LONG TERM DEBT - Champaign County€¦ · FY2017 Budget Champaign County, Illinois Debt Management...

FY2017 Budget

Champaign County, Illinois Debt Management Summary

541

DEBT MANAGEMENT SUMMARY

Introduction

The County has issued debt over the last two decades primarily for the rebuilding of its facility

infrastructure. Issuance of debt is managed in compliance with the County’s Debt Management Policy as

documented in the Financial Policies section of the Budget document.

Debt Rating

Moody’s Investor Services completed an updated rating on Champaign County in October 2014, and the

County maintained the Aa2 bond rating it has since 2007.

Recent Activity

In order to achieve more favorable interest rates generating savings to taxpayers, the County issued $2.535

million in refunding of the 2006A Nursing Home Construction Bonds in November 2015 and $9.795

million in refunding of the 2005 Public Safety Sales Tax Bonds in October 2014. The County Board

authorized refunding of $3.78 million for Bond Issue 2007A in August 2016; however, refunding was

incomplete at the time of this writing. In December 2012, the County issued $1.995 million in debt with

Bond Issue 2010A for the construction of the 202 Art Bartell Facility, and in July 2011, issued $4.2 million

in refunding of the 2003 Nursing Home Bonds. In FY2016, the County made it last payment for the 2007B

Highway Fleet Maintenance Facility construction project.

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2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

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LONG TERM DEBT

Total Outstanding Principal Total Outstanding Interest

FY2017 Budget


542

Outstanding Debt as of December 31, 2017

$23.8 million in 1999, for the construction and remodeling of the Champaign County Court

Facility and for the construction of the Juvenile Detention Center – The principal amount

outstanding will be $4,850,000.

o $18.44 million in 2005 refunding the 1999 bond issue – The principal amount outstanding

will be $950,000.

o $9.8 million in 2014 refunding the 2005 refunding of the 1999 bond issue – The principal

amount outstanding will be $9,795,000.

$19.9 million in 2003, for the construction of a new Champaign County Nursing Home – The

principal amount outstanding will be $0.

o $7.43 million in 2005 refunding the 2003 bond issue – The principal amount outstanding will

be $1,205,000.

o $4.2 million in 2011 refunding the 2003 bond issue – the principal amount outstanding will

be $4,255,000.

$4 million in 2006, for the additional cost required to complete the new Champaign County

Nursing Home construction project – the principal amount outstanding will be $0.

o $2.535 million in 2015 refunding the 2006 bond issue – The principal amount outstanding

will be $2,055,000.

$5.955 million in 2007, for the Courthouse Exterior Renovation and Clock and Bell Tower

Restoration project – The principal amount outstanding will be $3,430,000. This issue is being

refunded in 2016.

$1.995 million issued in December 2011 for the 202 Art Bartell Facility housing the Coroner,

Physical Plant, and County Clerk Election Storage – the principal amount outstanding will be

$1,130,000.

The County issued all of the above debt as general obligation bonds to achieve the lowest possible interest

rates. However, with the exception of the Nursing Home $19.9 million Bond and subsequent refunding of

that Nursing Home bond issue, all of the debt is repaid with dedicated revenues rather than property taxes.

The bonds for the Courthouse and Juvenile Detention Center projects are repaid with the County’s ¼%

Public Safety Sales Tax. The $4 million bond issue for additional costs to complete the Champaign County

Nursing Home is obligated with the County’s 1% county sales tax within the General Corporate Fund but is

actually being repaid by the Nursing Home through an annual transfer from the Nursing Home Fund to the

General Corporate Fund. The $1.995 million 202 Art Bartell facility completed in 2011 is backed by the

County’s general sales tax revenues.

The $19.9 million and subsequent refunding issue for the Champaign County Nursing Home is paid with

property tax, pursuant to referendum approved by the voters of Champaign County in November 2002.

FY2017 Budget


543

Debt Financing Plans

At this time, the County does not have a documented plan for issuing additional debt. In FY2015 the

County contracted with Bailey Edward to conduct a countywide Facility Condition Assessment. Following

the assessment, the County Administrator and Facilities Director drafted a Facilities Action Plan which was

approved by the Facilities Committee and forwarded to the County Board for approval in October 2016.

The plan identified the deferred maintenance needs of the County in addition to developmental projects

such as replacement of the County’s Animal Control Facility, garage consolidation, relocation of the

downtown Sheriff’s Office and consolidation of its Correctional Facilities. If voters approve a November

2016 ballot question imposing a ¼% Facilities Sales Tax, the County may proceed with issuing debt for

some of the developmental projects; however, that is not likely to occur until FY2018 since revenue

disbursement would not ensue until September 2017.

