Finance Advisory Committee

AGENDA Joint City Council & Finance Advisory Committee Meeting Thursday November 3, 2016 5:30 p.m. City Hall Council Chambers (Second Floor) A. Call to Order B. Roll Call for Attendance C. Public Participation D. Approval of Minutes E. Financial Policies F. Revenues G. FY2017 Budget: General Fund H. FY2017 Budget: Water, Airport and Capital Funds I. FY2017-FY2021 Capital Improvement Plan (CIP) J. Approval of Recommendations Regarding E and F K. Other Items 1. Confirm next meeting date November 8, 2016 L. Adjournment The Finance Advisory Committee’s role (as listed in Chapter 54-11) is to provide well- reasoned, financially sound recommendations to the Council. Meetings and reporting shall be on a project-by-project basis or as otherwise assigned by the City Council. The Finance Advisory Committee shall work in cooperation with the City Council and the City Manager to analyze the City’s financial policies, long term financial stability, options for greater efficiencies and possible revenue and expenditure modifications. DATE: October 17, 2016 TO: Honorable Mayor John Rey City Council Finance Advisory Committee FROM: Anne Marie Gaura, City Manager Cathy Haley, Finance Director SUBJECT: Policies for review Below are the financial policies that have been incorporated in the budget process for review by the City Council and the Finance Advisory Committee. Several changes are being recommended due to the fiscal year change for the City and the incorporation of a long-term Capital Improvement Program (CIP). P age |1 41 Budget Policy ______________________________________________________________________________ Policy Number: 01-01 Date: November 3, 2016July 27, 2015 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. Management shall prepare a draft of the annual budget for review by the City Council and the Finance Advisory Committee in October/NovemberApril of each year. The recommended budget should be submitted to the City Council for review and a public hearing in Novemberin May of each year. The final budget document shall be submitted to the full membership for approval prior to December 31June 30 of each year. 2. The annual budget should effectively communicate meaningful and understandable information to the City residents, City Council, City Staff, and other readers. 3. 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 quarterly budget summary report (Treasurer’s Report) shall be presented to the City Council. 4. The annual budget should allow for the implementation of as many of the City Council’s goals and objectives from the 2025 strategic plan as financially possible. 5. 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 and determine if these pension funds are adequately funded. 6. The annual budget should provide funding for the adequate maintenance of municipal equipment, municipal facilities, and infrastructure. 7. 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 eliminate major expenditure jumps in the annual budget when these acquisitions are made. 8. 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. 9. 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. 10. 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%. This fund reserve will be calculated by comparing the difference between current assets and current liabilities to current annual budget operating expenses, excluding enterprise expenditures. 11. When the City is 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 the following procedures will be followed. 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: 12.a. Upon knowledge that a budget amendment and/or expenditure transfer Formatted will be required, the City’s Finance Director will inform both the Finance Committee and the City Council. 13.b. Documents will be drafted by the Finance Director with the reason for Formatted the required budget amendment and/or expenditure transfer, including the specific accounts affected and the dollar amounts of said amendments and/or expenditure transfers. 14.c. Formal City Council review and approval of proposed budget Formatted amendments and/or expenditure transfers will be required before any amendments and/or transfers are executed by the Finance Director. Fund Balance Policy ______________________________________________________________________________ Policy Number: 01-02 Date: November 3, 2016July 27, 2015 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: Nonspendable 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. 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 particular 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. The Capital Projects Fund should maintain a fund balance of the planned improvements for the current fiscal year equivalent to meet the planned improvements identified in a multi-year capital 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 nonspendable 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 before less restricted, in the following order:  Nonspendable (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 Fund: The unrestricted net assets of the Water Fund will be maintained at a minimum level equal to 25% of the annual budgeted operational expenses, plus the amount needed to meet the planned improvements identified in a multi-year capital schedule(s).  budgeted capital improvements (stemming from the water system construction impact fees). Airport Fund: The unrestricted net assets of the Airport Fund will be maintained at a minimum level equal to 25% of annual budgeted operational expenses, plus the budgeted capital improvements for the current fiscal year. Other Specified Funds: The Health Insurance Fund should maintain unrestricted net assets of one month of IPBC premium. Any amount above this threshold may be transferred to the Workers’ Compensation Fund or Liability/Property Insurance Fund to be used toward claims, eliminate potential deficits, or maintain net asset policy in these other Funds. The Workers’ Compensation 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). The Liability/Property Insurance Fund should maintain unrestricted net assets approximately equivalent to 25% of annual budgeted expenses. The Fleet Replacement Fund will account for revenue and expenditures associated with the acquisition of City vehicles and major equipment (i.e. trailers and plows). A chargeback system from each division and Fund requiring vehicles will be utilized as the main revenue source. The Fleet Replacement Fund should maintain unrestricted net assets of the planned replacements for the current fiscal year. The Equipment Fund is used to track the resources collected for and used in obtaining major improvements to equipment which costs over $5,000 and has a useful life expectancy of at least three years. Equipment to be funded includes computer equipment, office furniture, copy and facsimile machines and other like equipment. A chargeback system from each division and Fund requiring equipment will be utilized as the main revenue for the Fund. The Equipment Fund should maintain unrestricted net assets of the planned replacements for the current fiscal year. 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. On a quarterly basis, the City Council shall receive an update on the General Fund with a year-end forecast for the fiscal year and also receive a summary of major fund balances. TIF Funds will be reported in greater detail to Council by the end of March and by the end of September of each 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. Capital Equipment Replacement Fund Policy Number: 01-03 Date: November 3, 2016 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, revenue received from the E911 Board for OSSI payments will be dedicated annually as well as, transfers by each department from the General Fund determined annually through the budget process. The remainder of this policy is intended to provide guidance as to how the CERF will operate. Formatted: Font: 12 pt 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 Formatted: Font: 12 pt by the City or as a means to circumvent the process for having new equipment approved by Formatted: Font: 12 pt the City Council. Requests for new equipment shall be made as part of the annual operating Formatted: Font: 12 pt budget and must be approved by the City Council before acquisition; Formatted: Font: 12 pt 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 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 replacement cost and useful life for each vehicle or technology related equipment will be re-evaluated by the individual departments on an annual basis. This re-evaluation may change the annual amounts that programs contribute for the replacement of each item. 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. 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. Formatted: Font: 12 pt Formatted: Font: 12 pt Revenue and Expenditure Policy ______________________________________________________________________________ Policy Number: 01-043 Date: November 3, 2016July 27, 2015 Formatted: Tab stops: 4", Left Purpose: 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, Fire and IMRF pensions per actuary calculations. If the actuarial reports indicated 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 FICA. c. Levy for general obligation bond principal and interest less abatements. d. 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. e. 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. 3. The City Manager should impose spending limits if, in his/her judgment, revenues will be below original estimates. Staff should review and monitor on a monthly basis expenditures to assure control of spending within available revenues. 4. Ongoing transfers will be made from the General Fund to the Fleet 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. Accounting, Auditing and Financial Reporting Policy ______________________________________________________________________________ Policy Number: 01-054 Date: November 3July 27, 2015 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 yearsby 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 Comprehensive Annual Financial Report (CAFR) 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 Council (GASB). The City should contract with an independent actuary to determine the City’s annual contribution to the Police and Fire Pension Funds. When the City prepares monthly significant account reconciliations, prepares the year-end adjustments, and prepares the year-end financial statements, the following procedures will be followed. 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. 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 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 audited financial statements 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. Capital Asset Policy ______________________________________________________________________________ Policy Number: 01-065 Date: November 3, 2016July 27, 2015 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, traffic signals and signs are capitalized. In the case of the initial capitalization of general infrastructure assets (i.e., those reported by the governmental activities) the government chose to include all such items regardless of their acquisition date. The valuation basis for general capital assets are historical cost, 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 10 to 20 Years Vehicles 3 to 20 Years Infrastructure 25 to 50 Years Water Distribution System 40 to 65 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 sign off that these procedures have been adhered to for the purchase of every federal funded capital asset. Those procedures are as follows: 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. A physical inventory of all assets acquired with federal funds will be performed on a biennial basis. The results of the City’s inventory of federally funded capital assets will be reconciled to the City’s capital asset records to ensure accuracy. This inventory will be overseen and approved by the City’s Finance Director. Debt Management Policy ______________________________________________________________________________ Policy Number: 01-076 Date: November 3, 2016July 27, 2015 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. Maintain 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 attain a General Fund unassigned balance equal to a minimum of twenty five percent (25%) of total annual expenditures.appropriations, exclusive of inter fund transfers.  4. Consider market timing. 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 Purposes 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.  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 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 a capital lease of no more than $1,000,000 in a fiscal year. 