COVID-19 Update/DiscussionAPRIL 27, 2020
Emergency Operations Command
Knox County Dashboard (4/24)
Incident Action Plan
Organization Assignment List
Feeding Counts
State & Federal Governor Executive Order No. 10 – March 20
o Stay at Home
o Non-essential business and operations must cease
o Social Distancing
o Extended through May 30 with some modifications
President National Emergency – March 1
Congress Coronavirus Aid, Relief, and Economic Security (CARES) Act - $2.2 Trilliono Expanded Unemployment
o Business Loans
o Cash Payments
Business Assistance: Illinois Small Business Emergency Loan, Downstate Small Business Stabilization Program, Hospitality Emergency Grant Program, PPP and other SBA programs
City of Galesburg City Hall closed – 3/19
Emergency Declaration – 3/19
License and Bill Payment options
City Operationso Work from home
o Split shifts
o PPE
o Modified procedures
o Park programs and facilites
Economic Impact Estimated that 24% of Illinois workforce in affected sectors (1.5M workers)
755,000 initial unemployment claims from March 1 through April 18 - 12 times the number of claims last year
Illinois Budget Estimateso $2.7 billion shortfall for FY 2020
o $6.2 billion FY 2021
Pension Plan Stress
Budget Impact Emergency Phase (FY 2020) and Recovery Phase (FY
2021?)
Extent and timing of impact on cities – Who will best weather storm?o Strong reserves
o Diversified tax base
o Well-funded pension and employee benefit plans
o Low debt
Reserves
Estimated General Fund and Park Fund - Fund Balances
Fund 12/31/19Estimated
Unassigned Fund Balance
FY 20 ProposedRevenues
FY 20 Proposed Expenses
FY 20 Revenues
Over/ (Under) Expenses
12/31/20 Estimated
Unassigned Fund Balance
Estimated Over/(Under)
Required 12/31/20 Fund
Balance
General $8,102,593 $24,408,065 $25,342,735 ($934,670) $7,167,923 $106,836
Park & Rec $1,202,023 $4,530,490 $5,297,445 ($766,955) $435,068 $193,451
Water Reserves
Water Fund Financials - 4/20Description As of 4/24/20
Cash & Investments 11,014,505
Receivables 1,290,871
Prepaid Expenses 40,432
Inventory 136,264
Fixed Assets 34,535,743
Deferred Outflows 1,279,256
Asset 48,297,071
Accounts Payable (118,201)
Payroll Payables (207,068)
Customer Deposits (952,535)
GO Bond/Notes Current (886,406)
Long Term Debt Obligations (13,275,000)
Non-Current Liab. & Def. Inflows (2,258,668)
Other Long Term Payables (1,019,849)
Liability (18,717,727)
Fund Balance Unrestricted (8,472,040)
Capital Assets Net RDebt (19,486,093)
Fund Balance (27,958,133)
Description As of 4/24/20
Revenues as of 4/24/20 2,758,078
Expenses as of 4/24/20 1,136,867
Revenues over Expenses 1,621,211
Revenue Budget Total 6,780,750
Expense Budget Total 6,308,415
Est. Revenues over Expenses 472,335
Tax Base
Tax Base – General & ParkRevenue Source Budget Percent
Property Taxes $ 7,881,685 33%
SSA #1 Property Tax $ 147,300 1%
Replacement Taxes $ 776,000 3%
State Income Tax $ 3,118,000 13%
Sales Tax $ 5,751,505 24%
Local Use Tax $ 970,040 4%
Home Rule Tax $ 2,767,500 11%
Prepared Food & Bev Tax $ 1,580,000 7%
Hotel Motel Tax $ 815,000 3%
Video Gambling Tax $ 366,000 2%
Municipal Auto Rental Tax $ 13,600 0%
Total: $ 24,186,630
Pension & Benefit Plans
Economic Impact
Pension & Benefit Plans
Fund Assets Liabilities % Funded Source
Fire $ 25,178,462 $ 69,170,688 36% January 2019 Draft GASB
Police $ 28,900,877 $ 71,456,650 40% January 2019 Draft GASB
IMRF $ 59,130,187 $ 61,334,961 96% 2018 CAFR
OPEB $ 1,330,176 $ 14,798,731 9% 2019 OPEB Report
Totals: $ 114,539,702 $ 216,761,030 53%
Debt Position
Debt
Debt Payments
FY 2020 Budget Impact Making projections of the impact of unprecedented events is problematic
