802 100-25-27-42500 EMPLOYEE HEALTH INSURANCE 77,862 106,383 87,377 87,377 82,072 100-25-27-42600 WORKER'S COMPENSATION/LIABILITY INSUR 12,632 18,246 PERSONNEL 713,941 859,648 897,171 897,171 891,781 COMMODITIES 100-25-27-52000 OFFICE SUPPLIES 1,548 2,073 3,000 1,356 3,000 100-25-27-53099 ACTIVITIES & SUPPLIES 743 898 1,000 1,423 1,500 100-25-27-54000 UNIFORMS/PROTECTIVE CLOTHING (34) 500 500 100-25-27-55000 FUEL, OIL, & LUBRICANTS 55,936 83,621 74,584 67,635 75,000 COMMODITIES 58,227 86,558 79,084 70,414 80,000 CONTRACTUAL SERVICES 100-25-27-61500 MAINTENANCE-EQUIPMENT 2,734 2,600 2,209 2,600 100-25-27-62099 PRINTED MATERIALS 1,302 3,875 1,000 1,159 1,200 100-25-27-62600 MEDICAL SERVICES 1,110 3,910 2,000 5,120 5,000 100-25-27-63800 CONTRACTED SERVICES 78,319 80,200 70,000 67,473 70,000 100-25-27-64500 TELEPHONE SERVICES 16,731 13,970 14,000 9,341 14,000 100-25-27-65100 FREIGHT & POSTAGE 506 480 350 413 500 100-25-27-66100 DUES & SUBSCRIPTIONS 658 1,921 2,500 110 2,500 100-25-27-66200 TRAINING/TRAVEL 27 1,000 52 1,000 CONTRACTUAL SERVICES 101,360 104,383 93,450 85,877 96,800 Totals for dept 25-27 - FIRE DEPARTMENT - ADMINISTRATION 873,528 1,050,589 1,069,705 1,053,462 1,068,581 125 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Dept 25-28 - FIRE DEPARTMENT - OPERATIONS PERSONNEL 100-25-28-41100 WAGES - FULL-TIME 4,814,223 5,335,608 5,743,955 5,743,955 6,064,359 100-25-28-41300 WAGES - OVERTIME 1,000,052 713,404 550,000 614,866 550,000 100-25-28-41400 LONGEVITY PAY 46,939 46,190 51,996 51,996 50,652 100-25-28-41500 CLOTHING ALLOWANCE 37,733 41,067 47,200 47,200 47,200 100-25-28-41600 WELLNESS BONUS 131,217 91,984 150,000 150,000 110,000 100-25-28-41650 EDUCATION BONUS 4,875 5,500 5,000 5,000 5,000 100-25-28-42100 EMPLOYER PORTION FICA 79,066 80,783 94,948 94,948 98,995 100-25-28-42300 EMPLOYER CONTRIB/PENSION 4,123,657 4,187,237 4,694,321 4,694,321 5,118,172 100-25-28-42500 EMPLOYEE HEALTH INSURANCE 1,082,223 1,123,457 1,021,647 1,021,647 1,043,162 100-25-28-42600 WORKER'S COMPENSATION/LIABILITY INSUR 164,504 237,617 PERSONNEL 11,484,489 11,862,847 12,359,067 12,423,933 13,087,540 COMMODITIES 100-25-28-51300 SUPPLIES/PARTS-BUILDINGS 24,276 14,497 9,000 26,264 10,000 100-25-28-51700 SUPPLIES/PARTS-VEHICLES 25,053 21,311 25,000 25,000 25,000 100-25-28-52000 OFFICE SUPPLIES 24 100-25-28-52500 JANITORIAL SUPPLIES 5,326 8,298 6,000 8,435 8,500 100-25-28-52800 FIREFIGHTING SUPPLIES & EQUIPMENT 14,210 52,684 60,000 56,004 60,000 100-25-28-52900 AMBULANCE SUPPLIES & EQUIPMENT 45,077 43,438 45,000 32,402 45,000 100-25-28-53300 SMALL TOOLS & EQUIPMENT 1,779 1,533 2,400 2,529 2,600 100-25-28-54000 UNIFORMS/PROTECTIVE CLOTHING 8,033 18,014 5,000 7,508 8,000 COMMODITIES 123,754 159,799 152,400 158,142 159,100 CONTRACTUAL SERVICES 100-25-28-61300 MAINTENANCE-BUILDINGS 19,846 17,837 50,111 50,270 50,000 100-25-28-61500 MAINTENANCE-EQUIPMENT 28,936 23,472 15,500 35,500 35,000 100-25-28-61700 MAINTENANCE-VEHICLES 87,223 91,927 75,000 75,000 15,000 100-25-28-62099 PRINTED MATERIALS 2,500 2,500 2,500 100-25-28-62600 MEDICAL SERVICES 25,259 28,313 37,000 40,000 50,000 100-25-28-64000 UTILITIES 4,314 6,243 3,320 4,436 4,500 100-25-28-65200 MARKETING ADS & PUBLIC INFO 2,500 100-25-28-66100 DUES & SUBSCRIPTIONS 3,544 1,920 3,500 6,536 6,500 100-25-28-66200 TRAINING/TRAVEL 27,290 23,614 35,000 50,000 35,000 CONTRACTUAL SERVICES 196,412 193,326 221,931 264,242 201,000 EQUIPMENT 100-25-28-86300 TELEPHONE & RADIO EQUIPMENT 385 600 2,000 2,000 EQUIPMENT 385 600 2,000 2,000 Totals for dept 25-28 - FIRE DEPARTMENT - OPERATIONS 11,805,040 12,216,572 12,735,398 12,846,317 13,449,640 126 | Page  PUBLIC WORKS DEPARTMENT ORGANIZATIONAL CHART CITY MANAGER DIRECTOR OF UTILITIES, ADMINISTRATIVE DIRECTOR OF STREETS, ENGINEERING & TRANSPORTATION ASSISTANT FACILITIES & AIRPORT UTILITY CITY TRANSIT STREET AIRPORT SUPERINTENDANT ENGINEER MANAGER SUPERINTENDANT MANAGER SKILLED ENGINEERING ASSISTANT TRANSIT SKILLED AIRPORT LINE SERVICE MAINTENANCE (2) INTERN (PT) MANAGER MAINTENANCE (5) (7 PT) CREW LEADER/ GRANTS CREW LEADER/ AIRPORT INTERN (PT) TECHNICIAN (2) ADMINISTRATOR (PT) TECHNICIAN (6) WATER SERVICE PUBLIC WORKS MAINTENANCE (5) MAINTENANCE (10) MAINTENANCE MAINTENANCE WORKER (PT) WORKER (6 PT) AIRPORT MAINTENANCE WORKER (PT) 127 | Page This page has been intentionally left blank. 128 | Page Public Works Department _____________________________________________________________________________ Department Introduction The Public Works Department is responsible for planning, operating, and maintaining public infrastructure and equipment necessary to sustain a safe, healthy, and attractive community. The Department maintains two operating divisions: The Division of Utilities and Transportation, and the Division of Streets, Facilities and Airport. The two department directors--the Director of Streets, Facilities & Airport and the Director of Utilities & Transportation--work under the general direction of the City Manager. The Department has an administrative assistant that handles all clerical duties within the operating divisions. The Public Works Department is somewhat unique in that it is funded through the General Fund, as well as several Enterprise and Special Revenue Funds. The Public Works Department performs a broad range of very visible activities in support of the City’s mission to “deliver high quality municipal services to those who live, work, learn in or visit our community”. Street Division The City of DeKalb’s Street Division is a dynamic team of 17 dedicated full-time employees working at very diverse occupations. Beyond their everyday duties, these individuals serve as the City’s vital third line of emergency responders. During the winter weather season, the Street Division shifts focus orchestrating a comprehensive snow removal program. This program includes clearing 340 lane miles of city streets and managing the removal of snow and ice from parking lots and alleys. The responsibility extends to the clearing of the Central Business District and arterial sidewalks. One distinctive feature of the Street Division is its in-house sign shop. Street staff fabricate, install, and repair all city street name signs and traffic signs within the community. The ability to operate an on-site sign shop is an economical alternative to contracted sign services. The Division keeps a watchful eye on the city’s traffic signal system, promptly remedying issues that inevitably arise. In addition, they oversee the maintenance and repair of intersections owned in whole or in part by other public entities including IDOT, the City of Sycamore, DeKalb Township, and the DeKalb County Highway Division. In some instances, the Division may recover its costs by billing these entities on a time and material basis, or it may “drop its plows” in reciprocity for services offered by these entities where overlapping jurisdictions occur. The Division’s role encompasses several core functions. These include the maintenance of pavement markings, conducting street repairs, street sweeping, maintaining and repairing storm sewer structures, forestry operations, right-of-way maintenance, caring for city-owned properties, and conducting the annual leaf collection program. 129 | Page With the Kishwaukee River winding throughout the City of DeKalb, the Street Division plays a pivotal role in maintaining the levee system. The Division Implements erosion control measures and spearheads flood prevention efforts while following guidelines set forth by the Army Corps of Engineers. Adding to their list of responsibilities, the Division also acts as the go-to traffic control liaison for special events, parades, and festivals. Their expertise ensures that these events run smoothly, keeping both participants and spectators safe. The Street Division of the City of DeKalb is a multifaceted team, tirelessly working to keep the city’s streets clear, safe, and well-maintained while also stepping up as emergency responders and event traffic managers when the need arises. 130| Page Utilities Division The roles of this Division are covered in Section Five, “Transportation Fund,” and Section Eight, “Water Fund”. Support Services Division The Support Services Division is comprised of 4 full-time employees who work tirelessly to keep the City’s vehicles and equipment running smoothly. Among them, three are dedicated fleet mechanic technicians, with one facilities worker. Additionally, during the busy season from June to early September, the Division brings on board 6 seasonal employees to assist with crucial tasks which include mowing operations, weeding, and maintaining an ascetically pleasing Central Business District. The Division shoulders a heavy responsibility maintaining, upgrading, and repairing the City’s fleet, equipment, and municipal buildings. The City of DeKalb relies on more than 250 vehicles and specialty equipment spread across various departments, including the Street Division, Utilities Division, Fire Department, Police Department, Code Compliance, and Airport. Daily duties involve everything from preventative maintenance and diagnostic work to repairs, specialized equipment maintenance, the scheduling of state-mandated inspections, and biannual safety lane testing. The Division is the hub for ensuring that our vehicles and equipment remain safe and operational. Furthermore, the Support Services Division plays a vital role in the acquisition of new vehicles. They assist in developing vehicle specification and capital plans, and oversee parts orders and inventory management. Given the aging state of some of the City’s fleet, the mechanics have adapted their approach from primarily preventative maintenance as in years past to a repair- oriented one, all with the purpose of keeping our City’s vehicles on the road. Beyond tending to the City’s fleet, the division also maintains over 20 municipal-owned buildings (including water treatment plants and airport hangars). Duties span preventative maintenance for HVAC systems, plumbing, grounds maintenance, contract management, inventory control, and planning for capital improvements. The behind-the-scenes work performed within the Division ensures that municipal-owned buildings remain safe and functional. The assistance of the Support Services Division extends to other Public Works functions, such as snow plowing, forestry operations, leaf collection, and any other tasks required to keep the City of DeKalb operating smoothly. The Division’s dedicated hands and minds help meet the needs of our community each day. 131 | Page Recent Accomplishments Public Works collaborated with the Fire Department to add a third full-time mechanic specializing in fire apparatus but assigned to the Street Division. By having a dedicated mechanic specializing in fire apparatus, the Fire Department can ensure that their vehicles are well-maintained and in good working condition. This approach has led to reduced downtime for these critical vehicles and has ensured they are ready for emergency responses. This additional mechanic also reduces the need for outsourcing repairs and maintenance to external contractors, which has become cost prohibitive. In FY 2023, the Street Division launched a new 50/50 tree planting program. It was well received by City residents and 41 new parkway trees were planted, exhausting the entire program budget. The program will be expanded in 2024 to build on recent success. The Street Division collaborated with NIU in a multitude of ways in 2023 to expand on the Communiversity concept within the City of DeKalb. The final “Huskie”-themed street name signs were fabricated and installed throughout the extended campus area and the bustling Central Business District. These signs proudly show NIU spirit, serve as a bridge between the city and the university, and a visual reminder of the growing partnership. On Annie Glidden Road, the Street Division and NIU’s paint department joined forces to craft a captivating NIU-themed entryway mural. As visitors approach campus, they are greeted by newly erected flagpoles installed by the Street Division proudly displaying NIU flags, followed by the welcoming mural. 132 | Page Also, in 2023, the Street Division helped enhance the Central Business District. Concrete replacement, lighting upgrades, and increased attention to vegetation were all aspects of the improvements. FY24 Initiatives In FY 2024, the Street Division will implement phase one of a five-year plan to upgrade the communication systems of the traffic signal program. The upgrade will introduce remote monitoring capabilities for signal technicians. Technicians will be able to keep a watchful eye on signal timings, anticipate and resolve conflicts, and perform necessary adjustments remotely. These actions will reduce downtime and increase efficiency providing steady traffic flow within the community. With a wave of retirements within the Street Division in recent years, new employees have on- boarded to fill the vacancies. FY 2024 will be a big year in training and safety practices. The investment in training within the division should enhance the success of the group as a whole. In FY 2024, The Street Division plans to build on the Urban Forest landscape of the City of DeKalb. With a successful 50/50 tree planting program already taking root, the Street Division will actively seek grants to enhance DeKalb’s cityscape. Pollinator gardens will also be a focal point in 2024, providing essential waypoints and a haven for butterflies and birds while providing a visual enhancement for the residents of DeKalb. 133 | Page 134 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET PUBLIC WORKS PERSONNEL 41100 WAGES - FULL-TIME 1,157,624 1,253,854 1,402,813 1,402,813 1,549,353 41200 WAGES - PART-TIME 26,007 36,685 76,344 76,344 74,718 41300 WAGES - OVERTIME 136,075 136,002 200,000 200,000 230,000 41400 LONGEVITY PAY 14,521 13,592 14,112 14,112 12,624 41500 CLOTHING ALLOWANCE 6,964 7,750 8,521 8,521 9,241 42100 EMPLOYER PORTION FICA 96,375 103,811 130,188 130,188 143,509 42200 EMPLOYER PORTION IMRF 186,987 174,022 158,242 140,695 153,214 42500 EMPLOYEE HEALTH INSURANCE 319,428 359,933 355,799 355,799 358,227 42600 WORKER'S COMP/LIABILITY INSURANC 40,243 58,129 PERSONNEL 1,984,224 2,143,778 2,346,019 2,328,472 2,530,886 COMMODITIES 51300 SUPPLIES/PARTS-BUILDINGS 21,326 20,253 23,000 23,500 25,500 51410 SUPPLIES/PARTS-STREETS 10,998 12,000 20,000 25,000 51430 SUPPLIES/PARTS-STORM SEWERS 10,132 23,475 25,000 20,000 25,000 51500 SUPPLIES/PARTS-EQUIPMENT 93 4,011 6,500 1,500 1,500 51700 SUPPLIES/PARTS-VEHICLES 77,454 102,850 90,000 90,000 100,000 51997 STREETLIGHTS, PARTS 24,269 14,026 17,500 16,500 17,500 51998 TRAFFIC & STREET SIGNS 302 500 500 750 52000 OFFICE SUPPLIES 220 740 800 750 800 52500 JANITORIAL SUPPLIES 7,415 8,638 11,360 9,650 10,650 53100 ICE/SNOW CONTROL SUPPLIES 705 1,553 3,000 3,000 3,710 53300 SMALL TOOLS & EQUIPMENT 11,004 11,172 10,000 9,500 11,500 54000 UNIFORMS/PROTECTIVE CLOTHING 1,297 435 1,000 55000 FUEL, OIL, & LUBRICANTS 97,387 133,170 150,000 135,000 150,000 COMMODITIES 251,302 331,623 349,660 330,900 371,910 CONTRACTUAL SERVICES 61100 MAINTENANCE-GROUNDS 11,998 10,218 29,200 23,800 29,000 61300 MAINTENANCE-BUILDINGS 64,455 42,306 45,500 49,000 50,500 61400 MAINTENANCE-INFRASTRUCTURE 21,876 17,308 30,000 9,000 30,000 61420 MAINTENANCE-STREETS 13,725 11,500 11,500 13,000 61430 MAINTENANCE-STORM SEWERS 422 20,000 12,500 20,000 61450 MAINTENANCE-SIDEWALKS (50/50) 15,000 5,000 12,500 61500 MAINTENANCE-EQUIPMENT 4,467 6,678 8,000 7,500 8,000 61599 WARNING SIRENS 6,960 7,500 7,440 7,800 61700 MAINTENANCE-VEHICLES 91,682 73,958 85,000 72,000 85,000 62099 PRINTED MATERIALS 608 1,186 275 150 275 62300 ARCHITECT/ENGINEERING SERVICES 1,000 63100 FORESTRY SERVICES 113,227 139,339 100,000 100,000 135,000 63150 50/50 TREE PLANTING 7,500 7,500 10,000 63400 SNOW REMOVAL SERVICES 76,388 27,338 63600 WEATHER SERVICES 3,456 3,660 3,800 3,800 3,800 63800 CONTRACTED SERVICES 67,097 87,565 105,000 96,700 118,450 64000 UTILITIES 13,234 13,174 17,383 10,500 13,200 64100 ELECTRIC SERVICES 28,294 26,002 50,000 45,000 50,000 64500 TELEPHONE SERVICES 9,313 7,856 8,100 8,100 8,100 65100 FREIGHT & POSTAGE 173 474 65200 MARKETING ADS & PUBLIC INFO 482 55 300 150 300 65400 TAXES, LICENSES, & FEES 13,304 1,409 12,089 5,500 10,500 65500 RENTAL-BLDG & EQUIP 1,138 11,092 1,500 750 2,000 66100 DUES & SUBSCRIPTIONS 940 2,256 585 1,135 1,300 66200 TRAINING/TRAVEL 4,718 674 9,750 6,750 9,750 69700 CENTRAL BUSINESS DISTRICT PROJECTS 15,731 8,488 15,000 15,000 20,000 CONTRACTUAL SERVICES 550,541 495,183 582,982 498,775 638,475 EQUIPMENT 86000 EQUIPMENT 803 53,607 65,000 64,654 66,000 EQUIPMENT 803 53,607 65,000 64,654 66,000 TOTAL PUBLIC WORKS 2,786,870 3,024,191 3,343,661 3,222,801 3,607,271 135 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Dept 30-31 - PUBLIC WORKS - ADMINISTRATION PERSONNEL 100-30-31-41100 WAGES - FULL-TIME 176,329 194,991 199,864 199,864 204,858 100-30-31-42100 EMPLOYER PORTION FICA 12,580 14,082 15,290 15,290 15,671 100-30-31-42200 EMPLOYER PORTION IMRF 25,669 24,110 34,816 17,269 17,515 100-30-31-42500 EMPLOYEE HEALTH INSURANCE 39,095 41,746 31,729 31,729 32,509 100-30-31-42600 WORKER'S COMPENSATION/LIABILITY INSUR 1,244 1,797 PERSONNEL 254,917 276,726 281,699 264,152 270,553 COMMODITIES 100-30-31-52000 OFFICE SUPPLIES 300 250 300 COMMODITIES 300 250 300 CONTRACTUAL SERVICES 100-30-31-64500 TELEPHONE SERVICES 8,719 7,263 7,500 7,500 7,500 100-30-31-66200 TRAINING/TRAVEL 750 750 750 CONTRACTUAL SERVICES 8,719 7,263 8,250 8,250 8,250 Totals for dept 30-31 - PUBLIC WORKS - ADMINISTRATION 263,636 283,989 290,249 272,652 279,103 136 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Dept 30-32 - PUBLIC WORKS - SUPPORT SERVICES PERSONNEL 100-30-32-41100 WAGES - FULL-TIME 122,159 134,573 141,052 141,052 196,067 100-30-32-41200 WAGES - PART-TIME 23,334 49,500 49,500 47,201 100-30-32-41300 WAGES - OVERTIME 22,595 15,982 35,000 35,000 45,000 100-30-32-41400 LONGEVITY PAY 1,476 1,548 1,656 1,656 1,728 100-30-32-41500 CLOTHING ALLOWANCE 1,080 1,080 1,080 1,080 1,440 100-30-32-42100 EMPLOYER PORTION FICA 10,429 12,575 17,464 17,464 22,295 100-30-32-42200 EMPLOYER PORTION IMRF 21,268 18,689 15,478 15,478 20,759 100-30-32-42500 EMPLOYEE HEALTH INSURANCE 40,156 40,172 39,134 39,134 50,100 100-30-32-42600 WORKER'S COMPENSATION/LIABILITY INSUR 2,788 4,027 PERSONNEL 221,951 251,980 300,364 300,364 384,590 COMMODITIES 100-30-32-51300 SUPPLIES/PARTS-BUILDINGS 13,946 15,390 18,000 17,000 18,000 100-30-32-52500 JANITORIAL SUPPLIES 5,849 6,751 9,710 8,000 9,000 100-30-32-53100 ICE/SNOW CONTROL SUPPLIES 705 1,553 3,000 3,000 3,710 100-30-32-53300 SMALL TOOLS & EQUIPMENT 727 1,427 1,000 1,000 1,000 100-30-32-54000 UNIFORMS/PROTECTIVE CLOTHING 137 100-30-32-55000 FUEL, OIL, & LUBRICANTS 1,040 931 COMMODITIES 22,267 26,189 31,710 29,000 31,710 CONTRACTUAL SERVICES 100-30-32-61100 MAINTENANCE-GROUNDS 4,057 3,375 13,200 10,800 13,000 100-30-32-61300 MAINTENANCE-BUILDINGS 49,949 32,684 35,000 40,000 40,000 100-30-32-61500 MAINTENANCE-EQUIPMENT 1,114 1,500 1,500 1,500 100-30-32-61599 WARNING SIRENS 6,960 7,500 7,440 7,800 100-30-32-63800 CONTRACTED SERVICES 67,097 87,565 105,000 96,700 118,450 100-30-32-64000 UTILITIES 13,234 13,174 17,383 10,500 13,200 100-30-32-64100 ELECTRIC SERVICES 28,294 25,997 50,000 45,000 50,000 100-30-32-65400 TAXES, LICENSES, & FEES 13,214 1,094 11,589 5,000 10,000 100-30-32-66200 TRAINING/TRAVEL 450 2,500 2,500 2,500 CONTRACTUAL SERVICES 184,369 163,889 243,672 219,440 256,450 Totals for dept 30-32 - PUBLIC WORKS - SUPPORT SERVICES 428,587 442,058 575,746 548,804 672,750 137 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Dept 30-33 - PUBLIC WORKS - STREET DIVISION PERSONNEL 100-30-33-41100 WAGES - FULL-TIME 787,837 845,448 981,178 981,178 1,060,022 100-30-33-41200 WAGES - PART-TIME 21,799 3,854 11,359 11,359 11,645 100-30-33-41300 WAGES - OVERTIME 113,480 120,020 165,000 165,000 185,000 100-30-33-41400 LONGEVITY PAY 13,045 12,044 12,456 12,456 10,896 100-30-33-41500 CLOTHING ALLOWANCE 5,884 6,670 7,441 7,441 7,801 100-30-33-42100 EMPLOYER PORTION FICA 67,782 70,604 90,074 90,074 97,566 100-30-33-42200 EMPLOYER PORTION IMRF 129,670 121,562 100,917 100,917 107,381 100-30-33-42500 EMPLOYEE HEALTH INSURANCE 233,197 270,997 278,035 278,035 268,751 100-30-33-42600 WORKER'S COMPENSATION/LIABILITY INSUR 36,211 52,305 PERSONNEL 1,408,905 1,503,504 1,646,460 1,646,460 1,749,062 COMMODITIES 100-30-33-51300 SUPPLIES/PARTS-BUILDINGS 7,380 4,863 5,000 6,500 7,500 100-30-33-51410 SUPPLIES/PARTS-STREETS 10,998 12,000 20,000 25,000 100-30-33-51430 SUPPLIES/PARTS-STORM SEWERS 10,132 23,475 25,000 20,000 25,000 100-30-33-51500 SUPPLIES/PARTS-EQUIPMENT 93 4,011 6,500 1,500 1,500 100-30-33-51700 SUPPLIES/PARTS-VEHICLES 77,454 102,850 90,000 90,000 100,000 100-30-33-51997 STREETLIGHTS, PARTS 24,269 14,026 17,500 16,500 17,500 100-30-33-51998 TRAFFIC & STREET SIGNS 302 500 500 750 100-30-33-52000 OFFICE SUPPLIES 220 740 500 500 500 100-30-33-52500 JANITORIAL SUPPLIES 1,566 1,887 1,650 1,650 1,650 100-30-33-53300 SMALL TOOLS & EQUIPMENT 10,277 9,745 9,000 8,500 10,500 100-30-33-54000 UNIFORMS/PROTECTIVE CLOTHING 1,297 298 1,000 100-30-33-55000 FUEL, OIL, & LUBRICANTS 96,347 132,239 150,000 135,000 150,000 COMMODITIES 229,035 305,434 317,650 301,650 339,900 CONTRACTUAL SERVICES 100-30-33-61100 MAINTENANCE-GROUNDS 7,941 6,843 16,000 13,000 16,000 100-30-33-61300 MAINTENANCE-BUILDINGS 14,506 9,622 10,500 9,000 10,500 100-30-33-61400 MAINTENANCE-INFRASTRUCTURE 21,876 17,308 30,000 9,000 30,000 100-30-33-61420 MAINTENANCE-STREETS 13,725 11,500 11,500 13,000 100-30-33-61430 MAINTENANCE-STORM SEWERS 422 20,000 12,500 20,000 100-30-33-61450 MAINTENANCE-SIDEWALKS (50/50) 15,000 5,000 12,500 100-30-33-61500 MAINTENANCE-EQUIPMENT 3,353 6,678 6,500 6,000 6,500 100-30-33-61700 MAINTENANCE-VEHICLES 91,682 73,958 85,000 72,000 85,000 100-30-33-62099 PRINTED MATERIALS 608 1,186 275 150 275 100-30-33-63100 FORESTRY SERVICES 113,227 139,339 100,000 100,000 135,000 100-30-33-63150 50/50 TREE PLANTING 7,500 7,500 10,000 100-30-33-63400 SNOW REMOVAL SERVICES 76,388 27,338 100-30-33-63600 WEATHER SERVICES 3,456 3,660 3,800 3,800 3,800 100-30-33-64100 ELECTRIC SERVICES 5 100-30-33-65100 FREIGHT & POSTAGE 173 474 100-30-33-65200 MARKETING ADS & PUBLIC INFO 482 55 300 150 300 100-30-33-65400 TAXES, LICENSES, & FEES 90 315 500 500 500 100-30-33-65500 RENTAL-BLDG & EQUIP 1,138 11,092 1,500 750 2,000 100-30-33-66100 DUES & SUBSCRIPTIONS 670 1,978 300 850 1,000 100-30-33-66200 TRAINING/TRAVEL 4,268 674 6,000 3,000 6,000 100-30-33-69700 CENTRAL BUSINESS DISTRICT PROJECTS 15,731 8,488 15,000 15,000 20,000 CONTRACTUAL SERVICES 355,589 323,160 329,675 269,700 372,375 EQUIPMENT 100-30-33-86000 EQUIPMENT 803 53,607 65,000 64,654 66,000 EQUIPMENT 803 53,607 65,000 64,654 66,000 Totals for dept 30-33 - PUBLIC WORKS - STREET DIVISION 1,994,332 2,185,705 2,358,785 2,282,464 2,527,337 138 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Dept 30-35 - PUBLIC WORKS - ENGINEERING PERSONNEL 100-30-35-41100 WAGES - FULL-TIME 71,299 78,842 80,719 80,719 88,406 100-30-35-41200 WAGES - PART-TIME 4,208 9,497 15,485 15,485 15,872 100-30-35-42100 EMPLOYER PORTION FICA 5,584 6,550 7,360 7,360 7,977 100-30-35-42200 EMPLOYER PORTION IMRF 10,380 9,661 7,031 7,031 7,559 100-30-35-42500 EMPLOYEE HEALTH INSURANCE 6,980 7,018 6,901 6,901 6,867 PERSONNEL 98,451 111,568 117,496 117,496 126,681 CONTRACTUAL SERVICES 100-30-35-62300 ARCHITECT/ENGINEERING SERVICES 1,000 100-30-35-64500 TELEPHONE SERVICES 594 593 600 600 600 100-30-35-66100 DUES & SUBSCRIPTIONS 270 278 285 285 300 100-30-35-66200 TRAINING/TRAVEL 500 500 500 CONTRACTUAL SERVICES 1,864 871 1,385 1,385 1,400 Totals for dept 30-35 - PUBLIC WORKS - ENGINEERING 100,315 112,439 118,881 118,881 128,081 139 | Page This page has been intentionally left blank. 140 | Page  COMMUNITY DEVELOPMENT ORGANIZATIONAL CHART CITY MANAGER CHIEF BUILDING COMMUNITY SERVICES PLANNING DIRECTOR OFFICIAL COORDINATOR ADMINISTRATIVE CODE COMPLIANCE ASSOCIATE COORDINATOR BUILDING INSPECTOR II BUILDING INSPECTOR I 141 | Page This page has been intentionally left blank. 142 | Page Community Development Department _____________________________________________________________________________ Department Introduction The Community Development Department is responsible for the planning, economic development, Community Development Block Grant (CDBG), Human Services Grant Program, Housing Rehabilitation Assistance Program, Neighborhood Support programs, zoning review and entitlement, construction permitting, and code enforcement functions within the City government. The Department promotes responsible development and the sound maintenance of properties in the City, supporting the success of local business and promoting the community to new businesses and residents. Programming includes long range planning, the attraction and retention of quality businesses, efficient development review processes, community services and the enforcement of locally-adopted zoning, building, and property maintenance codes. The Department’s mission is to be responsive to residents and businesses and their development concerns and needs, and to maintain a positive business climate that brings confidence to investors, resulting in an expanding, diversified and balanced tax base, thereby lessening the tax burden on property owners. The Department’s offices are often the first point of contact for new and existing businesses, developers, and contractors. To assist these interested parties, the Department makes a significant effort to remain informed about local resources. The Department also coordinates with other City departments and governmental entities to review and approve development projects to ensure high quality developments are delivered in a responsible and timely manner. FY2023 Accomplishments Kraft Heinz: On August 8, 2022, the City Council approved the annexation, rezoning and preliminary development plan for a 160-acre site at the northwest corner of Peace Road and Gurler Road for a food distribution, packaging, and storage company. The proposed development was originally called Project Wildcat and then Project Supernova. On July 13, 2023, it was officially announced that Kraft Heinz would be constructing a 775,000 square foot, $400 million dollar building that will be one of the largest automated distribution facilities in North America. Site work commenced on the project in the summer of 2023 with the building expected to be fully operational in 2025. 143 | Page 144 | Page Meta (Facebook) Data Center: In June 2020, it was announced that Meta would be constructing a 970,000 sq. ft. data center on 505 acres of property generally located east of Rt. 23 and south of Gurler Road in the I-88 Corridor. Since then, Meta has committed to additional phases. During the summer of 2023, a final occupancy permit was issued for Building 2. Construction continues on Buildings 3, 5 & 6 with final inspections in late 2023 or early 2024 anticipated on Building 3. There are routinely over 1,000 construction workers on the site each weekday and when the buildout is complete there will be approximately 150 permanent jobs. In addition to jobs, Meta DeKalb will be 100% powered by renewable energy and will be LEED Gold certified upon completion. 145 | Page Goldin Property: In September 2023, the City Council approved the annexation, rezoning and concept plan for future industrial development along Gurler Road. The 130-acre property is located at the northeast corner of Peace Road and Gurler Road and is owned by the Goldin Family. The conceptual development plan shows four (4) buildings totaling approximately 1,643,000 square feet to accommodate manufacturing, packaging, distribution or warehouse uses. There is no-end user proposed at this time. The intent of the property owner was to get the property annexed and zoned with utilities extended in order to better market and accommodate a potential end-user. 902 Peace Road – Hotel: In May, 2023 the City Council approved the rezoning of a 2.5-acre site at 902 Peace Road to the “PD-I” Planned Development Industrial District to accommodate the development of a 4-story 121 room Marriott-branded hotel. Sixty rooms will be branded as Fairfield Inn and Suites by Marriott (standard stay) and the other 61 rooms will be branded as TownePlace Suites by Marriott (extended stay). The developer is Pramit Patel of EO5 Hotels who also developed the Hampton Inn and Home2 Suites Hotels along S. Annie Glidden Road. The new hotel is planned to open in 2025. 146 | Page Agora Tower: In the summer of 2020 construction started on a four-story mixed-use development at the northeast corner of E. Locust Street and N. 4th Street. The building features 94 one and two-bedroom apartment units and approximately 12,000 sq. ft. of commercial space on the ground floor. Construction was completed during 2023. The total project cost was about $13.8 million with $3 million in TIF #3 assistance provided by the City. A new restaurant, The Grove Tavern, opened in the spring of 2023. Johann DeKalb Suites - The City Council approved the rezoning of the former DeKalb Municipal Building site along S. 4th Street in October 2020 to accommodate a 57-unit upscale residential development in three, two-story buildings. There will be a total of 49 one-bedroom units and eight two-bedroom units in the project. The purchase offer for the City’s 2.5-acre property was $600,000 from Pappas Development. A TIF funding request of $750,000 was made to cover demolition, underground utilities, sidewalk improvements, and other TIF-eligible costs. Demolition of the former Municipal Building was completed in the fall of 2021 and construction began in the summer of 2022. By the late fall of 2023, the first building was being insulated and dry-walled and the two remaining buildings along S. Fourth Street are “shelled” and weather- tight. 147 | Page 2239 Sycamore Road: The City Council approved the rezoning of 2239 Sycamore Road in April 2023 in order to allow Midwest Tent & Events to establish a tent rental showroom, offices, and warehouse in the existing building on the site. The building is about 30,000 sq. ft. and once contained the NIU Art Annex. The building was gutted and over $200,000 was spent on building improvements including new electrical, LED lighting, new interior loading dock, HVAC system, and plumbing. 148 | Page First United Methodist Church: In July 2020, the City Council approved an annexation and development agreement to allow for a new DeKalb First United Methodist Church on 16 acres located along the west side of N. Annie Glidden Road across from the DeKalb County Health Facility Campus. A groundbreaking for the church occurred in July 2022 and construction was completed in June 2023. The church building is 10,900 sq. ft. and includes a 240-seat sanctuary, classrooms, coffee/lounge area, administrative offices, and a kitchen. Excelleaf Dispensary: In February 2023 the City Council approved a special use permit for a cannabis dispensary at 305 E. Locust Street. The 3,700 sq. ft. dispensary is called Excelleaf Dispensary and opened in November of 2023. 149 | Page DeKalb County Community Gardens: In September 2023 the City approved a rezoning request from DeKalb County Community Gardens for an 8-acre site along N. Annie Glidden Road to accommodate a community health education and food center, community building, greenhouses and accessory uses. Other Planning, Building and Zoning Activity: Other zoning, building and development activity in 2023 included the following: • Approval of a special use permit for a retail tobacco store at 901 Lucinda Avenue. • Approval of text amendments to the UDO relating to the parking regulations including design, locational requirements, and minimum parking space requirements as well as setbacks, landscaping, and other miscellaneous amendments. • Approval of special use permits and final plats for two duplex units at 1104-1106 Lewis Street and 1304- 1306 Chestnut Street to create a lot line down the common party wall. The approvals will allow the ownership and occupancy of each separate unit, which will be a positive influence on their neighborhoods. • The City worked with the Kishwaukee Water Reclamation District to establish a new zoning district called the “GS” Government Sanitary District. The new zoning classification will allow property owned by KWRD to be treated as public/institutionally-zoned property similar to NIU. • Approval of text amendments to the UDO to add “adult-use cannabis craft grower” as a special use in the “LI” Light Industrial and “HI” Heavy Industrial Districts. The text amendments will allow cannabis craft growers to locate in the City, which will add to the tax base and provide for the health and well-being of the community. 150 | Page  • Approval of the rezoning of 21 parcels owned by Nehring Electrical Works to the “PD-I” Planned Development – Industrial District. The rezoning covers approximately 27 acres and will provide flexibility for Nehring to utilize the properties in a manner that fits their current and future business needs and provides an economic benefit to the City. • This past year, the Planning and Zoning Commission approved variances for a driveway expansion at 3353 Basswood Lane, a fence at 801 S. 8th Street and a detached garage at 417 S. 6th Street. Building Permit Activity: Building activity in the City continues to be very strong. The total number of permits is tracking at a rate similar to 2022 which ended with 1,531 permits. The Department saw another 20% increase for non-residential alterations. The valuation of permitted work as of September 15 was over $117,000,000. Building Code Compliance: From January through September, 15,417 code compliance cases have been closed while 488 cases were opened. The new software installed in 2022 has allowed for better tracking, filing, and reporting of cases. Personnel Changes and Additions: A newly-hired Administrative Associate started with the department in October 2023. Industrial Expansion Projects: Nehring Electrical Works is constructing a 14,500 sq ft addition to their E. Locust Street facility for warehouse storage with a $1,000,000 construction valuation. The DeKalb Forge at 1832 Pleasant St. completed a 7,700 sq ft. expansion to their existing facility. Solar Array Projects: Kohl’s located at 2070 Sycamore Road installed a solar array on the roof of their store that included 1077 panels and five inverters. The estimated construction cost was $470,000. A school supply store called Write Stuff located at 733 Enterprise Avenue is also installing an array on their roof with 90 panels and two inverters. The estimated construction cost is $110,000. University Village Collaborative: The Family Service Agency continued to lead the University Village Collaborative. In 2023 the Collaborative had several successful events including assisting the NIU STEAM Program at the STEAM and DREAM Fest, two Domestic violence/sexual assault presentations by Safe Passage, a parents’ night hosted by BLAC Inc., and an employment fair with 20+ employers. The Collaborative continues to involve the local social service providers in expanding services to the residents of University Village. Making the connection with residents has been difficult; however, with more routine contacts and a more regular presence the providers will hopefully build a steady following. Strong Communities Program: Through funding by the Illinois Housing Development Authority, the City was able to demolish three condemned or abandoned residential properties. The City has several additional properties screened for eligibility. Two of the properties will be part of Elder Care Services’ plan to convert adjoining properties into additional parking and a garden space for their clients. Annie Glidden North Revitalization: As a follow-up to the 2022 demolition of the commercial building on the Hunter Hillcrest Property at the northwest corner of Hilcrest Drive and Blackhawk Road, the City solicited and received two proposals for the redevelopment of the property: DeKalb County Community Gardens (DCCG) and Northern Illinois University. After several months 151 | Page of public discussion and negotiation, DCCG withdrew their proposal and the City Council resolved to work with the NIU Foundation and NIU in the development of a Center for Greek Life at the corner of Blackhawk and W, Hillcrest. DCCG chose to locate on a property on N. Annie Glidden Road which better met their space needs and is still in the AGN neighborhood. Housing Rehabilitation: CDBG also funds improvements to single-family houses that are owned and occupied by low-income residents. Additionally, the City is coordinating with the Kishwaukee Water Reclamation District on an “Orangeburg” lateral sewer pipe replacement program. There are a number of applications pending as there is outstanding documentation that is needed. The staff continues to work with homeowners in gathering information that will hopefully lead to the assistance that is needed. Community Services: The City continued to administer Community Development Block Grant (CDBG) entitlement funds during FY 2023. During the planning process for the 2023 Annual Action Plan, all programs were evaluated for need, efficiency, and utilization to determine the most efficient use of unspent funding and carryover funds from previous years. In order to address infrastructure enhancements in low-to-moderate-income areas of the City, funding from previously discontinued programs and unused funds from prior years were reallocated to the Public Facilities Program. Public Facilities work included resurfacing Lucerne Lane, creating a cul- de-sac and resurfacing Kimberly Drive, resurfacing Greenbrier Road and additional ADA improvements on several streets. Seventeen local agencies that assist the elderly, survivors of domestic violence, at-risk adolescents, people with disabilities, the homeless, and low-income individuals will receive a total of $200,000 in the 2023 Human Services funding. Additional funding in the amount of $50,000 was awarded to seven grantees who had not previously received assistance. Three of the new beneficiaries were new non-profit organizations created to help underserved populations in the City. After a number of fires that displaced City residents, a pilot program was continued to provide personal follow-up or referral to any needed services. Households received emotional support, information, and referrals to community resources. The Community Services Coordinator worked with the American Red Cross and the Family Service Agency to develop a direct referral protocol that prioritizes these residents for immediate service. Additionally, the Community Services Coordinator fielded numerous calls in 2023 from residents with a variety of needs. FY2024 Initiatives Economic Development: Continue aggressive business attraction efforts to promote properties within the community for new development or redevelopment that follow the recommendations of the Comprehensive Plan and Sub-Area Plans and the City’s goals and policies. 