Mulling over our current the lack of funding of capital projects and fleet needs, I ended up deciding to contrast the spending from three different time periods, as expressed by transfers (or in the case of 2018, expected transfers) out of the General Fund into the Capital Projects and Fleet funds. I’ve also placed rough estimates of average numbers of employees using full-time equivalents (FTEs).
Time period: fiscal years 2007 through 2010
Transfers to Capital Projects and Fleet: $521,500
Average number of city employees: 241
Time period: fiscal 2012 through 2014
Transfers to Capital Projects and Fleet: $1,768,191
Average number of city employees: 205
Time period: fiscal years 2015 through 2018
Transfers to Capital Projects and Fleet: $522,803
Average number of city employees: 230
Clearly, we’ve been here before — riding the edge of the cliff, I mean.
Last night during DeKalb’s budget meeting, the city manager said that DeKalb has 235 employees. She contrasted this with 2007, when she said we had 257 employees. Perhaps she meant full-time equivalent employees (FTEs), but the methodology for those calculations have changed. I do not understand them anymore, so am looking at things in a different way.
When the city manager said “2007,” I didn’t know whether she meant fiscal or calendar 2007. FY07, which ended June 30, 2007, was a heady year. Out of more than 1,000 building permits,76 were for residential new construction and 27 for industrial/commercial new construction. Retail sales hit an all-time high. Population nearly reached 47,000 and everyone was sure we’d hit 50,000 by 2010. Enrollment at NIU briefly touched the 25,000 mark. Continue reading Let’s discuss right-sizing of City of DeKalb’s workforce
There’s another special city council meeting, specifically a budget meeting, set for this evening. It’s apparently a follow-up of what they discussed last week.
On Thursday, the council held a joint meeting with the finance advisory committee to outline a proposed 5 percent reduction in city department budgets for fiscal 2018. This equates to nine full-time positions and 11 part-time positions being dropped and nearly $20 million being cut.
I watched the joint council-FAC meeting that the newspaper is referring to, and it did not look like there was much cutting of staff happening. With few exceptions, department heads talked about cutting expenses in a one-off manner. For example, they suggested simply not contributing the usual $12,000 to IHSA this year, and cutting non-critical training, and putting off purchases of equipment and software. In other words, the show was pretty much the same juggling act they do every year. Continue reading DeKalb’s growth in personnel expenses
That’s not a typo in the headline. There are, I believe, two proposals for a sales tax hike of one cent for fiscal 2018. One comes from DeKalb city administrators, the other from the city’s finance advisory committee (FAC).
Here’s the proposal staff put into the draft budget:
Sales tax for hiring police officers? Sales tax for “operations stabilization?” These people have run out of money for day-to-day expenses. The hiring spree chickens have come home to roost. Continue reading Anatomy of DeKalb’s proposals for a sales tax hike
DeKalb staff are proposing a one-cent rise in the local sales tax in order to meet next fiscal year’s budget beginning January 1, 2018.
They’ll tell you this is about street improvements, but they didn’t care about that last year or the year before, so I believe anything promised for streets is a sweetener to make the proposal more politically palatable.
What’s really going on is that the city has run out of money for streets AND operations now. They’d like to hire three new patrol officers, but they can’t do it because of the structural budget issue, meaning they’ve hired employees beyond what the growth in revenues can accommodate.
So they want $600,000 of the new sales tax to go into the General Fund. That’s how much they’re short for their current ambitions. But what the city council really should do is tell city manager Anne Marie Gaura to cut some people from the departments that come under the umbrella of administrative services. That’s where the most growth in personnel has happened on Gaura’s watch.
Continue reading DeKalb, I’ve got your new police officers right here
DeKalb’s Financial Advisory Committee (FAC) will be recommending that the city council raise the property tax levy by $954,000, and its local (home rule) sales tax by one cent, in the fiscal year starting January 2018.
The property tax recommendation was approved by the FAC in early October, and the sales tax during a meeting November 2.*
Even if the city council passes the recommended increases, FAC members acknowledge it would not fix the basic operations budget problem. The hikes, if approved, would balance the General Fund budget for this year, and maybe next. But without a major intervention to eliminate the structural issue, they would not constitute a long-term solution.
Indeed, the city’s own five-year forecast has the General Fund in deficit of nearly $2.9 million by 2022 — and that forecast is now due for an update because of DeKalb’s recent purchase of the condemned Edgebrook property and the latest downwardly-revised projections for state income tax revenues. On this trajectory, we could be looking at a hole of $3.5 million or more in operating revenues. And the forecast doesn’t cover grimmer scenarios, such as what happens to income tax revenues (distributed on a per capita basis) if DeKalb’s population has shrunk to fewer than the currently-claimed 40,030 residents, or how we’ll end up if recession hits in the next couple years. Continue reading DeKalb may raise taxes, but the structural budget issue remains
If you haven’t heard, the DeKalb is setting a property tax “ceiling” during its regular meeting tonight.
