The Offices of the Administration, Community Development, Finance

The oﬃces of the Administration, Community Development, Finance, and Parks & Recreation Departments of the Village are headquarted at the Lake in the Hills Village Hall, 600 Harvest Gate.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET TABLE OF CONTENTS

Village’s Mission Statement...... 4 Distinguished Budget Award...... 5 Letter from the Village Administrator ...... 6

Summary of All Funds

All Funds Revenues ...... 18 Summary by Revenue Type...... 20 All Funds Expenditures...... 22 Summary by Expenditure Type ...... 24 Fund Balance Projections ...... 26 Capital Projects Budgetary Impact ...... 29 Capital Outlay Summary...... 31

General Fund Summary

General Fund Revenues ...... 33 General Fund Expenditures...... 46 General Fund - Fund Balance Chart ...... 48

General Fund Detail

Executive Department...... 50 Administration Department...... 53 Community Development Department...... 57 Finance Department...... 65 Management Information Systems ...... 70 Parks and Recreation Department...... 73 Police Department...... 84 Public Works Department...... 91 Professional Contractual Services...... 103 Insurance and Tort ...... 107 Interfund Transfers...... 109

Other Funds Detail

Motor Fuel Tax Fund...... 112 Special Service Areas ...... 116 Debt Service Fund...... 133 Lake Restoration Fund...... 136 Water Capital Improvement Fund ...... 141 Water Operating and Maintenance Fund ...... 144 Airport Capital Improvement Fund ...... 153 Airport Operating and Maintenance Fund ...... 157 Health Insurance Fund ...... 163 Police Pension Fund...... 166

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET TABLE OF CONTENTS

Appendices

Appendix A - Nuts and Bolts of Budgeting ...... 169 Appendix B - Budget Calendar...... 170 Appendix C - Financial Policies ...... 172 Appendix D - Organization Chart...... 179 Appendix E - Personnel Information ...... 180 Appendix F - Full-time Salaries Budget Projections ...... 181 Appendix G - Community Profile...... 184 Appendix H - Chart of Accounts ...... 186 Appendix I - Glossary...... 193 4

The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the Village of Lake in the Hills, Illinois for the Annual Budget beginning January 1, 2011. In order to receive this award, a governmental unit must publish a document that meets program criteria as a policy document, as an operations guide, as a financial plan and as a communications device.

The award is valid for a period of one year only. We believe our current budget continues to conform to program requirements and we are submitting it to GFOA to determine eligibility for another award.

VILLAGE OF LAKE IN THE HILLS Office of the Village Administrator

Memorandum

To: Village President Plaza and Members of the Village Board of Trustees Copy: From: Gerald D. Sagona, Village Administrator Date: November 8, 2011

Subject: January 1, 2012 to December 31, 2012 Budget

On November 29, 2012 the Village of Lake in the Hills will celebrate its 60th anniversary of being incorporated as a municipal government. What started off as a small residential community with farms dotting the surrounding landscape, Lake in the Hills has developed into a vibrant community of approximately 30,000 residents that offers to all a high quality of life, exceptional village services, and numerous amenities.

The year 2012 will also mark the twelfth (12th) year in a row, the Village of Lake in the Hills has been notified by the Government Finance Officers Association that it has received the Distinguished Budget Presentation Award. The GFOA established the award in 1984 to encourage and assist state and local governments to prepare budget documents of the very highest quality that reflect both the guidelines established by the National Advisory Council on State and Local Budgeting and the GFOA’s recommended practices on budgeting and then to recognize individual governments that succeed in achieving that goal.

In keeping with the standards established by the GFOA, I am pleased to present to you the Fiscal Year 2012 budget. This memorandum will provide you an executive summary of the budget and the various projects and programs contained therein.

OVERVIEW

The official start date of the budget season began on the morning of August 10, 2011 with the distribution of the instruction manual containing worksheets and templates for the preparation of the individual department requests.

The department requests were returned to me on September 9, 2011. Over the next month, I met with the departments and reviewed the submissions with them. As in prior years, the departments have the flexibility to develop their detailed line-item budgets as appropriate, within the parameters of last fiscal year’s expenditures. After adjusting the requests to account for anticipated revenues and to meet the service needs of the community, I have developed a recommendation for a balanced budget.

6 GENERAL FUND REVENUES

General Fund Revenues are estimated to be $15.72 million dollars during FY2012 which is approximately $698,000 less than the prior year. In 2011 the Village saw one time development revenues from the Residences of Lake in the Hills, a 92 unit housing development at the southeast corner of Village Hall Drive and Harvest Gate.

With our local economy still suffering, proposed is a 1.2% reduction in the property tax levy from $5,800,690 to $5,731,560. Sales taxes (1% base rate and .75% home rule rate) are estimated to be $3.506 million which represents an increase of approximately $35,000 over revenues received in FY2011. The following chart summarizes the amounts received from Sales Tax (including Home Rule Sales Tax) from FY2004 to our estimates for FY2012.

Sales Tax Revenue

$4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12

It should be noted that the Village’s sales tax rate is the lowest amongst municipalities with commercial developments along Randall Road. The Village’s combined general merchandise rate is 7.75%. The following is a comparison of rates along the Randall Road corridor:

Elgin (Cook) 9.25% West Dundee 8.50% Carpentersville 8.50% Algonquin (Kane & McHenry) 7.75% Crystal Lake 7.75% Elgin (Kane) 7.75% Lake in the Hills 7.75%

Use tax is a tax imposed on any item of tangible personal property that is purchased anywhere at retail. This revenue source is collected by the Illinois Department of Revenue and forwarded to the Village on a per capita basis. For the 2012 fiscal year, a 4.5% increase is projected that will result in $448,620 in use tax revenue. Also based on population is the income tax. For FY2012, an $119,560 decrease is projected that will result in $2,181,880 in income tax revenue. It should be noted that in FY2008 the Village received $2,763,715 in income tax revenues. Until the state unemployment rates improve, or the tax rate is increased, the continued downward trend in this revenue source will result in additional financial implications for the Village.

7 The Simplified Municipal Telecommunications Tax, which on January 1, 2003 combined the utility tax on telecommunications and the infrastructure maintenance fee, is estimated to generate a total of $874,500 in revenue for the 2012 fiscal year. This is a decrease of $17,850 from last year’s estimated revenues.

Building permit revenue is based on the estimated construction of nine (9) new homes, two (2) commercial developments, and other miscellaneous commercial and residential projects. This level of activity is projected to result in $148,000 in building permit fee revenue. The following chart summarizes building permit fees collected/anticipated from FY2004 to FY2012:

Building Permit Revenue

$800,000

$600,000 $400,000

$200,000 $0 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012

Other development-related revenues including park fees, road impact fees, and public building fees are expected to generate an additional $30,430.

Grant revenue anticipated for the 2012 fiscal year totals $39,550 and can be summarized as follows:

Tobacco Enforcement Grant $ 1,100 Body Armor Grant $ 1,860 IEMA CERT Grant $ 4,080 Traffic Enforcement Grant $ 32,510 TOTAL $ 39,550

For providing police dispatching services to other municipalities, a total of $303,260 is projected to be received; $140,710 from the Village of Huntley, and $49,940 from the Village of Fox River Grove, $110,200 from the City of Marengo, and $2,410 from the Village of Union.

A total of $527,810 is projected to be received for Parks & Recreation program registration fees. This is an increase of approximately 5.5% over last fiscal year’s estimated revenue. Increases in registrations are expected as the department’s marketing efforts are enhanced.

During FY2008 the Village began receiving revenue from the Red Light Photo Enforcement program. The cameras had been installed at the following intersections: Randall/Miller, Randall/Acorn, and Algonquin/ Hilltop. In FY2010, the cameras at Randall/Miller and Algonquin/Hilltop were deactivated. The FY2012 revenues are estimated to be $54,000 for the camera at Randall/Acorn.

Vehicle Impoundment Fees and Bail Bond Fees were created in FY2007 and revenues are anticipated to be $107,550 during the fiscal year.

8 GENERAL FUND EXPENDITURES

The FY2012 General Fund Budget as presented has a surplus $26,460 with revenues estimated at $15,722,950 and expenditures estimated at $15,696,490. The fund balance is anticipated to be $6,288,708 at the conclusion of the fiscal year. This amount meets our policy of maintaining a fund balance of at least 25% of General Fund expenditures in the prior fiscal year as provided for in section 3.13E of the Lake in the Hills Municipal Code.

The following provides a summary of budgeted expenditures.

Personnel In FY2010, a building inspector position was eliminated in the Community Development Department and a community service officer position in the Police Department budgets. In FY2011, three full time police officers and a sergeant were eliminated along with the permit coordinator in the Community Development department. Also in FY2011, a full time dispatcher was added in the Police Department to handle the increased call volumes due to the Marengo and Union contracts as previously mentioned. In FY2012 there are no additional full time positions requested. The village’s approved full time staffing from FY2005 to FY2012 can be seen on the chart below:

Full Time Positions

FY2005 123

FY2006 124

FY2007 127

FY2008 129

FY2009 124

FY2010 122

FY2011 118

FY2012 118

Having forgone a wage increase for the last two fiscal years, the budget reflects that all non- represented employees will receive a 2% Cost of Living Adjustment (COLA) effective January 1, 2012 along with the possibility of a merit adjustment in July of 2012. The wages for employees represented by the Service Employee International Union (SEIU) and Metropolitan Alliance of Police are spelled out in their respective contracts. The Village’s contribution to the Illinois Municipal Retirement Fund (IMRF) has decreased from 11.31% to 10.82%.

The health insurance program was changed to a partially self-funded plan in July, 2008. This saved the Village approximately 2% in annual premium costs in FY2009. Since that time, additional plan design changes including increasing out-of-pocket maximums, increasing office visit copays, increasing prescription copays, shifting more costs to the partially self-funded plan, eliminating the HMO plan stipends, increasing employee contributions, and adding an HSA compatible high- deductible health plan option have further reduced premium increases. Premium increases were

9 reduced by 6% at the July, 2009 renewal, 13% at the July, 2010 renewal, and 6% at the July, 2011 renewal. A ten percent increase in cost has been included in the budget, effective July 1, 2012. The employees’ health insurance premiums are based on an employee contribution of 15% of the premium for the PPO plan and 5% for the HMO and Health Savings Account (HSA) compatible high deductible health plan.

Executive Department The Executive Department budget ($100,990) includes the stipends for the elected officials. Monies have been budgeted to allow the elected officials to attend the annual Illinois Municipal League conference in Chicago. The Village will maintain memberships in the Illinois Municipal League, the McHenry County Convention and Visitor’s Bureau, the McHenry County Council of Governments, and the Algonquin/Lake in the Hills Chamber of Commerce. Included is funding for a Volunteer Recognition event for the elected officials to express their appreciation to all the volunteers that help out at our special events.

Administration Department The Administration Department budget ($462,470) includes the salaries of the Village Administrator, Assistant Village Administrator and Administrative Assistant. Also included are the expenses of the Business Relations Committee that was created in April, 2003. The department is responsible for the publication of the community wide newsletter and updating of the village’s website.

No capital purchases are requested in this department.

Community Development Department The Community Development Department budgets of $601,560 provide for building inspection, code enforcement and community planning activities. The Department’s budget includes the stipends for the Planning and Zoning Commission members and monies for the staff to attend training and educational conferences.

As previously indicated, the permit coordinator was eliminated in FY2011. A part-time code enforcement officer position was created to allow the Building Commissioner and Building Inspector additional time to review permits. In FY2012, the building inspector will retire and a new employee will be recruited to fill that full time vacancy.

No capital purchases are requested in this department.

Finance Department and MIS The Finance Department budget of $597,010 and MIS Department budget of $84,930 include the expenses related to our financial functions and general computer operations.

The Finance Department is responsible for the administration of the fiscal operations of the Village. These responsibilities include the recording and reporting of all financial transactions, billing and collecting all monies due to the Village, making payments to employees and vendors, management of Village funds, assisting in the preparation of the annual operating budget, preparing the annual financial report, and financial forecasting. Additionally, Finance Department personnel administer the Village’s medical benefit plan, the Police Pension plan, the risk management plan, and track

10 letter of credit expiration dates, renewals, and draws. The Finance Department oversees the administration of water billing in the Village.

A quarterly management training program is proposed at a cost of $2,940 which will benefit all supervisors and department heads in the organizations. Training topics will include: leadership, supervision, customer service and business strategy.

No capital purchases are requested in this department.

The MIS budget includes attendance at the Sungard Pentamation user conference. The consultant’s cost for network support and maintenance reflects an increase in the hourly rate from from $92.00 per hour to $109.00. In order to lessen the burden on the village’s T-1 phone lines, provide redundancy, and improve services, $2,940 has been included to cover the cost of Comcast Business Class internet services at both the Public Works Department and Police Department facilities. Nine personal computer work stations and five laptop computers need to be replaced along with miscellaneous hardware for a total cost of $15,720.

Parks and Recreation Department The Parks and Recreation Department will celebrate its sixteenth (16) year of operation in FY2012. The budgets for the department total $1,546,140.