2022 Comprehensive Plan Implementation: Continue to implement the goals and objectives of the 2022 Plan and pursue amendments to the UDO or other policies as needed. Manufacturing/Warehouse/Distribution/High-Tech Facilities: Promote the development of large-scale manufacturing, distribution, and high-tech facilities that are transformative, which will bring in career jobs and broaden and diversify the property tax base. 152 | Page Downtown Redevelopment: Encourage continued development and redevelopment in the downtown area by focusing on projects that are compatible with the 2022 Comprehensive Plan and various Downtown Plans, and provide a destination feel for existing and future businesses. TIF Funding: Focus on TIF #3 for future private redevelopment projects. Award TIF funding for projects that meet the City Council’s established protocols and criteria. Continue to fund the Architectural Improvement Program. For similar projects outside the TIF District, $100,000 in general revenues have been budgeted in the Capital Projects Fund (Fund 400). Annie Glidden North Revitalization: Continue to identify resources that support the recommendations of the Annie Glidden North Revitalization Plan to stabilize the northwest side of the community. Continue to support revitalization efforts in the AGN Neighborhood including targeted projects and services using CDBG funds. Continue to support resident outreach and expansion of services at University Village. Redevelopment of the Northwest corner of Blackhawk Road and W. Hillcrest Drive: Work with NIU stakeholders to launch the first phase of the redevelopment of the property at the northwest corner of Hillcrest Drive and Blackhawk Road. South 4th Street Sub-Area Study: Initiate a corridor plan for S. 4th Street between Taylor Street and Fairview Drive. The plan will look at the future commercial needs of the corridor as well as roadway improvements to ensure its compatibility with the surrounding neighborhoods. Community Rehabilitation Services: Continue the Strong Communities Program with an increased budget from the Illinois Housing Development Authority. Introduce the Illinois Homeowner Assistance Fund Home Repair Program which grants up to $60,000 per home to make necessary repairs as a result of misfortune that may have arisen during the Corona Virus Pandemic. This 33-month grant would be impactful to low-to-moderate income neighborhoods. Digital Equity Program: Move forward with the Digital Equity Program for University Village in collaboration with Meta. This initiative will promote internet connectivity to this neighborhood and will have far reaching benefits for the residents. By reducing the digital divide, greater digital equity opens the advantages of educational and employment opportunities to low-income families. Human Services: Extend invitations to more local non-profit organizations for both Community Development Block Grant and Human Services funding. An additional $25,000 in Human Services Funding will allow more local providers to benefit. Both programs are geared to assist disadvantaged populations which are not currently being assisted by any existing programs. The City will continue to increase engagement in matters of diversity, equity, and inclusion of people of color and other disadvantaged populations. Opportunity Zone: Invite opportunities to collaborate with local partners and outside investors to attract investments in the City’s designated Opportunity Zone. Building Permit Fee Review: Review the current permit fee structure and adjust based upon comparable communities, ensuring staff costs are adequately covered. 153 | Page Building Board of Review: A full review of the 2021 ICC Codes is planned by the Building Code Review Board to implement the most current ICC code series across all construction phases. Building & Code Compliance Training: Increase the training for Division staff to stay current with new building codes and practices from the State of Illinois and the International Code Council. Continue to cross-train inspectors and staff to keep up with department demand. 154 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET COMMUNITY DEVELOPMENT PERSONNEL 41100 WAGES - FULL-TIME 517,438 618,690 612,500 612,500 635,083 41300 WAGES - OVERTIME 334 1,475 7,200 7,200 7,200 41500 CLOTHING ALLOWANCE 577 1,477 1,800 1,800 1,800 42100 EMPLOYER PORTION FICA 36,886 44,683 47,545 47,545 49,272 42200 EMPLOYER PORTION IMRF 75,301 73,710 53,976 53,976 54,915 42500 EMPLOYEE HEALTH INSURANCE 120,339 151,563 120,945 120,945 134,564 42600 WORKER'S COMPENSATION/LIABILITY INSUR 1,942 2,704 PERSONNEL 752,817 894,302 843,966 843,966 882,834 COMMODITIES 51000 BOARDS & COMMISSIONS 2,675 525 51700 SUPPLIES/PARTS-VEHICLES 379 1,000 800 1,000 52000 OFFICE SUPPLIES 316 365 400 400 400 53300 SMALL TOOLS & EQUIPMENT 19 152 200 150 750 54000 UNIFORMS/PROTECTIVE CLOTHING 274 100 100 200 55000 FUEL, OIL, & LUBRICANTS 1,824 2,969 3,500 3,100 3,500 COMMODITIES 4,834 4,664 5,200 4,550 5,850 CONTRACTUAL SERVICES 61500 MAINTENANCE-EQUIPMENT 8 250 100 200 61700 MAINTENANCE-VEHICLES 2,003 111 2,000 1,000 1,000 62099 PRINTED MATERIALS 316 400 400 600 62100 FINANCIAL SERVICES 1,000 750 1,000 62700 HUMAN & SOCIAL SERVICES 150,000 200,000 200,000 200,000 225,000 63000 SPECIAL EVENT SERVICES 66 63300 NUISANCE ABATEMENT SERVICES (1,135) 4,929 9,000 7,000 10,000 63700 DEVELOPMENTAL SERVICES 105,000 105,000 140,000 140,000 140,000 63750 DEMOLITION SERVICES 50,000 50,000 70,000 63800 CONTRACTED SERVICES 53,891 20,674 35,350 15,000 20,000 64500 TELEPHONE SERVICES 3,827 3,288 5,300 3,600 5,300 65100 FREIGHT & POSTAGE 25 175 75 175 65200 MARKETING ADS & PUBLIC INFO 145 500 250 500 65300 LEGAL EXPENSES & NOTICES 2,662 724 750 400 600 66100 DUES & SUBSCRIPTIONS 1,147 1,458 1,600 1,500 1,980 66200 TRAINING/TRAVEL 488 1,326 4,860 4,040 4,860 CONTRACTUAL SERVICES 318,053 337,900 451,185 424,115 481,215 EQUIPMENT 86200 OFFICE FURNITURE & EQUIPMENT 1,227 1,200 600 1,300 EQUIPMENT 1,227 1,200 600 1,300 TOTAL COMMUNITY DEVELOPMENT - EXPENDITURES 1,075,704 1,238,093 1,301,551 1,273,231 1,371,199 155 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Dept 40-41 - COMMUNITY DEV. - ADMINISTRATION PERSONNEL 100-40-41-41100 WAGES - FULL-TIME 188,768 261,002 242,041 242,041 242,708 100-40-41-41300 WAGES - OVERTIME 634 700 700 700 100-40-41-42100 EMPLOYER PORTION FICA 14,168 19,528 18,570 18,570 18,620 100-40-41-42200 EMPLOYER PORTION IMRF 27,486 32,070 21,143 21,143 20,811 100-40-41-42500 EMPLOYEE HEALTH INSURANCE 20,540 19,978 19,401 19,401 32,720 100-40-41-42600 WORKER'S COMPENSATION/LIABILITY INSUR 1,165 1,582 PERSONNEL 252,127 334,794 301,855 301,855 315,559 COMMODITIES 100-40-41-51000 BOARDS & COMMISSIONS 2,675 525 100-40-41-52000 OFFICE SUPPLIES 141 365 300 300 300 COMMODITIES 2,816 890 300 300 300 CONTRACTUAL SERVICES 100-40-41-62099 PRINTED MATERIALS 118 100 100 100 100-40-41-62700 HUMAN & SOCIAL SERVICES 150,000 200,000 200,000 200,000 225,000 100-40-41-63000 SPECIAL EVENT SERVICES 66 100-40-41-63700 DEVELOPMENTAL SERVICES 105,000 105,000 140,000 140,000 140,000 100-40-41-63750 DEMOLITION SERVICES 50,000 50,000 70,000 100-40-41-63800 CONTRACTED SERVICES 350 100-40-41-64500 TELEPHONE SERVICES 594 593 600 600 600 100-40-41-65100 FREIGHT & POSTAGE 25 75 75 75 100-40-41-65200 MARKETING ADS & PUBLIC INFO 145 500 250 500 100-40-41-65300 LEGAL EXPENSES & NOTICES 2,662 724 750 400 600 100-40-41-66100 DUES & SUBSCRIPTIONS 799 1,423 1,500 1,500 1,580 100-40-41-66200 TRAINING/TRAVEL 440 911 860 840 860 CONTRACTUAL SERVICES 259,665 308,835 394,735 393,765 439,315 EQUIPMENT 100-40-41-86200 OFFICE FURNITURE & EQUIPMENT 200 200 300 EQUIPMENT 200 200 300 Totals for dept 40-41 - COMMUNITY DEV. - ADMINISTRATION 514,608 644,519 697,090 696,120 755,474 156 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Dept 40-43 - COMMUNITY DEV. - BUILDING & CODE ENFORCE PERSONNEL 100-40-43-41100 WAGES - FULL-TIME 328,670 357,688 370,459 370,459 392,375 100-40-43-41300 WAGES - OVERTIME 334 841 6,500 6,500 6,500 100-40-43-41500 CLOTHING ALLOWANCE 577 1,477 1,800 1,800 1,800 100-40-43-42100 EMPLOYER PORTION FICA 22,718 25,155 28,975 28,975 30,652 100-40-43-42200 EMPLOYER PORTION IMRF 47,815 41,640 32,833 32,833 34,104 100-40-43-42500 EMPLOYEE HEALTH INSURANCE 99,799 131,585 101,544 101,544 101,844 100-40-43-42600 WORKER'S COMPENSATION/LIABILITY INSUR 777 1,122 PERSONNEL 500,690 559,508 542,111 542,111 567,275 COMMODITIES 100-40-43-51700 SUPPLIES/PARTS-VEHICLES 379 1,000 800 1,000 100-40-43-52000 OFFICE SUPPLIES 175 100 100 100 100-40-43-53300 SMALL TOOLS & EQUIPMENT 19 152 200 150 750 100-40-43-54000 UNIFORMS/PROTECTIVE CLOTHING 274 100 100 200 100-40-43-55000 FUEL, OIL, & LUBRICANTS 1,824 2,969 3,500 3,100 3,500 COMMODITIES 2,018 3,774 4,900 4,250 5,550 CONTRACTUAL SERVICES 100-40-43-61500 MAINTENANCE-EQUIPMENT 8 250 100 200 100-40-43-61700 MAINTENANCE-VEHICLES 2,003 111 2,000 1,000 1,000 100-40-43-62099 PRINTED MATERIALS 198 300 300 500 100-40-43-62100 FINANCIAL SERVICES 1,000 750 1,000 100-40-43-63300 NUISANCE ABATEMENT SERVICES (1,135) 4,929 9,000 7,000 10,000 100-40-43-63800 CONTRACTED SERVICES 53,891 20,674 35,000 15,000 20,000 100-40-43-64500 TELEPHONE SERVICES 3,233 2,695 4,700 3,000 4,700 100-40-43-65100 FREIGHT & POSTAGE 100 100 100-40-43-66100 DUES & SUBSCRIPTIONS 348 35 100 400 100-40-43-66200 TRAINING/TRAVEL 48 415 4,000 3,200 4,000 CONTRACTUAL SERVICES 58,388 29,065 56,450 30,350 41,900 EQUIPMENT 100-40-43-86200 OFFICE FURNITURE & EQUIPMENT 1,227 1,000 400 1,000 EQUIPMENT 1,227 1,000 400 1,000 Totals for dept 40-43 - COMMUNITY DEV. - BUILDING & CODE ENFO 561,096 593,574 604,461 577,111 615,725 157 | Page This page has been intentionally left blank. 158 | Page General Fund Support _____________________________________________________________________________ Department Introduction The General Fund Support budget does not pertain to one specific operating function, but rather contains shared expenditures of all departments that are impractical to allocate. Expenditures include: • Estimated matching contributions towards employee deferred compensation and health savings accounts (HSA). • Payments towards retiree health insurance which was established with Ordinance 12-26 (benefits applied in tiers to employees hired before January 1, 2012). • Contribution to the Worker’s Compensation/Liability Insurance internal service fund for premiums and claims. • Payments to other entities subject to economic incentive agreements. • Certain special projects of the City. • Payments on debt service for debt of other entities (Library). • Transfers to other funds of the City of DeKalb. 159 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Dept 55-00 - GENERAL FUND SUPPORT PERSONNEL 41700 DEFERRED COMPENSATION 208,864 208,864 208,800 41800 HSA CONTRIBUTIONS 90,137 90,137 90,137 42500 RETIREE HEALTH INSURANCE 1,094,876 1,068,042 1,147,879 1,147,879 1,067,953 42600 WORKER'S COMPENSATION/LIABILITY INSUR 350,000 974,355 974,355 1,232,216 PERSONNEL 1,444,876 1,068,042 2,421,235 2,421,235 2,599,106 CONTRACTUAL SERVICES 68750 TAX SHARING AGREEMENTS 1,639,010 1,298,835 1,368,971 1,368,971 1,368,810 69199 PRIV PROP REHAB / REDEVELOP 1,000,000 69200 SURETY BONDS 62,150 67,317 69700 SPECIAL PROJECTS 20,000 20,000 20,000 CONTRACTUAL SERVICES 1,701,160 2,366,152 1,388,971 1,388,971 1,388,810 EQUIPMENT 86000 EQUIPMENT (LEASED) 30,208 EQUIPMENT 0 30,208 0 0 0 DEBT SERVICES 75000 DEBT SERVICE - PRINCIPAL 375,000 375,000 375,000 360,000 76000 DEBT SERVICE - INTEREST 114,138 94,599 94,599 111,409 79000 CAPITAL LEASE PRINCIPAL 27,209 79100 CAPITAL LEASE INTEREST 407 DEBT SERVICES 0 516,754 469,599 469,599 471,409 TRANSFERS OUT 91130 TRANSFER TO GEMT FUND 800,000 91300 TRANSFER TO DEBT SERVICE FUND 1,880,280 1,750,000 1,851,919 1,998,497 91400 TRANSFER TO CAPITAL PROJECTS FUND 22,500 91420 TRANSFER TO CAPITAL EQUIPMENT FUND 25,000 200,000 200,000 200,000 91900 TRANSFER TO LIBRARY FUND 490,625 TRANSFERS OUT 538,125 2,680,280 1,950,000 2,051,919 2,198,497 GENERAL FUND SUPPORT 3,684,161 6,661,436 6,229,805 6,331,724 6,657,822 160 | Page Section Five Special Revenue Funds • American Rescue Plan Act (110) • GEMT (130) • Transportation (200) • Motor Fuel Tax (210) • Heritage Ridge SSA #3 (223) • Knolls at Prairie Creek Subdivision SSA #4 (224) • Greek Row SSA #6 (226) • Market Square SSA #29 (229) • Hunter Ridgebrook SSA #30 (230) • Heartland Fields SSA #14 (234) • Central Business TIF District #3 (262) • Community Development Block Grant (280) • Housing Rehabilitation Fund (285) • Foreign Fire Insurance Tax Fund (290) 161 | Page This page has been intentionally left blank. 162 | Page American Rescue Plan Act Fund _____________________________________________________________________________ FUND 110 The City continues to incur qualifying expenditures resulting from the $10.4 million award of funds granted in March 2021. In FY 2021, $3,001,806 of ARPA grant funds were spent on the following projects: • $1,511,017 – re-hiring twenty-one public safety (police, fire, and public works) employees (recognized in the General Fund). • $1,148,164 – purchase of Hunter Hillcrest property and building improvements for existing tenants. • $50,981 – relocation assistance of Hunter Hillcrest tenants. • $291,644 – payments to other units of government (DeKalb Park District and Kishwaukee Water Reclamation District) to assist with revenues lost because of COVID-19. In FY 2022, $3,293,553 of grant funds were spent on the following projects: • $1,997,435 – recognized in the General Fund to continue to fund the salary and benefits of the public safety re-hires. • $342,689 – recognized in the Water Capital Fund for lead service line replacements. • $462,546 – for the Hunter Hillcrest relocations and building demolition (ARPA Fund). • $490,882 – for street and sidewalk improvements (ARPA Fund). In FY 2023, approximately $2,037,285 of grant funds will be expended: • $1,837,285 – is budgeted to be recognized in the General Fund to continue to fund the salary and benefits of the public safety re-hires. • $100,000 – assistance provided to eligible non-profits providing community services to disproportionately impacted low-income communities. (Project Hope – New Hope Missionary Baptist Church). • $100,000 – assistance to eligible non-profits in the tourism, travel, hospitality, and public amusement industry (Egyptian Theatre, Stage Coach Players, JF Glidden Homestead). It is likely that the entire $500,000 allocated to the lead service line replacement program in the Water Capital Fund will be fully spent by December 31, 2023. Approximately $1.019 million will be spent in FY 2024 on the salary and benefits of the public safety re-hires and other potential projects, which will exhaust the grant funds. After FY 2024, the full cost of the re-hired employees will be felt by the General Fund. The remaining balance of $56,543 is budgeted for additional street improvements. 163 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Fund 110 - AMERICAN RESCUE PLAN ACT FUND ESTIMATED REVENUES INTERGOVERNMENTAL REVENUES 110-00-00-33100 FEDERAL GRANTS 1,478,105 950,528 450,000 450,000 INTERGOVERNMENTAL REVENUES 1,478,105 950,528 450,000 450,000 0 OTHER INCOME 110-00-00-34900 RENTAL INCOME 12,684 2,900 110-00-00-37100 INVESTMENT INTEREST 113 56,430 OTHER INCOME 12,797 59,330 0 0 0 TOTAL ESTIMATED REVENUES 1,490,902 1,009,858 450,000 450,000 0 EXPENDITURES CONTRACTUAL SERVICES 110-00-00-62100 FINANCIAL SERVICES 110-00-00-63700 DEVELOPMENTAL SERVICES 64,432 462,546 100,000 100,000 110-00-00-63800 CONTRACTED SERVICES 291,644 110-00-00-69700 SPECIAL PROJECTS 100,000 100,000 CONTRACTUAL SERVICES 356,076 462,546 200,000 200,000 0 EQUIPMENT 110-00-00-81000 LAND ACQUISITION 1,134,713 110-00-00-83000 STREET IMPROVEMENTS 490,882 250,000 250,000 56,543 EQUIPMENT 1,134,713 490,882 250,000 250,000 56,543 TRANSFERS OUT 110-00-00-91100 TRANSFER TO GENERAL FUND 110-00-00-91620 TRANSFER TO WATER CAPITAL FUND TRANSFERS OUT TOTAL EXPENDITURES 1,490,789 953,428 450,000 450,000 56,543 NET OF REVENUES/APPROPRIATIONS - FUND 110 113 56,430 0 0 (56,543) BEGINNING FUND BALANCE 113 56,543 56,543 56,543 ENDING FUND BALANCE 113 56,543 56,543 56,543 0 164 | Page GEMT Fund _____________________________________________________________________________ FUND 130 In the late summer of 2020, with the close collaboration of DeKalb IAFF Local 1236, the City pursued supplemental funding through the federal Ground Emergency Medical Transportation (GEMT) program which provides gap funding between what the City might receive in Medicaid funds for ambulance transports, and the actual cost of the ambulance service. In FY2019, the City of DeKalb’s actual cost of providing ambulance service, per trip, was $1,879; the average Medicaid recovery payment was only $211, or approximately 11% of the actual cost of service. As in every fiscal year budget since 2020, GEMT funds will be deposited in the GEMT Fund where their receipt and expenditure can be more transparent and responsibly expended for Fire-related purposes. In FY2023, GEMT funds supported the purchase of a Rosenbauer fire engine and two staff vehicles. The Fund also supported the purchase of new SCBA breathing devices and a new station alert system. The GEMT Fund will assume a role in the funding of the architectural and engineering cost associated with the construction of a fourth fire station. Over the fourth quarter of 2023 and the first quarter of 2024 a total of $336,125 will be available to support the City’s contract with Studio 222 Architects of Chicago. In FY2024, an additional transfer of $500,000 will be made from the GEMT Fund to the General Fund to partially offset the cost of the bonded debt service associated with the construction of Station 4. Additionally, in FY2024 the GEMT Fund will support the purchase of a new Rosenbauer fire truck ($1.6 million) and two replacement ambulances ($430,000 altogether). 165 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET BUDGET Fund 130 - GEMT FUND ESTIMATED REVENUES INTERGOVERNMENTAL REVENUES 130-00-00-33100 FEDERAL GRANTS (AFG) 251,009 250,000 50,000 INTERGOVERNMENTAL REVENUES 0 0 251,009 250,000 50,000 SERVICE CHARGES 130-00-00-34270 GEMT REVENUE 325,743 1,672,186 1,350,000 1,650,000 1,691,250 SERVICE CHARGES 325,743 1,672,186 1,350,000 1,650,000 1,691,250 OTHER INCOME 130-00-00-37100 INVESTMENT INTEREST 5 31,692 6,180 75,000 65,000 OTHER INCOME 5 31,692 6,180 75,000 65,000 TRANSFERS IN 130-00-00-39100 TRANSFER FROM GENERAL FUND 0 800,000 TRANSFERS IN 0 800,000 0 0 0 TOTAL ESTIMATED REVENUES 325,748 2,503,878 1,607,189 1,975,000 1,806,250 EXPENDITURES COMMODITIES 130-00-00-51600 SUPPLIES/PARTS-TECHNOLOGY 6,533 10,000 130-00-00-52900 AMBULANCE SUPPLIES & EQUIPMENT 130,000 93,362 50,000 COMMODITIES 0 6,533 140,000 93,362 50,000 CONTRACTUAL SERVICES 130-00-00-61500 MAINTENANCE-EQUIPMENT 40,000 40,000 40,000 130-00-00-61700 MAINTENANCE-VEHICLES 25,000 20,000 130-00-00-62300 ARCHITECT/ENGINEERING SERVICES 50,000 200,000 50,000 130-00-00-66200 TRAINING/TRAVEL 100,000 100,000 100,000 CONTRACTUAL SERVICES 0 0 215,000 360,000 190,000 EQUIPMENT 130-00-00-81000 LAND ACQUISITION 100,000 130-00-00-86000 EQUIPMENT 380,265 927,307 970,746 130-00-00-87000 VEHICLES 717,343 745,236 740,251 2,090,000 EQUIPMENT 0 1,097,608 1,772,543 1,710,997 2,090,000 TRANSFERS OUT 130-00-00-91100 TRANSFER TO GENERAL FUND 500,000 TRANSFERS OUT 0 0 0 0 500,000 TOTAL EXPENDITURES 0 1,104,141 2,127,543 2,164,359 2,830,000 NET OF REVENUES/APPROPRIATIONS - FUND 130 325,748 1,399,737 (520,354) (189,359) (1,023,750) BEGINNING FUND BALANCE 325,748 1,725,485 1,725,485 1,536,126 ENDING FUND BALANCE 325,748 1,725,485 1,205,131 1,536,126 512,376 166 | Page Transportation Fund _____________________________________________________________________________ FUND 200 The Transportation Fund includes the revenues and expenditures associated with the provision of transportation planning and public transit services within the DeKalb Urbanized Area (UZA). The City of DeKalb serves as the grant recipient for federal and state funds for transit services in the DeKalb UZA. The Transit unit within the Public Works Division of Utilities and Transportation oversees the management and operations of public transit in the DeKalb UZA. The City of DeKalb is the fiscal agent for State and Federal grant funding which funds transit services including the fixed route and paratransit bus services. The State of Illinois provides funding for 65% of all transit operational funding up to a contractual limit. The Federal Transit Administration (FTA) has provided approximately $1 million annually for transit capital projects and additional operating assistance funding. Through additional funding provided by the Bipartisan Infrastructure Law, we anticipate federal awards to be between $2 Million-$2.5 million annually through 2026. Further, the Transit program will have approximately $1.5 Million in CARES and ARP funds to draw down by the end of 2025. The final principal funding element is the local contribution provided through Northern Illinois University (NIU) per an Intergovernmental Agreement (IGA) with the city. NIU is expected to provide slightly over $2 Million to support fixed route services in 2024. The Transportation budget is based on the State Fiscal Year (SFY) that runs from July 1 to June 30. With the City operating within a calendar year, the annual transportation budget does not correspond with the city budget. Because transportation grant funding allocations are only known up to June 30, 2024, this budget is developed on the assumption that Illinois and Federal Fiscal year 2024 grant funding will be equal to SFY2024 funding. TRANSIT DIVISION When the DeKalb-Sycamore area was designated as an urban center in the 2000 U.S. Census, the area became eligible to receive Federal Urbanized Area Formula Grant 5307 funds, which are administered through the Federal Transit Administration (FTA), and Downstate Operating Assistance Program (DOAP) with funding from the Illinois Department of Transportation (IDOT). Using state and federal funding sources, the City contracts with Transdev Services Inc. (Transdev) to provide public transportation services within the DeKalb Urbanized Area (UZA). The Transit Budget has pursued several existing grants for which funding is available and Transit staff will be submitting grant proposals to the FTA to fund several more projects in SFY2024. As previously noted, the DeKalb region is provided an apportionment of grant funds for transit capital projects and operating assistance annually. These funds are approved in the Federal Transportation Funding Program. Within the program, specific funds are set aside to provide transit funds to urbanized areas with a population of over 50,000 people. 167 | Page The state DOAP grant reimburses the city for up to 65% of the cost for public transit operations. The remaining 35% of the funding must come from other grant sources and local match contributions. The City’s SFY2024 DOAP award is $6,282,800 with a required match of $4,142,000. This funding reflects the SFY2024 DOAP grant budget running from 7/1/2023- 6/30/2024. Currently, match funding comes from FTA 5307 operating assistance, and NIU transit contribution funds. Table 1 identifies the funding sources for the public transit budget: Table 1: Public Transit Funding Sources SFY24 Funding Source % Of Budget Allocation State of Illinois DOAP Grant (1/1/24 – 12/31/24) $6,282,800 26.9% Local Match Fund DOAP: NIU Contribution $1,965,000 8.4% FTA 5307 Operating Assistance Funds $1,980,000 8.5% FTA 5307 Capital Grant-Transit Improvement $2,492,937 10.7% State of Illinois Capital Grant $9,884,000 42.4% State of Illinois Planning Grant $400,000 1.7% Local Match Fund Planning: NIU Contribution $100,000 0.4% Miscellaneous Revenue $5,000 0.0% Fares from Fixed Route Service $46,000 0.2% Fares from Paratransit Service $69,000 0.3% Investment Interest $96,000 0.4% Totals $23,320,737 The City receives an annual FTA 5307 grant to fund public transit capital purchases and operating assistance. The City is annually allocated approximately $2 Million, which varies from year to year based on a formula for public transit funding provided in the annual Federal Budget. These funds can be accumulated over a five-year period. In SFY2024 (July 1, 2023, to June 30, 2024) staff looks to use up to $4.4 Million in FTA 5307 grant funds drawing from current accumulated Federal awards including FTA CARES Act dollars. Table 2 below identifies projects proposed using FTA funds: Table 2: 2024 FTA 5307 Grant Funding Project Grant Allocation Capital Purchase-Bus Equipment $2,492,937 Operating Assistance $1,980,000 Total $4,472,937 168 | Page As shown in Table 1, above, the Transit program is anticipating approximately 54% of our revenues and expenditures to be focused on capital needs. A summary of those project costs and funding sources are found in Table 3: Table 3: 2024 Capital Projects Project Fed Share State Share Local Share Total Transit Facility: Architecture / Engineering $2,800,000 $2,800,000 Transit Facility: Site Preparation Work $2,000,000 $2,000,000 New Equipment Purchase: Transit Software $0 $384,000 $384,000 New Equipment Purchase: Transit Buses $1,772,362 $3,827,638 $0 $5,600,000 Used Equipment Purchase: Transdev Bus Fleet $0 $0 $76,500 $76,500 Phase 1 Used Equipment Purchase: Transdev Bus Fleet $720,575 $56,643 $123,500 $900,718 Phase 2 Total Capital Projects $2,492,937 $9,068,281 $200,000 $11,761,218 Notes on funding uses and timeframes for each of these projects are discussed in the narratives below: Transit Facility: Transit staff are anticipating design work for the transit facility to be completed in the second quarter of 2024 with initial site preparation work to begin in the late third quarter or fourth quarter. Funding for the design work will predominantly rely on IDOT Rebuild Illinois dollars. Site work and eventual construction will be funded completely through our IDOT Rebuild Illinois grant. Equipment Purchases: Transit staff are planning on leveraging a combination of IDOT and Federal funds to purchase between six and eight new 35-foot fixed route buses. Staff anticipates the purchases will consist of a combination of diesel and diesel / electric hybrid vehicles. Purchase of electric vehicles is not being considered with this round of funding due to the significant cost difference between diesel and electric vehicles, the lengthy production time (estimated two years as of September 2023), and limited range of an electric vehicle. Nevertheless, the Staff believe hybrid buses are a logical bridging step to a clean-energy fleet. In addition to new bus purchases, Staff will use IDOT funding to purchase new Computer-Aided Dispatch / Automatic Vehicle Location software for the transit fleet. This software procurement seeks to replace the aged software that Transdev has been providing for fixed-route and paratransit services. 169 | Page Finally, the used equipment purchase line item derives from Transit Staff plans to purchase a portion or all of the existing Transdev fixed route bus fleet so that those vehicles will fall under City control. As discussed with the City Council in August, 2023, Transdev currently owns all buses that operate in the fixed route service. City staff see a need to take control of those assets to ensure service stability. Transdev’s ownership of the bus fleet limits competitive bidding from other transit operators since few companies are willing to invest in capital for this type of contract. The City indirectly pays for these assets as part of the annual contract costs Transdev charges. Those costs amount to approximately $500,000 annually. The used equipment purchase is planned to be accomplished in two phases, with Phase One focusing on fully depreciated bus equipment that will be procured using NIU funds while Phase Two will feature the purchase of partially depreciated equipment using a combination of federal, state and NIU funds. Phase One reliance on local funds is the result of a federal prohibition on using FTA funding for procurement of fully depreciated vehicles. Planning Activities The last passenger stop of the Kate Shelley in 1971 (pictured above) may not be the last time that passenger rail service was a feature of DeKalb’s transit scene. On January 9, 2023 the City Council approved a consulting agreement with Sam Schwartz Consulting of Chicago to explore the financial feasibility of a commuter rail connection to the City of DeKalb. The focus of the study was the potential ridership, capital costs, and operating requirements of such rail service to DeKalb. The City’s interest was joined by Northern Illinois University, whose students, faculty and 170 | Page staff would make up a substantial share of the potential ridership. The results of the study’s three phases were summarized at the Council meeting of May 22, 2023. The major findings were as follows: Travel Market: Approximately 10,800 people travel daily between DeKalb County and the communities along the UP-West line (including the City of Chicago). Current Service: The Metra Union Pacific West line operates between Elburn and Ogilvie Transportation Center in downtown Chicago. As of April 2023, there are approximately 23 weekday, 10 Saturday, and 9 Sunday round trips between Elburn and Chicago. Expected Travel Time: An extension from Elburn to DeKalb would add approximately 20 minutes to the Metra trip in one direction. Travel time from DeKalb to Ogilvie Transportation Center would be between 90 and 105 minutes on weekdays. Potential Service: The study explored three potential schedules with extensions to DeKalb, one with four round trips per day, one with 12 round trips per day, and one with 16 round trips per day. The study also considered four round trips per day for weekend service. Potential Ridership: A high-level estimate of ridership was conducted based on the overall travel market between DeKalb and the Chicago Metropolitan Area. The expected ridership is 259 daily trips on weekdays and 189 daily trips on weekends. The ridership was not tested against theoretical service levels. The City is testing potential ridership by expanding its daily bus trips to and from Elburn. Such expansion since mid-January 2023 has had an almost immediate impact on ridership: from 2019-2022 the average monthly ridership was 240; in the first eight months of 2023 the bus ridership was up 120% compared to the same period in 2022. Key Stakeholders: There are three key stakeholders on this project. Union Pacific owns the track between Elburn and DeKalb and would need to give permission for Metra to extend service. Metra operates the UP-W service and would need to agree to extend the service. The Chicago RTA oversees the finance and funding of transit in the Chicago area and would also need to agree to the extension. Operating Costs: DeKalb would need to purchase service from Metra for operation of the line into DeKalb County since it is outside the Chicago RTA service area. The estimated annual operating cost of the service (12 round trips of weekdays) to DeKalb would be between $8.2 and $12.8 million (2023 dollars) for the “medium” level of service detailed below: Low (4 R/T) Medium (12 R/T) High (16 R/T) Weekend Daily Trips 8 24 32 8 Daily Train Hours 2.67 8.00 10.67 2.67 Daily Car Miles 1066 3197 4262 1066 Annual Train Hours 680 2040 2720 277 Annual Car Miles 271,728 815,184 1,086,912 110,822 171 | Page The relevant annual operating costs for each service option are shown below. Assuming the City chose the “middle” ground, the overall annual operating cost would be an estimated $10.99 million: Low Cost* $8.15 $10.71 $11.99 $0.52 Medium Cost* $8.25 $10.99 $12.36 $0.56 High Cost* $8.37 $11.35 $12.84 $0.61 *2023 costs in millions of dollars. Capital Costs: DeKalb would need to pay for infrastructure improvements to accommodate passenger service between Elburn and DeKalb. The estimated cost of the capital improvements is between $257 and $385 million (2023 dollars), and includes a third mainline track, retaining walls, rehab of the existing DeKalb station, and new trainsets to accommodate the schedule. The following table further details the potential capital costs, still under discussion with Metra: Category Description Estimated Cost 10 Guideway and Track Elements $87,959,000 20 Stations, Stops, Terminals, Intermodal $5,000,000 30 Support Facilities, Yards, Shops, Admin Bldgs. $1,000,000 40 Sitework and Special Conditions $41,098,000 50 Systems $26,307,000 60 R.O.W., Land Improvements $4,647,000 70 Trainsets (24 cars @$3.6 MM ea. + 3 engines @ $1.5MM ea. $90,900,000 Subtotal: $256,911,000 80 Professional Services TBD 90 Unallocated Contingency 50% $128,455,500 Total Without Professional Services $385,366,500 With respect to the potential capital investment needed to initiate a Metra service extension to the city, we know that:  An extension of the Metra UP-West line would require construction and use of approximately 15-miles of “third” track owned and maintained by Union Pacific Railroad once built. Union Pacific must give permission for Metra to operate on this track.  UP has indicated that various sidings and crossovers would be needed to help with operational capacity before granting Metra the right to operate service to DeKalb.  The current historic station in downtown DeKalb would be rehabilitated to serve the commuting public.  The Union Pacific storage yard just west of the Peace Road overpass has a right-of-way between 200 and 230 feet and would provisionally provide adequate space for the storage of operating “train sets.” 172 | Page Additional Governance: DeKalb would need to determine how best to pay for capital and operating costs for the extension. The two leading possibilities are to create a mass transit district or petition to become part of the RTA service area. If the potential sources of funding rely on the formation of a local Mass Transit District as defined in 70 ILCS 3610/1 et passim, some key legal parameters are as follows:  The District may be composed of one or more municipalities or one or more counties or any combination thereof;  The District may have a boundary that encloses an area of contiguous land, known as a participating area, which does not strictly conform to the boundaries of counties or other political subdivisions;  Districts may be created by ordinance approved by a majority vote of the corporate authorities of the participating municipalities and counties;  Subject to approval by referendum, the District may levy a tax on property within the District at the rate of no greater than .25% (1/4 of 1 percent) of the assessed value of such property; 173 | Page  The District may acquire property, receive grants and loans from any private or public entity, and issue revenue bonds.  If the District is consistent with the jurisdictional boundaries of a county, the presiding officer of the county board, with the advice and consent of the board, shall appoint 5 Trustees, not more than 3 of whom may be affiliated with the same political party. If the District extends to multiple counties, the number of Trustees shall be in proportion to the number of residents of the District who reside in a particular county. The Board would have the right of eminent domain and the authority to operate, improve, own, and manage the pertinent facilities, rail cars, buildings and track equipment necessary to operate the transit connection to DeKalb. Public Engagement In Mid-April, the Consultant conducted “tabling sessions” at NIU’s Holmes Student Center and the DeKalb Public Library to answer public questions about the purposes and initial ridership findings. On Tuesday, May 23, there was an open house at the DeKalb Public Library from 6:00 p.m. to 8:00 p.m. to invite the general public to hear a short presentation on the overall findings and invite informal questions and answers around the various graphics that will be on display. On Thursday, May 25, the Consultant held a Zoom Q&A through the Teams format for any interested members of the public. This virtual open house featured a brief presentation at the outset to provide context for persons just hearing about the initiative. The virtual open house was recorded for viewing on the City’s website. 174 | Page Further Planning To keep moving through the feasibility stage, a Planning and Environmental Linkages (PEL) study would be the next step. Such studies consider economic and environmental impacts of potential rail corridor projects. A PEL study for the proposed DeKalb-Elburn UP corridor would cost in the range of $500,000 to $750,000, with a local share of about 20% (i.e., $100,000). The FY2024 Transportation Fund budget includes a $100,000 allocation for this local share. 175 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Fund 200 - TRANSPORTATION FUND ESTIMATED REVENUES INTERGOVERNMENTAL REVENUES 200-30-37-33100 FEDERAL GRANTS 785,883 1,200,240 4,116,195 2,216,269 4,472,937 200-30-37-33200 STATE GRANTS 4,554,874 5,383,066 6,117,800 5,775,716 6,682,800 200-30-37-33250 REBUILD IL GRANT 5,000,000 350,000 9,884,000 200-30-37-33260 STATE GRANTS - CAPITAL 12,098 INTERGOVERNMENTAL REVENUES 5,340,757 6,595,404 15,233,995 8,341,985 21,039,737 SERVICE CHARGES 200-30-37-34600 CHARGES FOR SERVICES 1,798,958 2,065,053 2,065,000 2,065,000 2,065,000 SERVICE CHARGES 1,798,958 2,065,053 2,065,000 2,065,000 2,065,000 OTHER INCOME 200-30-37-37100 INVESTMENT INTEREST 473 23,688 10,800 108,658 96,000 200-30-37-38100 MISCELLANEOUS REVENUE 11,026 74,933 65,000 118,848 120,000 200-30-37-38600 SALES OF SURPLUS PROPERTY 3,350 3,000 3,000 OTHER INCOME 14,849 98,621 78,800 230,506 216,000 TOTAL ESTIMATED REVENUES 7,154,564 8,759,078 17,377,795 10,637,491 23,320,737 EXPENDITURES PERSONNEL 200-30-37-41100 WAGES - FULL-TIME 152,212 168,015 211,743 207,673 217,036 200-30-37-41200 WAGES - PART-TIME 4,426 6,579 24,975 15,994 25,599 200-30-37-42100 EMPLOYER PORTION FICA 11,212 13,006 18,108 17,110 18,561 200-30-37-42200 EMPLOYER PORTION IMRF 22,123 21,412 18,443 17,946 18,557 200-30-37-42500 EMPLOYEE HEALTH INSURANCE 49,200 49,217 21,486 21,486 21,421 200-30-37-42600 WORKER'S COMPENSATION/LIABILITY INSUR 372 537 13,108 13,108 15,598 PERSONNEL 239,545 258,766 307,863 293,317 316,772 COMMODITIES 200-30-37-52000 OFFICE SUPPLIES 4,734 397 3,000 362 3,000 200-30-37-55000 FUEL, OIL, & LUBRICANTS 127 195 1,360 299 3,000 COMMODITIES 4,861 592 4,360 661 6,000 CONTRACTUAL SERVICES 200-30-37-61700 MAINTENANCE-VEHICLES 190 119 300 100 300 200-30-37-61800 MAINTENANCE-SOFTWARE 4,400 4,400 12,750 10,900 12,640 200-30-37-62099 PRINTED MATERIALS 565 11,239 15,000 16,479 25,000 200-30-37-62100 FINANCIAL SERVICES 5,187 2,575 2,627 2,627 2,683 200-30-37-62200 LEGAL SERVICES 4,950 5,850 9,000 9,350 10,000 200-30-37-63800 CONTRACTED SERVICES 7,005,121 8,040,233 9,545,445 8,934,831 10,458,852 200-30-37-63900 OTHER PROFESSIONAL SERVICES 340 100,000 98,379 500,000 200-30-37-64500 TELEPHONE SERVICES 864 1,162 1,200 1,183 1,600 200-30-37-65100 FREIGHT & POSTAGE 24 100 100 200-30-37-65200 MARKETING ADS & PUBLIC INFO 3,279 2,200 48,000 10,000 48,000 200-30-37-65300 LEGAL EXPENSES & NOTICES 785 1,500 378 2,000 200-30-37-66100 DUES & SUBSCRIPTIONS 5,945 9,445 10,000 9,445 10,000 200-30-37-66200 TRAINING/TRAVEL 779 930 5,000 868 5,000 200-30-37-66300 TRAVEL EXPENSES 962 500 500 CONTRACTUAL SERVICES 7,033,051 8,078,493 9,751,422 9,094,540 11,076,675 EQUIPMENT 200-30-37-82000 BUILDINGS & IMPROVEMENTS 5,500,000 855,750 4,800,000 200-30-37-86000 EQUIPMENT 945 200-30-37-86100 TECHNOLOGY EQUIPMENT 200,000 384,000 200-30-37-87000 VEHICLES 1,563,000 6,577,218 EQUIPMENT 945 0 7,263,000 855,750 11,761,218 176 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET TRANSFERS OUT 200-30-37-91100 TRANSFER TO GENERAL FUND 25,972 39,295 51,150 51,768 52,490 200-30-37-91420 TRANSFER TO CAPITAL EQUIPMENT FUND 200,000 100,000 TRANSFERS OUT 25,972 39,295 51,150 251,768 152,490 TOTAL EXPENDITURES 7,304,374 8,377,146 17,377,795 10,496,036 23,313,155 NET OF REVENUES/APPROPRIATIONS - FUND 200 (149,810) 381,932 141,455 7,582 BEGINNING FUND BALANCE 2,635,259 2,485,449 2,867,383 2,867,383 3,008,838 ENDING FUND BALANCE 2,485,449 2,867,381 2,867,383 3,008,838 3,016,420 177 | Page This page has been intentionally left blank. 