This is a legal-beagle advance notification of the highest aggregate amount that DeKalb could possibly ask for when the council sets the levy during its first meeting in December.
What a piece of luck, because recently I’ve been looking at past property tax share portions in DeKalb County. Below you can see tax year 2016, which we just got done paying for in September:
The proportions have remained very stable for the past decade. District 428 mostly ranges within a point either way of its current share, and hasn’t risen above 63%. Kish College has gone as high as 7% and is now on the low end of its usual range. The one exception is City of DeKalb.
In the chart below, what I’ve done is to compare City of DeKalb, its component unit DeKalb Public Library, and DeKalb County. For six years (and maybe more), the property tax shares of City of DeKalb and its library equalled the share of DeKalb County government at 10%, but over the past three years the county has done a better job holding the line on tax increases, while the city has pushed rapid growth in its levies.
Next year, what with the city’s new director of finance talking about a 9.5% share, the city will likely solidify its new status as second-highest consumer of property taxes in the county, even before counting the library.
The setup: During the special Committee of the Whole meeting of Monday evening, DeKalb council members were discussing with staff a proposed budget reduction in 2018 for the street improvement program in our two TIF districts, specifically a staff recommendation to cut in half the usual $1 million budgeted for streets in the TIFs. During the course of this discussion, Alderman David Jacobson asked whether the money budgeted in the TIFs for previous years actually got spent. Here’s the actual transcripted exchange:
Jacobson: One other question, only because it was something that was brought up this afternoon to me. I know there was a question last year about– I think it was in the 16-and-a-half budget, if I’m correct, that the council asked for a million-dollar budget in the TIFs for road expenditures, and there was some question as to whether or not that was ever spent?
Public Works Director Tim Holdeman: Absolutely, that was spent. That was in our road program for this year; we have completed that street maintenance, both in TIF 1 and TIF 2 districts. I don’t have the final numbers, but it’s very close to a million dollars. It bid out at about $990,000. So with the engineering, we were right at– we were a little bit above a million, but we could supplement that with Fund 50, so…[crosstalk]
Jacobson: And was that the same in ’16 as well?
Holdeman: For ’16?
Jacobson: The full million for ’16?
Holdeman: Yes, that was the same for fiscal year ’16, yes.
Holdeman’s comments make it sound like the city spent $1 million out of the TIF funds in FY16, another $1 million in FY17, and maybe something in between, during that six-month budget period they call FY16.5. But these claims are not demonstrably true at this point. The FY16 audited numbers are available, and as I reported earlier this year,* the TIF reports filed with the Illinois Comptroller show that not quite $115,000 was spent in the TIF districts on street improvements during FY16 — nowhere near the budgeted $1 million. Continue reading TIF spending for streets in FY16 did not come anywhere near what DeKalb is claiming
DeKalb’s Human Resources budget growth by fiscal year (rounded):
2014: $164,000 (actual)
2015: $184,000 (actual)
2016: $254,000 (actual)
2017: $456,000 (projected)
In FY14, there was one full-time director and one part-timer in HR.
Before that, there were some difficult years where HR had only one director, and the assistant city manager helped fill the gaps (along with having budget officer duties).
For FY17, we now have two expensive administrators (HR director and assistant director), a part-time administrative assistant, and a part-time HR generalist.
City staff would like to make the generalist’s position full-time for the next fiscal year, which would double the personnel from FY14 and effectively triple the budget during the same time period.
Even during DeKalb’s population boomlet and NIU’s peak enrollment (ca. 2007), when DeKalb was hiring rapidly to keep up with growth, HR never required more than two full-timers — and that was before all the compulsive software shopping, too.
So when do we see increases in productivity? When does council end the destructive hiring spree?
Until it does, we can’t have nice streets.
I was looking up city budgets yesterday and thought that information on numbers of employees would help provide more context for what I was seeing.
My resource for this is the Comprehensive Annual Financial Report (CAFR), not the CAFR itself, but a report appended near the end of the document that’s called “Full-Time Equivalent Employees,” or as I call it, the FTE report.
The FTE report does not tell you how many people the city employed, but it does tell you how many FTEs it budgeted for in each city department during the fiscal year just closed, plus the FTEs budgeted each of nine additional years back.
Imagine my shock when I saw that the FTE report attached to the FY16 CAFR changed all the historical data. Continue reading Why did DeKalb change its employee numbers going back 10 years?