The Administration Division budget includes $60,660 for the Village's membership in the Northern Illinois Special Recreation Association (NISRA). NISRA provides year round recreation activities for people with disabilities. Since 1976, children and adults of all ability levels have enjoyed socializing, building skills and having fun in hundreds of weekly programs, special events, camps and trips each year. The remainder of the budget remains relatively unchanged from the prior year.

In FY2007, an account was created called Personal Services Reimbursement. Work performed on Parks by Public Works employees will be charged to the Parks Division on a monthly basis as the work is performed. In prior years, the percentage of work to be performed on parks was estimated and charged to the Parks division through the Salaries Full Time account equally throughout the year based on those pre-determined percentages. It is estimated that $198,700 in labor costs will be associated with the maintenance of the park and recreation fields, equipment and facilities. The Village’s contracted mosquito abatement program is included in the budget for $33,250. Capital expenses include the installation of a bike path link in Sunset Park ($5,840) and two (2) drinking fountains to be installed at Ken Carpenter and Ford School parks for a cost of $6,970.

The Recreation Division budget includes funding for the Summer Concert Series, the 13th Annual Run Thru the Hills 5k/10k run race and the 6th annual Village Triathlon. The 12th Annual Summer Sunset Festival is budgeted for the weekend of August 31st to September 2nd. A new pier ($15,500) is included at Indian Trail Beach to replace one that is rotting.

Police Department The Police Department budgets will total approximately $7,395,120 during the course of the fiscal year. The Police Commission budget of $1,840 covers the operational costs of the commission.

11 In FY2010, the Administration and Operations budget eliminated a community service officer position and added a part-time dispatcher. In FY2011, four sworn officer positions have been eliminated from the budget and a sergeant was placed in the position of police officer. A dispatcher position was added to handle the increased call volume related to providing dispatching services to Marengo and Union.

An employee awards recognition dinner has been included in the budget ($2,000) to recognize achievements.

Rental Contracts includes $53,940 for the cost of the lease for the Red Light Photo Enforcement program. Cameras are installed at the intersection of Randall and Acorn. Capital equipment purchases in the department include:

Update Main and Local Receivers $11,150 Squad Video System (12) $37,200 Automated External Defibrillator (3) $3,300 6 – Kenwood portable radios $9,060 4 – Kenwood mobile radios $10,400 ID Translator $2,580 Photocopier $7,500 TOTAL $81,190

The department budget also includes $11,000 for computer hardware and $105,390 to replace four squad cars. The vehicles being replaced have far in excess of 100,000 miles per vehicle.

Public Works Department The Public Works budgets, consisting of Administration, Streets and Public Properties total $3,321,630. The administration division budget of $298,530 includes funding for the overall administration of the department as well as the General Fund portion of the contract inspector’s salary. A control station to provide base radio capability for communications during emergency events is requested at a cost of $2,200, with half of that expense being allocated to the Water Operation and Maintenance fund.

The Streets Division budget of $1,337,330 provides for the maintenance of the Village’s infrastructure including streets, sidewalks, signage, flood control systems, detention, storm sewers, and fleet maintenance. Road salt and related chemicals have been budgeted for $138,360. A drainage improvement project at Indian Trail and Locust Street is included for $42,000. Equipment purchases include an ink jet printer for the sign shop ($10,000), a new pressure washer ($7,800), and a vehicle code scanner ($6,000). Finally, $75,000 has been included to replace a truck that has exhausted its useful life.

The Public Properties Division budget of $1,685,770 provides for the maintenance of Village- owned buildings and public properties, which include: Village Hall, Police Department, Public Works facilities, including well houses, Airport facilities, rental properties, mechanical services, parks, and the urban forest. This Division is also responsible for costs associated with the maintenance and repairs in the special service areas (SSA’s). Personal Services and Equipment Services reimbursement will increase while contracted services will decrease to account for the

12 savings that will be realized by having village employees perform mowing and landscaping services in SSA#3, Sunset Park, Bark Park and the Airport versus having a private contractor perform the work. Capital expenditures of $195,110 include:

o Furnace Replacements and an exhaust system at the Police Department; o Installation of perimeter drainage at the Village owned house at 1111 Pyott Road; o Install a new roof at the Village owned barn at 1109 Pyott Road; o Install a back up generator and door replacements at the Public Works facility; o Replace HVAC Actuators and thermostats at the Village Hall; o Renovations at the Village-owned Annex Building at Oak and Crystal Lake Road; o New mower, snow blower and attachments for the Skid steer and Brush Hog; o Replace Truck #15 which has reached the end of its useful life.

The Other Professional Services - Legal Services budget provides funding for our Village Attorney, Village Prosecutor, and Administrative Hearing Officer. It is estimated that this cost will be $118,400 during the course of the fiscal year.

The Insurance Department will see a significant decrease in premiums from $522,350 in FY2011 to $449,520 FY2012 due to the village’s experience under the general liability insurance and workmen’s compensation insurance programs. The General Fund will be transferring $983,540 to the Debt Service Fund to make the debt payments for the Larsen, Sullivan, and Susong property purchases, and the Public Works Expansion/Renovation.

MOTOR FUEL TAX FUND

Motor Fuel Tax is collected by the State of Illinois and then re-appropriated to the Village based on total population. The projected revenues are $687,910 which is based on $23.75 per capita. The amount budgeted does not include the high growth city distribution. The Village has received this money (approximately $44,000) year after year, however, for conservative budgeting purposes, the revenue is left out. Also included in the budget is $128,000 in grant revenue that will be received under the Highway Bridge Program.

The budget includes funding for the design of the Jesse Road and Hilltop Drive bridge replacement projects ($160,000), pavement crack sealing ($19,000), pavement marking ($33,100), and the 2012 Street Resurfacing program ($692,100) that includes the following streets that are depicted in the images below:

MICHAEL COURT BARBARA COURT KURT COURT VIEWPOINT DRIVE (SIERRA COURT TO GRACE DRIVE) ANDERSON DRIVE (GRACE DRIVE TO JOSEPH STREET) JOSEPH STREET (ANDERSON DRIVE TO ANDERSON DRIVE) DAVID STREET (ANDERSON DRIVE TO ANDERSON DRIVE) BONNIE COURT LISA COURT ELIZABETH COURT WINSLOW WAY (CHANCERY WAY TO NORMANDY DRIVE) POPLAR STREET PLUM STREET (ASH STREET TO CHERRY STREET) HILLTOP DRIVE (ASH STREET TO WILLOW STREET) ASH STREET CHERRY STREET SYCAMORE STREET HEARTLAND GATE

WATER CAPITAL IMPROVEMENT FUND

The Water Capital Improvement Fund was created to collect and disburse monies for the purpose of expanding the Village’s water system to accommodate new development. The primary revenue source is the water tap-on fee, which is a one-time charge for all new connections to the Village’s water system. In keeping with the Village’s commitment to provide a dependable supply of water to its customers, the following capital projects are scheduled to be completed (figures exclude engineering costs):

Project FY2011 FY2012 FY2013 Future* Tower 5 * 0 0 0 2,192,000 Well 18 * 0 0 0 299,000 Well 18 Treatment plant * 0 0 0 5,251,000

* Tower 5 and Well 18 are dependant on future growth and consumption rates

14 To meet this objective, it is recommended that the Village's tap-on fees be increased by 5% to $14,465 for a 1" connection. Based on a minimum 5% annual increase in fees each year, and transferring approximately $1,500,000 over the next 4 years to off-set capital improvement projects in the Water Operating and Maintenance Fund, we would anticipate having a fund balance of roughly $1.9 million dollars at the end of FY 2015 based on projections.

Each year, it is the responsibility of the Superintendent of the Water Division to review development plans, water needs, and projected infrastructure costs to adjust this plan and recommend rate structure changes to ensure the availability of funds to meet all capital improvement requirements.

It should be noted that this information is our best attempt to gauge the future revenues and expenditures associated with this fund. The information is based upon what we believe are accurate estimates supplied by our consulting engineers and is subject to change based upon actual information. Any new annexations or developments should be studied carefully to determine their impact on the water system and the necessary improvements to be made prior to approving the annexation or development.

WATER OPERATING AND MAINTENANCE FUND

The Water Operating and Maintenance Fund provides monies for the maintenance of the Village’s water system. This includes maintenance to the wells, pumps, treatment equipment, towers, and mains that provide the community with clean potable water. The 2012 Water Main Replacement program is budgeted at $950,000 and will replace the water mains in the area depicted below:

CEDAR STREET FROM CHERRY STREET TO BURR STREET BURR STREET FROM PLUM STREET TO EAST OAK STREET MAPLE STREET FROM PLUM STREET TO WILLOW STREET

15 PLUM STREET FROM CHERRY STREET TO BURR STREET PHEASANT TRAIL FROM CRYSTAL LAKE ROAD TO OAKLEAF ROAD HUNTERS PATH FROM CRYSTAL LAKE ROAD TO OAKLEAF ROAD DEER PATH FROM CRYSTAL LAKE ROAD TO OAKLEAF ROAD

In order to fund these improvements, a 5% increase in the water rates is included in the water sales revenue projection. The increase would amount to 63 cents per month for a customer who uses 800 cubic feet of water per quarter (minimum bill).

Also included in the budget are a snow blower, generator, utility line locator, chemical drum scale, two chlorine scales, chlorine modules, and the Water O/M Fund’s portion of the control station repeater and three personal computers for a total cost of $20,050.

AIRPORT OPERATING AND MAINTENANCE FUND The Village oversees the operation and maintenance of the Lake in the Hills Airport. The Airport has one paved runway, 139 based aircraft, and is estimated to receive 40,000 operations (takeoff or landing) next year. The Public Works Department maintains the Airport infrastructure. The Airport Operating and Maintenance Fund revenues reflect a proposed tenant rate increase of 3% and an increase in commercial activity fees by 3% based on current Consumer Price Index data. The Airport Operating and Maintenance Fund also contains an interfund transfer into the Airport Capital Improvement Fund of $22,780 to pay for the local share of the FY2012 capital projects.

AIRPORT CAPITAL IMPROVEMENT FUND The purpose of the Airport Capital Improvement Fund is to segregate the costs of the Airport improvement projects from the normal operating and maintenance expenses of the Airport. It is funded through an interfund transfer from the Municipal Airport Fund as well as Federal and State grants.

Purchase of property for a new airport entrance road and extending the perimeter fencing are scheduled to be completed during the fiscal year. The funding levels that are anticipated for these grant eligible projects are 95% Federal, 2.5% State, and 2.5% Village.

In closing, I would like to acknowledge the time, effort, and support given to me by the department heads and their staff in compiling this budget. Special acknowledgement is due to Director of Finance Pete Stefan and Assistant Village Administrator Shannon Andrews for the time that was spent assisting with the development and refinement of this document.

16 The beauty of Woods Creek Lake in full fall color is shown in this photo submitted by Rolour Garcia for our 2010 village-wide photo contest.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET ALL FUND REVENUES

Revenues Percentage General Fund $15,722,950 65.9% Motor Fuel Tax $819,270 3.4% SSA's $533,940 2.2% Debt Service $983,200 4.1% Lake Restoration $46,680 0.2% Water Capital $184,210 0.8% Water O & M $3,935,850 16.5% Airport Capital Improvement Fund $910,950 3.8% Airport O & M $389,910 1.6% Health Insurance Fund $325,000 1.4% Total $23,851,960

Airport O & M Airport Capital Improvement Fund Health Insurance Fund

Water Capital

Lake Restoration Water O & M

General Fund

Debt Service

SSA's Motor Fuel Tax

18 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

ALL FUND REVENUE SUMMARY

General Fund 15,643,766 15,362,550 15,184,136 16,420,560 15,722,950 15,722,950 Motor Fuel Tax Fund 876,946 3,137,413 985,742 871,180 819,270 819,270 Special Service Area #1 19,803 719 3,371 4,840 5,690 5,690 Special Service Area #2 249,574 251,600 114,086 115,160 119,580 119,580 Special Service Area #3 130,894 107,070 112,285 114,470 118,400 118,400 Special Service Area #4A 31,060 46,405 49,744 51,160 53,460 53,460 Special Service Area #4B 338 1,900 3,769 4,720 5,700 5,700 Special Service Area #5 119,413 105,462 105,162 126,480 119,870 119,870 Special Service Area #6 41,305 40,655 51,268 56,800 56,500 56,500 Special Service Area #7 425 1,327 3,795 3,770 4,730 4,730 Special Service Area #8B 293 178 234 170 160 160 Special Service Area #8C 390 235 1,328 250 220 220 Special Service Area #10 20,002 20,000 20,000 20,010 20,010 20,010 Special Service Area #14 7,501 7,500 7,500 7,510 7,510 7,510 Special Service Area #15 12,258 36,244 12,278 12,240 20,300 20,300 Special Service Area #24 0 0 0 0 1,810 1,810 Debt Service Fund 1,075,346 4,982,036 981,992 1,026,470 983,200 983,200 Woods Creek Lake (Lake #1) 36,053 16,380 15,097 11,660 23,370 23,370 Goose Lake, Willow Lake, & Lake Scott (Lakes #2, 3, & 4) 23,605 13,994 6,008 139,770 23,310 23,310 Water Capital Improvement Fund 464,614 218,492 542,433 287,040 184,210 184,210 Water Operating & Maintenance Fund 3,710,859 3,963,777 3,637,665 3,643,880 3,935,850 3,935,850 Airport Capital Improvement Fund 245,030 7,822,624 3,692,468 456,640 910,950 910,950 Airport Operating & Maintenance Fund 396,351 391,356 678,342 357,170 389,910 389,910 Health Insurance Fund 134,813 276,257 270,005 277,680 325,000 325,000 Police Pension Fund (62,128) 00000