178 | Page Motor Fuel Tax Fund ______________________________________________________________________________ FUND 210 The City receives a per capita allocation of Illinois Motor Fuel Tax (MFT) revenues on a monthly basis from a State tax on gasoline purchases. These funds can only be used for certain costs related to street maintenance and improvement projects, as set forth by the State of Illinois. The annual MFT allotment to the City in FY2024 is an estimated $1.7 million. MFT REVENUES 4,000,000 3,000,000 2,000,000 1,000,000 0 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY2024 Expenditures Tentative FY24 Projects Estimated Costs Lucinda Ave Reconstruction $400,000 Bridge Contributions $500,000 Annual Street Maintenance (Fairview and adjacents) $1,000,000 Total $1,900,000 A portion of the FY2024 MFT allocation--$751,000—will be used to defray the City’s electrical charges ($333,000) and salt purchases ($285,000), and an additional stop-gap contribution to street supplies/commodities ($133,000). State law permits the City to dedicate a portion of its annual MFT allocation for certain electricity costs and road salt purchases. The City defrays the electrical costs associated with our streetlights and lighting equipment provided by ComEd. Like many other Illinois communities, we also purchase road salt for snow and ice removal with Motor Fuel Tax funds, and will do so in FY2024 to supplement the Street Department commodity needs, such as components for traffic signals and signs. Lucinda Avenue is a substantial thoroughfair for University life and several residential nieghborhhods seeking Annie Glidden Road access. The portion between the Kishwaukee River and Annie Glidden Road is city-owned and is in poor condition. As a qualifying Federal Aid Route, the Lucinda Road resurfacing project in 2024 must also meet required ADA compliance and traffic 179 | Page management upgrades. These upgrades will be completed with significant outside (i.e. state) contributions and a City local share of about $400,000 in Motor Fuel Tax funds. FY2024 is also a State MFT-designated year for annual street maintenance. The Street maintenance program may alternate each year between State MFT (Fund 210) and Local MFT (Fund 400) or may be combined. The 2024 targeted scope is Fairview Drive and the residential streets directly south such as those branching from Monticello, Heritage, and Patriot. Resulting wholly from utility conflicts, the Lucinda Avenue Bridge needed to have a large majority of its replacement work, and therefore costs, shifted to FY2024. Those Rebuild Illinois Bond allocations (already received) will now impact the FY2024 budget expenditures. MFT EXPENDITURES 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 180 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED BUDGET GL NUMBER DESCRIPTION BUDGET Fund 210 - MOTOR FUEL TAX FUND ESTIMATED REVENUES INTERGOVERNMENTAL REVENUES 210-00-00-33200 STATE GRANTS 967,250 967,250 0 0 0 210-00-00-33550 MOTOR FUEL TAX ALLOTMENT 1,792,150 1,719,112 1,700,000 1,700,000 1,700,000 INTERGOVERNMENTAL REVENUES 2,759,400 2,686,362 1,700,000 1,700,000 1,700,000 OTHER INCOME 210-00-00-37100 INVESTMENT INTEREST 1,960 72,288 12,000 110,000 65,000 210-00-00-38100 MISCELLANEOUS REVENUE 0 0 0 0 0 210-00-00-38200 REFUNDS / REIMBURSEMENTS 0 0 1,530,000 1,540,000 0 OTHER INCOME 1,960 72,288 1,542,000 1,650,000 65,000 TOTAL ESTIMATED REVENUES 2,761,360 2,758,650 3,242,000 3,240,000 1,765,000 EXPENDITURES COMMODITIES 210-00-00-51410 SUPPLIES/PARTS-STREETS 99,214 100,050 133,000 150,000 133,000 210-00-00-53100 ICE/SNOW CONTROL SUPPLIES 192,955 248,816 283,000 275,000 285,000 COMMODITIES 292,169 348,866 416,000 425,000 418,000 CONTRACTUAL SERVICES 210-00-00-62300 ARCHITECT/ENGINEERING SERVICES 595,135 633,889 1,090,000 990,000 250,000 210-00-00-64100 ELECTRIC SERVICES 314,578 323,183 333,000 310,000 333,000 CONTRACTUAL SERVICES 909,713 957,072 1,423,000 1,300,000 583,000 EQUIPMENT 210-00-00-81000 LAND ACQUISITION (65) 0 0 0 0 210-00-00-83000 STREET IMPROVEMENTS 487,143 228,950 1,000,000 1,000,000 0 210-00-00-83050 STREET MAINTENANCE 1,061,510 1,000,000 2,675,000 2,500,000 1,000,000 210-00-00-83800 BONDED CAPITAL PROJECTS 0 0 1,050,000 550,000 500,000 210-00-00-83850 GRANT-FUNDED PROJECTS 0 0 0 0 400,000 210-00-00-83900 OTHER CAPITAL IMPROVEMENTS 0 0 75,000 0 50,000 EQUIPMENT 1,548,588 1,228,950 4,800,000 4,050,000 1,950,000 TOTAL EXPENDITURES 2,750,470 2,534,888 6,639,000 5,775,000 2,951,000 NET OF REVENUES/APPROPRIATIONS - FUND 210 10,890 223,762 (3,397,000) (2,535,000) (1,186,000) BEGINNING FUND BALANCE 4,085,225 4,096,115 4,319,877 4,319,877 1,784,877 FUND BALANCE ADJUSTMENTS ENDING FUND BALANCE 4,096,115 4,319,877 922,877 1,784,877 598,877 181 | Page This page has been intentionally left blank. 182 | Page Special Service Area Funds ______________________________________________________________________________ In 2024 the City will administer six operational Special Services Areas (SSA) designated to pay the costs of various public maintenance and utility items through a property tax levied on the benefitted properties. They are: Heritage Ridge Subdivision Special Service Area #3 (Fund 223) was created in 1990 for the residential subdivision located at the southeast corner of Fairview Drive and First Street. It pays the costs of retention pond mowing and the maintenance of cul-de-sac islands including, but not limited to, decorative washed stone and island plant materials. It also provides for a stylized street lighting system and entrance sign. Knolls at Prairie Creek Subdivision SSA #4 (Fund 224) was created in 1994 for the residential subdivision on the west side of Annie Glidden Road between Lincoln Highway and Taylor Street. It pays the costs of maintaining cul-de-sac islands including, but not limited to, mulch, river stone and weed control. It also pays the additional costs of maintaining various public areas and provides for a stylized street lighting system and entrance sign. Greek Row Special Service Area #6 (Fund 226) was created in 2004 to finance the electrical costs of streetlighting placed upon private properties that benefit the neighborhood. Market Square Special Service Area #29 (Fund 229) was created on April 27, 2020 (Ordinance 2020-030) to finance road maintenance on the circulating system of private drives (excluding parking areas) in the Market Square Shopping Center. Hunter Ridgebrook Special Service Area #30 (Fund 230) was created on November 23, 2020. The special service area grew out of a settlement agreement between the City of DeKalb and Hunter Properties for numerous disorderly house citations at the Hunter Ridgebrook Properties. One of the provisions of that settlement agreement was their willingness to accept (or not object to) a special service area (SSA) for the Ridgebrook Properties at the corner of Normal Road and Ridge Drive. The purpose of the SSA is to provide for the public safety and security improvements long desired by residents of the housing complex. The SSA also provides for the maintenance of the City’s property at 912 Edgebrook. The initial levy for the SSA in 2021 was $100,000 which was just within the 5% statutory threshold (in terms of EAV). The 2022 levy was $50,000 and the FY2023 levy was $50,000. Once levied and received, the tax proceeds can be used to offset the cost of Police services, cameras, lighting, re- paving, and other improvements external to the buildings within the complex. According to the terms of the development agreement reached with Clear Investment Group on December 2, 2021 (Resolution 2021-103) the special levy will be used to make timely repairs and improvements. The special taxes paid in 2022 and 2023 will be paid by the developer in 2024. 183 | Page Heartland Fields Special Service Area #14 (Fund 234) was created to fund the maintenance, repair, regular care, renewal and replacement of the Common Facilities including the mowing and fertilizing of grass, pruning and trimming of trees and bushes, removal and replacement of diseased or dead landscape materials, the repair and replacement of monument signs, storm water detention basins, storm sewers and related areas and appurtenances, culverts, drains, ditches and tiles, landscape buffers and related areas and appurtenances in the Special Service Area. It also funds a mosquito abatement program in the Special Service Area, as well as the provision of snow removal services on public sidewalks along Lot 101 of the Heartland Fields Subdivision (or in such other areas as the City shall determine, within the Area) all in accordance with the final engineering plan and final plat of subdivision for the Area. The municipal services are unique and are in addition to the improvements provided or maintained by the City generally. 184 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Fund 223 - SPECIAL SERVICE AREA #3 (HERITAGE RIDGE) ESTIMATED REVENUES PROPERTY TAXES 223-00-00-30200 PROPERTY TAX - SSA 999 1,000 1,000 1,000 1,000 PROPERTY TAXES 999 1,000 1,000 1,000 1,000 OTHER INCOME 223-00-00-37100 INVESTMENT INTEREST 13 OTHER INCOME 13 TOTAL ESTIMATED REVENUES 999 1,013 1,000 1,000 1,000 EXPENDITURES CONTRACTUAL SERVICES 223-00-00-61100 MAINTENANCE-GROUNDS 798 798 700 798 900 CONTRACTUAL SERVICES 798 798 700 798 900 TRANSFERS OUT 223-00-00-91100 TRANSFER TO GENERAL FUND 500 300 500 500 500 TRANSFERS OUT 500 300 500 500 500 TOTAL EXPENDITURES 1,298 1,098 1,200 1,298 1,400 NET OF REVENUES/APPROPRIATIONS - FUND 223 (299) (85) (200) (298) (400) BEGINNING FUND BALANCE 2,635 2,336 2,250 2,250 1,952 ENDING FUND BALANCE 2,336 2,251 2,050 1,952 1,552 185 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Fund 224 - SPECIAL SERVICE AREA #4 (KNOLLS) ESTIMATED REVENUES PROPERTY TAXES 224-00-00-30200 PROPERTY TAX - SSA 5,490 5,452 5,500 5,500 5,500 PROPERTY TAXES 5,490 5,452 5,500 5,500 5,500 OTHER INCOME 224-00-00-37100 INVESTMENT INTEREST 31 OTHER INCOME 31 TOTAL ESTIMATED REVENUES 5,490 5,483 5,500 5,500 5,500 EXPENDITURES CONTRACTUAL SERVICES 224-00-00-61100 MAINTENANCE-GROUNDS 3,898 2,598 5,000 2,600 5,000 CONTRACTUAL SERVICES 3,898 2,598 5,000 2,600 5,000 TRANSFERS OUT 224-00-00-91100 TRANSFER TO GENERAL FUND 500 500 500 500 500 TRANSFERS OUT 500 500 500 500 500 TOTAL EXPENDITURES 4,398 3,098 5,500 3,100 5,500 NET OF REVENUES/APPROPRIATIONS - FUND 224 1,092 2,385 0 2,400 0 BEGINNING FUND BALANCE 2,027 3,120 5,505 5,505 7,905 ENDING FUND BALANCE 3,119 5,505 5,505 7,905 7,905 186 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Fund 226 - SPECIAL SERVICE AREA #6 (GREEK ROW) ESTIMATED REVENUES PROPERTY TAXES 226-00-00-30200 PROPERTY TAX - SSA 16,401 15,513 12,000 12,000 12,000 PROPERTY TAXES 16,401 15,513 12,000 12,000 12,000 OTHER INCOME 226-00-00-37100 INVESTMENT INTEREST 2 115 OTHER INCOME 2 115 TOTAL ESTIMATED REVENUES 16,403 15,628 12,000 12,000 12,000 EXPENDITURES CONTRACTUAL SERVICES 226-00-00-64100 ELECTRIC SERVICES 11,161 10,177 10,000 10,000 10,000 CONTRACTUAL SERVICES 11,161 10,177 10,000 10,000 10,000 TRANSFERS OUT 226-00-00-91100 TRANSFER TO GENERAL FUND 500 500 500 500 500 TRANSFERS OUT 500 500 500 500 500 TOTAL EXPENDITURES 11,661 10,677 10,500 10,500 10,500 NET OF REVENUES/APPROPRIATIONS - FUND 226 4,742 4,951 1,500 1,500 1,500 BEGINNING FUND BALANCE 10,229 14,971 19,921 19,921 21,421 ENDING FUND BALANCE 14,971 19,922 21,421 21,421 22,921 187 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Fund 229 - MARKET SQUARE AREA #29 ESTIMATED REVENUES PROPERTY TAXES 229-00-00-30200 PROPERTY TAX - SSA 200,007 50,039 50,000 50,000 50,000 PROPERTY TAXES 200,007 50,039 50,000 50,000 50,000 OTHER INCOME 229-00-00-37100 INVESTMENT INTEREST 12 1,166 OTHER INCOME 12 1,166 TOTAL ESTIMATED REVENUES 200,019 51,205 50,000 50,000 50,000 EXPENDITURES CONTRACTUAL SERVICES 229-00-00-61420 MAINTENANCE-STREETS 222,948 50,000 50,000 50,000 CONTRACTUAL SERVICES 0 222,948 50,000 50,000 50,000 TOTAL EXPENDITURES 0 222,948 50,000 50,000 50,000 NET OF REVENUES/APPROPRIATIONS - FUND 229 200,019 (171,743) 0 0 0 BEGINNING FUND BALANCE 200,018 28,276 28,276 28,276 ENDING FUND BALANCE 200,019 28,275 28,276 28,276 28,276 188 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Fund 230 - HUNTER RIDGEBROOK #30 ESTIMATED REVENUES PROPERTY TAXES 230-00-00-30200 PROPERTY TAX - SSA 100,003 50,039 50,000 50,000 50,000 PROPERTY TAXES 100,003 50,039 50,000 50,000 50,000 OTHER INCOME 230-00-00-37100 INVESTMENT INTEREST 1 270 OTHER INCOME 1 270 TOTAL ESTIMATED REVENUES 100,004 50,309 50,000 50,000 50,000 EXPENDITURES CONTRACTUAL SERVICES 230-00-00-63800 CONTRACTED SERVICES 32,033 102,554 50,000 CONTRACTUAL SERVICES 32,033 102,554 50,000 TRANSFERS OUT 230-00-00-91100 TRANSFER TO GENERAL FUND 97,500 TRANSFERS OUT 97,500 TOTAL EXPENDITURES 97,500 32,033 102,554 0 50,000 NET OF REVENUES/APPROPRIATIONS - FUND 230 2,504 18,276 (52,554) 50,000 0 BEGINNING FUND BALANCE 2,504 20,779 20,779 70,779 ENDING FUND BALANCE 2,504 20,780 (31,775) 70,779 70,779 189 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Fund 234 - SPECIAL SERVICE AREA #14 (HEARTLAND FIELDS) ESTIMATED REVENUES PROPERTY TAXES 234-00-00-30200 PROPERTY TAX - SSA 2,500 2,491 2,000 2,000 2,000 PROPERTY TAXES 2,500 2,491 2,000 2,000 2,000 OTHER INCOME 234-00-00-37100 INVESTMENT INTEREST 1 67 OTHER INCOME 1 67 TOTAL ESTIMATED REVENUES 2,501 2,558 2,000 2,000 2,000 EXPENDITURES CONTRACTUAL SERVICES 234-00-00-61100 MAINTENANCE-GROUNDS 840 2,500 1,000 1,000 CONTRACTUAL SERVICES 840 2,500 1,000 1,000 TRANSFERS OUT 234-00-00-91100 TRANSFER TO GENERAL FUND 500 500 500 500 TRANSFERS OUT 500 500 500 500 TOTAL EXPENDITURES 500 840 3,000 1,500 1,500 NET OF REVENUES/APPROPRIATIONS - FUND 234 2,001 1,718 (1,000) 500 500 BEGINNING FUND BALANCE 8,950 10,952 12,670 12,670 13,170 ENDING FUND BALANCE 10,951 12,670 11,670 13,170 13,670 190 | Page Central Business District Tax Increment Finance (#3) Fund ______________________________________________________________________________ FUND 262 On February 11, 2019, the City Council approved Ordinance 2018-70 Adopting Tax Increment Financing for the DeKalb Central Business District TIF (TIF #3). The primary purpose was to promote continuing commercial and residential rehabilitation and redevelopment in the central business district. Until December 31, 2021, TIF #1 supported several significant redevelopment projects in the central business district. TIF #3 was created to continue the momentum of redevelopment. Several properties that previously existed within TIF #1, including Cornerstone, Plaza DeKalb, Agora Tower, and Johann Suites, now lie within the boundaries of TIF #3. The TIF Act does allow for municipalities to “port” funding between TIF districts, so long as they are contiguous to each other, and the use of transferred funds has eligible benefits to the TIF district to which funds are ported. In FY2022, $2.65 million was transferred from TIF #1 to TIF #3 as part of the closing of TIF #1. These funds supported ongoing redevelopment projects that were within TIF #1 when approved but are now within the boundaries of TIF #3, as well as other anticipated projects which are allowable under the TIF Act. After January 1, 2022, only TIF #3 has provided funding for private rehabilitation projects based on incremental property tax revenues as defined by Illinois TIF statutes. TIF #3 is substantially smaller in area and revenue than TIF #1 was at its peak. At one time, TIF #1 generated over $7 million a year in incremental revenue; TIF #3 is expected to generate about $550,000 in FY2024. Likewise, TIF #1 once comprised about 19% of DeKalb’s corporate limits; TIF #3 is basically the downtown central core following IL Rt. 38 from the NIU lagoon eastward to about Seventh Street and extending north and south of Lincoln Highway by about two blocks in either direction. The following projects were funded in FY2023: • Architectural Improvement Program (AIP): $75,000 (estimate). This program principally encourages owners of commercial property to maintain the appearance of their downtown properties. Approved projects are considered on a case-by-case basis and may be provided up to $25,000 in matching funding according to a three-tier system: a 50% reimbursement rate is assigned to eligible major capital improvements; a 25% reimbursement rate is assigned to eligible minor capital improvements; and a 10% reimbursement rate is assigned to defray the costs of deferred maintenance. All funding is subject to final approval by the DeKalb City Council. • Private Property Rehabilitation:  200 S. Fourth Street: City Hall Suites. This redevelopment project will be an “earner.” The one-block area has been off the tax rolls since the late 1960s so once the property is occupied all the assessed valuation will count toward the calculation of the increment. The former city hall previously located here has been 191 | Page  razed, the excavator has crushed and removed the masonry debris for recycling (except what has been used on the site), and the main building “pad” has been prepped. The general contractor, Pappas Development, has also replaced old water and sewer mains as well as electrical and natural gas services. In late October, 2023 the final $247,154.16 of the $750,000 TIF #3 grant was allocated. The developer, John Pappas, has enclosed and bricked two of the three buildings, and the third should be enclosed before the December holidays.  151 N. Fourth Street. The Council authorized a development agreement with Richard Sinclair Properties LLC for the redevelopment of the tired, two-story mixed-use building at the southwest corner of Fourth and E. Locust on September 25. The City staff worked with one of the principals, Sam Patterson, who is also part owner of the Grove Restaurant on N. Fourth Street. Mr. Patterson had originally applied for a “forgivable loan” up to the limit of the Architectural Improvement Loan Program ($25,000) but his recent contractor estimates and an updated City code assessment increased the “gap” between the private financing he had arranged (through a local bank and family sources) and the resources he will need to substantially improve the two above-ground floors. Consistent with the JRB intergovernmental agreement of 2020, the City was obligated to disclose the details of this project at least 14 calendar days before Council action. The City Manager sent a detailed assessment of the loan request to JRB members on September 5, and reported his intention to bring it to the Council for action on September 25. Mr. Patterson requested a $92,697 forgivable TIF loan to accompany private equity raised for the renovation of the two habitable floors, which currently contain vacant commercial spaces on the first floor and five mostly vacant apartments on the second floor, in addition to an uninhabitable basement parking area. The owner estimated the “soup to nuts” renovation cost to be approximately $697,050 for the interior and exterior work detailed in the attached renovation budget. Mr. Patterson explained that he planned to tackle an initial investment of $400,000 to get the habitable floors rented and to satisfy the City’s life safety code requirements, then proceed with a second phase as rental income is realized. The last substantial TIF #3 redevelopment loan was extended to Pappas Development in September 2020 in the amount of $750,000 with a 20-year term for the razing of the former city hall on S. Fourth Street and the erection of three, two-story apartment buildings. When complete, the buildings will contain 76 units at an approximate construction cost of $7 million. The estimated property tax increment generated from this TIF investment is expected to be over $4.2 million- -a remarkably high incremental gain because the property had not been on the tax rolls for about 60 years. Prior to the City Hall Suites development agreement, Matt Gehrke of Swedberg Construction was granted a TIF #3 forgivable loan on June 22, 2020, in the amount of $159,920 with a 20-year term to incentivize the relocation of Swedberg Construction to 421 Grove Street, renovating a former dealership that had been underutilized for many years. For the Pappas and Gehrke projects, the underlying 192 | Page  properties were both in TIF #1 and TIF #3 at the time, and much of the available TIF rehab funding had been “ported” from TIF #1 for private property rehabilitation before TIF #1 was terminated on December 31, 2021. It should also be noted that the largest TIF #3 project since the district’s inception was the reconfiguration of Lincoln Highway from First Street to Fourth Street, which likewise benefited from ported TIF #1 monies and cost approximately $1.98 million including design and construction engineering in 2021-2022. The protocols for the Pappas and Gehrke loans were established by the Council on May 26, 2020, just prior to the May 27, 2020, release of the forensic audit performed on DeKalb’s TIF #1 financials from 2009 through 2018. The Council sharpened its criteria for determining the scope of TIF assistance to private developers by requiring each private property project to amortize its obligation from enhanced property tax revenue within the term of the project’s applicable mortgage and promissory note with the City. Upon the expiration of the term, any outstanding balance not offset by incremental revenues over the term of the note would immediately become due and payable. In the calculation and projection of the property tax increment over 20 years, close collaboration with the DeKalb Township Assessor has been very valuable. All improvements do not contribute to a higher projected EAV. For example, roof replacement, painting, carpet replacement, and other types of maintenance do not move the needle. However, electrical and plumbing upgrades, new and improved windows and exterior doors, structural improvements, etc., may be counted toward incremental EAV gains. In the case of the property at 151 N. Fourth Street, the substantial list of planned alterations and improvements are expected to increase the property’s EAV from $74,151 to $129,733 over 20 years, as shown in the following table: Factors in Calculation Valuation Notes Full Market Value at Last Sale (2021) $212,500 Pre-Rehab EAV (2023) $74,151 Pre-Rehab Property Taxes $7,495 Rate: .10108 Estimated Private Rehab investment $400,000 Estimated EAV After Rehab $129,733 1/3 of $389,199 Taxes Owing After Rehab $12,130 Est. 2023 Rate: 0.09350 Projected Additional Tax Increment Over 20 Yrs. $92,697 $12,130-$7,495 x 20 The proposed improvements will conservatively generate an estimated $92,697 over a 20- year period based on the property’s present and projected EAV, with no allowance for increases in property value owing to the annual multiplication factor. The funds are available in the proposed TIF #3 budget for FY2024 under line item 262-00-00-69199. By a unanimous vote of 8-0, the Council approved the proposed loan to Mr. Patterson on September 25. 193 | Page The following significant TIF#3 spending is projected for FY2024: • Private Property Rehabilitation: $192,697 (151 N. Fourth Street final payment plus $100,000 in Architectural Improvement Program grants). • Other Capital Improvements: $290,000 (estimated). • TIF Surplus Distribution: $165,000, based on 30% of the property taxes received. 194 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET BUDGET Fund 262 - TIF FUND #3 ESTIMATED REVENUES PROPERTY TAXES 262-00-00-30300 PROPERTY TAX - TIF 458,809 507,254 519,935 519,935 550,000 PROPERTY TAXES 458,809 507,254 519,935 519,935 550,000 OTHER INCOME 262-00-00-37100 INVESTMENT INTEREST 1,097 30,553 6,000 35,000 27,000 262-00-00-38200 REFUNDS / REIMBURSEMENTS 0 8,713 0 0 0 OTHER INCOME 1,097 39,266 6,000 35,000 27,000 TRANSFERS IN 262-00-00-39260 TRANSFER FROM TIF #1 FUND 2,650,000 0 19,471 0 0 TRANSFERS IN 2,650,000 0 19,471 0 0 TOTAL ESTIMATED REVENUES 3,109,906 546,520 545,406 554,935 577,000 EXPENDITURES CONTRACTUAL SERVICES 262-00-00-62100 FINANCIAL SERVICES 556 8,660 8,830 8,830 9,272 262-00-00-63800 CONTRACTED SERVICES 0 6,111 6,294 6,300 1,890 262-00-00-65300 LEGAL EXPENSES & NOTICES 2,245 555 5,304 3,500 4,000 262-00-00-68600 TIF SURPLUS DISTRIBUTION 0 152,176 155,981 155,981 165,000 262-00-00-69199 PRIV PROP REHAB / REDEVELOP 624,588 759,729 347,154 347,154 192,697 CONTRACTUAL SERVICES 627,389 927,231 523,563 521,765 372,859 EQUIPMENT 262-00-00-83900 OTHER CAPITAL IMPROVEMENTS 127,053 1,868,349 500,000 480,000 290,000 EQUIPMENT 127,053 1,868,349 500,000 480,000 290,000 TOTAL EXPENDITURES 754,442 2,795,580 1,023,563 1,001,765 662,859 NET OF REVENUES/APPROPRIATIONS - FUND 262 2,355,464 (2,249,060) (478,157) (446,830) (85,859) BEGINNING FUND BALANCE 1,271,337 3,626,801 1,377,741 1,377,741 930,911 ENDING FUND BALANCE 3,626,801 1,377,741 899,584 930,911 845,053 195 | Page This page has been intentionally left blank. 196 | Page Community Development Block Grant Fund ______________________________________________________________________________ Fund 280 In 1993, the U. S. Census Bureau notified the City that DeKalb County was considered to be part of the Chicago primary metropolitan statistical area (PMSA). The PMSA designation enabled DeKalb, as the largest municipality within the County, to be considered by the U.S. Department of Housing and Urban Development (HUD) as an entitlement community and eligible to receive direct funding through the Community Development Block Grant (CDBG) program on an annual basis. Funding is subject to annual federal appropriation and can only be used for CDBG eligible activities. The CDBG program year runs from April 1 through March 31. The City’s CDBG program extends grants to local Human Services agencies to support such diverse social programs as the transportation of low-income children to and from daycare to school, a Summer Meals Program at University Village for low-income children, and additional services for the elderly, homeless, and survivors of domestic violence. The FY2023 allocations also included the funding of engineering and construction costs for re-surfacing projects in low- to-moderate income neighborhoods such as Lucerne Lane ($183,572) and Greenbrier Road (199,874). Additionally, traffic calming and safety improvements were installed at the busy corner of W. Ridge and Blackhawk Roads ($199,893). In 2023, numerous calls were received from individual residents for rental assistance, utility assistance, food, shelter for the homeless, and other needs. The Community Services Coordinator, Jennifer Yochem, worked with each caller to identify their needs and connect them to the appropriate community resources if the needs were for services the City does not provide. Ms. Yochem also administers the separate Human Services Funding Program that is funded by the General Fund through the Community Development Department (#100-40-41-62700). The FY2024 program will be brought to the City Council for review and approval in January after further consultation with the federal Department of Housing and Urban Development (HUD) at the end of this fiscal year. 197 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Fund 280 - CDBG FUND ESTIMATED REVENUES INTERGOVERNMENTAL REVENUES 280-00-00-33100 FEDERAL GRANTS 920,497 429,177 1,020,000 1,020,000 454,770 INTERGOVERNMENTAL REVENUES 920,497 429,177 1,020,000 1,020,000 454,770 TOTAL ESTIMATED REVENUES 920,497 429,177 1,020,000 1,020,000 454,770 EXPENDITURES COMMODITIES 280-00-00-52000 OFFICE SUPPLIES 106 100 100 100 COMMODITIES 106 100 100 100 CONTRACTUAL SERVICES 280-00-00-62100 FINANCIAL SERVICES 746 842 1,028 1,028 1,048 280-00-00-62700 HUMAN & SOCIAL SERVICES 224,599 80,996 60,000 60,000 59,290 280-00-00-63700 DEVELOPMENTAL SERVICES 11,170 13,524 80,000 80,000 79,000 280-00-00-63750 DEMOLITION SERVICES 248,679 280-00-00-65300 LEGAL EXPENSES & NOTICES 1,246 694 700 700 700 280-00-00-66100 DUES & SUBSCRIPTIONS 50 75 75 75 280-00-00-66200 TRAINING/TRAVEL 800 800 300 CONTRACTUAL SERVICES 486,490 96,056 142,603 142,603 140,413 EQUIPMENT 280-00-00-83000 STREET IMPROVEMENTS 26,704 241,735 236,960 280-00-00-83900 OTHER CAPITAL IMPROVEMENTS 317,559 800,000 800,000 EQUIPMENT 344,263 241,735 800,000 800,000 236,960 TRANSFERS OUT 280-00-00-91100 TRANSFER TO GENERAL FUND 89,636 91,386 77,297 77,297 77,297 TRANSFERS OUT 89,636 91,386 77,297 77,297 77,297 TOTAL EXPENDITURES 920,495 429,177 1,020,000 1,020,000 454,770 NET OF REVENUES/APPROPRIATIONS - FUND 280 2 0 0 0 0 BEGINNING FUND BALANCE ENDING FUND BALANCE 2 0 0 0 0 198 | Page Housing Rehabilitation Fund ______________________________________________________________________________ FUND 285 Beginning in the late 1970s and continuing through 1983, the City received Community Development Assistance Program (CDAP) and various other federal and state grants that were used for housing rehabilitation activities. A fund was established as the pass-through account for the grant and as the repository of loan repayments and recaptured funds that were restricted for reuse for similar programs. In 1993, the City became an entitlement community through the Federal Community Development Block Grant program. At that time, a new fund (CDBG Fund) was set up to manage the annual grant allocation and the prior fund was maintained as the revolving loan fund for CDBG. In addition to CDBG, the City periodically receives other grants and this fund is used as the pass-through for those as well. The use or reuse of dollars in this fund carries substantial restrictions and cannot be co-mingled with other City, State or Federal revenues. Funds are budgeted to assist very low (50% AMI) and extremely low (30% AMI) income residents with home repair costs that exceed the $5,000 CDBG Program limit when the homeowner has no personal resources to cover the overage and the overage amount is not excessive. Use of this fund is subject to review and approval of the City Manager prior to the commitment of funds. Funds are also available for the emergency demolition of residential structures and minor expenses related to this activity. Because these funds were originally CDBG funds, the City must exercise caution to ensure that any use of these monies meets all HUD guidelines and requirements for use of their funds. For the last few years this fund has had very little activity as no qualifying projects have been identified. FY 2024 is expected to be a dormant year again. 199 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Fund 285 - HOUSING REHAB FUND ESTIMATED REVENUES OTHER INCOME 285-00-00-37100 INVESTMENT INTEREST 35 301 48 285-00-00-38200 REFUNDS / REIMBURSEMENTS 633 OTHER INCOME 35 934 48 TOTAL ESTIMATED REVENUES 35 934 48 EXPENDITURES CONTRACTUAL SERVICES 285-00-00-62100 FINANCIAL SERVICES 278 427 285-00-00-63700 DEVELOPMENTAL SERVICES 70 55 20,000 20,000 25,000 285-00-00-65300 LEGAL EXPENSES & NOTICES CONTRACTUAL SERVICES 348 482 20,000 20,000 25,000 TOTAL EXPENDITURES 348 482 20,000 20,000 25,000 NET OF REVENUES/APPROPRIATIONS - FUND 285 (313) 452 (19,952) (20,000) (25,000) BEGINNING FUND BALANCE 70,594 70,281 70,734 70,734 50,734 ENDING FUND BALANCE 70,281 70,733 50,782 50,734 25,734 200 | Page Foreign Fire Insurance Tax Fund ______________________________________________________________________________ FUND 290 The Foreign Fire Insurance Tax Fund was created in 1992 by the City Council in compliance with applicable state statutory provisions. A two-percent tax is imposed on the gross receipts of the fire insurance premiums provided by insurance companies not located within Illinois, and for property located in the City. These taxes, along with similar taxes imposed by most Illinois municipalities, are collected by the state and distributed to municipalities on a per capita basis. By ordinance, the Foreign Fire Insurance Tax Board members are elected by the Fire Department from among its members. This Board is empowered to expend Foreign Fire Insurance Tax proceeds for the “maintenance, benefit, and use of the Fire Department.” This Board cannot expend tax proceeds for projects not given budget approval by the City Council. The City Council cannot authorize the expenditures of tax proceeds for projects not approved by the Board. Consequently, the system requires the City Council and the Board to mutually agree on the expenditures. Expenditures from this fund are used for the betterment of the Fire department. Typically, they have included station improvements, station repairs, furniture for stations, personal protection equipment and physical fitness equipment. The FY2024 allocation is estimated to be $75,147. The planned expenditures in FY2024 total $74,491 and include the following: • Recall jackets for new members; • 10 new Fire helmets; • Replacement beds; • Replacement appliances; • Carpet Cleaning; • Workout equipment; • Kitchen supplies; • Support for station upgrades. 201 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Fund 290 - FOREIGN FIRE INSURANCE TAX ESTIMATED REVENUES OTHER INCOME 290-00-00-31950 MISCELLANEOUS TAXES 72,923 76,899 81,000 81,000 75,147 OTHER INCOME 72,923 76,899 81,000 81,000 75,147 TOTAL ESTIMATED REVENUES 72,923 76,899 81,000 81,000 75,147 EXPENDITURES COMMODITIES 290-00-00-51300 SUPPLIES/PARTS-BUILDINGS 21,459 290-00-00-51500 SUPPLIES/PARTS-EQUIPMENT 4,526 290-00-00-52800 FIREFIGHTING SUPPLIES & EQUIPMENT 12,476 11,270 12,600 12,600 8,600 290-00-00-53300 SMALL TOOLS & EQUIPMENT 3,157 290-00-00-54000 UNIFORMS/PROTECTIVE CLOTHING 7,541 11,191 290-00-00-59999 COMMODITIES 9,736 11,500 11,500 11,500 COMMODITIES 49,159 32,197 24,100 24,100 20,100 CONTRACTUAL SERVICES 290-00-00-61300 MAINTENANCE-BUILDINGS 5,956 3,575 2,200 2,200 2,200 290-00-00-61500 MAINTENANCE-EQUIPMENT 4,159 5,500 5,500 5,500 290-00-00-65200 MARKETING ADS & PUBLIC INFO 1,054 2,263 2,500 2,500 2,500 290-00-00-66100 DUES & SUBSCRIPTIONS 6,633 2,922 3,191 3,191 3,191 CONTRACTUAL SERVICES 13,643 12,919 13,391 13,391 13,391 EQUIPMENT 290-00-00-86000 EQUIPMENT 14,845 33,696 39,000 39,000 41,000 290-00-00-86200 OFFICE FURNITURE & EQUIPMENT 8,766 EQUIPMENT 23,611 33,696 39,000 39,000 41,000 TOTAL EXPENDITURES 86,413 78,812 76,491 76,491 74,491 NET OF REVENUES/APPROPRIATIONS - FUND 290 (13,490) (1,913) 4,509 4,509 656 BEGINNING FUND BALANCE 83,039 69,548 67,635 67,635 72,144 ENDING FUND BALANCE 69,549 67,635 72,144 72,144 72,800 202 | Page Section Six Debt Service Funds • General Fund Debt Service (300) 203 | Page This page has been intentionally left blank. 204 | Page Debt Service Fund ______________________________________________________________________________ General Fund Debt Service (Fund 300) Bond Rating The City’s bond rating was upgraded from A2 to A1 by Moody’s Investors Service on October 5, 2023. The occasion was the completion of a Moody’s review of the City’s financial position in advance of the City’s issuance of General Obligation Bond Series 2023 with a par value of $4,210,000. The purpose of the GO Bond was to fund the construction of a fourth fire station just west of the intersection of S. Annie Glidden Road and W. Taylor Street. Outstanding General Obligation Debt* GO Bonds, Series 2023 - Final Numbers Fiscal General Fund Principal Assumed Assumed Assumed Total Debt Aggregate Year Debt Service* Rate Yield Interest Service Debt Service 1-Jan 1/1 & 7/1 2023 $1,851,919 $1,851,919 2024 $1,862,841 $135,656 $135,656 $1,998,497 2025 $1,861,121 $195,000 5.00% 4.14% $205,625 $400,625 $2,261,746 2026 $1,863,782 $205,000 5.00% 4.09% $195,625 $400,625 $2,264,407 2027 $1,865,256 $215,000 5.00% 4.05% $185,125 $400,125 $2,265,381 2028 $1,458,244 $225,000 5.00% 4.00% $174,125 $399,125 $1,857,369 2029 $1,457,211 $235,000 5.00% 4.01% $162,625 $397,625 $1,854,836 2030 $1,458,000 $245,000 5.00% 4.07% $150,625 $395,625 $1,853,625 2031 $260,000 5.00% 4.12% $138,000 $398,000 $398,000 2032 $275,000 5.00% 4.16% $124,625 $399,625 $399,625 2033 $290,000 5.00% 4.21% $110,500 $400,500 $400,500 2034 $300,000 5.00% 4.35% $95,750 $395,750 $395,750 2035 $320,000 5.00% 4.35% $80,250 $400,250 $400,250 2036 $335,000 5.00% 4.59% $63,875 $398,875 $398,875 2037 $350,000 5.00% 4.59% $46,750 $396,750 $396,750 2038 $370,000 5.00% 4.75% $28,750 $398,750 $398,750 2039 $390,000 5.00% 4.75% $9,750 $399,750 $399,750 2040 Total $13,678,374 $4,210,000 $1,907,656 $6,117,656 $19,796,030 *Includes Series 2010C, 2012A, 2019, and 2020 205 | Page Debt Service Issues Retired Through the Debt Service Fund General Obligation Refunding Bonds of 2010C: In December 2010, the City issued $5,415,000 of General Obligation Refunding Bonds to refinance prior debt at a lower interest cost. The original obligations were issued to finance storm sewer construction, road reconstruction, park land, and initial costs for a police station. The debt service is based on a 13-year amortization schedule with interest ranging from 1.90% to 5.90%. Semi-annual interest payments are due July 1st and January 1st while annual principal payments are due each January 1. The bonds mature on January 1, 2023. General Obligation Bonds of 2012A: In October 2012, the City issued $9,905,000 of G.O. Refunding Bonds for the purpose of constructing a new Police Station. The debt service is based on a 17-year amortization schedule with interest ranging from 2.00% to 2.50%. Semi-annual interest payments are due July 1st and January 1st while annual principal payments are due each January 1. The bonds mature on January 1, 2030. General Obligation Refunding Bonds of 2019: As of December 31, 2018, an outstanding principal balance of $3,905,000 existed for the 2010B G.O. Refunding Bond with interest ranging from 4.25% to 4.75%. In October 2019, the City issued $3,925,000 of G.O. Refunding Bonds to refinance the 2010B bonds at a lower interest cost. The original obligations were issued to finance a public works facility expansion, a new traffic signal, and various road projects. The debt service is based on an 8-year amortization schedule with an interest rate of 1.82%. Semi-annual interest payments will be due July 1st and January 1st while annual principal payments are due each January 1. The bonds mature on January 1, 2028. General Obligation Taxable Series 2020: At the August 17, 2020, meeting of the City Council and the Finance Advisory Committee, the extraordinary impact of the COVID-19 crisis on City finances was described in considerable detail. The estimated $4.5 million drop in general operating revenues, offset in part by an expected infusion of federal Cares Act funding by the end of the calendar year, had posed very substantial challenges. Maintaining the services expected of the Fire, Police and Public Works departments under such reduced revenues was perhaps the singular challenge. It is also important to note that the fall in general operating revenues meant a fall in the City’s General Fund reserve balance, which had been re-built in 2019 after several years of resting below the policy level of 25% of the annual General Fund expenses. To balance the projected 2021 General Fund Budget without further exhaustion of the City’s General Fund reserves, the City Manager proposed an investigation of bond refunding options that might reduce or eliminate the roughly $1.8 million in general obligation debt to be paid from the General Fund in 2021. The re-structuring of the City’s January 1, 2021, and July 1, 2021, principal and interest payments was, in effect, a “scoop and toss.” Debt payments on the pertinent bonds from each of the outstanding City general obligations were moved from Fiscal Year 2021 to Fiscal Years 2028, 2029, and 2030. This process extended the bond terms but at a lower annual debt service level at the end of the terms. The overall increase in debt service over the next 10 years increased; however, by deferring the debt payments from FY2021 to a future date when the full EAV of the Ferrara and Facebook projects should have been realized, the City was arguably in a better position to make those payments, given the fiscal constraints related to the COVID pandemic. The bonds mature on January 1, 2030. 