PROPOSED BUDGETFISCAL YEAR 2020S P E C I A L C O M M I T T E E - O F - T H E - W H O L E M E E T I N G T H U R S D A Y , O C T O B E R 2 4 , 2 0 1 9

AGENDAFiscal Year 2020 Budget WorkshopGeneral Fund Capital Projects

Water & Sewer Improvement Capital Projects

Outstanding/Follow Up Budget Items

GENERAL FUND BUDGET HIGHLIGHTSTotal Operating Revenue: $12,834,350Total Operating Expenditures: $11,269,000Difference: $ 1,565,350

Proposed General Fund Transfers(Use of Surplus / Reserves): $2.5 M to Water/Sewer Imp$1.2 M General Capital Fund to General

GENERAL FUND BUDGET HIGHLIGHTSGeneral Fund Revenues: flat compared to 2019 (increase of $208,010; 1.6%)

General Fund Expenditures (excluding debt and transfers): increased 7.3% ($768,930) compared to 2019

GENERAL FUND HIGHLIGHTSGeneral Fund Reserve

• 1/1/2019 General Fund Reserve Balance $6,999,280

• 12/31/2019 Projected Reserve Balance $7,439,255

• $439,975 increase

• Staff will make proper adjustments to maintain 75% Fund Balance policy threshold

$0

$2,500,000

$5,000,000

$7,500,000

$10,000,000

$12,500,000

$15,000,000

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024

Transfers toWater

CapitalExpenses

OperatingExpenses

OperatingRevenue

GENERAL FUND REVENUES WITH OPERATING & CAPITAL EXPENSES

GENERAL CAPITAL FUND –REVENUE

GENERAL CAPITAL FUND –EXPENDITURES

Engineering• Phase I – Concept/30% Plans (Planning Level)

• Phase II – Design Engineering/Bid Documents

• Phase III Engineering – Construction Observation

• Engineering contracts selected on qualifications and hours/fee negotiated with staff and then recommended to Village Board

• Fees average 4% - 12% of construction cost (per phase)

Staff’s Role in Engineering• Phase I – Review/Provide Information

• Phase II – Review deliverables, Provide Information/Manage project, coordinate input from others

• Phase III Engineering – Construction Observation

• Smaller projects – staff serves this role

• Large projects – make decisions in field, interact with residents as needed, coordinate public information

Phase I Engineering• Concept/30% Plans (Planning Level)

• Used for budgeting

• No survey. Use of GIS info.

• Helps define scope for future phases

• Identifies fatal flaws/permitting requirements

Phase II Engineering• Design Engineering/Bid Documents

• Survey• Design• Evaluation of utilities if necessary• Plan sheet preparation• Quantity calculations• Specifications• Permitting• Bid assistance

Phase III Engineering• Construction Observation

• Manage contract / contractor• Interact/coordinate with residents• Observe construction • Perform/oversee material testing• Provide SMC required inspections• Complete IDOT paperwork• Troubleshoot issues in field• Provide layout, if necessary• Prepare as-built drawings, if necessary• Range of staff support provided

depending on need

2019 Phase III Engineering• Construction Observation Hours / Fees

• Lincolnshire Creek (3 months)• 274 hours• Fee - $30,000 ($1,500 D.C)

• Crosstown Watermain (3 Months)• 725 hours• Fee = $103,000 ($14,000 D.C)

• Emergency Water Supply (2 months)• 210 hours• Fee = $31,000 ($2,500 D.C)

• Road Resurfacing (2 months)• 372 hours• Fee = $50,000 ($5K D.C)

• Contractor = 1,581 hours / $200,000 (less D.C)• In-house staff = 1,950 hours / $170,000 - $200,000

2020 Proposed Consultant Led Projects

• Crosstown watermain (4-5 months)• Riverwoods Road Bike Path/Westminster

Sidewalk (2-3 months)• Road/Parking lot resurfacing (2 months)• WSR Improvements (1-2 months)

2020 Proposed Staff Led Projects

• All facility improvements (possible consultant or CED assistance)

• All parks improvements• Lighting upgrades• Roadway maintenance projects• Drainage improvements

Benefits of Consultants• Flexibility – add staff as needed

• Right amount of experience depending on task

• Support of other staff

• Experience on similar projects

• Troubleshoot field issues/changes

• Can add staff with special abilities (i.e. structural, drainage, mechanical, watermain, paving, erosion control inspections)

