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Home My WebLink About09302024 City Council Work Session 2025 Budget PresentationFY 2025 Draft Budget Work Session SEPTEMBER 30, 2024 Topics •FY25 Budget Calendar •FY24 Overview •Fire and Police Pension Funds •Property Tax Estimation •FY25 Draft Budget General Fund Park & Recreation Fund Economic Development Fund Water Fund 2 Budget Schedule May - June – Forecast performed by departments July – Budgets due from departments August – Recommended revenue adjustments due from departments September – Balance/Discuss budget; provide draft budgets to Council October – First and Second readings on revenue adjustments; property tax estimation resolution November – Public hearing for budget; first and second readings on property taxes December – Approve budget; provide tax levy ordinances to County Clerk 3 2024 Review 4 2024 Budget 5 Fund 2024 Revenues Other Sources 2024 Expenses 2023 Expenses General 29,991,225 686,560 30,677,785 28,022,330 Park Fund 5,425,910 911,795 6,337,705 5,835,755 Economic Development 1,246,375 93,440 1,339,815 1,494,915 Public Transortation Services 2,736,985 - 2,736,985 2,532,610 Storm Water Utility 758,100 378,285 1,136,385 1,024,600 Other Special Revenue 10,776,535 1,806,750 12,396,350 14,323,625 Debt Service Funds 1,477,630 - 1,477,630 1,085,405 TIF Funds 385,610 21,460 587,390 1,010,370 Replacement Program Funds 944,005 552,845 1,496,850 1,442,370 Utility Tax Capital Projects 1,564,200 801,730 2,365,930 2,175,935 Other Capital Project Funds 184,700 8,510,000 8,504,700 1,369,610 Water Operations 7,694,600 - 6,953,360 6,571,250 Refuse 3,262,165 - 3,238,605 3,120,785 Risk Management 1,191,725 - 1,128,720 1,152,545 OPEB Trust 1,241,455 - 1,241,455 1,800 Permanent Funds 32,500 - 21,500 18,700 Grand Total - All Funds 68,913,720 13,762,865 81,641,165 71,182,605 2024 Tax Revenue Highlights 6 Shared Tax Comparisons As of September 2024 7 Shared Tax Comparisons As of September 2024 8 Food & Beverage and Hotel/Motel Taxes as of August 9 Hotel/Motel Tax Distribution As of July 2024 10 10.8% Total Hotel/Motel Tax Rate Distribution of Hotel/Motel Tax City 174,585$ Galesburg Promise - 3.8%195,588$ Orpheum Contract $100,000 75,000$ Galesburg Tourism Contract $190,000 110,833$ Fire & Police Pension Funds 11 Public Safety Pensions Actual Vs. Actuarial Amounts 12 Police Pension Funding FY 2016 - 2025 •Based on actuarial recommended contribution (ARC) amount •Actuarial values of assets $35,018,428 •Actuarial accrued liability $69,712,793 •Unfunded actuarial accrued liability $34,694,365 •Percent funded 50.23% 13 Fire Pension Funding FY 2016 - 2025 •Based on actuarial recommended contribution (ARC) amount •Actuarial values of assets $30,902,439 •Actuarial accrued liability $61,623,927 •Unfunded actuarial accrued liability $30,721,488 •Percent funded 50.15% 14 Public Safety Employer Pension Contribution Options 15 Pension FY24 Levy FY25 State Minimum FY25 Median FY25 Actuary (ARC) Fire 2,497,850 2,540,705 3,094,715 3,648,725 Police 2,593,682 2,748,704 3,335,370 3,922,034 Total 5,091,532 5,289,409 6,430,085 7,570,759 FY24 Fire ARC recommendation $3,463,347; State minimum $2,447,841 FY24 Police ARC recommendation $3,573,722; State minimum $2,543,660 FY24 public safety pension levy is $1,945,537 less than total ARC Public Safety Pensions FY25 Property Tax Options 16 Fire and Police Pension Levy Amounts All Levy Line Items for City Public Safety Pensions Levy Criteria Public Safety Pension Amounts Public Safety $ Increase from FY24 Levy Public Safety % Increase from FY24 Levy Estimated Tax Rate Estimated Tax Amount per $50k $ Change from FY23 Levy Per $50k *Truth in Taxation Hearing Required State Minimum 5,289,409 197,877 3.89%$2.42 $403.43 -$3.87 No Minimum + $100k 