206 | Page General Obligation Bonds of 2023: The City Council approved the bond issuance on September 11, 2023 (Ordinance 2023-035) after determining, in conjunction with the City’s Finance Advisory Committee on August 21, that the construction and staffing of a fourth City fire station was a priority spending objective for the Fiscal Year 2024 City Budget. In the public discussions about Station 4, the City Manager proposed, and the Council supported, the funding of the construction through a 15-year, $4.265 million general obligation bond with an annual levy ceiling of $425,000 (with the annual 2023 bond debt service to be abated in full). The City’s Ground Emergency Medical Transportation (GEMT) Fund will provide annual assistance with the 2023 Bond payments through 2027, when the City will have retired sufficient annual debt service to assume a greater share of the City’s aggregate General Fund-supported debt. As illustrated in the table above, after 2030 the assumed principal and interest on the aggregate City G.O. debt will be substantially reduced. Debt Impact on Operations All the City’s General Obligation Bonds are being repaid by nonspecific sources from the General Fund. With the passage of the original bond ordinances, every year the DeKalb County Clerk automatically prepares an annual property tax levy extension for the payment of the debt service unless an annual tax abatement ordinance is filed with the Clerk’s office. The City has annually abated the tax levies as alternate revenue sources have been sufficient to pay the debt service. The City currently has no intention to utilize property taxes to pay the bonds and plans to file the abatement ordinance each year for the remaining life of the bonds. The amount being paid from the Debt Service Fund is funded by an annual transfer from the General Fund, and the Library bonds are paid directly from the General Fund. The net effect on operations is that this amount of annual General Fund revenue (about 3.7% of total General Fund revenue in 2024) is unavailable for other projects until the bonds mature. 207 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Fund 300 - DEBT SERVICE-GENERAL FUND ESTIMATED REVENUES SALES & USE TAXES 300-00-00-31400 HOTEL/MOTEL TAX 64,367 69,136 SALES & USE TAXES 64,367 69,136 FINES 300-00-00-35300 PARKING FINES 37,100 28,035 FINES 37,100 28,035 OTHER INCOME 300-00-00-37100 INVESTMENT INTEREST 2,769 22,317 OTHER INCOME 2,769 22,317 TRANSFERS IN 300-00-00-39100 TRANSFER FROM GENERAL FUND 1,880,280 1,750,000 1,862,841 1,998,497 TRANSFERS IN 1,880,280 1,750,000 1,862,841 1,998,497 TOTAL ESTIMATED REVENUES 101,467 1,980,220 1,750,000 1,885,158 1,998,497 EXPENDITURES CONTRACTUAL SERVICES 300-00-00-62100 FINANCIAL SERVICES 2,927 2,248 2,650 2,650 2,650 CONTRACTUAL SERVICES 2,927 2,248 2,650 2,650 2,650 DEBT SERVICES 300-00-00-75000 DEBT SERVICE - PRINCIPAL 1,535,000 1,595,000 1,605,921 1,862,841 300-00-00-76000 DEBT SERVICE - INTEREST 318,291 256,920 256,920 135,656 300-00-00-79800 PAYMENT TO ESCROW AGENT (30) 300-00-00-79850 BOND ISSUANCE COSTS 40,450 DEBT SERVICES (30) 1,853,291 1,851,920 1,903,291 1,998,497 TOTAL EXPENDITURES 2,897 1,855,539 1,854,570 1,905,941 2,001,147 NET OF REVENUES/APPROPRIATIONS - FUND 300 98,570 124,681 (104,570) (20,783) (2,650) BEGINNING FUND BALANCE (6,781) 91,789 216,470 216,470 195,687 ENDING FUND BALANCE 91,789 216,470 111,900 195,687 193,037 208 | Page Section Seven Capital Project Funds • Capital Spending Overview • Capital Projects Fund (400) • Capital Equipment Replacement Fund (420) 209 | Page This page has been intentionally left blank. 210 | Page Capital Spending Overview ______________________________________________________________________________ Capital Definition As noted in the Capital Asset Policy (see Appendix), “capital expenditures” are defined as items with a cost of $25,000 or more and a useful life of more than one year; these are the items that are capitalized and depreciated in the City’s financial statements. Major capital expenditures are generally purchased out of the Proprietary Funds for Water System assets or Airport assets, out of the GEMT Fund for Fire Department assets, out of the Transportation Fund for transit-related purchases, and out of the City’s two Capital Projects Funds: the Capital Projects Fund (400) or Capital Equipment Replacement Fund (420). A separate policy, the Capital Equipment Replacement Fund Policy (see Appendix), governs the purchases from Fund 420. Capital Funding The City’s capital funding comes from a variety of resources. The most stable resource is the local motor fuel tax. Since 2008, the City has imposed a tax per gallon on the purchase of motor fuel, including gasoline, gasohol, compressed natural gas, and diesel fuel sold at retail. Since January 1, 2020, the tax rate has been 9.5 cents per gallon. For FY2024, the local fuel tax rate of 9.5 cents per gallon remains split between road expenditures (7 cents), airport expenditures (1.5 cents), and vehicle replacement (1 cent) as shown in the pie chart below: Local Motor Fuel Tax Allocation Vehicles 10.53% Airport 15.79% Roads 73.68% Another recurring funding source is the lease payments from telecommunication companies with antennae on our water towers (reported as “Rental Income”). The City has about eight recurring lease agreements with annual escalators of 2.0%-3.5%. The exception are the leases with the DeKalb School District and Kishwaukee Radio Club, that have minimal fixed annual payments. 211 | Page The cannabis sales tax promises to be a reliable source of recurring capital revenue. A municipal cannabis retailers’ occupation tax was established in November 2019 and is imposed at the rate of three percent (3%) of the gross receipts from lawful cannabis sales. The City has two State and local licensed companies progressing toward their opening. A portion of the anticipated cannabis sales tax has been budgeted in the Capital Equipment Replacement Fund to help fund the replacement of City vehicles. Grant revenue is a less predictable source and is often tied to eligible street and infrastructure projects, and occasionally public safety capital equipment. These are typically one-time revenues that must be pursued when a specific project has been identified, and if funding doesn’t materialize the project most likely will be deferred. Under certain conditions, capital financing is a useful method to fund projects. The City entered a 5-year capital lease arrangement in late 2020 for vehicle purchases that had been deferred, and a second phase of vehicles were received in early to mid-2021. These leases contain variable buy- out clauses if the City does not renew them at the end of the lease terms, which will need to be added to future budgets. Other vehicles were purchased with low interest financing terms, and repayments are noted as “capital loans” because the City owns the assets. There are no near- term plans to enter any additional leases or financing arrangements due to the unfavorable interest rate environment and to limit the City’s external debt. Capital Expenditures Planning The City’s 5-year Capital Improvement Program (CIP) plan has expired but the Council approved a transitional plan in the 2022-2024 Financial Plan to provide fiscal guidance until a more detailed, comprehensive long-term CIP could be developed. Currently, the process to identify funded projects begins with requests coming from individual departments in the form of capital wish- lists and they are added to the current year budget only as funds permit. For vehicle purchases, the Police Department, Fire Department, Public Works Department (including streets, water, and airport) and Community Development Department identify annual needs and submit them during the departmental input phase of the budget process. Information technology needs are submitted by the Information Technology Director and the Police and Fire Departments. Major building renovations or enhancements are initiated by Public Works and the City Manager. Road reconstruction is monitored by the City Engineer and a pavement index is used to determine the streets and other infrastructure that are in most urgent need of repair. Larger capital projects including an annual street maintenance program of about $2.5 million are vetted with the City Council before moving forward. 212 | Page Capital Projects Fund ______________________________________________________________________________ FUND 400 For FY2024, out of the local fuel tax rate of 9.5 cents per gallon, 7 cents per gallon is dedicated to road expenditures in the Capital Projects Fund. This fund primarily supports annual street maintenance, public building improvements, alley repairs, and other capital costs. Proceeds from the local tax on motor fuel can be used for any public capital improvements. The City owns and maintains about 130 centerline miles of roads, of which 74.8% (97.3 miles) are residential streets. The City’s annual street maintenance is addressed by an alternating funding cycle between the State MFT Fund (Fund 210) and the Capital Projects Fund (Fund 400). In FY2024, Fund 210 finance the greater share of the street maintenance program. In FY2024, the Fund will support the following capital expenses: • Street and alley maintenance and engineering ($625,000) • IT equipment, network infrastructure upgrades, and public safety cameras ($65,000) • Miscellaneous building improvements ($20,000) • Non-TIF architectural improvement program ($70,000) • Barb City Manor annual grant ($50,000) • Year 3 of 5 of capital lease payments for the City’s License Plate Readers of $29,211, further detailed below: 2022 2023 2024 2025 2026 Total Principal $29,211 $22,613 $24,108 $25,701 $27,400 $129,033 Interest - 6,598 5,103 3,510 1,811 17,022 Total $29,211 $29,211 $29,211 $29,211 $29,211 $146,055 213 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Fund 400 - CAPITAL PROJECTS FUND ESTIMATED REVENUES SALES & USE TAXES 400-00-00-31600 HOME RULE MOTOR FUEL TAX 947,167 930,053 892,000 892,000 935,000 SALES & USE TAXES 947,167 930,053 892,000 892,000 935,000 INTERGOVERNMENTAL REVENUES 400-00-00-33200 STATE GRANTS 1,935,389 1,362,739 400-00-00-33300 LOCAL GRANTS 10,000 50,000 50,000 10,000 INTERGOVERNMENTAL REVENUES 1,935,389 1,372,739 50,000 50,000 10,000 OTHER INCOME 400-00-00-37100 INVESTMENT INTEREST 7,200 5,000 5,000 5,000 400-00-00-38100 MISCELLANEOUS REVENUE 142,500 400-00-00-38200 REFUNDS / REIMBURSEMENTS 1,158,107 21,581 21,581 400-00-00-38825 LOAN PROCEEDS 129,033 OTHER INCOME 142,500 1,294,340 26,581 26,581 5,000 TRANSFERS IN 400-00-00-39100 TRANSFER FROM GENERAL FUND 22,500 TRANSFERS IN 22,500 0 0 0 0 TOTAL ESTIMATED REVENUES 3,047,556 3,597,132 968,581 968,581 950,000 EXPENDITURES COMMODITIES 400-00-00-51600 SUPPLIES/PARTS-TECHNOLOGY 22,000 22,000 5,000 COMMODITIES 22,000 22,000 0 0 5,000 CONTRACTUAL SERVICES 400-00-00-61300 MAINTENANCE-BUILDINGS 82,311 116,667 75,000 75,000 75,000 400-00-00-61450 MAINTENANCE-SIDEWALKS 11,548 25,000 25,000 25,000 400-00-00-62300 ARCHITECT/ENGINEERING SERVICES 246,374 320,161 80,000 80,000 50,000 400-00-00-63800 CONTRACTED SERVICES 43,200 16,354 50,000 50,000 50,000 400-00-00-65400 TAXES, LICENSES, & FEES 11,621 400-00-00-69199 PRIV PROP REHAB / REDEVELOP 70,000 70,000 70,000 400-00-00-69700 SPECIAL PROJECTS 10,000 58,000 58,000 60,000 400-00-00-69710 DOWNTOWN ENHANCEMENTS 50,000 CONTRACTUAL SERVICES 383,506 474,730 358,000 358,000 380,000 DEBT SERVICES 400-00-00-79000 CAPITAL LEASE PRINCIPAL 29,211 22,613 22,613 25,000 400-00-00-79100 CAPITAL LEASE INTEREST 6,598 6,598 6,300 DEBT SERVICES 0 29,211 29,211 29,211 31,300 EQUIPMENT 400-00-00-82000 BUILDINGS & IMPROVEMENTS 18,550 443,731 20,000 400-00-00-83000 STREET IMPROVEMENTS 1,235,661 1,792,718 200,000 25,000 25,000 400-00-00-83050 STREET MAINTENANCE 321,572 1,147,747 500,000 400-00-00-83100 ALLEY IMPROVEMENTS 18,574 150,000 100,000 400-00-00-83200 STORM SEWER IMPROVEMENTS 2,060 4,800 60,000 60,000 35,000 400-00-00-83900 OTHER CAPITAL IMPROVEMENTS 23,854 50,000 10,000 10,000 400-00-00-86000 EQUIPMENT 129,033 15,000 400-00-00-86100 TECHNOLOGY EQUIPMENT 284,383 177,807 223,000 223,000 65,000 EQUIPMENT 1,904,654 3,845,836 533,000 318,000 770,000 TOTAL EXPENDITURES 2,310,160 4,371,777 920,211 705,211 1,186,300 NET OF REVENUES/EXPENDITURES - FUND 400 737,396 (774,645) 48,370 263,370 (236,300) BEGINNING FUND BALANCE 414,454 1,151,849 377,204 377,204 640,574 ENDING FUND BALANCE 1,151,850 377,204 425,574 640,574 404,274 214 | Page Capital Equipment Replacement Fund ______________________________________________________________________________ Fund 420 The Capital Equipment Replacement Fund accounts for the acquisition costs for any new vehicle purchase or the replacement of major equipment and vehicles for the City. The Fleet Replacement Fund (Fund 410) was closed in FY2017, combined with the Equipment Fund (Fund 420) in the FY2018 budget, and renamed the Capital Equipment Replacement Fund. Since November 2019 the City has dedicated one cent of its 4-cent increase in the local fuel tax to fleet maintenance and thereby added about $120,000 to the annual revenues for such purposes. Other recurring fund sources include lease payments from telecommunication companies with antennae on our water towers (“Rental Income”). Previously, E911 Board payments (“Reimbursements”) were recognized here but in FY 2023 they were moved to the General Fund as they must be legally spent on the costs of 911 Dispatching. Estimated sales tax revenue from two new cannabis dispensaries has been added to FY 2024 revenue. Conservatively, in the event the openings do not generate the estimated revenue, a $200,000 “Transfer In” from the General Fund has also been budgeted to shore up the fund. For FY2024, several outright vehicle purchases are proposed in lieu of leasing to limit the debt exposure from capital leasing in an unfavorable interest rate environment. In FY2024, the following expenditures are planned: Vehicles: • Building Inspection Vehicle ($42,500) • Crime Free Housing Bureau Sedan ($42,500) Police Squad Replacements/Upfitting (totaling $260,000): • 4 Squad Replacements Public Works Vehicles (totaling $401,840): • Used 2017 Mack Single Axle Dump with Wing Plow from DeKalb Township ($150,000) • Utility Tractor ($75,000) • Two F250 4x4 Pickups with plow packages ($126,210) • One F250 4x4 Pickup without Plow ($50,630) 215 | Page No new leases are proposed. The existing lease package and its ongoing cost is shown in the following table: Capital Lease Debt Service to Maturity 2022 2023 2024 2025 2026 Total Principal $67,814 $72,150 $76,764 $103,283 $41,179 $361,190 Interest 20,535 16,198 11,586 6,678 429 55,426 Total $88,349 $88,348 $88,350 $109,961 $41,608 $416,616 Additionally, existing loan repayment from prior financed equipment is shown in the following table: Capital Loan Debt Service to Maturity 2022 2023 2024 2025 2026 2027 Total Principal $145,571 $141,657 $144,859 $116,303 $78,580 $16,662 $643,632 Interest 13,699 9,285 6,084 2,903 888 - 32,859 Total $159,270 $150,942 $150,943 $119,206 $79,468 $16,662 $676,491 216 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Fund 420 - CAPITAL EQUIPMENT REPLACEMENT FUND ESTIMATED REVENUES SALES & USE TAXES 420-00-00-31260 SALES TAX 200,000 300,000 420-00-00-31600 HOME RULE MOTOR FUEL TAX 135,308 132,868 120,000 120,000 120,000 SALES & USE TAXES 135,308 132,868 320,000 120,000 420,000 OTHER INCOME 420-00-00-34900 RENTAL INCOME 218,260 190,793 179,293 190,000 190,000 420-00-00-37100 INVESTMENT INTEREST 103 13,984 6,000 16,865 15,000 420-00-00-37150 INTEREST INCOME-LEASES 52,437 420-00-00-38100 MISCELLANEOUS REVENUE 33,333 420-00-00-38200 REFUNDS & REIMBURSEMENTS 206,023 216,340 240 240 240 420-00-00-38600 SALES OF SURPLUS PROPERTY 84,735 15,522 3,000 109,000 20,000 420-00-00-38700 CAPITAL LEASE/LOAN ISSUANCE 305,464 331,937 OTHER INCOME 847,918 821,013 188,533 316,105 225,240 TRANSFERS IN 420-00-00-39100 TRANSFER FROM GENERAL FUND 25,000 200,000 200,000 200,000 420-00-00-39200 TRANSFER FROM TRANSPORTATION FUND 200,000 TRANSFERS IN 25,000 0 200,000 200,000 400,000 TOTAL ESTIMATED REVENUES 1,008,226 953,881 708,533 636,105 1,045,240 EXPENDITURES CONTRACTUAL SERVICES 420-00-00-40002 LEASE PURCHASE CONTRACTS 72,408 420-00-00-61700 MAINTENANCE-VEHICLES 20,000 20,000 20,000 CONTRACTUAL SERVICES 72,408 0 20,000 20,000 20,000 DEBT SERVICES 420-00-00-77000 LOAN PRINCIPAL 16,667 145,570 141,657 141,657 141,657 420-00-00-78000 LOAN INTEREST 13,700 9,285 9,285 9,285 420-00-00-79000 CAPITAL LEASE PRINCIPAL 117,056 69,277 72,150 72,150 72,150 420-00-00-79100 CAPITAL LEASE INTEREST 27,277 20,414 16,198 16,198 16,198 DEBT SERVICES 161,000 248,961 239,290 239,290 239,290 EQUIPMENT 420-00-00-86000 EQUIPMENT 3,465 420-00-00-86100 TECHNOLOGY EQUIPMENT 28,702 99,506 50,000 420-00-00-86300 TELEPHONE & RADIO EQUIPMENT 25,000 25,000 25,000 420-00-00-87000 VEHICLES 100,898 489,244 85,000 420-00-00-87010 VEHICLES/UPFITTING - POLICE 419,180 419,180 260,000 420-00-00-87020 VEHICLES/UPFITTING - PUBLIC WORKS 260,000 260,000 401,840 420-00-00-87100 LEASE/LOAN PURCHASE VEHICLES 305,464 331,937 EQUIPMENT 438,529 920,687 704,180 704,180 821,840 TRANSFERS OUT 420-00-00-91650 TRANSFER TO AIRPORT FUND 124,985 TRANSFERS OUT 124,985 0 0 0 0 TOTAL EXPENDITURES 796,922 1,169,648 963,470 963,470 1,081,130 NET OF REVENUES/EXPENDITURES - FUND 420 211,304 (215,767) (254,937) (327,365) (35,890) BEGINNING FUND BALANCE 739,597 950,904 735,137 735,137 407,772 ENDING FUND BALANCE 950,901 735,137 480,200 407,772 371,882 217 | Page This page has been intentionally left blank. 218 | Page Section Eight Enterprise Funds • Water Operations Fund (600) • Water Construction Fund (610) • Water Capital Fund (620) • Airport Fund (650) • Refuse and Recycling Fund (680) 219 | Page This page has been intentionally left blank. 220 | Page Water Operations Fund ______________________________________________________________________________ The City’s water system is comprised of three funds: Water Operations, Water Construction and Water Capital. While budgets are prepared for each of the three funds in the City’s accounting system, for financial statement presentation the three funds are presented as one major proprietary fund, the “Water Fund”. Water Fund Water Water Operations Water Capital Construction (600) (620) (610) FUND 600 The Water Operations Fund provides for the supply, treatment, storage, and distribution of the City's potable water system, which provides approximately 1.1 billion gallons of water annually to DeKalb residents. The City’s Public Water System is a modern, state-of-the-art water supply and serves a population of over 40,000 permanent residents plus non-resident students at Northern Illinois University. Water provided to the residents of DeKalb comes from six deep wells drawing water from deep sandstone aquifers, and three shallow wells that draw water from sand and gravel aquifers. Groundwater is treated at one of five ion-exchange/iron removal water treatment plants. The treatment process produces a high quality water supply by reducing the amount of hardness and iron in the water. Before leaving the treatment plant, groundwater is treated with chlorine and phosphate to ensure the safety of the water supply within our distribution system. In addition, fluoride is added to the water to promote the development of strong teeth. After treatment, the water enters the distribution system for use or is stored in one of the City’s four elevated water towers. The four towers have the ability to store a total of 5.75 million gallons. The elevated towers also maintain system pressure for fire protection. 221 | Page The Utility staff maintain over 181 miles of water main making up the City’s water distribution system. Included in this system are over 2,500 hydrants, 3,000 valves, and 11,000 service lines and water metered accounts. Ensuring all these assets are adequately maintained is critical to a safe, uninterrupted water supply to our community and the ability to always provide fire protection. WATER FUND REVENUE SUMMARY 96.64% WATER SALES REVENUE 0.48% WATER IMPACT FEES 1.62% WATER SERVICE 0.08% CHARGES MISCELLANEOUS 1.19% REVENUE INVESTMENT INTEREST The primary source of funding for the Water Operations Fund is water sales, accounting for over 96% of the total revenue. The Water Department experienced an increase in water sales of 2.0% in 2023 over the prior year. This is the third year in a row that water sales have increased. Prior to this, water sales decreased an average of 1.46% annually over the past 10 years. Water use is expected to stabilize or moderately increase over the next few years because of new development in DeKalb. This includes the new Ferrara, Meta, Amazon, and Kraft/Heinz facilities as well as additional water demands expected as a result of new residential investments such as DeKalb Plaza, Isaac Suites, Home2 Suites, Agora Towers, and Johann Suites, among others. 222 | Page  WATER REVENUES 6,000,000 5,500,000 5,000,000 4,500,000 4,000,000 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 The chart provided below depicts the number of gallons billed to DeKalb residents annually over the past ten years. (Note: 2023 water sales are projected based on sales-to-date) Annual Gallons Billed 1,120,000,000 1,100,000,000 1,080,000,000 1,060,000,000 1,040,000,000 1,020,000,000 1,000,000,000 980,000,000 960,000,000 940,000,000 920,000,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Debt Service: The City has retired its bonded debt but still makes loan payments to the IEPA through the Water Fund, as well as payments on a capital loan and several capital leases. Illinois Environmental Protection Agency Loan #L17-4045: From 2012 through 2014, the City received $271,891 in loan proceeds for the replacement of water mains on Hollister Drive. The debt service is based on a 20-year amortization schedule with interest at 2.295%. Semi-annual principal and interest payments are due April 26th and October 26th. The outstanding principal balance as of December 31, 2023, is $149,856. Illinois Environmental Protection Agency Loan #L17-5473: In 2019, the City received $693,150 in loan proceeds for the replacement of approximately 4,100 feet of water main and services on 223 | Page Joanne Lane, Golfview Place, and Ilehamwood Drive. The debt service is based on a 20-year amortization schedule with interest at 1.84%. Semi-annual principal and interest payments are due June 30 and December 30. The outstanding principal balance as of December 31, 2023, is $562,082. John Deere loader loan: In late 2020, the City opted to purchase a 2020 John Deere 4WD loader for water fund use. Due to the high cost ($189,960), the City determined that financing the purchase was the best option. The debt payments are based on a 5-year repayment schedule with interest at 2.60%. The outstanding principal balance as of December 31, 2023, is $69,304. Capital Leases: In 2020-2021, the City took delivery of three Chevy Silverado trucks at a gross cost of $128,420 as part of the City’s overall capital lease plan. One vehicle was delivered in 2020 and two more in 2021, all with a 5-year lease schedule and variable buy-out options at the end of the term. The outstanding principal balance as of December 31, 2023, is $73,939. 224 | Page  Loan Debt Service to Maturity IEPA Loan #L17-4045 IEPA Loan #L17-5473 John Deere Loader Fiscal Year Principal Interest Principal Interest Principal Interest Total 2024 15,172 3,353 31,648 10,197 39,217 1,422 101,009 2025 15,522 3,002 32,233 9,612 30,087 392 90,848 2026 15,880 2,644 32,829 9,017 60,370 2027 16,247 2,278 33,436 8,410 60,371 2028 16,622 1,903 34,054 7,792 60,371 2029 17,005 1,519 34,683 7,162 60,369 2030 17,398 1,126 35,324 6,521 60,369 2031 17,800 725 35,977 5,868 60,370 2032 18,210 314 36,642 5,203 60,369 2033 37,320 4,526 41,846 2034 38,009 3,836 41,845 2035 38,712 3,133 41,845 2036 39,428 2,418 41,846 2037 40,156 1,689 41,845 2038 40,899 947 41,846 2039 20,732 191 20,923 Total $149,856 $16,864 $562,082 $86,522 $69,304 $1,814 $886,442 Capital Lease Debt Service to Maturity 2024 2025 2026 Total Principal $21,578 $30,741 $21,620 $73,939 Interest $4,027 $2,633 $495 $7,155 Total $25,605 $33,374 $22,115 $81,094 225 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Fund 600 - WATER OPERATIONS FUND ESTIMATED REVENUES LICENSES & PERMITS 600-00-00-34880 WATER IMPACT FEES 31,396 17,660 30,000 20,000 30,000 LICENSES & PERMITS 31,396 17,660 30,000 20,000 30,000 SERVICE CHARGES 600-00-00-34800 WATER SALES REVENUE 5,630,769 5,747,272 5,795,184 5,895,592 6,101,938 600-00-00-34850 WATER SERVICE CHARGES 31,923 101,817 100,000 102,000 102,000 SERVICE CHARGES 5,662,692 5,849,089 5,895,184 5,997,592 6,203,938 OTHER INCOME 600-00-00-37100 INVESTMENT INTEREST 191 20,835 3,200 80,000 75,000 600-00-00-38100 MISCELLANEOUS REVENUE 10,825 17,088 15,000 5,000 5,000 600-00-00-38200 REFUNDS / REIMBURSEMENTS 3,788 5,347 4,000 0 0 600-00-00-38600 SALES OF SURPLUS PROPERTY 0 785 0 0 0 600-00-00-38750 CONTRIBUTED ASSETS 1,696,450 0 0 0 0 OTHER INCOME 1,711,254 44,055 22,200 85,000 80,000 TRANSFERS IN 600-00-00-39248 TRANSFER FROM SSA #28 FUND 28,723 0 0 0 0 600-00-00-39620 TRANSFER FROM WATER CAPITAL FUND 2,143,734 1,748,944 0 0 0 TRANSFERS IN 2,172,457 1,748,944 0 0 0 TOTAL ESTIMATED REVENUES 9,577,799 7,659,748 5,947,384 6,102,592 6,313,938 EXPENDITURES PERSONNEL 600-00-00-41100 WAGES - FULL-TIME 1,241,657 1,364,277 1,484,729 1,484,729 1,663,632 600-00-00-41200 WAGES - PART-TIME 16,780 15,281 9,900 9,900 9,225 600-00-00-41300 WAGES - OVERTIME 133,340 125,142 120,000 120,000 135,000 600-00-00-41400 LONGEVITY PAY 13,250 12,742 13,228 13,228 11,556 600-00-00-41500 CLOTHING ALLOWANCE 6,895 7,466 7,981 7,981 8,911 600-00-00-41550 CAR ALLOWANCE 325 325 325 325 325 600-00-00-42100 EMPLOYER PORTION FICA 100,650 109,161 125,131 125,131 139,891 600-00-00-42200 EMPLOYER PORTION IMRF 201,450 185,756 140,241 140,241 154,799 600-00-00-42500 EMPLOYEE HEALTH INSURANCE 573,642 562,242 473,099 473,099 494,956 600-00-00-42600 WORKER'S COMPENSATION/LIABILITY INSUR 123,050 177,739 48,062 48,062 57,192 600-00-00-48150 CHANGE IN COMP ABS-WATER (24,068) 32,724 0 0 0 600-00-00-48250 IMRF NPO - WATER (675,665) 65,240 0 0 0 600-00-00-48350 NET OPEB-WATER (169,181) (56,300) 0 0 0 PERSONNEL 1,542,125 2,601,795 2,422,696 2,422,696 2,675,487 COMMODITIES 600-00-00-51300 SUPPLIES/PARTS-BUILDINGS 15,178 14,373 20,000 11,000 20,000 600-00-00-51410 SUPPLIES/PARTS-STREETS 54,362 54,852 70,000 60,000 60,000 600-00-00-51500 SUPPLIES/PARTS-EQUIPMENT 17,521 23,985 30,000 25,000 30,000 600-00-00-51600 SUPPLIES/PARTS-TECHNOLOGY 0 0 500 0 500 600-00-00-51700 SUPPLIES/PARTS-VEHICLES 13,754 19,181 20,000 15,000 20,000 600-00-00-51996 POTABLE WATER SYSTEM PARTS 83,029 92,056 100,000 110,000 115,000 600-00-00-52000 OFFICE SUPPLIES 483 1,590 750 750 750 600-00-00-52500 JANITORIAL SUPPLIES 1,206 1,297 1,000 1,000 1,000 600-00-00-53100 ICE/SNOW CONTROL SUPPLIES 136 0 300 0 300 600-00-00-53200 WATER SYSTEM CHEMICALS 212,537 261,233 300,000 300,000 300,000 600-00-00-53300 SMALL TOOLS & EQUIPMENT 12,981 15,298 17,000 17,000 17,000 600-00-00-54000 UNIFORMS/PROTECTIVE CLOTHING 882 631 1,000 700 1,000 600-00-00-55000 FUEL, OIL, & LUBRICANTS 34,838 44,663 45,000 45,000 45,000 COMMODITIES 446,907 529,159 605,550 585,450 610,550 CONTRACTUAL SERVICES 600-00-00-61100 MAINTENANCE-GROUNDS 1,656 1,725 1,800 1,800 1,800 600-00-00-61300 MAINTENANCE-BUILDINGS 20,422 20,039 20,000 65,000 50,000 600-00-00-61400 MAINTENANCE-INFRASTRUCTURE 61,734 34,652 80,000 40,000 50,000 600-00-00-61500 MAINTENANCE-EQUIPMENT 2,366 1,078 2,000 2,000 2,000 600-00-00-61700 MAINTENANCE-VEHICLES 25,839 14,115 25,000 15,000 20,000 600-00-00-61800 MAINTENANCE-SOFTWARE 36,748 17,486 40,000 40,000 45,000 226 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET 600-00-00-62099 PRINTED MATERIALS 1,203 3,849 2,000 3,000 4,000 600-00-00-62100 FINANCIAL SERVICES 7,433 13,246 12,508 12,500 13,500 600-00-00-62200 LEGAL SERVICES 27,000 41,471 36,000 42,000 42,000 600-00-00-62300 ARCHITECT/ENGINEERING SERVICES 237,617 179,778 255,000 100,000 300,000 600-00-00-62500 LAB TESTING SERVICES 4,523 5,219 19,750 12,000 20,000 600-00-00-63800 CONTRACTED SERVICES 24,630 24,850 35,000 35,000 35,000 600-00-00-64000 UTILITIES 108,293 89,766 120,000 100,000 110,000 600-00-00-64100 ELECTRIC SERVICES 176,714 110,079 180,000 220,000 240,000 600-00-00-64200 NATURAL GAS SERVICES 28,408 49,531 35,000 50,000 50,000 600-00-00-64300 REFUSE REMOVAL SERVICES 6,825 9,750 40,000 0 40,000 600-00-00-64500 TELEPHONE SERVICES 6,598 5,798 6,600 6,000 6,000 600-00-00-65100 FREIGHT & POSTAGE 38,041 29,224 43,000 43,000 50,000 600-00-00-65200 MARKETING ADS & PUBLIC INFO 73 182 500 0 500 600-00-00-65400 TAXES, LICENSES, & FEES 80 35 100 100 100 600-00-00-65500 RENTAL-BLDG & EQUIP 300 220 500 0 500 600-00-00-66100 DUES & SUBSCRIPTIONS 2,507 2,732 2,900 2,900 3,000 600-00-00-66200 TRAINING/TRAVEL 2,058 3,005 2,000 2,000 2,000 600-00-00-69200 SURETY BONDS 30,000 30,000 0 30,000 30,000 600-00-00-69800 UTILITY REBATE PROGRAM 1,390 1,158 3,000 2,000 2,000 CONTRACTUAL SERVICES 852,458 688,988 962,658 824,300 1,117,400 OTHER SERVICES 600-00-00-72500 DEPRECIATION-WATER 1,230,319 1,315,359 0 0 0 OTHER SERVICES 1,230,319 1,315,359 0 0 0 DEBT SERVICES 600-00-00-77000 LOAN PRINCIPAL 0 0 84,117 84,117 85,033 600-00-00-78000 LOAN INTEREST 17,402 18,705 16,892 16,892 14,972 600-00-00-79000 CAPITAL LEASE PRINCIPAL 0 3,788 20,270 20,270 21,578 600-00-00-79100 CAPITAL LEASE INTEREST 9,787 7,541 5,336 5,336 4,027 600-00-00-79999 AMORTIZATION COSTS 11,188 10,917 0 0 0 DEBT SERVICES 38,377 40,951 126,615 126,615 125,610 EQUIPMENT 600-00-00-86200 OFFICE FURNITURE & EQUIPMENT 0 0 0 0 7,000 600-00-00-87000 VEHICLES 21,248 0 0 0 0 EQUIPMENT 21,248 0 0 0 7,000 PERMANENT IMPROVEMENT 600-00-00-79998 AMORTIZATION- F/A 0 9,766 0 0 0 PERMANENT IMPROVEMENT 0 9,766 0 0 0 TRANSFERS OUT 600-00-00-91100 TRANSFER TO GENERAL FUND 311,000 311,000 279,500 279,500 279,500 600-00-00-91620 TRANSFER TO WATER CAPITAL FUND 1,271,090 1,602,972 1,762,400 1,762,400 2,008,500 TRANSFERS OUT 1,582,090 1,913,972 2,041,900 2,041,900 2,288,000 TOTAL EXPENDITURES 5,713,524 7,099,990 6,159,419 6,000,961 6,824,047 NET OF REVENUES/EXPENDITURES - FUND 600 3,864,275 559,758 (212,035) 101,631 (510,109) BEGINNING FUND BALANCE 23,922,501 28,246,542 28,801,478 28,801,478 28,903,109 FUND BALANCE ADJUSTMENTS 459,766 (4,821) ENDING FUND BALANCE 28,246,542 28,801,478 28,589,443 28,903,109 28,393,000 227 | Page This page has been intentionally left blank. 228 | Page Water Construction Fund ______________________________________________________________________________ Fund 610 Water Construction Fund 610 receives impact fee revenue from new construction activity. Expenditures are restricted to the construction of new water infrastructure (water mains, wells, water tower and water treatment plants). In FY2023, no monies were expended from this fund. The Water Construction Fund is expected to end the FY2023 budget year with a fund balance of $1,029,676. In FY2024, purchase of a new emergency diesel generator has been budgeted at an estimated cost of $600,000 for the West Lincoln Highway Water Treatment Plant, to service both the water treatment plant and Well No. 10. The generator will increase emergency pumping capacity by over 3 million gallons per day (MGD), bringing the total emergency capacity from 6.7 MGD to over 9.7 MGD. The Utility Division employed the services of an engineering firm to prepare a comprehensive Strategic Water Model and Water Master Plan Assessment of the City’s Public Water Supply. The Assessment will assist the City in preparing a “road map” that identifies key improvements to the existing water supply, treatment, distribution, and storage infrastructure for future growth. Additionally, the Assessment will outline estimated timelines, milestones, and probable costs for identified improvements, summarized in a prioritized list, allowing the City to navigate an uncertain timeline of growth over the next decade. 229 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Fund 610 - WATER NEW CONSTRUCTION FUND ESTIMATED REVENUES LICENSES & PERMITS 610-00-00-34880 WATER IMPACT FEES 85,570 18,832 50,000 36,919 50,000 LICENSES & PERMITS 85,570 18,832 50,000 36,919 50,000 OTHER INCOME 610-00-00-37100 INVESTMENT INTEREST 106 15,021 4,000 35,000 35,000 OTHER INCOME 106 15,021 4,000 35,000 35,000 TOTAL ESTIMATED REVENUES 85,676 33,853 54,000 71,919 85,000 EXPENDITURES PERMANENT IMPROVEMENT 610-00-00-85500 WATER SYSTEM IMPROVEMENTS 0 0 0 0 600,000 PERMANENT IMPROVEMENT 0 0 0 0 600,000 TOTAL EXPENDITURES 0 0 0 0 600,000 NET OF REVENUES/EXPENDITURES - FUND 610 85,676 33,853 54,000 71,919 (515,000) BEGINNING FUND BALANCE 825,147 910,823 944,676 944,676 1,016,595 ENDING FUND BALANCE 910,823 944,676 998,676 1,016,595 501,595 230 | Page Water Capital Fund ______________________________________________________________________________ Fund 620 The capital portion of the Water Fund was split into its own fund in FY2016.5. The City Council supported the creation of the Water Capital Fund to track and finance water-related expenses pertaining to fleet and equipment and upgrades of existing water infrastructure such as water mains, wells, treatment plants and water towers. To provide a funding source to finance the capital improvements, the Council approved a water rate increase of 4.5% each year over a five-year period (2016-2020) with the stipulation that 2/3 of each year’s rate increase (or 3% of the 4.5% annual increase), would be directed into the Water Capital Fund (Fund 620). The remaining 1.5% would be directed into the Water Operations Fund (Fund 600). It should be noted that the rate increase in 2016 was only 2.2% and not 4.5%, so only 1.47% of this rate increase was directed into the Water Capital Fund. Subsequent rate increases since 2020 are tied to the CPI and follow the same guidelines noted above with two-thirds of the revenue directed to Fund 620 and one third to Fund 600. In 2021, the CPI was 2.5% and in 2022, the CPI was 7.2%. However, in light of the severe impact of rapidly rising inflation in the first two fiscal quarters of 2022, the Council elected to increase the 2022 rate by only 3.5%. Likewise, in 2023, the CPI was 5.4%, and Council again elected to increase the 2023 rate by only 3.5%. The table below details the revenue that has been generated each year for the Water Capital Fund since the creation of this fund: Water Operations Water Capital Total Annual Fund 600 Fund 620 Annual Revenue Water Rate Annual Revenue Annual Revenue Generated from Fiscal Year Increase 33% of Rate Increase 67% of Rate Increase Rate Increase 2016.5 2.20% $19,782 $39,563 $59,345 2017 4.50% $80,156 $160,313 $240,470 2018 4.50% $153,982 $307,964 $461,946 2019 4.50% $228,001 $456,001 $684,002 2020 4.50% $301,255 $602,510 $903,765 2021 2.50% $367,592 $735,183 $1,102,775 2022 3.50% $413,204 $866,509 $1,279,713 2023* 3.50% $432,605 $977,687 $1,410,292 Total $1,996,577 $4,145,730 $6,142,307 *Amounts from FY 2016.5 – 2022 are based on actual amounts from the financial statements. 2023 is projected, based on anticipated 2023 operating results. 