Comprehensive Annual Financial Report (CAFR)
View the CAFR-2008-2009 for the year ended June 30, 2009.
Annual Fire Pension Fund Report
View the Annual Fire Pension Fund Report for the year ended June 30, 2009.
Quarterly Financial Report
- View the Third Quarter Financial Report for fiscal year 2009-2010.
The Finance Department publishes the voucher report every two weeks. This reports shows payments the City has made to vendors. View the current voucher report.
The Budget Process
While the City’s budget year begins July 1, the City begins to develop the budget in November. The City Council adopts the finalized Financial Plan and Annual Budget in early June of each year. The information on this page reflects the Adopted Financial Plan for FY 2009/2010.
Financial Planning and Process
Each year, the City Council adopts Financial Policies (please see the link below) to guide development of the annual Financial Plan. Review and approval of a Financial Plan is one of the City Council’s most important roles. The information available on this page, taken from the Financial Plan, will present a better picture of the City’s current financial situation, and its responses to the challenging economic trends observed in recent years. Here you will also find the details of the City’s continued efforts to finance basic municipal services as well as ambitious community improvements, while dealing with substantial growth.
As seen below, Champaign’s most significant revenue sources are Sales Tax (24%), Property Tax (19%), and Income Tax (6%). “Other taxes” includes hotel/motel tax and food & beverage tax, while “miscellaneous” includes grants, bond proceeds, miscellaneous fines and fees, and other miscellaneous revenues.
Revenue Sources for All City Funds FY2009/10 (budget year)
Sales taxes remain the major source of revenue for the City’s General Operating Fund and for the City’s budget as a whole, providing almost 50% of General Fund revenues and 30% of total revenues excluding bond proceeds. With no sales tax growth, the City loses the $300,000 that it normally gains for each 1% of growth in that revenue. The sales tax receipts correlate closely with the economic situation, so this revenue source will recover only when the economy recovers.
The Equalized Assessed Valuation (EAV) in the City has continued to increase, with the EAV for the 2009 tax levy almost 6% higher than last year. This may seem surprising due to the construction slowdown and number of houses on the market. However, Champaign did not have a true “boom” as other communities throughout the country, so property values remained close to sustainable levels.
The City Finance staff proposes expenditures of $114.68 million for FY2009/10. The most significant of these expenditures are City Operations (51%) and Community Improvement (26%). To clarify these categories, City Operations expenditures cover basic governmental services, including police and fire protection, library services, and maintenance of streets and sewers. Community Improvement expenditures relate to infrastructure maintenance, neighborhood conservation, and economic development. The Internal Services category includes expenditures related to the City’s fleet of motor vehicles and engineering associated with capital improvement projects. It also consists of expenses for insurance premium payments, judgments and claims against the City, and Workers’ Compensation costs.
Capital Improvements Projects
Capital improvement expenditures are $33 million for FY 2009/10, and $196 million for the ten-year planning period.
- East Side Streetscape Phase 2 ($2.8 million): This project will remove and replace existing substandard sidewalk and curb & gutter, to install new streetlights along University Avenue from Third Street to Wright Street and along First Street from Logan Street to Green Street. The project will also include geometric improvements and the installation of new traffic signals at the intersection of Fourth Street and University Avenue and an asphalt overlay of University Avenue.
- Curtis Road (Wynstone to Wesley) Improvement (total cost over $15 million including State and other local resources): This will improve Curtis Road, from Wynstone Drive in Champaign to Wesley Avenue in Savoy, to urban arterial standards. When completed in late 2010, the improved corridor will link the new interchange on Interstate 57 with US Route 45 (Neil Street) in Savoy.
- Windsor and First Street Intersection Improvement ($950,000): Will widen the north leg of the First Street and Windsor Road intersection from two to four lanes to accommodate traffic increases both realized and anticipated as a result of the University’s South Research Park expansion.
- Boneyard Lower 2nd Street Reach (Scott Park Phase – $3 million, Springfield Ave. to University Ave. Phase – $12 million): To develop detention, drainage improvements, and park-like amenities along the Boneyard Creek along 2nd Street between Springfield and University and also in Scott Park.
John Street Storm Sewer (Neil St. to Willis Ave.) – $3.8 million. Remove and replace the existing storm sewer, line the sanitary sewer and a demonstration rain garden. The project is in response to flooding problems in the watershed. The project has been submitted to IEPA for possible Federal stimulus funding.
Major Maintenance and Rehabilitation Projects
- Street Maintenance Projects ($3.9 million): Some of the major projects this year include an overlay of Neil Street from North Street to Edgebrook Drive and Olympian Drive from Mattis to the east ramps of the Interstate 57 interchange. Other arterial street work includes concrete patching on Windsor Road east of Neil Street and on Devonshire Drive east of Prospect Avenue. In addition, this funding includes additional funding for local street rehabilitation, with asphalt and concrete work in the Garden Hills Neighborhood and concrete work on Newbury Drive.
- Kirby Avenue Overlay ($1.6 million; includes $939,790 of Federal American Recovery and Reinvestment Act (ARRA) stimulus funds): This project will improve Kirby Avenue, between Mattis Avenue and just east of Prospect Avenue, with patching, median and curb improvements, surface milling, and asphalt resurfacing. Included in the project is about 900 feet of surface milling and resurfacing on Prospect Avenue, north and south of the Kirby-Prospect intersection. The Illinois Department of Transportation will bid out the project in November with construction expected to begin in June 2010.