In FY2017 the County will make its final payment on the Courthouse Facility Bond (Issue 2000B). Retiring

this debt service, which is paid from the Public Safety Sales Tax revenue, will result in $1.265 million of

relief in FY2018.

The following graph shows the County’s current outstanding debt through 2028, when the County’s debt

service payments are scheduled to end unless new debt is issued.

Intergovernmental Loans

In FY2016, the County’s General Corporate Fund made its final payment on a $1.05 million loan made in

1995 from the Regional Planning Commission for the purpose of buying and remodeling the Brookens

Administrative Building. The loan was repaid over 20 years at 0% interest from June 1996 through June

2016, with annual payments of $52,500.

Capital Leases

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2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

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Long Term Debt Total Annual Principal & Interest Payments

Principal Payments Interest Payments

FY2017 Budget


544

The County entered into a 48-month Capital Lease for replacement, software and maintenance of the

County AS/400. The total lease including financing is $141,728.00. The term of the lease is November

2016 – October 2020, and the monthly lease payments are $3,065.17. Lease payments will be made from

the following budgets: Probation (November 2016 - October 2017), IT Capital (November and December

2017), Public Safety Sales Tax (2018), Court Automation (2019 – October 2020).

Debt Limitations

Pursuant to 55 ILCS 5/5-1012, the County’s debt limit is 5.75% of Assessed Valuation. The real estate year

2016 gross equalized assessed valuation for Champaign County is estimated to be $3,762,866,676. By the

statutory definition, the County’s debt limit is $216,364,834. The expected County debt applicable to the

debt limit at the beginning of FY2017 is:

Debt Amount

General Obligation Bonds $30,796,707

Debt Certificate $1,265,000

Capital Leases $141,727

Intergovernmental Loans $0

Total Debt $32,203,434

Total Subject to debt limit $32,061,707

The legal debt margin is $184,303,127 as of January 1, 2017.

FY2017 Budget Nursing Home Debt Service

Champaign County, Illinois Fund 074-010

545

NURSING HOME DEBT SERVICE Fund 074-010

This fund is for the repayment of $19,925,000 in general obligation bonds issued in FY2003 for the purpose

of financing the current Champaign County Nursing Home.

BUDGET HIGHLIGHTS

The FY2015, FY2016 and FY2017 budgets reflect annual costs in the form of one annual principal payment

and two semi-annual interest payments each year. As indicated below, the bonds funding this debt service

will be retired in FY2022.

FINANCIAL

Fund 074 Dept 010 2015 2016 2016 2017

Actual Original Projected Budget

311 33 CURR PROP TX-NURS HM BOND $1,430,971 $1,436,363 $1,438,211 $1,440,575

313 33 RE BACKTAX-NURS HOME BOND $984 $0 $0 $0

314 10 MOBILE HOME TAX $1,374 $0 $0 $0

315 10 PAYMENT IN LIEU OF TAXES $987 $0 $0 $0

PROPERTY TAXES $1,434,316 $1,436,363 $1,438,211 $1,440,575

361 10 INVESTMENT INTEREST $616 $0 $0 $0

MISCELLANEOUS $616 $0 $0 $0

REVENUE TOTALS $1,434,932 $1,436,363 $1,438,211 $1,440,575

581 1 GEN OBLIG BOND PRINCIPAL $1,030,000 $1,085,000 $1,085,000 $1,145,000

582 2 INT &FEES-GEN OBLIG BONDS $405,563 $352,538 $352,538 $295,575

DEBT $1,435,563 $1,437,538 $1,437,538 $1,440,575

EXPENDITURE TOTALS $1,435,563 $1,437,538 $1,437,538 $1,440,575

FUND BALANCE

FY2015 Actual FY2016 Projected FY2017 Budgeted

$383,710 $384,383 $384,383

The fund balance of a debt service fund is required to cover the ensuing fiscal year debt service payments.

The indicated fund balance, when added to the property tax revenue to be received in each fiscal year,

provides appropriate coverage for the debt service to be paid in that year.

DEBT SERVICE SCHEDULE

The County sold $19,925,000 in General Obligation Bonds in February 2003. Pursuant to a voter approved

referenda in November 2002, the debt will be repaid from property taxes over a twenty- year period.