231 | Page Major accomplishments during FY2023 include: • Replacement of over 290 feet of water main crossing the Kishwaukee River in conjunction with the North First Street bridge replacement. • Well No. 16 and 17 maintenance and repair. • Over 20 lead service line replacements. • Purchase of a new utility vehicle for water distribution repairs and maintenance. Since the creation of the Water Capital Fund in 2016, over 10 million dollars of water capital improvements have been completed. Some of the projects include: Projects Total Costs 2016 - 2023 2016 - 2023 Water main replacement • Kishwaukee Ln, Lewis & Vienna, South Sixth St., Maplewood Ave, South $5,502,851 Eleventh St., Sunset Place, Joanne Ln, Ilehamwood, Golfview, Oak Dr., Joanne Ln. (Phase II), N. 13th and N. 14th Street, N. First St. at bridge Well Maintenance $791,605 North and South Water Tower Painting $2,016,811 Vehicles and Equipment (Backhoe, Loader, Tandem Dump Truck, Utility Vehicles) $1,088,019 Sewer Repair (218 & 226 E. Lincoln Hwy) $80,000 Water Meter Software Update $25,000 Lead Service Line Replacement $650,000 Water Meters $515,000 BS&A Utility Billing Software $314,000 TOTAL $10,983,286 Over $2.1 million of water capital improvements are included in the FY2024 Budget: Tentative Estimated FY2024 Projects Costs Water Main Lining – Walmart Parking Lot (1,600 feet) $576,000 Routine Meter Replacements and New Water Meter Purchases $80,000 Well No. 7 – Maintenance and Inspection $170,000 SCADA Upgrade (including Baxter & Woodman water system modelling) $505,000 New Vactor Truck Purchase $650,000 Replace W-6 Vehicle – pickup truck $60,000 Lead Service Line Replacements $50,000 Resurface Asphalt at Dresser Rd. WTP and North Water Tower $70,000 TOTAL $2,161,000 232 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Fund 620 - WATER CAPITAL FUND ESTIMATED REVENUES INTERGOVERNMENTAL REVENUES 620-00-00-33110 FEDERAL GRANTS - ARPA 0 342,689 500,000 120,000 0 620-00-00-33300 LOCAL GRANTS 100,000 INTERGOVERNMENTAL REVENUES 0 442,689 500,000 120,000 0 SERVICE CHARGES 620-00-00-34800 WATER SALES REVENUE 735,183 866,509 977,687 994,796 1,029,614 SERVICE CHARGES 735,183 866,509 977,687 994,796 1,029,614 OTHER INCOME 620-00-00-37100 INVESTMENT INTEREST 546 64,918 12,000 169,000 200,000 OTHER INCOME 546 64,918 12,000 169,000 200,000 TRANSFERS IN 620-00-00-39600 TRANSFER FROM WATER FUND 1,271,090 1,602,972 1,762,400 1,762,400 2,008,500 TRANSFERS IN 1,271,090 1,602,972 1,762,400 1,762,400 2,008,500 TOTAL ESTIMATED REVENUES 2,006,819 2,977,088 3,252,087 3,046,196 3,238,114 EXPENDITURES EQUIPMENT 620-00-00-86000 EQUIPMENT 15,289 8,488 15,000 7,688 620-00-00-86100 TECHNOLOGY EQUIPMENT 15,661 25,000 505,000 620-00-00-87000 VEHICLES 324,305 225,556 710,000 EQUIPMENT 15,289 24,149 364,305 233,244 1,215,000 PERMANENT IMPROVEMENT 620-00-00-85000 WATER MAINS 717,400 478,000 576,000 620-00-00-85100 WATER METERS 68,419 82,743 80,000 80,000 80,000 620-00-00-85200 LEAD SERVICE REPLACEMENT 442,689 500,000 120,000 50,000 620-00-00-85500 WATER SYSTEM IMPROVEMENTS 77,681 378,585 201,071 240,000 PERMANENT IMPROVEMENT 68,419 603,113 1,675,985 879,071 946,000 TRANSFERS OUT 620-00-00-91600 TRANSFER TO THE WATER FUND 2,143,734 1,748,944 TRANSFERS OUT 2,143,734 1,748,944 0 0 0 TOTAL EXPENDITURES 2,227,442 2,376,206 2,040,290 1,112,315 2,161,000 NET OF REVENUES/EXPENDITURES - FUND 620 (220,623) 600,882 1,211,797 1,933,881 1,077,114 BEGINNING FUND BALANCE 2,846,220 2,625,597 3,226,479 3,226,479 5,160,360 ENDING FUND BALANCE 2,625,597 3,226,479 4,438,276 5,160,360 6,237,474 233 | Page This page has been intentionally left blank. 234 | Page Airport Fund ______________________________________________________________________________ FUND 650 Department Introduction The Airport Fund is the driving force behind the management and maintenance of the DeKalb Taylor Municipal Airport (DTMA) and the DeKalb Flight Center. DTMA provides essential aviation fueling and ground handling services not only for based aircraft but also for transient aircraft that utilize services for business and pleasure alike. DTMA operates around the clock, regardless of weather, and offers two runways. The newer northeast/southwest runway (2-20) spans 7,026 feet in length, offering ample space for corporate and recreational aircraft of varying sizes. The east/west runway (9/27) is 4,021 feet in length. DTMA runways are equipped with a full Instrument Landing System (ILS) and feature four Global Positioning System (GPS) approaches, ensuring that pilots have the tools needed for accurate and safe instrument landings. Additionally, DTMA houses a Level 3 Automated Weather Observation System (AWOS-3) to provide real-time weather data, enabling pilots to make informed decisions regarding flights. The Airport boasts more than 44,000 annual operations, more than 95 based aircraft, and five Specialized Aviation Service Operators (SASO) who provide aircraft flight training and maintenance servicing. The Airport is designed to support all general aviation, corporate, charter, cargo, and private aircraft arriving in the region. The Airport operation is served by one full-time Airport Manager supplemented by seven Part- Time Aircraft Line Service Technicians. Seasonal Mowing, snow-removal and de-icing operations are managed by the Public Works Department’s Street Division and augmented by Public Works staff. FY2023 Accomplishments In preparation for a successful FY2024, the design and engineering work for two major capital projects have been completed (i.e. South tarmac resurfacing and Runway 9/27 resurfacing). The projects are programmed as part of the City’s five-year Transportation Improvement Program (TIP) and align with the airport’s long-term goals of success. The Airport continues to see growth in visiting aircraft from coast to coast. This has become evident each year as the tarmac witnesses a surge in aircraft traffic during the annual EAA Airventure Oshkosh event. This gathering of aviation enthusiasts draws repeat aviators and 235 | Page newcomers alike to DTMA, where they find a welcoming hub to discuss aviation operations and refuel for their journey ahead. FY2024 Initiatives In FY 2024 the east/west Runway 9/27 is slated for a full resurface. The project is programmed through the FAA’s Transportation Improvement Program (TIP). Almost the entirety of the project will be supported by federal funds, covering 90% of the costs. The remaining 10% will be allocated equally between state and local shares. Also planned in FY 2024 is the removal and replacement of a large portion of the South tarmac’s asphalt with concrete. This change in surfacing material not only contributes to the overall longevity of the tarmac but also enhances its load-bearing capacity. It provides a solid foundation that can support larger and heavier aircraft, offering both safety and reliability. Funding requirements align with the Runway 9/27 resurfacing project. In FY 2024, phase one of a crucial perimeter fencing project is set to be completed. This milestone has been made possible through the dedicated efforts of Representative Lauren Underwood, who secured an impressive $1,125,000 in federal funding, covering about 90% of the project’s 236 | Page total cost. The installation of this perimeter fencing represents more than just a physical enhancement: it is a critical step towards improving security and minimizing wildlife intrusions into the airport grounds. Additionally, this fencing is a mandatory requirement for the Airport to achieve a higher FAA status, which opens the future opportunity to service larger jet aircraft, facilitating further growth and development. 237 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Fund 650 - AIRPORT FUND ESTIMATED REVENUES SALES & USE TAXES 650-00-00-31200 HOME RULE SALES TAX 7,806 12,265 12,000 12,000 650-00-00-31250 AVIATION FUEL SALES TAX 12,000 650-00-00-31600 HOME RULE MOTOR FUEL TAX 202,958 199,225 193,000 193,000 195,000 SALES & USE TAXES 210,764 211,490 205,000 205,000 207,000 INTERGOVERNMENTAL REVENUES 650-00-00-33150 FEDERAL PASS-THROUGH GRANTS 459,159 360,546 221,500 206,530 440,087 650-00-00-33200 STATE GRANTS 10,464 36,657 585,000 INTERGOVERNMENTAL REVENUES 469,623 397,203 221,500 206,530 1,025,087 SERVICE CHARGES 650-00-00-34500 FUEL SALES 509,095 744,682 620,000 638,000 640,000 SERVICE CHARGES 509,095 744,682 620,000 638,000 640,000 OTHER INCOME 650-00-00-34900 RENTAL INCOME 339,628 442,063 427,980 500,000 501,775 650-00-00-34950 AIRPORT OPERATIONS 22,998 46,948 35,000 35,000 35,000 650-00-00-37100 INVESTMENT INTEREST 73 1,357 300 22,300 24,000 650-00-00-37150 INTEREST INCOME-LEASES 44,935 650-00-00-38100 MISCELLANEOUS REVENUE 14,695 10,666 4,500 4,000 4,000 650-00-00-38200 REFUNDS / REIMBURSEMENTS 7,038 1,865 650-00-00-38600 SALES OF SURPLUS PROPERTY 121 650-00-00-38700 CAPITAL LEASE ISSUANCE 85,592 650-00-00-38750 CONTRIBUTED ASSETS 584,594 OTHER INCOME 470,024 1,132,549 467,780 561,300 564,775 TRANSFERS IN 650-00-00-39260 TRANSFER FROM TIF #1 FUND 89,277 650-00-00-39420 TRANSFER FROM CAPITAL EQUIP FUND 124,985 TOTAL TRANSFERS-IN 214,262 - - - - TOTAL REVENUES 1,873,768 2,485,924 1,514,280 1,610,830 2,436,862 EXPENDITURES PERSONNEL 650-00-00-41100 WAGES - FULL-TIME 113,849 117,977 110,828 110,828 113,977 650-00-00-41200 WAGES - PART-TIME 123,212 134,522 206,526 206,526 211,786 650-00-00-41300 WAGES - OVERTIME 93 650-00-00-42100 EMPLOYER PORTION FICA 17,556 18,662 24,278 24,278 24,921 650-00-00-42200 EMPLOYER PORTION IMRF 16,578 14,450 9,653 9,653 9,745 650-00-00-42500 EMPLOYEE HEALTH INSURANCE 33,337 32,913 29,576 29,576 29,555 650-00-00-42600 WORKER'S COMPENSATION/LIABILITY INSU 14,303 20,660 43,693 43,693 51,992 650-00-00-48160 CHANGE IN COMP ABS-AIRPORT 3,169 (5,948) 650-00-00-48260 IMRF NPO - AIRPORT (55,948) 2,668 650-00-00-48360 NET OPEB-AIRPORT (34,850) 913 PERSONNEL 231,299 336,817 424,554 424,554 441,976 COMMODITIES 650-00-00-51100 SUPPLIES/PARTS-GROUNDS 5 2,004 3,000 2,500 3,000 650-00-00-51300 SUPPLIES/PARTS-BUILDINGS 11,331 14,761 9,500 4,000 7,500 650-00-00-51500 SUPPLIES/PARTS-EQUIPMENT 1,329 1,858 500 1,000 1,000 650-00-00-51600 SUPPLIES/PARTS-TECHNOLOGY 47 353 250 250 250 650-00-00-51700 SUPPLIES/PARTS-VEHICLES 18,649 7,775 9,000 9,000 10,000 650-00-00-52000 OFFICE SUPPLIES 146 605 150 150 200 650-00-00-52500 JANITORIAL SUPPLIES 723 708 600 700 900 650-00-00-53000 OPERATING SUPPLIES 798 816 700 900 900 650-00-00-53100 ICE/SNOW CONTROL SUPPLIES 15,532 8,972 18,000 15,000 15,500 650-00-00-53300 SMALL TOOLS & EQUIPMENT 479 726 600 400 500 650-00-00-54000 UNIFORMS/PROTECTIVE CLOTHING 347 271 500 500 500 650-00-00-55000 FUEL, OIL, & LUBRICANTS 11,480 4,817 14,000 4,000 12,000 650-00-00-55100 AIRPORT FUEL (FOR RESALE) 358,474 519,632 500,000 500,000 500,000 650-00-00-59999 COMMODITIES COMMODITIES 419,340 563,298 556,800 538,400 552,250 238 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET CONTRACTUAL SERVICES 650-00-00-61100 MAINTENANCE-GROUNDS 1,218 275 500 200 500 650-00-00-61300 MAINTENANCE-BUILDINGS 13,019 13,146 19,000 17,200 40,500 650-00-00-61500 MAINTENANCE-EQUIPMENT 25,151 553 6,000 1,000 2,000 650-00-00-61700 MAINTENANCE-VEHICLES 4,074 298 3,000 2,500 3,000 650-00-00-61800 MAINTENANCE-SOFTWARE 1,008 1,008 1,200 1,900 2,000 650-00-00-62099 PRINTED MATERIALS 126 132 100 75 100 650-00-00-62100 FINANCIAL SERVICES 14,796 23,543 21,940 20,700 22,500 650-00-00-62300 ARCHITECT/ENGINEERING SERVICES 10,898 11,989 11,000 23,500 28,500 650-00-00-63800 CONTRACTED SERVICES 51,518 22,320 40,000 37,575 38,050 650-00-00-64000 UTILITIES 10,955 11,187 13,000 10,400 10,700 650-00-00-64100 ELECTRIC SERVICES 28,824 25,076 30,000 30,000 26,000 650-00-00-64500 TELEPHONE SERVICES 9,119 9,808 10,500 8,900 9,500 650-00-00-65100 FREIGHT & POSTAGE 17 23 100 100 100 650-00-00-65200 MARKETING ADS & PUBLIC INFO 1,021 972 6,000 2,700 4,150 650-00-00-65300 LEGAL EXPENSES & NOTICES 60 650-00-00-65400 TAXES, LICENSES, & FEES 44,088 84,999 85,000 72,430 72,200 650-00-00-66100 DUES & SUBSCRIPTIONS 2,853 2,301 4,520 2,106 2,500 650-00-00-66200 TRAINING/TRAVEL 84 1,866 2,400 1,465 2,000 650-00-00-69200 SURETY BONDS 29,330 6,000 650-00-00-69999 CONTINGENCIES CONTRACTUAL SERVICES 248,099 215,556 254,260 232,751 264,300 OTHER SERVICES 650-00-00-72600 DEPRECIATION-AIRPORT 403,543 402,700 OTHER SERVICES 403,543 402,700 - - - DEBT SERVICES 650-00-00-73000 GAIN/LOSS ON DISPOSAL - 41,445 DEBT SERVICES - 41,445 - - - EQUIPMENT 650-00-00-81000 LAND ACQUISITION 650-00-00-83900 OTHER CAPITAL IMPROVEMENTS 437,376 269,688 268,500 217,400 1,315,547 650-00-00-86000 EQUIPMENT 1,000 150 1,000 650-00-00-86200 OFFICE FURNITURE & EQUIPMENT 4,198 861 1,000 500 1,000 650-00-00-87000 VEHICLES EQUIPMENT 441,574 270,549 270,500 218,050 1,317,547 TOTAL EXPENDITURES 1,743,855 1,830,365 1,506,114 1,413,755 2,576,073 NET OF REVENUES/APPROPRIATIONS - FUND 650 129,913 655,559 8,166 197,075 (139,211) BEGINNING FUND BALANCE 30,269,910 30,399,823 31,055,387 31,055,387 31,252,462 ENDING FUND BALANCE 30,399,823 31,055,382 31,063,553 31,252,462 31,113,251 239 | Page This page has been intentionally left blank. 240 | Page Refuse and Recycling Fund ______________________________________________________________________________ FUND 680 The Refuse & Recycling Fund provides for the efficient collection, processing, and disposal of refuse, landscape waste, and recyclables for DeKalb residents. In September 2023, the City entered into a new 5-year agreement with Lakeshore Recycling Systems, Inc. (LRS) to provide these services. DeKalb residents receive curbside collection services for an unlimited volume of refuse, recyclables, and landscape waste. As part of the agreement, LRS provides one 95-gallon refuse cart and one 65-gallon recycling cart at no additional charge. Residents may request a second 95-gallon refuse cart at no charge. Landscape waste collection is offered between April 1 and November 30 each year. In 2019, the City staff worked with downtown business owners and LRS to set up a simplified process of billing refuse charges through the City’s utility billing system for Central Business District (CBD) properties. The contract with LRS includes curbside electronic waste pick-up on the first pick-up day of the month for DeKalb residents. Another service offered to residents is household hazardous waste collection. This service is offered three times per year as scheduled with the City. Refuse charges are collected through the City’s utility bill on behalf of LRS. The City acts as a pass-through to bill and collect the refuse charges and remit them back to LRS. For providing this administrative service, the City is allowed to keep a 9% administrative fee, and a transfer is made back to the General Fund to reimburse for the salaries and benefits of the City staff that are involved in the billing and collection process. As the chart below illustrates, charges equally offset the expenses. The fund operates at a near breakeven amount and has maintained virtually no ending balance (net position) over the last several years. 3,000,000 2,750,000 2,500,000 2,250,000 2,000,000 1,750,000 1,500,000 1,250,000 1,000,000 750,000 500,000 250,000 0 (250,000) 2018 2019 2020 2021 2022 2023 2024 (500,000) Revenue Expense Net Position 241 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Fund 680 - REFUSE & RECYCLING FUND ESTIMATED REVENUES SERVICE CHARGES 680-00-00-34600 CHARGES FOR SERVICES 2,044,023 1,903,618 2,081,321 2,081,321 2,622,796 SERVICE CHARGES 2,044,023 1,903,618 2,081,321 2,081,321 2,622,796 OTHER INCOME 680-00-00-37100 INVESTMENT INTEREST 6 361 1,000 1,000 680-00-00-38100 MISCELLANEOUS REVENUE 426 890 1,000 OTHER INCOME 432 1,251 0 1,000 2,000 TOTAL ESTIMATED REVENUES 2,044,455 1,904,869 2,081,321 2,082,321 2,624,796 EXPENDITURES CONTRACTUAL SERVICES 680-00-00-64300 REFUSE REMOVAL SERVICES 1,836,917 1,951,506 1,937,104 1,897,790 2,462,095 CONTRACTUAL SERVICES 1,836,917 1,951,506 1,937,104 1,897,790 2,462,095 TRANSFERS OUT 680-00-00-91100 TRANSFER TO GENERAL FUND 212,000 140,000 144,000 60,000 100,000 TRANSFERS OUT 212,000 140,000 144,000 60,000 100,000 TOTAL EXPENDITURES 2,048,917 2,091,506 2,081,104 1,957,790 2,562,095 NET OF REVENUES/EXPENDITURES - FUND 680 (4,462) (186,637) 217 124,531 62,701 BEGINNING FUND BALANCE 5,270 808 (185,829) (185,829) (61,298) ENDING FUND BALANCE 808 (185,829) (185,612) (61,298) 1,403 242 | Page Section Nine Internal Service Funds • Workers Compensation & Liability Insurance Fund (Fund 700) • Health Insurance Fund (Fund 710) 243 | Page This page has been intentionally left blank. 244 | Page Internal Service Funds ______________________________________________________________________________ Workers’ Compensation & Liability – Fund 700 This fund pays for all medical treatment, disability payments, and settlement costs associated with claims filed by employees who are injured on the job. In FY1994 the City became self- insured for workers’ compensation claims. From FY1994 through FY2012, the City had no excess or “umbrella” insurance coverage provided by private carriers. Since May 1, 2012, the City has had a self-insured retention policy for excess coverage. These claims are administered and monitored by the City Manager’s Office and Human Resources Department. Starting in January 2022, the City’s contract for property and workers’ comp claims administration was shifted after a public bid process to the Illinois County Risk Management Trust (ICRMT). This fund also pays for costs resulting from accidents involving City property or employees, or in settlement of lawsuits brought against the City. Again, since May 2012, the City has had a self- insured retention policy for excess coverage. This coverage includes property, inland marine, general liability, automobile liability and auto physical damage, law enforcement liability, public official’s liability, and employment practices liability. Contributions from the General Fund, Transportation Fund, Water Fund and Airport Fund provide revenue to this fund in an amount sufficient to cover expenses. According to the City’s fund balance policy, this fund should maintain a reserve of $1.0 million. For FY 2024, contributions from other funds have been calculated such that the ending net position at 12/31/2024 is $1.01 million. Fund/Account Number Description FY 2024 Amount 100-55-00-42600 WORKER'S COMPENSATION/LIABILITY INSURANCE Exp $1,232,216 200-30-37-42600 WORKER'S COMPENSATION/LIABILITY INSURANCE Exp 15,598 600-00-00-42600 WORKER'S COMPENSATION/LIABILITY INSURANCE Exp 57,192 650-00-00-42600 WORKER'S COMPENSATION/LIABILITY INSURANCE Exp 51,992 700-00-00-38500 EMPLOYER CONTRIBUTIONS Rev $1,215,000 Health Insurance – Fund 710 The City of DeKalb maintained its own self-funded insurance system from FY1993 through FY2008 for employee health insurance. On January 1, 2008, the City joined the Intergovernmental Personnel Benefits Cooperative (IPBC), which is a pooled arrangement with other Illinois communities for the provision of health insurance. This move allowed the City to budget for known monthly payments to the IPBC, rather than funding for payment of all health claims as a fully self-insured entity. The City offers comprehensive medical and dental coverage to its employees, their dependents, and retirees. All active employees pay 20% of the health insurance premium for single, single +1 or family coverage. Retirees fall into four tiers and pay a portion of the premium dependent upon 245 | Page hire date; employees hired on or after January 1, 2012 (Tier 4) will pay 100% of the premium when they retire. Health Insurance Premium Expense 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 2019 2020 2021 2022 2023 2024 RETIREE HEALTH INSURANCE PREMIUM EMPLOYEE HEALTH INSURANCE PREMIUM Contributions from the General Fund, Transportation Fund, Water Fund and Airport Fund are also revenues to this fund in an amount sufficient to cover expenses. According to the City’s fund balance policy, this fund should maintain a reserve of one month of premiums, which is approximately $500,000. For FY 2024, contributions from other funds have been calculated such that the ending net position at 12/31/2024 is $801,892. 246 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Fund 700 - WORK COMP/LIAB INSURANCE FUND ESTIMATED REVENUES SERVICE CHARGES 700-00-00-38500 EMPLOYER CONTRIBUTIONS 898,220 753,317 1,079,218 1,079,218 1,100,000 SERVICE CHARGES 898,220 753,317 1,079,218 1,079,218 1,100,000 OTHER INCOME 700-00-00-37100 INVESTMENT INTEREST 198 26,936 2,500 50,000 25,000 700-00-00-38200 REFUNDS / REIMBURSEMENTS 362 19,630 9,180 700-00-00-38300 PROPERTY DAMAGE COMPENSATION 124,220 29,274 6,382 OTHER INCOME 124,780 75,840 2,500 65,562 25,000 TOTAL ESTIMATED REVENUES 1,023,000 829,157 1,081,718 1,144,780 1,125,000 EXPENSES CONTRACTUAL SERVICES 700-00-00-62200 LEGAL SERVICES 175,211 82,307 150,000 150,000 160,000 700-00-00-63800 CONTRACTED SERVICES 567,501 560,448 571,158 655,000 680,000 700-00-00-63999 TPA ADMINISTRATION 30,000 14,145 12,000 9,500 10,000 700-00-00-65300 LEGAL EXPENSES & NOTICES 4,200 700-00-00-69100 CLAIMS: LIAB & PROP INSURANCE 122,329 79,219 125,000 125,000 125,000 700-00-00-69150 CLAIMS: WORK COMP INSURANCE (254,700) 275,977 400,000 400,000 400,000 CONTRACTUAL SERVICES 644,541 1,012,096 1,258,158 1,339,500 1,375,000 TOTAL EXPENSES 644,541 1,012,096 1,258,158 1,339,500 1,375,000 NET OF REVENUES/APPROPRIATIONS - FUND 700 378,459 (182,939) (176,440) (194,720) (250,000) BEGINNING FUND BALANCE 1,144,700 1,523,161 1,340,222 1,340,222 1,145,502 ENDING FUND BALANCE 1,523,159 1,340,222 1,163,782 1,145,502 895,502 247 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Fund 710 - HEALTH INSURANCE FUND ESTIMATED REVENUES SERVICE CHARGES 710-00-00-38500 EMPLOYER CONTRIBUTIONS 5,063,504 5,233,229 5,338,262 5,338,262 5,445,874 710-00-00-38510 EMPLOYEE CONTRIBUTIONS 854,409 879,409 911,038 911,038 952,074 710-00-00-38520 RETIREE CONTRIBUTIONS 637,919 659,453 664,181 664,181 682,700 710-00-00-38530 LIBRARY CONTRIBUTIONS 274,604 148,942 62,151 222,443 356,086 710-00-00-38590 OTHER CONTRIBUTIONS 722 1,819 SERVICE CHARGES 6,831,158 6,922,852 6,975,632 7,135,924 7,436,734 OTHER INCOME 710-00-00-37100 INVESTMENT INTEREST 21 974 100 12,500 13,000 OTHER INCOME 21 974 100 12,500 13,000 TOTAL ESTIMATED REVENUES 6,831,179 6,923,826 6,975,732 7,148,424 7,449,734 EXPENSES PERSONNEL 710-00-00-41700 DEFERRED COMPENSATION 165,930 173,881 200,000 200,000 200,000 710-00-00-41800 HSA CONTRIBUTIONS 78,750 76,146 85,000 85,000 85,000 710-00-00-41850 INSURANCE OPT-OUT CONTRIBUTION 50,055 79,189 76,305 87,263 171,229 710-00-00-42100 EMPLOYER PORTION FICA 8,232 9,087 8,775 8,775 8,775 710-00-00-42200 EMPLOYER PORTION IMRF 11,667 2,766 5,226 5,226 5,130 710-00-00-67500 WELLNESS BENEFIT PAYMENTS 25,425 27,149 35,000 35,000 35,000 PERSONNEL 340,059 368,218 410,306 421,264 505,134 CONTRACTUAL SERVICES 710-00-00-42580 EMPLOYEE LIFE INSURANCE PREMIUM 16,671 14,062 16,500 16,500 16,500 710-00-00-62100 FINANCIAL SERVICES 21 73 100 710-00-00-62600 MEDICAL SERVICES 6,000 710-00-00-63998 FLEX ADMINISTRATION 3,260 3,196 4,500 4,500 4,500 710-00-00-67100 EMPLOYEE HEALTH INSURANCE PREMIUM 4,548,253 4,323,568 4,574,800 4,563,842 4,689,701 710-00-00-67200 LIBRARY HEALTH INSURANCE PREMIUM 154,391 128,094 62,151 222,443 356,086 710-00-00-67300 RETIREE HEALTH INSURANCE PREMIUM 1,760,694 1,973,356 1,911,876 1,911,876 1,869,313 CONTRACTUAL SERVICES 6,483,290 6,442,349 6,575,927 6,719,161 6,936,100 TOTAL EXPENSES 6,823,349 6,810,567 6,986,233 7,140,425 7,441,234 NET OF REVENUES/APPROPRIATIONS - FUND 710 7,830 113,259 (10,501) 7,999 8,500 BEGINNING FUND BALANCE 664,304 672,133 785,393 785,393 793,392 ENDING FUND BALANCE 672,134 785,392 774,892 793,392 801,892 248 | Page Section Ten Fiduciary Funds • Police Pension Fund (Fund 830) • Fire Pension Fund (Fund 850) 249 | Page This page has been intentionally left blank. 250 | Page Police and Fire Pension Funds ______________________________________________________________________________ Police Pension Fund (Fund 830) and Fire Pension Fund (Fund 850) The Police and Fire Pension Funds account for the financial administration of two defined benefit pension plans: the Police Pension Plan and the Firefighters’ Pension Plan, which are both single- employer pension plans. The benefits, benefit levels, employee and employer contributions are governed by Illinois state statute and can only be amended by the Illinois General Assembly. Revenue sources are primarily employer (City) contributions, investment earnings, and employee contributions from active Police and Fire Department personnel. Expenses are paid for retiree, disability, and surviving spouse pensions, financial management and investment fees, legal fees, audit costs, and other miscellaneous items. An established local Board for each fund directs its own affairs and meets quarterly with special meetings as needed. The Boards are each comprised of five members. Two members are appointed by the Mayor, two are elected from the active participants of the pension fund, and one is elected by the fund’s beneficiaries. The funds are regulated by the Illinois Department of Financial and Professional Regulation, Division of Insurance. By state law, these pension funds must be 90% funded by the year 2040. Current funding levels as of December 31, 2022, for the Police Pension Fund and the Fire Pension Fund were 53.6% and 41% respectively. On October 10, 2019, Governor J.B. Pritzker received the report of the Illinois Pension Consolidation Task Force (created in February 2019) that advised the Governor to pursue consolidation of all fire pension boards and all police pension boards into two, state-wide entities to materially and dramatically improve the long-term portfolio performance of police and fire pension funds. Governor Pritzker’s office subsequently drafted SB1300, which ultimately became Public Act 101-0610, creating the Illinois Police Officers’ Pension Investment Fund (IPOPIF) and the Firefighters’ Pension investment Fund (FPIF) on December 19, 2019, with local boards still retaining control over approval of retirement and disability pensions. The statute created transition boards of trustees, appointed by the Governor, to undertake a path toward the consolidation of funds. The FPIF got off to a faster start, accomplishing the creation of a working office and a permanent board of trustees in 2022. The DeKalb Firefighters’ Pension Fund’s assets were consolidated into the downstate fund in January 2022. The IPOPIF was under challenge in the state courts, but an order of summary judgment was issued by the Circuit Court of Kane County in favor of the consolidation as authorized by Public Act 101-0610. That judgment was promptly appealed, and an appeals court ruling was eventually made in favor of the constitutionality of the consolidation. The consolidation of the assets of the DeKalb Police Pension Fund and the expected savings from a reduction, state-wide, in overall actuarial and financial management costs should soon be realized. Annual contributions into the fund are determined by an actuarial study conducted annually by an independent actuary. The City of DeKalb has chosen to fund based on a higher amount than statutorily required, to achieve 100% funding by 2040. Historically, employer contributions are funded through the City’s property tax. However, in recent years, increases in the required contributions have significantly outpaced the City’s ability to levy dollars through the property 251 | Page tax process. As such, a portion of the contributions comes from property tax (about 85%) with the remainder coming from other General Fund sources, such as sales and income tax. The employee contributions are payroll contributions being made by current employees. The contribution percentage as set by statute for Police is 9.91% of base salary, and the contribution percentage for Fire is 9.455% of base salary. The chart below depicts the Pension Funds’ net position since December 31, 2017 (FY 2017). The data points for 2023 and 2024 are yet unknown, and unrealized market values approaching the end of 2023 have not been factored into these amounts. The chart below depicts the Pension Funds’ annual benefit payments since December 31, 2017 (FY 2017). 252 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Fund 830 - POLICE PENSION FUND ESTIMATED REVENUES SERVICE CHARGES 830-00-00-38500 EMPLOYER CONTRIBUTIONS 3,614,881 3,707,827 3,901,382 3,901,382 4,130,481 830-00-00-38510 EMPLOYEE CONTRIBUTIONS 564,388 864,492 689,818 689,818 767,627 SERVICE CHARGES 4,179,269 4,572,319 4,591,200 4,591,200 4,898,108 OTHER INCOME 830-00-00-37100 INVESTMENT INTEREST 1,880,375 1,196,784 500,000 500,000 970,815 830-00-00-37500 GAIN/LOSS ON INVESTMENTS 3,865,651 (8,293,712) 2,427,036 830-00-00-38100 MISCELLANEOUS REVENUE 3,377 OTHER INCOME 5,749,403 (7,096,928) 500,000 500,000 3,397,851 TOTAL ESTIMATED REVENUES 9,928,672 (2,524,609) 5,091,200 5,091,200 8,295,959 EXPENSES PERSONNEL 830-00-00-41950 SERVICE PENSIONS 4,264,689 3,762,728 3,849,509 3,849,509 3,932,780 830-00-00-41951 NON-DUTY DISABILITY PENSIONS 47,852 47,852 47,852 47,852 830-00-00-41952 DUTY DISABILITY PENSIONS 48,147 48,147 48,147 48,147 830-00-00-41953 SURVIVING SPOUSE PENSIONS 571,883 597,670 597,670 597,670 830-00-00-41960 SERVICE CREDIT TRANSFER 110,420 0 0 830-00-00-41970 CONTRIBUTION REFUNDS 87,253 136,110 100,000 100,000 100,000 PERSONNEL 4,462,362 4,566,720 4,643,178 4,643,178 4,726,449 CONTRACTUAL SERVICES 830-00-00-62100 FINANCIAL SERVICES - L & A 13,670 16,115 14,173 14,173 16,120 830-00-00-62110 FINANCIAL SERVICES - AUDIT 4,870 4,965 4,965 5,114 830-00-00-62120 FINANCIAL SERVICES - ACTUARY 4,150 3,957 3,957 4,076 830-00-00-62150 INVESTMENT SERVICES 72,835 70,176 19,000 68,390 70,442 830-00-00-62600 MEDICAL SERVICES 1,458 2,400 2,500 2,500 2,575 830-00-00-62750 INSURANCE SERVICES 9,252 9,379 9,685 9,685 9,976 830-00-00-63800 CONTRACTED SERVICES 8,000 8,000 10,500 10,500 10,815 830-00-00-63900 OTHER PROFESSIONAL SERVICES 13,273 1,200 1,200 1,236 830-00-00-65300 LEGAL EXPENSES & NOTICES 13,067 1,855 10,500 10,500 10,815 830-00-00-66100 DUES & SUBSCRIPTIONS 795 795 800 800 800 830-00-00-66200 TRAINING/TRAVEL 1,540 2,275 2,500 2,500 2,500 CONTRACTUAL SERVICES 133,890 120,015 79,780 129,170 134,469 TOTAL EXPENSES 4,596,252 4,686,735 4,722,958 4,772,348 4,860,918 NET OF REVENUES/APPROPRIATIONS - FUND 830 5,332,420 (7,211,344) 368,242 318,852 3,435,041 BEGINNING FUND BALANCE 45,703,199 51,035,619 43,824,275 43,824,275 44,143,127 FUND BALANCE ADJUSTMENTS ENDING FUND BALANCE 51,035,619 43,824,275 44,192,517 44,143,127 47,578,168 253 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Fund 850 - FIRE PENSION FUND ESTIMATED REVENUES SERVICE CHARGES 850-00-00-38500 EMPLOYER CONTRIBUTIONS 4,282,230 4,415,632 4,933,015 4,933,015 5,343,974 850-00-00-38510 EMPLOYEE CONTRIBUTIONS 522,552 536,307 584,866 554,223 616,204 SERVICE CHARGES 4,804,782 4,951,939 5,517,881 5,487,238 5,960,178 OTHER INCOME 850-00-00-37100 INVESTMENT INTEREST 1,502,083 234,856 300,000 350,000 300,000 850-00-00-37500 GAIN/LOSS ON INVESTMENTS 3,446,278 (5,513,400) 850-00-00-38100 MISCELLANEOUS REVENUE 28 (1,790) OTHER INCOME 4,948,389 (5,280,334) 300,000 350,000 300,000 TOTAL ESTIMATED REVENUES 9,753,171 (328,395) 5,817,881 5,837,238 6,260,178 EXPENSES PERSONNEL 850-00-00-41950 SERVICE PENSIONS 4,321,757 3,885,752 4,042,768 4,042,768 4,162,609 850-00-00-41952 DUTY DISABILITY PENSIONS 359,116 364,721 364,721 370,612 850-00-00-41953 SURVIVING SPOUSE PENSIONS 372,129 372,129 372,129 372,129 850-00-00-41954 DEPENDENT PENSIONS 197 294 850-00-00-41970 CONTRIBUTION REFUNDS 7,313 PERSONNEL 4,329,070 4,616,997 4,779,618 4,779,815 4,905,644 CONTRACTUAL SERVICES 850-00-00-62100 FINANCIAL SERVICES - L & A 17,580 19,270 18,720 18,720 19,282 850-00-00-62110 FINANCIAL SERVICES - AUDIT 4,870 4,965 4,965 5,065 850-00-00-62120 FINANCIAL SERVICES - ACTUARY 3,550 3,657 3,650 3,760 850-00-00-62150 INVESTMENT SERVICES 49,848 26,559 10,480 22,517 33,600 850-00-00-63800 CONTRACTED SERVICES 13,123 850-00-00-63900 OTHER PROFESSIONAL SERVICES 6,336 203 850-00-00-65100 FREIGHT & POSTAGE 9 850-00-00-65300 LEGAL EXPENSES & NOTICES 4,725 3,700 2,900 2,900 3,400 850-00-00-66100 DUES & SUBSCRIPTIONS 500 500 500 890 500 850-00-00-66200 TRAINING/TRAVEL 450 1,819 2,995 2,995 3,000 850-00-00-66300 TRAVEL EXPENSES 351 CONTRACTUAL SERVICES 92,913 60,480 44,217 56,637 68,607 TOTAL EXPENSES 4,421,983 4,677,477 4,823,835 4,836,452 4,974,251 NET OF REVENUES/APPROPRIATIONS - FUND 850 5,331,188 (5,005,872) 994,046 1,000,786 1,285,927 BEGINNING FUND BALANCE 34,072,837 39,404,025 34,398,153 34,398,153 35,398,939 FUND BALANCE ADJUSTMENTS ENDING FUND BALANCE 39,404,025 34,398,153 35,392,199 35,398,939 36,684,866 254 | Page Section Eleven Discretely Presented Component Unit • DeKalb Public Library (Fund 900) 255 | Page This page has been intentionally left blank. 256 | Page  People of DeKalb Mayor Library Board of Trustees Library Director Administrative Assistant Head of Adult Head of Youth Head of Access Public Relations and Facilities Business Services * Services* Services Events Manager* Manager Manager Adult Services Youth Services Librarian Librarian Access Services Specialist Public Relations and Maintenance Events Specialist Specialist Adult Services Youth Services Specialist Specialist Technical Services Manager Outreach and Youth Services Homebound Clerk Specialist Technical Services Teen Services Specialist Manager Volunteer Tech Desk and Teen Services Studio Manager Librarian Tech Desk and Teen Services Studio Specialist Specialist * Denotes Executive Team member 257 | Page This page has been intentionally left blank. 258 | Page DeKalb Public Library ______________________________________________________________________________ FUND 900 The DeKalb Public Library seeks to enrich, inform, entertain, and inspire the residents of DeKalb. Since its founding in the 1880s as a reading room, the DeKalb Public Library has served the community with a welcoming environment and a full range of services to meet the informational, educational, and cultural needs of DeKalb residents and visitors. The library is a vital and integral part of the community, providing the public with a fully accessible 21st century facility housed in a beautifully maintained and expanded historic building. As the primary community center in DeKalb, the library provides an essential place for people to engage in activities that engage their curiosity. Since June 2020, the DeKalb City Council and the DeKalb Planning and Zoning Commission have been meeting in the Yusunas Room in the lower level of the Library. The library offers rich resources through its own collection of more than 150,000 physical items along with reciprocal access to the collections of more than 130 other libraries across Illinois. Digital collections are available on-site and from home, and within the library residents find access to technology, educational and entertaining programming for all ages, trained professional staff, and quiet spaces to read and work. The Library has approximately 16 full-time and 33 part-time employees. 259 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET Fund 900 - DeKalb Public Library ESTIMATED REVENUES Dept 00-00 - GENERAL PROPERTY TAXES 900-00-00-30170 PROPERTY TAX - LIBRARY 2,642,964 2,931,266 2,931,266 2,931,266 3,387,911 PROPERTY TAXES 2,642,964 2,931,266 2,931,266 2,931,266 3,387,911 INTERGOVERNMENTAL REVENUES 900-00-00-33200 STATE GRANTS 59,428 64,944 64,944 64,944 64,944 900-00-00-33300 LOCAL GRANTS 5,797 2,000 2,000 2,000 2,000 900-00-00-33600 PERSONAL PROPERTY REPLACEMENT TAX 132,597 40,000 40,000 40,000 40,000 INTERGOVERNMENTAL REVENUES 197,822 106,944 106,944 106,944 106,944 OTHER INCOME 900-00-00-34985 LIBRARY SALES 2,599 900-00-00-34990 LIBRARY NON-RESIDENT DUES 1,497 1,500 1,500 1,500 2,000 900-00-00-37100 INVESTMENT INTEREST 4,108 900-00-00-37600 UNREALIZED INV GAIN/LOSS (23,493) 900-00-00-38100 MISCELLANEOUS REVENUE 6,399 2,000 2,000 2,000 2,000 900-00-00-38400 DONATIONS / CONTRIBUTIONS 29,450 20,000 20,000 20,000 20,000 900-00-00-38450 ENDOWMENTS 11,853 6,500 6,500 6,500 6,500 900-00-00-38490 ANNUAL CAMPAIGN REVENUE 7,660 3,000 3,000 3,000 3,000 900-00-00-38850 TIF PROPERTY TAX SURPLUS 5,300 40,000 OTHER INCOME 45,373 33,000 33,000 33,000 73,500 FINES 900-00-00-35890 LIBRARY FINES 9,321 7,000 7,000 7,000 7,500 FINES 9,321 7,000 7,000 7,000 7,500 TRANSFERS IN 900-00-00-39100 TRANSFER FROM GENERAL FUND 485,750 TRANSFERS IN 485,750 TOTAL REVENUES 3,381,230 3,078,210 3,078,210 3,078,210 3,575,855 EXPENDITURES PERSONNEL 900-00-00-41100 WAGES - FULL-TIME 1,067,090 1,240,637 1,240,637 1,240,637 1,484,100 900-00-00-41200 WAGES - PART-TIME 338,846 398,667 398,667 398,667 359,000 900-00-00-42100 EMPLOYER PORTION FICA 105,731 125,407 125,407 125,407 140,787 900-00-00-42200 EMPLOYER PORTION IMRF 133,981 108,059 108,059 108,059 127,720 900-00-00-42500 EMPLOYEE HEALTH INSURANCE 228,061 216,885 216,885 216,885 261,550 900-00-00-42600 WORKER'S COMPENSATION/LIABILITY INSURANC 4,000 4,000 4,000 4,000 900-00-00-42700 UNEMPLOYMENT INSURANCE 4,245 6,000 6,000 6,000 6,000 900-00-00-48190 CHANGE IN COMP ABS-LIBRARY (1,606) 900-00-00-48290 IMRF NPO-LIBRARY 65,845 900-00-00-48390 NET OPEB-LIBRARY (125,298) PERSONNEL 1,816,895 2,099,655 2,099,655 2,099,655 2,383,157 CONTRACTUAL SERVICES 900-00-00-42580 EMPLOYEE LIFE INSURANCE PREMIUM 2,000 2,000 2,000 2,000 900-00-00-61100 MAINTENANCE-GROUNDS 18,775 13,915 13,915 13,915 19,650 900-00-00-61300 MAINTENANCE-BUILDINGS 96,045 99,564 99,564 99,564 99,564 900-00-00-62100 FINANCIAL SERVICES 37,675 29,765 29,765 29,765 32,000 900-00-00-62200 LEGAL SERVICES 5,040 10,000 10,000 10,000 10,000 900-00-00-62400 TECHNOLOGY SERVICES 79,386 59,205 59,205 59,205 70,489 900-00-00-63800 CONTRACTED SERVICES 39,906 900-00-00-63900 OTHER PROFESSIONAL SERVICES 10,918 5,500 5,500 5,500 5,500 900-00-00-63950 LIBRARY PROGRAMS 28,221 20,600 20,600 20,600 28,933 900-00-00-63955 GRANT FUNDED PROGRAMS 11,109 2,000 2,000 2,000 2,000 900-00-00-63960 DONATIONS/FRIENDS OF THE LIBRARY 865 8,000 8,000 8,000 8,000 900-00-00-63965 ENDOWMENTS AND MEMORIALS 2,758 6,500 6,500 6,500 6,500 900-00-00-63970 LIBRARY ELECTRONIC RESOURCES 73,277 72,230 72,230 72,230 78,730 900-00-00-63975 LIBRARY CONSORTIA SERVICES 34,785 38,550 38,550 38,550 40,477 900-00-00-64100 ELECTRIC SERVICES 1,164 1,500 1,500 1,500 1,500 900-00-00-64200 NATURAL GAS SERVICES 20,232 13,200 13,200 13,200 15,000 900-00-00-64300 REFUSE REMOVAL SERVICES 2,366 3,000 3,000 3,000 3,200 260 | Page  2021 2022 2023 2023 2024 ACTIVITY ACTIVITY AMENDED PROJECTED REQUESTED GL NUMBER DESCRIPTION BUDGET ACTIVITY BUDGET 900-00-00-64400 SEWER SERVICES 4,429 5,000 5,000 5,000 5,000 900-00-00-64500 TELEPHONE SERVICES 15,949 14,900 14,900 14,900 18,500 900-00-00-64600 CABLE/INTERNET SERVICES 2,960 6,730 6,730 6,730 4,480 900-00-00-65100 FREIGHT & POSTAGE 1,917 2,000 2,000 2,000 2,000 900-00-00-65200 MARKETING ADS & PUBLIC INFO 20,317 20,400 20,400 20,400 20,000 900-00-00-66100 DUES & SUBSCRIPTIONS 1,051 3,770 3,770 3,770 4,422 900-00-00-66200 TRAINING/TRAVEL 9,422 6,000 6,000 6,000 8,000 900-00-00-66300 TRAVEL EXPENSES 2,693 2,000 2,000 2,000 3,500 900-00-00-69200 SURETY BONDS 50,335 55,020 55,020 55,020 54,047 CONTRACTUAL SERVICES 571,595 501,349 501,349 501,349 543,492 COMMODITIES 900-00-00-51300 SUPPLIES/PARTS-BUILDINGS 10,367 4,850 4,850 4,850 16,000 900-00-00-52000 OFFICE SUPPLIES 12,319 16,100 16,100 16,100 24,296 900-00-00-59900 LIBRARY MATERIALS 122,552 141,700 141,700 141,700 139,600 900-00-00-59999 COMMODITIES 4,209 6,400 6,400 6,400 900 COMMODITIES 149,447 169,050 169,050 169,050 180,796 DEBT SERVICES 900-00-00-72900 DEPRECIATION-LIBRARY 606,620 900-00-00-76000 DEBT SERVICE - INTEREST 111,088 900-00-00-79850 BOND ISSUANCE COSTS 42,263 DEBT SERVICES 759,971 EQUIPMENT 900-00-00-83900 OTHER CAPITAL IMPROVEMENTS 257,010 257,010 257,010 389,888 900-00-00-86000 EQUIPMENT 21,360 51,147 51,147 51,147 27,703 EQUIPMENT 21,360 308,157 308,157 308,157 417,591 TOTAL EXPENDITURES 3,319,268 3,078,211 3,078,211 3,078,211 3,525,036 NET OF REVENUES/EXPENDITURES - FUND 900 61,962 (1) (1) (1) 0 BEGINNING FUND BALANCE 19,504,470 19,566,432 19,566,432 19,566,432 19,566,431 ENDING FUND BALANCE 19,566,432 19,566,431 19,566,431 19,566,431 19,617,250 261 | Page This page has been intentionally left blank. 262 | Page Appendix • Financial Policies • Performance Measures • Glossary • Chart of Accounts • Non-Bargaining Unit Pay Plan 263 | Page This page has been intentionally left blank. 