Budget - 2019
The 2019 Budget document (PDF) is available for download.
Goal of Fiscal Sustainability Drives 2019 Budget Preparation
The 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 worked closely with the Village Board during 2018 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 for 2019 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, Rosario's 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 $6,465. The unreserved fund balance is anticipated to be $7.2 million or 43% at the end of 2019, thereby exceeding the Village Board’s Strategic Plan Financial Sustainability Priority target
- The General Capital Projects and Water/Sewer Capital Projects funds include $755,000 for the annual street improvement program, $1.7 million for water main replacement, $7 million for wastewater treatment plant and collection system projects, $651,000 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 $986,790 for the replacement and purchase of new vehicles and equipment including an ambulance, a fire marshal vehicle, a police squad, five cardiac monitors/defibrillators for fire emergency vehicles, automatic external defibrillators for all police and fire vehicles and each municipal building, two mechanical CPR devices for fire emergency vehicles, a power patient lifting system for an ambulance, a dump truck, a pick-up truck, a wood chipper, and replacement the phone system for the Village’s public buildings.
- There are several revised programs and services in the adopted budget including additional contractual IT support, zoning ordinance update, video presentation equipment for the Council Chambers, and community mental health services provided at the Police Department. The adopted budget includes no changes in the Village’s overall authorized staffing levels.