TOTAL REVENUES ALL FUNDS 23,178,511 36,804,175 26,478,710 24,009,630 23,851,960 23,851,960

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET SUMMARY BY REVENUE TYPE

$14,000,000 $13,269,690

$12,000,000

$10,000,000

$8,000,000

$6,000,000 $5,355,090

$4,000,000

$1,352,970 $2,000,000 $1,743,630 $1,168,340 $610,290 $92,960 $258,990 $0 T axes Licenses & Inter- Charges for Fines, Fees & Investment Miscellaneous Transfers Permits Go v ern men t al Services Forfeits Income

Revenue Projections

Various methods are used to project revenues. Certain revenue sources, such as development revenues, are based on the number of new homes expected to be constructed per existing annexation agreements. Water connection fees are also directly related to building permit activity. Other revenue sources, such as liquor licenses and rental/lease income are based on actual numbers of licenses and agreements in place. In general, trend analysis using historical data is used to project revenue sources unless another method is indicated.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET SUMMARY BY REVENUE TYPE

Licenses Inter- Charges Fines, & Govern- for Fees & Investment Taxes Permits mental Services Forfeits Income Misc Transfers Totals General Fund 12,749,990 258,790 39,550 1,398,930 610,290 40,350 597,530 27,520 15,722,950 Motor Fuel Tax 815,910 3,360 819,270 SSA # 1 5,200 490 5,690 SSA # 2 115,500 4,080 119,580 SSA # 3 115,500 2,900 118,400 SSA # 4A 52,500 960 53,460 SSA # 4B 5,600 100 5,700 SSA # 5 117,800 2,070 119,870 SSA # 6 55,200 1,300 56,500 SSA # 7 4,600 130 4,730 SSA # 8B 100 60 160 SSA # 8C 100 120 220 SSA # 10 20,000 10 20,010 SSA # 14 7,500 10 7,510 SSA # 15 20,100 200 20,300 SSA #24 20 1,450 340 1,810 Debt Service 983,200 983,200 Woods Creek Lake 20,140 3,230 23,370 Goose, Willow, 20,140 3,170 23,310 Scott Water Capital 172,610 11,600 184,210 Water O&M 200 3,665,090 9,050 127,010 134,500 3,935,850 Airport Capital 888,170 22,780 910,950 Airport O&M 78,180 6,250 305,480 389,910 Health Insurance 3,500 321,500 325,000 Total Revenues 13,269,690 258,990 1,743,630 5,355,090 610,290 92,960 1,352,970 1,168,340 23,851,960

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET ALL FUND EXPENDITURES

Expenditure Percentage General Fund $15,696,490 65.4% Motor Fuel Tax $924,230 3.9% SSA $446,530 1.9% Debt Service $983,200 4.1% Lake Restoration $10,820 0.0% Water Capital $134,500 0.6% Water O & M $4,208,150 17.5% Airport Capital $910,950 3.8% Airport O & M $382,490 1.6% Health Insurance $299,740 1.2% Total $23,997,100

Airport Capital Airport O & M Lake Restoration

Water Capital Water O & M

General Fund

Debt Service Motor Fuel Tax SSA

22 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

ALL FUND EXPENDITURE SUMMARY

General Fund 15,674,999 15,289,056 14,594,923 14,919,040 15,696,490 15,696,490 Motor Fuel Tax Fund 1,173,447 4,129,233 445,285 689,910 924,230 924,230 Special Service Area #1 23,700 15,464 6,985 6,970 7,630 7,630 Special Service Area #2 206,586 117,036 106,063 103,350 119,290 119,290 Special Service Area #3 92,555 70,832 78,595 101,770 77,320 77,320 Special Service Area #4A 36,914 30,239 38,899 21,210 39,750 39,750 Special Service Area #4B 967 1,226 3,368 4,470 4,260 4,260 Special Service Area #5 79,352 78,775 92,429 127,110 108,230 108,230 Special Service Area #6 48,191 42,196 36,466 49,680 35,500 35,500 Special Service Area #7 1,404 1,976 3,047 2,150 7,100 7,100 Special Service Area #8B 777 286 83 1,710 320 320 Special Service Area #8C 0 624 1,027 910 330 330 Special Service Area #10 20,006 20,002 20,001 20,010 20,010 20,010 Special Service Area #14 7,502 7,501 7,500 7,510 7,510 7,510 Special Service Area #15 1,989 28,963 16,615 8,310 18,870 18,870 Special Service Area #24 0 0 0 0 410 410 Debt Service Fund 1,075,346 4,982,036 981,992 1,026,470 983,200 983,200 Woods Creek Lake (Lake #1) 2,542 7,641 2,648 2,260 10,760 10,760 Goose Lake, Willow Lake, & Lake Scott (Lakes #2, 3, & 4) 2,070 10,053 84,431 35,130 60 60 Water Capital Improvement Fund 141,191 962,731 1,458,076 1,008,670 134,500 134,500 Water Operating & Maintenance Fund 5,302,101 6,301,191 5,044,497 3,800,330 4,208,150 4,208,150 Airport Capital Improvement Fund 253,779 7,813,875 3,959,843 456,640 910,950 910,950 Airport Operating & Maintenance Fund 681,532 518,510 574,550 349,700 382,490 382,490 Health Insurance Fund 83,067 196,250 252,542 276,490 299,740 299,740 Police Pension Fund 502,780 00000

TOTAL EXPENDITURES ALL FUNDS 25,412,798 40,625,695 27,809,865 23,019,800 23,997,100 23,997,100

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET SUMMARY BY EXPENDITURE TYPE

$16,000,000

$14,000,000 $13,537,530

$12,000,000

$10,000,000

$8,000,000

$6,000,000

$4,000,000 $3,408,540 $3,057,500

$2,000,000 $1,247,500 $1,386,810 $1,168,340

$190,880 $0 Personal Professional Contractual Commodities Debt Service Capital Outlay Transfers Services Development Services

This graph illustrates the allocation of resources according to category. As shown here, Personal Services expenditures continue to exceed the others.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET SUMMARY BY EXPENDITURE TYPE

Personal Professional Contractual Debt Capital Department Services Development Services Commodities Service Outlay Transfers Totals General Fund Executive 80,670 18,750 470 1,100 100,990 Administration 406,610 12,000 39,800 4,060 462,470 Comm. Dev. - Admin 272,460 4,200 2,010 1,160 279,830 Comm. Dev. - Building 300,240 2,830 4,940 13,720 321,730 Finance 550,320 9,170 27,810 9,710 597,010 MIS 370 68,840 10,000 5,720 84,930 Parks & Rec. - Admin 226,170 62,590 880 5,060 294,700 Parks & Rec. - Parks 213,400 206,960 53,130 12,810 486,300 Parks & Rec. - Rec/Beach 385,040 4,790 317,380 42,430 15,500 765,140 Police - Police Comm. 1,060 780 1,840 Police - Admin/Op 6,735,270 43,770 147,610 269,050 197,580 7,393,280 PW-Admin 255,070 6,430 30,770 5,160 1,100 298,530 PW-Roads 892,930 5,660 11,580 286,360 140,800 1,337,330 PW-Public Property 940,850 8,120 371,150 170,540 195,110 1,685,770 PCS-Engineering 35,180 35,180 PCS-Legal 118,400 118,400 Insurance/Tort 267,750 181,770 449,520 Interfund Transfers 983,540 983,540 Total General Fund 11,527,840 179,460 1,565,550 871,480 0 568,620 983,540 15,696,490

Other Funds Motor Fuel Tax 180,030 744,200 924,230 SSA # 1 470 7,100 60 7,630 SSA # 2 18,760 97,670 2,860 119,290 SSA # 3 34,460 28,420 14,440 77,320 SSA # 4A 18,620 19,660 1,470 39,750 SSA # 4B 650 3,560 50 4,260 SSA # 5 23,730 77,600 6,900 108,230 SSA # 6 5,920 27,230 2,350 35,500 SSA # 7 4,410 2,060 630 7,100 SSA # 8B 150 170 320 SSA # 8C 150 180 330 SSA # 10 20,010 20,010 SSA # 14 7,510 7,510 SSA # 15 3,030 15,440 400 18,870 SSA # 24 280 70 60 410 Debt Service 990 982,210 983,200 Woods Creek Lake 10,760 10,760 Goose, Willow, Scott 60 60 Water Capital 134,500 134,500 Water O&M 1,727,290 10,680 835,940 323,900 340,290 970,050 4,208,150 Airport Capital 137,220 773,730 910,950 Airport O&M 171,770 740 99,150 23,740 64,310 22,780 382,490 Health Insurance 299,740 299,740 Total Other Funds 2,009,690 11,420 1,842,990 376,920 1,386,810 2,487,980 184,800 8,300,610

Total Expenditures 13,537,530 190,880 3,408,540 1,248,400 1,386,810 3,056,600 1,168,340 23,997,100 25

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET FUND BALANCE PROJECTIONS

Projected Projected Fund Balance FY2012 FY2012 Fund Balance at 12/31/11 Revenues Expenditures at 12/31/12 General Fund 6,262,248 15,722,950 15,696,490 6,288,708 Motor Fuel Tax Fund 1,397,633 819,270 924,230 1,292,673 Special Service Area #1 29,258 5,690 7,630 27,318 Special Service Area #2 268,458 119,580 119,290 268,748 Special Service Area #3 191,182 118,400 77,320 232,262 Special Service Area #4A 87,597 53,460 39,750 101,307 Special Service Area #4B 7,073 5,700 4,260 8,513 Special Service Area #5 156,083 119,870 108,230 167,723 Special Service Area #6 87,170 56,500 35,500 108,170 Special Service Area #7 9,723 4,730 7,100 7,353 Special Service Area #8B 2,953 160 320 2,793 Special Service Area #8C 6,322 220 330 6,212 Special Service Area #10 0 20,010 20,010 0 Special Service Area #14 0 7,510 7,510 0 Special Service Area #15 17,141 20,300 18,870 18,571 Special Service Area #24 0 1,810 410 1,400 Debt Service Fund 0 983,200 983,200 0 Woods Creek Lake (Lake #1) 541,254 23,370 10,760 553,864 Goose Lake, Willow Lake, & Lake 124,965 23,310 60 148,215 Scott (Lakes #2, 3, & 4) Water Capital Improvement Fund 1,533,206 184,210 134,500 1,582,916 Water Operating and Maintenance Fund 1,129,263 3,935,850 4,208,150 856,963 Airport Capital Improvement Fund 0 910,950 910,950 0 Airport Operating and Maintenance 286,421 389,910 382,490 293,841 Fund Health Insurance Fund 150,407 325,000 299,740 175,667 TOTALS 12,288,358 23,851,960 23,997,100 12,143,218

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET FUND BALANCE PROJECTIONS

As of December 31, 2012, all funds will have a fund balance of at least 25% of the prior year’s operating expenditures with the exception of Special Service Area #10, Special Service Area #14, the Debt Service Fund, and the Airport Capital Improvement Fund. All of these funds are designed to carry no fund balance due to interfund transfers to and from related operating funds that result in a zero balance in these funds. Funds with changes in fund balances of $5,000 or more are summarized as follows:

General Fund – There is a projected increase of $26,460 in the General Fund fund balance as of December 31, 2012. Due to the size of the General Fund fund balance, this represents an increase of only 0.4% and will be used to fund future year’s expenditures and protect against unforeseen revenue decreases.

Motor Fuel Tax Fund – The fund accounts for capital improvements to the Village’s streets. The fund balance is projected to decrease by $104,960 or 7.5% during FY12 due to planned improvements in connection with the street resurfacing program, the street crack sealing program, and the pavement marking program. The projected fund balance at the end of FY12 will be $1,292,673 which will be allocated to future street related capital improvement projects.

Special Service Area #3 – This fund was established to account for costs related specifically to the Big Sky subdivision. The fund balance is projected to increase by $41,080 to accumulate funds for future fiscal year projects such as the replacement of two playgrounds, two swing replacements, a prescribed burn, and tree trimming.

Special Service Area #4A - This fund was established to account for costs related specifically to the Hidden Valley/Stoneybrook subdivision. The fund balance is projected to increase by $13,710 to accumulate funds for future fiscal year projects such as the replacement of two playgrounds, one swing replacement, a prescribed burn, tree trimming, and emerald ash borer injections.

Special Service Area #5 - This fund was established to account for costs related specifically to the Spring Lake Farm South subdivision. The fund balance is projected to increase by $11,640 to accumulate funds for future fiscal year projects such as the replacement of one playground, one swing replacement, two prescribed burns, tree trimming, and emerald ash borer injections.

Special Service Area #6 - This fund was established to account for costs related specifically to the Hampton West subdivision. The fund balance is projected to increase by $21,000 to accumulate funds for future fiscal year projects such as the replacement of one playground, one swing replacement, a prescribed burn, and tree trimming.