264 | Page Budget Policy ______________________________________________________________________________ Policy Number: 01‐01 Date: January 9, 2017 Revised: November 2022 Purpose: The City Manager shall submit an annual budget to the City Council which is within the City’s ability to pay. The annual budget should provide for the following: 1. A meeting will be held with the Finance Advisory Committee after June 30 and before joint City Council budget discussions begin to discuss the previous year‐end Annual Comprehensive Financial Report, review revenues trends and discuss any new policy recommendations. 2. Management shall prepare a draft of the annual budget for review by the City Council and the Finance Advisory Committee in October/November of each year. The recommended budget should be submitted to the City Council for review and a public hearing shall be held in November of each year. The final budget document shall be submitted to the full membership for approval prior to December 31 of each year. 3. The annual budget should effectively communicate meaningful and understandable information to the City residents, City Council, City staff, and other readers. 4. The annual budget shall be monitored on a monthly basis. Revenue and expenditure budget reports shall be prepared and made available to City management staff for departmental review on a monthly basis. A monthly budget vs. actual report (Treasurer’s Report) shall be presented to the City Council. 5. The annual budget should allow for the implementation of as many of the City Council’s goals and objectives from its strategic plans as financially possible. 6. The annual budget should provide for the adequate funding of all pension plans (IMRF, Police Pension Fund, and Firefighters’ Pension Fund). An independent actuary should be used to determine the annual City contributions to the Police Pension Fund and the Firefighters’ Pension Fund. Currently, the City is funding both the Police Pension and Firefighters’ Pension Funds more than the statutory minimum, that is, the City is contributing an amount sufficient to be 100% funded by 2040 under the Entry Age Normal actuarial cost method. Additionally, the City will annually review all assumptions within the actuarial valuation to determine they are sound and in accordance with industry norms and best practices. 265 | Page  7. The annual budget should provide funding for the adequate maintenance of municipal equipment, municipal facilities, and infrastructure. 8. The budget will provide sufficient funding to cover annual debt retirement costs. 9. The annual budget should set aside‐adequate funding (pay‐as‐you‐go funding) for the replacement of major equipment. Annual funding (depreciation funding) for these replacements will reduce major expenditure jumps in the annual budget when these acquisitions are made. 10. During the budget process, the City will assess the need for contingency funds to be included in the budget to fund unanticipated expenditures that might arise. 11. The annual budget should finance current operating expenditures, excluding major capital expenditures, with current revenues. The use of reserve funds to finance current operating expenditures should be carefully considered and avoided if possible. Long‐term debt will not be used for funding current expenditures. 12. The City should limit the use of the reserve fund to nonrecurring operating expenditures or capital expenditures, specifically if our anticipated fund balance is below our Fund Balance Reserve Policy of 25%. If the reserve falls below 25%, a plan will be established to rebuild the balance. 13. The City may be required to undertake a budget amendment and/or execute expenditure transfers to ensure that actual expenditures are within approved budgetary limits as authorized by City Council. Administration of these procedures will be the responsibility of the City’s Finance Director and the Finance Director will sign off that these procedures have been adhered to for any budget amendments and/or expenditure transfers undertaken by the City. Those procedures are as follows: a. Upon knowledge that a budget amendment and/or expenditure transfer will be required, the City’s Finance Director will inform the City Council. b. Documents will be drafted by the Finance Director with the reason for the required budget amendment and/or expenditure transfer, including the specific accounts affected and the dollar amounts of said amendments and/or expenditure transfers. c. Formal City Council review and approval of proposed budget amendments and/or expenditure transfers will be required before any amendments and/or transfers are executed by the Finance Director. 13. The City will annually seek the Distinguished Budget Presentation Award offered by the Government Finance Officers Association (GFOA). 266 | Page Fund Balance Policy ______________________________________________________________________________ Policy Number: 01‐02 Date: January 9, 2017 Revised: November 2022 Purpose: Fund balance measures the net financial resources available to finance expenditures of future periods. Fund balance reserve policies are established to avoid cash flow interruptions, generate investment income, and reduce the need for borrowing. The fund balance reserves identified within this policy are the minimum balances necessary to accomplish these objectives. While keeping in mind the uneven nature of the City’s cash flows, should the projected ending fiscal year fund balance fall below the desired percentage or amount, the City should create a plan to restore the appropriate levels. Part II – Governmental Funds This section only applies to fund balances reported in the General Fund, Special Revenue Funds, Debt Service Funds, Capital Projects Funds, and Permanent Funds. 1. Definitions The five fund balance classifications outlined in GASB Statement 54 follows: Non‐spendable Fund Balance: This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. This would include items not expected to be converted to cash including inventories and prepaid amounts. It may also include the long‐term amount of loans and receivables, as well as property acquired for resale and the corpus (principal) of a permanent fund. Restricted Fund Balance: This classification should be reported when constraints placed on the use of resources are either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments or (b) imposed by law through constitutional provisions or enabling legislation. Committed Fund Balance: This classification reflects specific purposes pursuant to constraints imposed by formal action of the district’s highest level of decision‐making authority (generally the governing board). Also, such constraints can only be removed or changed by the same form of formal action. Assigned Fund Balance: This classification reflects amounts that are constrained by the government’s intent to be used for specific purposes but meet neither the restricted nor committed forms of constraint. 267 | Page Unassigned Fund Balance: This classification is the residual classification for the General Fund only. It is also where negative residual amounts for all other governmental funds would be reported. 2. Fund Balance Commitments & Assignments Committed fund balance for a specific use must be taken by formal action of the City Council. Amendments or modifications of the committed fund balance must also be approved by formal action of the City Council. In order to be recognized in the annual Audit Report, commitments of fund balance must be enacted prior to the end of that Report’s particular fiscal year. Assigned Fund Balance is intended for specific purposes not imposed by external parties or City Council’s formal action. The City Council authorizes the City Manager and/or his/her designee(s) to assign fund balance. Such assignments cannot exceed the available (spendable, unrestricted, uncommitted) fund balance in any Fund. 3. Reserves General Fund: Unassigned fund balance will be maintained at a minimum level equal to 25% of annual expenditures. The City’s unassigned General Fund balance will be maintained to provide the municipality with sufficient working capital and a margin of safety to address emergencies without borrowing. TIF Funds: The City currently has two budgeted TIF Funds (the Central Area TIF and TIF II). These Funds should be self‐supporting and should maintain a fund balance equivalent to meet the planned improvements identified in a multi‐year capital schedule(s). Capital Projects Fund: This Fund is used for resources accumulated and used in right of way improvements such as street repair, street reconstruction, and curb and gutter replacement. Costs associated with this Fund must not be State MFT eligible and must cost over $5,000 and have a useful life of at least three years. The funding source for this Fund will be the local home rule motor fuel tax as well as available local, state, and federal grants. The Capital Projects Fund should work toward establishing a fund balance at a minimum dollar amount to meet the planned improvements identified in a multi‐year capital replacement schedule(s). Special Revenue Funds: These Funds are used to account and report the proceeds of specific revenue sources which are restricted or committed toward expenditures for specific purposes other than debt service or capital projects. In general, all these Funds should maintain the least fund balance necessary to cover current fiscal year expenditures, plus an amount to pay for those expenditures of the subsequent fiscal year needed to avoid a cash deficit position. 4. Fund Balance Classification Fund balance classifications depict the nature of the net resources that are reported in a governmental fund type. An individual governmental fund may include non‐spendable 268 | Page  resources and amounts that are restricted, committed, or assigned, or any combination of those classifications. The General Fund may also include an unassigned amount. 5. Prioritization of Fund Balance Use When an expenditure is incurred for a purpose which can be paid from multiple fund balance classifications, the City will spend the most restricted dollars first, in the following order:  Non‐spendable (if funds become spendable)  Restricted  Committed  Assigned  Unassigned Part III – Enterprise, Internal Service, & Fiduciary Funds This section applies to Funds outside the scope of GASB 54. 1. Definitions Restricted Net Assets: The component of net assets restricted by external parties, constitutional restrictions, and enabling legislation. Net Assets Invested in Capital Assets, Net of Related Debt: A component of net assets calculated by reducing capital assets by accumulated depreciation and the principal portion of related debt. Unrestricted Net Assets: The portion of net assets that is neither restricted nor invested in capital assets net of related debt. 2. Reserves Water Operating Fund: The unrestricted net assets of the Water Fund will be maintained at a minimum level equal to 25% of the annual budgeted operating expenses. Net position above 25% will be transferred annually to the Water Capital Fund for use in funding the Water Capital plan. Water New Construction Fund: This revenue is from impact fees and is restricted for any new water main infrastructure in the City of DeKalb. Water Capital Fund: This fund will be used to account for all water capital improvement projects as approved by City Council in the annual budget. Capital projects include existing water infrastructure for water mains, wells, treatment plants, pumping systems and water towers. Additionally, Water Division equipment and fleet that exceed $10,000 with a useful life exceeding one year would be accounted for through this fund and be subject to the same annual budget approval by Council. 269 | Page  Airport Fund: The unrestricted net assets of the Airport Fund will be maintained at a minimum level equal to 25% of annual budgeted operating expenses, plus the budgeted capital improvements for the current fiscal year. Health Insurance Fund: The Health Insurance Fund should maintain unrestricted net assets of one month of IPBC’s premium. Any amount above this threshold shall be used to reduce the following year’s contributions from the General, Water and Airport Funds.. The Workers’ Compensation & Liability Insurance Fund: This fund should maintain unrestricted net assets of $1,000,000 collectively (or 1 year premium for reinsurance plus the average annual retention costs associated with that premium). Any amount above this threshold shall be used to reduce the following year’s contributions from the General, Water and Airport Funds. Part IV – Other 1. Cash Deficits Should any Fund incur a cash deficit by the end of the fiscal year, an interfund loan will be created with a Fund or Fund(s) which have a cash surplus (unless restricted by statute or Fund Balance policy). 2. Reporting Year‐to‐date revenues and expenditures for the General Fund will be issued to the City Council by their second regular meeting of each month, along with a summary of major fund balances. As part of the annual budget process, the City Council shall receive an update on the General Fund with a year‐end forecast for the fiscal year. The City Council shall receive an update on Workers’ Compensation claims through December 31 by the end of March and claims through June 30 by the end of September of each year. A semi‐annual report on economic development incentives will be reported to Council by the end of March and by the end of September of each year. An update on retiree insurance costs will be reported annually by the end of March of each year. 270 | Page Capital Equipment Replacement Fund Policy ______________________________________________________________________________ Policy Number: 01‐03 Date: January 9, 2017 Revised: November 2022 Purpose: The City of DeKalb has established the Capital Equipment Replacement Fund (CERF) to encourage departments to set aside funds each year for the eventual replacement of existing equipment and to avoid significant fluctuations in the operating budget from one year to the next. In order to build and maintain sufficient funds on hand to replace items at the end of their useful life, water tower rental income will be dedicated as well as transfers from the General Fund determined annually through the budget process. At a future date when one or more cannabis dispensaries have opened in the City, a portion of the sales tax generated from those establishments will also be recorded in this fund. The remainder of this policy is intended to provide guidance as to how the CERF will operate. The Capital Equipment Replacement Fund shall be used only to replace existing equipment owned by the City. The fund shall not be used to purchase equipment not currently owned by the City or as a means to circumvent the process for having new equipment approved by the City Council. Requests for new equipment shall be made as part of the annual operating budget and must be approved by the City Council before acquisition. Only those items which individually have a replacement cost of more than $10,000 or groups of similar equipment (e.g. personal computers, bullet proof vests, etc.) which, in the aggregate, exceed $10,000 with a useful life of more than one year shall be included in the CERF. Departments shall include individual items or groups of items with a value of less than $10,000 in their annual operating budget. The cost of items associated with new vehicles such as vehicle markings, light bars, radios and similar equipment shall be included in the replacement cost of the vehicle. The City shall create and annually update a multi‐year Capital Improvement Program (CIP) which shall be the basis for the annual budget of the CERF. The replacement cost and useful life for each vehicle or technology related equipment will be re‐evaluated by the individual departments on an annual basis. The Department Head, in consultation with the City Manager and the Finance Director, shall determine when a vehicle or equipment is due for replacement. Final capital asset replacement decisions using CERF monies will be discussed and approved by the City Council as part of the annual budget process. 271 | Page When CERF equipment is sold, the proceeds of the sale shall be credited to the CERF Fund. From time to time, departments may be assigned previously used technology related equipment from within their department or another department in the City. The Director of Information Technology, in consultation with the Department Head, shall recommend that such equipment be assigned to a department when it meets the department’s needs and when doing so will help avoid the expense of purchasing new equipment. Consideration shall be given to the annual operating cost of maintaining the used equipment when deciding whether or not to continue using it. The City Manager shall have the final say in determining whether or not previously used technology is assigned to a department. If the City determines that financing, rather than outright purchase, is necessary or prudent to replace the vehicles or equipment normally purchased from this fund, then the ongoing debt service on the capital loans or leases shall be made from the CERF. 272 | Page Revenue and Expenditure Policy ______________________________________________________________________________ Policy Number: 01‐04 Date: January 9, 2017 Revised: November 2022 Revenues The City desires to maintain a diversified and stable revenue base to reduce the impacts of fluctuations in any one revenue source. The revenue mix combines elastic and inelastic revenue sources to minimize the effects of an economic downturn. The City also incorporates the following principles related to revenues as it furthers its financial planning and fulfills its fiscal responsibilities: 1. The City prefers to keep its property tax rate as low as possible. The following components shall be followed in priority order each year when establishing the property tax levy: a. Levy for Police and Fire pensions per actuarial recommendations. If the actuarial reports indicate a higher employer contribution is needed, said increase will need to be added to the City’s overall previous year levy request to avoid underfunding problems. b. Levy for IMRF pension. c. Levy for FICA. d. Levy for general obligation bond principal and interest, less abatements. e. Levy to support General Fund operations including Police, Fire, Public Works, Community Development, Finance, Human Resources, I.T. and Administration. The annual increase for this component should not exceed the rate of inflation. f. Levy to fund additional personnel as determined by the City Council. 2. User charges and tap‐on fees will be sufficient to finance all operating and debt service costs for the Water Fund. 273 | Page  3. When preparing forecasts for the annual budget, staff will utilize generally accepted forecasting techniques that include the use of historical data, trend analysis, and consider the impact of changing economic conditions on the City’s revenue sources. This approach produces revenue estimates that are as reliable as possible and reduces the likelihood of actual revenues falling short of budget estimates during the year. 4. The City Manager should impose spending limits if, in his/her judgment, revenues will be below original estimates. Department Heads or their designee should review and monitor, on a monthly basis, expenditures to assure control of spending within available revenues. 5. One‐time revenues should be used only for one‐time expenditures and not for ongoing expenditures. One‐time revenues cannot be relied upon in future budget years. Examples of one‐time revenues are unexpected additional tax payments, non‐recurring grants, sales of City assets, and one‐time payments to the City. 6. Ongoing transfers will be made from the General Fund to the Capital Equipment Replacement fund on an annual basis to help plan for the purchasing of large capital equipment needs. Expenditures The City will strive to adhere to the following policies: 1. The City will consistently budget the minimum level of expenditures which will provide for the public well‐being and safety of the residents and businesses of the community. 2. Expenditures will be within the confines of generated revenue. Fund balances will not be used to pay for operating expenditures except in the case of emergencies and after careful consideration. 3. Investing in projects that will result in long‐term operating or capital cost savings is the best use of one‐time revenues. For example, these may include early debt retirement, capital expenditures that will reduce operating costs or address deferred capital needs, information technology projects that will improve efficiency, and special projects that will not incur ongoing operating costs. 4. Long‐term revenue and expenditure forecasting shall be done on an annual basis to ensure that City Council objectives are able to be met, and to identify and mitigate fiscal distress. 274 | Page Accounting, Auditing and Financial Reporting Policy ______________________________________________________________________________ Policy Number: 01‐05 Date: January 9, 2017 Revised: November 2022 Purpose: The City shall have an annual audit conducted on its financial records by a qualified, independent public accounting firm. The City should request proposals from qualified independent accounting firms to conduct an annual audit of its financial statements every five to six years by the use of a request for proposal (RFP) process. In accordance with Government Finance Officers Association’s (GFOA’s) Best Practice Guidelines, the current auditors can be included in the RFP process, however, it is recommended changing the audit team if the same firm came in with the best proposal. The audit shall be conducted on an annual basis to be completed and filed within six months after the end of each fiscal year. The City should submit its Annual Comprehensive Financial Report (ACFR) to the Government Finance Officers Association’s (GFOA) Certificate of Achievement for Excellence in Financial Reporting Program. The City’s financial statements shall be prepared according to generally‐accepted accounting principles (GAAP) as promulgated by the Governmental Accounting Standards Board(GASB). The City should contract with an independent actuary to determine the City’s annual contribution to the Police and Fire Pension Funds. The City shall prepare monthly significant account reconciliations, year‐end adjustments, and year‐end financial statements. Administration of these procedures will be the responsibility of the City’s Finance Director and the Finance Director will sign off that these procedures have been adhered to on a monthly and year‐end basis. Those procedures are as follows: The Finance Department, under approval of the Finance Director, will prepare a listing of all significant accounts of the City that are to be reconciled on a monthly basis. These accounts are to include at a minimum all balance sheet accounts at month‐end, all grant related revenue and expense accounts, all restricted use revenue accounts and all other accounts deemed necessary by the Finance Department to be reviewed on a monthly basis. A monthly checklist of these accounts will be prepared and signed off by the Finance Director. 275 | Page Within 60 days after the close of the fiscal year, all City departments must have submitted any invoices and any anticipated grant revenue related to the prior fiscal year for accruals. Within 90 days after the close of the fiscal year, the Finance Department will be required to submit to the Finance Director all required year‐end close adjustments. These adjustments are to be approved and reviewed by the Finance Director and posted to the general ledger prior to the auditors beginning audit fieldwork. The City’s auditors assist in the preparation of the City’s financial statements, including the footnote disclosures, in accordance with generally accepted accounting principles. Further, the City will review a complete initial draft and final draft of the financial statements as prepared by the auditors. The City’s Finance Director will be responsible for a final complete review of the financial statements, including the footnotes disclosures, to ensure that the financial statements are prepared in accordance with generally accepted accounting principles. Any questions or concerns related to the financial statements will be discussed with the City’s auditors. The City’s Annual Comprehensive Financial Report and Management Letter will be approved by the City Council and available for distribution no later than six months after the close of the City’s fiscal year‐end. 276 | Page Capital Asset Policy ______________________________________________________________________________ Policy Number: 01‐06 Date: January 9, 2017 Revised: November 2022 Purpose: Capital assets purchased or acquired with an original cost of $25,000 or more are reported at historical cost or estimated historical cost. Contributed assets are reported at fair market value as of the date received. Additions, improvements, and other capital outlays that significantly extend the useful life of an asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. General capital assets are long‐lived assets of the City as a whole. Infrastructure such as streets, alleys, right‐of‐way, bridges, storm sewers and traffic signals are capitalized. In the case of the initial capitalization of general infrastructure assets (i.e., those reported by the governmental activities) the government chooses to include all such items regardless of their acquisition date. With the implementation of GASB 34 and for purposes of tracking land and infrastructure, all assets, regardless of cost, are capitalized. The valuation basis for general capital assets are historical costs, or where historical cost is not available, estimated historical cost based on replacement costs. Capital assets in the proprietary funds are capitalized in the fund in which they are utilized. The valuation bases for proprietary fund capital assets are the same as those used for the general capital assets. Donated capital assets are capitalized at estimated fair market value on the date donated. Depreciation on all assets is computed and recorded using the straight‐line method of depreciation over the following estimated useful lives: Buildings and Building Improvements 40 to 50 Years Equipment 7 to 20 Years Vehicles 3 to 20 Years Infrastructure 20 to 50 Years Water Distribution System 30 to 50 Years When capital assets are purchased with the use of federal funds the following procedures will be completed by the City. Administration of these procedures will be the responsibility of the City’s Finance Director and the Finance Director will verify that these procedures have been adhered to for the purchase of every federally funded capital asset. Those procedures are as follows: 277 | Page Capital assets purchased with federal funds will be tagged with a special notation of “F” in addition to the regular identification number system used by the City. The description of the capital asset in the City’s capital asset records will also include the words “federally funded” before the description of the specific asset acquired. The source of federal funds must be noted and include a description of who holds title to the assets, along with the asset acquisition date, the asset cost, location of the asset, condition and use/purpose of the asset. The portion of the asset that is federally funded must also be noted in the City’s capital asset records. Upon disposition of any federally acquired assets, the City must note in the capital asset records the disposition date and sale price. An inventory of all assets will be performed on an annual basis. The results of the City’s inventory, including federally funded capital assets, will be reconciled to the City’s capital asset records to ensure accuracy. This inventory will be reviewed and approved by the City’s Finance Director. 278 | Page Debt Management Policy ______________________________________________________________________________ Policy Number: 01‐07 Date: January 9, 2017 Revised: November 2022 Purpose: The City of DeKalb developed this Debt Management Policy to help ensure the City’s credit worthiness and to provide a functional tool for debt management and capital planning. The City of DeKalb faces continuing capital infrastructure requirements to meet the increasing needs of its citizens. The City limits long‐term debt to only those capital improvements that cannot be financed from current revenues. The City of DeKalb will not use long‐term debt to fund operating programs. The costs of the capital requirements will be met through the issuance of various types of debt instruments. Consequently, the City needs to anticipate increases in debt levels based upon historical data. With these increases, the effects of decisions regarding the type of issue, method of sale, and payment structure become ever more critical to the City's financial well‐being. To help ensure the City's credit worthiness, an established program of managing the City's debt becomes essential. To this end, the City Council recognizes this "Debt Management Policy" to be financially prudent and in the City's best economic interest. This policy will provide a functional tool for debt management and capital planning and enhance the City's reputation for managing its debt in a conservative and prudent manner. Goals Related to the Issuance of General Obligation and Revenue Bond Debt: The City shall pursue the following goals below when issuing debt. Though the City may not have achieved all these goals as of yet, these are long term objectives for which we must continue to strive toward. 1. Return to at least an Aa3 (Moody’s) or equivalent credit rating for each general obligation debt issue. 2. Take all practical precautions to avoid any financial decision which will negatively impact current credit ratings on existing or future debt issues. 3. The City should maintain a General Fund unassigned balance equal to a minimum of twenty five percent (25%) of total annual expenditures. 4. Consider market timing. 279 | Page  5. Determine the amortization (maturity) schedule which will best fit with the overall debt structure of the City’s general obligation debt and related tax levy at the time the new debt is issued. The City may choose to delay principal payments or capitalized interest during project construction. For issuance of revenue bonds, the amortization schedule which will best fit with the overall debt structure of the fund and its related rate structure will be considered. Consideration will be given to coordinating the length of the issue with the lives of assets, whenever practicable, while considering repair and replacement costs of those assets to be incurred in future years as an offset to the useful lives, and the related length of time in the payout structure. 6. Consider the impact of such new debt on overlapping debt and the financing plans of local governments which overlap, or underlie the City. 7. Assess financial alternatives to include new and innovative financing approaches, including whenever feasible, categorical grants, revolving loans or other state/federal aid. 8. Minimize debt interest costs. Debt Issuance in General: 1. Authority and Purpose of the Issuance of Debt The laws of the State of Illinois authorize the issuance of debt by the City. The Local Bond Law confers upon municipalities the power and authority to contract debt, borrow money, and issue bonds for public improvement projects as defined therein. Under these provisions, the City may contract debt to pay for the cost of acquiring, constructing, reconstructing, improving, extending, enlarging, and equipping such projects or to refund bonds. The City Charter authorizes the City Council to incur debt by issuing bonds for any lawful municipal purpose as authorized by the State Constitution or its Home Rule Powers. 2. Short‐Term Debt (three years or less) The City may issue short‐term debt to finance projects or portions of projects for which the City ultimately intends to issue long‐term debt. This will be used to provide interim financing which will eventually be refunded with proceeds of long‐term obligations, which may include, but not be limited to, bond anticipation notes or variable rate demand notes. The City will have an estimated timeframe when any short‐term debt issue will eventually be converted into long‐term debt. 280 | Page  a. Line of Credit The City may also issue debt instruments to meet cash flow requirements. With the approval of the City Council, the City may establish a tax‐exempt line of credit with a financial institution selected through a competitive process. This line should have a limit of $2,500,000. Draws should be made on the line of credit when the need for financing is needed to meet operating expenditures on a temporary basis. Draws made on the line of credit must be requested by the Finance Director and approved by the City Manager and the City Council. 3. Long‐Term Debt (more than three years) The City may issue long‐term debt which may include, but not be limited to, general obligation bonds, certificates of participation, capital appreciation bonds, special assessment bonds, self‐liquidating bonds and double barreled bonds. Level or declining debt service should be employed unless operational matters dictate otherwise, or except to achieve overall level debt service with existing bonds. The City shall be mindful of the potential benefits of bank qualification and will strive to limit its annual issuance of debt to $10 million or less when such estimated benefits are greater than the benefits of exceeding the bank qualification limit. Should subsequent changes in the law raise this limit, then the City policy will be adjusted accordingly. The cost of issuance of private activity bonds is usually higher than for governmental purpose bonds. Consequently, private activity bonds will be issued only when they will economically benefit the City. The cost of taxable debt is higher than for tax‐exempt debt. However, the issuance of taxable debt is mandated in some circumstances and may allow valuable flexibility in subsequent contracts with users or managers of the improvement constructed with the bond proceeds. In addition, there may be circumstances in which the issuance of taxable debt may be more cost effective than the issuance of tax‐exempt debt. Therefore, the City will usually issue obligations tax exempt, but may occasionally issue taxable obligations. a. Capital Leasing The City may also enter into long‐term leases for public facilities, property, and equipment with a useful life greater than one year that costs less than $500,000. The City should be limited to issuing capital leases of no more than $1,000,000 in a fiscal year. 281 | Page  Whenever a lease is arranged with a private sector entity, a tax‐exempt rate should be sought. Whenever a lease is arranged with a government or other tax‐exempt entity, the City should strive to obtain an explicitly defined taxable rate so that the lease will not be counted in the City’s total annual borrowing subject to arbitrage rebate. The lease agreement should permit the City to refinance the lease at no more than reasonable cost should the City decide to do so. A lease which can be called at will is preferable to one which can merely be accelerated. 4. Capital Improvement Program (CIP) The Capital Improvement Program (CIP), approved by the City Council as part of the annual budget, should determine the City's capital needs. The program should be a five‐ year plan for the acquisition, development and/or improvement of the City's infrastructure. Projects included in the CIP should be prioritized; and the means for financing each should be identified. If the current resources are insufficient to meet the needs identified in the CIP, the City Council may consider incurring debt to fund the shortfall. The City Council may also consider incurring debt to fund multiple years of the Capital Improvement Program. The CIP should be revised and supplemented each year to maintain and test compliance with the City's Debt Management Policy Financial Policy #01‐07. 5. Structure of Debt Issues The duration of a debt issue should not remain outstanding beyond the asset’s useful life. Each new bond issue should be structured to be callable in 10 years. The City should design the financing schedule and repayment of debt so as to take best advantage of market conditions and, as practical, to recapture or maximize its credit capacity for future use, and moderate the impact to the taxpayer. In keeping with the stated goals of this debt management policy, the City should structure each general obligation issue (except refunding and mini‐bond issues) to comply with the rapidity of debt repayment provisions following. 6. Credit Enhancements Credit enhancements are mechanisms which guarantee principal and interest payments. Typically, they include bond insurance and/or a line or letter of credit. Usually this will bring a lower interest rate and a higher rating from the rating agencies, thus lowering costs. The City may enter into agreements with commercial banks or other financial entities for the purpose of acquiring credit enhancements when their use is judged cost effective or otherwise advantageous. Any such agreements shall be approved by the City Council. 282 | Page  7. Inclusion of Local Institutions Whenever practical and in the best interest of promoting the City of DeKalb, local financial institutions are to be offered the opportunity to bid on debt instruments. Legal Constraints and Other Limitations on the Issuance of Debt 1. State Law 30 ILCS 305/0.01, et. seq.: the short title is "The Bond Authorization Act." 2. Authority for Debt The City may, by bond ordinance, incur indebtedness or borrow money, and authorize the issue of negotiable obligations, including refunding bonds, for any capital improvement of property, land acquisition, or any other lawful purpose with approval by the City Council. 3. Debt Limitation The City of DeKalb is a home rule community. As such, the debt limitations of the bond laws are not applicable because the General Assembly has set no limits for home rule municipalities. 