5,389,409 297,877 5.85%$2.44 $407.30 $0.00 No Median 6,430,085 1,338,553 26.29%$2.69 $447.56 $40.26 Yes Actuary 7,570,759 2,479,227 48.69%$2.95 $491.68 $84.38 Yes Proposed FY25 Property Tax Comparison to FY24 Property Tax 17 Description FY24 Rate FY24 Extension FY25 Est. Rate FY25 Proposed Levy $ Change % Change Current % of Levy New % of Levy General/Park & Rec $ 0.315 1,310,737 $ 0.267 1,133,340 (177,397)-14%13%11% IMRF $ 0.068 285,039 $ 0.067 285,023 (16)0%3%3% Social Security $ 0.060 250,123 $ 0.059 250,112 (11)0%2%2% Police Pension $ 0.622 2,593,682 $ 0.659 2,798,715 205,033 8%25%27% Library $ 0.455 1,895,023 $ 0.469 1,989,769 94,746 5%19%19% General - Fire $ 0.324 1,349,945 $ 0.331 1,450,079 100,134 7%13%14% Fire Pension $ 0.599 2,497,850 $ 0.592 2,590,714 92,864 4%25%25% Total $ 2.444 10,182,399 $ 2.444 10,497,752 315,353 3.10%100.00%100.00% Property Tax Estimation Examples 18 $50,000 Home Value $100,000 Home Value FY24 Current FY25 Estimate Change FY24 Current FY25 Estimate Change $407.30 $407.30 $0.00 $814.60 $814.60 $0.00 2025 Draft Budget 19 2025 Draft Budget 20 Fund 2025 Revenues Other Sources 2025 Expenses General 31,365,710 948,375 32,314,085 Park Fund 5,980,410 1,135,090 7,115,500 Economic Development 1,372,100 592,355 1,964,455 Public Transortation Services 2,821,325 - 2,821,325 Storm Water Utility 841,175 187,660 1,028,835 Other Special Revenue 8,004,395 2,535,705 10,510,105 Debt Service Funds 1,490,845 - 1,490,845 TIF Funds 407,315 259,955 617,700 Replacement Program Funds 1,233,065 - 1,040,720 Utility Tax Capital Projects 1,700,435 6,970 1,707,405 Other Capital Project Funds 401,505 2,481,495 2,876,265 Water Operations 8,194,795 - 7,397,475 Refuse 3,352,035 67,925 3,419,960 Risk Management 1,306,070 - 1,257,865 OPEB Trust 1,146,725 - 1,146,725 Permanent Funds 26,330 - 18,450 Grand Total - All Funds 69,644,235 8,215,530 76,727,715 FY25 General Fund 21 FY25 General Fund Fund Balance Estimate 22 Description Amount 1/1/2024 Unassigned Fund Balance 10,753,601 FY24 Budgeted Revenues 29,991,225 FY24 Budgeted Expenditures (30,677,785) 12/31/24 Estimated Unassigned Fund Balance 10,067,041 FY25 Budgeted Revenues 31,365,710 FY25 Budgeted Expenditures (32,314,085) 12/31/25 Estimated Unassigned Fund Balance 9,118,666 Note: FY25 fire and police pension funds are budgeted at the median of the annual required contribution amount (ARC) and State minimum which is $1,140,676 above the State minimum and below the ARC recommendation General Fund Revenues by Category 23 Description 2025 Proposed 2024 Budget $ Change % Change Taxes 26,991,925 25,979,845 1,012,080 3.9% Licenses & Permits 435,380 417,800 17,580 4.2% Fines & Costs 289,260 290,200 (940)-0.3% Use of Money & Property 1,137,175 1,104,060 33,115 3.0% Intergovernmental Revenue 1,398,275 1,283,530 114,745 8.9% Charges for Current Services 1,064,695 875,790 188,905 21.6% Other Revenue 49,000 40,000 9,000 22.5% Total Revenues 31,365,710 29,991,225 1,374,485 4.6% Taxes make up 86% of revenue General Fund Expenditure Highlights •Personnel Services increase of $1.5 million •Use of additional sources other than property taxes for Police and Fire pension contributions to bring up to the median amount totals $1,040,656: •$536,655 additional funds for police pension contribution •$504,001 additional funds for fire pension contribution •Additional 2 FTE being charged to General Fund •Funding the vehicle, building, and computer replacement programs - $357,780 24 General Fund Expenditures by Department 25 Department 2025 Proposed 2024 Adopted 2023 Actual 2022 Actual $ Change % Change Administration 4,124,530 4,054,570 3,155,215 2,551,071 69,960 2% Finance and IT 1,739,205 1,519,480 1,368,750 1,257,416 219,725 14% Community Development 1,067,070 1,038,435 983,467 963,706 