1. Revenue Options Group Identify a Sustainable Sources of Revenue for Infrastructure August 11, 2014

2. Introduction Revenue Challenges Infrastructure-Street Maintenance Street Maintenance Funding Obligations Options Recommendation

3. Challenges: TIF Districts Geographically Limited in its ability support street maintenance program – TIF funds can only support projects within the districts. All other roads are not eligible. TIF funding not a dedicated source of revenue; other projects compete for this funding.

4. Challenges-TIF Funding Disproportionate The TIF District contains 24% of the total miles of roads within the City Limits and account 71% of the expenditures. Non TIF areas account for 76% of the total miles of roads within the City limits and account for 29% of the expenditures.

5. Challenges-TIF Funding Disproportionate

6. Categorizing Streets Infrastructure Management Systems (IMS) allow staff to utilize software to provide each street in town with a pavement index number. – Streets in red are streets that need immediate attention and are failing. IMS Rating (0-59) – Streets in yellow indicate that the streets need maintenance to prevent them to from deteriorating to the failing condition. IMS rating (60-79) – Streets in green indicate streets that are in acceptable condition. IMS rating (80+)

7. Street Ratings

8. Street Condition Inventory

9. Street Ratings Exhibit B

10. Funding Obligations-Comparison CharacteristicDeKalbSycamore Population 44,03017,519 Total Road Miles 129.687 TIF98.6- Non-TIF31- Total Road Budget 2014$1,400,000.00$2,698,000.00 Projected Budget 2015TBD$1,414,808.00 Projected Budget 2016TBD$1,414,808.00 Projected Budget 2017TBD$1,414,808.00 $/Person spent on roads$31.80$154.00 $/ Mile$10,802.47$31,011.49 Table 1. City DeKalb-City of Sycamore Street Maintenance Expenditure Comparison

11. Funding Obligations-Comparison CharacteristicDeKalbSycamore Population44,03017,519 Total Road Miles129.687 Total Budget$400,000.00$1,414,808.00 $/Person spent on roads$9.12$80.69 $/ Mile$3,086.42$16,262.16 Table 2. Future funding in the City of DeKalb and Sycamore.

12. Funding Obligations-Future Infrastructure Management System (IMS) – Maintain Level of Service (LOS) – Result of the study indicates $33,130,833.33 is required over 5 years or $6,626,166.67 per year

13. Future Considerations The allocation of TIF funding may be directed to other activities within the TIF district and is not a dedicated source of revenue. Unreliable because it can be variable due to competition. In 2018 TIF #1 will expire and the street maintenance program will lose $500,000.00 In 2020 TIF #2 will expire and the street maintenance program will lose the remaining $500,000.00 from the TIF Districts In 2020 the only source of funding for street maintenance will be the local gas tax at $400,000.00

14. Options Identify a Dedicated and Sustainable Funding Source – An 1% increase in sales tax provides $4,000,000.00 in revenue. – Total funds would be $4,400,000.00 and reduce the funding shortfall to $2,226,166.67 per year. Allow the TIF Districts to expire without identifying a future dedicated funding source for capital projects. The impact is the condition of City streets will deteriorate. Request additional information from staff and/or identify alternate options.

15. Recommendation A future dedicated funding source for capital projects needs to be identified in order to properly maintain streets. It is recommended that the Finance Advisory Committee review infrastructure funding, particularly the sales tax as a dedicated source and make a formal recommendation to the City Council.