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 The Capital Improvement Program (CIP), approved by the City Council as part of the Formatted: Highlight 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 in keeping with the City's stated policies on debt management. 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 in Section III. E-4 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. 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  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 appropriations, exclusive of interfund transfers. Such calculation, including a projection to June 30th (of the current fiscal year), should be made on an annual basis by the Finance Director (or designee) during the budget process. 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 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. 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. 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. 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. 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 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. 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. Investment Policy ______________________________________________________________________________ Policy Number: 01-087 Date: November 3, 2016July 27, 2015 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 Formatted: Left 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 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 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 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. 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. 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. RETURN TO AGENDA DATE: October 21, 2016 TO: Honorable Mayor John Rey City Council Finance Advisory Committee FROM: Anne Marie Gaura, City Manager Tim Holdeman, Public Works Director SUBJECT: Revenues (FY2017 Budget) I. Summary Fuel for City vehicles is purchased through a contract administered by the Public Works Department. The fuel is delivered to the City’s fuel farm located at 1316 Market Street and dispensed through a self-service pumping system. The system includes a fuel tank safety system and computerized accounting system. The fuel system is used by all City departments as well as Voluntary Action Center (VAC), Children’s Learning Center (CLC), and the Park District. Currently, the VAC, CLC, and Park District pay an additional $.03 per gallon administrative fee. A review of costs associated with the fuel farm was recently conducted and the cost per gallon pumped was calculated to be $0.0923. The calculation of this cost is detailed below. COST TO PUMP FUEL AT CITY FACILITIES Capital Investment Original cost Life Expectancy Amortization Fuel Dispensing System (1995) $311,936 50 $6,239 per year Operating Costs Cost Maintenance / Regulatory Testing (Average of last 8 years) $2,711 per year Personnel (Ordering, Vendor Management, Maintenance, Testing) $4,408 per year Cost to City $13,358 per year Average Annual Fuel Pumped (last 3 years) 144,799 gallons Average Cost to the City per Gallon Pumped $0.0923  II. Recommendation In order to recover the direct costs associated with providing other agencies with vehicle fuel, it is recommended that the administrative fee charged to the VAC, CLC, and Park District be increased from $0.03 to $0.09 per gallon. Currently, the City receives about $1,500 annually from the administration fee. Implementation of the increase could be completed over multiple years. The annual increase in administrative fees per gallon of fuel and the revenue from these fees for different implementation periods is shown below. Fee Increase Period Revenue From Administrative Fees (Years) Administrative Fee Collected (based on 50,000 gallons) 2017 2018 2019 2017 2018 2019 1 $0.090 $0.090 $0.090 $4,500 $4,500 $4,500 2 $0.060 $0.090 $0.090 $3,000 $4,500 $4,500 3 $0.045 $0.068 $0.090 $2,250 $3,375 $4,500 Page |2 RETURN TO AGENDA DATE: October 19, 2016 TO: Honorable Mayor John Rey City Council Finance Advisory Committee FROM: Anne Marie Gaura, City Manager Cathy Haley, Finance Director SUBJECT: Proposed FY2017 Budget General Fund Summary Please find for your review and consideration the proposed Fiscal Year (FY) 2017 Budget for the City of DeKalb. The City has switched its fiscal year to coincide with the calendar year and this is the inaugural budget for a 12-month period of time running from January – December 2017. This budget incorporates the total program of City expenditures and supporting revenues for the coming year, working to continue to keep fund balance reserves at the recommended levels set forth by the City Council. The operating and capital budgets contained herein have been prepared in accordance with Illinois statutes, the City Municipal Code and generally accepted accounting principles. The budget document is the culmination of months of effort by City staff to balance available resources with service priorities. The dollars set forth in the budget provide a means of measuring the costs of services, programs and projects. This assists in making cost/benefit judgments on the value of services offered. More than a financial document, the budget represents the process by which municipal policy is made, programs put into effect and legislative and administrative controls established. The annual budget is prepared under the direction of the City Manager with coordination by the Finance Director. Each department director formulates that segment of the budget related to his or her department, presents it to the City Manager and the Finance Director, and then makes revisions as necessary or recommended. After revenue and expenditure estimates are finalized, the full draft budget is then reviewed during joint meetings of the City Council and the Finance Advisory Committee. If necessary, further revisions are made. Finally, the recommended budget is offered for comment at a public hearing and subsequent adoption by the Mayor and the City Council. The City’s budget was prepared using a “target‐based” approach. The target‐based budget has two primary components: a "target level" budget that finances a basic level of municipal services; and an unspecified number of incremental expenditure requests considered by the City Manager. GENERAL FUND OVERVIEW The General Fund, which is the City’s main operating fund, has estimated budgeted revenues for FY2017 (without transfers) of $35,819,662 and estimated budgeted expenditures (without transfers) of $34,861,695. The General Fund is showing a surplus in FY2016 of over $1.0 million bringing fund balance reserves up to 27%. FY2016.5 is showing a deficit of $403,524 which accounts for one time transfers to the Fleet and Equipment to purchase items such as ambulances and squad cars that are well past their life expectancies. Even with this one time transfer amount, FY2016.5 fund balance reserves are being maintained at the financial policy goal of 25%. GENERAL FUND SUMMARY FY 2015 FY 2016 FY 2016.5 FY 2016.5 FY 2017 Actual Actual Budget Estimate Budget REVENUES Property Taxes 4,203,086 4,231,993 5,094,730 5,094,730 5,948,756 Sales & Use Taxes 14,871,442 15,009,558 7,875,550 7,875,550 15,432,641 Franchise & Utility Tax 3,919,346 3,701,236 1,795,000 1,795,000 3,867,000 Licenses & Permits 902,452 1,069,443 428,650 428,650 1,104,350 Intergovernmental Revenues 5,152,467 5,346,898 2,681,530 2,681,530 5,196,175 Service Charges & Fees 1,850,465 1,950,960 1,023,750 1,023,750 2,252,675 Fines 803,428 749,130 370,500 370,500 789,819 Other Income 1,379,258 1,015,129 888,302 888,302 1,228,246 REVENUES NET OF TRANSFERS 33,081,944 33,074,347 20,158,012 20,158,012 35,819,662 Transfer In 2,211,417 1,558,884 688,666 688,666 1,314,401 TOTAL GENERAL FUND REVENUES 35,293,361 34,633,231 20,846,678 20,846,678 37,134,063 EXPENDITURES Legislative 299,501 301,446 102,687 102,687 164,711 City Manager's Office 1,136,537 1,058,728 606,600 606,600 1,117,593 Human Resources 0 253,906 274,034 274,034 455,954 Finance 1,660,999 664,946 353,410 353,450 692,894 IT 0 783,360 409,521 409,346 929,247 Community Development 835,936 1,047,615 829,645 832,170 1,431,030 Public Works 3,328,795 3,286,770 1,980,322 1,958,692 3,840,566 Fire 9,308,910 9,863,844 6,843,743 6,843,743 10,529,849 Police 11,124,811 11,533,571 7,708,309 7,708,309 12,914,492 General Fund Support w/out Transfers 3,960,146 3,001,516 1,580,572 1,528,902 2,785,359 EXPENDITURES NET OF TRANSFERS 31,655,635 31,795,702 20,688,843 20,617,933 34,861,695 Transfers Out 2,556,959 1,536,138 612,569 612,569 1,787,306 TOTAL GENERAL FUND EXPENDITURES 34,212,594 33,331,840 21,301,412 21,230,502 36,649,001 Surplus/(Deficit) 1,080,767 1,301,391 (454,734) (383,824) 485,062 ENDING FUND BALANCE 8,018,755 9,320,146 8,865,412 8,936,322 9,421,384 PERCENTAGE OF EXPENDITURES 23.44% 27.96% 26.60% 26.81% 25.71% WHERE THE MONEY COMES FROM WHERE THE MONEY GOES The General Fund accounts for the provision of essential services expected from a local government and is supported, primarily, by taxes, but also charges for service, fines, and various fees. Intergovernmental revenue is primarily Income Tax revenue. Other income includes the property tax surplus dollars and the sales tax surplus dollars we receive from the Central Area TIF District. With FY2016 projecting to end with a surplus of over $1.0 million and the proposed FY2017 budget showing a surplus of $485,062 the City’s fund balance is projected to increase to 25.71% of annual expenditures or over $9,400,000. This is the strongest fund balance reserve the City has had in more than 13 years. General Fund Reserve Balance History 9,421,384 9,320,146 8,865,412 8,018,755 7,144,433 5,177,514 4,669,218 2,692,928 2,161,911 416,652 22,169 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016.5 2017 Projection Budget Budget GENERAL FUND REVENUE ASSUMPTIONS The FY2017 General Fund budget is based upon estimated revenues from taxes, fees, and other sources totaling $35,819,662, before transfers in. This represents an increase in Income Tax revenues and Local Use Tax revenues based on the most recent Illinois Municipal League (IML) projections. These revenues also include the most recent revenue fee increases for ambulance billing and video gaming licensing. Several major categories of C i t y revenue are described in greater detail as follows: State & Home Rule Sales Tax – Sales tax represents 42% of total General Fund revenues. In the State of Illinois, there is a base 6.25% sales tax on general merchandise. It is administered and collected by the Illinois Department of Revenue. One percent of the Sales Tax is distributed to the municipality where the sale occurred. This tax is captured in the City’s General Fund and is used for basic City operations. The City also imposes a 1.75% Home Rule Sales Tax. This tax, while approved locally, is administered and collected by the Illinois Department of Revenue. These two sources of sales tax revenue have remained fairly flat over the last four years. The FY2017 budgeted dollars show an increase between 2-3% for both these revenue sources based on the increase in building permit activity and Community Development activity being seen now and in the future. Property Tax – The property tax revenue for FY2017 budget year shows it accounts for 16% of all General Fund revenue. This is an increase in this revenue source compared to the total tax base. In FY2016 this revenue source only accounted for about 12% of total General Fund revenue. The City approves a tax levy in December of each year, and, the following year, the DeKalb County Treasurer collects the funds and remits them to the City. This budget will be the first fiscal year that coincides with the passing of the tax levy. Actuarial valuations for both the police and fire pension funds came in high as was expected. The City committed to returning back up to the higher finding level in a two phase jump, with FY2016.5 being the first step and FY2017 being the second step. This increase to get these two pension funds back to the “Entry Age Normal” funding method recommended both by Moody’s and the Government Accounting Standard Board (GASB) equals $854,026. The FY2017 budget reflects this increase to property tax revenue and pension contributions for Police and Fire. Therefore, it is a one for one revenue increase to expenditure increase. While residents live within the City limits, their property tax bill is comprised of no less than 10 separate taxing districts. Each taxing district determines the total dollar amount to levy on the property which resides within the taxing district boundaries. Below shows the total 2015 tax bill percentage break-out for a current resident living in the City of DeKalb. About 8% of a