Highlights

Review of Budget Timeline May/June – Budgets developed in detail with

explanation & justification for each line item June/July – Budgets reviewed by Finance Advisory

Group for reasonableness & consistency July – Budgets reviewed by standing committees August – Budgets fine tuned and reviewed again by

standing committees September 30 – Final budget presented to COW October 14 – Budget approved for public display October 23 – Budget placed on public display November 10 – Budget adopted & tax levies approved

Highlights

Budget Category

2014 Amended

Budget 2015

Draft Budget

Total $ Change in

Budget

Total % Change in

Budget General Fund 80,917,307 83,191,630 2,274,323 2.8%Special Revenue Funds 180,153,376 174,819,310 (5,334,066) -3.0%Total County Budget 261,070,683 258,010,940 (3,059,743) -1.2%

Kane County Draft Budget 2015

Overall Budget

Guiding Principals for Revenue No property tax increase: Maintain total County

property tax levy at same level for 3rd year in a row Assume recommended user fee increases will be

approved for offices of County Clerk, Recorder and Sheriff, thereby increasing user fee revenue to more adequately recover cost of services provided

Maximize return on investment without risking principal

Estimate revenue conservatively

No Property Tax Levy Increase

Fund Fund Name 2011

Budget 2012

Budget 2013

Budget 2014

Budget 2015

Budget 000 General Fund 31,730,000 31,863,147 31,470,802 33,012,567 33,012,567 010 Insurance Liability 3,109,343 3,740,764 3,303,036 2,982,462 2,982,462 110 Illinois Municipal Retirement 5,888,750 6,265,000 7,072,882 6,796,568 6,796,568 111 FICA/Social Security 3,218,000 3,315,000 3,382,434 3,433,332 3,433,332 300 County Highway 5,010,909 5,010,909 5,010,909 5,010,909 5,010,909 301 County Bridge 312,695 312,695 312,695 312,695 312,695 303 County Highway Matching 65,125 65,125 65,125 65,125 65,125 350 County Health 1,972,455 1,972,455 1,972,455 1,972,455 1,972,455 380 Veterans' Commission 304,905 304,905 305,400 305,400 305,400 610 Capital Debt Service 2,515,938 1,002,000 995,775 - - Total County Property Tax Levy 54,128,120 53,852,000 53,891,513 53,891,513 53,891,513

Change Over Prior Year 3.5% -0.5% 0.1% 0.0% 0.0%

Property Tax Levies for County

Additional Revenue from Recommended User Fee Increase

General Fund Impact

Additional Revenue

Recommended by Office

County Clerk 242,000 Sheriff 136,720 Adult Corrections 9,000 Recorder 325,000 Total General Fund Impact 712,720

Special Fund ImpactCounty Clerk Vital Records Automation Fun 32,000 Graphic Information System Fund 195,000 Recorder's Automation Fund 455,000 Total Special Fund Impact 682,000

Overall Debt Service No new debt Debt reduced by $13,720,000

Interest on debt reduced by $458,655

Outstanding Debt BOY $61,325,000 Principal Payments $13,720,000 Outstanding Debt EOY $47,605,000

Overall Debt Service (Cont.) Meets County debt service requirements according to pre-

established debt service schedules Includes $2,454,052 transfer from General Fund of Income Tax

Revenue pledged to service 2013 Bond Issue Includes $805,998 transfer from Grand Victoria Casino Fund to

service portion of 2013 Series Bond that refinanced JJC Series 2002 Bonds

Includes $3,499,000 transfer from Motor Fuel Tax Fund to service Series 2004 Bonds

Includes $891,234 of reimbursements to service Recovery Zone Bond payments

Includes $8,329,011 draw down of cash-on-hand of RTA Sales Tax Debt Service Fund for final payment of Series 2009B Bonds

Overall Salary & Wage Budget New headcount limited to personnel required to maintain

level of services and comply with mandated staffing levels No pay increase for elected officials No budgeted wage increases for union employees for which

there is no collective bargaining agreement in place Wage increases budgeted for union employees according to

collective bargaining agreements Increase salary & wage budget for non-union employees by

2%, allowing manager discretion in how it will be allocated 2nd Half of market parity increase included for Judiciary &

