Budget - 2019
2019 Proposed Budget
The Proposed 2019 Budget document (PDF) is available for download.
The Village Board will discuss the Proposed 2019 Budget during a special Committee of the Whole meeting on November 5 at 7:00 p.m., and during regularly scheduled Committee of the Whole meetings on November 12 and November 26, immediately following the Village Board meetings on those nights. These meetings are held in the Council Chambers at Village Hall and are open to the public. The Board will officially adopt the final 2019 Budget during a regular Village Board meeting in December.
Goal of Fiscal Sustainability Drives 2019 Budget Preparation
The Proposed 2019 Budget includes the funding necessary to provide the residents and business owners of Roselle continued cost effective and efficient administrative, public safety, and public works services. It also provides for a continued aggressive capital project program designed to provide improvements to our municipal building, street, stormwater, wastewater, and water infrastructure. Staff has worked closely with the Village Board during this current fiscal year to ensure the Village’s financial sustainability. As a result of continued prudent budget planning and specific initiatives related to fiscal sustainability, economic development, and expenditure reduction, the Village’s budget outlook remains strong. Despite challenges faced by a reduction in the Village’s share of the State of Illinois income tax revenues, the Village continues to experience development within its tax base leading to modest increases in other revenues such as sales tax and building permit fees.
Major Initiatives and Factors Influencing Budget Development
- On August 24, 2018 S&P Global Ratings reaffirmed its AA+ rating with a stable outlook to the Village of Roselle based on its strong economy, strong management, strong budgetary performance, and very strong budgetary flexibility and liquidity. More specifically, the new ratings report highlighted previous year General Fund surpluses in 2016 and 2017 leading to an available fund balance of 44% of operating expenditures, or $6.8 million in 2017. The proposed budget reflects continued fiscal sustainability with projected General Fund reserves of 43% in 2019.
- On September 10, 2018, the Village Board concurred with Foster & Foster’s Actuarial Valuation Report and a recommendation from the Finance Planning Committee to decrease actuarial assumptions to investment earning and payroll growth percentages ensuring long-term funding sustainability for its two public safety pension plans. As a result, the proposed budget reflects employer contributions to the fire and police pension funds increasing by $65,030 and $133,695 respectively. Evaluating public safety pension funding alternatives was identified as an initiative in the Village Board’s new 2018 – 2021 Strategic Plan.
- Previous economic development programs designed to retain existing and attract new small and large businesses in Roselle such as Italian Pizza Kitchen, Rosarios Pizza, Amperage Electric, and Business Office Solutions, have led to continued increases to the Village’s tax base. The proposed budget reflects sales taxes increasing by 5% and eating establishment taxes to increase by 12%. Since 2016, sales and eating establishment tax revenues have increased by 17% and 28% respectively.
- Building upon the Village’s ability to achieve benefits from participating in consortiums comprised of local governmental entities, effective January 1, 2019, the Village becomes a member of the Intergovernmental Personnel Benefits Cooperative (IPBC), a self-insured health, dental, and life insurance benefit program. The Village can expect potential cost savings and process improvements made possible by the financial stability, plan design freedom, and purchasing power of the IPBC.
Significant Budget Highlights
- No new resident or business owner local tax, fee, license, or fine increases other than the previously approved water and sewer user fee increases outlined in the Five-Year Baxter & Woodman rate schedule plan.
- The General Operating Fund budget reflects revenues exceeding expenditures by $127,140. The projected unreserved fund balance will be $7,220,745 or 43%, thereby exceeding the Village Board’s Strategic Plan Financial Sustainability Priority target of 35%.
- The General Capital Projects and Water/Sewer Capital Projects funds include $755,000 for the annual street improvement program, $1,685,370 for water main replacement, $6,935,225 for wastewater treatment plant and collection system projects, $576,000 for municipal building and facility repairs, and $200,000 for stormwater improvements. An additional $128,000 in funding has been budgeted for resurfacing a portion of the Metra Train Station parking lots.
- The Equipment Replacement and General Operating funds include $534,490 for the replacement of police and fire department emergency and life safety equipment. The proposed budget reflects replacements of a new ambulance, fire marshal vehicle, and police emergency response squad. In addition, funding has been included for the replacement of five cardiac monitors located on the three ambulances, engine, and rescue squad and replacement of 27 automatic external defibrillators located in all police and fire vehicles and each municipal building.
- There are several revised programs and services and elected official initiatives including proposals to increase weekly hours for contractual IT support, contracting for lawn mowing services, augmenting emergency medical services equipment, and exploring the feasibility for developing a public safety regional training facility.