Woods Creek Lake Fund – This fund accounts for capital improvements to the Village’s largest lake, Woods Creek Lake. The fund balance is projected to increase by $12,610 due to the lakes and stream maintenance fees collected from the anticipated Krueger Property annexation. Funds are being accumulated to fund future capital improvement projects to the lake such as dredging.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET FUND BALANCE PROJECTIONS

Goose Lake, Willow Lake, and Lake Scott Fund – This fund accounts for capital improvements to three of the Village’s smaller lakes. The fund balance is projected to increase by $23,250 due to the lakes and stream maintenance fees collected from the anticipated Krueger Property annexation and interest earnings. Funds are being accumulated to fund future capital improvement projects to the lakes such as dredging.

Water Capital Improvement Fund – This fund accounts for the construction of water system improvements which expand the capacity of the water system. It is funded by water tapping fees collected from new connections. Based on the estimated number of new connections for FY12, the fund balance is projected to increase by $49,710 which will be accumulated for future water system improvements such as well construction, water treatment plant construction, and water storage tower construction.

Water Operating and Maintenance Fund – This fund accounts for the operating and maintenance expenses of the water system and capital improvement projects not related to expansion of the system. The multi-year water main replacement project will result in a projected reduction of $272,300 in the fund balance as of December 31, 2012. The water main replacement project is scheduled to be completed in FY15.

Health Insurance Fund – This fund accounts for the Village’s partially self-funded medical and dental insurance plans. The fund balance is projected to increase by $25,260 as of December 31, 2012 which will be used to help offset the impact of future rate increases from medical and dental plan providers.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET CAPITAL OUTLAY SUMMARY

The impact on the operating budget is analyzed prior to moving forward with any capital improvement project. The following six programs are included in the current fiscal year budget:

1. Park System: $28,310 in capital improvements to parks has been budgeted which includes $5,840 for a bike path connection at Sunset Park, $6,970 for the installation of two drinking fountains, and $15,500 for a replacement pier at Indian Trail Beach. Annual operating costs to maintain these new park improvements will be more than offset by reduced maintenance costs for the existing pier which is beginning to rot out. The net annual operating cost decrease is estimated to be $400 to $600.

2. Drainage Improvements: $42,000 has been budgeted in FY12 to improve the drainage on Indian Trail at Locust Street. While these improvements will not directly result in cost savings to the Village, the improvements to the overall storm water drainage system will benefit property owners in the area. Annual operating costs to maintain these drainage improvements are estimated to be less than $100.

3. Facility Improvements - $97,560 has been budgeted in FY12 for improvements to facilities. $25,060 has been included to replace two furnaces and install a new exhaust system in the Police Department evidence locker, $28,460 has been included for roof replacement/repairs and to install a perimeter drainage system at the Larsen property, $6,900 has been included to install a generator and replace a door and frame at the Public Works facility, $8,920 has been included for HVAC system improvements at Village Hall, and $29,220 has been included to renovate the Police Department annex into a preschool location. The furnace replacements are necessary due to life safety issues with the heat exchangers; however, increased efficiency will result in some small savings from energy use. Installing the generator will increase operating costs but will enhance the ability of the Village to respond during extended power outages. Although the additional preschool location will increase operating costs, it will also generate additional revenue. The net annual operating cost increases for these items are estimated to be $3,000 to $4,000.

4. Street Improvements – $744,200 has been budgeted for street improvement projects in the Motor Fuel Tax Fund. The annual street resurfacing program, budgeted at $692,100 for FY12, is undertaken to extend the life of the pavement between reconstruction periods. A total of eighteen street sections are included in the FY12 street resurfacing program. Additionally, maintenance to Village streets in order to seal the streets and prevent water infiltration will be accomplished through the annual crack filling program budgeted at $19,000 in FY12. Finally, $33,100 has been budgeted in FY12 for pavement marking improvements. Since all of these projects are funded by motor fuel tax funds, there will be no negative impact on the operating budget to complete these projects because the Village allocates motor fuel tax revenue entirely towards capital improvement projects. In fact, all three of these projects will result in a favorable impact to the operating budget after completion because of the decreased need for maintenance efforts. Annual savings to the operating budget are estimated to be in the range of $10,000 to $14,000.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET CAPITAL OUTLAY SUMMARY

5. Water Transmission: $950,000 has been allocated for water main replacements to maintain the existing infrastructure and provide increased fire protection capacity throughout the Village. By replacing older water mains, maintenance and repair efforts will be significantly reduced. Savings to the operating budget are expected in numerous areas such as lower costs for repair parts and contractual repairs. This project will also significantly improve the ability to deliver adequate fire protection flows to the neighborhood where the work is accomplished. It will also reduce the number of water main breaks created by the aged infrastructure and brittle nature of the pipe installed. Annual savings to the operating budget are estimated to be in the range of $5,000 to $9,000.

6. Airport Improvements –$773,730 has been budgeted for improvements at the Lake in the Hills airport. This year’s projects include land acquisition for the new airport entrance road ($495,000) and extending the perimeter fencing ($278,730). Both of these projects are leveraged with federal and state grants. The Village’s share for the capital outlay portion of these projects is only $19,344 or 2.5% of the total cost. The other $754,386 will be funded via federal and state grants administered by the Illinois Department of Transportation. The completion of these two projects is expected to increase operating costs by $300 to $500.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET CAPITAL OUTLAY SUMMARY

Management Information Systems Public Works - Public Properties Computer Laptops $5,720 Furnace Replacement at the PD $22,500 $5,720 Exhaust system for PD Evidence Room $2,560 Install Perimeter Drainage System at 1111 Pyott $7,100 Parks & Recreation - Parks Replace North Slope Roof on Larsen Barn $21,360 Sunset Bike Path Connection $5,840 Install Generator at Public Works $3,500 (2) Drinking Fountains $6,970 Door and Frame Replacement at Public Works $2,400 $12,810 Upgrade 7 VVT Actuators & Thermostats $8,920 Preschool Annex Renovation $29,220 Parks & Recreation - Recreation 72 Inch Zero Turn Mower $10,500 Pier for Indian Trail Beach $15,500 Facilities Snowblower $2,790 $15,500 Skidsteer Snowblower Attachment $5,050 Brush Hog Attachment $4,210 Police Department 1 Yard Dump Truck w/ Plow $75,000 Update Main & Local Receivers $11,150 $195,110 In-Squad Video System (12) $37,200 Cardiac Science AED (3) $3,300 MFT Kenwood Portable Radios (6) $9,060 Crack Sealing $19,000 Kenwood Mobile Radios (4) $10,400 Pavement Marking $33,100 GE-Star Unit ID Translator $2,580 General Street Resurfacing $692,100 Records Copier $7,500 $744,200 Dell E6510 Laptops (4) $5,400 EZ ID Printer $5,600 Water O & M Ford Crown Victoria Police Interceptors (4) $101,280 2012 Water Main Replacement Program $950,000 New Squad Set-up (4) $2,000 27" Snowblower for Water Facilities $1,140 Patriot Prisoner Rear Seats (4) $2,110 Honda Power Generator $2,110 $197,580 VLOC Pro Utility Line Locator $3,780 Chemical Drum Scale $2,800 Public Works - Administration Chlorine Cylinder Scales $4,840 Control Station for Wireless Remote to Chlorine Switchover Modules $1,100 Repeater $1,100 Computer Laptops $1,100 $1,100 Control Station for Wireless Remote to Repeater $3,180 $970,050 Public Works - Streets Ink Jet Printer for Sign Shop $10,000 Airport Capital Improvement Replacement Wash Bay Pressure Washer $7,800 Purchase Property for Airport Entrance Rd $495,000 Scanner for Mechanics $6,000 Extend Perimeter Fencing $278,730 Replace Truck 11 $75,000 $773,730 Drainage Improvements on Indian Trail $42,000 $140,800 Total Capital Outlay: $3,056,600

31 La Buy Park, 35 Hilltop Drive, is part of the estate of prominent Chicago attorney Walter J. La Buy, who purchased the property prior to 1923, for hunting and ﬁshing. The stone wall seen in the background is part of the dam that was constructed to create a lake. Amenities at the park include a playground, bike rack, overlook, and limited parking.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET GENERAL FUND REVENUES

Revenue Source Revenue Other Tax Property Taxes $5,731,560 Licenses and Miscellaneous 3% Per mits Sales Tax $2,291,030 4% Income Taxes $2,181,880 Tele- 2% communications Interes t Inc ome Charges for Services $1,398,930 Fines Property Taxes Tax 7% 0% Home Rule Sales Tax $1,214,970 4% 35% Telecommunications Tax $874,500 Fines $610,290 Home Rule Miscellaneous $597,530 Sales Tax 7% Other Tax $456,050 Licenses and Permits $258,790 Interest Income $40,350 Sales Tax Grants $39,550 Charges for Income Taxes 15% Interfund Transfer $27,520 Services 14% Total $15,722,950 9%

Sales Tax Growth Since 1994

Home Annual Fiscal 1% Sales Rule Sales % $3,500,000 Year Tax Tax Change 1994 $235,982 $0 $3,000,000 1995 $312,853 $0 32.57% 1996 $368,095 $0 17.66% $2,500,000 Hom e Rule 1997 $499,783 $0 35.78% Sales Tax 1998 $862,717 $0 72.62% 1999 $1,096,508 $0 27.10% $2,000,000 2000 $1,263,468 $0 15.23% 2001 $1,439,748 $0 13.95% $1,500,000 2002 $1,462,573 $0 1.59% 2003 $1,064,792 $0 -27.20% $1,000,000 2003A $761,365 $0 - 1% Sales 2004 $1,567,132 $0 47.18% Tax 2005 $1,953,853 $0 24.68% $500,000 2006 $2,110,179 $393,558 8.00% 2007 $2,146,939 $786,095 1.74% $0 2008 $2,123,758 $777,865 -1.08% 1994 1996 1998 2000 2002 2003 2005 2007 2009 2011 2009 $1,957,450 $690,826 -7.83% 2010 $2,099,040 $912,650 7.23% 2011 $2,120,030 $1,088,920 1.00% 2012 $2,291,030 $1,214,970 8.07% Change over ten year period 56.64%

*2003A is for an eight month period

33 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

GENERAL FUND REVENUES

Property Taxes 1100.30110 Property Tax - Corporate 2,844,206 2,955,300 2,913,813 2,625,610 2,504,790 2,504,790 1100.30120 Property Tax - IMRF 318,596 329,827 359,601 468,550 477,030 477,030 1100.30130 Property Tax - Police Protection 614,025 619,672 634,963 615,850 587,510 587,510 1100.30140 Property Tax - Police Pension 673,604 750,288 911,933 960,810 932,540 932,540 1100.30150 Property Tax - Audit 10,758 9,001 9,003 9,660 9,700 9,700 1100.30160 Property Tax - Insurance & Tort 100,129 109,950 130,191 168,450 181,770 181,770 1100.30170 Property Tax - Street & Bridge 0 0 101000 1100.30180 Property Tax - ESDA 3,310 3,135 3,003 0 0 0 1100.30190 Property Tax - FICA 475,828 499,733 510,772 594,920 595,660 595,660 1100.30200 Property Tax - Crossing Guards 5,791 8,001 9,003 0 0 0 1100.30210 Property Tax - Unemployment Ins. 829 1,006 500000 1100.30220 Property Tax - Worker's Comp. 100,129 119,934 140,189 175,490 261,210 261,210 1100.30230 Property Tax - Road & Bridge 174,021 171,426 175,959 181,350 181,350 181,350

Total Property Taxes 5,321,225 5,577,272 5,799,029 5,800,690 5,731,560 5,731,560

Other Taxes 1100.30310 Sales Tax 2,123,758 1,957,450 2,115,982 2,268,350 2,291,030 2,291,030 1100.30320 Home Rule Sales Tax 777,865 690,826 940,832 1,202,950 1,214,970 1,214,970 1100.30350 Use Tax 430,569 353,759 394,911 429,120 448,620 448,620 1100.30510 Utility Tax 898 111 254000 1100.30610 Simplified Telecommunications Tax 1,022,343 1,003,655 963,719 892,350 874,500 874,500 1100.30710 Income Tax 2,763,715 2,372,940 2,297,709 2,301,440 2,181,880 2,181,880 1100.30810 Personal Property Replacement Tax 7,407 7,030 6,599 7,700 5,230 5,230 1100.30910 Charitable Games/Pull Tabs Tax 2,822 2,249 2,196 2,200 2,200 2,200

Total Other Taxes 7,129,377 6,388,020 6,722,200 7,104,110 7,018,430 7,018,430

License & Permits 1100.31110 Business Licenses 6,204 6,294 6,102 6,000 6,000 6,000 1100.31120 Contractor Licenses 40,225 37,125 30,600 33,750 33,750 33,750 1100.31130 Vending Machine Licenses 2,872 2,990 2,180 2,670 2,700 2,700 1100.31140 Amusement Licenses 700 760 490 390 390 390 1100.31150 Vendor Licenses 500 600 890 830 800 800 1100.31160 Liquor Licenses 29,050 33,242 32,459 30,050 31,300 31,300 1100.31165 Tobacco Licenses 3,750 4,000 3,312 3,250 3,250 3,250 1100.31170 Garage Sale Licenses 4,285 4,780 4,270 3,600 3,600 3,600 1100.31510 Building Permits 219,592 108,988 84,033 175,000 148,000 148,000 1100.31520 Commercial Occupancy Permits 2,600 3,500 3,400 3,500 3,500 3,500 1100.31610 Lake Use Permits & Fees 23,049 24,776 28,365 24,980 25,500 25,500