Court Services totaling $88,723

Additional Headcount Included

Fund Department Position Salary Benefits

Total Salary & Benefits

General Fund Auditor Admin Assistant - part time 21,840 11,406 33,246 General Fund Public Defender Receptionist 28,400 25,338 53,738 General Fund Court Services Youth Counselor - mandated 41,110 14,811 55,921 General Fund Court Services Youth Counselor - mandated 41,110 14,811 55,921 General Fund Court Services Youth Counselor - mandated 41,110 14,811 55,921 General Fund Court Services Youth Counselor - mandated 41,110 14,811 55,921 General Fund Court Services Adult Redeploy Intiative - grant funded 40,248 19,985 60,233 General Fund Court Services Adult Redeploy Intiative - grant funded 40,248 14,616 54,864 General Fund Court Services Adult Redeploy Intiative - grant funded 40,248 9,116 49,364 General Fund Court Services Adult Redeploy Intiative - grant funded 45,000 29,098 74,098 Subtotal General Fund 380,424 168,804 549,228

Insurance Liability State's Attorney Assistant State's Attorney - Civil Division 63,000 33,175 96,175

Total 443,424 201,979 645,403

Overall Health & Dental Budget Maintain County’s self insured health insurance status Seek lowest cost of medical & dental insurance while

maintaining comparable benefits Increase County health insurance contribution by

6.2%, the lowest negotiated rate for current BCBS plan Decrease County dental insurance contribution by 8%

assuming County will adopt Guardian as new dental insurance provider

Assume separate wellness benefit expense will be eliminated by utilizing BCBS wellness program

Overall IMRF Budget No increase to property tax levy Since we currently have a reserve of 1 year’s worth of payments

and only need a reserve of 7 months, utilize 10% of excess reserve to cover increased cost of IMRF resulting from salary and wage increase - $289,011

Honor County’s commitment to lowering unfunded pension liability by maintaining higher than required contribution rates: Maintain IMRF contribution rate at 11.19%, even though

required contribution rate is 10.24% Maintain County SLEP contribution rate at 21.30%, even

though required contribution rate is 20.30%

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

2014 2015 2016 2017 2018

IMRF Fund Balance

Beg Year Balance

7 month's Expense

Draw Down 10% of Excess Reserve

Overall FICA Budget No increase to property tax levy Since we currently have a reserve of 1 year’s worth of

payments and only need a reserve of 7 months, utilize 10% of excess reserve to cover increased cost of FICA resulting from salary and wage increase - $165,069

Draw Down 10% of Excess Reserve

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

2014 2015 2016 2017 2018

FICA Fund Balance

Beg Year Balance

7 month's Expense

Highlights

General Fund Revenue Revenue Type

2014Amended Budget

2015Draft Budget

Change in Budget Explanation

Property Tax 33,012,567 33,012,567 - Flat Back Taxes Interest & Penalty 1,600,000 1,600,000 - Flat Sales Tax 13,213,000 14,215,000 1,002,000 Increased to 104% of 2012 level Income Tax 4,950,000 5,620,000 670,000 Increased to 104% of 2012 level Local Use Tax 917,000 968,000 51,000 Increased to 104% of 2012 level Personal Property Replacement Tax 1,443,000 1,702,000 259,000 Per IDOR forecast Estate Tax 125,000 125,000 - Flat

User Fees 13,816,826 13,649,045 (167,781) Reduction in volume offset by user fee increases

Licenses 153,500 183,000 29,500 Increase in Marriage & Liquor License revenue

Reimbursements 6,945,722 7,817,167 871,445 Primarily US Marshal Board & Care and Probation Salary Reimbursements

Fines 1,544,200 1,561,375 17,175 Increase in State's Attorney & Eviction Fines offset by decrease in Bond Forfeiture Fines

Grants 841,613 599,000 (242,613) No Help America Vote Act, IL Voter Registration or external Community Outreach grants

Permits 462,000 467,000 5,000 Increase in Gathering Permits Investment Income 125,200 245,200 120,000 Increased return on investment Rental Income 76,214 64,358 (11,856) Elimination of WIA office rent

Transfer From Other Funds 1,569,822 1,282,077 (287,745)

$300,000 less transferred from Special Reserve offset by increase transfer to IT from Kane Comm

Miscellaneous Income 121,643 80,841 (40,802) Total Revenue by Type 80,917,307 83,191,630 2,274,323

