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