• Support multiple projects

• Risk Management

GENERAL CAPITAL FUND –FACILITIES (TAB FACILITIES)

FLOORING REPLACEMENT VILLAGE HALL - $120,000

• Police Department, downstairs hallways, community room, and board room flooring

• Existing carpet is 26 years old• Facility assessment recommendation• Alternative flooring types to be considered

CAP STONE REPLACEMENT/ BRICK REPAIR VILLAGE HALL - $95,000

• Repairs capstones and bricks due to cracking and spalling

• Executed before more damage occurs

SECURITY IMPROVEMENTS VILLAGE HALL / PWF $120,000

• Keyless Entry at Village Hall and Public Works

• Ability to track access / reduce rekeying door locks

• Security improvements to Village Hall to discourage visitors from accessing open office areas

PUBLIC WORKS PARKING LOT RESURFACING$250,000

• Full resurfacing

• Last done in 2005

• Minor drainage improvements

GENERAL CAPITAL FUND –EQUIPMENT(TAB EQUIPMENT)

SALT BRINE MAKER $75,000• Brine used in anti-icing liquids (useful

at the beginning of a snow event)

• 2018-2019: Village used 25,000 gallons

• Currently using tanker trailer to transport brine from Vernon Township in exchange for salt

• 4 tons of salt needed to make 2,000 gallons of brine (enough to anti-ice all roadways once), compared to 16 tons of salt

• Quicker cleanup. Save time and equipment wear and tear

GENERAL CAPITAL –STORM SEWER & WATER(TAB STORM SEWER & WATER)

VILLAGE-WIDE DRAINAGE STUDY $50,000 (REMAINING)

• Feedback from residents /business owners on flooding issues

• Perform hydrologic and hydraulic modeling to assess Village’s existing stormwater capacity and identify needed system improvements

• Develop and prioritize drainage projects to reduce the risk of future flooding

• Evaluate programs such as overhead sewers, private drainage improvements, and green infrastructure

The study started in 2019 and will be completed in 2020. A total of $150,000 has been budgeted for the study with the expectation that $100,000 will be expended in 2019.

DRAINAGE IMPROVEMENTS$175,000 – LINCOLNSHIRE DRIVE

• New 6" standpipe will allow direct connection to 6" pump

• Discharge via piping system to the Des Plaines River as opposed to hoses

• Addresses deteriorating storm sewer outlet discharging into Des Plaines River at Londonderry Lane / Lincolnshire Drive

GENERAL CAPITAL FUND-PARKS (TAB PARKS)

WHYTEGATE PARK –TENNIS & BASKETBALL COURT RESURFACING $125,000

• Courts last resurfaced in 2004

• Life expectancy of an asphalt resurfacing approximately 15-20 years

• Tennis courts - several surface cracks and separations

• Basketball court - several cracking issues

• South basketball pole leaning and becoming dislodged from the asphalt (potential safety hazard)

RIVERSHIRE PARK FENCE REPLACEMENT - $50,000

• Define path thru Rivershire between Coldstream and Londonderry Lane

• Deter users from storage areas/lift station

RIVERSHIRE PARK FENCE REPLACEMENT - $50,000

NORTH PARK LIGHT UPGRADES$100,000

• Replacement of 19 lights throughout the parking lot and park activity areas

• Lights are 16 years old

• Conversion to LED technology

• Similar to project in 2018 at Village Hall

WESTMINSTER WAY SIDEWALK$64,000

• Sidewalk connection along Westminster Way (Homewood Suites to CDW Center path system)

• Includes Village share of construction and construction engineering

VILLAGE BIKE PATH-WHYTEGATE PARK TO DANIEL WRIGHT$200,000

• New path connection and landscaping

• Includes Village share of construction and construction engineering

NORTH PARK PARKING LOT RESURFACING$340,000• Parking lot constructed with the original park in

2003• Asphalt has reached the end of its useful life• Project deferred from 2019 due to lack of

pavement structure to support resurfacing

ELECTRONIC KIOSK SIGN -$100,000

• Less maintenance

• Flexibility message change

• Eliminates need for Village and groups to purchase signs

• Greater opportunity for use

• Emergency notification

• Update with sign project and new branding

GENERAL CAPITAL FUND –ROADWAYS(TAB ROADWAYS)

