2023-84 An Ordinance Adopting the Fiscal Year 2024 Budget and Appropriating Monies for the Purpose of Defraying the Expenses of Departments and Funds of the City of Decatur, Illinois for the Fiscal Year Beginning January 1, 2024

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in Financial Management DATE: 12/4/2023 MEMO: TO: Honorable Mayor Moore Wolfe and City Council Members FROM: Scot Wrighton, City Manager Ruby James,City Treasurer&Chief Financial Officer SUBJECT: Ordinance Adopting the Fiscal Year 2024 Budget and Appropriating Monies for the Purpose of Defraying the Expenses of Departments and Funds of the City of Decatur,Illinois for the Fiscal Year Beginning January 1,2024,and Ending December 31, 2024 SUMMARY RECOMMENDATION: The City Manager recommends City Council adopt the attached Ordinance approving the budget for the fiscal period beginning January 1,2024 and ending December 31,2024. In accordance with City Code Chapter 18.1, adopted by Ordinance No. 2019-119, September 3, 2019, and in compliance with Illinois Municipal Code,the City of Decatur operates under the budget method for appropriations. Under the budget method of appropriation, Council adoption of the budget ordinance will provide the City with the legal authority to expend monies for outstanding claims and obligations as defined in the budget. BACKGROUND: The City Manager presented the 2024 proposed City Manager's Budget to City Council members at Council Study Sessions on November 13,2023,and November 15,2023.The budget document has been available for public inspection since November 1, 2023,on the City Web Site and in hard copy form in the City Clerk's and City Treasurer's Office. On November 20,2023,the City Council tentatively decided to set the 2024 property tax levy at 3%above the current property tax level.The initial recommended budget included a 7%increase,so this change required revisions to planned expenditures. The major changes made to the recommended budget since the council last examined and discussed the budget almost exclusively are those made to balance the budget based on the City Council's desire to have a smaller property tax increase,and to take a slower approach to new taxes in the General Fund. These changes have been incorporated into the revised budget document which is available via link. They are also summarized in the fund summaries in the packet materials. Since there are comparatively few changes, staff has not reproduced the entire budget in the council packet. The amended version is available on the city's website and via link. As mentioned during the budget study sessions,the budget is a revenue and expenditure plan. Changes to tax levies,creation of new taxes,new contracts and capital projects,etc.,all require separate votes by the City Council to proceed and achieve final adoption.Because the principal fiscal stress on the property tax levy is created by public safety pensions,it will eventually be recommended that some new revenues be completely(100%)dedicatdd to paying public safety pension costs. On November 25,2023,the city published notification in the Decatur Herald&Review newspaper of a public hearing in the matter of the annual budget ordinance to be held at the council meeting of December 4,2023. The public hearing will occur at the council meeting on December 4,2023.Following the hearing,the budget will be ready for adoption. If the council wishes,they can make additional amendments on the floor,prior to final approval. The latest(linked and website)version of the FY2024 budget does not include the city manager's transmittal memo. This last piece will be added after council adoption,and before adopted versions are distributed. The FY 2024 budget can be found at the following link: