Budget - 2020
The 2020 Proposed Budget document (PDF) is available for download.
Fiscal Sustainability Efforts and Revenue Growth Result in Strong Budget Outlook
The proposed 2020 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 and replacement of public safety emergency response and public works vehicles and apparatus. As a result of continued prudent budget planning and specific initiatives related to fiscal sustainability, economic development, and expenditure control, the Village’s budget outlook remains strong. Despite challenges faced with increased employer contributions to the police and fire public safety pension funds, those increases have been offset by robust state shared sales, income, and other local tax revenue growth.
Major Initiatives and Factors Influencing Budget Development
- Earlier this year, the Village Board concurred with Foster & Foster’s Actuarial Valuation Report to further decrease the actuarial assumption used for investment earnings ensuring long-term funding sustainability for its two public safety pension plans. This action, along with a change to the mortality table rates and poor investment earnings in the last quarter of 2018, increased employer contributions to the fire and police pension funds by $275,110 and $354,025 respectively. Evaluating public safety pension funding alternatives such as changes to investment earning assumption was identified as an initiative in the Village Board’s 2018 –2021 Strategic Plan.
- FY 2020 represents the last year of the previously approved five year water and sewer user fee rate increase plan designed to provide the necessary funding to complete improvements to the Village’s water main and wastewater treatment plant and collection system. Due to favorable competitive bid results for various water and wastewater infrastructure projects over the last four years, debt service payments being less than expected, and the timing for when projects were completed, staff recommends freezing resident and business owner water and sewer user fee rates at the level charged in 2019. Therefore, the FY 2020 water and sewer operating and capital project funds reflect revenues based on 2019 rates.
- State shared sales, income, and local use tax revenues continue to reflect strong growth for a non-home rule community like Roselle. The FY 2020 General Operating Fund budget reflects state shared tax revenues increasing by 12.7% or $757,590 over what was included in the FY 2019 adopted budget. Local tax revenues primarily generated from eating establishment and video gaming taxes reflect an increase of 10.8% or $78,210 over what was included in the FY 2019 adopted budget.
- As a result of the State of Illinois adopting its Rebuild Illinois capital bill, the Village will receive additional state motor fuel tax funds. Motor fuel tax funds are used by the Village to pay for the annual street improvement program and other street related maintenance expenses. The FY 2020 Motor Fuel Tax Fund budget reflects state allocated tax revenues increasing by 48% or $280,000 over what was included in the FY 2019 adopted budget.
Significant Budget Highlights
- No new resident or business owner local tax, fee, license, or fine increases.
- The General Operating Fund budget reflects revenues exceeding expenditures by $86,545. The projected unreserved fund balance will be$8,384,763 or 46.6% of expenditures, thereby exceeding the Village Board’s Strategic Plan Financial Sustainability Priority and financial policy target of at least 35%.
- The General Capital Projects, Motor Fuel Tax, and Water/Sewer Capital Projects funds include $760,000 for the annual street improvement program, $1,330,000 for water main replacement, $7,824,900 for wastewater treatment plant and collection system projects, $153,000 for municipal building and facility repairs, and $200,000 for stormwater improvements. An additional $81,000 in funding has been budgeted for resurfacing a portion of the Metra Train Station parking lots.
- The General and Water/Sewer Equipment Replacement funds include $706,700 for the replacement of several police, fire, and public works vehicles. The proposed budget reflects replacements of three police emergency response vehicles, a fire emergency response rescue squad, two public works street division dump and snow removal trucks, and four water and wastewater utility division vehicles. In addition, $160,000 has been included for the replacement of 30 sets of fire department personal self-contained breathing apparatus equipment
- There are three new staffing and equipment initiatives included as revised programs and services for further Village Board consideration. They include the reallocation of authorized positions in the police department, additional hours for one of the part-time firefighter/paramedic positions in the fire department, and new personal protective equipment for emergency responders in the fire department.