FY2017 Budget Nursing Home Debt Service


546

In FY2005, the County approved the advance refunding of $7,425,000 of bonds due 2013 through 2019 to

achieve savings from lower interest rates. In FY2011, the remainder of the original 2003 bonds was

refunded to achieve lower interest rates.

Bond Issue 2005A - Refunding 2003 Nursing Home Construction Bonds

Maturity Date Principal Interest Rate Original Yield to

Maturity

1/1/2018 $1,145,000 5.25% 4.01%

1/1/2019 $1,205,000 5.25% 4.07%

Total $2,350,000

Debt Service Payments

Fiscal Year Principal Interest Total

FY 2017 $1,145,000 $123,375 $1,268,375

FY 2018 $1,205,000 $63,263 $1,268,263

TOTAL $2,350,000 $186,638 $2,536,638

Bond Issue 2011 - Refunding 2003 Nursing Home Construction Bonds


Maturity

1/1/2020 $1,365,000 4.00% 3.00%

1/1/2021 $1,415,000 4.00% 3.18%

1/1/2022 $1,475,000 4.00% 3.40%

Total $4,255,000



FY 2017 $0 $170,200 $170,200

FY 2018 $0 $170,200 $170,200

FY 2019 $1,365,000 $170,200 $1,535,200

FY 2020 $1,415,000 $115,600 $1,530,600

FY 2021 $1,475,000 $59,000 $1,534,000

TOTAL $4,255,000 $685,200 $4,940,200

FY2017 Budget General Corporate Fund Debt Service

Champaign County, Illinois General Fund 080-013

547

GENERAL CORPORATE FUND DEBT SERVICE General Fund 080-013

This budget is for the repayment of $4,000,000 in general obligation bonds (general sales tax alternate

revenue source) issued in FY2006 for the purpose of financing additional costs of the Nursing Home

Construction Project. The alternate revenue source for repayment is the County’s 1% sales tax. However,

beginning in FY2010, the Nursing Home operating budget assumed responsibility for the debt service on

this bond obligation and continues to do so through a transfer from the Nursing Home Fund to the General

Corporate Fund. The County continues to set aside the sales tax revenue as required by the bond covenants,

but the transfer from the Nursing Home effectively re-establishes the benefit of those sales taxes to the

General Corporate Fund. At the end of the fiscal year, and after reimbursement from the Nursing Home, the

Auditor’s Office makes an adjustment to move the sales tax revenue that was originally allocated to the debt

service.

BUDGET HIGHLIGHTS

The county refunded the 2006A Nursing Home Construction Bonds in 2015 resulting in savings of

$272,770 after the cost of issuance. The Net Present Value (NVP) savings as a percentage was 9.8%. The

county’s debt management policies require that a minimum NVP savings of 3% be achieved over the life of

an issue in order to be considered for refunding.

In FY2016, the county retired $700,000 in general obligation bonds (general sales tax alternate revenue

source). The bonds were issued in FY2007 for the purpose of financing a portion of the County Highway

Fleet Maintenance Facility which is used to service the fleet of vehicles owned by the General Corporate

Fund.