28,635 3% Public Works 3,329,400 3,249,715 2,967,007 3,215,787 79,685 2% Police 13,040,040 12,112,080 12,198,905 12,397,538 927,960 8% Fire 9,013,840 8,703,505 8,299,586 9,068,445 310,335 4% Total 32,314,085 30,677,785 28,972,930 29,453,963 1,636,300 5% FY25 budgets for the police and fire departments increased by $1,238,295 or 76% of total increases for the General Fund. General Fund Expenditures by Category 26 Description FY25% of Budget 2025 Proposed 2024 Adopted $ Change % Change Personnel Services 83%26,727,955 25,173,355 1,554,600 6% Contractual Services 11%3,528,040 3,489,770 38,270 1% Commodities 3%1,018,450 843,745 174,705 21% Other Charges 3%1,039,640 1,170,915 (131,275)-11% Expense 100%32,314,085 30,677,785 1,636,300 5% FY25 Park & Recreation Fund 27 Park & Recreation Fund Fund Balance Estimate 28 Description Amount 1/1/2024 Unassigned Fund Balance 2,762,874 FY24 Budgeted Revenues 5,425,910 FY24 Budgeted Expenditures (6,337,705) 12/31/24 Estimated Unassigned Fund Balance 1,851,079 FY25 Budgeted Revenues 5,980,410 FY25 Budgeted Expenditures (7,115,500) 12/31/25 Estimated Unassigned Fund Balance 715,989 Park & Recreation Fund Revenues by Category 29 Description 2025 Proposed 2024 Budget $ Change % Change Taxes 4,367,280 4,050,395 316,885 7.8% Use of Money & Property 1,522,880 1,263,990 258,890 20.5% Charges for Current Services 40,000 50,000 (10,000)-20.0% Other Revenue 39,200 47,725 (8,525)-17.9% Transfer from Other Funds 11,050 13,800 (2,750)-19.9% Total Revenues 5,980,410 5,425,910 554,500 10.2% Taxes make up 80% of revenue Use of Money & Property makes up 28% of revenue Park & Recreation Fund Facility Revenues 30 Description 2025 Proposed 2024 Adopted 2023 Actual 2022 Actual $ Change % Change Bunker Links Golf Course 812,400 694,450 762,753 647,278 117,950 17% Campground 132,500 132,500 122,084 127,932 - 0% Lake Storey Beach & Concessions 29,300 22,200 27,908 18,018 7,100 32% Hawthorne Pool & Gym 39,500 25,000 20,157 14,469 14,500 58% Lakeside Pool 142,600 132,400 173,631 113,438 10,200 8% Lakeside Recreation Facility 31,130 25,130 33,395 26,307 6,000 24% Pavilion Revenues 48,000 40,000 46,429 24,298 8,000 20% Recreation Programs 159,460 97,800 118,458 91,609 61,660 63% Parks & Rec Rental Facilities 10,000 12,500 6,424 86 (2,500)-20% Total Recreation Facilities & Programs 1,404,890 1,181,980 1,311,239 1,063,435 222,910 19% Park & Recreation Fund Expenditures by Category 31 Description FY25% of Budget 2025 Proposed 2024 Adopted $ Change % Change Personnel Services 49%3,515,230 3,172,700 342,530 11% Contractual Services 28%2,018,625 1,973,065 45,560 2% Commodities 11%804,805 769,960 34,845 5% Other Charges 11%776,840 421,980 354,860 84% Expense 100%7,115,500 6,337,705 777,795 12% Personnel services is 50% of total expenses and contractual services is 28% of total expenses Park & Recreation Fund Expenditures by Division 32 Division Name 2025 Proposed 2024 Adopted 2023 Actual 2022 Actual $ Change % Change Parks & Recreation Admin 2,424,760 2,335,635 2,124,678 2,232,776 39,125 4% City Hall Bldg & Grounds 298,550 223,075 187,571 171,214 75,475 34% PSB Bldg & Grounds 193,595 194,470 166,772 144,661 (875)0% Parks Operations & Maintenance 1,026,395 697,790 665,032 663,662 328,605 47% Golf Course 1,293,780 1,056,945 797,846 729,643 236,835 22% Allison Campground 86,280 84,440 89,460 141,877 1,840 2% Lake Storey Beach 107,870 94,770 75,022 55,593 13,100 14% Pavilion 130,475 117,580 86,736 88,024 12,895 11% Recreation Special Programs 310,845 236,435 207,133 185,716 74,410 31% Lakeside Recreation Facility 85,035 159,000 79,330 93,286 (73,965)-47% Lakeside Water Park 371,550 495,910 246,800 250,864 (124,360)-25% Hawthorne Pool 131,200 145,230 45,796 59,355 (14,030)-10% Hawthorne Gymnasium 42,675 37,320 31,798 