Department

2014 Amended

Budget

Change in Cost of Payroll

Change In Scheduled

Debt Service Payments &

Transfers

Change in Cost of

Health & Dental

InsuranceChange in

Other Costs

One Less Election

Budgeted

Total Change in

Budget

2015Draft

Budget010 County Board 1,317,246 19,547 0 (298) (64,550) 0 (45,301) 1,271,945040 Finance 759,480 10,632 0 31,571 0 0 42,203 801,683060 Information Technologies 3,495,255 28,665 0 5,403 28,267 0 62,335 3,557,590080 Building Management 4,514,622 91,771 0 10,763 204,554 0 307,088 4,821,710120 Human Resource Management 414,210 6,688 0 (10,288) (1,179) 0 (4,779) 409,431140 County Auditor 247,157 19,486 0 2,185 53,840 0 75,511 322,668150 Treasurer/Collector 574,375 9,770 0 16,828 0 0 26,598 600,973170 Supervisor of Assessments 1,212,325 16,009 0 28,009 53,507 0 97,525 1,309,850190 County Clerk 2,880,111 48,864 0 21,173 20,665 (551,598) (460,896) 2,419,215210 Recorder 871,660 13,241 0 6,850 0 0 20,091 891,751230 Regional Office of Education 304,474 0 0 1,635 0 0 1,635 306,109240 Judiciary and Courts 2,712,649 102,629 0 (29,100) 28,700 0 102,229 2,814,878250 Circuit Clerk 4,327,959 (11,083) 0 65,462 5,954 0 60,333 4,388,292300 State's Attorney 5,010,191 76,681 0 (98,377) (18,320) 0 (40,016) 4,970,175360 Public Defender 3,362,270 82,658 0 92,597 0 0 175,255 3,537,525380 Sheriff 26,187,602 317,944 0 (13,217) (128,354) 0 176,373 26,363,975420 Merit Commission 96,106 1,332 0 0 3,750 0 5,082 101,188430 Court Services 10,983,247 554,823 0 187,408 (319,475) 0 422,756 11,406,003490 Coroner 835,542 4,706 0 13,818 0 0 18,524 854,066510 Emergency Management Services 191,572 3,046 0 395 3,000 0 6,441 198,013690 Development 1,550,778 (11,361) 0 (20,771) (18,950) 0 (51,082) 1,499,696760 Debt Service 1,466,816 0 (439,359) 0 0 0 (439,359) 1,027,457800 Other- Countywide Expenses 6,820,773 (2,201) 1,129,650 48,478 (143,709) 280,000 1,312,218 8,132,991900 Contingency 780,887 0 0 0 403,559 0 403,559 1,184,446

Grand Total 80,917,307 1,383,847 690,291 360,524 111,259 (271,598) 2,274,323 83,191,6302.9% 19.2% 4.1% 0.6% -24.8% 2.8%% Change in Relation to 2014 Budget

General Fund Expenditures

General Fund Salary & Wage Budget Notes Total Salary & Wage Increase 1,383,847 Less increase for additional headcount (380,424) Less parity increase (88,723) Increase due to collective bargaining agreements for union employees and 2% increase for non-union employees, excluding elected officials. No increase has been budgeted for unions for which there is no settled CBA contract (Adult Corrections, Coroner, etc…)

914,700

Average increase excluding additional headcount and parity increase

1.9%

General Fund Health & Dental Budget Notes Total Health & Dental Increase 360,524 Less increase for additional headcount (82,638) Increase due to difference in rates budgeted each year as well as change in coverage chosen by employees 277,886 Average increase 3.1%

DepartmentChange in

Budget Explanation010 County Board (64,550) Reduction to Community Outreach program040 Finance 0 Flat060 Information Technologies 28,267 Increase to conference & training080 Building Management 204,554 Increase to natural gas, water, sewer, janitorial service & maintenance120 Human Resource Mngmt (1,179) Reduction to employee training140 County Auditor 53,840 Transition audit of Sheriff's Office and Vulnerability & Penetration Test of IT150 Treasurer/Collector 0 Flat170 Supervisor of Assessments 53,507 Publication by Supervisor of Assessments of all parcels is required in 2015190 County Clerk 20,665 "Vote Mobile" repairs, Laserfiche training, repairs to computer equipment210 Recorder 0 Flat230 Regional Office of Education 0 Flat240 Judiciary and Courts 28,700 Increase to Spanish language interpreters & pyschological/psychiatric services250 Circuit Clerk 5,954 Supervisor management training & publication service notices300 State's Attorney (18,320) Reduction in witness costs and training360 Public Defender 0 Flat380 Sheriff (128,354) Reduction to prisoner board & care, medical/dental/hospital services, repairs420 Merit Commission 3,750 Background checks is new expense430 Court Services (319,475) Reduction to electronic/GPS monitoring, juvenile board & care, grant expense490 Coroner 0 Flat510 Emergency Management 3,000 Employee training is new expense690 Development (18,950) Reduction to project administration services and repairs & maintenance800 Other-Countywide Expenses (143,709) Transfers to IMRF/FICA for collective bargaining agreements in 2014, not 2015900 Contingency 403,559 Restored to 1.4% of budget (original 2014 level + $59,466 = $1,184,446)Grand Total 111,259