4. Methods of Sale When feasible and economical, obligations should be issued by competitive rather than negotiated sale. A sale may be negotiated when the issue is predominantly a refunding issue or in other non‐routine situations which require more flexibility than a competitive offer allows. Whenever the option exists to offer an issue either for competition or for negotiation, analysis of the options should be performed to aid in the decision‐making process. When a sale is not competitively bid, the City will publicly present the reasons and select the underwriter or direct purchaser. If a Financial Advisor is hired to assist the City in bond issuance, the Financial Advisor will not underwrite any debt issues on which it is advising. The criteria used to select an underwriter in a competitive sale should be the true interest cost. In a negotiated sale, the underwriter may be selected with or without a request for proposals (RFP). The criteria used to select an underwriter in a negotiated sale should include the following:  Overall experience  Marketing philosophy  Capability  Previous experience as managing a co‐managing partner 283 | Page   Financial statements  Public Finance team and resources  Underwriter’s discount When cost/beneficial, the City may privately place its debt. Since no underwriter participates in a private placement, it may result in lower costs of issuance. Private placement is sometimes an option for small issues. 5. Credit Implications When issuing new debt, the City should strive not to exceed credit industry benchmarks where applicable. Therefore, the following factors should be considered in developing debt issuance plans: a. Ratio of Gross Bonded Debt to Full Market Value of Taxable Property The formula for this computation is Gross Bonded Debt, which is the total outstanding debt, divided by the current Full Market Value of Taxable Property as determined by the Township Assessors. The City should not exceed 2% of Gross Bonded Debt per Full Market Value of Taxable Property. b. Gross Bonded Debt Per Capita The formula for this computation is Gross Bonded Debt divided by the current population as determined by the most recent U.S. Census. The City should not exceed $1,200 for Gross Bonded Debt per capita. c. Ratio of Annual Debt Service to General Fund Expenditures The formula for this computation is annual debt service expenditures divided by General Fund expenditures (excluding certain interfund transfers). The City should not exceed 10% of General Fund expenditures for annual debt service. d. Rapidity of Debt Service Repayment The City's general obligation bond issues should be so structured whereby the duration of the debt should not exceed 120% of the life of the asset. e. Current Fund Balance General Fund Cash Reserve The City should maintain a General Fund unassigned balance equal to a minimum of twenty five percent (25%) of total annual budgeted expenditures, exclusive of interfund transfers. Such calculation should be made on an annual basis by the Finance Director (or designee) during the budget process. 284 | Page Debt Administration 1. Financial Disclosures The City shall prepare appropriate disclosures as required by the Securities and Exchange Commission, the federal government, the State of Illinois, rating agencies, underwriters, investors, agencies, taxpayers, and other appropriate entities and persons to ensure compliance with applicable laws and regulations. 2. Review of Financing Proposals All capital financing proposals that involve a pledge of the City's credit through the sale of securities, execution of loans or lease agreements and/or otherwise directly involve the lending or pledging of the City's credit shall be referred to the Finance Director who shall determine the financial feasibility, and the impact on existing debt of such proposal, and shall make recommendations accordingly to the City Manager. 3. Establishing Financing Priorities The Finance Director shall administer and coordinate the City's debt issuance program and activities, including timing of issuance, method of sale, structuring the issue, and marketing strategies. The Finance Director along with the City's bond consultants shall meet, as appropriate, with the City Manager and the City Council regarding the status of the current year's program and to make specific recommendations. 4. Credit Rating The City should endeavor to maintain and/or to improve its credit rating and staff will specifically discuss with the City Council any proposal which might cause that rating to be lowered. Before a general obligation bond is issued, the City will update its rating from at least one national rating agency. The City Manager, Finance Director, and the City's bond consultants should meet with a rating agency to disclose the City's capital plans, debt issuance program, and other appropriate financial information as required by the rating agency. 5. Refunding Policy The City should consider refunding outstanding debt when legally permissible and financially advantageous. When refunding for savings purposes, a net present value debt service savings of at least two percent or greater must be achieved. Depending on the time to maturity and the absolute level of interest rates of the refunding candidate this target may change. For longer maturities the target can be higher, for shorter maturities, lower. For higher interest rates the target may be higher, for lower rates 285 | Page  it could be lower. There may be circumstances where the City may refund bonds for restructuring purposes that may not generate any savings. 6. Investment of Borrowed Proceeds The City acknowledges its ongoing fiduciary responsibilities to actively manage the proceeds of debt issued for public purposes in a manner that is consistent with Illinois statutes that govern the investment of public funds, and consistent with the permitted securities covenants of related bond documents executed by the City. The management of public funds should enable the City to respond to changes in markets or changes in payment or construction schedules so as to (i) optimize returns, (ii) insure liquidity, and (iii) minimize risk. The City will invest bond proceeds in accordance with the City’s investment policy and federal arbitrage requirements. Glossary of Terms: Ad Valorem Tax ‐ A direct tax based "according to value" of property. Advanced Refunding Bonds ‐ Bonds issued to refund an outstanding bond issue prior to the date on which the outstanding bonds become due or callable. Proceeds of the advanced refunding bonds are deposited in escrow with a fiduciary, invested in United States Treasury Bonds or other authorized securities, and used to redeem the underlying bonds at maturity or call date. Amortization ‐ the process of paying the principal amount of an issue of bonds by periodic payments either directly to bondholders or to a sinking fund for the benefit of bondholders. Arbitrage ‐ Usually refers to the difference between the interest paid on the tax‐exempt securities and the interest earned by investing the proceeds in higher yielding taxable securities. Internal Revenue Service regulations govern arbitrage (reference I.R.S. Reg. 1.103‐13 through 1.103‐15). Arbitrage Bonds ‐ Bonds which are deemed by the I.R.S. to violate federal arbitrage regulations. The interest on such bonds becomes taxable and the bondholders must include this interest as part of gross income for federal income tax purposes (I.R.S. Reg. 1.103‐13 through 1.103‐15). Assessed Value ‐ An annual determination of the just or fair market value of property for purposes of ad valorem taxation. Basis Point ‐ 1/100 of one percent. Bond ‐ Written evidence of the issuer's obligation to repay a specified principal amount on a date certain, together with interest at a stated rate, or according to a formula for determining that rate. Bond Anticipation Notes (BANS) ‐ Short‐term interest‐bearing notes issued by a government in anticipation of bonds to be issued at a later date. The notes are retired from proceeds of the bond issue to which they are related. 286 | Page Bond Counsel ‐ An attorney retained by the City to render a legal opinion whether the City is authorized to issue the proposed bonds, has met all legal requirements necessary for issuance, and whether interest on the bonds is, or is not, exempt from federal and state income taxation. Bonded Debt ‐ The portion of an issuers total indebtedness represented by outstanding bonds. Direct Debt or Gross Bonded Debt ‐ The sum of the total bonded debt and any unfunded debt of the issuer. Net Direct Debt or Net Bonded Debt ‐ Direct debt less sinking fund accumulations and all self‐supporting debt. Total Overall Debt ‐ Net direct debt plus the issuer's applicable share of the direct debt of all overlapping jurisdictions. Net Overall Debt ‐ Net direct debt plus the issuer's applicable share of the net direct debt of all overlapping jurisdictions. Overlapping Debt ‐ The issuer's proportionate share of the debt of other local governmental units which either overlap or underlie it. Callable Bond ‐ A bond which permits or requires the issuer to redeem the obligation before the stated maturity date at a specified price, the call price, usually at or above par value. Capital Appreciation Bonds (CAB) ‐ A long‐term security on which the investment return is reinvested at a stated compound rate until maturity. The investor receives a single payment at maturity representing both the principal and investment return. Certificates of Participation ‐ Documents, in fully registered form, that act like bonds. However, security for the certificates is the government's intent to make annual appropriations during the term of a lease agreement. No pledge of full faith and credit of the government is made. Consequently, the obligation of the government to make basic rental payments does not constitute an indebtedness of the government. Commercial Paper ‐ Very short‐term, unsecured promissory notes issued in either registered or bearer form, and usually backed by a line of credit with a bank. Coupon Rate ‐ The annual rate of interest payable on a coupon bond (a bearer bond or bond registered as to principal only, carrying coupons evidencing future interest payments), expressed as a percentage of the principal amount. Debt Limit ‐ The maximum amount of debt which an issuer is permitted in incur under constitutional, statutory or charter provision. 287 | Page Debt Service ‐ The amount of money necessary to pay interest on an outstanding debt, the serial maturities of principal for serial bonds, and the required contributions to an amortization or sinking fund for term bonds. Demand Notes (Variable Rate) ‐ A short‐term security which is subject to a frequently available put option feature under which the holder may put the security back to the issuer after giving specified notice. Many of these securities are floating or variable rate, with the put option exercisable on dates on which the floating rate changes. Double Barreled Bonds (Combination Bonds) ‐ A bond which is payable from the revenues of a governmental enterprise and are also backed by the full faith and credit of the governmental unit. General Obligation Bond ‐ A bond for whose payment the full faith and credit of the issuer has been pledged. More commonly, but not necessarily, general obligation bonds are payable from ad valorem property taxes and other general revenues. Lease Purchase Agreement (Capital Lease) ‐ A contractual agreement whereby the government borrows funds from a financial institution or a vendor to pay for capital acquisition. The title to the asset(s) normally belongs to the government with the lessor acquiring security interest or appropriate lien therein. Letter of Credit ‐ A commitment, usually made by a commercial bank, to honor demands for payment of a debt upon compliance with conditions and/or the occurrence of certain events specified under the terms of the commitment. Level Debt Service ‐ An arrangement of serial maturities in which the amount of principal maturing increases at approximately the same rate as the amount of interest declines. Long‐Term Debt ‐ Long‐term debt is defined as any debt incurred whose final maturity is more than three years. Maturity ‐ The date upon which the principal of a municipal bond becomes due and payable to bondholders. Mini‐bonds ‐ A small denomination bond directly marketed to the public. Net Interest Cost (NIC) ‐ The traditional method of calculating bids for new issues of municipal securities. The total dollar amount of interest over the life of the bonds is adjusted by the amount of premium or discount bid, and then reduced to an average annual rate. The other method is known as the true interest cost (see "true interest cost"). Offering Circular ‐ Usually a preliminary and final document prepared to describe or disclose to investors and dealers information about an issue of securities expected to be offered in the primary market. As a part of the offering circular, an official statement should be prepared by the City 288 | Page describing the debt and other pertinent financial and demographic data used to market the bonds to potential buyers. Other Contractual Debt ‐ Purchase contracts and other contractual debt other than bonds and notes. Other contractual debt does not affect annual debt limitation and is not a part of indebtedness within the meaning of any constitution or statutory debt limitation or restriction. Par Value or Face Amount ‐ In the case of bonds, the amount of principal which must be paid at maturity. Parity Bonds ‐ Two or more issues of bonds which have the same priority of claim or lien against pledged revenues or the issuer's full faith and credit pledge. Principal ‐ The face amount or par value of a bond or issue of bonds payable on stated dates of maturity. Private Activity Bonds ‐ One of two categories of bonds established under the Tax Reform Act of 1986, both of whom are subject to certain tests and State volume caps to preserve tax exemption. Ratings ‐ Evaluations of the credit quality of notes and bonds, usually made by independent rating services, which generally measure the probability of the timely repayment of principal and interest on municipal bonds. Refunding Bonds ‐ Bonds issued to retire bonds already outstanding. Registered Bond ‐ A bond listed with the registrar as to ownership, which cannot be sold or exchanged without a change of registration. Reserve Fund ‐ A fund which may be used to pay debt service if the sources of the pledged revenues do not generate sufficient funds to satisfy the debt service requirements. Self‐Supporting or Self‐Liquidating Debt ‐ Debt that is to be repaid from proceeds derived exclusively from the enterprise activity for which the debt was issued. Short‐Term Debt ‐ Short‐term debt is defined as any debt incurred whose final maturity is three years or less. Spread ‐ The income earned by the underwriting syndicate as a result of differences in the price paid to the issuer for a new issue of municipal bonds, and the prices at which the bonds are sold to the investing public, usually expressed in points or fractions thereof. Tax‐Exempt Bonds ‐ For municipal bonds issued by the City tax‐exempt means interest on the bonds are not included in gross income for federal income tax purposes; the bonds are not items of tax preference for purposes of the federal, alternative minimum income tax imposed on individuals and corporations; and the bonds are exempt from taxation by the State of Illinois. 289 | Page Tax Increment Bonds ‐ Bonds secured by the incremental property tax revenues generated from a redevelopment project area. Term Bonds ‐ Bonds coming due in a single maturity. True Interest Cost (TIC) ‐ Also known as Canadian Interest Cost. A rate which, when used to discount each amount of debt service payable in a bond issue, will produce a present value precisely equal to the amount of money received by the issuer in exchange for the bonds. The TIC method considers the time value of money while the net interest cost (NIC) method does not. Yield to Maturity ‐ The rate of return to the investor earned from payments of principal and interest, with interest compounded semiannually and assuming that interest paid is reinvested at the same rate. Zero Coupon Bond ‐ A bond which pays no interest, but is issued at a deep discount from par, appreciating to its full value at maturity. 290 | Page Investment Policy ______________________________________________________________________________ Policy Number: 01‐08 Date: January 9, 2017 Purpose: 1.01 Policy It is the policy of the City of DeKalb to invest public funds in a manner that will conform to state statute, maximize security, meet daily cash flow demands, and attempt to attain a market rate of return. 1.02 Scope This policy includes all funds governed by the City Council and, except for cash in certain restricted funds, the City of DeKalb will consolidate cash balances to maximize investment earnings. Investment income will be allocated to the various individual funds based on their respective participation. Interest income derived from non‐fund specific consolidated bank accounts will be attributed to the General Fund. 1.03 Objectives The primary objectives of the City of DeKalb's investment activities are, in order of priority: A. Safety of principal Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio, while mitigating credit and interest rate risks, as defined below: 1. Credit Risk, that is, the risk of loss due to the failure of the security issuer or backer. It may be mitigated by:  Limiting investments to the safest types of securities;  Pre‐qualifying the financial institutions, broker/dealers, intermediaries, and advisors with which the City will do business; and  Diversifying the investment portfolio so that potential losses on individual securities will be minimized. 2. Interest Rate Risk, that is, the risk that the market value of securities in the portfolio will fail due to changes in general interest rates. It may be mitigated by:  Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity, and  By investing operating funds primarily in shorter‐term securities 291 | Page B. Liquidity, so as to meet all operating requirements that may be reasonably anticipated, the portfolio shall consist largely of securities with active secondary or resale markets (dynamic liquidity). C. Yield, with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of least importance compared to the safety and liquidity objectives described above. The core of investments shall be limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed. Securities shall not be sold prior to maturity with the following exceptions: 1. a declining credit security could be sold early to avoid loss of principal; 2. a security swap would improve the quality, yield, or target duration in the portfolio; or, 3. liquidity needs of the portfolio require that the security be sold. 1.04 Standards of Care A. Prudence The standard of prudence to be used by investment officials shall be the "prudent person" standard and shall be applied in the context of managing an overall portfolio. Investment officers and employees of the City of DeKalb, while acting in good faith in accordance with this investment policy and any written procedures as might be established, shall be relieved of personal liability for an individual security’s credit risk or market price changes. Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. B. Ethics and Conflicts of Interest City of DeKalb employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. They shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of their entity. C. Delegation of Authority Authority to manage the investment program is granted to the authorized municipal official described in Chapter 54 of the DeKalb Municipal Code. Responsibility for the operation of the investment program is hereby delegated to the Finance Director or his/her designee, who shall carry out established written procedures and internal controls for the operation of the investment program consistent with this investment policy. These procedures shall include references to: safekeeping, delivery vs. payment, investment accounting, repurchase agreements, wire transfer agreements collateral/depository agreements and banking services 292 | Page contracts. All investments shall follow the investment plan designed and approved by the Finance Director or his/her designee prior to execution. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the DeKalb City Council. The Finance Director, as Chief Financial Officer, shall be accountable for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. 1.05 Safekeeping and Custody All trades where applicable will be executed by Delivery vs. Payment (DVP). This shall ensure that securities are deposited in the eligible financial institution prior to the release of funds. Securities will be held by a third party custodian as evidenced by safekeeping receipts. 1.06 Authorized Financial Dealers and Institutions A list shall be maintained of financial institutions authorized to provide investment services to the City of DeKalb, as well as a list of approved security broker/dealers (or their respective custodial clearing firm) selected for creditworthiness (minimum capital requirement of $10,000,000 and at least five years of operation). These may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission rule 15C3‐1 (uniform net capital rule). All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must supply the following (as appropriate): 1. audited financial statements 2. proof of National Association of Securities Dealers (NASD) certification 3. proof of state registration 4. completed broker/dealer questionnaire 5. certification of having read the City of DeKalb’s investment policy and that all investments will comply with the policy An annual review of the financial condition and registration of qualified bidders will be conducted by the Finance Director or his/her designee. 1.07 Internal Controls The Finance Director or his/her designee is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the entity are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. Accordingly, the Finance Director or his/her designee shall establish a process for an annual independent review by an external auditor to assure compliance with policies and procedures. The internal controls shall address the following points: 1. Prevention of collusion 293 | Page  2. Separation of transaction authority from accounting and record keeping. 3. Custodial safekeeping (Securities purchased from any bank or dealer including appropriate collateral, as defined by State Law, shall be placed with an independent third party for custodial safekeeping). 4. Avoidance of physical delivery securities. 5. Clear delegation of authority to subordinate staff members. 6. Written confirmation of telephone transactions for investments and wire transfers (may be via fax if on letterhead and the safekeeping institution has a list of authorized signatures). 7. Development of a wire transfer agreement with the lead bank or third party custodian, which shall outline the various controls, security provisions, and delineate responsibilities of each party making and receiving wire transfers. 1.08 Suitable and Authorized Investments Investment Types Consistent with the GFOA Recommended Practice on State Statutes Concerning Investment Practices, the following investments will be permitted by this policy and are those defined by state law where applicable: 1. U.S. Government obligations, U.S. Government agency obligations, and U.S. Government instrumentality obligations 2. Repurchase agreements 3. Certificates of deposit 4. Savings and loan association deposits 5. Investment‐grade obligations of state, provincial and local governments and public authorities 6. Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolios consist only of domestic securities 7. Statewide investment pools Use of repurchase agreements should be consistent with GFOA Recommended Practices on Repurchase Agreements (see attached "GFOA Recommended Practices"). Consistent with the GFOA Recommended Practice on Use of Derivatives by State and Local Governments, extreme caution shall be exercised in the use of derivative instruments (see attached "GFOA Recommended Practices"). From time to time, the City may choose to invest in instruments offered by minority and community financial institutions. These financial institutions may not meet all the criteria under this section. All terms and relationships will be fully disclosed and authorized by the City Manager prior to purchase and shall be consistent with state or local law. 294 | Page 1.09 Collateralization Funds on deposit (checking accounts, certificates of deposit, etc.) in excess of FDIC or SIPC limits, excluding interest, must be secured by some form of collateral, witnessed by a written agreement (see the attached "GFOA Recommended Practices"). Pledged collateral shall be held in safekeeping by the Federal Reserve Bank of Chicago (or other independent third party designated by the Finance Director or his/her designee) in the name of the municipality. In addition, the value of the pledged collateral must be marked to market monthly, or more frequently depending on the volatility of the collateral pledged. Last, the City requires that the amount of collateral pledged equal 110% of the uninsured amount on deposit. 1.10 Diversification The City of DeKalb shall attempt to diversify its investments appropriate to the nature of the funds, the purpose for the funds, and the amount available to invest. Diversification can be by type of investment, number of institutions invested in, and length of maturity. 1.11 Maximum Maturities To the extent practicable, the City of DeKalb shall attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City of DeKalb will not directly invest in securities maturing more than 3‐years from the date of purchase. Reserve funds may be invested in securities exceeding 3‐years if the maturity of such investments is made to coincide as nearly as practicable with the expected use of the funds. Regardless of the foregoing, no funds may be invested in securities maturing in excess of 7‐years from the date of purchase unless authorized by the City Council. 1.12 Reporting The Finance Director or his/her designee shall prepare a monthly investment and bank balance report for City Council that provides: 1. Cash balances held at the end of the month; 2. A listing of individual securities and corresponding maturities held at the end of the reporting period; 3. The percentage of the total portfolio which each type of investment represents; 4. Inception‐to‐date yields for each individual security; 5. Average weighted inception‐to‐date yield to maturity of the entire portfolio as compared to applicable benchmarks. 1.13 Performance Standards This investment portfolio will be managed in accordance with the parameters specified within this policy. The portfolio should attempt to obtain a comparable rate of return during a market/economic environment of stable interest rates. The portfolio performance should be benchmarked to the return of the 90‐day Treasury bill. 1.14 Investment Policy Adoption The investment policy shall be adopted by the City Council. 295 | Page 1.15 Policy Exemption and Amendment Exemption Any investment currently held that does not meet the guidelines of this policy shall be exempted from the requirements of this policy. At maturity or liquidation, such monies shall be reinvested only as provided by this policy. Amendment This policy shall be reviewed on an annual basis. Any changes must be approved by the City Manager and any other appropriate authority, as well as the individual(s) charged with maintaining internal controls. 296 | Page Performance Measures ______________________________________________________________________________ Overview Performance measurement is the process of collecting, analyzing, and reporting information on the operations of the City’s departments, measuring the effectiveness and efficiency of its programs. Some of the key performance measures of the City of DeKalb: Fiscal Strength One key measure of the City’s fiscal strength, which is publicized throughout the Financial Polices, is the General Fund reserve balance, which is internally required to be maintained at a minimum of 25%: Performance Measure: General Fund Reserve FY 2023 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 (Projected) Total GF Expenditures $37,688,289 $36,192,442 $36,827,804 $36,862,084 $41,387,928 $43,715,657 Ending GF Balance $7,402,857 $10,524,704 $12,286,410 $19,625,868 $25,317,478 $30,172,780 % of Reserve 19.64% 29.08% 33.36% 53.24% 61.17% 69.02% Benchmark 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% Measure Achieved? No Yes Yes Yes Yes Yes A second measure of fiscal strength and a key component of furthering community development, is the change in the City’s tax rate and striving to drive it down by increasing overall EAV: Performance Measure: City Tax Rate 2023 Levy Year 2018 2019 2020 2021 2022 (Projected) City of DeKalb 0.09019 0.08451 0 0 0 0 City of DeKalb Pension 1.09814 1.07042 1.06868 0.98612 0.89599 0.81397 Total 1.18833 1.15493 1.06868 0.98612 0.89599 0.81397 -0.0385 -0.0334 -0.0863 -0.0826 -0.0901 -0.0820 Measure Achieved? Yes Yes Yes Yes Yes Yes In addition to the City’s rate, the City communicates regularly with the other taxing bodies in the County to decrease their rates annually, as the community EAV increases, until a collective aggregate target rate of 9.0000 is achieved: 297 | Page  Performance Measure: All Taxing Bodies Rates Combined Taxing Body 2018 2019 2020 2021 2022 County (blended) 1.09510 1.07520 1.06293 1.03149 0.96761 Forest Preserve (blended) 0.07660 0.07481 0.07396 0.07355 0.06915 DeKalb Township 0.16830 0.16318 0.16002 0.14864 0.14107 DeKalb Road & Bridge 0.19610 0.18671 0.18485 0.17298 0.17052 City of DeKalb 0.09019 0.08451 0.00000 0.00000 0.00000 City of DeKalb Pension Funds 1.09814 1.07042 1.06868 0.98612 0.89599 DeKalb Library 0.20809 0.38683 0.38772 0.38546 0.37454 DeKalb Park District (blended) 0.73664 0.72045 0.70975 0.69631 0.67796 School District 428 (blended) 7.38540 7.18383 7.06491 6.80841 6.09342 Kishwaukee College 0.66834 0.65277 0.65278 0.64100 0.60874 KWRD 0.13754 0.13596 0.13367 0.11998 0.10937 Total Rate 11.86044 11.73467 11.49927 11.06394 10.10837 Change from Prior Year -0.59519 -0.12577 -0.2354 -0.43533 -0.95557 Measure Achieved? Yes Yes Yes Yes Yes Financial Accountability The City annually prepares a budget that exceeds statutory requirements and submits it to the GFOA’s Distinguished Budget Presentation Award Program. Similarly, the City prepares an Annual Comprehensive Financial Report in accordance with GFOA’s Certificate of Achievement for Excellence in Financial Reporting (COA) Program. The number of awards received is listed below. Performance Measure: Excellence in Financial Reporting Received: FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 GFOA Budget Award Yes (4) No Yes (5) Yes (6) Yes (7) Pending Not yet GFOA COA Yes (25) Yes (26) Yes (27) Yes (28) Pending Completed Public Safety The DeKalb Police Department’s Mission Statement: The members of the DeKalb Police Department are committed to reducing crime and enhancing the quality of life through an active partnership with our community. The Department prepares an annual report that outlines the strategies employed by the Department in fulfilling this mission and utilizes performance measures to evaluate the effectiveness of these strategies. A new National Incident-Based Reporting System (NIBRS) was implemented in 2021, which has altered the comparability of the numbers. Some of the more significant measures are as follows: 298 | Page  Performance Measure: NIBRS Totals Offense 2021 2022 Murder 3 1 Negligent Manslaughter 1 0 Justifiable Homicide 1 0 Non-Consensual Sex Offenses 63 76 Agg Battery/Assault 174 125 Simple Assault 1075 981 Intimidation 116 107 Kidnapping/Abduction 12 8 Consensual Sex Offenses 5 1 Human Trafficking-Involuntary Servitude 1 0 Total 1451 1299 The National Incident Based Reporting System (NIBRS) divides all crimes into two categories, Group A and Group B. The chart below groups the most significant crimes against society and crimes against property reported in 2022. Group A Offenses 2021 2022 Robbery 25 31 Burglary/Breaking & Entering 107 80 Larceny/Theft 845 915 Motor Vehicle Theft 71 60 Arson 9 8 Destruction of Property 573 526 Counterfeiting/Forgery 54 38 Fraud Offense 563 351 Embezzlement 3 2 Extortion/Blackmail 7 3 Bribery 0 0 Stolen Property Offenses 2 2 Crimes Against Property Total 2259 2016 299 | Page  Group A Offenses 2021 2022 Drug/Narcotic Violation 234 294 Drug Equipment Violation 37 32 Gambling Offenses 0 0 Pornography/Obscene Material 6 5 Prostitution 4 2 Weapons Law Violation 74 53 Animal Cruelty 3 8 Crimes Against Society Total 358 394 The number of specific incidents may be a useful tool year over year to determine where to focus the Department’s efforts and resources and what level of police officer staffing may be appropriate. Performance Measure: Public Service Calls Calls for Service 2020 2021 2022 Public Service/Miscellaneous (all) 19859 15188 14298 Quality of Life & Nuisances: Disorderly Conduct 636 1175 1231 Suspicious Activity 2036 2020 2082 Behavioral Health Issues 644 672 501 Wellbeing check 1015 1081 1053 Domestic Calls 1660 1732 1826 Municipal Ordinance Violations 1713 1427 853 All Other 2329 2475 2390 Total 29892 25770 24234 The types of calls fielded by the Department also yields useful information on the success or necessity of additional public outreach programs. Behavioral health data, for example, supports the need for the Department’s continued participation in an outsourced social worker program that is part of an agreement with Northwestern Medicine Ben Gordon Mental Health Center. 300 | Page  Performance Measure: Traffic Statistics 2020 2021 2022 Citations Issued 1,976 2,208 3,661 DUI Arrests 57 81 75 Warnings Issued 1,182 1,053 2,386 Parking Tickets Issued 5,179 6,657 5,870 Abandoned Auto 227 287 203 Pedestrian Warnings 9 7 5 Driving Complaints 476 419 645 Parking Complaints 409 754 687 Lastly, traffic statistics may suggest the need for additional traffic patrol; the increase in citations issued is more characteristic of the increase in officer time involved with traffic enforcement. This data continues to aid in department staffing and allocation of department resources. The full 2022 DeKalb Police Department report can be found on the City website at www.cityofdekalb.com The DeKalb Fire Department’s Mission Statement: We are committed to providing the highest level of service to the citizens of DeKalb and those who visit. We strive to continuously seek innovative and effective ways to protect the lives and property of those we serve through suppression, emergency medical services, education, prevention, and training. The Fire Department prepares an annual report that outlines the strategies used by the Department in fulfilling this mission and utilizes performance measures to analyze the 301 | Page effectiveness of employed strategies. Some of the more significant measures are portrayed in the following chart: Performance Measure: Call Volume In 2022, the annual call volume was 7,437 responses, keeping pace with 2021. Frequently, the Fire Department is needed in several locations at once. These simultaneous or “overlapping” calls occurred 2,744 times (an average of 8 times a day) in 2022. The response times from all stations also rise as a result of simultaneous calls, which continue to grow. Of the Department’s 7,437 calls of all types in 2022 (including rural Fire District calls), 2,744 (37%) “overlapped” with other calls requiring recall alerts to fill empty stations and to beef up staff responses already in progress. In 2018, simultaneous calls constituted 2,145 out of 6,082 total calls (35%). The National Fire Protection Agency (NFPA) defines response time as the “time that begins when units are enroute to the emergency incident and ends when units arrive at the scene.” This does not include the time for the alarm, dispatch, and turnout prior to rolling an engine or ambulance. The NFPA gold standard for response times is 4 minutes. There is no silver standard, based on 302 | Page decades of technical study establishing life-saving parameters in both EMS and fireground incidents. 303 | Page  Performance Measure: Emergency Medical Services (EMS) Performance Measure: Fire Incidents The National Fire Incident Reporting System (NFIRS) maintains records of fire department emergency response data, which is analyzed by the U.S. Fire Administration to find trends in emergency services. This data is an important tool for evaluating fire-related issues, developing education campaigns, making recommendations for codes and standards, determining consumer product failures, identifying opportunities for research efforts, and supporting federal legislation. To remain eligible for grant opportunities, our department submits NFIRS reporting data, including the following: • Incident date, time, and location; • Type of incident; • Actions taken by crew members; • Personnel & vehicles dispatched and reporting to the scene; • Supplies and equipment used; • Mutual/automatic aid received or given; and • Narratives of the assessment of the scene and services provided. This data continues to assist with planning for future facility needs, hiring new personnel, purchasing vehicles, procuring other apparatus and tools, and addressing community challenges. The full 2022 DeKalb Fire Department report can be found on the City website at www.cityofdekalb.com. 304 | Page 305 | Page This page has been intentionally left blank. 