FINANCIAL

Fund 080 Dept 013 2015 2016 2016 2017


335 40 1% SALES TAX (UNINCORP.) $1,069 $311,491 $285,827 $282,670

335 41 1/4% SALES TAX (ALL CNTY) $95,391 $96,150 $96,150 $0

FEDERAL, STATE & LOCAL SHARED REVENUE $96,460 $407,641 $381,977 $282,670

369 90 OTHER MISC. REVENUE $0 $0 $4,855 $0

MISCELLANEOUS $0 $0 $4,855 $0

381 81 REIMB FROM NURSING HOME $307,490 $311,491 $285,827 $282,670

383 10 PROCEEDS-GEN OBLIG BONDS $2,535,000 $0 $0 $0

INTERFUND REVENUE $2,842,490 $311,491 $285,827 $282,670

REVENUE TOTALS $2,938,950 $719,132 $672,659 $565,340

533 7 PROFESSIONAL SERVICES $30,105 $0 $0 $0

SERVICES $30,105 $0 $0 $0

571 50 TO HWY FACIL BOND FUND350 $95,139 $96,150 $96,150 $0

FY2017 Budget General Corporate Fund Debt Service

Champaign County, Illinois General Fund 080-013

548

Fund 080 Dept 013 2015 2016 2016 2017


INTERFUND EXPENDITURE $95,139 $96,150 $96,150 $0

581 1 GEN OBLIG BOND PRINCIPAL $195,000 $210,000 $240,000 $240,000

582 2 INT &FEES-GEN OBLIG BONDS $112,490 $101,775 $45,827 $42,670

583 1 GEN OBLIG BOND REFUNDED $2,504,895 $0 $0 $0

DEBT $2,812,385 $311,775 $285,827 $282,670

EXPENDITURE TOTALS $2,937,629 $407,925 $381,977 $282,670

DEBT SERVICE

Bond Issue 2015 - Refunding 2006A Nursing Home Construction Bonds

Maturity Date Principal Interest Rate

1/1/2018 $240,000 1.03%

1/1/2019 $240,000 1.22%

1/1/2020 $245,000 1.42%

1/1/2021 $250,000 1.63%

1/1/2022 $255,000 1.89%

1/1/2023 $260,000 2.08%

1/1/2024 $265,000 2.27%

1/1/2025 $270,000 2.44%

1/1/2026 $270,000 2.55%

Total $2,295,000



FY 2017 $240,000 $42,670 $282,670

FY 2018 $240,000 $40,198 $280,198

FY 2019 $245,000 $37,270 $282,270

FY 2020 $250,000 $33,791 $283,791

FY 2021 $255,000 $29,716 $284,716

FY 2022 $260,000 $24,897 $284,897

FY 2023 $265,000 $19,489 $284,489

FY 2024 $270,000 $13,473 $283,473

FY 2025 $270,000 $6,885 $276,885

TOTAL $2,295,000 $248,388 $2,543,388

FY2017 Budget Public Safety Sales Tax Debt Service


549

PUBLIC SAFETY SALES TAX DEBT SERVICE Fund 106-013

The sales tax revenue required to be set aside for repayment of the $28,797,290 in bonds issued for the

construction/remodeling of the Courthouse and construction of the Juvenile Detention Center, and the

$5,955,000 in bonds issued for the Courthouse exterior masonry renovation and Clock and Bell Tower

restoration projects are deposited in this budget. The corresponding annual bond payments are budgeted as

expenditure in this budget.

BUDGET HIGHLIGHTS

The Budget reflects one annual principal payment and two semi-annual interest payments on the bonds that

have been issued for the afore-mentioned projects. The anticipated refunding of the 2007 bonds in

FY2016, and the refunding of the 2005 bonds completed in FY2014, and are generating savings in the

annual debt service obligations paid out of the Public Safety Sales Tax Fund.

FINANCIAL

Fund 106 Dept 013 2015 2016 2016 2017


318 9 PUB SAFETY 1/4% SALES TAX $3,564,617 $3,611,871 $3,611,871 $3,574,302

PROPERTY TAXES $3,564,617 $3,611,871 $3,611,871 $3,574,302

361 10 INVESTMENT INTEREST $2,769 $1,000 $1,000 $1,000

369 90 OTHER MISC. REVENUE $199 $0 $0 $0

MISCELLANEOUS $2,968 $1,000 $1,000 $1,000

REVENUE TOTALS $3,567,585 $3,612,871 $3,612,871 $3,575,302

581 1 GEN OBLIG BOND PRINCIPAL $1,490,492 $1,550,860 $1,550,860 $1,606,707

582 2 INT &FEES-GEN OBLIG BONDS $2,048,635 $1,999,655 $1,999,655 $1,967,595

DEBT $3,539,127 $3,550,515 $3,550,515 $3,574,302

EXPENDITURE TOTALS $3,539,127 $3,550,515 $3,550,515 $3,574,302

DESCRIPTION

The County sold $23,800,000 in General Obligation Bonds in June 1999 for the purpose of constructing a

new Juvenile Detention Center, and for the construction of an addition and remodeling of the Champaign

County Courthouse. The issued bonds were General Obligation – Public Safety Sales Tax Alternate

Revenue Source Bonds.

The County sold additional bonds for the Courthouse construction/renovation project in February 2000 -

$1,370,000 General Obligation – Public Safety Sales Tax Alternate Revenue Source Bonds Issue 2000A;



550

and $3,627,290.25 General Obligation – Public Safety Sales Tax Alternate Revenue Source Bonds Issue

2000B (Capital Appreciation Bonds).

In 2005, the County approved the advance refunding of $18,440,000 of the 1999 bonds due in 2010 to 2018

to achieve savings from lower interest rates.

In 2007, the County sold additional bonds - $5,955,000 General Obligation – Public Safety Sales Tax

Alternate Revenue Source Bonds Issue 2007A - for the exterior renovation of the original Courthouse, and

for the restoration of the Courthouse Clock and Bell Tower. These bonds are eligible for refunding in

October 2016.