General Fund Other Expenditures

Highlights

Special Revenue Fund Sources of Revenue Consist of: Revenue currently collected for specific purpose Cash on Hand representing accumulation of past

revenue collections for a specific purpose Investment Income earned on cash on hand Since revenue is normally collected in advance to fund

Special Revenue Fund expenditures, Cash on Hand becomes a normal source of funding for Special Revenue Funds

See following chart indicating use of Cash on Hand

Projected Cash Balances FY13

Actual EOY Cash Balance

FY14 Projected

Change in Cash Balance

FY14 Projected EOY Cash Balance

FY15 Budgeted

Change in Cash Balance

FY15 Budgeted EOY Cash Balance

General Operating ReservesGeneral Operating 63,344,974 593,773 63,938,747 18,494 63,957,241 IMRF 8,087,010 (1,495,000) 6,592,010 (289,011) 6,302,999 FICA 3,863,270 - 3,863,270 (165,069) 3,698,201 Health Insurance - 1,600,000 1,600,000 128,731 1,728,731 Total General Operating Reserves 75,295,254 698,773 75,994,027 (306,855) 75,687,172

Special Purpose FundsSpecial Revenue Funds 21,827,524 (1,928,623) 19,898,901 (2,503,298) 17,395,603 Grand Victoria Casino 12,512,201 (2,325,984) 10,186,216 (2,195,105) 7,991,111 Judicial Technology (CMS) 4,915,195 (372,267) 4,542,929 (3,770,850) 772,079 Farmland Preservation 2,080,797 (124,100) 1,956,697 (814,500) 1,142,197 Capital Funds 12,260,736 (3,748,008) 8,512,728 (5,742,301) 2,770,427 KDOT 76,265,339 (32,571,729) 43,693,610 (26,524,034) 17,169,576 Impact Fees 10,334,700 (1,502,098) 8,832,602 (1,201,875) 7,630,727 SSA / SBA 1,065,208 - 1,065,208 (117,558) 947,650 Debt Service Funds 17,153,606 (1,215,160) 15,938,446 (8,303,370) 7,635,076 Enterprise Funds 15,815,120 (2,290,849) 13,524,272 (2,054,551) 11,469,721 Total Special Purpose Funds 174,230,426 (46,078,818) 128,151,608 (53,227,442) 74,924,166

Total Projected Cash Balances 249,525,680 (45,380,045) 204,145,635 (53,534,297) 150,611,338

Supporting Documents Quick Reference Guide for Special Revenue Fund

Budget indicating key points for each fund Projected Fiscal Year End Cash Balances for each fund Schedule of Recommended User Fee Increases

detailing which user fees will change in which office: the current fee, how much it will increase, the new fee, and the additional revenue generated by fund

Mandate Book detailing the mandated functions of each County office and department

Kane County 2015 Draft Budget Report

Next Steps Budget to be approved to be placed on public display at

October County Board meeting Resolutions establishing new user fees will be

submitted by the County Clerk, Recorder & Sheriff at their respective standing committees

A resolution clarifying that the 2% non-union salary increase included in the 2015 budget does apply to executive directors and the Supervisor of Assessments will be submitted at the next Finance Committee

To Be Approved at November County Board Meeting: Ordinance adopting 2015 budget Tax Levies Resolutions increasing user fees for County Clerk’s

Office, Recorder’s Office & GIS, and Sheriff ’s Office Resolution clarifying increase for executive directors

and Supervisor of Assessments

Ongoing Pursuit of Revenue Enhancements Encourage passage of Illinois State Statute allowing

Court Security user fee to be based on cost of service study (potential of additional $640,00 in revenue)

Consider Sheriff ’s proposal for new burglar alarm fees Negotiate new room & board rates for other counties’

use of Juvenile Justice Center based cost of service Perform cost-of-service study for permits and consider

increasing permit fees Negotiate chargeback of operating costs to Regional

Office of Education (potential recovery of $70,000)

Ongoing Pursuit of Cost Saving Opportunities for Healthcare Consider implementation of:

High Deductible PPO with Healthcare Savings Account Pharmacy Utilization Management Program

Encourage/Promote utilization of: Wellness Program Generic drugs Mail order pharmacy for maintenance medication New BCBS Benefit Value Advisor New BCBS Blue Choice PPO network (coming 2015)

Acknowledgements Leadership of County Chairman and Board members Collaborative effort by elected officials, department

heads and their staff in trimming expenditures and enhancing revenues to generate a balanced budget

Hard work and dedication of Finance Department staff in assembling the thousands of details included in the budget and providing the necessary analysis

Citizens of Kane County for whom we strive to be good stewards of the resources they provide through this open & transparent budget process.