resident’s current tax bill goes to the City. On a home with a market value of $150,000 the total tax bill would be $6,648. Of that, $597 goes to the City, in comparison to $4,125 going to the largest group which is the School District. While the City currently only levies dollars to cover a portion of the City’s mandated pension obligations, a resident receives the services of the City which include, police protection, fire protection, street maintenance including street sweeping and snowplowing for $597 a year. State Income Tax – State Income Tax, which is included under Intergovernmental Revenues, is the third largest source, 14%, of General Fund revenue. As with sales tax, income taxes are collected by the State of Illinois and distributed to the City on a per capita basis. The FY2017 budget for income tax revenue is based on the most recent projections from the Illinois Municipal League (IML) in August 2016. That projection equates to $102.50/capita or $4,513,075, which is about a .5% increase over the FY2016.5 budgeted amount. While income tax receipts were hit hard by the downturn in the economy, they have continued to show an upswing through FY2016.5. The City has been closely monitoring pending legislation at the state and federal levels to stay abreast of any issues that may have an impact on the City. Interfund Transfers- The transfer in to the General Fund from the Water Fund is again for a payment in lieu of taxes calculation recommended by the EPI study. This increased by $44,900 from last fiscal year. In FY2016 expenditures were changed to directly hit the Water Fund, which allowed for the elimination of the lump transfer from the Water Fund which had been done in years past meant to cover costs in the General Fund. This direct charge to the Water Fund becomes much more transparent and allows the City to comply better with GASB statement 34 by showing charges in the correct activity group. (Governmental vs. Business Type) The City’s General Fund has also relied heavily over the last several years on annual transfers from the two TIF funds. Below shows a chart of the effect this revenue source will have on the General Fund over the next seven years. This assumes the City Council will increase the Property Tax levy dollar request at the end of each of the TIFs to capture the new growth brought on by their closing. TIF impact on the General Fund FY 16 FY16.5 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 Transfer to GF TIF #1 $678,576 $339,288 $678,576 $678,576 $678,576 $678,576 $678,576 $678,576 $0 Transfer to GF TIF #2 $113,198 $56,599 $113,198 $113,198 $113,198 $0 $0 $0 $0 TIF Property Tax Surplus $190,221 $185,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $0 TIF Sales Tax Surplus $350,000 $339,915 $320,000 $305,000 $290,000 $275,000 $260,000 $255,000 $0 Pick-up in Property Tax $95,754 $95,754 $95,754 $656,274 Revenue to the General Fund $1,331,995 $920,802 $1,291,774 $1,276,774 $1,261,774 $1,229,330 $1,214,330 $1,209,330 $656,274 Overall, the reliance of transfers from other funds in to the General Fund has started to decrease and will continue to decrease to help create a sustainable General Fund for City operations. GENERAL FUND EXPENDITURE ASSUMPTIONS FY2017 expenditures in the General Fund total $36,649,001, including interfund transfers. This represents expenditures for the time period of January 1, 2017 through December 31, 2017. A transfer of $215,042 is budgeted to the Airport Fund in order to balance the budget. There is no additional needed transfer to be done to the Health Insurance Fund. This fund is “funded” through the health insurance line item under personnel located within each department within the General Fund and is sufficient to cover all the needed costs for FY2017. Salary Assumptions  Police Union Contract ended June 30, 2016. This contract is currently in negotiations.  AFSCME Union Contract ended December 2016. This contract will begin negotiations shortly.  Fire Union Contract salaries increased by 2.5% through June 30, 2017 based on the approval of this contract by City Council. This contract expires at June 30, 2017.  Assumptions were made on all employee groups including Non-bargaining unit employees for salary increases to ensure placeholder amounts will be adequate within the FY2017 budget.   All salary increases will need City Council approval prior to being implemented. Staffing Changes  There are no recommended staffing changes within the General Fund budget for FY2017. Other Expenditure Assumptions- • Additional training under the Legislative budget for Elected Official training - $3,650 • Additional Competency training under HR - $5,500 • New folding machine Finance - $2,389 • Priority Based Budgeting software and training - $30,000 • Additional training dollars IT Director - $2,500 • CH14 Hardware refresh - $6,000 • FOIA tracking and processing software - $9,780 • Enhancement Commission training - $2,500 • MABAS Primary Transmitter - $8,367 • Two Police Department Vehicles have been budgeted under the Fleet Fund using restricted revenue from Police Forfeitures, DUI fines, Crime lab and Anti-Crime Activities. This is revenue collected in the General Fund and transferred out to the Fleet Fund. - $66,896 CONCLUSION The proposed FY2017 budget maintains the high level of service residents and businesses expect, and that visitors enjoy, in a fiscally sound manner. This budget is focused on planning for the future. City staff is working to implement a true 5-year plan in FY2018 by implementing the 2025 Strategic Plan Goals, continuing to update the 5-year financial forecast, incorporating a 5-year Capital Improvement Plan in FY2017 and looking for true funding sources to implement this plan in FY2018. This budget is keeping the General Fund reserves at 25%, implementing phase two of funding the pension funds back to the higher funding method as suggested by GASB and Moody’s, aligning these contributions with the tax levy as is stated in the City’s financial policies, the EPI 2013 report and shows a one for one dollar to the revenue and expenditure side of these mandatory expenses. In FY2017, the increase in Part-time staffing level was in the Transportation Fund within the Public Works Department. The City is strictly a fiscal and staffing agent for the management of the DeKalb- Sycamore Area Transportation Study (DSATS) and the Metropolitan Planning Organization (MPO). This Fund is completely separate from the General Fund operations. No staffing levels were increased in any of the City operational funds in FY2017. Finally, a new 5-year CIP will be presented during the second joint budget meeting with the City Council and the Finance Advisory Committee. Moving forward, the budget will guide and ensure the City’s continued progress in times of economic uncertainty. The uncertainty regarding legislation State of Illinois lawmakers may enact is somewhat troubling, as their decision regarding the Local Government Distributive Fund (income tax distributions) could profoundly impact municipalities state-wide. However City staff will continue to identify “Best Practices” to assist in implementing specific policies and procedures to continue to contribute to improved government management. This will continue to promote and facilitate positive change rather than merely to codify current accepted practice. RETURN TO AGENDA DATE: October 26, 2016 TO: Honorable Mayor John Rey City Council Finance Advisory Committee FROM: Anne Marie Gaura, City Manager Cathy Haley, Finance Director Tim Holdeman, Director of Public Works SUBJECT: Proposed FY2017 Budget Water, Airport and Capital WATER FUND OVERVIEW The Water Fund accounts for the cost of providing water service to the community. This fund is considered an enterprise fund, meaning revenues are restricted for use only within the fund. Meaning all rates and charges for service are set to cover costs. Expenditures running through this fund are supported through charges for services and user fees. Revenues for FY2016 are $5,689,828, which is $686,205 greater than budgeted. This surplus will be a direct increase in the Water Fund’s cash reserves. The purpose of these reserves in the Water Fund is to supplement revenues during uneven cash flow or unexpected drop in revenues, as well as for the replacement, repair, and maintenance of equipment, or any unplanned capital improvements. The fund balance policy for the Water Fund is “The unrestricted net assets of the Water Fund will be maintained at a minimum level equal to 25% of annual budgeted operational expenditures, plus the budgeted capital improvements for the current fiscal year. In FY2017 Fund 61 was created to track the 10-year CIP approved by the City Council in 2015. Currently 66.67% of the rate increase goes in to this fund and the remaining revenue that is needed to continue implementation of this 10-year CIP is a transfer from the Water operating fund. This plan comes with projected rate increases for the next 5 years with an adjustment for the CPI in those years after that time period. While revenues are coming in higher than budget, the economy is still having an impact on water revenue. Foreclosures, closed businesses, and a tendency to conserve water are all contributing factors that continue to drive down the City’s water sales. In addition, the general trend towards using water‐saving fixtures and toilets is reducing water consumption. Water revenues being the primary source of revenue to the Fund, there is little the City can do other than raise rates to ensure sufficient operating revenue and reduce operating costs when possible. Scheduled rate increases allow the City to better plan and address the future capital needs while also rebuilding its fund balance to an adequate operating level. FY2017 revenues are budgeted at $5,483,680. This is a relative increase from last fiscal year due to the rate increase. FY2017 expenditures equal $7,169,438. Of this amount, $1,955,000 is a transfer to the Water Capital Fund for Capital expenditures such as a new End Loader, routine water meter replacements, various water main replacements and the painting of the North Water Tower. The Capital portion of the Water Fund related to impact fee revenue was split out in to its own fund in FY2016 (Fund 61). This revenue is restricted for “new” water main lines and construction. No expenditures have been budgeted in this fund for FY2017. Ending fund balance for this fund is projected to equal $1,191,190 at the end of FY2017. At the end of FY2017 cash and cash equivalents within the Water Operations Fund are projected to be $3,083,275. Subtracting 25% of the annual budgeted operational expenditures for operational costs leaves $1,779,665 to cover costs related to capital and infrastructure. For FY2017 transfers from the Water Operations Fund to the Water Capital Fund will equal current budgeted capital projects minus 66.67% of revenues generated from the new revenue generated from the rate increase approved during the water rate study in 2015. Ending Cash $3,955,543 Less 25% Operation Reserve ($1,531,266) Remaining for Capital and Infrastructure $2,424,277 Ending Cash and Cash Equivalents $3,083,275 Les 25% Operation Reserve ($1,303,610) Remaining for Capital and Infrastructure $1,779,665 WATER FUND EXPENDITURE ASSUMPTIONS Salary Assumptions  AFSCME Union Contract ends December 2016. This contract will begin negotiations shortly.  Assumptions were made on all employee groups including Non-bargaining unit employees for salary increases to ensure placeholder amounts will be adequate within the FY2017 budget.  