- Sanitary Sewer Rehabilitation, Septic Elimination and Backup Relief ($2.2 million): This project will identify, repair, and replace damaged and deteriorated pipes and manholes in the City’s sanitary sewer system, including addition of short extensions to eliminate septic systems and shared services. This project also funds overhead sewer installations to prevent sewer backup in basements. This year’s project includes expenditures for concrete sewer lining submitted for stimulus funding consideration.
- Channel, Storm Sewer Maintenance and Rehabilitation ($2.1 million): This project will clean and televise storm sewers, repair and replace deteriorated pipes in the City’s storm sewer system, maintains stream channel vegetation, and repair streambank erosion.
- City Building Brick Rehabilitation ($850,000 over the next two years): This project will replace deteriorated window lintels, replace the bricks on the building where “stair step” cracking has occurred, and replace deteriorating walls and roof caps that are part of the building roof system.
The City occasionally issues debt pursuant to its Debt Management Policy, which was adopted by the City Council and revised most recently in 2001. The City also makes internal loans from one fund to another for relatively short periods of time pursuant to that policy. The following paragraphs describe the City’s outstanding debt and plans for future debt issuance.
Bonded General Obligation Debt
The City issued $9.28 million in general obligation debt in May 2009 to refund the debt issued in 1998 to finance the Police Facility and in 1999 to finance the Lower Boneyard Creek Channel. The lower interest rate on the 2009 bonds will save the City an estimated $650,000 over the next eight years. The principal amount outstanding as of June 30, 2010, will be $7.91 million.
Other outstanding general obligation debt is as follows:
- $12.7 million in December 2007 and January 2008 to finance a 600-space public parking deck. The original principal amount of the debt will remain outstanding as of June 30, 2010.
- $7.025 million in 2007 to finance the extension of Olympian Drive and to refund $3.15 million of the $4.9 million bonds issued in 2004. The original principal amount of the debt will remain outstanding as of June 30, 2010.
- $24.015 million in 2005 to finance a majority of the costs of the new Main Library building. The principal amount outstanding as of June 30, 2010, will be $22.7 million.
- $6.815 million in 1998 to finance the Police Facility expansion. The bonds were refunded in FY 2008/09, as described above, so there is no outstanding principal as of June 30, 2010.
- $8 million in 1999 to finance the Lower Boneyard Creek Channel. The bonds were refunded in FY 2008/09, as described above, so there is no outstanding principal as of June 30, 2010.
- $2.915 million in 2004 to finance acquisition of the site of the former Burnham Hospital (series 2004A bonds). The site lies in the North Campus Area Tax Increment Financing (TIF) District, established by the City in 2002 to finance redevelopment of the area. The original principal amount of the debt will remain outstanding as of June 30, 2010.
- $4.9 million in 2004 to fund environmental remediation, building demolition, and other costs related to redevelopment of the former Burnham Hospital site (series 2004B bonds). The principal amount outstanding as of June 30, 2010, will be $1.75 million.
Debt Financing Plans
The City plans to issue approximately $20.5 million of general obligation bonds in 2009 for improvements to the 2nd Street Reach of the Boneyard Creek. This would increase flood protection to the 100-year storm event level in the North Campus Area, Campustown, and parts of the University of Illinois campus. The City is considering increasing the bond issue by $3 million to also finance the installation of a new storm sewer in an older part of the City that experiences localized flooding during heavy rain. Funds currently budgeted in the Stormwater Management Fund will be used to pay debt service on these bonds.
The City also plans to issue approximately $15.2 million of general obligation bonds in 2011 to expand its Public Works facility. The City has not currently identified a specific revenue source for the payment of debt service on this debt, but would identify a source prior to the issuance of the debt.
Total expenditures for all funds are $114.68 million, not including interfund transfers. This is a decrease of $22 million, or 16% from estimated expenditures for the current year. The decrease results primarily from the overall expenditure reductions and from completion of some capital projects this year, including the Hill Street Parking Deck and the Olympian Drive extension. Revenues are expected to total $122.86 million, not including transfers, which includes bond proceeds of about $20 million to finance improvements to the 2nd Street Reach of the Boneyard Creek.
Proposed FY 2009/10 expenditures for the General Fund, which funds most basic municipal services, are $68.92 million including proposed supplemental budget requests; revenues are budgeted at $67.36 million. (Proposed expenditures exceed revenues slightly due to projects funded with savings and other one-time funds.) The proposed financial plan includes a fund balance of about $7.88 million, which is 17.33 % of expenditures excluding transfers. This includes an undesignated fund balance of 10.82%, which exceeds the 10% policy guideline. The remainder of the fund balance is comprised of designated reserves including $500,000 for the “rainy day fund”, $444,207 for the 27th pay period, $1,548,757 in the City Facility Fund, and $467,000 for future technology expenditures.
The following table summarizes revenues and expenditures for all Funds:
|other reserves & balances||$7,876,119||$49,673,293|
|total reserves & balances||$7,876,119||$106,314,619|
|* not including interfund transfers to avoid double counting|
The adopted budget is balanced, meets or exceeds all relevant financial policies, provides new funding where needed, and limits the impact of budget reductions on City services. That is possible because the City Council and staff worked together to address issues raised in the Five-Year Financial Forecast. As the economic outlook is uncertain, staff will closely monitor the fiscal outlook and recommend action if needed to address potential unforeseen issues.
In addition, staff will continue to explore other strategies to address the long term issue of expenditures increasing faster than revenues.
Detailed Financial Overview
The following information provides a more detailed picture of the City’s revenues and expenditures and debt position.
Fiscal Year 2010-2011 Proposed
Fiscal Year 2009-2010 Actual