 Hard to believe three months ago, I never thought I'd be standing up here delivering the executive program budget. So thank you mayor, thank you council, thank you department heads. So you should have already received our executive program budget in brief and you should have received the the letter from myself to to the members of the council and mayor of Anderstein. So there should be plenty of information for you guys to review and if you have questions please let us know. So moving forward our city's mission statement as you guys know it well has not changed and our and our vision statement has also not changed. Our city's values though I'd really like to review those with everybody. Accountability, fiscal responsibility, innovation, respect, service and teamwork. These are six values that I believe that we need to focus stronger on in the future and it really I'd like to see us add communication also. These are things that really make us what we are today and we use them daily. Moving to the next one. State and city restraints. As you can see this we have our state laws, our tax levy, our budget parameters, our expenditure restraint program, tax rate CPI or lower, minimum fund balance and our target of 25 percent which we've continuously performed better. So I just want to be reminding everybody about our limitations. It's a balancing act which I found very interesting obviously in the last couple of months. We're looking to a better plan for our TID closures. We're looking to map out a strategic plan for the future of each TID closure so that we can look at growth and projects in the future. Obviously this limits what we can can raise tax levies also with our restraints. Next, I'm sorry go back one. Okay perfect. No you're good. Tax levy limits I just wanted to touch on that. The state law restricts the percentage of increase of our city's tax levy based on several areas. Previous tax levy year, our net new construction which technically we had a 2.89 percent or an 84 million 255,500 for 2020. Our TID closures as you all know TID 11 closed and that gave us 99,148 or 45 sorry and then TID subtractions. Next. So when we talk about our expenditure restraint program obviously that allows us to increase the general fund expenditures by 60 percent of the percent increase of the city's net new construction and the allowable CPI. We also have the 2021 the city is estimating a 3.1 allowed increase in expenditures. Please understand that our constraint growth and development is better than a spike so what I mean by that is year over year if we were to have continuously have development within the city would actually affect us better on our on our taxes than a spike like we had last year. So if you remember back in 2019 we had a little bit of a problem with with our some some of our development not carrying over by the IRS so we kind of penalized because this last year we actually had a large growth. Next. Equalized tax rate and CPI or lower estimated consumer price index is 1.4 and 2021 executive budget recommends an equalized tax rate of negative 7.98. Next. So when we look at our assess tax rate our 2020 is estimated due to timing 2021 we had a we're looking to have a 15 cent or a 1.49 and you can find that in your budget fax sheet in 2020 just to review we had a 13 cent or a 1.33 percent and in 2019 we actually had a 19 cent per thousand or a 1.194 percent. Next. Our fund balance this is quite unique the city's goal is to maintain a fund balance 25% of the year of the next year's budgeted general fund expenditures that's our target and we do a very very good job of that. We're also fiscally responsible and we use that as our safety net consistent with our Moody's credit services recommendations on the calls that I've been on this has been a very good thing for us to help us maintain our double a 2. Our 2021 executive budget fund balance is approximately 41% so remember our goal is 25% we're at 41% last year we were at 39% and if you remember we actually I believe it was back in 2018 we actually used $5 million to help the remodel out of our fund balance so again we've already replaced it and we're already at 41% for 2021. We have to be cautious on spending and expenditures due to COVID but the additional we are looking to have some additional training and munis upgrades to get us off the AS 400 so a lot of these are going to be looking at to come out of the our fund balance in the future. Next so as you can see in this graph our uncommitted fund balance you can see how how we've been increasing our executive our target we shoot to be is at 9,995,259 that's the 41% and if you look at where we are we're at the 16,280,752 our actual fund balance next so on here you can see our 2020 budget facts so if you guys can't sleep tonight or the game is not looking so good you can look this over oh we'll be fine next this is our favorite page property tax levy just because it's so colorful you can see that it's consistently split we've had an increase in our property tax levy by 50,667 we increased that for the meet public library levy portion that'll give them a 2% for their wages we had a decrease of 40,716 dollars in the levy for transit so we reduced what we were our contribution there our debt service we did increase 299,043 dollars and our capital improvements we decreased by 80,025 dollars to 812,000 so by doing that it allowed us to have these increases in the meet public library and our debt service next our 2021 personal personnel changes our first one was on FTE program coordinator senior services that is actually net neutral to the budget the friends group for the senior center is actually funding that through the city the second one is an FTE page supervisor that was requested by the meet public library that will have to be reviewed by the public library board of trustees for final approval we were not able to provide them with additional funding for that we're trying to obviously maintain the budget and keep it net neutral the third one is the transfer of one FTE in public works streets and sanitation and that was actually planned in the 2020 budget and it's just kind of happening now next in this one you can see our general fund revenues you can see how it all how breaks out with all of the different departments next the details are here for the general fund revenues next the 2021 general fund expenditures again this is basically the breakdown from all from you know public works public safety a general government all of our transfers we're very consistent we've had we have a flat budget so the team did a great job looking at under every rock to be able to see what we what do we need and what do we have to still maintain next here are the details that you can see from 2020 to 2021 next special revenue special revenue funds expenditure this is basically changes in our in these areas are minimal as you can see just looking through it you can see the general government the public safety public works very minimal overall next special revenue funds notables basically this is where we have the urban forestry management plan a contribution of 110,000 