All salary increases will need City Council approval prior to being implemented. Staffing Changes  There are no recommended staffing changes within the Water Fund budget for FY2017. Other Expenditure Assumptions • Vehicles Replace – W-9 Cargo Van $40,000 • Machinery & Major Tools Replace W-21 544H JD Loader $180,000 • Water Meters Routine Meter Replacement and New Construction $150,000 • Water Main Replacement South 11th Street $169,750 • Water Main Replacement Lewis St. to Vienna Blvd. $262,500 • Water Main Replacement Maplewood Ave. $99,750 • Water Main Replacement Sunset Pl. (S. 1st St. to S. 2nd St.) $367,500 • Water Main Replacement South 6th Street /Culver to Tyler. Project includes a $160,000 CDBG Grant. $310,000 • Water System Improvements North Water Tower Painting $530,500  AIRPORT FUND OVERVIEW The Airport Fund accounts for the cost of providing services at the Airport. Just like the Water Fund, the Airport Fund is an enterprise fund and the accounting and budgeting is similar to that of the private sector. Expenditures running through this fund are supported through fuel charges and hangar rental charges. Anticipated revenues for FY2016 are coming in almost $200,000 less than budgeted. Anticipated expenditures are trending slightly behind budget dollars. If current projections are accurate, the Airport will have an ending cash and cash equivalent balance of ($159,750). In the event the fund goes in to a negative cash position at the end of FY2016 or FY2016.5, an interfund loan will be done at year-end until the fund swings back in to the black. The intention continues to try to have this fund be a “true” enterprise fund that can stand on its own. Staff has been and will continue to review current fees being charged at the Airport. For FY2016.5, an increase in hangar rental fees was implemented. FY2017 revenues are budgeted at $953,842 and expenditures at $951,542. CAPITAL DISCUSSION The Current FY2016 budget has one Capital Improvement Fund (50) and two Capital Fleet and Equipment Funds (52 & 53). CAPITAL IMPROVEMENT FUND The Capital Improvement Fund accounts for the capital costs associated with City buildings, street improvements, storm water improvements, bikeway paths, park improvements, etc. Budgeted revenues for FY2017 are $360,000. This revenue is 2 cents of the local motor fuel tax the City imposes on local gas stations. The total local motor fuel tax is 3.5 cents/gallon. The other 1.5 cents is dedicated to paying off the debt of the Public Safety building and will go away once this debt is paid off. This currently is the only dedicated revenue the City has going towards Capital Projects. CAPITAL PROJECT EXPENDITURE ASSUMPTIONS Expenditure  Fire Station Repairs, $30,000  2017 Street Maintenance including South 6th Street, $320,000  Non TIF Sidewalks, $20,000 CAPITAL FLEET AND EQUIPMENT FUND Currently these are two separate funds. One is for Fleet and one is for Equipment. During the audit for FY2016, these two funds will be combined into one fund titled “Capital Equipment Replacement Fund” (CERF). This fund should provide for the long-term financial planning for routine replacement of major capital equipment. The replacement of the equipment and fleet is typically funded by transfers from the operating funds as well as some dedicated revenue sources. Budgeted revenues for FY2017 are $273,506 for the Fleet Fund and $170,500 for the Equipment Fund. This revenue includes rental income the City receives from the water tower leases, E911 reimbursements and transfers from the General Fund. CAPITAL FLEET AND EQUIPMENT EXPENDITURE ASSUMPTIONS The expenditures in FY2017 for fleet are $66,896 for two Ford Utility Interceptors for the Police Department, $40,000 for a Chevy Suburban for the Fire Department and $140,000 for a new dump truck with a plow and salt spreader for Public Works. There is also the annual loan payment for a Fire Truck of $16,667 which will end in FY2027. Equipment budgeted for FY2017 is as follows:  City Wide Network Switches, $15,000  Color scanner/plotter, $21,000 partially funded through transfers from the Water Fund and the Transportation Fund.  LifePak 12 Monitors, $44,181  Radio Portable HT1000 (31) Fire Department, $25,000  Mobile Data Browser Replacement Police Department, $8,000  Furniture replacement program City Hall, $20,000  New Computer Cycles, $16,000  Exchange Server 2016 or Office 365, $25,000  Storm Sewer Inspection Camera, $10,000 Capital assets include major government facilities, infrastructure, equipment, fleet and networks that enable the delivery of public sector services. The performance and continued use of these capital assets is essential to the health, safety, economic development and quality of life of those receiving services. Budgetary pressures have impeded capital program expenditures or investments for maintenance and replacement for the City of DeKalb. This has made it increasingly difficult to sustain the asset in a condition necessary to provide expected service levels. Ultimately, deferring essential maintenance or asset replacement could reduce the City’s ability to provide services and could threaten public health, safety and overall quality of life. In addition, as the physical condition of the asset declines, deferring maintenance and/or replacement could increase long-term costs and liabilities. City staff will be recommending the establishment of a true 5-year Capital Improvement Plan (CIP) and a true Capital Equipment Replacement Fund (CERF) to encourage adequate capital spending levels. A government’s financial and capital improvement plans should address the continuing investment necessary to properly maintain its capital assets. Such practices should include proactive steps to promote adequate investment in capital maintenance and replacement at necessary levels. Government Finance Officers “BEST PRACTICE” Recommendation. The Government Finance Officers Association (GFOA) recommends that local, state and provincial governments establish a system for assessing their assets and then appropriately plan and budget for any capital maintenance and replacement needs. OTHER MAJOR FUND EXPENDITURES The City of DeKalb’s budget includes other funds that account for specific programs or projects, including, Debt Service, Motor Fuel Tax (MFT), Tax Increment Financing District (TIF), Special Service Areas (SSA’s), and Police and Fire Pension Funds.  Debt Service – The City’s General Obligation principal and interest debt payments for FY2017 are budgeted at $2,939,155. Of that amount, $1,078,000 is paid for with TIF Funds. The remaining $1,861,155 is paid using 1% of Hotel Motel tax revenue, 1.5 cents of the Local Motor Fuel tax revenue and transfers from the General Fund. In FY2017 the General Fund is transferring $1,493,998 to cover General Obligation Debt payments. MFT Fund FY2017 Project Listing  Salt, $100,000  Electricity, $350,000  Sidewalk Maintenance, $125,000  2017 Street Maintenance, $200,000  Coordinated Traffic Signal Update Design, $285,000  Annie Glidden & Fairview Intersection, $275,000  Kishwaukee Bike Path, $395,000 TIF Funds – The City has two Tax Increment Financing (TIF) districts– the Central Area TIF #1 and TIF #2. The Central Area TIF is set to expire December 31, 2020 and TIF#2 is set to expire March 31, 2018. The last year of property tax collection for each district is December 31, 2021 and December 31, 2019, respectively. With the expiration of the TIFs approaching within the next 5 years, a staff TIF Phase-Out Team was formed in FY14 to identify highly transformative projects for completion with the remaining funds. FY2017 budgeted expenditures total $9,322,235 and include the following projects: TIF#1  Structural Commercial Program, $150,000  Architectural Improvement Program, $37,500  Street Maintenance, $500,000  Economic Development Incentives, $500,000  Airport Improvements, $124,500  Wi-Fi, Music, Signage, Miscellaneous, 30,000 TIF#2  City Hall Building Department Renovations/Improvements, $195,000  Street Maintenance, $500,000 RETURN TO AGENDA DATE: October 21, 2016 TO: Honorable Mayor John Rey City Council FROM: Anne Marie Gaura, City Manager Tim Holdeman, Public Works Director Cathy Haley, Finance Director SUBJECT: FY2017 – FY2021 Capital Improvement Plan I. Background The City of DeKalb’s Capital Improvement Plan (CIP) identifies and prioritizes individual capital projects and equipment necessary to sustain and improve the City’s infrastructure and provide core municipal services. The purpose of the CIP is to facilitate the orderly planning of infrastructure improvements and equipment purchases by coordinating the location, timing and financing of these investments over several years. Incorporating the CIP in the budgeting process promotes the best use of the City’s limited financial resources, links strategic plans with fiscal capacity, and assists in the coordination of public and private development. The City’s CIP is a five-year roadmap which identifies the major expenses over and above routine annual operating expenses. While the CIP serves as a long range plan, it is intended to be reviewed and revised annually. Priorities may change year-to-year due to funding opportunities or circumstances that cause a more rapid deterioration of an asset. As a basic tool for documenting anticipated capital needs, it includes projects and equipment for which a need has been identified, but specific funding solutions have not been determined. In preparing the CIP, best practices recommended by the Government Finance Officers Association (GFOA) have been followed, including Multiple-Year Capital Planning (2006) and Incorporating the Capital Budget into the Budget Document (2016). These documents are attached. II. CIP Development Process Recently initiated (FY2016 and FY2016.5) capital improvement projects were cataloged and summarized by the Finance Department. Ongoing capital improvement projects were identified and the remaining expenditures expected for the projects were allocated over the project period. Department Directors were provided FY2016 and FY2016.5 capital improvement project summaries and asked to verify the information. The Directors were also asked to submit a Capital Needs Survey based on: 1) their department’s long- term (5-year) needs, 2) requirements to implement the City’s Strategic Plan, 3) the need to maintain current service levels, and 4) the need to meet renewal and replacement demands on existing infrastructure and equipment. The Capital Needs Surveys were received from the departments in August 2016. Each identified need included the associated Strategic Plan vision, asset type, stage, and the internal department priority. In addition, each project was assigned to the responsible person and division. Projected expenditures for each project were submitted along with a funding source. The Public Works Department received the individual department submittals and compiled them into a Capital Needs Master List for review by the Finance Department. The Finance Department identified funding constraints for each of the applicable funds. The CIP Review Team (City Manager and all Department Heads) reviewed the Capital Needs Master List and assessed each project based on the aforementioned standards. Projects were prioritized and the highest priority projects were selected within the constraints of the applicable funds. These projects are included in the Capital Improvement Plan. Capital Budget Request Forms were completed for all FY2017 projects selected to be included as part of the Capital Improvement Plan. III. Definitions The National Council on Government Accounting has defined the Capital Improvement Plan (CIP) as: “A plan for capital expenditures to be incurred each year over a fixed period of years to meet capital needs arising from the long‐term work program or otherwise.” A capital improvement project is defined as a major project requiring the expenditure of public funds (over and above operating expenditures of public funds) for the purchase, construction or replacement of the physical assets of the community. If applicable, this normally includes land for the project. A capital improvement project has a useful life of over one‐year and has a value of $10,000 or more. Projects generally fall within one of the seven primary categories identified below: • Airport – Plans, projects, and capital purchases for improving the buildings, runways, and equipment associated with Airport operations. • Building/Property - Plans, projects, and capital purchases associated with buildings and properties that the City owns and manages. Page |2  • Equipment – Capital purchases of equipment used in carrying-out the operations of the City. • Fleet – Capital purchases of vehicles and other large moving equipment that the City owns and manages. • Storm water – Plans, projects, and capital purchases that involve the improvement of the City’s storm water collection system. • Transportation – Plans, projects, and capital purchases involving streets, bike lanes, pedestrian crossings, paths, trails, and rail. • Water – Plans, projects, and capital purchases that involve the improvement of the City’s drinking water production, treatment, or distribution systems. The nature and amount of the project generally determine financing options as do the availability of funds. The following funds are used in part, or entirety, to fund capital improvements: • Transportation Fund (9) • Motor Fuel Tax Fund (10) • TIF #1 Fund (13) • TIF #2 Fund (14) • Community Development Block Grant Fund (19) • Capital Improvement Fund (50) • Capital Fleet Fund (52) • Equipment Fund (53) • Water Fund (60) • Water New Construction Fund (61) • Water Capital Fund (62) • Airport Fund (65) Page |3  IV. FY2017 – FY2021 CIP Overview The FY2017 – FY2021 CIP is a comprehensive program. There are 292 individual projects or equipment purchases identified in the plan. A listing of these projects sorted by funding source and by category is attached. These projects and purchases represent all