Looked at three scenarios – High, Moderate, and Low Impact
Made assumptions about the impact on individual revenues by quarter
Information for FY 2020 only
No doomsday scenario – assume significant restrictions lifted by end of June, and no significant disruption to state formula for revenue sharing
Water Revenues
Impact on revenues for FY 2020o High $5,636,000
o Moderate $4,051,211
o Low $2,465,781
Revenue ModelRevenue Source Budget January February March April May June July August September October November December TOTAL
Property Taxes $ 7,881,685 95% $ 3,743,800 95% $ 3,743,800 $ 7,487,603
SSA #1 Property Tax $ 147,300 95% $ 69,968 95% $ 69,968 $ 139,937
Replacement Taxes $ 776,000 95% $ 368,600 95% $ 368,600 $ 737,202
State Income Tax $ 3,118,000 100% $ 259,833 $ 259,833 $ 259,833 83% $ 214,363 $ 214,363 $ 214,363 85% $ 220,858 $ 220,858 $ 220,858 88% $ 227,354 $ 227,354 $ 227,354 $ 2,767,225
Sales Tax $ 5,751,505 100% $ 479,292 $ 479,292 $ 479,292 63% $ 299,558 $ 299,558 $ 299,558 80% $ 383,434 $ 383,434 $ 383,434 93% $ 443,345 $ 443,345 $ 443,345 $ 4,816,885
Local Use Tax $ 970,040 100% $ 80,837 $ 80,837 $ 80,837 63% $ 50,523 $ 50,523 $ 50,523 80% $ 64,669 $ 64,669 $ 64,669 93% $ 74,774 $ 74,774 $ 74,774 $ 812,409
Home Rule Tax $ 2,767,500 100% $ 230,625 $ 230,625 $ 230,625 63% $ 144,141 $ 144,141 $ 144,141 80% $ 184,500 $ 184,500 $ 184,500 93% $ 213,328 $ 213,328 $ 213,328 $ 2,317,781
Prepared Food & Bev Tax $ 1,580,000 100% $ 131,667 $ 131,667 $ 131,667 38% $ 49,375 $ 49,375 $ 49,375 63% $ 82,292 $ 82,292 $ 82,292 85% $ 111,917 $ 111,917 $ 111,917 $ 1,125,750
Hotel Motel Tax $ 815,000 100% $ 67,917 $ 67,917 $ 67,917 10% $ 6,792 $ 6,792 $ 6,792 38% $ 25,469 $ 25,469 $ 25,469 70% $ 47,542 $ 47,542 $ 47,542 $ 443,156
Video Gambling Tax $ 366,000 100% $ 30,500 $ 30,500 $ 30,500 0% $ - $ - $ - 25% $ 7,625 $ 7,625 $ 7,625 75% $ 22,875 $ 22,875 $ 22,875 $ 183,000
Municipal Auto Rental Tax $ 13,600 100% $ 1,133 $ 1,133 $ 1,133 75% $ 850 $ 850 $ 850 88% $ 992 $ 992 $ 992 88% $ 992 $ 992 $ 992 $ 11,900
$ 20,842,848
Budget $ 24,186,630
$ (3,343,782)
Tax RevenuesRevenue Source Budget Projected Difference Percent
Property Taxes $ 7,881,685 $ 7,487,603 $ (394,082) -5%
SSA #1 Property Tax $ 147,300 $ 139,937 $ (7,363) -5%
Replacement Taxes $ 776,000 $ 737,202 $ (38,798) -5%
State Income Tax $ 3,118,000 $ 2,767,225 $ (350,775) -11%
Sales Tax $ 5,751,505 $ 4,816,885 $ (934,620) -16%
Local Use Tax $ 970,040 $ 812,409 $ (157,632) -16%
Home Rule Tax $ 2,767,500 $ 2,317,781 $ (449,719) -16%
Prepared Food & Bev Tax $ 1,580,000 $ 1,125,750 $ (454,250) -29%
Hotel Motel Tax $ 815,000 $ 443,156 $ (371,844) -46%
Video Gambling Tax $ 366,000 $ 183,000 $ (183,000) -50%
Municipal Auto Rental Tax $ 13,600 $ 11,900 $ (1,700) -13%
Totals: $ 24,186,630 $ 20,842,848 $ (3,343,782) -14%
Water Revenues – Past Due
Summary
Tax Revenue $ (3,343,782)
Misc. Revenue $ (150,000)
Park Revenue $ (557,429)
FEMA Reimbursement $ 250,000
BI Insurance $ 100,000
Reductions $ 3,707,964
Difference: $ 6,753
ReductionsReplacement Programs $ 1,763,886
Travel & Training $ 50,000
Utility Tax Transfer $ 102,000
Park Expense $ 789,235
ED Fund Transfer $ 371,844
Tourism Payment $ 95,000
Temp Employees $ 50,000
City Website $ 35,000
Property Redevelopment $ 421,000
Other $ 30,000
Total: $ 3,707,964
Other options Police & Fire Pension Payment (Property Tax)
OPEB Contribution
Staffing
Bids & Projects
Bids on Hold
Capital Projects Golf Course Patio - $100,000
Street Facility - $1,600,000
Airport Tower Demolition - $30,000
Armory Roof (Sold) - $72,000
Public Comment