306 | Page Glossary of Terms ________________________________________________________________________________ The Annual Budget Document contains specialized and technical terminology and acronyms that are unique to public finance and budgeting. To assist the reader of the Annual Budget Document in understanding these terms and acronyms, a budget glossary has been included. Abatement – A complete or partial cancellation of a tax levy imposed by a government. Accrual - The recognition of revenue when earned or expenses when incurred regardless of when cash is received or disbursed. ACFR - Annual Comprehensive Financial Report Ad Valorem Tax - A direct tax based "according to value" of property. Advance Refunding Bonds - Bonds issued to refund an outstanding bond issue prior to the date on which the outstanding bonds become due or callable. Proceeds of the advance refunding bonds are deposited in escrow with a fiduciary, invested in United States Treasury Bonds or other authorized securities, and used to redeem the underlying bonds at maturity or call date. Amortization - The process of paying the principal amount of an issue of bonds by periodic payments either directly to bondholders or to a sinking fund for the benefit of bondholders. Appropriation – A sum of money or total of assets devoted to a special purpose. Assessed Value - An annual determination of the just or fair market value of property for purposes of ad valorem taxation. ARPA – American Rescue Plan Act signed into law in March 2021 to provide additional financial relief in the wake of the COVID-19 pandemic. Audit – An official inspection of an organization's accounts, typically by an independent body. Balanced Budget - A budget for which expenditures in a given fiscal year do not exceed the sum of 1) estimated revenues for the fiscal year, plus 2) the fund balance at the beginning of the fiscal year. Basis Point - 1/100 of one percent. Bond - Written evidence of the issuer's obligation to repay a specified principal amount on a date certain, together with interest at a stated rate, or according to a formula for determining that rate. 307 | Page Bond Counsel - An attorney retained by the City to render a legal opinion whether the City is authorized to issue the proposed bonds, has met all legal requirements necessary for issuance, and whether interest on the bonds is, or is not, exempt from federal and state income taxation. Bond Rating - An evaluation of credit worthiness performed by an independent rating service. Bonded Debt - The portion of an issuer’s total indebtedness represented by outstanding bonds. Direct Debt or Gross Bonded Debt - The sum of the total bonded debt and any unfunded debt of the issuer. Net Direct Debt or Net Bonded Debt - Direct debt less sinking fund accumulations and all self-supporting debt. Total Overall Debt - Net direct debt plus the issuer's applicable share of the direct debt of all overlapping jurisdictions. Net Overall Debt - Net direct debt plus the issuer's applicable share of the net direct debt of all overlapping jurisdictions. Overlapping Debt - The issuer's proportionate share of the debt of other local governmental units which either overlap or underlie it. Budget - Plan of financial operations for the City. Includes estimated income (revenues) and expenses (expenditures) matched with various municipal services. Budget Calendar – The schedule of key dates or milestones that City departments follow in the preparation, adoption, and administration of the budget. Budget Document – The official written document prepared by the Finance Department that presents the operating budget to the legislative body. The document includes written summaries, narratives, schedules of revenues, expenditures, and transfers, charts, and graphs to ease the understanding of the effect of the operating budget on the City’s financial condition. Callable Bond - A bond which permits or requires the issuer to redeem the obligation before the stated maturity date at a specified price, the call price, usually at or above par value. Capital Expenditures - An amount spent to acquire or improve a long-term asset such as equipment or buildings. The cost (except for the cost of land) is then charged to depreciation expense over the useful life of the asset. Capital Improvement Program (CIP) - A plan for future capital expenditures which identifies each capital project, its anticipated start and completion, and the cost per year. The City develops a Five- Year CIP annually as part of the budget development process. 308 | Page Capitalization Threshold – Dollar value at which a government elects to capitalize tangible or intangible assets that are used in operations and that have initial useful lives extending beyond a single reporting period. CARES Act – Coronavirus Aid, Relief, and Economic Security Act passed by U.S. Congress in March 2020. Component Unit – Legally separate organization that must be included in the financial report of the primary government. Contingency - A budgetary reserve set aside for emergencies or unforeseen expenditures. Contractual Services - Services provided by external entities. Debt Service - The amount of money necessary to pay interest on an outstanding debt and the serial maturities of principal for serial bonds. Debt Service Fund – Governmental fund type used to account for accumulations of resources that are restricted, committed, or assigned to expenditures for principal and interest. Department - An organizational unit which is functionally unique in delivery of services. A department may contain one or more divisions or programs. Depreciation - A reduction in the value of an asset with the passage of time, due in particular to wear and tear. Enterprise Funds - Funds that are financed and operated in a manner similar to private business in that goods and services provided are financed primarily through user charges. Enterprise Resource Planning (ERP) System – A system designed to deliver an integrated suite of business applications. In FY18 and FY19, the City implemented a new ERP system (BS&A Software). Expenditures - The cost of goods delivered, or services rendered. Fiduciary Funds – Funds used to report assets held in trustee or agency capacity for others and which therefore cannot be used to support the government’s own programs. Fiscal Year (FY) - A twelve-month period for which the annual operating budget and budget ordinance applies. The City of DeKalb’s fiscal year runs from January 1 through December 31. Five Year Forecast – The City develops Five Year Financial Forecasts for select funds each year to assess the impact of current budgetary decisions over the long-term. 309 | Page Full-Time Equivalent (FTE) – The unit of measurement for an employee calculated as an employee’s scheduled hours divided by the employer’s hours for a full-time workweek. Fund - A self-balancing set of accounts reporting assets, liabilities and residual equity/fund balance segregated for the purpose of carrying on a specific activity or to attain a specific objective in accordance with regulations. Fund Balance - The accumulated reserves of a particular fund, consisting of the cumulative revenues and other financing sources in excess of the cumulative expenditures and other uses. GAAP – Generally Accepted Accounting Principles, the common set of accounting rules, standards and procedures used by the Financial Accounting Standards Board. GASB – Governmental Accounting Standards Board, a private organization creating Generally Accepted Accounting Principles for state and local governments. GEMT – Ground Emergency Medical Transportation – program that provides gap funding between what the City might receive in Medicaid funds for ambulance transports and the actual cost of providing those services. General Fund - This is the City’s primary operating fund. It is used to account for all revenue and expenditures applicable to general operations of City departments and other agencies, not accounted for in another fund. General Obligation Bond - A bond for whose payment the full faith and credit of the issuer has been pledged. More commonly, but not necessarily, general obligation bonds are payable from ad valorem property taxes and other general revenues. Geographic Information Systems (GIS) - A computer information system that integrates, stores, edits, analyzes, shares and displays geographic information to enhance decision making. GFOA – Government Finance Officers Association, a private organization that provides best practice information around accounting, auditing, budgeting, capital planning, debt management, financial reporting, pension and benefit administration, and treasury and investment management to state and local governments. Governmental Fund – Fund generally used to account for tax-supported activities. There are five different types of governmental funds: the general fund, special revenue funds, debt service funds, capital project funds, and permanent funds. Grant - A monetary contribution by a government or an organization to financially support a particular function or purpose. 310 | Page Home-Rule Municipality – A home-rule unit may exercise any power and perform any function pertaining to its government and affairs including but not limited to the power to regulate for the protection of the public health, safety, morals, and welfare; to license; to tax; and to incur debt. The City of DeKalb is a home-rule municipality. HUD – U.S. Department of Housing and Urban Development. Impact Fees - Fees assessed to cover the anticipated cost of services and improvements that will be needed as a result of development. Improvement – Addition made to, or change made in, a capital asset, other than maintenance, to prolong its life or to increase its efficiency or capacity. The cost of the addition or change normally is added to the book value of the asset. Infrastructure – Long-lived capital assets that normally are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets. Examples of infrastructure assets include roads, bridges, drainage systems, water and sewer systems, dams, and lighting systems. Interfund transfer – Flows of assets (such as cash or goods) between funds and blended component units of the primary government without equivalent flows of assets in return and without requirement for repayment. Internal Service Fund - Funds which account for activities supplied by one department to another on a cost-reimbursement basis. The City accounts for fleet, liability insurance and self-insurance activities as internal service funds. Lease Purchase Agreement (Capital Lease) - A contractual agreement whereby the government borrows funds from a financial institution or a vendor to pay for capital acquisition. The title to the asset(s) normally belongs to the government with the lessor acquiring security interest or appropriate lien therein. Letter of Credit - A commitment, usually made by a commercial bank, to honor demands for payment of a debt upon compliance with conditions and/or the occurrence of certain events specified under the terms of the commitment. Long-Term Debt – Debt with a maturity of more than one year after the date of issuance. Major Fund - Those funds whose revenues, expenditures/expenses assets or liabilities are at least 10 percent of the total for their fund category (governmental or enterprise) and 5 percent of the aggregate for all governmental and enterprise funds in total. The General Fund is always a Major Fund. 311 | Page Maturity - The date upon which the principal of a municipal bond becomes due and payable to bondholders. NEU – Non-Entitlement Unit of local government defined under the American Rescue Plan Act as a city that is not a metropolitan city. Non-Major Fund - Funds that do not meet the definition of a Major Fund. Non-major funds are reported in total as a separate column on the government-wide financial statements. OPEB – This is an abbreviation for Other Post Employment Benefits. It is used in reference to the City’s health insurance liability associated with providing health insurance benefits to retirees. Ordinance – A formal legislative enactment by the governing board of a municipality. If it is not in conflict with any higher form of law, such as a state statute, it has the full force and effect of the law within the boundaries of the municipality to which it applies. Par Value or Face Amount - In the case of bonds, the amount of principal which must be paid at maturity. Personnel Costs - A category of expenditures consisting primarily of the salaries, other wages, and fringe benefits of the employees. Principal - The face amount or par value of a bond or issue of bonds payable on stated dates of maturity. Property Tax Levy – The single greatest revenue source of the City and adopted annually by the City Council in December, the property tax levy Ordinance imposes a tax liability on all real estate within the corporate limits. The County establishes the rates required to generate the tax levy established, which is assessed uniformly on all properties’ equalized assessed valuation. Proposed Budget - The spending plan for fiscal year formally submitted by the City Manager to the City Council for consideration. Proprietary Fund – A fund used in governmental accounting to account for activities that involve business-like interactions, either within the government or outside of it. These activities are similar to what would be found in the private sector. Refunding Bonds - Bonds issued to retire bonds already outstanding. Revenue - The financial resources generated from various sources of income, such as taxes and fees, collected by the City for public use. 312 | Page SAFER – Staffing for Adequate Fire and Emergency Response, a federal (FEMA) grant program which provides funding directly to fire departments to increase or maintain the number of trained, frontline firefighters in the city. Special Service Area (SSA) - A contiguous area in which special services are provided in addition to those services provided generally. The cost of the special services is paid from revenues collected through taxes assessed on the property within the special service area. Tax-Exempt Bonds - For municipal bonds issued by the City tax-exempt means interest on the bonds are not included in gross income for federal income tax purposes; the bonds are not items of tax preference for purposes of the federal, alternative minimum income tax imposed on individuals and corporations; and the bonds are exempt from taxation by the State of Illinois. Tax Increment Financing (TIF) - A financing method which utilizes future property tax revenues to stimulate new private investment in redevelopment areas. Growth in the value of the property within the TIF district generates “increment” used to make additional investment in the area. Tax Levy – The total amount to be raised by general property taxes for the purposes specified in the Tax Levy Ordinance. 313 | Page This page has been intentionally left blank. 314 | Page Chart of Accounts ________________________________________________________________________________ EXPENDITURES/EXPENSES PERSONNEL & BENEFITS 41100 WAGES FULL-TIME - Salary expense for full-time employees. 41200 WAGES PART-TIME - Salary expense for part-time employees or seasonal help. 41300 WAGES-OVERTIME - Salary expense paid to non-exempt employees at one and one-half times or two times the employee's regular hourly rate for all hours worked in excess of forty hours per week or eight hours per day, as applicable. 41400 LONGEVITY PAY - Salary expense for employees with contract specific negotiated years of continuous/creditable service. 41500 CLOTHING ALLOWANCE - Amount paid for uniforms and personal protective equipment provided for those public service employees required to wear uniforms while performing their jobs. 41550 CAR ALLOWANCE - Amount paid to employees for monthly car allowance. 41600 WELLNESS BONUS - Salary expense for Fire and Police employees that take a limited amount of sick time per calendar year. 41650 EDUCATION BONUS - Salary expense for full-time, non-probationary Fire employees that obtain a level of education beyond that of high school. 41700 DEFERRED COMPENSATION - The employer cost of employee deferred compensations plans. 41800 HSA CONTRIBUTIONS – The employer cost of HSA contributions to the plans. 41850 INSURANCE OPT-OUT CONTRIBUTIONS – The employer cost of compensation to employees that opt out of City insurance. 41950 SERVICE PENSIONS – Payments to Police Pension and Fire Pension retirees. 41951 NON-DUTY DISABILITY PENSIONS – Payments to Police Pension and Fire Pension retirees. 41952 DUTY DISABILITY PENSIONS – Payments to Police Pension and Fire Pension retirees. 41953 SURVIVING SPOSE PENSIONS – Payments to Police Pension and Fire Pension retirees. 41954 DEPENDENT PENSIONS – Payments to Police Pension and Fire Pension retirees. 315 | Page 41960 SERVICE CREDIT TRANSFER – Payments to Police Pension and Fire Pension retirees for service credit transfers. 41970 CONTRIBUTIONS REFUNDS – Payments to Police and Fire employees previously contributing into the pension funds that have separated from employment. 42100 EMPLOYER PORTION FICA - The employer contribution of Social Security and Medicare, which is currently at 7.65% of gross wages. 42200 EMPLOYER PORTION IMRF - The employer contribution of IMRF, which rate changes annually, and applies to gross wages for all employees covered under the IMRF program. 42300 EMPLOYER CONTRIB/PENSION – Contributions from the City into the Police/Fire Pension Funds. This amount is determined by an actuarial study conducted on an annual basis. 42500 EMPLOYEE HEALTH INSURANCE - Employer amount paid for employee group medical and dental insurance premiums. 42580 EMPLOYEE LIFE INSURANCE - Amount paid for standard monthly funding for IPBC – Intergovernmental Personnel Benefit Funding - for employee life insurance. 42600 WORKERS COMPENSATION/LIABILITY INSURANCE – Contribution to the Internal Service Fund and ultimately to the City’s insurance company for workers compensation insurance coverage for employees of the City and general liability coverage. 42700 UNEMPLOYMENT INSURANCE - Reimbursements to the State of Illinois for unemployment insurance claims filed by former employees. 42999 SECTION 125 PAYMENTS - Amount paid for employee flexible spending account. COMMODITIES 51000 BOARDS & COMMISSIONS - Amount paid for expenses related to the Police and Fire Commission and the Planning and Zoning Commission. 51100 SUPPLIES/PARTS-GROUNDS - Amount paid for supplies and parts to maintain municipal grounds including items for landscaping, trees planted by City personnel, grass seed, plantings, topsoil, etc. 51300 SUPPLIES/PARTS-BUILDINGS - Amount paid for supplies and parts to maintain municipal building mechanical systems including items for plumbing, electric, HVAC, alarm systems etc. 51410 SUPPLIES/PARTS-STREETS - Amount paid for supplies and parts to maintain streets and alleys. 51430 SUPPLIES/PARTS-STORM SEWERS - Amount paid for supplies and parts to maintain municipal storm water systems. 316 | Page 51500 SUPPLIES/PARTS-EQUIPMENT - Amount paid for supplies and minor equipment for the Engineering and Water lab. 51600 SUPPLIES/PARTS-TECHNOLOGY - Amount paid for supplies and minor computer and peripheral equipment. 51700 SUPPLIES/PARTS-VEHICLES - Amount paid for supplies and parts to maintain municipal vehicles. 51996 POTABLE WATER SYSTEM PARTS - Amount paid for supplies and parts to maintain municipal potable water systems. 51997 STREETLIGHTS, PARTS - Amount paid for supplies and parts to maintain streetlights. 51998 TRAFFIC & STREET SIGNS - Amount paid for supplies and parts to maintain traffic and street signs. 51999 SUPPLIES/PARTS-TRAFFIC SIGNALS - Amount paid for supplies and parts to maintain traffic signals. 52000 OFFICE SUPPLIES - Amount paid for pens, pencils, markers, post-its, staples, binders, folders, dividers, pads, calendars, cassette tapes, ribbons, paper, ink, etc. 52500 JANITORIAL SUPPLIES - Amount paid for operating supplies such as cleaning supplies (sweeping compound, glass cleaner, etc.), paper towels, toilet tissue, testing and exam supplies, pesticides/herbicides, signs posts, cabinets, small tools, non-personal safety equipment, and other equipment. 52600 PATROL SUPPLIES & EQUIPMENT - Amount paid for supplies and equipment for Police Patrol Officers, including gloves, evidence supplies, trauma bags, testing supplies, etc. 52700 INVESTIGATION SUPPLIES & EQUIPMENT - Amount paid for supplies and equipment for Investigation Officers, including office supplies, car rental, etc. 52800 FIREFIGHTING SUPPLIES & EQUIPMENT - Amount paid for supplies and equipment for Fire personnel, including items for uniform maintenance. 52900 AMBULANCE SUPPPLIES & EQUIPMENT - Amount paid for supplies and equipment required to stock an ambulance. 53000 OPERATING SUPPLIES - Amount paid for airport supplies, including safety harnesses, etc. 53099 ACTIVITIES & SUPPLIES - Amount paid for activities such as employee service plaques, employee events, etc. 53100 ICE/SNOW CONTROL SUPPLIES - Amount paid for ice and snow control supplies such as road salt, ice melt, etc. 317 | Page 53200 WATER SYSTEM CHEMICALS - Amount paid for potable water chemicals such as, salt, chlorine, hydrofluosilicic, etc. 53300 SMALL TOOLS & EQUIPMENT - Amount paid for operating supplies such as small tools, non-personal safety equipment, and other equipment costing less than $1,000. 54000 UNIFORMS/PROTECTIVE CLOTHING - Amount paid for purchase and maintenance of uniforms such as cleaning, embroidery, safety glasses, etc. 55000 FUEL, OIL, & LUBRICANTS - Amount paid for gasoline and oil used in municipal vehicles. 55100 AIRPORT FUEL (FOR RESALE) - Amount paid for Airport fuel. 58110 DUI FINES EXPENDITURES - Amount paid for supplies related to DUI enforcement, including mouthpieces, manuals, gloves, etc. 58120 ANTI-CRIME EXPENDITURES - Amount paid for anti-crime prevention activities such as Live Healthy, Camp Power, domestic violence database, etc. 58130 CRIME LAB EXPENDITURES - Amount paid for expenses related to the crime lab such as, lab supplies, carbon filters, masks, etc. 58140 POLICE FORFEITURES EXPENDITURE - Amount paid for items related to vehicle seizures, K- 9 expenses, vehicle/bicycle repairs, riot helmets, etc. 59900 LIBRARY MATERIALS - Amount paid for materials purchased for the Library. 59999 COMMODITIES - Amount paid for miscellaneous purchases such as Prisoner meals, sympathy arrangements, etc. CONTRACTUAL 61100 MAINTENANCE-GROUNDS - Amount paid for contracted maintenance of municipal grounds including labor and materials for mowing, landscaping, trimming, fertilization, aeration, planting, spoils disposal, stump removal, etc. 61300 MAINTENANCE-BUILDINGS - Amount paid for contracted maintenance of municipal buildings including labor and materials for plumbing, electrical, HVAC, alarm systems, etc. 61400 MAINTENANCE-INFRASTRUCTURE - Amount paid for contracted maintenance of municipal infrastructure. 61420 MAINTENANCE-STREETS - Amount paid for contracted maintenance of municipal streets, paths, wells and storage, meters and hydrants, water lines, right of way areas, etc. 61430 STORM MAINTENANCE-STORM SEWERS - Amount paid for repair and maintenance of storm water systems. 61450 MAINTENANCE-SIDEWALKS - Amount paid for contracted maintenance of sidewalks. 318 | Page 61500 MAINTENANCE-EQUIPMENT - Amount paid for contracted maintenance of municipal equipment including labor and materials for office machines, copiers, radios and electronics, desks, fans, air conditioners, movie cameras, recorders, VCRs, fire extinguishers, first aid kits, hoists, generators, central telephone systems, trailers, non-licensed wheeled equipment, etc. 61599 WARNING SIRENS - Amount paid for warning sirens services. 61700 MAINTENANCE-VEHICLES - Amount paid for contracted maintenance of municipal vehicles including labor and materials for automobiles, trucks, sweepers, salt spreaders, snowplows, permanently installed accessories, etc. 61800 MAINTENANCE-SOFTWARE - Amount paid for maintenance of technology resources such as annual renewal of software licenses and subscriptions. 61900 MAINTENANCE-BOOKS - Amount paid for maintenance related to books at the Library. 61999 MAINTENANCE AIRPORT - Amount paid for repair and maintenance at the airport. 62099 PRINTED MATERIALS - Amount paid for printing newsletters, letterhead/stationery, envelopes, work order forms, business cards, checks, application forms, program brochures, etc. 62100 FINANCIAL SERVICES - Amount paid for contracted accounting services such as auditing, bookkeeping, attestations, and other related functions. 62110 FINANCIAL SERVICES - AUDIT - Amount paid for auditing services in the pension funds. 62120 FINANCIAL SERVICES - ACTUARY - Amount paid for actuarial services in the pension funds. 62150 INVESTMENT SERVICES - Amount paid for investment management services in the pension funds. 62200 LEGAL SERVICES - Amount paid for contracted legal advice and services. 62300 ARCHITECT/ENGINEER SERVICES - Amount paid for architect and engineering fees. 62301 REBUILD ARCHITECT/ENGINEER SERVICES - Amount paid for architect and engineering fees from the Rebuild America Grant. 62400 TECHNOLOGY SERVICES - Amount paid for technology services including monthly/annual maintenance contracts, copier expenses, consulting fees, etc. 62500 LAB TESTING SERVICES - Amount paid for contracted services for lab testing services. 62600 MEDICAL SERVICES - Amount paid for pre-employment physicals, drug screens, required medical testing for various employees, psychological examinations of applicants as part of the testing process, wellness program expenditures, and payments to health care providers and employee reimbursements made in connection with the City’s partially self-funded health insurance plan. 319 | Page 62700 HUMAN & SOCIAL SERVICES - Amounts paid for Human Services Fund and Community Development Block Grant Funds. 62750 INSURANCE SERVICES – Amounts paid for insurance service charges. 62800 UNEMPLOYMENT INSURANCE SERVICES – Amounts paid for unemployment insurance service charges. 62900 PERSONNEL RECRUITMENT SERVICES - Amount paid for advertisements such as employee recruitment ads, bid notices, legal notices, and other required notices. 63000 SPECIAL EVENT SERVICES - Amount paid for items related to special events such as cake for employees retiring, Alderman reception, funeral flowers, etc. 63100 FORESTRY SERVICES - Amount paid for expenses related to maintenance of municipal tree inventory including tree and stump removal, Emerald Ash Borer treatment, etc. 63150 50/50 TREE PLANTING - Amount paid for half of parkway tree replacements, split with the property owner. 63200 MOSQUITO ABATEMENT SERVICES - Amount paid for contracted mosquito abatement services such as spraying. 63300 NUISANCE ABATEMENT SERVICES – Amount paid for contracted nuisance abatement services. 63400 SNOW REMOVAL SERVICES - Amount paid for contracted maintenance of municipal vehicles including labor and materials for automobiles, trucks, sweepers, salt spreaders, snowplows, permanently installed accessories, etc. 63500 TOWING SERVICES - Amount paid for towing services. 63600 WEATHER SERVICES - Amount paid for weather services including monitoring of pavement temperature, live radar, etc. 63650 LAND ACQUISITION SERVICES - Amount paid for fees and services for land acquisition. 63700 DEVELOPMENTAL SERVICES - Amount paid for contracted development services. 63750 DEMOLITION SERVICES - Funds to assist with property demolition. 63800 CONTRACTED SERVICES - Amount paid for contracted services including building inspections, plan review, band director, etc. 63900 OTHER PROFESSIONAL SERVICES - Amount paid for consulting fees and services. 63950 LIBRARY PROGRAMS – Amount paid for programs offered at the Library. 63955 GRANT FUNDED PROGRAMS – Amount paid for programs that are grant funded. 320 | Page 63960 DONATIONS/FRIENDS OF THE LIBRARY - Amount paid for Library gifts and donations. 63965 ENDOWMENTS AND MEMORIALS - Amount paid for Library memorials. 63970 LIBRARY ELECTRONIC RESOURCES - Amount paid for parts and maintenance of the Library database. 63998 FLEX ADMINISTRATION - Amount paid to third party administrator for flexible spending account program. 63999 TPA ADMINISTRATION - Amount paid to third party administrator for workers' compensation program. 64000 UTILITIES - Amount paid for utility services, including gas and electric. 64100 ELECTRIC SERVICES - Amount paid for electricity for streetlights, water system power, municipal buildings, and airport power. 64200 NATURAL GAS SERVICES - Amount paid for natural gas service to municipal buildings. 64300 REFUSE REMOVAL SERVICES - Amount paid for contracted refuse removal services. 64400 SEWER SERVICES – Amount paid for sewer services. 64500 TELEPHONE SERVICES - Amount paid for all telecommunication expenses including, local, long distance, cell phones, etc. 64600 CABLE/INTERNET SERVICES – Amount paid for cable and internet services. 65100 FREIGHT & POSTAGE - Amount paid for freight and postal related services such as stamps, bulk mailings, overnight deliveries, permits, etc. 65200 MARKETING ADS & PUBLIC INFO - Amount paid for marketing advertising and public information including posters, maps, advertisement for bid, etc. 65300 LEGAL EXPENSES & NOTICES - Amount paid for legal expenses and notices including appraisals, motions, public hearing, etc. 65400 TAXES, LICENSES, & FEES - Amount paid for expenses related to taxes, license and fees including property taxes, CDL license renewal, notary renewal, etc. 65500 RENTAL-BLDG & EQUIP - Amount paid for rent or lease of vehicles, equipment, land, and buildings such as portable toilets, tools, etc. 66100 DUES & SUBSCRIPTIONS - Amount paid for membership dues for various professional organizations. Amount paid for books, magazines, periodicals, pamphlets, maps, internet access, weather service, training films and DVDs, etc. 321 | Page 66200 TRAINING/TRAVEL - Amount paid for attendance at professional conferences and meetings by municipal personnel and elected officials, luncheon meetings where presentations are given, and amount paid for training related costs such as registration, fees, tuition, travel expenses, etc. by municipal personnel for professional development. 66300 TRAVEL EXPENSES – Amount paid to municipal employees for travel reimbursement. 66400 EDUCATION TUITION REIMBURSEMENT - Amount paid to municipal employees for successful completion of course work for tuition reimbursement. 67100 EMPLOYEE HEALTH INSURANCE PREMIUM - Amount paid for standard monthly funding for IPBC – Intergovernmental Personnel Benefit Funding for employee health insurance. 67200 LIBRARY HEALTH INSURANCE PREMIUM - The employer cost of employee insurance premiums for Library employees. 67300 RETIREE HEALTH INSURANCE PREMIUM - Amount paid for standard monthly funding for IPBC - Intergovernmental Personnel Benefit Funding for retiree insurance. 67400 PEHP PLAN - The employer cost of post- employment health care benefits offered to Fire department employees. 67500 WELLNESS BENEFIT PAYMENTS - Amounts paid to municipal employees for reimbursement of wellness activities including reimbursement for gym memberships, wellness classes, etc. 68100 ECONOMIC DEVELOPMENT INCENTIVE - Amount paid to encourage redevelopment activities within the city. 68200 PRIVATE PROPERTY REHAB - Amounts paid to partially reimburse property owners to enhance their properties within the city. 68300 REDEVELOPMENT COSTS – Amounts paid to redevelop blighted properties. 68600 TIF SURPLUS DISTRIBUTION – Portion of TIF property taxes that is distributed to other taxing bodies based on intergovernmental agreements. 68750 TAX SHARING AGREEMENTS - Disbursements to other taxing bodies stemming from various revenue sharing agreements. 69100 CLAIMS: LIAB & PROP INSURANCE - Amount paid for self-insured general and automotive liability losses. 69150 CLAIMS: WORK COMP INSURANCE - Amount paid for self-insured workers’ compensation claims. 69199 PRIV PROP REHAB/REDEVELOP – Amounts paid to redevelop or rehab private property. 69200 SURETY BONDS - Amount paid for surety bonds for Mayor, City Manager, Treasurer and Clerk, as well as amounts paid for notary bonds. 322| Page 69700 SPECIAL PROJECTS – Amount paid for projects needed in the downtown business district. 69710 DOWNTOWN ENHANCEMENTS – Amount paid for enhancements to the downtown business district, such as planters, signs, etc. 69800 UTILITY REBATE PROGRAM - Costs associated with the Utility Rebate Program, a program offered to residents based on certain qualifications offering assistance for local taxes paid for utilities. 69997 COLLECTION AGENCY - Amount paid for collection agency fees for the Library. 69998 PROFESSIONAL CONSULTING (IT) - Amount paid for professional consulting fees and services for the Library. 69999 CONTINGENCIES - Amounts set aside to cover unanticipated expenditures throughout the budget year. DEBT SERVICE/OTHER 71000 BAD DEBT EXPENSE – Amount charged for uncollectable receivables. 72100 DEPRECIATION – PUBLIC SAFETY - Amount charged as an expense for an expired portion of a public safety capital asset. 72200 DEPRECIATION – GEN GOVERNMENT - Amount charged as an expense for an expired portion of a general government capital asset. 72300 DEPRECIATION – HIGHWAY & STREET - Amount charged as an expense for an expired portion of a highway or street capital asset. 72400 DEPRECIATION – COMM IMPROVEMENT - Amount charged as an expense for an expired portion of a common improvement capital asset. 72500 DEPRECIATION - WATER - Amount charged as an expense for an expired portion of a capital asset. 72600 DEPRECIATION - AIRPORT - Amount charged as an expense for an expired portion of a capital asset. 72900 DEPRECIATION – LIBRARY - Amount charged as an expense for an expired portion of a Library capital asset. 73000 GAIN/LOSS ON DISPOSAL – Amount recognized, gain or loss on the disposal of a capital asset. 75000 DEBT SERVIC - PRINCIPAL - Amount paid for principal payment on bonds, debt certificates, and other debt instruments. 323 | Page 76000 DEBT SERVICE - INTEREST - Amount paid for charges on borrowed funds at an agreed upon rate. 77000 LOAN PRINCIPAL - Amount paid for principal payment on loans, debt certificates, and other debt instruments. 78000 LOAN INTEREST - Amount paid for interest payment on bonds, debt certificates, and other debt instruments. 79000 CAPITAL LEASE PRINCIPAL - Amount paid for principal payment on capital leases. 79100 CAPITAL LEASE INTEREST - Amount paid for interest payment on capital leases. 79800 PAYMENT TO ESCROW AGENT - Amount paid to escrow agent to refund bonded debt. 79850 BOND ISSUANCE COSTS - Amount paid for administrative fees in combination with the issuance of bonded debt. 79901 DEBT FINANCING – Amount paid for debt financing costs. CAPITAL OUTLAY 81000 LAND ACQUISITION - Amount paid for capital purchases of land. 82000 BUILDINGS & IMPROVEMENTS - Amount paid for remodeling and renovation. 83000 STREET IMPROVEMENTS - Amount paid for capital street construction or reconstruction. 83050 STREET MAINTENANCE - Amount paid for capital street improvements and maintenance. 83100 ALLEY IMPROVEMENTS - Amount paid for capital alley improvements. 83200 STORM SEWER IMPROVEMENTS - Amount paid for capital storm sewer system improvements. 83300 PARKING LOT IMPROVEMENTS - Amount paid for capital parking lot improvements. 83800 BONDED CAPITAL IMPROVEMENTS – Amount paid for bonded capital improvements. 83850 GRANT FUNDED CAPITAL IMPROVEMENTS – Amount paid for grant funded capital improvements. 83900 OTHER CAPITAL IMPROVEMENTS- Amount paid for capital improvements. 83901 REBUILD TRANSPORTATION CONSTRUCTION – Amount paid for transportation construction costs funded by the Rebuild Illinois grant. 83999 SIGNALS & INTERSECTIONS - Amount paid for capital signal and intersection improvements. 324 | Page 85000 WATER MAINS - Amount paid for capital water main improvements. 85100 WATER METERS - Amount paid for the acquisition of water meters. 85200 LEAD SERVICE REPLACEMENT – Amont paid for replacement of leas service lines. 85500 WATER SYSTEM IMPROVEMENTS- Amount paid for the improvements to the water systems. 86000 EQUIPMENT - Amount paid for the acquisition of municipal equipment. 86100 TECHNOLOGY EQUIPMENT - Amount paid for the acquisition of technology equipment. 86200 OFFICE FURNITURE & EQUIPMENT - Amount paid for the acquisition of office furniture and equipment. 86300 TELEPHONE & RADIO EQUIPMENT - Amount paid for the acquisition of office furniture and equipment. 86301 LEASED EQUIPMENT – Amount paid for the acquisition of leased equipment. 87000 VEHICLES - Amount paid for the acquisition of municipal vehicles. 87010 VEHICLES/UPFITTING – POLICE – Amount paid to upfit Police vehicles. 87020 VEHICLE/UPFITTING – PUBLIC WORKS – Amount paid to upfit Public Works vehicles. 87030 VEHICLES/UPFITTING – OTHER – Amount paid to upfit other vehicles. 87100 LEASE PURCHASE VEHICLES – Amount paid to lease vehicles for purchase. TRANSFERS OUT 91100 TRANSFER TO GENERAL FUND - Amount of permanent transfers to the General Fund. 91130 TRANSFER TO GEMT FUND – Amount of permanent transfers to the GEMT Fund. 91200 TRANSFER TO TRANSPORTATION FUND - Amount of permanent transfers to the Transportation Fund. 91210 TRANSFER TO MFT FUND - Amount of permanent transfers to the Motor Fuel Tax Fund. 91260 TRANSFER TO TIF #1 - Amount of permanent transfers to the Tax Increment Financing Fund #1. 91262 TRANSFER TO TIF #3 - Amount of permanent transfers to the Tax Increment Financing Fund #3. 325 | Page 91285 TRANSFER TO REHAB FUND - Amount of permanent transfers to the Housing Rehabilitation Fund. 91300 TRANSFER TO DEBT SERVICE FUND - Amount of permanent transfers to the General Fund Debt Service Fund. 91375 TRANSFER TO TIF DEBT SERVICE FUND - Amount of permanent transfers to the TIF Debt Service Fund. 91400 TRANSFER TO CAPITAL PROJECTS FUND - Amount of permanent transfers to the Capital Projects Fund. 91410 TRANSFER TO FLEET FUND - Amount of permanent transfers to the Fleet Replacement Fund. 91420 TRANSFER TO CAPITAL EQUIPMENT FUND - Amount of permanent transfers to the Equipment Fund. 91600 TRANSFER TO WATER FUND - Amount of permanent transfers to the Water Fund. 91620 TRANSFER TO WATER CAPITAL FUND - Amount pf permanent transfer to the Water Capital Fund. 91650 TRANSFER TO AIRPORT FUND - Amount of permanent transfers to the Airport Fund. 91700 TRANSFER TO WORKERS COMP/LIABILITY FUND - Amount of permanent transfers to the Workers Compensation/Liability Fund. 91710 TRANSFER TO HEALTH INSURANCE FUND - Amount of permanent transfers to the Health Insurance Fund. 91720 TRANSFER TO PROPERTY/LIAB FUND - Amount of permanent transfers to the Liability Insurance Fund. 91830 TRANSFER TO POLICE PENSION FUND - Amount of permanent transfers to the Police Pension Fund. 91850 TRANSFER TO FIRE PENSION FUND - Amount of permanent transfers to the Fire Pension Fund. 326 | Page  Full Time Non Bargaining Unit Pay Plan - 2024 Pay Range PAY MINIMUM MID POINT MAXIMUM TITLES GRADE Administrative Associate 1 45,760 56,056 66,351 Video Evidence Technician 2 48,167 59,004 69,842 Administrative Assistant 3 50,574 61,953 73,332 Building Permit Coordinator 4 52,582 64,413 76,245 5 54,590 66,873 79,157 Accountant 6 61,662 75,536 89,410 Human Resources Coordinator 7 63,981 78,377 92,772 8 65,140 79,798 94,454 Management Analyst Community Services Coordinator 9 66,301 81,219 96,135 Code Compliance Coordinator Records Supervisor Executive Assistant GIS Manager 10 75,159 92,070 108,832 Senior Accountant Public Works Superintendent (Street, Utility) 11 84,517 103,532 122,549 Communications Coordinator Airport Manager 12 87,118 106,720 126,321 Assistant Transit Manager Assistant Finance Director 13 90,853 111,294 131,736 Transit Manager Recruitment Manager Chief Building Official City Engineer 14 100,130 122,659 145,188 Police Commander Planning Director Director of Financial Services 15 106,409 130,351 154,293 Deputy Police Chief 16 109,577 134,232 158,888 Deputy Fire Chief Assistant City Manager Director of the Crime-Free Bureau Director of Streets, Facilities & Airport 17 112,745 138,112 163,480 Director of Utilities, Transportation & Engineering Finance Director Human Resources Director Information Technology Director Police Chief 18 118,945 145,709 172,472 Fire Chief MKT City Manager 327 | Page  Part‐Time Non Bargaining Unit Pay Plan ‐ 2024 PAY HOURLY PAY TITLES GRADE MINIMUM MAXIMUM A Office Associate 20.76 29.03 Community Service Officer B 22.00 31.90 Administrative Associate Court Security Officer C Maintenance Worker 24.31 35.26 Airport Line Service Multimedia Technician D Telecommunicator 24.60 37.93 Transit Grants Assistant * fixed rates apply for seasonal laborer, and intern positions 328 | Page