the currently anticipated capital requirements of the City during the next five years. Most of the cost assumptions included in this program are preliminary estimates that will require refinement as more serious discussion and implementation of the specific program progresses. Certain projects are included in the CIP only under the assumption that an opportunity may be presented for larger agency funding assistance or benefited property owner cost sharing. Should that opportunity not occur, the project might, of necessity, be dropped or deferred to another year. The Funding Source Summary table (below) provides a summary of the funding required by source and by year to implement the projects identified in the CIP. A distinction is made in the table between City funds (upper portion) and grants (lower portion). Projects with funding identified or funding secured in this five-year CIP total approximately $77.5 million with approximately $29.7 million coming from state and federal grants. Charts illustrating the distribution of City funds and grants for FY17 – FY21 totals are presented on page 5. City of DeKalb Capital Improvement Program FY2017 - FY2021 FUNDING SOURCE SUMMARY Source (City Funds) FY17 FY18 FY19 FY20 FY21 Total 50 - Capital Improvement Fund 370,000 2,476,000 3,230,000 3,983,777 1,305,000 $11,364,777 62 - Water Capital Fund 2,115,000 1,688,750 1,223,600 1,306,800 1,518,599 $7,852,749 14 - TIF #2 Fund 785,000 3,100,000 3,100,000 100,000 - $7,085,000 9 - Transportation Fund 1,648,158 1,380,653 500,000 2,000,000 - $5,528,811 10 - Motor Fuel Tax Fund 1,730,000 780,000 1,130,000 565,000 600,000 $4,805,000 52 - Capital Fleet Fund 263,563 1,676,078 395,479 787,458 1,082,797 $4,205,375 13 - TIF #1 Fund 2,190,000 370,850 337,850 382,850 312,850 $3,594,400 53 - Equipment Fund 173,681 736,821 467,700 118,700 111,000 $1,607,902 60 - Water Fund 87,500 265,000 305,000 204,900 150,000 $1,012,400 65 - Airport Fund - 140,100 270,000 146,700 35,800 $592,600 19 - Com. Dev. Block Grant Fund 159,986 - - - - $159,986 61 - Water New Construction Fund - - - - 67,500 $67,500 SUBTOTAL - FUNDS 9,522,888 12,614,252 10,959,629 9,596,185 5,183,546 $47,876,500 Source (Grants) TIGER - Trans. Inv. Gen. Econ. Recovery - 18,280,000 - - - $18,280,000 TIP - Transpotation Improvement Program 813,400 657,900 4,499,500 778,050 452,200 $7,201,050 STU - Federal Surface Transportation - Urban 960,000 - 1,120,000 - - $2,080,000 ITEP - IL Transportation Enhancement Program 1,312,500 - - - - $1,312,500 FHA - Federal Highway Administration - Earmarks - - 779,000 - - $779,000 SUBTOTAL - GRANTS 3,085,900 18,937,900 6,398,500 778,050 452,200 $29,652,550 GRAND TOTAL 12,608,788 31,552,152 17,358,129 10,374,235 5,635,746 $77,529,050 Page |4 Page |5  Every project in the CIP falls into one of the seven primary categories previously described. The table below is a summary of costs by category of the projects contained in the FY17 – FY21 CIP. The amounts listed in the table are funded by City funds and do not include grant funding. A chart showing the totals for each category follows the table. City of DeKalb Capital Improvement Program FY2017 - FY2021 CATEGORY SUMMARY Category FY17 FY18 FY19 FY20 FY21 Total Transportation 4,289,878 3,975,000 4,780,000 6,493,777 1,690,000 $21,228,655 Water 2,494,986 1,953,750 1,528,600 1,511,700 1,736,099 $9,225,135 Building/Property 1,137,500 3,447,850 3,447,850 447,850 322,850 $8,803,900 Fleet 1,195,395 1,986,231 395,479 747,458 1,082,797 $5,407,360 Equipment 232,181 871,321 487,700 178,700 131,000 $1,900,902 Airport 139,500 155,100 270,000 191,700 35,800 $792,100 Stormwater - 150,000 50,000 25,000 185,000 $410,000 TOTAL 9,489,440 12,539,252 10,959,629 9,596,185 5,183,546 $47,768,052 Page |6 V. FY2017 CIP The funding for CIP projects planned for FY17 is incorporated into the Draft Proposed Budget FY17 December 31, 2017. The City funding sources for FY17 projects are listed in the Funding Source Summary Table (page 4) and shown graphically below. The FY17 CIP represents approximately $9.5M in costs. Page |7 The chart below shows the categories represented by the FY17 projects contained in the FY17 – FY21 CIP. Page |8 Multi-Year Capital Planning Type: Best Practice Approved by GFOA's Executive Board: February 2006 Background: Buildings, infrastructure, technology, and major equipment are the physical foundation for providing services to constituents. The procurement, construction, and maintenance of capital assets are a critical activity of state and local governments, school districts, and other government agencies, and therefore require careful planning. Capital planning is critical to water, sewer, transportation, sanitation, and other essential public services. It is also an important component of a community’s economic development program and strategic plan. Capital facilities and infrastructure are important legacies that serve current and future generations. It is extremely difficult for governments to address the current and long- term needs of their constituents without a sound multi-year capital plan that clearly identifies capital and major equipment needs, maintenance requirements, funding options, and operating budget impacts. A properly prepared capital plan is essential to the future financial health of an organization and continued delivery of services to citizens and businesses. Recommendation: GFOA recommends that state and local governments prepare and adopt comprehensive multi- year capital plans to ensure effective management of capital assets. A prudent multi-year capital plan identifies and prioritizes expected needs based on a community’s strategic plan, establishes project scope and cost, details estimated amounts of funding from various sources, and projects future operating and maintenance costs. A capital plan should cover a period of at least three years, preferably five or more. Identify needs. The first step in capital planning is identifying needs. Using information, including development projections, strategic plans, comprehensive plans, facility master plans, regional plans, and citizen input processes, governments should identify present and future service needs that require capital infrastructure or equipment. In this process, attention should be given to: • Capital assets that require repair, maintenance, or replacement that, if not addressed, will result in higher costs in future years • Infrastructure improvements needed to support new development or redevelopment • Projects with revenue-generating potential • Improvements that support economic development • Changes in policy or community needs Determine costs. The full extent of project costs should be determined when developing the multi-year capital plan. Cost issues to consider include the following: • The scope and timing of a planned project should be well defined in the early stages of the planning process  • Agencies should identify and use the most appropriate approaches, including outside assistance, when estimating project costs and potential revenues • For projects programmed beyond the first year of the plan, governments should adjust cost projections based on anticipated inflation • The ongoing operating costs associated with each project should be quantified, and the sources of funding for those costs should be identified • A clear estimate of all major components required to implement a project should be outlined, including land acquisition needs, design, construction, contingency and post- construction costs • Recognize the non-financial impacts of the project (e.g., environmental) on the community Prioritize capital requests. Governments are continually faced with extensive capital needs and limited financial resources. Therefore, prioritizing capital project requests is a critical step in the capital plan preparation process. When evaluating project submittals, governments should: • Reflect the relationship of project submittals to financial and governing policies, plans, and studies • Allow submitting agencies to provide an initial prioritization • Incorporate input and participation from major stakeholders and the general public • Adhere to legal requirements and/or mandates • Anticipate the operating budget impacts resulting from capital projects • Apply analytical techniques, as appropriate, for evaluating potential projects (e.g., net present value, payback period, cost-benefit analysis, life cycle costing, cash flow modeling) • Re-evaluate capital projects approved in previous multi-year capital plans • Use a rating system to facilitate decision-making Develop financing strategies. GFOA recognizes the importance of establishing a viable financing approach for supporting the multi-year capital plan. Financing strategies should align with expected project requirements while sustaining the financial health of the organization. Governments undertaking a capital financing plan should: • Anticipate expected revenue and expenditure trends, including their relationship to multi- year financial plans • Prepare cash flow projections of the amount and timing of the capital financing • Continue compliance with all established financial policies • Recognize appropriate legal constraints • Consider and estimate funding amounts from all appropriate funding alternatives • Ensure reliability and stability of identified funding sources • Evaluate the affordability of the financing strategy, including the impact on debt ratios, taxpayers, ratepayers, and others Committee: Economic Development and Capital Planning References: • Capital Improvement Programming: A Guide for Smaller Governments, GFOA, 1996. • Recommended Budget Practices: A Framework for Improved State and Local Government Budgeting, National Advisory Council on State and Local Budgeting, GFOA, 1998. • GFOA Best Practice, Establishing Appropriate Capitalization Thresholds for Tangible Capital Assets, 2001. • GFOA Best Practice, Establishing the Useful Life of Capital Assets, 2002. • Capital Budgeting and Finance: A Guide for Local Governments, International City/County Management Association, 2004. • Managing the Capital Planning Cycle: Best Practice Examples of Effective Capital Program Management, Government Finance Review, June 2004. • GFOA Best Practice, Establishment of Strategic Plans, 2005. Incorporating the Capital Budget into the Budget Document Best Practice Approved by GFOA's Executive Board: January 2016 Once a government has adopted a multi-year capital plan, the next step is to incorporate the capital budget into the budget document. Capital projects are different from other programs adopted in the operating budget, often representing very large financial obligations that may span two or more fiscal years. Because of the unique nature of capital projects, the presentation may differ from other items within the budget document. Recommendation: GFOA recommends that governments prepare and adopt a formal capital budget as part of their annual or biennial budget process. The capital budget should be directly linked to the multi-year capital improvement plan. Presentation of the capital budget should include a summary of the multi-year capital plan as well as detailed information related to the budget year (or both budget years for biennial budgets). Each government will need to establish the appropriate balance between summary-level and detailed information. To avoid placing excessive detail in the capital section of the budget document, consideration may be given to placing the additional information on the web or in a separate capital document. Governments should use the following guidelines when incorporating information on the capital budget within the budget document. 1. Definition. A definition of capital expenditures should be included in the budget document. The definition of a capital project can be designed in a way that is broad enough to encompass a variety of different situations. Governments frequently refer to asset life and dollar threshold in the capital expenditures definition. 2. Placement. The capital budget should be in a distinct section of the budget document. It is very difficult to follow the various elements of the capital program if information is scattered throughout the document. Having the capital budget and multi-year capital plan within the same or adjacent sections of the document makes it easier to follow that relationship. 3. Sources and Uses. The capital presentation should focus on both sources and uses. The government should indicate the total dollar amount of capital expenditures for the budget year (or both budget years for biennial budgets), for each year in the multi-year plan and the total plan. The capital plan sources and uses summary should include all projects (regardless of fund) that fit within the government’s definition of capital expenditures. Funding sources should be identified for all aspects of the project, clearly noting those sources with financing requirements (i.e. debt service). Estimate costs of each project, based on recent and accurate sources of information, recognizing project costs may inflate if multi-year. This information can be presented by department, fund, category, priority, strategic goal, or geographic location. 