Total Licenes & Permits 332,827 227,055 196,101 284,020 258,790 258,790

Intergovernmental Revenue 1100.32050 Grants 110,591 420,904 33,481 217,190 39,550 39,550

Total Intergovernmental Revenue 110,591 420,904 33,481 217,190 39,550 39,550

34 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

Charges for Services 1100.33110 Filing/Grading/Other Fees 14,026 8,009 8,424 14,700 16,210 16,210 1100.33120 Planning & Zoning Hearing Fees 6,640 4,940 6,924 6,600 6,600 6,600 1100.33130 Road Impact Fees 8,123 3,909 1,675 75,310 2,520 2,520 1100.33140 Public Building Fees 8,123 3,909 1,675 75,310 3,620 3,620 1100.33170 Annexation Fees 25,300 0 0 0 18,700 18,700 1100.33180 Administrative/Platting Fee 17,567 8,870 0 19,200 0 0 1100.33190 Cable/Video Provider Fees 320,461 313,716 345,139 378,800 391,320 391,320 1100.33195 Natural Gas Franchise Fees 50,825 53,163 50,067 45,250 36,100 36,100 1100.33210 Special Police Detail 1,625 240 360 910 500 500 1100.33220 PD Dispatch Services 166,117 178,082 181,680 294,430 303,260 303,260 1100.33410 Park Programming / Funding Fees 504,955 438,712 429,326 500,250 527,810 527,810 1100.33420 Facility Rental Fees 45,489 54,522 70,361 67,000 68,000 68,000 1100.33430 Park Fees 0 0 0 255,260 24,290 24,290

Total Charges for Services 1,169,251 1,068,070 1,095,632 1,733,020 1,398,930 1,398,930

Fines 1100.35110 Court Fines 426,701 404,802 328,211 346,160 363,460 363,460 1100.35210 DUI Fines 4,175 4,433 5,955 5,860 6,150 6,150 1100.35220 Vehicle Fines 16,907 12,990 13,021 13,100 13,750 13,750 1100.35310 Ordinance Violations 62,512 74,601 62,216 54,680 55,850 55,850 1100.35410 D.A.R.E. Fines 425 5000000 1100.35510 Liquor License Fines 0 28,852 0000 1100.35610 Tobacco License Fines 0 2,700 2,063 1,950 2,000 2,000 1100.35710 Red Light Photo Enforcement Fines 127,075 114,938 86,128 45,100 54,000 54,000 1100.35750 Electronic Citation Fines 0 0 0 1,870 1,960 1,960 1100.35810 Bail Bond Fees 3,570 4,770 4,410 4,590 4,800 4,800 1100.35910 Vehicle Impoundment Fees 63,500 104,000 109,505 98,000 102,750 102,750 1100.35920 Towing Service Fees 0 2,589 6,643 5,310 5,570 5,570

Total Fines 704,865 755,174 618,151 576,620 610,290 610,290

Interest 1100.36050 Interest Income 181,613 77,872 44,150 53,800 40,350 40,350

Total Interest Income 181,613 77,872 44,150 53,800 40,350 40,350

Miscellaneous Revenue 1100.39050 Miscellaneous Revenue 94,276 28,097 48,320 34,250 32,000 32,000 1100.39060 Police Contingency Revenue 500 0 0 4,030 0 0 1100.39100 Rental Income 222,207 268,587 278,083 296,570 321,920 321,920 1100.39200 Donations/Sponsorships/Advertising 17,344 8,686 21,351 17,100 17,800 17,800 1100.39300 Sale of Surplus Property 39,248 131,098 52,785 7,100 24,810 24,810 1100.39410 Festival & Event Revenues 184,884 207,080 199,654 184,340 191,000 191,000 1100.39500 Insurance/Restitutions 40,163 177,132 47,352 80,000 10,000 10,000 1100.39800 Penalties & Interest 0 0 347 200 0 0

Total Miscellaneous Revenue 598,623 820,680 647,893 623,590 597,530 597,530

Interfund Transfers 1100.39900 Interfund Transfers 95,394 27,503 27,501 27,520 27,520 27,520

Total Interfund Transfers 95,394 27,503 27,501 27,520 27,520 27,520

Total General Fund Revenues 15,643,766 15,362,550 15,184,136 16,420,560 15,722,950 15,722,950

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET GENERAL FUND REVENUES

Property Taxes

This revenue is derived from a tax levy on real estate within the corporate limits of the Village of Lake in the Hills. The McHenry County Treasurer is responsible for collecting and remitting the taxes to the Village throughout the year. A 1.2% decrease in the tax levy is being proposed which is projected to result in a total of $5,731,560 in real estate tax revenue in 2012 based on a collection rate of 99.82% of the levy amount. This total includes the Algonquin and Grafton Township road and bridge transfers of $181,350. The Village’s levy for 2011 is proposed to be reduced to $5,560,260 from the 2010 levy amount of $5,627,800 which represents a $67,540 or 1.2% decrease.

In 2010, the Village Board approved levying for the full cost of the pension and insurance related levies since those are mandated costs. The FY11 budget included levying for the full cost of those programs but the actual levy amounts could not exceed the existing fiscal year’s budget (FY10 at that time). For example, the 2010 levy amounts could not exceed the FY10 budget amounts for the specific line items being levied for because the levy would attach as a lien to property for the 2010 year even though the funds would not be collected until 2011. This one year lag between the year the levy attaches as a lien and the year the funds are collected created a discrepancy between the budget amount and the levy amount for the following three levies – IMRF, Liability Insurance, and Workers Compensation Insurance. In order to account for this, the required changes in these three levy amounts were offset by a corresponding change in the Corporate levy resulting in no change to the total levy amount. These changes were reflected in the first quarter budget amendment for FY11 and are summarized below:

Original Amended Inc. (Dec.) Levy Budget Budget in Budget Levy Description Amount Amount Amount Amount Audit $ 9,680 $ 9,670 $ 9,670 $ 0 FICA 595,820 594,940 594,940 0 Police Protection 616,780 615,860 615,860 0 IMRF 469,250 476,250 468,560 (7,690) Police Pension 962,250 960,820 960,820 0 Liability Insurance 168,700 223,940 168,460 (55,480) Workers Compensation 175,760 348,730 175,500 (173,230) Corporate 2,629,560 2,389,240 2,625,640 236,400 Total $5,627,800 $5,619,450 $5,619,450 $ 0

The proposed FY12 budget accounts for this lag time by ensuring that the proposed levy amounts and the proposed budget amounts are proportional to each other with the only difference being the collection rate reduction for the proposed budget amounts, and by capping the proposed levy amounts at the FY11 budget amounts as applicable. This will ensure that the full cost of these programs are covered by the levy amounts with no more than a one budget year lag between the expenditure of the funds and the collection of the associated levy amount.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET GENERAL FUND REVENUES

Sales Taxes

A 7% base sales tax is collected on all retail sales within the Village. Each business then files a monthly sales tax return and remits the collected sales taxes to the State. The State then forwards each taxing district’s portion to each district on a monthly basis. The Village’s share of the base sales tax revenue is 1%. For fiscal year 2012 we are projecting a slight 1% increase in base sales tax revenue to $2,291,030 based on the economy continuing on a slow path to recovery from the recession.

Home Rule Sales Tax

Effective July 1, 2006, the Village imposed a 0.5% home rule sales tax on all retail sales within the Village. The home rule sales tax rate was increased to 0.75% effective July 1, 2010. This tax is collected on sales of general merchandise only and is not collected on sales of food, drugs, or tangible personal property that is required to be licensed or registered with the State of Illinois. Total projected home rule sales tax revenue for FY12 is $1,214,970 which is based on a 1% increase to account for the slow recovery from the recession.

Use Tax

Use tax is a tax imposed on the privilege of using, in the State of Illinois, any item of tangible personal property that is purchased anywhere at retail. This revenue source is collected by the State and forwarded to the Village on a per capita basis. For the 2012 fiscal year, a 4.5% increase is projected based on the Illinois Municipal League’s estimated increase in per capita revenue. This is projected to result in $448,620 in use tax revenue for 2012.

Simplified Municipal Telecommunications Tax

The Simplified Municipal Telecommunications Tax became effective January 1, 2003. Legislation passed by the State of Illinois combined the utility tax on telecommunications and the infrastructure maintenance fee into one simplified tax. This tax is now administered by the Illinois Department of Revenue in much the same manner as sales taxes are. Telecommunications providers file a monthly tax return and remit the collected taxes to the State. The State then forwards each taxing district’s portion to each district on a monthly basis. The current rate for the Simplified Municipal Telecommunications Tax in the Village is 6% which replaced the 5% utility tax on telecommunications as well as the 1% infrastructure maintenance fee. A total of $874,500 in revenue is projected for the 2012 fiscal year which is based on a 2% decrease due to increased competition for cellular telephone service and a decreased level of residential development.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET GENERAL FUND REVENUES

Income Tax This revenue source is collected by the State and forwarded to the Village on a per capita basis. For fiscal year 2012, the Illinois Municipal League is projecting a 5.2% decrease in the per capita income tax distribution which will result in $2,181,880 in income tax revenue.

Personal Property Replacement Tax

Personal property replacement taxes are revenues collected by the State of Illinois and paid to local governments to replace money that was lost when the powers to impose personal property taxes on corporations, partnerships, and other business entities was taken away from local governments. For fiscal year 2012 we are projecting $5,230 in personal property replacement tax revenue based on the Illinois Municipal League’s estimated 32% reduction in this revenue source.

Charitable Games/Pull Tabs Tax

Charity gaming taxes are imposed by the State of Illinois on bingo licenses, charitable games licenses, and pull tabs/jar games licenses issued by the State. A portion of the proceeds are distributed back to municipalities for law enforcement purposes based on the number of licenses issued within each municipality. For the 2012 fiscal year, $2,200 is projected to be received from the State based on the same number of licenses being issued as there were in the past few years.

Business Registrations

All businesses located within the Village must register their business with the Village. The registration fee is $10.00 for each business and a total of $6,000 is expected to be collected in the 2012 fiscal year based on an estimated 600 business registrations.

Contractor Licenses

All building contractors (other than plumbing contractors) doing business within the Village are required to obtain a building contractor’s license. The fee for each license is $75.00 and a total of $33,750 is projected to be received in the 2012 fiscal year based on 450 contractor’s licenses being issued.

Vending Machine Licenses

All vending machines located within the Village must be licensed at a cost of $30.00 per machine. Reduced fees are available to not-for-profit organizations. A total of $2,700 is expected to be collected in the 2012 fiscal year based on existing vending machine licenses issued.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET GENERAL FUND REVENUES

Amusement Licenses

Electronic or mechanical amusement devices located within the Village must be licensed at a cost of $30.00 per device. Reduced fees are available to not-for-profit organizations. A total of $390 is expected to be collected in the 2012 fiscal year based on no increase in the number of amusement licenses being issued.

Vendor Licenses

Each food vendor using a vehicle for the storage or carrying of food products for sale at retail upon the streets of the Village is required to be licensed. The cost of the license is $100.00 for each owner plus $50 for each food product vehicle operated. A total of $800 is expected to be received in the 2012 fiscal year based on no increase in the number of vendor licenses being issued.

Liquor Licenses

This revenue source is based on the current liquor licenses authorized by the Village – seven Class A licenses, one Class A-1 license, eight Class B licenses, two Class C licenses, one Class D license, two Class E license, one Class F license, and two Class BWT licenses. The total revenue generated by these licenses for the 2012 fiscal year will be $31,300 which includes $200 for miscellaneous fees collected for picnics and other events where alcohol is served.

Tobacco Licenses

A tobacco dealer’s license is required in order to sell or offer for sale at retail in the Village any tobacco or tobacco product. The cost of each license is $250 which is projected to result in $3,250 in revenue for the 2012 fiscal year based on thirteen tobacco licenses being issued.

Garage Sale Licenses

A $5.00 garage sale license is required whenever a garage sale takes place within the Village. A total of 720 garage sales are projected for the 2012 fiscal year resulting in $3,600 in revenue. This is based on no increase in the number of garage sale licenses being issued.

Building Permits

Building permit fees for the 2012 fiscal year are based on the construction of nine new homes and two commercial developments in addition to the permits issued to existing homes for remodeling, decks, fences, etc. New home construction is estimated by asking each developer how many homes they expect to construct in fiscal year 2012. A total of $148,000 in building permit fees is being projected for the 2012 fiscal year.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET GENERAL FUND REVENUES

Commercial Occupancy Permits

Thirty-five commercial occupancy permits are projected to be issued in fiscal year 2012. The fee for each commercial occupancy permit is $100 resulting in a total of $3,500 in revenue projected for FY12.