In 2014, the County approved the advance refunding of $9,795,000 - of the 2005B bonds due in 2023-2028

to achieve savings from lower interest rates.

The debt service schedules for the bonds are as follows:



551

Bond Issue 1999 – Courthouse and Juvenile Detention Center Facility Bonds


Maturity

1/1/2020 $1,015,000 8.25% 5.39%

1/1/2021 $1,140,000 8.25% 5.40%

1/1/2022 $1,275,000 8.25% 5.41%

1/1/2023 $1,420,000 8.25% 5.42%

Total $4,850,000



FY 2017 $0 $400,125 $400,125

FY 2018 $0 $400,125 $400,125

FY 2019 $1,015,000 $400,125 $1,415,125

FY 2020 $1,140,000 $316,388 $1,456,388

FY 2021 $1,275,000 $222,338 $1,497,338

FY 2022 $1,420,000 $117,150 $1,537,150

TOTAL $4,850,000 $1,856,250 $6,706,250

Bond Issue 2000B – Courthouse Facility Bonds


Maturity

1/1/2018 $431,707 6.10% 6.10%

Total $431,707



FY 2017 $431,707 $833,293 $1,265,000

TOTAL $431,707 $833,293 $1,265,000

Bond Issue 2005B – Refunding 1999 Courthouse & Juvenile Detention Center Facility Bonds


Maturity

1/1/2018 $865,000 5.25% 4.03%

1/1/2019 $950,000 5.25% 4.09%

Total $1,815,000



FY 2017 $865,000 $95,288 $960,288

FY 2018 $950,000 $49,875 $999,875

TOTAL $1,815,000 $145,163 $1,960,163



552

Bond Issue 2007A – Courthouse Exterior Renovation & Clock Tower Restoration


Maturity

1/1/2018 $310,000 3.80% 3.86%

1/1/2019 $325,000 3.875% 3.92%

1/1/2020 $335,000 3.90% 3.97%

1/1/2021 $350,000 3.95% 4.00%

1/1/2022 $365,000 4.00% 4.03%

1/1/2023 $380,000 4.00% 4.05%

1/1/2024 $395,000 4.00% 4.09%

1/1/2025 $410,000 4.05% 4.12%

1/1/2026 $425,000 4.10% 4.15%

1/1/2027 $445,000 4.10% 4.18%

Total $3,740,000



FY 2017 $310,000 $149,139 $459,139

FY 2018 $325,000 $137,359 $462,359

FY 2019 $335,000 $124,765 $459,765

FY 2020 $350,000 $111,700 $461,700

FY 2021 $365,000 $97,875 $462,875

FY 2022 $380,000 $83,275 $463,275

FY 2023 $395,000 $68,075 $463,075

FY 2024 $410,000 $52,275 $462,275

FY 2025 $425,000 $35,670 $460,670

FY 2026 $445,000 $18,245 $463,245

TOTAL $3,740,000 $878,378 $4,618,378



553

Bond Issue 2014 – Refunding 2005B Courthouse & Juvenile Detention Center Facility Bonds


Maturity

1/1/2024 $1,330,000 5.00% 2.40%

1/1/2025 $1,445,000 5.00% 2.51%

1/1/2026 $1,565,000 5.00% 2.60%

1/1/2027 $1,690,000 5.00% 2.72%

1/1/2028 $1,815,000 5.00% 2.84%

1/1/2029 $1,950,000 5.00% 2.90%

Total $9,795,000



FY 2017 $0 $489,750 $489,750

FY 2018 $0 $489,750 $489,750

FY 2019 $0 $489,750 $489,750

FY 2020 $0 $489,750 $489,750

FY 2021 $0 $489,750 $489,750

FY 2022 $0 $489,750 $489,750

FY 2023 $1,330,000 $489,750 $1,819,750

FY 2024 $1,445,000 $423,250 $1,868,250

FY 2025 $1,565,000 $351,000 $1,916,000

FY 2026 $1,690,000 $272,750 $1,962,750

FY 2027 $1,815,000 $188,250 $2,003,250

FY 2028 $1,950,000 $97,500 $2,047,500

TOTAL $9,795,000 $4,761,000 $14,556,000

FY2017 Budget Highway Facility Debt Service


554

HIGHWAY FACILITY DEBT SERVICE Fund 350-010

This budget is for the repayment of $1,480,000 in general obligation bonds (alternate revenue source) issued

in FY2007 for the purpose of financing a portion of the Highway Facility constructed in 2007/2008.