4. Process. The following items help to communicate major steps within the capital budget decision making process. a. Calendar. A calendar showing key dates in the capital budget process should be presented along with text describing the process. The calendar could be juxtaposed with the operating budget calendar. Responsible parties (departments) and statutory deadlines are useful in describing the process. b. Prioritization. Information on how capital projects are evaluated and prioritized is critical. The criteria for evaluating capital projects could include such items as public safety, risk, location, return on investment, net payback, public need, connection to strategic planning documents or other projects, and available funding. Changes in priority should also be addressed and explained (i.e., emergency needs, increases/decreases in available funding). c. Reporting. A description of the process should identify when regular reports are or will be issued to review status and provide expected completion dates of new and ongoing capital projects. 5. Identification. Capital projects should be noted as recurring or non-recurring in nature. Recurring capital projects are those that (1) are included in almost every budget, (2) have a regular replacement cycle, and (3) may have no significant impact on the operating budget. Governments should provide a greater level of detail and information for nonroutine capital projects than for routine projects. For example, a major new wastewater treatment plant or civic center will have greater service and cost implications than a recurring project to resurface roads or maintain water lines. 6. Capital Project Detail. The budget document should include the following capital project detail for each major project: a. Description and Cost. Each project should be described concisely (i.e., indicate the project’s purpose and funding sources). Indicate the total project costs and the amount appropriated for the project during either the budget year or in biennial budgets. b. Timetable. Showing a timetable for different phases of a project is very informative, and including individual schedules for major capital projects may be useful. c. Graphics. Legible graphic illustrations (pictures or maps) can add value to a capital project presentation. d. Links to Other Plans. Governments may consider indicating on the individual capital project detail what specific goals that the capital project is fulfilling. e. Operating Impacts. The operating impact of the project should be both quantified and described. Committee: Governmental Budgeting and Fiscal Policy References: GFOA best practice, “The Impact of Capital Projects on the Operating Budget,” 2015. GFOA best practice, “Asset Maintenance and Replacement,” 2010. GFOA best practice, “Capital Planning Policies,” 2013. GFOA best practice, “Capital Project Monitoring and Reporting,” 2007. GFOA best practice, “Multi-Year Capital Planning,” 2006.  City of DeKalb, Illinois Capital Improvement Plan FY 17 thru FY 21 PROJECTS BY FUNDING SOURCE Source Project# FY 17 FY 18 FY 19 FY 20 FY 21 Total 10 - Motor Fuels Tax Fund Electricity Purchase PW - ENG-02 350,000 350,000 350,000 350,000 350,000 1,750,000 Road Salt Purchase PW - ENG-03 100,000 100,000 100,000 100,000 100,000 500,000 Bridge Inspections PW - ENG-10 15,000 15,000 30,000 Pavement Condition Index Survey PW - ENG-11 65,000 50,000 115,000 Kishwaukee River Bike Path CE PW - ENG-12 50,000 50,000 Kishwaukee River Bike Path Construction PW - ENG-13 345,000 345,000 Dresser Rd Sidewalk (contingent on ITEP) Con. Eng. PW - ENG-14 12,500 12,500 Dresser Rd Sidewalk (contingent on ITEP) ROW PW - ENG-15 32,500 32,500 Dresser Rd Sidewalk (contingent ITEP) Construction PW - ENG-16 80,000 80,000 Peace Rd Widening Engineering Design PW - ENG-17 150,000 150,000 Peace Rd Widening Construction/CE PW - ENG-18 280,000 280,000 Coordinated Traffic Signal Upgrade Const. Eng. PW - ENG-19 25,000 25,000 Coordinated Traffic Signal Upgrade Construction PW - ENG-20 260,000 260,000 Annie Glidden & Fairview WR Engineering PW - ENG-36 100,000 100,000 Annie Glidden & Fairview WR ROW PW - ENG-37 175,000 175,000 Annie Glidden & Fairview WR Construction PW - ENG-38 300,000 300,000 Street Maintenance 2017 PW - ENG-43 90,000 90,000 Street Maintenance 2017 Engineering PW - ENG-44 10,000 10,000 Street Maintenance 2017 Patching PW - ENG-47 100,000 100,000 Street Maintenance 2018 PW - ENG-48 90,000 90,000 Street Maintenance 2018 Engineering PW - ENG-49 10,000 10,000 Street Maintenance 2019 PW - ENG-52 90,000 90,000 Street Maintenance 2019 Engineering PW - ENG-53 10,000 10,000 Street Maintenance 2020 PW - ENG-56 90,000 90,000 Street Maintenance 2020 Engineering PW - ENG-57 10,000 10,000 Street Maintenance 2021 PW - ENG-60 90,000 90,000 Street Maintenance 2021 Engineering PW - ENG-61 10,000 10,000 10 - Motor Fuels Tax Fund Total 1,730,000 780,000 1,130,000 565,000 600,000 4,805,000 13 - TIF #1 Fund Egyptian Design and Fund Raising (Consulting) CD - 02 100,000 100,000 Gateway and Wayfinding Signage (Design) CD - 03 30,000 30,000 Egyptian Theater (Building Improvements) CD - 04 100,000 100,000 100,000 100,000 75,000 475,000 Structural Commercial Program CD - 05 150,000 142,850 142,850 142,850 142,850 721,400 Architectural Improvement Program CD - 06 37,500 75,000 75,000 75,000 75,000 337,500 Preservation RFP 2 CD - 07 35,000 35,000 Wi-Fi, Music, Signage & Miscellaneous CD - 08 30,000 20,000 20,000 20,000 20,000 110,000 Steam Building Analysis (Consulting) CMO - 03 400,000 400,000 Central Business District Security Camera Project PD - 17 18,000 18,000 36,000 Rehab Road Entrance, Parking Lot & T-Hangar (TIP) PW - AIR-01 56,000 56,000 Strategy/Marketing Plan PW - AIR-02 15,000 15,000 New HVAC System for Airport Offices PW - AIR-03 16,000 16,000 Remodeling of FBO Lobby, Restrooms, and Doors PW - AIR-04 40,000 40,000 Capital Improvement Plan - City of DeKalb, Illinois Page 1 Tuesday, November 01, 2016  Source Project# FY 17 FY 18 FY 19 FY 20 FY 21 Total Ramp & Taxiway Pavement & Tuck Point Repairs PW - AIR-04A 12,500 12,500 Airport Crack Filling PW - AIR-05 15,000 15,000 Remodeling of Classrooms and West End Hangar PW - AIR-06 45,000 45,000 Fifth Street Streetscape (Engineering Oversight) PW - ENG-04 50,000 50,000 Fifth Street Streetscape (Construction) PW - ENG-05 500,000 500,000 Lincoln Highway Complete Streets (Engineering) PW - ENG-06 100,000 100,000 Street Maintenance 2017 PW - ENG-43 450,000 450,000 Street Maintenance 2017 Engineering PW - ENG-44 50,000 50,000 13 - TIF #1 Fund Total 2,190,000 370,850 337,850 382,850 312,850 3,594,400 14 - TIF #2 Fund City Hall Repurposing CMO - 04 35,000 35,000 Barb City Manor PW - ENG-07 100,000 100,000 100,000 100,000 400,000 City Hall - Future Needs PW - ENG-08 150,000 3,000,000 3,000,000 6,150,000 Street Maintenance 2017 PW - ENG-43 450,000 450,000 Street Maintenance 2017 Engineering PW - ENG-44 50,000 50,000 14 - TIF #2 Fund Total 785,000 3,100,000 3,100,000 100,000 7,085,000 19 - Community Development Block 6th Street Water Main Design Engineering PW - ENG-40 15,000 15,000 6th Street Water Main Construction Engineering PW - ENG-41 5,000 5,000 6th Street Water Main Construction PW - ENG-42 139,986 139,986 19 - Community Development Block 159,986 159,986 Grant Fund Total 50 - Capital Improvement Fund Fire Station Repairs FD - 01 30,000 30,000 30,000 30,000 30,000 150,000 Key Fob Door Locking for all Fire Stations FD - 02 19,800 19,800 Classroom Furniture (12 Tables and 24 Chairs) FD - 03 10,100 10,100 Electronic Gate/Fence for Station 1 FD - 04 16,100 16,100 Traffic Signal Upgrade Const (Stage2, STU Grant?) PW - ENG-21 600,000 600,000 1,200,000 Traffic Signal Upgrade Construction (Stage2) PW - ENG-22 400,000 400,000 800,000 N. 1st Street Bridge replacement Engineering PW - ENG-23 150,000 50,000 200,000 N. 1st Street Bridge Replacement Construction PW - ENG-24 328,777 328,777 N. 1st Street Pavement Maintenance PW - ENG-25 500,000 500,000 Harvestore Drive Box Culvert Repair PW - ENG-26 100,000 100,000 Bethany Road Culvert Repair PW - ENG-27 160,000 160,000 Storm Water Infrastructure Study PW - ENG-39 50,000 50,000 25,000 25,000 150,000 Street Maintenance 2017 PW - ENG-43 165,000 165,000 Street Maintenance 2017 Engineering PW - ENG-44 15,000 15,000 Street Maintenance 2017 Alley PW - ENG-45 0 0 Street Maintenance 2017 Sidewalk PW - ENG-46 20,000 20,000 Street Maintenance 2018 PW - ENG-48 1,800,000 1,800,000 Street Maintenance 2018 Engineering PW - ENG-49 190,000 190,000 Street Maintenance 2018 Alley PW - ENG-50 60,000 60,000 Street Maintenance 2018 Sidewalk PW - ENG-51 50,000 50,000 Street Maintenance 2019 PW - ENG-52 1,800,000 1,800,000 Street Maintenance 2019 Engineering PW - ENG-53 190,000 190,000 Street Maintenance 2019 Alley PW - ENG-54 60,000 60,000 Street Maintenance 2019 Sidewalk PW - ENG-55 50,000 50,000 Street Maintenance 2020 PW - ENG-56 1,800,000 1,800,000 Capital Improvement Plan - City of DeKalb, Illinois Page 2 Tuesday, November 01, 2016  Source Project# FY 17 FY 18 FY 19 FY 20 FY 21 Total Street Maintenance 2020 Engineering PW - ENG-57 190,000 190,000 Street Maintenance 2020 Alley PW - ENG-58 60,000 60,000 Street Maintenance 2020 Sidewalk PW - ENG-59 50,000 50,000 Street Maintenance 2021 Engineering PW - ENG-61 190,000 190,000 Street Maintenance 2021 Street Alley Sidewalk PW - ENG-62 900,000 900,000 Replace Water Main South Street PW - W-01 140,000 140,000 50 - Capital Improvement Fund Total 370,000 2,476,000 3,230,000 3,983,777 1,305,000 11,364,777 52 - Capital Fleet Fund Replace Department Pool Car CD2 CD - 01 35,000 35,000 Lease Payments F-01 16,667 16,667 16,667 16,667 16,667 83,335 Ford AEV Ambulance FD - 06 150,000 150,000 Ford Ambulance FD - 07 150,000 150,000 AEV Fire Ambulance FD - 08 150,000 150,000 International Navistar FD - 11 150,000 150,000 Chevy Suburban FD - 12 40,000 40,000 Chevy Suburban FD - 13 40,000 40,000 Dodge Durango FD - 14 40,000 40,000 Dodge Durango FD - 15 40,000 40,000 Chevy Tahoe FD - 16 45,000 45,000 Ford Explorer FD - 17 40,000 40,000 Ford Explorer FD - 18 40,000 40,000 Pierce Saber - Engine 4 FD - 20 400,000 400,000 Alexis Fire Engine - Engine 2 FD - 21 400,000 400,000 Dodge Ram CC Squad 1 FD - 25 40,000 40,000 Chevy One-Ton Truck Squad 4 FD - 27 40,000 40,000 Hesse Bevrg Rck Semi Trailer - Rescue 6 Trailer FD - 28 50,000 50,000 Fleet Replacement Police Vehicle PD - 01 33,448 33,448 Fleet Replacement Police Vehicle PD - 02 33,448 33,448 Fleet Replacement Police Vehicle PD - 03 47,637 47,637 Fleet Replacement Police Vehicle PD - 04 47,637 47,637 Fleet Replacement Police Vehicle PD - 05 47,637 47,637 Fleet Replacement Police Vehicle PD - 06 49,906 49,906 Fleet Replacement Police Vehicle PD - 07 49,906 49,906 Fleet Replacement Police Vehicle PD - 08 53,597 53,597 Fleet Replacement Police Vehicle PD - 09 53,597 53,597 Fleet Replacement Police Vehicle PD - 10 53,597 53,597 Fleet Replacement Police Vehicle PD - 11 57,565 57,565 Fleet Replacement Police Vehicle PD - 12 57,565 57,565 P-13 Pickup Truck with Snow Plow PW - STR-01 35,000 35,000 P-33 Toro Z-Master Riding Mower PW - STR-02 10,500 10,500 P-23 Dump Truck with Slow Plow & Salt Spreader PW - STR-03 140,000 140,000 P-22 Dump Truck with Snow Plow & Salt Spreader PW - STR-04 140,000 140,000 P-6 Pickup Truck with Snow Plow PW - STR-05 36,000 36,000 P-37 Aerial Traffic Signal Truck PW - STR-06 60,000 60,000 P-21 1-Ton Dump with Plow/Salt Spreader PW - STR-07 60,000 60,000 Line Lazer Road Marking Machine PW - STR-08 10,000 10,000 P-31 Bobcat with Hydraulic Concrete Breaker PW - STR-09 30,000 30,000 P-24 Tandem Axel Dump with Plow/Salt Spreader PW - STR-10 155,000 155,000 P-3 Chevy Tahoe PW - STR-11 30,000 30,000 P-4 Chevy S-10 Blazer PW - STR-12 30,000 30,000 P-7 Pickup Truck with Snow Plow PW - STR-13 37,000 37,000 P-12 Pickup Truck with Snow Plow PW - STR-14 37,000 37,000 P-24 Tandem Axel Dump with Plow/Salt Spreader PW - STR-15 145,000 145,000 Capital Improvement Plan - City of DeKalb, Illinois Page 3 Tuesday, November 01, 2016  Source Project# FY 17 FY 18 FY 19 FY 20 FY 21 Total P-9 Utility Truck with Liquid Deicer Tank PW - STR-16 35,000 35,000 P-15 Dump Truck with Plow/Salt Spreader PW - STR-17 145,000 145,000 P-34 Mechanic Service Truck PW - STR-18 40,000 40,000 P-36 60' Aerial Forestry Truck PW - STR-19 150,000 150,000 P-44 Mower Tractor PW - STR-20 40,000 40,000 P-11 Pickup Truck with Snow Plow PW - STR-21 35,000 35,000 P-28 Dump