44,760 5,355 14% Linwood Cemetary 245,440 198,810 159,427 169,476 46,630 23% Forestry 367,050 260,295 185,425 193,018 106,755 41% Total Parks & Recreation 7,115,500 6,337,705 5,148,825 5,223,925 727,795 12% FY25 Economic Development Fund 33 Economic Development Fund Fund Balance Estimate 34 Description Amount 1/1/2024 Unassigned Fund Balance 2,987,270 FY24 Budgeted Revenues 1,246,375 FY24 Budgeted Expenditures (1,339,815) 12/31/24 Estimated Unassigned Fund Balance 2,893,830 FY25 Budgeted Revenues 1,372,100 FY25 Budgeted Expenditures (1,964,455) 12/31/25 Estimated Unassigned Fund Balance 2,301,475 Economic Development Fund Revenues 35 Description 2025 Proposed 2024 Budget $ Change % Change Taxes 1,155,715 1,100,000 55,715 5% Interest 122,240 61,500 60,740 99% Property Rental 94,145 94,875 (730)-1% Total Revenues 1,372,100 1,256,375 115,725 9% Economic Development Fund Expenses 36 Description 2025 Proposed 2024 Adopted 2023 Actual 2022 Actual $ Change % Change Personnel Services 175,940 171,975 117,241 107,133 3,965 2% Contractual Services 306,155 239,155 244,484 204,821 67,000 28% Other Charges 1,482,360 928,685 596,410 476,665 553,675 60% Total Economic Development 1,964,455 1,339,815 958,135 788,619 624,640 47% FY25 Water Fund 37 Water Fund FY23 vs FY24 Revenue Highlights SALE OF WATER FACILITY FEES Amounts shown are revenue that is booked but does not mean revenue received 38 Month FY 2024 FY 2023 $ Change % Change January 337,376 348,819 (11,443)-3% February 345,757 304,974 40,783 13% March 306,357 280,076 26,281 9% April 302,918 355,395 (52,477)-15% May 337,302 309,183 28,119 9% June 381,699 377,521 4,178 1% July 350,971 405,185 (54,214)-13% August 314,088 330,138 (16,050)-5% Total 2,676,468 2,711,291 (34,823)-1% Month FY 2024 FY 2023 $ Change % Change January 229,633 222,106 7,527 3% February 229,642 222,009 7,633 3% March 229,334 221,729 7,605 3% April 229,778 221,236 8,542 4% May 230,201 222,062 8,139 4% June 230,399 222,041 8,358 4% July 230,360 222,165 8,195 4% August 230,345 221,847 8,498 4% Total 1,839,692 1,775,195 64,497 4% Water Costs at Past, Current and Proposed Rates Monthly water costs for a household with consumption of 4,488 gallons (6 units) 39 Fiscal Year Unit Rate Facility Fee Total Cost of 6 Units (4,488 Gallons) $ Increase for Total Water Fees for 6 Units % Increase for Total Water Fees for 6 Units 2023 $2.68 $17.04 $33.12 $1.11 3.56% 2024 $2.77 $17.64 $34.26 $1.14 3.44% 2025 $2.87 $18.26 $35.48 $1.22 3.56% Total Water Revenue FY 2023 - 2025 40 Description 2025 Proposed 2024 Adopted 2023 Actual $ Change % Change Sale of Water 4,290,160 4,165,000 4,004,911 125,160 3% Water Facility Fees 2,854,000 2,731,000 2,664,240 123,000 5% Penalties 140,000 140,000 160,947 - 0% Turn On Fees 39,040 37,000 42,240 2,040 6% Delinquent Fees 150,000 150,000 186,733 - 0% Charges for Current Services 72,265 68,000 78,030 4,265 6% Sanitary Service Fees 200,000 200,000 243,755 - 0% Miscellaneous Other Revenue 449,330 203,600 549,133 245,730 121% Total Revenues 8,194,795 7,694,600 7,929,989 500,195 7% Water Fund Expenses by Category 41 Description 2025 Proposed % of FY25 Budget 2024 Adopted % of FY24 Budget $ Change % Change Personnel Services 2,551,005 34%2,477,835 36%73,170 3% Contractual Services 2,155,300 29%1,830,350 26%324,950 18% Commodities 1,150,110 16%1,094,830 16%55,280 5% Other Charges 1,541,060 21%1,550,345 22%(9,285)-1% Total Expenses 7,397,475 100%6,953,360 100%444,115 6% Questions September – Balance/Discuss budget; provide draft budgets to Council October – First and Second readings on revenue adjustments; property tax estimation resolution November – Public hearing for budget; first and second readings on property taxes December – Approve budget; provide tax levy ordinances to County Clerk 42