TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 21, 2017
COMMITTEE ON BUDGET AND EMPLOYMENT
Mr. David St. Pierre, Executive Director
Title
Authority to Amend the Adopted 2018 Budget
Body
Dear Sir:
The attached Changes to the Adopted 2018 Budget (BF-21 budget forms) are submitted for your consideration as amendments to the 2018 Adopted Budget at the Board Meeting of December 21, 2017. Requested changes to appropriations are summarized below:
FUND DEPARTMENT NET CHANGE
CONSTRUCTION $0
CAPITAL IMPROVEMENTS BOND $638,000
STORMWATER MANAGEMENT ($400,000)
The 2018 total appropriation request is $1,148,768,286, an increase of $238,000 from the Adopted Budget. Compared to the 2017 total adjusted appropriation of $1,142,749,813, this represents an increase of $6,018,473, or 0.5 percent.
The total tax levy request for the 2018 Budget is $621,317,594, unchanged from the Adopted Budget. Compared to the 2017 total adjusted tax levy of $599,285,372, this represents an increase of $22,032,222, or 3.7 percent.
The Corporate Fund total appropriation request is $368,026,900, unchanged from the Adopted Budget. Compared to the 2017 Corporate Fund total adjusted appropriation of $368,925,800, this represents a decrease of $898,900, or 0.2 percent.
The Construction Fund total appropriation request is $26,080,600, unchanged from the Adopted Budget. The net zero change in appropriation is due to the revised scope and cost estimate for a project to rehabilitate raw sewage pump rotating assemblies, offset by the favorable award of a project to furnish, deliver, and install a boiler for the equipment garage at the Calumet WRP and the reprioritization of plant projects at various locations. Compared to the 2017 Construction Fund total adjusted appropriation of $34,450,400, this represents a decrease of $8,369,800, or 24.3 percent.
The Capital Improvements Bond Fund total appropriation request is $312,982,900, an increase of $638,000 from the Adopted Budget. The increase is due to the movement of the pilot study for investigating technology to address basement backups from the Stormwater Management Fund to the Capital Improvements Bond Fund and to correct the funding amount required for the Flossmoor flood-prone acquisition project. An additional net zero change in appropriation is due to the reclassification of commitment items for a project to procure a plant information management system for the District’s water reclamation plants. Compared to the 2017 Capital Improvements Bond Fund total adjusted appropriation of $354,625,600, this represents a decrease of $41,642,700, or 11.7 percent.
The Stormwater Management Fund total appropriation request is $65,480,200, a decrease of $400,000 from the Adopted Budget. The decrease is due to the movement of the pilot study for investigating technology to address basement backups from the Stormwater Management Fund to the Capital Improvements Bond Fund. Compared to the 2017 Stormwater Management Fund total adjusted appropriation of $45,800,100, this represents an increase of $19,680,100, or 43.0 percent.
The Bond Redemption & Interest Fund total appropriation request is $256,304,186, unchanged from the Adopted Budget. Compared to the 2017 Adjusted Appropriation of $228,825,813, this represents an increase of $27,478,373, or 12.0 percent.
The Retirement Fund total appropriation request is $89,604,000, unchanged from the Adopted Budget. Compared to the 2017 Retirement Fund adjusted appropriation of $79,505,000, this represents an increase of $10,099,000, or 12.7 percent.
The Reserve Claim Fund total appropriation is $30,289,500 unchanged from the Adopted Budget. Compared to the 2017 Reserve Claim Fund adjusted appropriation of $30,617,100, this represents a decrease of $327,600, or 1.1 percent.
The total number of positions requested for 2018 is 1,966, unchanged from the Adopted Budget, which is a net decrease of 76 positions from 2017. The decrease is driven primarily by a net decrease of 50 FTEs in the Human Resources Department due to changes in the apprentice program. Also, there are decreases of 18 FTEs in the Maintenance & Operations Department as realignment of staff organized by expertise rather than location continued, four FTEs in the Engineering Department, two FTEs in General Administration, two FTEs in the Information Technology Department, and one FTE in the Law Department. These decreases are offset by a net increase of three FTEs in the Monitoring and Research Department. There is a decrease of two FTEs in the Stormwater Management Fund from the 2017 budgeted FTEs.
Revised Tentative Budget pages 8-10 present changes to the 2018 appropriations, along with the comparative statement of tax rates and account summary comparison changes.
Revised Tentative Budget page 12 presents the revised 2016-2018 Summary of Revenue, Expenditures, and Net Assets Appropriable. Revised Tentative Budget page 13 presents the revised 2018 Budgeted Summary of Revenue and Expenditures. Revised Tentative Budget page 14 presents the revised 2017 Estimated Summary of Revenue and Expenditures.
Revised Tentative Budget pages 15-16 present the revised Capital Improvements Bond Fund Estimated Balance Sheet and Appropriable Revenue.
Revised Executive Director’s Recommendations page 85-86 present the revised 2017-2018 Corporate Fund Estimated Balance Sheet and Appropriable Revenue.
Revised Executive Director’s Recommendations page 96 presents the revised 2017-2018 Stormwater Management Fund Estimated Balance Sheet.
The project lists for the Construction Fund, the Capital Improvements Bond Fund, and the Stormwater Management Capital Improvements Bond Fund, Tentative Budget pages 49-50A and 53-55, have been revised to reflect project changes.
The attached BF-21 budget forms (pages 1-3) detail all requested changes in appropriation.
The financial schedules for the Final Adopted and Amended Budget will be revised to adjust the departmental appropriations to include allocation of the general salary adjustment for non-represented employees approved at the budget adoption on December 14, 2017.
The Executive Director’s Recommendations Budget and the Tentative Budget, which include all the budget-related Ordinances in their entirety, and the Report of the Committee on Budget and Employment are available for review on the District’s website, www.mwrd.org .
Requested, Eileen M. McElligott, Administrative Services Officer, SAR
Respectfully Submitted, Kari K. Steele, Chairman Committee on Budget and Employment
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for December 21, 2017
Attachments
Revised Tentative Budget pages 8-10, 12-16, 49-50A, 53-55, dated December 15, 2017
Revised Executive Director’s Recommendations Budget pages 85-86, and 96, dated December 15, 2017
BF-21 pages 1-3, dated December 15, 2017