Truck with Snow Plow/Spreader PW - STR-22 143,000 143,000 P-29 Dump Truck with Snow Plow/Spreader PW - STR-23 143,000 143,000 52 - Capital Fleet Fund Total 263,563 1,676,078 395,479 787,458 1,082,797 4,205,375 53 - Equipment Fund Adjudication Software Purchase CMO - 01 50,000 50,000 Furniture City Hall CMO - 02 20,000 20,000 20,000 20,000 20,000 100,000 Panasonic Tough Pads FD - 29 36,000 36,000 Video Conferencing Equipment FD - 30 22,215 22,215 Station Alerting System FD - 31 30,000 30,000 Firehouse Cloud Service FD - 32 10,618 10,618 Classroom Smart Board for Station 1 FD - 33 15,000 15,000 Outfit 1990 Aerial Truck as Reserve Unit FD - 34 20,000 20,000 Stretchers - 6 FD - 37 70,000 70,000 Hazmat Trailer Unit FD - 39 10,000 10,000 LifePak 12 Monitor (2) FD - 41 44,181 44,181 Radio Portable HT1000 (31) Vehicle Charger FD - 42 25,000 30,800 55,800 Radio Portable HT1250 (35) and Vehicle Charger FD - 43 63,000 63,000 Radio Mobile Radius M1225 (2) FD - 44 2,400 2,400 Radio Mobile CDM 1250 (35) FD - 45 47,000 47,000 Radio Mobile Kenwood (1) FD - 46 1,200 1,200 Radio Pagers Monitor 5 (73) FD - 47 36,500 36,500 SCBA Haz Mat 60 Minute Bottles - Draeger (7) FD - 51 7,700 7,700 SCBA Packs (36) FD - 52 180,000 180,000 SCBA Paks (4) FD - 53 20,000 20,000 Lucas 2 for Medic 3 FD - 60 15,000 15,000 Document Management Software Purchase IT - 01 39,325 39,325 New Computer Cycles (20x) IT - 02 16,000 16,000 16,000 16,000 16,000 80,000 City Network Switches IT - 03 15,000 10,000 10,000 35,000 Color Scanner/Plotter IT - 04 10,500 10,500 Exchange Server 2016 or Office 365 IT - 05 25,000 25,000 50,000 Copier Replacements IT - 06 42,000 42,000 Downtown Wireless Hardware IT - 07 15,000 15,000 911 Console Dispatch Work Station Project PD - 13 28,000 35,000 63,000 Police Body Worn Camera Project PD - 14 215,279 215,279 Taser Replacement Project PD - 15 13,679 13,679 Speed Trailer Replacement Project PD - 16 15,505 15,505 Mobile Data Browser Replacement Project (2) PD - 18 8,000 8,000 Mobile Data Browser Replacement Project (2) PD - 19 24,000 24,000 Mobile Data Browser Replacement Project (2) PD - 20 24,000 24,000 Mobile Data Browser Replacement Project (2) PD - 21 20,000 20,000 Mobile Data Browser Replacement Project (2) PD - 22 20,000 20,000 Storm Sewer Inspection Camera PW - STR-24 10,000 10,000 P-193 Dinkmar Leaf Machine PW - STR-25 28,000 28,000 P-190 Dinkmar Leaf Machine PW - STR-26 28,000 28,000 P-190 Dinkmar Leaf Machine PW - STR-27 30,000 30,000 Capital Improvement Plan - City of DeKalb, Illinois Page 4 Tuesday, November 01, 2016  Source Project# FY 17 FY 18 FY 19 FY 20 FY 21 Total 53 - Equipment Fund Total 173,681 736,821 467,700 118,700 111,000 1,607,902 60 - Water Fund Color Scanner/Plotter IT - 04 7,500 7,500 Well No.10 Pull for Maintenance (2006) PW - W-02 60,000 60,000 Well No.11 Pull for Maintenance (2006) PW - W-03 60,000 60,000 Well No.13 Pull for Maintenance (2005) PW - W-04 60,000 60,000 Well No.14 Pull for Maintenance (2005) PW - W-05 60,000 60,000 Well No.12 Pull for Maintenance (2005) PW - W-06 60,000 60,000 Well No.16 Pull for Maintenance (2006) PW - W-07 60,000 60,000 Replace Softening Resin 7th Street PW - W-09 125,000 125,000 Replace Softening Resin - Lincoln Hwy WTP PW - W-10 150,000 150,000 Replace Softening Resin - County Farm Rd. WTP PW - W-11 144,900 144,900 Replace Softening Resin - Corporate Dr. WTP PW - W-12 125,000 125,000 Iron Filter Sand Media Replacement Lincoln Hwy PW - W-13 60,000 60,000 Replace Roof - Lincoln Hwy WTP PW - W-14 20,000 20,000 Replace Roof - 7th Street WTP PW - W-15 20,000 20,000 60 - Water Fund Total 87,500 265,000 305,000 204,900 150,000 1,012,400 61 - Water Construction Fund Design Work - Well No. 18 (new well) PW - W-17 67,500 67,500 61 - Water Construction Fund Total 67,500 67,500 62 - Water Capital Fund North Water Tower Painting PW - W-08 530,500 530,500 Replace Roofs - Well Nos. 16 & 17 PW - W-16 5,000 5,000 Replace Water Main - South 6th Street PW - W-18 150,000 150,000 Water Main Replacement Undesignated PW - W-19 978,100 1,070,900 1,143,599 3,192,599 Replace Water Main - Lewis to Vienna PW - W-20 262,500 262,500 Replace Water Main - Joanne PW - W-21 1,350,150 1,350,150 Replace Water Main - South 6th Street PW - W-22 160,000 160,000 Replace Water Main - S. 11th Street PW - W-23 169,750 169,750 Replace Water Main - Maplewood PW - W-24 99,750 99,750 Replace Water Main - Sunset PW - W-25 367,500 367,500 Water Meters PW - W-26 150,000 150,000 150,000 150,000 150,000 750,000 Replace W-2 Ford 1-Ton Pickup (2006) PW - W-27 47,700 47,700 Replace W-3 International Utility Truck (2003) PW - W-28 123,600 123,600 Replace W-5 Chevy Blazer (2003) PW - W-29 31,800 31,800 Replace W-9 Ford Cargo Van (2003) PW - W-30 40,000 40,000 Replace W-12 GMC 4x4 1-Ton (1998) PW - W-31 65,000 65,000 Replace W-13 Dodge 4x4 Pickup PW - W-32 38,200 38,200 Replace W-14 Chevy Tahoe (1999) PW - W-33 30,000 30,000 Replace W-21 John Deere Loader (2000) PW - W-34 180,000 180,000 Replace W-28 Chevy Barricade (1999) PW - W-35 63,700 63,700 Replace W-29 International Dump Truck (2005) PW - W-36 150,000 150,000 Replace W-15 Ford F350 Pickup Truck (2006) PW - W-37 45,000 45,000 62 - Water Capital Fund Total 2,115,000 1,688,750 1,223,600 1,306,800 1,518,599 7,852,749 65 - Airport Fund Capital Improvement Plan - City of DeKalb, Illinois Page 5 Tuesday, November 01, 2016  Source Project# FY 17 FY 18 FY 19 FY 20 FY 21 Total Tire for Case 725 Mowing Tractor PW - AIR-07 13,000 13,000 Navigational Aids Installation PW - AIR-08 36,550 36,550 Improvements to Building PW - AIR-09 30,000 30,000 Update Airport Minimum Standards PW - AIR-10 24,000 24,000 Airport Rates and Fees Study PW - AIR-11 20,000 20,000 Replace Perimeter Fencing (TIP) PW - AIR-12 40,950 40,950 Overlay Runway 2-20 (TIP) PW - AIR-13 250,000 250,000 Acquire 47 Acres From Winter Property PW - AIR-14 105,750 105,750 Utility Relocation Plan PW - AIR-15 12,000 12,000 Replace VASI and PAPI Units (TIP) PW - AIR-16 36,550 36,550 Overlay of T-Hangar Pavement (TIP) PW - AIR-17 23,800 23,800 65 - Airport Fund Total 140,100 270,000 146,700 35,800 592,600 9 - Transportation Fund Color Scanner/Plotter IT - 04 3,000 3,000 Replace DSATS Vehicle PW - ENG-01 35,000 35,000 Automatic Bus Passenger Counter PW - ENG-09 100,000 100,000 Replace Transit Mini-Vans PW - ENG-28 123,750 123,750 Replace Super-Medium Duty Buses PW - ENG-29 280,000 280,000 Replace Light Duty Buses with Medium Duty PW - ENG-30 806,530 80,653 887,183 New Bus Fleet for Elburn Train Station PW - ENG-31 2,000,000 2,000,000 New Transit Facility PW - ENG-32 920,000 920,000 Bus Time Arrival Equipment at Major Bus Stops PW - ENG-33 500,000 500,000 New Trip Scheduling Software w/ Real-time Tracking PW - ENG-34 153,510 153,510 Replace VAC Tire Machine PW - ENG-35 12,000 12,000 Bus Shelter - Construction PW - ENG-63 514,368 514,368 9 - Transportation Fund Total 1,648,158 1,380,653 500,000 2,000,000 5,528,811 FHA - Federal Highway Admin. - Ear Annie Glidden & Fairview WR Construction PW - ENG-38 779,000 779,000 FHA - Federal Highway Admin. - 779,000 779,000 Earmarks Total ITEP - IL Trans. Enhancement Progr Kishwaukee River Bike Path CE PW - ENG-12 80,500 80,500 Kishwaukee River Bike Path Construction PW - ENG-13 732,000 732,000 Dresser Rd Sidewalk (contingent ITEP) Construction PW - ENG-16 500,000 500,000 ITEP - IL Trans. Enhancement Program 1,312,500 1,312,500 Total STU - Federal Surface Transportation Peace Rd Widening Construction/CE PW - ENG-18 1,120,000 1,120,000 Coordinated Traffic Signal Upgrade Construction PW - ENG-20 960,000 960,000 STU - Federal Surface Transportation – 960,000 1,120,000 2,080,000 Urban Total TIGER - Trans Inv Gen Econ Recove New Transit Facility PW - ENG-32 18,280,000 18,280,000 Capital Improvement Plan - City of DeKalb, Illinois Page 6 Tuesday, November 01, 2016  Source Project# FY 17 FY 18 FY 19 FY 20 FY 21 Total TIGER - Trans Inv Gen Econ Recovery 18,280,000 18,280,000 Total TIP - Transportation Improvement Pr Rehab Road Entrance, Parking Lot & T-Hangar (TIP) PW - AIR-01 813,400 813,400 Replace Perimeter Fencing (TIP) PW - AIR-12 778,050 778,050 Overlay Runway 2-20 (TIP) PW - AIR-13 4,499,500 4,499,500 Replace VASI and PAPI Units (TIP) PW - AIR-16 657,900 657,900 Overlay of T-Hangar Pavement (TIP) PW - AIR-17 452,200 452,200 TIP - Transportation Improvement Prg. 813,400 657,900 4,499,500 778,050 452,200 7,201,050 Grant Total GRAND TOTAL 12,608,788 31,552,152 17,358,129 10,374,235 5,635,746 77,529,050 Capital Improvement Plan - City of DeKalb, Illinois Page 7 Tuesday, November 01, 2016  City of DeKalb, Illinois Capital Improvement Plan FY 17 thru FY 21 PROJECTS BY CATEGORY Category Project# FY 17 FY 18 FY 19 FY 20 FY 21 Total Airport Rehab Road Entrance, Parking Lot & T-Hangar (TIP) PW - AIR-01 56,000 56,000 Strategy/Marketing Plan PW - AIR-02 15,000 15,000 New HVAC System for Airport Offices PW - AIR-03 16,000 16,000 Remodeling of FBO Lobby, Restrooms, and Doors PW - AIR-04 40,000 40,000 Ramp & Taxiway Pavement & Tuck Point Repairs PW - AIR-04A 12,500 12,500 Airport Crack Filling PW - AIR-05 15,000 15,000 Remodeling of Classrooms and West End Hangar PW - AIR-06 45,000 45,000 Tire for Case 725 Mowing Tractor PW - AIR-07 13,000 13,000 Navigational Aids Installation PW - AIR-08 36,550 36,550 Improvements to Building PW - AIR-09 30,000 30,000 Update Airport Minimum Standards PW - AIR-10 24,000 24,000 Airport Rates and Fees Study PW - AIR-11 20,000 20,000 Replace Perimeter Fencing (TIP) PW - AIR-12 40,950 40,950 Overlay Runway 2-20 (TIP) PW - AIR-13 250,000 250,000 Acquire 47 Acres From Winter Property PW - AIR-14 105,750 105,750 Utility Relocation Plan PW - AIR-15 12,000 12,000 Replace VASI and PAPI Units (TIP) PW - AIR-16 36,550 36,550 Overlay of T-Hangar Pavement (TIP) PW - AIR-17 23,800 23,800 Airport Total 139,500 155,100 270,000 191,700 35,800 792,100 Building/Property Egyptian Design and Fund Raising (Consulting) CD - 02 100,000 100,000 Egyptian Theater (Building Improvements) CD - 04 100,000 100,000 100,000 100,000 75,000 475,000 Structural Commercial Program CD - 05 150,000 142,850 142,850 142,850 142,850 721,400 Architectural Improvement Program CD - 06 37,500 75,000 75,000 75,000 75,000 337,500 Preservation RFP 2 CD - 07 35,000 35,000 Steam Building Analysis (Consulting) CMO - 03 400,000 400,000 City Hall Repurposing CMO - 04 35,000 35,000 Fire Station Repairs FD - 01 30,000 30,000 30,000 30,000 30,000 150,000 Barb City Manor PW - ENG-07 100,000 100,000 100,000 100,000 400,000 City Hall - Future Needs PW - ENG-08 150,000 3,000,000 3,000,000 6,150,000 Building/Property Total 1,137,500 3,447,850 3,447,850 447,850 322,850 8,803,900 Equipment Wi-Fi, Music, Signage & Miscellaneous CD - 08 30,000 20,000 20,000 20,000 20,000 110,000 Adjudication Software Purchase CMO - 01 50,000 50,000 Furniture City Hall CMO - 02 20,000 20,000 20,000 20,000 20,000 100,000 Key Fob Door Locking for all Fire Stations FD - 02 19,800 19,800 Classroom Furniture (12 Tables and 24 Chairs) FD - 03 10,100 10,100 Electronic Gate/Fence for Station 1 FD - 04 16,100 16,100 Panasonic Tough Pads FD - 29 36,000 36,000 Video Conferencing Equipment FD - 30 22,215 22,215 Station Alerting System FD - 31 30,000 30,000 Firehouse Cloud Service FD - 32 10,618 10,618 Capital Improvement Plan - City of DeKalb, Illinois Page 1 Tuesday, November 01, 2016 Category Project# FY 17 FY 18 FY 19 FY 20 FY 21 Total Classroom Smart Board for Station 1 FD - 33 15,000 15,000 Outfit 1990 Aerial Truck as Reserve Unit FD - 34 20,000 20,000 Stretchers - 6 FD - 37 70,000 70,000 Hazmat Trailer Unit FD - 39 10,000 10,000 LifePak 12 Monitor (2) FD - 41 44,181 44,181 Radio Portable HT1000 (31) Vehicle Charger FD - 42 25,000 30,800 55,800 Radio Portable HT1250 (35) and Vehicle Charger FD - 43 63,000 63,000 Radio Mobile Radius M1225 (2) FD - 44 2,400 2,400 Radio Mobile CDM 1250 (35) FD - 45 47,000 47,000 Radio Mobile Kenwood (1) FD - 46 1,200 1,200 Radio Pagers Monitor 5 (73) FD - 47 36,500 36,500 SCBA Haz Mat 60 Minute Bottles - Draeger (7) FD - 51 7,700 7,700 SCBA Packs (36) FD - 52 180,000 180,000 SCBA Paks (4) FD - 53 20,000 20,000 Lucas 2 for Medic 3 FD - 60 15,000 15,000 Document Management Software Purchase IT - 01 39,325 39,325 New Computer Cycles (20x) IT - 02 16,000 16,000 16,000 16,000 16,000 80,000 City Network Switches IT - 03 15,000 10,000 10,000 35,000 Color Scanner/Plotter IT - 04 21,000 21,000 Exchange Server 2016 or Office 365 IT - 05 25,000 25,000 50,000 Copier Replacements IT - 06 42,000 42,000 Downtown Wireless Hardware IT - 07 15,000 15,000 911 Console Dispatch Work Station Project PD - 13 28,000 35,000 63,000 Police Body Worn Camera Project PD - 14 215,279 215,279 Taser Replacement Project PD - 15 13,679 13,679 Speed Trailer Replacement Project PD - 16 15,505 15,505 Central Business District Security Camera Project PD - 17 18,000 18,000 36,000 Mobile Data Browser