BUDGET HIGHLIGHTS

By the end of FY2016, this fund and debt service will be complete and zeroed out. The Highway Fund paid

for $780,000 of the Highway Fleet Maintenance Facility, and the General Corporate Fund paid $700,000 for

the space dedicated to maintenance of the fleet of vehicles owned by General Corporate Fund departments.

FINANCIAL

Fund 350 Dept 010 2015 2016 2016 2017



MISCELLANEOUS $53 $0 $0 $0

371 80 FROM GENERAL CORP FND 080 $47,569 $96,150 $96,150 $0

371 83 FROM CNTY HIGHWAY FND 083 $106,011 $107,139 $107,139 $0

INTERFUND REVENUE $153,580 $203,289 $203,289 $0

REVENUE TOTALS $153,633 $203,289 $203,289 $0

581 1 GEN OBLIG BOND PRINCIPAL $185,000 $195,000 $195,000 $0

582 2 INT &FEES-GEN OBLIG BONDS $16,150 $9,288 $9,288 $0

DEBT $201,150 $204,288 $204,288 $0

EXPENDITURE TOTALS $201,150 $204,288 $204,288 $0

FUND BALANCE


$704 -$227 $0

FY2017 Budget

Champaign County, Illinois Capital Improvement Plan

555

CAPITAL PURCHASES PROJECTS

OVERVIEW

The County’s FY2017 capital budget of $6.6 million includes sixteen funds with Capital Equipment/

Replacement or Improvement Projects/Purchases. An overview of the FY2017 Champaign County Capital

Expenditures Budget, as distributed among the County’s funds is as follows:

Capital Budget by Funds FY2017

RPC & Head Start $64,000

General Fund $272,500

Highway & Bridge Funds $5,133,000

Capital Asset Replacement $852,336

Nursing Home $24,000

Special Revenue Funds $269,500

GIS Consortium $10,625

TOTAL $6,625,961

Through the County’s accounting system, established by the County Auditor, all purchases over $5,000 are

classified as capital expenditures. Therefore, purchases for technology, equipment, and vehicles – which

are recurring expenses, are classified as part of the capital budget. This type of capital expenditure can be

found in many of the special revenue fund budgets, as well as in the General Corporate Fund budget. Of the

$6.6 million capital budget in FY2017, $254,500 is budgeted in special revenue and general funds for

recurring capital purchases.

RPC & Head Start

General Fund

Highway & Bridge Funds

GIS Consortium

Capital Asset Replacement

Nursing Home

Special Revenue Funds

FY2017 CAPITAL EXPENDITURE BUDGET BY FUND

FY2017 Budget


556

The non-recurring capital expenditures are customarily tied to major capital projects, and are typically

budgeted in the construction project budgets and/or highway funds. In FY2017, 77% of the capital budget

is in the Motor Fuel Tax, Highway, and Bridge Funds – a total of $5.13 million. These are bridge and road

construction projects scheduled to be completed in FY2017, as well as capital equipment replacement in the

Highway Fund. Although there are new and different bridge and road projects each year, the Motor Fuel

Tax and Bridge Funds budgets for capital projects remain at fairly constant levels.

IMPACT OF CAPITAL EXPENDITURES ON THE OPERATING BUDGET

The expansion of the County’s facilities infrastructure from 1996-2011 has placed increased demand on the

maintenance and physical plant operations. While the County Board did take into consideration the staffing

needs of the various departments of county government as their office spaces were remodeled or re-

constructed over this 15-year period of building, consideration for the impact on the County’s Physical Plant

staffing and operating budget was not comprehensively addressed.

In 1995 the County’s total facility square footage was 395,599 square feet for six buildings. Based on a

Facilities Condition Assessment conducted in 2015 by Bailey Edward, the County’s facilities and

infrastructure represent an investment of over $160 million and include 25 facilities totaling 841,801 square

feet of space under management. Through the utilization of a Facilities Condition Index the County’s

facility portfolio is rated as “Fair;” however, several facilities have significant deferred maintenance

backlogs and will require substantial funding beyond routine expenditures. Further findings imply that the

annual facilities maintenance investment should average about $3 million; however, the county has only

allocated $532,000 in the General Fund over the past several years and the FY2017 appropriation is status

quo as well. Per the assessment, the projected annual maintenance cost to keep the Facility Condition Index

at the current level is estimated to be $4.5 million.

