The proposed budget referred to in the preceding section shall set forth for each fund: All proposed expenditures for the administration, operation and maintenance of all departments and agencies for which appropriations are to be made or taxes levied by the Council; all expenditures for capital projects to be financed by bonds, tax levies, grants-in-aid or other means during the fiscal year; all interest and debt redemption charges during the fiscal year; and the actual or estimated operating deficits from previous fiscal years. In addition thereto, the proposed budget shall set forth for each fund the anticipated income from all sources, available surpluses, and other means of financing such expenditures for the ensuing fiscal year, the total of which shall be not less than the total proposed expenditures from such fund.
The proposed budget, as submitted to the Council, shall consist of two parts, as follows, and be submitted to the City Council on or before March 15th of each year:
A. 
Part 1 shall contain a statement in which the City Manager shall explain the principal items in the budget and the factors affecting the program, discuss the City's financial status in relation to its activities program for the coming year and recommend a financial policy for summarizing the proposed expenditures and anticipated income for the coming year, together with comparisons showing the actual expenditures and income for the last completed fiscal year and the latest estimated figures for the whole of the current fiscal year and may include suitable statistical tables to indicate trends.
B. 
Part 2 shall contain the following items:
(1) 
Actual expenditures for the last completed fiscal year;
(2) 
Estimated expenditures for the whole of the fiscal year in progress; and
(3) 
Amounts required for the coming fiscal year.
(4) 
Departmental work programs for the ensuing fiscal year and explanations of increases or decreases in budget items recommended.
(5) 
Detailed estimates of the anticipated income for the fiscal year, with revenue data for the current and last complete preceding year properly arranged for comparative purposes.
(6) 
A statement of the bonded and other indebtedness of the City government, showing the debt redemption and interest requirements.
[Ord. No. 2005-29]
The Council may revise, alter, increase or decrease the items of the proposed budget; provided, that when it increases the total proposed expenditures, it shall also make definite provision to increase the sum of the anticipated income so that the total means of financing the budget of such fund shall at least equal the aggregate proposed expenditures of such fund. When the Council makes such changes, it shall issue a statement setting forth clearly its action thereon. Final action shall not be taken on the budget until at least one public hearing has been held thereon. A public notice shall be published in a newspaper of general circulation in the City at least 10 days previous to the time set for the hearing. After the public hearing, the Council may further amend the appropriation ordinance before final adoption.
A. 
On or before the date of submitting the proposed annual budget, the City Manager shall submit to the Council a Five Year Budget consisting of an estimate of the amounts required during the next five years for:
(1) 
Departmental operation and maintenance;
(2) 
Debt service and other fixed charges;
(3) 
Replacement of capital assets; and
(4) 
Capital outlays for public improvements, permanent properties and equipment.
B. 
The budget shall also indicate the means by which the proposed expenditures can be financed.
C. 
The Council shall consider the Five Year Budget and shall adopt it after public hearings and such revision thereof as may be deemed wise provided that no appropriation or tax levy shall be made therein. Each year in the preparation of the budget, the City Manager shall include in the proposed Annual Budget for the ensuing fiscal year such items from the previously adopted Five Year Budget as he may deem wise. At the same time, he shall propose to the Council a revision of the Five Year Budget and the extension of the same over an additional year, to the end that the City may have at all times a budget plan for meeting the City's needs for five years in the future.
[Ord. No. 2013-85]
A. 
Purpose. This ordinance is intended to set forth guidelines the City Council will use to determine the contributions needed to fund pension benefits for its Police and Fire employees as required by State law under Articles 3 and 4 of the Illinois Pension Code. This ordinance is further intended to:
(1) 
Ensure that the pension funds have sufficient assets on hand to pay all benefits due;
(2) 
Minimize the annual volatility of budgeted contributions;
(3) 
Provide for equity among different generations of taxpayers with respect to bearing the costs of pension contributions;
(4) 
Ensure that all statutory funding requirements are satisfied; and
(5) 
Provide for full funding of pension liabilities.
[Ord. No. 2013-85]
B. 
Fund contributions.
(1) 
In order to achieve the objectives set forth in Subsection A and beginning with the budget for fiscal year 2015, the City Council will begin phasing in a process by which contributions to Police and Fire pension funds are based upon Actuarially Determined Employer Contributions (ADEC) prepared in accordance with Subsection C of this chapter. In the period from fiscal year 2015 through fiscal year 2019, the City will move gradually from contributing to these pension funds based upon the statutory minimum required by law, to basing them upon the ADEC, with contribution levels based entirely upon the ADEC occurring no later than fiscal year 2019.
(2) 
Pension contributions will be funded through the annual property tax levy. The Finance Director shall include the ADEC in the tax levy estimate provided annually to the City Manager and City Council.
(3) 
The City Manager and Finance Director shall communicate the ADEC to both the Police and Fire pension boards prior to the adoption of the tax levy by the Council.
[Ord. No. 2013-85]
C. 
Actuarially determined employer contributions; preparation and assumptions.
(1) 
The Finance Director will utilize the services of a certified independent actuary to calculate Actuarially Determined Employer Contributions each year, beginning with the May 1, 2013 actuarial valuation. The annual valuation will be prepared in compliance with all applicable Actuarial Standards of Practice and completed by October 1. The certified independent actuary shall also calculate the statutory minimum contribution as required by the Illinois Pension Code.
(2) 
The ADEC shall be determined using the following funding method elements:
(a) 
Long term outlook. The City will use a thirty-year closed period to amortize its unfunded pension liabilities. Said closed period shall extend from May 1, 2011 through May 1, 2041.
(b) 
Assumptions. The ADEC shall be calculated using the following assumptions:
[1] 
Interest rate: 7%.
[2] 
Actuarial cost method. The Entry Age Normal (EAN) actuarial cost method required by the Government Accounting Standards Board will be used to determine the Normal Cost as well as the Actuarial Accrued Liability.
[3] 
Amortization method. A level percent of pay assumption of 4% will be used to amortize existing unfunded pension liabilities.
[4] 
Asset valuation method. In order to minimize the impact of investment volatility on the ADEC, an asset evaluation method utilizing a five year smoothing for investment gains and losses will be used.
[5] 
Level of funding. The ADEC will be calculated using a target funding ratio of 100%.
[Ord. No. 2013-85]
D. 
Review of pension funding ordinance. The City Manager or Finance Director shall review this ordinance at least annually, examining its effectiveness and determining whether any modifications are necessary to ensure the ordinance is acted upon in conformance with accounting standards, best practices and changes in legislation.
[Ord. No. 2013-85]