Special Board of Aldermen 6-13-2022 Page 2
totaling $2.33 million, enterprise funds which total $1.85 million, capital project funds. Capital project funds are in here
because the Board of Aldermen is approving the borrowing allowing the Mayor and |, City Treasurer to borrow funds
to construct several of our projects. The total amount is listed as $76,399,000. | am going to pass out, if you’ll let me,
an exhibit that details each one of those Resolutions and the amount of the Resolutions. Some of the Resolutions
you're going to be very familiar with - $21 million for the TIF for the Riverwalk Project, $37.5 million for the bond
paving program, but there are others as well. They add up and they're for good purposes. So essentially you get the
total - supplemental appropriations you add the two together and you get that little over half a billion and then you
move on to Fiscal ’23 which is the Mayor’s proposed budget.
Using the same ingredients you’ve been reviewing over the last several weeks — the general fund appropriation
proposal, enterprise funds, special revenue funds including the grants. Because of the amount of ARPA funds we
received fortunately by the US Treasury and what’s called the ESSR funds on the school side, we’ve had a reduction
in the number of grants but we still have the mainstays which I’ve reviewed with the Committee a few weeks ago
reviewing the grants that we have. The interesting part of the grants is the Board of Aldermen not only accepts the
grants but they appropriate the grants. So it’s very important note as we proceed with this discussion.
So if we move forward with the Fiscal 23 the total appropriations at the front first two pages of this particular
Resolution is the $406,663,584. The reason why there’s nothing in the supplementals is you haven't had the
opportunity to supplement the budget yet. As we do, part of the calculation would be to add that supplemental
appropriation and inform the Board how much under the cap we remain. Very consistent with the prior calculations of
spending caps that I’m familiar with. We get into the calculation, we have the total Fiscal ’22 appropriations, which is
the original appropriation of the budget and the supplemental appropriations. You take that number and the cost of
living or the adjustment that we are allowed to make is referred to as “the State and Local Government Implicit Price
Deflator”. It was a replacement of what you may recall the CPIU Northeast. The residents of the City voted for that
thinking that might be a better description of how your budget should increase relative to State and local government
spending. So that number is 2.8. So if you take the 2.8, multiple it by the total appropriations online 19, you get about
$14.1 million, add that to the appropriations, and add that to the base which is $520 million, or to get $520 million
subtract the current budget on line 5 under the Fiscal ’23 column. You end up with about $113 million under the cap
for this calculation.
So this approach is what is what | refer to as “gross basis budgeting” from the municipal guidance. | think the issue is
that the municipal guidance for accounting and finance sometimes differs from the possible uniqueness to a spending
cap calculation. Attorney Bolton and | have had discussions on that and he is prepared to explain that difference but
what | wanted to do is go through the mechanics. If | may, | will pass out that exhibit that will further detail the
calculation of the supplemental appropriations that have been passed through the Fiscal ’22 period.
So if | may, the first thing | want to do is apologize for how small this font is but | really didn’t have time to put it on — it
really looked good on 11x17. Essentially this is the entire calculation. It’s got the description left hand side. It’s got
the Resolution numbers. It’s got the broken out by General Fund, Special Revenue Funds, Grant Funds, TIF District.
People are very interested in that being budgeted and appropriated. Capital Project Funds — that’s the lion’s share of
that Supplemental Appropriation. You’re probably familiar with most of those Resolutions and then the Enterprise
Funds. From time to time are supplemented during the year, but the totals are on lines 23 and the creation of base
budgets on line 26. You can see that on the right-hand side if we take the total base budget times that percentage,
we get the new cap value.
So that Madam President is a brief overview of how | calculated the spending cap analysis, why | thought it was
important that it get put next to the Resolution because everything ties together, and also included in the Resolution
were the guidance of the Mayor and Corporation Counsel. | put in there the spending cap pages so you don’t have to
look at the big book and figure out what page it’s on, etc. So with that, I’d be happy to answer any questions.
President Wilshire
Questions? Alderman Dowd?
Alderman Dowd
Just out of curiosity based on what’s happening with the economy right now, where is the SNLIPD going up or down?
John Griffin, CFO/Treasurer/Tax Collector
The SNLIPD is going up. And to that point if | may, that particular metric is a three year average. So if you can