SOUTH VILLAGE GREEN PHASE 1 ENGINEERING – $60,000

• Evaluate conditions causing paver brick failures

• Overall goal of re-establishing maintenance responsibilities between the Village and South Village Green condo building owners

ANNUAL RESURFACING PROGRAM• Provides for approximately 1 mile/year of resurfacing

• Relies on contractual and in-house patching to extend life of roadways

• Budget of $400,000-$600,000 annually

• Historically, roadways are resurfaced if part of a watermain project

• Uses $175,000 of MFT annually (expected to increase with gas tax increase)

BRAMPTON LANE RE-SURFACING $275,000

Resurfacing 0.65 miles - Brampton Lane (east of Riverwoods Road)- Brampton Court- Stafford Court

BRAMPTON LANE RE-SURFACING$360,000

Resurfacing 0.7 miles of Brampton (east of Riverwoods Road)

FARRINGTON RE-SURFACING $436,000

Resurfacing of 0.9 miles of Farrington Drive and Farrington Circle

2020 PROGRAM SUMMARY

• 2.2 miles of roadway resurfacing• Maintains work area in the same geographic area• Original Budget = $375,000

Roadways Base: 2020 Proposed Budget

Alt 1: Combining 2020, 2021 Proposed Projects

Alt 2: Combining 2020, 2021 & 2022 Proposed Projects

Brampton (east)/Stafford

$275,000

Farrington $436,000

Brampton (west) $360,000

Grand Totals $275,000 $711,000 $1,070,000

NEXT STEPS

• Develop updated 10-year plan, accounting for drainage/watermain improvements

• Incorporate pavement preservation strategies where appropriate

• Village Board Workshop – Preservation Strategy Recommendations – early 2020 or after drainage study is completed

• Verify MFT increase

GENERAL CAPITAL FUND –VEHICLES(TAB VEHICLES)

GENERAL CAPITAL FUND –MISCELLANEOUS CAPITAL(TAB MISC. CAPITAL)

WATER & SEWER IMPROVEMENTS(TAB Q)

Expenditure Summary

WATER & SEWER IMPROVEMENTS (TAB Q)

Revenue Summary

WATER & SEWER IMPROVEMENTS (TAB Q)

Expenditure Detail

CROSSTOWN WATERMAIN - $2.3M (TAB Q)

WATER & SEWER IMPROVEMENTSWSR WATER QUALITY IMPROVEMENTS - $160,000(TAB Q)

WATER & SEWER IMPROVEMENTSHYDRAULIC MODEL UPDATE -$100,000(TAB Q)

FOLLOW UP ITEMS

OCTOBER 16, 2019BUDGET WORKSHOP

Hotel / Motel TaxMunicipality Local Tax Rate (%)Antioch 5%Bannockburn 5%Barrington 5%Deer Park 5%Fox Lake 5%Grayslake 5%Highland Park 5%Lake County (unincorporated area) 5%Lake Forest 5%Lake Zurich 5%Libertyville 5%Lincolnshire 5%Mettawa 5%Mundelein 5%Riverwoods 5%Vernon Hills 5%Winthrop Harbor 5%Zion 5%Buffalo Grove 6%Deerfield 6%Gurnee 6%Waukegan 6%North Chicago 9.5State hotel tax is 6%. City of Chicago's 11.4 + 6% state = 17.4%