Lake Use Permits & Fees

This revenue source is generated by the sale of lake use tags, daily lake use fees, boat use tags, boat storage slips, and paddle boat rentals. Lake use tags cost $40 per year for residents, $30 per year for households with seniors 55 years and older, and $60 per year for non-residents, while daily fees are $2 per person for residents and $5 per person for non-residents. Boat use tags cost $10 for residents and $7 for households with seniors 55 years and older, while non-residents are charged a $15 daily boat launching fee. Boat slips cost $20 for residents and $15 for households with seniors 55 years and older. Based on an average summer season from a weather perspective, a total of $25,500 in revenue is projected for the 2012 fiscal year.

Grant Revenue

Grant revenue anticipated for the 2012 fiscal year totals $39,550 and can be summarized as follows:

• Tobacco Enforcement Grant $ 1,100 • Body Armor Grant $ 1,860 • IEMA CERT Grant $ 4,080 • Traffic Enforcement Grant $32,510

Filing, Grading & Other Fees

This line item accounts for funds received from developers for grading reviews ($1,810), filing fees for tentative & final plans ($3,000), and staff review reimbursements ($11,400). A total of $16,210 in revenue is projected to be received in fiscal year 2012 based on current development estimates.

Planning & Zoning Hearing Fees

This line item accounts for the fees collected from developers and residents who request hearings for variations, conditional uses, and re-zonings. A total of $6,600 is expected to be collected during the 2012 fiscal year via an estimated two hearings at $550 each, ten hearings at $510 each, and four hearings at $100 each.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET GENERAL FUND REVENUES

Road Impact Fees

This line item accounts for road maintenance fees collected at the time of building permit issuance and cul-de-sac/eyebrow fees collected as a condition of a final plat of subdivision. For the 2012 fiscal year, $2,520 is projected to be received in road maintenance fees - $1,330 from the Greenshire development and $1,190 from the Cheswick Place development.

Public Building Fees

Public building fees are collected at the time of building permit issuance as outlined in annexation agreements. These fees are designated for capital expenditures in the Public Works Department due to the impact of a subdivision or development. A total of $3,620 is anticipated to be received in fiscal year 2012 from the following developments: Greenshire ($1,330), Lakes of Boulder Ridge ($1,100), and Cheswick Place ($1,190).

Annexation Fees

This line item accounts for the fee for a petition to annex property to the Village. The $18,700 projected for fiscal year 2012 is comprised of the 18.7 acres for the Krueger property.

Cable/Video Provider Fees

Cable/video provider fees are based on 5% of the gross revenues collected by the cable/video service provider. $391,320 in revenue is projected for the 2012 fiscal year based on historical receipts. This represents a 3.3% increase from last fiscal year’s estimated revenue.

Natural Gas Franchise Fees

This $36,100 revenue source is the value of the free therms of natural gas the Village is eligible to receive from the franchise agreement with NICOR. In lieu of receiving free gas service at certain Village buildings, the Village has chosen to receive an annual payment based on the value of the free therms. The FY12 estimated revenue represents a 20.2% reduction from the revenue collected in FY11 due mainly to the three-year average cost of natural gas declining significantly. The slight decrease in population to 28,965 also contributed to the decrease because fewer free therms were allocated to the Village.

Special Police Detail

This line item accounts for revenues received for providing special police services to businesses on an as needed basis. A total of $500 is projected to be received in fiscal year 2012 based on minimal requests for special police detail services.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET GENERAL FUND REVENUES

PD Dispatching Services

This line item accounts for the revenue received for providing dispatching services to other municipalities. A total of $303,260 is projected to be received for the 2012 fiscal year - $140,710 from the Village of Huntley, $49,940 from the Village of Fox River Grove, $110,200 from the City of Marengo, and $2,410 from the Village of Union. These figures are based on an estimated increase of 3% in the consumer price index.

Park Programming/Funding Fees

This line item accounts for registration fees received for Parks & Recreation programs. A total of $527,810 is projected to be received in the 2012 fiscal year which is an increase of 5.5% over last fiscal year’s estimated revenue. Increases in registrations are expected due to increased marketing efforts for park programs and the addition of an additional preschool location at 2 East Oak Street. Additionally, program fees are reviewed and adjusted on an annual basis as appropriate.

Facility Rental Fees

This line item accounts for the revenue received from the rental of Village facilities such as the Village Hall Community Room, Village Hall Multi-Purpose Room, Village Hall Classroom, LaBahn-Hain House, Indian Trail Beach Shelter, and park amenities at Barbara Key Park, Larsen Park, Leroy Guy Park, and Sunset Park. A total of $68,000 is projected to be received in the 2012 fiscal year based on the current rental rates in effect. This line item also accounts for the payments received from affiliate groups such as the YAA, ALITHSA, Falcon Football, Falcon Cheer, Cricket, American Legion, and LITHSAO.

Park Fees

Park fees are collected at the time of building permit issuance as outlined in annexation agreements. A total of $24,290 is anticipated to be received in fiscal year 2012 for the following developments: Greenshire ($11,050) and Lakes of Boulder Ridge ($13,240).

Court Fines

Court fines are collected by McHenry County and forwarded to the Village based on violations reported by the Police Department. A total of $363,460 is projected to be received for the 2012 fiscal year which represents a 5% increase from the FY11 estimated revenue of $346,160.

DUI Fines

This line item accounts for DUI fines collected by McHenry County and forwarded to the Village based on DUI violations reported by the Police Department. A total of $6,150 is projected to be collected in the 2012 fiscal year in connection with DUI violations.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET GENERAL FUND REVENUES

Vehicle Fines

Effective January 1, 2007, a police vehicle fee of $25.00 is assessed to any person who receives a disposition of court supervision. $20.00 of the fee goes to the arresting agency, $4.50 goes to the Circuit Clerk, and $0.50 goes to the State’s Prisoner Review Board. The revenue must be used for the acquisition or maintenance of police vehicles. A total of $13,750 is projected to be collected in the 2012 fiscal year based on the estimated number of court supervision cases.

Ordinance Violations

This line item accounts for the revenue generated from the issuance of “P” tickets by the Police Department. A total of $55,850 in revenue is projected for the 2012 fiscal year based on estimated local ordinance violations.

Tobacco License Fines

A total of $2,000 is projected to be received in fiscal year 2012 as the result of fines levied in connection with tobacco sales violations based on historical revenue.

Red Light Photo Enforcement Fines

This revenue source is collected in connection with violations occurring at the one traffic light in the Village (Randall Road and Acorn Lane) equipped with recording equipment. A total of $54,000 is expected to be received in fiscal year 2012 which is a 19.7% increase over last fiscal year’s revenue due to some system downtime experienced in fiscal year 2011.

Electronic Citation Fees

Effective January 1, 2011, an electronic citation fee of $5.00 is assessed in any traffic, misdemeanor, municipal ordinance, or conservation case upon a judgment of guilty or grant of supervision. $2.00 of the fee goes to the arresting agency and $3.00 goes to the Circuit Court Clerk. The revenue must be used to defray expenses related to the establishment and maintenance of electronic citations. A total of $1,960 is projected to be collected in the 2012 fiscal year in electronic citation fees.

Bail Bond Fees

A $30 bail bond fee is collected from every arrest that does not involve the towing of a vehicle. This fee is expected to generate a total of $4,800 in fiscal year 2012 based on the estimated number of arrests in FY12 that will not involve the towing of a vehicle.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET GENERAL FUND REVENUES

Vehicle Impoundment Fees

A vehicle impoundment fee of $500 is collected from every arrest that requires the towing of a vehicle. This fee is expected to generate a total of $102,750 in fiscal year 2012 based on the estimated number of arrests in FY12 that will involve the towing of a vehicle.

Towing Services Fee

The Village began collecting this fee in July 2009 effective with the award of a contract for police towing services. The Village collects 10% of the towing, storage, mileage and other fees collected in connection with towing services provided due to arrests, traffic accidents, motorist assists, etc. In fiscal year 2012, a total of $5,570 is projected to be collected from this revenue source based on the estimated number of towing incidents.

Interest Income

All funds collected that are not immediately required to fund operations are invested in accordance with the investment policy of the Village. A total of $40,350 in interest income is projected for the 2012 fiscal year based on current interest rates.

Miscellaneous Revenue

This line item accounts for miscellaneous revenue received by the Village such as developer invoicing administrative fees, freedom of information fees, copies of police reports, zoning maps, parking permits, solicitor’s permits, subpoena fees, jury duty fees, administrative fees, etc. A total of $32,000 is projected to be received in the 2012 fiscal year based on recent miscellaneous revenue receipts.

Rental Income

$321,920 is scheduled to be received during fiscal year 2012 as a result of rental agreements. The first U.S. Cellular site/license agreement will generate $29,912; the second U.S. Cellular site/license agreement will generate $30,464; the AT&T/Cingular Wireless agreement will generate $30,464; the first T-Mobile agreement will generate $30,464; the second T-Mobile agreement will generate $35,095: the Cricket Communications agreement will generate $30,464; the DLS agreements for wireless internet access antennas on water towers will generate $25,248; the Somerset Sport Horse Equestrian Center lease will generate $56,610; the Susong House lease will generate $15,734; 290 Indian Trail will generate $17,044; the Larsen House will generate $20,400; $10 is scheduled to be received from the Food Pantry; and $11 is scheduled to be received for three storage sheds (YAA-$1, YAA at Sunset Park-$5, and Jr. Eagles-$5).

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET GENERAL FUND REVENUES

Donations/Sponsorships/Advertising

This line item accounts for donations and contributions received by the Village for vendor sponsorships for various programs such as the Run Thru The Hills and Splish, Splash, Dash events ($2,000), program donations ($1,300), and seasonal brochure advertising revenue ($14,500). A total of $17,800 is anticipated to be received for the 2012 fiscal year based on current sponsorship and advertising levels.

Sale of Surplus Property

This line item accounts for the sale of surplus equipment such as outdated computer equipment, seized vehicles awarded to the Village, etc. A total of $24,810 is projected to be received in the 2012 fiscal year based on the sale of the following equipment:

Two 1-Ton Dump Trucks - $18,000 Four Squad Cars - $ 5,600 Skidsteer-Mounted Snow Blower - $ 800 Pressure Washer - $ 400 Snowblower - $ 10

Festival & Event Revenues

The 2012 Summer Sunset Festival is expected to generate $191,000 in revenue which is $44,370 more than the budgeted expenditures for this event.

Insurance/Restitutions

This line item accounts for the receipt of payments from insurance companies or restitution payments received from the court for damage to Village property. A total of $10,000 is expected to be received for the 2012 fiscal year based on historical averages.

Interfund Transfers

This line item accounts for the $27,520 in annual payments required from Special Service Area #10 ($20,010) and Special Service Area #14 ($7,510) for the Village to maintain the infrastructure and fund its replacement in future years.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET GENERAL FUND EXPENDITURES

2009 2010 2011 2012 % Executive Department $107,221 $93,500 $97,950 $100,990 0.6% Administration Department $442,698 $436,200 $448,760 $462,470 2.9% Community Development $686,125 $649,320 $653,400 $601,560 3.8% Department Finance Department $586,700 $591,460 $586,530 $597,010 3.8% Management Information Services $144,208 $144,820 $100,000 $84,930 0.5% Parks and Recreation Department $2,223,585 $1,547,620 $1,652,260 $1,546,140 9.9% Police Department $6,578,538 $7,075,590 $7,063,590 $7,395,120 47.1% Public Works Department $3,060,288 $2,881,560 $2,903,180 $3,321,630 21.2% Professional Services- Engineering $13,203 $14,610 $12,630 $35,180 0.2% Professional Services- Legal $135,079 $147,260 $134,540 $118,400 0.8% Insurance / Tort $318,193 $354,900 $593,050 $449,520 2.9% Transfers $993,217 $982,000 $1,030,730 $983,540 6.3% Total $15,289,055 $14,918,840 $15,276,620 $15,696,490

Community Development Transf ers Executive Legal Administration Finance Insurance/Tort Engineering MIS Parks and Recreation Public Works

Police

46 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

GENERAL FUND SUMMARY

TOTAL REVENUES 15,643,766 15,362,550 15,184,136 16,420,560 15,722,950 15,722,950

EXPENDITURES

Executive 558,073 107,221 92,456 95,030 100,990 100,990 Administration 414,451 442,698 428,513 442,130 462,470 462,470 Community Development - Admin. & Planning 260,362 264,633 267,164 270,630 279,830 279,830 Community Development - Building & Zoning 553,437 421,492 381,511 345,250 321,730 321,730 Finance 551,248 586,700 583,245 561,890 597,010 597,010 Management Info. Systems 125,744 144,208 136,597 87,590 84,930 84,930 Parks & Recreation - Administration 265,122 278,018 280,525 283,390 294,700 294,700 Parks & Recreation - Parks 580,402 1,185,194 562,939 576,400 486,300 486,300 Parks & Recreation - Rec. & Beaches 785,875 760,373 728,361 723,780 765,140 765,140 Police- Police Commission 13,129 2,743 9,440 1,320 1,840 1,840 Police - Administration & Operations 6,598,405 6,575,795 6,853,605 6,947,840 7,393,280 7,393,280 Public Works-Administration 269,678 275,542 273,891 273,180 298,530 298,530 Public Works-Streets 1,547,597 1,363,216 1,161,815 1,127,480 1,337,330 1,337,330 Public Works-Public Properties 1,611,317 1,421,530 1,346,183 1,500,360 1,685,770 1,685,770 Prof.Contractual Svcs. - Engineering 57,837 13,203 14,420 16,500 35,180 35,180 Prof.Contractual Svcs. - Legal 136,792 135,079 140,076 117,450 118,400 118,400 Insurance and Tort 270,185 318,193 352,190 522,350 449,520 449,520 Interfund Transfers 1,075,346 993,217 981,992 1,026,470 983,540 983,540

TOTAL EXPENDITURES 15,674,999 15,289,056 14,594,923 14,919,040 15,696,490 15,696,490

Excess (Deficiency) of Revenues Over Expends. (31,233) 73,494 589,213 1,501,520 26,460 26,460

Available Fund Balance at start of FY 4,806,547 4,761,398 4,202,156 4,760,728 6,262,248 6,262,248

Net Decrease (Increase) in Assets (13,915) (632,736) (30,642) 0 0 0

Available Fund Balance at end of Fiscal Year 4,761,398 4,202,156 4,760,728 6,262,248 6,288,708 6,288,708

Operating Reserve 3,934,440 3,918,750 3,822,264 3,648,731 3,729,760 3,729,760

Net Available Fund Balance at end of FY 826,958 283,406 938,464 2,613,517 2,558,948 2,558,948

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET GENERAL FUND – FUND BALANCE

Available Fund Operating Net Available Fiscal Year Balance Reserve Fund Balance 2006 $5,494,895 $3,267,551 $2,227,344 2007 $4,806,547 $3,623,469 $1,183,078 2008 $4,761,398 $3,934,440 $826,958 2009 $4,202,156 $3,918,750 $283,406 2010 $4,239,726 $3,822,264 $417,462 2011 $4,241,456 $3,729,710 $511,746 2012 $6,288,708 $3,729,760 $2,558,948

Available Fund Operating Net Available $7,000,000 Balance Reserve Fund Balance

$6,000,000

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

$0 2006 2007 2008 2009 2010 2011 2012

48 Woods Creek Lake is the largest of the 4 lakes within the Village, with two swimming areas (Indian Trail Beach and Butch Hagele Beach), paddle-boat and kayak rentals, ﬁshing, and a variety of summer beach activities provided by the Parks & Recreation Department.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET EXECUTIVE DEPARTMENT NARRATIVE

The Executive Department consists of the elected officials of the Village, which serves, primarily, as the legislative body of the Village. The Village President, Village Clerk and six Trustees are elected at large from the citizen population. The Village President and the Board of Trustees are responsible for all legislative matters and public policy determinations. The Village President presides over Board meetings and the six Trustees determine policy as expressed in ordinances and resolutions, which must be approved by majority vote. The Village Clerk is responsible for the provision of election services and to draft the minutes of meetings of the Board of Trustees.

Program Review

In November 2010 the Village revised Chapter 36 of the Municipal Code to better regulate the issuance of taxicab licenses within the Village. Since that time, the Village has added four licensed Passenger Vehicle Companies, with 11 Chauffer’s licenses and 10 Public Passenger Vehicle Licenses. These licenses are renewed on an annual basis.

A long term goal of the Executive Department has been to retain the vital records of the Village in an electronic document management system (Laserfiche). The Department began this process by moving all Ordinances, Resolutions and Minutes into the Laserfiche repository. The department’s goal this year was to add agreements, airport files, etc. into Laserfiche. In 2011, the Department successfully completed this goal. As an ongoing practice, the Department continues to scan Board-approved ordinances, resolutions, minutes and agreements into Laserfiche in addition to maintaining hard copies.

More than 100 new resident packets were given out to interested parties. The packet itself was changed to include new items (such as a J.U.L.I.E. information sheet) and the Village’s community profile was updated and redesigned.

The State recommends that the Application for Authority to Dispose of Local Records be updated every five to ten years. The Village’s Application was last approved in March 2004. The Department began the process with the State in the 4th quarter of 2010 and received notification of the approval in December of that year. The Police Commission began a separate Application process in December 2010 and received approval on March 1, 2011.

Goals and Objectives

¾ Enact legislation necessary for the effective management of Village activities and operations. ¾ Maintain the vital records of the Village according to the Local Records Act. ¾ Process Freedom of Information Act requests, including generating the necessary paperwork in a timely manner as required by law. ¾ Process licenses and applications including liquor licenses, electronic/mechanical amusement device licenses, and ice cream vendor licenses.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET EXECUTIVE DEPARTMENT NARRATIVE

Performance Indicators estimated projected 2009 2010 2011 2012 Resolutions Adopted 22 14 18 18 Ordinances Adopted 74 74 50 56 Number of FOIA Requests Processed 243 349 280 322 Number of Passenger Vehicle Company Licenses 0 4 4 3 Number of Chauffeur’s Licenses 0 11 11 10 Number of Public Passenger Vehicle 0 10 10 9 Licenses Number of Liquor Licenses 24 24 23 23 Number of Tobacco Licenses 14 14 14 14

Budget Highlights

The Department’s budget has been developed by concentrating on maintaining the current level of service. No new positions or capital items are being requested.

80% Personal Services $80,670 19% Prof. Development $18,750 0% Contractual Services $470

1% Commodities $1,100 0% Capital Outlay $0 Total Budget $100,990

Personnel Summary 2009 2010 2011 2012 Elected Officials: Village President 1 1 1 1 Village Trustees 6 6 6 6 Village Clerk 1 1 1 1

Part Time Positions: Secretary 1 1 0 0 Office Assistant 0 0 1 1

Capital Projects/Equipment

No capital items are planned for in FY12.

51 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

GENERAL FUND Executive Department

Personal Services 105.41200 Salaries, Part-Time 22,167 21,193 15,329 16,060 16,700 16,700 105.41300 Salaries, Board & Commissions 53,500 52,425 49,325 52,080 55,200 55,200 105.41400 Salaries, Over-Time 0 0 0 480 0 0 105.42100 Employer Portion FICA 5,795 5,632 4,946 5,250 5,510 5,510 105.42200 IMRF - Benefit 2,052 3,191 3,237 3,370 3,240 3,240 105.42700 Other Employee Benefits 82 0 13 20 20 20

Total Personal Services 83,596 82,441 72,851 77,260 80,670 80,670

Professional Development 105.45100 Conferences, Schools, & Training 1,337 2,284 1,922 1,360 1,990 1,990 105.45200 Dues 13,826 14,476 11,728 10,720 11,190 11,190 105.45400 Travel Exp., Miles,Lodg,Meals 2,253 3,762 1,840 1,440 2,270 2,270 105.45500 Community Affairs, Meals-Awards 4,180 2,337 2,300 2,300 3,300 3,300

Total Professional Development 21,595 22,858 17,790 15,820 18,750 18,750

Contractual Services 105.52400 Medical Services 95 0 199000 105.53400 Telephone 775 766 676 620 470 470 105.54200 Publishing/Advertising 260 00000 105.55200 Sales Tax Reimbursements 450,976 00000

Total Contractual Services 452,106 766 875 620 470 470

Commodities 105.62200 Operating Supplies 494 707 605 730 500 500 105.62400 Uniforms and Protective Clothing 282 449 335 600 600 600

Total Commodities 776 1,156 940 1,330 1,100 1,100

Total Executive Dept. Expenditures 558,073 107,221 92,456 95,030 100,990 100,990

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET ADMINISTRATION DEPARTMENT NARRATIVE

The Administration Department is responsible for the general planning, organization and direction of the operating departments of the Village. Economic development activities, public information and support services to the elected officials are conducted under the auspices of the Administration Department. In addition, the Village Administrator prepares the agenda for the Committee of the Whole and Board of Trustee Meetings. The Assistant Village Administrator serves as liaison to the Business Relations Committee.

Program Review

Business Relations Committee The Business Relations Committee (BRC) was created by the Village Board to replace the Economic Development Commission (EDC), which had been in place since the mid-1990’s. The BRC was created in order to provide a greater focus on business retention and expansion efforts. A brief summary of the Committee’s accomplishments is listed below:

Gordon Larsen Business Achievement Award – Award program developed by the Business Relations Committee to recognize businesses within the community. Flat Squirrel Scooters received the 2011 award. The Committee unanimously voted for Flat Squirrel Scooters, wanting to recognize their generosity in donating the Village a fully equipped 2012 CF Moto V3, 250CC automatic police scooter. The scooter allows the Police Department to provide enhanced patrol services, including the patrol of the miles of bike paths throughout the Village. In addition to the donation, Flat Squirrel Scooters is a Shop Lake in the Hills program supporter. The business has also continued to grow during a very difficult economy.

Shop Lake in the Hills Program – Residents are encouraged to register for the Shop Lake in the Hills program by submitting their email address through the Village’s website. This enables the residents to receive periodic emails with discounts being offered by local businesses. The program allows local businesses a free avenue to market themselves to residents. In addition to the electronic offer that is sent, the Village also features the business sponsors on the website. In exchange, the Village requests that participating businesses display the Shop Lake in the Hills window clings and brochures that are meant to better educate the residents of the importance of keeping their shopping dollars local.

The program has grown significantly since it was first launched in June 2010. The first distribution went out to 102 registered email addresses. One year later, the number had increased to 552 email addresses. The Village anticipates this growth to continue, estimating a total of 708 email participants by the end of the year. The number of business partners has increased to 56, with 27 of these businesses providing electronic offers to the participants.

Business Enhancement Program – The Business Enhancement program offers local businesses a networking opportunity while providing a brief seminar on topics relative to Lake in the Hills’ businesses. In October of 2011, the Committee invited Castle Bank to conduct a seminar discussing the different Small Business Administration (SBA) loan programs available to businesses, along with loan limits and the use of the funds. The Committee hosted a second business enhancement program in November 2011, which focused on current legislative issues affecting small businesses. The emphasis was on taxes, healthcare and insurance.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET ADMINISTRATION DEPARTMENT NARRATIVE

Information Services Management Group The Information Systems Management Group (ISMG) consists of representatives from each department who interact with both the Village’s IT contractor and the Village employees to resolve technical issues and create long-term solutions. The Administration Department oversees this group, ensuring that the goals presented by ISMG relate to the overall goals of the Village.

Village of Lake in the Hills Website The Administration Department continues to manage the content and design of the Village’s website. Features are continuously added to ensure the site operates as a successful communications tool.

Community Organizations The Administration Department plays a key communications role through its memberships with a variety of community organizations. The Administration Department currently holds key positions on the Chamber of Commerce (Board member), Lake in the Hills Rotary, and the DI300 Community Leadership Council.

Goals and Objectives

¾ Review organizational operating policies and procedures and update as necessary. ¾ Promote beneficial commercial and non-residential development of the Village with the assistance of the Business Relations Committee and other departments. ¾ Explore various funding mechanisms for new programs in the Village. ¾ Increase the number of Shop Lake in the Hills registrations and business partners by 10%. ¾ Increase the average number of unique visitors to the website and pageviews by 10%.

Performance Indicators estimated projected 2009 2010 2011 2012 Village Print Newsletters 8 2 2 2 Village eNewsletters 50 52 60 64 Symposiums and Trade Shows 1 1 0 1 Business Relations Committee Mtgs. 12 10 8 12 Business Retention Programs 8 3 2 4 Shop Lake in the Hills Business Partners 0 44 58 70 Shop Lake in the Hills Registrations 0 298 708 779 Website – Average Unique Visitors 7673 8470 10243 11267 Website – Average Pageviews 28838 35502 38890 42779

Budget Highlights

The Department’s budget has been developed by concentrating on maintaining the current level of service. No new positions or capital items are being requested. Business Relations Committee programs are included in this budget.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET ADMINISTRATION DEPARTMENT NARRATIVE

88% Personal Services $406,610 3% Prof. Development $12,000

9% Contractual Services $39,800 1% Commodities $4,060 0% Capital Outlay $0

Total Budget $462,470

Personnel Summary

2009 2010 2011 2012 Full Time Employees Village Administrator 1 1 1 1 Asst. Village Administrator 1 1 1 1 Administrative Assistant 1 1 1 1

Elected/Commissioned Officials Business Relations Committee Members 7 7 7 7

Capital Projects/Equipment

No capital items are planned for in FY12.