In October 2016 the County Facilities Committee approved a Facilities Action Plan,

http://www.co.champaign.il.us/2016FacilitiesProposal/PDFS/Facilities_Action_Plan.pdf, which was

prepared by the County Administrator and Facilities Director. The plan was subsequently approved by the

County Board. The 10-year plan establishes a timeline and cost estimates for addressing the backlog of

county-wide deferred maintenance projects which total approximately $22 million. Additionally, the plan

identifies several developmental projects, associated costs and projected timeline. The estimated cost for

the developmental projects is $31 million. Included in the developmental projects are the relocation of

county offices at Brookens Administrative Center to downtown Urbana, garage consolidation, relocation of

the Sheriff’s Office and expansion of the satellite jail which would allow for closure of the downtown jail.

Implementation of the previously mentioned projects would reduce the County’s footprint and generate both

future operational and maintenance savings.

Restricted revenue growth has prevented the County from adequately appropriating for maintenance of

County facilities over the past several years. For that reason, the County Board asked voters to approve a

¼% Facilities Sales Tax in November 2016 which would sunset in 12 years. The revenue from the tax

would generate approximately $4.5 million annually, and the County would immediately be able to

implement the Facilities Action Plan. Unfortunately, the tax was not approved by voters resulting in the

County having limited options to address both its deferred and future facility needs. If the County continues

to underfund facilities maintenance the backlog will grow and further increase the cost to repair or replace

facilities. Internal financing for the proposed projects would be significantly short of fulfilling the majority

of the identified needs. The County will retire a Public Safety Sales Tax bond in 2018, which when

combined with the current annual investment in facilities maintenance would allow the County to bond for

http://www.co.champaign.il.us/2016FacilitiesProposal/PDFS/Facilities_Action_Plan.pdf

FY2017 Budget


557

$13 million on a 10-year bond, or $19 million on a 20-year bond; however, this would leave no flexibility in

County finances for any program needs beyond facilities maintenance.

General Corporate Fund

In general, the County administers its capital improvement program through funds separate from the

General Corporate Fund. The County Board adopts the budget fund by fund, and because most non-

recurring capital projects costs are segregated from the operating budget, changes in the capital projects do

not directly impact the operating budget and vice versa. One exception to this is the purchase of squad cars

for the Sheriff’s Office. The General Corporate Fund goal is to include $230,000 annually for the purchase

of new squad cars. This enables the Sheriff to turn over his entire fleet every five years. However, in

FY2017 the county faced challenges in balancing the General Fund and appropriation for squad car

replacement was $145,000. It should be noted that due to budget cuts in FY2016, there was no

appropriation for squad car replacement.

CAPITAL PURCHASES PROJECTS FUNDS

This section describes the source for each fund which includes capital projects/purchases in the FY2017

budget, and the amount of the FY2017 capital budget. Purchases for these funds are subject to the County’s

Purchasing Policy and/or to state law regarding purchases by governmental entities. The County’s

accounting system establishes all purchases with an initial cost of $5,000 or more be paid for from capital

expenditure line items, which means that a substantial amount of the budgeted capital within the funds that

include operations are for purchase and replacement of technology, furnishings and other special equipment

needs.

GENERAL CORPORATE FUND - The principal operating fund for financing most of the County’s capital

activities for which there is no specific tax levy or user fee. The General Corporate Fund receives revenues

from property taxes, sales taxes, state shared revenues, fees, fines, intergovernmental revenue, and inter-

fund transfers. The FY2017 budget for capital is $272,500. Of this amount, $120,000 is appropriated for

ADA improvements at the Sheriff’s Office, Correctional Center and Adult Detention Center.

SPECIAL REVENUE FUNDS -

Capital Asset Replacement Fund – Created through monies transferred from the General Corporate

Fund, Public Safety Sales Tax Fund, and other special revenue funds to establish a reserve for the

current and future replacement of technology, equipment and facilities. The FY2017 budget for

capital is $852,336 and includes the $532,261 appropriation for capital facilities projects.

Circuit Clerk Operation and Administration Fund – This fund is required by the Clerk of the

Courts Act Section 27.3d and is to be used to offset the costs incurred by the Circuit Court Clerk that

are associated with the collection and disbursement of funds to state and local governments. The

FY2017 budget for capital is $15,000.

Circuit Clerk e-Ticketing Fund - This fund has been established in accordance with 705 ILCS

105/27.3e, as amended by Public Act 96-1210 effective January 1, 2011. The fee shall be used to

defray expenses related to the establishment and maintenance of electronic citations – the process of

transmitting traffic, misdemeanor, municipal ordinance, conservation, or other citations and law

enforcement data via electronic means to the circuit court clerk. The FY2017 budget for capital is

$115,000.