neighborhood revitalization this is the second year of tit 11 increment the south 10th street reconstruction 88 infrastructure this is also from which is 72,000 this is also coming from the tit 11 increment the stonebrook crossing subdivision grading this is being brought to us through the park impact fees so that'll be 15 $50,000 out of there and then the increase in tax levy contribution for the meet public library that is the the funds that were provided for the of 50,667 that that'll be used by the meet public library for wage increases for the year next oh sorry special revenue fund notables this is really where everybody kind of asks how how are we doing so tourism room tax revenue uh due to pandemic has a decrease of negative 546,000 estimated the harbour center marina we're looking at estimated 225,000 negative and we're continuing to transfer we are moving things uh as far as receipts in that we're looking at 26,000 is anticipated and we're also looking at the marina rentable storage units of 25,000 so they're one of the things that I did want to bring up is that there is a lot of use in the area due to the local businesses so when we talk about the hotels and things like that they're actually doing better than estimated and a lot of that I can tell you is from my past life because there's there are businesses in the local area like in shabuigan falls that actually had to bring in like 60 plus employees to temporarily live in shabuigan in shabuigan falls because of the pandemic so that obviously brought in quite a bit of revenue that's not a norm next so the debt service fund uh this is quite interesting so basically in the 2020 and 2021 is deceiving so part of this that we want you guys to remember is when we did the 18 to 19 and 19 into 20 if you remember we were moving a lot of dollars in the in the uh general obligation because of the the borrowing for south point and for the for the remodel of of uh city hall the same thing is going to happen basically in 2021 and that's why you see an uptick of 36.01 percent the reason that's actually showing is the nans that we did for for our past obligation did not show up in our debt so now they're going to become geodebt which will actually show up so now we're borrowing this in 2020 but we're actually expensing it or spending it in 2021 so this will the reason we're doing this is we wanted to get away from the the nans we needed to extend it into the geodebt but i also wanted to remind you that the the actual interest rates are much better much more pleasant and that's another reason why we're doing it next so the debt service fund notables um as you can see property tax levy increases of two hundred ninety nine thousand forty three dollars we stole our maintaining our moody's uh double a two and it's been very favorable for us uh late 2020 refunding of the ten and a half million nan so the timing difference in the expenditure offset as i explained before the 2021 plan geodebt issue of four million two hundred fifty four thousand thirty eight dollars to fund the approved uh 2021 capital improvements fund and that was approved in june of 2021 2020 sorry next capital projects just to kind of review those real quick um so we have the traffic flow improvement of 14th and taylor and eerie and kohler avenue kohler memorial sorry uh that's a million nine hundred forty three 800 we have the geely avenue um so north third third street to calument drive that's a million dollars the four police squad and and the computer upgrades of 243 000 we have this boots and sports complex of 190 000 we have the sidewalk improvements um city wide which is our typical 100 000 we have the led uh street street lighting upgrade uh city wide of 60 000 the one thing i did want to bring to the council is that the senior center is not included in this in this funding we're looking to come back to you and ask to use fund balance we'll also be applying for a HUD 108 loan so there'll be some information coming to you guys in the future next tid related capital projects uh tid 19 north commerce street in construction that's two and a half million tid 17 south pier street expansion is a million tid 17 indiana avenue trail project phase one is uh 875 000 tid 17 indiana avenue streetscape improvements 750 000 and then tid 20 our newest tid is south business drive georgia avenue intersection improvements of 700 000 and that's the oscar project just to remind you next proprietary funds expenditures as you can see above they includes uh water utility for projects and increases next so on this page basically it outlines the water utility um so you have the south lake shore sewer interceptor of upwards of 10 million dollars dollars sewer line reconstruction relining of a million dollars and that's a that's a project that is continuously happening throughout the city aeration uh blower number two replacement that's 350 000 and again that's an ongoing plant maintenance upgrade so you're going to see increased billing costs uh to the water utility of 125 000 also due to that is the chemical treatment cost of 37 430 and the estimated increase will be a 4 percent which is approved so the water utility board of water commissioners approves their increase and the wastewater increases are approved by the public state commissioners and they approve it every one to two years by the dnr so proprietary funds notables employee health insurance premiums increase five percent employee hsa contribution reinstated 375 200 transit maximizing cares act funding so transit uh facility maintenance upgrades is 200 000 and then paratransit vehicles is 260 000 one of the things i did want to outline and talk a little bit about is the it six percent and the motor vehicle two and a half percent maintenance fee increase um continuation this is a this is a process that the city's been undertaking the last few years so we're charging each department so if it's it related they get charged six percent and then if it's a vehicle related then they they get hit with a two and a half percent maintenance fee this is basically to allow the city to not have to borrow so much so by internally charging it to each department then we're able to build a fund so that we're able to replace our fleet on a strategic plan so this is a really good way to actually manage and not have to borrow for funds in the future so it's to help us support and be self-sufficient in the future next so bringing all good things to an end and trying to keep you guys awake our budget information as you can see is here at the city hall meet public library and it's also on our website and again i just want to have a shout out to the city staff and Carrie for everybody that's had to work on this and the countless hours especially in the finance department with with marty and his team budget time is very difficult we're trying to find ways to streamline it but and i think we will get there year over year we're making strides to make sure that the information is much easier to to get and that it's obviously accurate and efficient for us to get this information to you guys so that that's my presentation thank you