City of Evanston Releases 2012 Proposed Budget
On Friday, October 7, the City of Evanston City Manager Wally Bobkiewicz released the proposed budget for Fiscal Year 2012, which runs from January 1, 2012 to December 31, 2012. The total proposed budget for FY2012 is $251,378,096 which includes all funds and interfund transfer expenses. When interfund transfers are excluded from this calculation, the total budget for all funds is $218,478,697. The General Fund budget is projected to have $85,013,206 in revenues and $87,436,000 in expenditures, which produces a deficit of $2,422,794. Click here for 2012 Budget and Transmittal Memo>>>
The annual budget is a policy document which sets the financial course for the city and defines the service priorities provided to the community. It is the culmination of months of effort by the entire city staff, as well as residents, to balance available resources with the actual and desired services required by residents, businesses and visitors.
“The national economy remains an area of concern for the city, as it impacts our local economy in numerous ways including employment, housing and economic development,” explained Bobkiewicz. “As such, staff has been diligent about monitoring expenses and revenues to ensure that the city remains fiscally stable in these trying economic times, while still providing core services in the most responsible ways possible.”
This Proposed Budget marks the third consecutive budget year that the city has facilitated a community budget process. This year’s process, Engage Evanston, allowed residents to dialogue about community priorities and budgetary challenges, help shape budget priorities and generate service change ideas that either reduce costs or enhance revenues to close the projected budget deficit. Residents were encouraged to participate in a budget survey and provide live feedback at two budget workshops.
The FY2012 proposed budget includes many programs and initiatives to further the City Council’s adopted goals. Click here for adopted 2012 City Council Goals.
In 2011 the city reclaimed its Aaa ranking from Moody’s and maintained its AAA ranking from Fitch. The Municipal Bond Market expresses its confidence in the city to be able to meet all debt service payments through this ranking. The city continues to look at methods to reduce General Obligation debt that places any further burden on the property taxpayers in Evanston.
In 2011 major revisions to the Police and Fire Pension benefit levels and funding requirements were approved by the State of Illinois. Some of these changes will provide immediate relief to the increasing costs of public safety pensions. Other changes will only become beneficial through staff turnover, when tier one benefited employees are replaced with tier two employees.
Current year revenues are on target to meet budget, and with the county returning to a more normal schedule for sending out property tax bills, the city should receive all property taxes prior to the end of the fiscal year. Income and sales tax revenues are both performing above budgeted levels, as well as real estate transfer taxes. The city has also adjusted the vehicle sticker payment schedule to end on December 15, 2011, which should allow the collection of nearly all the annual revenues from this source. Building and related permits remain volatile; but the city is projecting at least one major building to be constructed on the Northwestern campus, east of Sheridan Road.
Overall, the General Fund is expected to end the year with a surplus of just over $940,000. The bulk of this effort comes from departments holding the line on expenses.
As the city looks to next year, it continues to refine operations based on feedback from the community and overall service level demands. It continues to examine service delivery models to see if outsourcing, insourcing, managed competition or regionalization will offer benefits to the city. The largest activity in this area is the proposed outsourcing of specific functions in the Forestry Division. The city’s current analysis involves the outsourcing of the removal of large diameter trees, which is a common practice among suburban Chicago communities.
The total full-time equivalent staffing level for FY 2012 is proposed at 785.42 full-time equivalents, compared to a high level of 884 in 2006-07. This budget reflects the reductions of a net eleven full-time positions.
In addition to the position reductions, there have been several other adjustments to existing positions, which have resulted in some reductions in hours or transfers of duties. All of the changes have been made in an effort to continue to focus efficiency and effectiveness of service delivery.
Along with the position reductions made in the General Fund, there are several revenue enhancements. The 2012 Proposed Budget includes a 3.0% increase to the General Fund Operating Property Tax Levy.
Overall, revenues for the General Fund are projected to be relatively flat in FY 2012. Non-property tax revenues (sales, income, utility and other taxes) are projected to increase by 3.7% over FY2010-11 levels. As noted, the Proposed Budget also includes a $1,230,000 property tax increase for operating purposes. However, these increases will be offset due to the creation of the Solid Waste Fund, which will now be the location of all sanitation related fees and will also need a portion of General Fund revenues, as our sanitation fees have never been sufficient to cover total operating costs.