Replacement Project (2) PD - 18 8,000 8,000 Mobile Data Browser Replacement Project (2) PD - 19 24,000 24,000 Mobile Data Browser Replacement Project (2) PD - 20 24,000 24,000 Mobile Data Browser Replacement Project (2) PD - 21 20,000 20,000 Mobile Data Browser Replacement Project (2) PD - 22 20,000 20,000 P-33 Toro Z-Master Riding Mower PW - STR-02 10,500 10,500 Line Lazer Road Marking Machine PW - STR-08 10,000 10,000 P-31 Bobcat with Hydraulic Concrete Breaker PW - STR-09 30,000 30,000 P-44 Mower Tractor PW - STR-20 40,000 40,000 Storm Sewer Inspection Camera PW - STR-24 10,000 10,000 P-193 Dinkmar Leaf Machine PW - STR-25 28,000 28,000 P-190 Dinkmar Leaf Machine PW - STR-26 28,000 28,000 P-190 Dinkmar Leaf Machine PW - STR-27 30,000 30,000 Equipment Total 232,181 871,321 487,700 178,700 131,000 1,900,902 Fleet Replace Department Pool Car CD2 CD - 01 35,000 35,000 Lease Payments F-01 16,667 16,667 16,667 16,667 16,667 83,335 Ford AEV Ambulance FD - 06 150,000 150,000 Ford Ambulance FD - 07 150,000 150,000 AEV Fire Ambulance FD - 08 150,000 150,000 International Navistar FD - 11 150,000 150,000 Chevy Suburban FD - 12 40,000 40,000 Chevy Suburban FD - 13 40,000 40,000 Dodge Durango FD - 14 40,000 40,000 Dodge Durango FD - 15 40,000 40,000 Chevy Tahoe FD - 16 45,000 45,000 Ford Explorer FD - 17 40,000 40,000 Ford Explorer FD - 18 40,000 40,000 Pierce Saber - Engine 4 FD - 20 400,000 400,000 Alexis Fire Engine - Engine 2 FD - 21 400,000 400,000 Capital Improvement Plan - City of DeKalb, Illinois Page 2 Tuesday, November 01, 2016 Category Project# FY 17 FY 18 FY 19 FY 20 FY 21 Total Dodge Ram CC Squad 1 FD - 25 40,000 40,000 Chevy One-Ton Truck Squad 4 FD - 27 40,000 40,000 Hesse Bevrg Rck Semi Trailer - Rescue 6 Trailer FD - 28 50,000 50,000 Fleet Replacement Police Vehicle PD - 01 33,448 33,448 Fleet Replacement Police Vehicle PD - 03 47,637 47,637 Fleet Replacement Police Vehicle PD - 04 47,637 47,637 Fleet Replacement Police Vehicle PD - 05 47,637 47,637 Fleet Replacement Police Vehicle PD - 06 49,906 49,906 Fleet Replacement Police Vehicle PD - 07 49,906 49,906 Fleet Replacement Police Vehicle PD - 08 53,597 53,597 Fleet Replacement Police Vehicle PD - 09 53,597 53,597 Fleet Replacement Police Vehicle PD - 10 53,597 53,597 Fleet Replacement Police Vehicle PD - 11 57,565 57,565 Fleet Replacement Police Vehicle PD - 12 57,565 57,565 Replace DSATS Vehicle PW - ENG-01 35,000 35,000 Replace Transit Mini-Vans PW - ENG-28 123,750 123,750 Replace Super-Medium Duty Buses PW - ENG-29 280,000 280,000 Replace Light Duty Buses with Medium Duty PW - ENG-30 806,530 80,653 887,183 P-13 Pickup Truck with Snow Plow PW - STR-01 35,000 35,000 P-23 Dump Truck with Slow Plow & Salt Spreader PW - STR-03 140,000 140,000 P-22 Dump Truck with Snow Plow & Salt Spreader PW - STR-04 140,000 140,000 P-6 Pickup Truck with Snow Plow PW - STR-05 36,000 36,000 P-37 Aerial Traffic Signal Truck PW - STR-06 60,000 60,000 P-21 1-Ton Dump with Plow/Salt Spreader PW - STR-07 60,000 60,000 P-24 Tandem Axel Dump with Plow/Salt Spreader PW - STR-10 155,000 155,000 P-3 Chevy Tahoe PW - STR-11 30,000 30,000 P-4 Chevy S-10 Blazer PW - STR-12 30,000 30,000 P-7 Pickup Truck with Snow Plow PW - STR-13 37,000 37,000 P-12 Pickup Truck with Snow Plow PW - STR-14 37,000 37,000 P-24 Tandem Axel Dump with Plow/Salt Spreader PW - STR-15 145,000 145,000 P-9 Utility Truck with Liquid Deicer Tank PW - STR-16 35,000 35,000 P-15 Dump Truck with Plow/Salt Spreader PW - STR-17 145,000 145,000 P-34 Mechanic Service Truck PW - STR-18 40,000 40,000 P-36 60' Aerial Forestry Truck PW - STR-19 150,000 150,000 P-11 Pickup Truck with Snow Plow PW - STR-21 35,000 35,000 P-28 Dump Truck with Snow Plow/Spreader PW - STR-22 143,000 143,000 P-29 Dump Truck with Snow Plow/Spreader PW - STR-23 143,000 143,000 Fleet Total 1,195,395 1,986,231 395,479 747,458 1,082,797 5,407,360 Stormwater Harvestore Drive Box Culvert Repair PW - ENG-26 100,000 100,000 Bethany Road Culvert Repair PW - ENG-27 160,000 160,000 Storm Water Infrastructure Study PW - ENG-39 50,000 50,000 25,000 25,000 150,000 Stormwater Total 150,000 50,000 25,000 185,000 410,000 Transportation Gateway and Wayfinding Signage (Design) CD - 03 30,000 30,000 Electricity Purchase PW - ENG-02 350,000 350,000 350,000 350,000 350,000 1,750,000 Road Salt Purchase PW - ENG-03 100,000 100,000 100,000 100,000 100,000 500,000 Fifth Street Streetscape (Engineering Oversight) PW - ENG-04 50,000 50,000 Fifth Street Streetscape (Construction) PW - ENG-05 500,000 500,000 Lincoln Highway Complete Streets (Engineering) PW - ENG-06 100,000 100,000 Automatic Bus Passenger Counter PW - ENG-09 100,000 100,000 Bridge Inspections PW - ENG-10 15,000 15,000 30,000 Pavement Condition Index Survey PW - ENG-11 65,000 50,000 115,000 Kishwaukee River Bike Path CE PW - ENG-12 50,000 50,000 Kishwaukee River Bike Path Construction PW - ENG-13 345,000 345,000 Capital Improvement Plan - City of DeKalb, Illinois Page 3 Tuesday, November 01, 2016 Category Project# FY 17 FY 18 FY 19 FY 20 FY 21 Total Dresser Rd Sidewalk (contingent on ITEP) Con. Eng. PW - ENG-14 12,500 12,500 Dresser Rd Sidewalk (contingent on ITEP) ROW PW - ENG-15 32,500 32,500 Dresser Rd Sidewalk (contingent ITEP) Construction PW - ENG-16 80,000 80,000 Peace Rd Widening Engineering Design PW - ENG-17 150,000 150,000 Peace Rd Widening Construction/CE PW - ENG-18 280,000 280,000 Coordinated Traffic Signal Upgrade Const. Eng. PW - ENG-19 25,000 25,000 Coordinated Traffic Signal Upgrade Construction PW - ENG-20 260,000 260,000 Traffic Signal Upgrade Const (Stage2, STU Grant?) PW - ENG-21 600,000 600,000 1,200,000 Traffic Signal Upgrade Construction (Stage2) PW - ENG-22 400,000 400,000 800,000 N. 1st Street Bridge replacement Engineering PW - ENG-23 150,000 50,000 200,000 N. 1st Street Bridge Replacement Construction PW - ENG-24 328,777 328,777 N. 1st Street Pavement Maintenance PW - ENG-25 500,000 500,000 New Bus Fleet for Elburn Train Station PW - ENG-31 2,000,000 2,000,000 New Transit Facility PW - ENG-32 920,000 920,000 Bus Time Arrival Equipment at Major Bus Stops PW - ENG-33 500,000 500,000 New Trip Scheduling Software w/ Real-time Tracking PW - ENG-34 153,510 153,510 Replace VAC Tire Machine PW - ENG-35 12,000 12,000 Annie Glidden & Fairview WR Engineering PW - ENG-36 100,000 100,000 Annie Glidden & Fairview WR ROW PW - ENG-37 175,000 175,000 Annie Glidden & Fairview WR Construction PW - ENG-38 300,000 300,000 Street Maintenance 2017 PW - ENG-43 1,155,000 1,155,000 Street Maintenance 2017 Engineering PW - ENG-44 125,000 125,000 Street Maintenance 2017 Alley PW - ENG-45 0 0 Street Maintenance 2017 Sidewalk PW - ENG-46 20,000 20,000 Street Maintenance 2017 Patching PW - ENG-47 100,000 100,000 Street Maintenance 2018 PW - ENG-48 1,890,000 1,890,000 Street Maintenance 2018 Engineering PW - ENG-49 125,000 125,000 Street Maintenance 2018 Alley PW - ENG-50 60,000 60,000 Street Maintenance 2018 Sidewalk PW - ENG-51 50,000 50,000 Street Maintenance 2019 PW - ENG-52 1,890,000 1,890,000 Street Maintenance 2019 Engineering PW - ENG-53 200,000 200,000 Street Maintenance 2019 Alley PW - ENG-54 60,000 60,000 Street Maintenance 2019 Sidewalk PW - ENG-55 50,000 50,000 Street Maintenance 2020 PW - ENG-56 1,890,000 1,890,000 Street Maintenance 2020 Engineering PW - ENG-57 200,000 200,000 Street Maintenance 2020 Alley PW - ENG-58 60,000 60,000 Street Maintenance 2020 Sidewalk PW - ENG-59 50,000 50,000 Street Maintenance 2021 PW - ENG-60 90,000 90,000 Street Maintenance 2021 Engineering PW - ENG-61 200,000 200,000 Street Maintenance 2021 Street Alley Sidewalk PW - ENG-62 900,000 900,000 Bus Shelter - Construction PW - ENG-63 514,368 514,368 Transportation Total 4,289,878 3,975,000 4,780,000 6,493,777 1,690,000 21,228,655 Water 6th Street Water Main Design Engineering PW - ENG-40 15,000 15,000 6th Street Water Main Construction Engineering PW - ENG-41 5,000 5,000 6th Street Water Main Construction PW - ENG-42 139,986 139,986 Replace Water Main South Street PW - W-01 140,000 140,000 Well No.10 Pull for Maintenance (2006) PW - W-02 60,000 60,000 Well No.11 Pull for Maintenance (2006) PW - W-03 60,000 60,000 Well No.13 Pull for Maintenance (2005) PW - W-04 60,000 60,000 Well No.14 Pull for Maintenance (2005) PW - W-05 60,000 60,000 Well No.12 Pull for Maintenance (2005) PW - W-06 60,000 60,000 Well No.16 Pull for Maintenance (2006) PW - W-07 60,000 60,000 North Water Tower Painting PW - W-08 530,500 530,500 Replace Softening Resin 7th Street PW - W-09 125,000 125,000 Replace Softening Resin - Lincoln Hwy WTP PW - W-10 150,000 150,000 Replace Softening Resin - County Farm Rd. WTP PW - W-11 144,900 144,900 Capital Improvement Plan - City of DeKalb, Illinois Page 4 Tuesday, November 01, 2016 Category Project# FY 17 FY 18 FY 19 FY 20 FY 21 Total Replace Softening Resin - Corporate Dr. WTP PW - W-12 125,000 125,000 Iron Filter Sand Media Replacement Lincoln Hwy PW - W-13 60,000 60,000 Replace Roof - Lincoln Hwy WTP PW - W-14 20,000 20,000 Replace Roof - 7th Street WTP PW - W-15 20,000 20,000 Replace Roofs - Well Nos. 16 & 17 PW - W-16 5,000 5,000 Design Work - Well No. 18 (new well) PW - W-17 67,500 67,500 Replace Water Main - South 6th Street PW - W-18 150,000 150,000 Water Main Replacement Undesignated PW - W-19 978,100 1,070,900 1,143,599 3,192,599 Replace Water Main - Lewis to Vienna PW - W-20 262,500 262,500 Replace Water Main - Joanne PW - W-21 1,350,150 1,350,150 Replace Water Main - South 6th Street PW - W-22 160,000 160,000 Replace Water Main - S. 11th Street PW - W-23 169,750 169,750 Replace Water Main - Maplewood PW - W-24 99,750 99,750 Replace Water Main - Sunset PW - W-25 367,500 367,500 Water Meters PW - W-26 150,000 150,000 150,000 150,000 150,000 750,000 Replace W-2 Ford 1-Ton Pickup (2006) PW - W-27 47,700 47,700 Replace W-3 International Utility Truck (2003) PW - W-28 123,600 123,600 Replace W-5 Chevy Blazer (2003) PW - W-29 31,800 31,800 Replace W-9 Ford Cargo Van (2003) PW - W-30 40,000 40,000 Replace W-12 GMC 4x4 1-Ton (1998) PW - W-31 65,000 65,000 Replace W-13 Dodge 4x4 Pickup PW - W-32 38,200 38,200 Replace W-14 Chevy Tahoe (1999) PW - W-33 30,000 30,000 Replace W-21 John Deere Loader (2000) PW - W-34 180,000 180,000 Replace W-28 Chevy Barricade (1999) PW - W-35 63,700 63,700 Replace W-29 International Dump Truck (2005) PW - W-36 150,000 150,000 Replace W-15 Ford F350 Pickup Truck (2006) PW - W-37 45,000 45,000 Water Total 2,494,986 1,953,750 1,528,600 1,511,700 1,736,099 9,225,135 GRAND TOTAL 9,489,440 12,539,252 10,959,629 9,596,185 5,183,546 47,768,052 Capital Improvement Plan - City of DeKalb, Illinois Page 5 Tuesday, November 01, 2016  SSA 5 YEAR EXPENDITURES Special Service Areas 5-Year Plan FY17 FY18 FY19 FY20 FY21 Heritage Ridge Subdivision Fund 23 $1,500 $1,000 $1,000 $1,000 $1,500 Knolls Subdivision Fund 24 $5,000 $4,000 $4,000 $6,000 $4,000 Heartland Fielsd Subdivision Fund 25 $2,500 $2,500 $2,500 $2,500 $2,500 Greek Row Lighting Fund 26 $13,500 $13,500 $13,500 $13,500 $13,500 Annual transfer of $500 from each SSA included in 5 year plan below CITY OF DEKALB SPECIAL SERVICE AREA 5-YEAR PLAN FY 2016 Preliminary FY 2016.5 BUDGET FY 2017 BUDGET FY 2018 PLAN FY 2019 PLAN FY 2020 PLAN FY 2021 PLAN FUND NAME 2015 ENDING REVENUES EXPENSES PROJECTION REVENUES EXPENSES ENDING REVENUES EXPENSES ENDING REVENUES EXPENSES ENDING REVENUES EXPENSES ENDING REVENUES EXPENSES ENDING REVENUES EXPENSES ENDING Heritage Ridge SSA #3 (23) $6,086 $0 $1,163 $4,923 $0 $500 $4,423 Weed Control, Replace Dead Plants $1,000 $2,000 $3,423 Weed Control, Landscape Trimming $1,000 $1,500 $2,923 Weed Control, Landscape Trimming $1,000 $1,500 $2,423 Weed Control, Landscape Maintenance $1,000 $1,500 $1,923 Weed Control, Replace Dead Plants $1,000 $2,000 $923 Knolls Subdivision SSA #4 (24) $24 $4,406 $5,874 ($1,443) $5,000 $3,500 $57 Weed Control, Landscape, Trimming, Mulch, Washed Stone $5,500 $5,500 $57 Weed Control, Landscape Maintenance $5,500 $4,500 $1,057 Weed Control, Landscape Maintenance $5,500 $4,500 $2,057 Weed Control, Landscape Maintenance, Mulch, Washed Stone $5,500 $6,500 $1,057 Weed Control, Landscape Maintenance $5,500 $4,500 $2,057 Heartland Fields SSA #14 (25) $990 $2,500 $2,320 $1,170 $2,500 $1,750 $1,920 Detention Pond Mowing, Sidewalk Snow Removal $2,500 $3,000 $1,420 Detention Pond Mowing, Sidewalk Snow Removal $2,500 $3,000 $920 Detention Pond Mowing, Sidewalk Snow Removal $2,500 $3,000 $420 Detention Pond Mowing, Sidewalk Snow Removal $3,000 $3,000 $420 Detention Pond Mowing, Sidewalk Snow Removal $3,000 $3,000 $420 Greek Row SSA #6 (26) $2,974 $10,001 $21,805 ($8,830) $10,000 $0 $1,170 Electricity and Lighting $14,000 $14,000 $1,170 Electricity and Lighting $14,000 $14,000 $1,170 Electricity and Lighting $14,000 $14,000 $1,170 Electricity and Lighting $14,000 $14,000 $1,170 Electricity and Lighting $14,000 $14,000 $1,170 RETURN TO AGENDA