1. FISCAL YEAR 2016 BUDGET City of Lockport, Illinois

2. The City is planning to draw down additional, available reserves from the: General Fund, MFT Fund, Capital Projects Fund and Water & Sewer Improvements Fund. This will provide Lockport with funds for additional Infrastructure Projects, while retaining a strong Fund (Equity) Balance. The City will remain within the parameters of its self-imposed Fund Balance Policy. BUDGET SUMMARY – BY FUND FundRevenueExpense Surplus/ (Deficit) Approximate Unrestricted Fund BalanceExplanation General Fund01 $ 13,868,200 $ 15,414,900 $ (1,546,700) $ 6,200,000 Drawdown of Reserves MFT Fund02 $ 626,200 $ 780,000 $ (153,800) $ 900,000 Drawdown of Reserves Bond Sinking Fund04 $ 2,416,800 $ - $ 8,000 Balanced Garbage Fund06 $ 2,304,800 $ - $ 230,000 Balanced TIF Fund12 $ 50,000 $ 142,000 $ (92,000) $ (130,000) Expenses budgeted if unplanned revenues are received Capital Projects Fund14 $ 7,682,600 $ 9,783,800 $ (2,101,200) $ 400,000 Drawdown of Reserves Water/Sewer Fund20 $ 7,830,300 $ (0) $ 4,500,000 Balanced Waster/Sewer Improvements Fund24 $ 6,246,300 $ 6,808,200 $ (561,900) $ 3,500,000 Drawdown of Reserves $ 41,025,200 $ 45,480,800 $ (4,455,600) $ 15,608,000

3. General Fund Revenues & Expenses Property Taxes make up the largest share of General Fund Revenues. The City’s portion of a tax bill is approximately 9-10%. The largest amount of the proposed budget’s General Fund Expenditures will be allocated to Police, followed by Public Works, & Administration

4. General Fund - Highlights  The General Fund planned draw down of excess reserves  $2,000,000 for Capital  Ending General Fund balance 6 months (Policy 4 months)  Plan to drawdown through 2017  Income Tax Revenue 15% reduction  Property Tax will be discussed at November meeting.  Police Pension:  60% funded  Expense per Actuary  Additional buy down

5. General Fund Operating Expenses - Highlights Bricks & Mortar Façade 50/50 Grant Code Compliance Grant Council Chamber Renovation Consultants Development Engineer Economic Development Consultant Attorneys/Misc. Consultants Events Central Square Festivities Lockport Art Series Canal Days

6. OTHER FUNDS

7. GARBAGE FUND  The City’s Garbage operations are provided by Waste Management.  Revenues - monthly garbage collection rate  Expenditures – contract with Waste Management ends 10/31/2018  Small increase each November TIF FUND  Created for Downtown and Star Business Park  Revenues -Property Tax  Expenses - Will not be frequent until additional resources are Realized in Fund

8. Water & Sewer Revenue and Expense

9. Water/Sewer Funds - Highlights  The Water and Sewer Fund is a balanced budget.  $520,000 transfer for Capital  Repay $125,000 to the General Fund for 2008 loan  Will consolidate Operating and Capital Funds (20 & 24)  The Water and Sewer Improvements Fund will drawdown Fund Balance by $561,900  $5,135,000 projects, engineers and consultants  Approximately $1,463,200 million in debt payments  2 IEPA loans  2012 Alternative Revenue Bond (pro-rated with Streets)

10. EMPLOYEE OVERVIEW

11. Stable employee base. During the economic downturn the City reduced the size of its staff, but is still 11% below the 2009 staffing levels. No new hires are anticipated in 2016. Full-Time Equivalent Positions

12. Payroll Breakdown

13. Capital Projects Fund  This fund is utilized to budget for capital outlay and projects within governmental activities  Several revenue sources are utilized for these activities:  Non-Home Rule Sales Tax  Electric Excise Tax  Annexation/Road Impact Fees  Telecom Utility Tax  Grants/Contributions  Transfers from the General Fund

14. Equipment Purchases The following equipment is scheduled to be purchased this year in accordance with the equipment replacement program: Police Dept:$200,000 Ford Interceptor Squad Cars $30,000 each (2 Capital & 3 Fed Seizure) Ford Taurus for Investigator (Fed Seizure) $25,000 Pickup Truck for Community Ser Officer (Capital) $25,000 Street Dept:$106,000 Equipment for Snow Plow $76,000 Pickup Truck $30,000 Sewer Dept:$160,000 2 Influent Pumps $55,000 each Lift Station Pump $50,000

15. CAPITAL PROJECTS

16. Capital Projects