Water RatesMunicipality Billing Period

Residential Water Rate per 1,000 gallons

Residential Sewer Rate per 1,000 gallons

Total Flat Fee Minimum Water Charge

Minimum Sewer Charge

Total Monthly Water,Sewer, Fee Charge per 4,000 gallons

Highland Park Quarterly 3.82$ 1.74$ 5.56$ x x 8.02$ 7.41$ Lake Forest Quarterly 4.60$ 1.16$ 5.76$ x x x 7.68$ Buffalo Grove Bi-monthly 5.12$ 1.25$ 6.37$ x x x 12.74$ Gurnee Bi-monthly 5.01$ 1.56$ 6.57$ 14.45$ x x 20.39$ Northbrook Quarterly 5.88$ 1.26$ 7.14$ x x x 9.52$ Lake Bluff Quarterly 7.42$ 1.10$ 8.52$ x x x 11.36$ Bannockburn (North Shore Water Rec) Quarterly 9.02$ 1.94$ 10.96$ 2.50$ x xDeerfield Monthly 6.68$ 4.64$ 11.32$ x 13.37$ 9.30$ 45.28$ Libertyville Bi-monthly 5.48$ 6.05$ 11.53$ 35.48$ x x 40.82$ Northfield Quarterly 8.70$ 3.45$ 12.15$ x x x 16.20$ Lincolnshire Monthly 6.50$ 6.18$ 12.68$ x 26.00$ 24.72$ 56.72$ Bannockburn (Deerfield Sanitary) Quarterly 9.02$ 6.52$ 15.54$ 2.50$ x xLake County 1 (General Services) Monthly 4.80$ 6.83$ 11.63$ x x x 46.52$ Lake County 2 (JAWA) Monthly 6.28$ 6.83$ 13.11$ x x x 52.44$

Water RatesWater & Sanitary Sewer

2019 2020 Proposed

% Change 2020 Alternate

% Change

Village Water $6.50 $6.83 5% $6.83 5%

Village Sewer 6.18 $6.44 4.2% $6.49 5%

TOTAL $12.68 $13.26 +$0.58/1,000 gallons

$13.32 +$0.64/1,000 gallons

Out Village Water

$7.15 $7.51 5% $7.51 5%

Out VillageSewer

$6.80 $7.09 4.2% $7.14 5%

TOTAL $13.95 $14.60 +0.65/ 1,000 gallons

$14.65 +0.70/1,000 gallons

• 2020 Proposed = $2.32/month ($27.84/annually) increase in minimum bill• 2020 Alternate = $2.65/month ($30.72/annually) increase in minimum bill• Average household (7,000 gallons per month) = $4.48/month increase ($53.76

annually)

Property Tax

• Maintain previous direction?•Lesser of 5.0% tax levy amount or .241 rate

Police Pension Fund 2020 Contribution/Funding Policy• 2019 Property Tax (2020 Village

Contribution)• Current Funding Policy: $959,428• Police Pension Board Requested: $1,030,790• Difference of $71,362

• Adoption of Pension Funding Policy• Actuarial Assumption change request – new mortality table

• Implementation timing

Police Pension Fund FY 2018 Rate of FundingDOI 2019 Biennial Pension Report: Lincolnshire Police Pension ranked 12th overall. Considering funds with $20 - $25 million actuarial funding value, Lincolnshire Police Pension is ranked 2nd out of 37 funds.

Financing Options Pay as You Go

Illinois Finance Authority

Illinois Revolving Loan Fund (Water, Sanitary, Storm Sewer)

Bank Loan

Use of Reserves (in house loan)

Police Pension Loan

QUESTIONS?

THANK YOU

Category Range MilesExcellent 85-100 3.54Very Good 75-84 8.49Good 65-74 2.38Fair 50-64 14.90Poor 35-49 5.85Very Poor 20-34 0.33Fail 0-19 0.00

Totals 35.50

PAVEMENT REHABILITATION AND PRESERVATION METHODS

Crack-Filling along edges of pavement at curb line (not in program currently)

Crack sealing (currently corporate center only)• Up to $25K/mile for residential depending conditions)• Can extend life of pavement 4-7 years• Apply 4-6 years after resurfacing• Potentially can delay need for patching

Micro surfacing (currently corporate center only)• Approximately $13,000/mile• Extends life 2-5 years• Residential streets would be applied year following resurfacing• Potentially can delay need for patching

Surface & Full-Depth Patching (current program)Full-Depth Resurfacing (current practice)Reconstruction (current practice only where necessary)

EXCELLENT / VERY GOOD RATING

96 82

GOOD / FAIR RATING

76 61

POOR / VERY POOR RATING

59 39

WHAT YOU SEE CAN BE DECEIVING

61 88

Intermittent surface problems do not dictate overall road

performance

PROGRAM SUMMARY• Fox Trail, Bulb, Culdesac, Pheasant Row, Fairfax,

Deer Run (Current)

• Brampton E, Stafford, Brampton Courts

• Farrington Dr, CL, CT

• Marriott, Oxford N of Lancaster

• Barclay (22 to Knights), Heathrow

• Knightsbridge

• Bond/Tower

• Oakwood, Cedar, Hickory, Elmwood

• Old Mill Road/Old Mill Circle