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County Bridge Fund – Property tax revenue source fund for building and maintaining county

bridges. The FY2017 budget for capital is $1.5 million.

County Highway Fund – Property tax revenue source fund for building and maintaining county

highways. The FY2016 budget for capital is $383,000.

County Motor Fuel Tax Fund – State shared revenue from motor fuel taxes for construction and

maintenance of county highways. The FY2017 budget for capital is $3.25 million.

County Treasurer Automation Fund – Fee generated on parcels sold at the annual tax sale, and on

non-homeowner requests for duplicate bills. The FY2017 budget for capital is $5,000.

Recorder Automation Fund – Fee for automating records in the Recorder’s Office. The FY2017

budget for capital is $85,000.

GIS Consortium Fund – Intergovernmental joint venture, funded through membership fees and

services fees. The FY2017 budget for capital is $10,625.

Head Start Fund – Federally funded education and development program for low-income pre-

school children and their families. The FY2017 budget for capital is $22,500.

Jail Commissary Fund – The Jail Commissary Fund is comprised of revenue from detainee

utilization of the commissary, donations and gifts, and investment interest earnings to be used to

provide detainees with items that are not supplied by the Jail. The FY2017 budget for capital is

$45,000.

County Clerk Election Assistance Grant - Revenue is anticipated from at least two grants in

FY2016. The Illinois State Board of Elections Voter Registration State Grant and the Voting Access

for Individuals with Disabilities (VAID) V grant. The funds will be used to purchase election

equipment. The FY2017 budget for capital is $4,500.

Regional Planning Commission – The fund includes federal and state grants for economic

development, community services, senior services, transportation engineering and police training,

plus local contracts for planning and other technical assistance. The FY2017 budget for capital

purchases is $41,500.

ENTERPRISE FUND

Nursing Home Fund – Fund established for the operation of the Champaign County Nursing Home.

Primary revenue sources are from Medicaid and Medicare payments, private pay fees and property

taxes. The FY2017 budget for capital is $24,000. This appropriation is significantly short of the

necessary investment in capital for the Nursing Home; however, based on budgeted census for

FY2017 the home does not have adequate revenue for additional capital appropriations.

SUMMARY

The total of all capital purchases budgeted in the FY2017 Champaign County Budget is $6,625,961 – 5.21%

of the total FY2017 budget.

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559

COURTS CONSTRUCTION FUND Fund 303-010

This Fund was created in FY1999 as the capital projects fund for the construction and remodeling of the

Champaign County Courthouse and Courthouse Addition.

BUDGET HIGHLIGHTS

In FY2015, replacement of all the windows in the original 1901 Courthouse building was completed.

In FY2016 there is $255,000 budgeted with the prioritization for that expenditure to be recommended by the

Facilities Director and the County Facilities Committee based on the Facilities Condition Assessment and

ADA Compliance Project costs delivered by Bailey Edward Architects. It is estimated that the cost of ADA

compliance requirements for the courthouse will be approximately $80,000. Approximately $45,000 was

expended in FY2016 for courthouse mechanical controls and improving the wireless capabilities for staff

and visiting attorneys.

In FY2017, $60,000 is budgeted in Court Facility Repair/Maintenance to address any outstanding ADA

issues, and to reseal the parking lot which was originally scheduled and budgeted for in FY2015.

FINANCIAL

Fund 303 Dept 010 2015 2016 2016 2017



363 10 GIFTS AND DONATIONS $16,308 $0 $0 $0

MISCELLANEOUS $16,510 $250 $500 $250

REVENUE TOTALS $16,510 $250 $500 $250

533 2 ARCHITECT SERVICES $29,486 $0 $0 $0

533 33 TELEPHONE SERVICE $552 $0 $0 $0

534 25 COURT FACILITY REPR-MAINT $159,465 $255,000 $125,570 $60,000

SERVICES $189,503 $255,000 $125,570 $60,000

EXPENDITURE TOTALS $189,503 $255,000 $125,570 $60,000

FUND BALANCE


$439,110 $314,040 $254,290

A fund balance in a construction fund simply reflects funds that remain available for the purpose of

construction of the particular project. The anticipated change in fund balance at the end of each fiscal year

is attributable to spending these project funds on appropriate Courthouse related projects. Eventually, the

funds will be depleted and the fund will then be closed.

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