55 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

Administration Department

Personal Services 110.41100 Salaries, Full-Time 262,900 275,908 276,159 275,110 283,840 283,840 110.41300 Salaries, Boards and Commissions 2,750 3,350 2,550 2,450 3,360 3,360 110.41400 Salaries, Over-Time 684 630 590 420 570 570 110.42100 Employer Portion FICA 17,807 19,245 18,920 18,910 19,700 19,700 110.42200 IMRF - Benefit 25,622 27,579 31,217 32,020 31,780 31,780 110.42500 Employee Health Insurance 42,282 48,555 51,446 53,690 57,950 57,950 110.42700 Other Employee Benefits 4,599 9,095 5,604 7,570 9,410 9,410

Total Personal Services 356,644 384,362 386,486 390,170 406,610 406,610

Professional Development 110.45100 Conferences, Schools, & Training 1,598 1,845 994 1,520 2,270 2,270 110.45200 Dues 3,246 1,360 2,747 3,230 3,070 3,070 110.45300 Publications & Subscriptions 694 966 981 930 1,040 1,040 110.45400 Travel Exp., Miles,Lodg,Meals 3,727 3,441 2,563 2,920 4,270 4,270 110.45500 Community Affairs, Meals-Awards 1,012 1,288 640 900 1,350 1,350

Total Professional Development 10,277 8,900 7,925 9,500 12,000 12,000

Contractual Services 110.51400 Maintenance, Machinery/Equip 2,231 2,165 2,382 2,620 2,890 2,890 110.52800 Other Professional Services 949 2,569 1,631 2,410 2,430 2,430 110.53400 Telephone 16,693 18,104 18,467 21,000 23,780 23,780 110.54100 Postage 8,151 7,734 3,856 3,580 3,840 3,840 110.54200 Publishing & Advertising 485 134 735 1,700 250 250 110.54300 Printing & Copying 12,790 12,596 3,757 6,650 6,610 6,610 110.54400 Rental Contracts 971 00000

Total Contractual Services 42,271 43,302 30,828 37,960 39,800 39,800

Commodities 110.61550 Supplies/Parts-Software 0 0 111000 110.62100 Office Supplies 2,734 2,674 1,577 2,430 2,500 2,500 110.62200 Operating Supplies 1,886 1,444 1,062 1,710 1,200 1,200 110.62400 Uniforms and Protective Clothing 639 601 525 360 360 360

Total Commodities 5,259 4,718 3,274 4,500 4,060 4,060

Capital Outlay 110.81400 Equipment 0 6950000 110.81550 Computer Software 0 7210000

Total Capital Outlay 0 1,416 0000

Total Admin. Dept. Expenditures 414,451 442,698 428,513 442,130 462,470 462,470

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET COMMUNITY DEVELOPMENT DEPARTMENT ADMIN. AND PLANNING NARRATIVE

The Community Development Department, Administration/Planning Division oversees land management activities in the Village as well as planning, organizing, administering, supervising and coordinating community development programs and activities. This Division is also responsible for administering the Village’s subdivision control ordinance, zoning ordinance and comprehensive plan and working with the elected and appointed bodies in the Village.

Program Review

The economy continued to affect development in the Village in 2011, however we did see some progress being made in new commercial and residential projects. The most significant project was The Residences of Lake in the Hills Senior Housing project at the northeast corner of Algonquin Road and Harvest Gate. The 92-unit independent care facility started construction in the late spring of 2011 and will offer high-end rental units to people over the age of 55 at affordable rates and should be open in late spring/early summer of 2012.

New restaurants that opened up along Randall Road included Yumz Frozen Yogurt and Pita Kabobs. In addition, the owner of the former King Wok Restaurant along Randall Road opened a new restaurant across the road called Chen’s in the former Bakers Square Restaurant building. During 2011, the Walgreen’s along Randall Road completed a remodeling of the interior of their store and also completed exterior work including expanding the windows along the front of the building and improving the upper façade. Development activity occurred along the Rt. 31 corridor this year with the opening of the Rt. 31 Street Market and submittal of plans to the Village for an asphalt shingle recycling plant.

The Village continues to experience slow housing starts, however the Cheswick Place development along Ackman Road anticipates building 12 new homes this year and should be finished with their development by early 2012. In addition, we received permit applications for units in the Lakes of Boulder Ridge project at the northwest corner of Frank and Algonquin Roads, which has not seen any development activity since 2007.

The Department worked with the Village of Algonquin to come up with a landscape plan for the medians along Algonquin Road, west of Randall Road. We will initially start with the first median west of Randall Road and plan to install the plantings in 2012. This will require working with the Village of Algonquin and McHenry County on an Intergovernmental Agreement, which the Village Board authorized to proceed with in September, 2011.

The Division continues to lead the Village’s economic development efforts, including providing marketing materials to potential commercial developers and businesses. We have worked closely with local developers and property owners on their sites and are assisting in the marketing of those. In addition, department staff attends events sponsored by the International Council of Shopping Centers (ICSC), which attract many retailers and developers and provides an opportunity for the Village to distribute information on our commercial sites. The Department hosted a workshop in March for home based businesses and commercial building owners. The goal of the workshop was to stimulate home based businesses in thinking about entering into a business location outside of their home.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET COMMUNITY DEVELOPMENT DEPARTMENT ADMIN. AND PLANNING NARRATIVE

Goals and Objectives

¾ Expand economic development efforts in the Village including meeting with land owners and developers, expanding awareness of the Economic Incentive Policy, reaching out to smaller local commercial developers and /or potential franchisees, and expanding marketing of industrial/light manufacturing properties. ¾ Expand efforts to work with adjoining municipalities in intergovernmental agreements regarding the sharing of resources and/or outsourcing our services. ¾ Work with elected/appointed officials and developers on residential and commercial projects in the Village in order to accomplish the goals established in the Comprehensive Plan. ¾ Update ordinances, policies, department forms and applications. ¾ Work with the Village of Algonquin and McHenry County to develop landscape plans and maintenance agreements for the medians along Algonquin Road. ¾ Review and amend the Municipal Code to better fit the growth objectives of current development conditions of the Village.

Performance Indicators

Estimated Projected 2009 2010 2011 2012 Sketch Plans reviewed 0 2 1 2 Tentative Plats reviewed 0 1 1 2 Final Plats reviewed 2 0 1 2

Development Plans reviewed 2 2 1 2 Planning and Zoning Commission 11 11 8 12 meetings Planning and Zoning Commission 15 16 8 12 public hearings Marketing packets sent/contacts 75 30 60 60 made for economic development

Budget Highlights

The Division’s budget has been developed by concentrating on maintaining the current level of service. No new positions or capital items are being requested.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET COMMUNITY DEVELOPMENT DEPARTMENT ADMIN. AND PLANNING NARRATIVE

97% Personal Services $272,460 2% Prof. Development $4,200 1% Contractual Services $2,010 0% Commodities $1,160 0% Capital Outlay $0 Total Budget $279,830

Personnel Summary

2009 2010 2011 2012 Elected/Commissioned Officials Planning and Zoning Commission Members 7 7 7 7 Full Time Employees Dir. of Community Development 1 1 1 1 Administrative Assistant 1 1 1 1 Part Time Employees Development Coordinator 1 1 1 1

Capital Projects/Equipment

No capital items are planned for in FY12.

59 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

Community Development - Administration & Planning

Personal Services 115.41100 Salaries, Full-Time 149,061 154,455 154,596 154,010 158,450 158,450 115.41200 Salaries, Part-Time 28,187 28,798 28,638 28,660 29,300 29,300 115.41300 Salaries, Board & Commissions 3,300 3,400 3,250 2,960 3,360 3,360 115.41400 Salaries, Over-Time 787 641 782 710 870 870 115.42100 Employer Portion FICA 13,465 14,163 14,107 14,380 14,910 14,910 115.42200 IMRF - Benefit 17,340 18,173 20,718 21,420 20,910 20,910 115.42500 Employee Health Insurance 31,017 33,251 35,500 37,140 39,960 39,960 115.42700 Other Employee Benefits 3,455 4,135 3,416 3,140 4,700 4,700

Total Personal Services 246,614 257,016 261,008 262,420 272,460 272,460

Professional Development 115.45100 Conferences, Schools, & Training 1,492 691 845 850 1,450 1,450 115.45200 Dues 632 644 831 880 970 970 115.45300 Publications & Subscriptions 949 868 926 1,040 1,040 1,040 115.45400 Travel Exp., Mileage,Meals 1,910 454 1,029 810 740 740 115.45500 Community Affairs 271 00000

Total Professional Development 5,255 2,657 3,631 3,580 4,200 4,200

Contractual Services 115.52800 Other Professional Services 4,800 941 161 600 600 600 115.53400 Telephone Services 590 572 506 480 410 410 115.54100 Postage 265 223 296 360 200 200 115.54200 Publishing & Advertising 168 228 146 600 200 200 115.54300 Printing & Copying 891 1,359 395 700 600 600

Total Contractual Services 6,714 3,323 1,504 2,740 2,010 2,010

Commodities 115.62200 Operating Supplies 1,289 1,223 679 1,530 800 800 115.62400 Uniforms/Protective Clothing 491 415 342 360 360 360

Total Commodities 1,780 1,638 1,021 1,890 1,160 1,160

Total Comm. Dev.-Admin. & Planning 260,362 264,633 267,164 270,630 279,830 279,830

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET COMMUNITY DEVELOPMENT DEPARTMENT BUILDING AND ZONING NARRATIVE

The Community Development Department, Building and Zoning Division is responsible for monitoring all phases of construction and development throughout the Village to assure health and life safety regulations are being adhered to. This division is also charged with plan reviews, building and property code enforcement, and zoning/permit coordination.

Program Review

Although there was a continued slowdown in building activity in the Village, Division staff continued reviewing plans, processing permits and conducting inspections for various projects this past fiscal year. Commercial occupancies remained steady as we continued to see new tenants move into existing commercial space such as Yumz Frozen Yogurt, Pita Kabobs Restaurant and Chen’s Restaurant along Randall Road. Remodeling work occurred at the Walgreen’s along Randall Road and Costco added new underground storage tanks to their gas station site. Construction started on the 92 unit Residences of Lake in the Hills Senior Housing project this past spring next to Village Hall. New single-family home construction in the Village continues to be slow due to the economy, with a total of 12 new single-family 2 duplex dwelling units projected for 2011. The Cheswick Place Subdivision along Ackman Road continued with steady home starts this year and should be completed by early 2012. The Lakes of Boulder Ridge project at Frank and Algonquin Roads saw their first permit activity in almost 4 years.

The Division staff has continued to work hard in property maintenance enforcement. The increased cases of home foreclosures have created additional challenges regarding property maintenance issues, particularly high grass and weeds. The Department had conducted over 2,700 property maintenance inspections as of the end of August 2011. Early in 2011, the Village Board approved an amendment to the Zoning Ordinance to require vehicles covered in tarps to be operable, licensed and covered with a commercially made cover. Through our enforcement efforts, we were able to bring over 55 vehicles covered with tarps into compliance with the new regulations by end of the summer.

The Department participated in the Enhanced Energy Code Compliance Project through the Metropolitan Mayors Caucus this year. The project allowed the Department to receive technical assistance in the enforcement of the International Energy Conservation Code and a report was generated that provides recommendations to enhance our energy code compliance efforts.

The Department continued activities regarding building safety education as we participated again in Building Safety Month during May. Department staff visited three sections of the 3rd Grade class at Lincoln Prairie Elementary School to talk to the children about the importance of building safety. We also provided educational materials at the Public Works Open House and articles in the Resident Insider.

Building and Zoning Goals and Objectives

¾ Increase certifications for inspectors in areas of their specialization. ¾ Increase enforcement activities within commercial and residential areas that have continued code violations.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET COMMUNITY DEVELOPMENT DEPARTMENT BUILDING AND ZONING NARRATIVE

¾ Continue to expand educational outreach efforts during Building Safety Month. ¾ Promote good customer service, including conducting a feedback survey. ¾ Revise departmental codes as needed, including review of the 2009 International Codes. ¾ Coordinate safety activities for building division employees. ¾ Continue to review programs and services offered by the Division and make any necessary changes to make more efficient. ¾ Review and implement recommendations from the Metropolitan Mayors Caucus Advanced Energy Code Project related to improved compliance with the 2009 International Energy Conservation Code.

Performance Indicators Estimated Projected 2009 2010 2011 2012

Contractor Licenses 495 408 450 450 Certificates of Occ. – Comm. 35 35 35 35 Building Inspections 3092 1817 1750 1800 Property Maintenance Insp. 2779 3317 3700 3500 Percentage of tickets issued based upon prop. maint. insp. 5.5% 4.5% 7% 7% Construction: Single Family Detached 9 3 12 5 Duplex 0 0 2 4 Townhomes 0 0 0 0 Commercial 1 1 1 2

Budget Highlights

The Division’s budget has been developed by concentrating on maintaining the current level of service to the community. The Department’s Permit Coordinator retired in April, and we re-assigned their job duties to other personnel in the Department and hired a part-time Property Maintenance Officer in June. The Building Inspector will be retiring in February of 2012 after 12 years service to the Village. A new replacement will be hired at the beginning of the salary range for that position, which will offer a savings to the personal services fund. 93% Personal Services $300,240 1% Prof. Development $2,830 2% Contractual Services $4,940 4% Commodities $13,720 0% Capital Outlay $0

Total Budget $321,730

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET COMMUNITY DEVELOPMENT DEPARTMENT BUILDING AND ZONING NARRATIVE

Personnel Summary

2009 2010 2011 2012 Full Time Employees Building Commissioner 1 1 1 1 Permit Coordinator 1 1 0 0 Secretary 1 1 1 1 Plumbing Inspector 0 0 0 0 Building Inspector 2 1 1 1 Part Time Employees Property Maintenance Officer 0 0 1 1

Capital Projects/Equipment

No capital items are planned for in FY12.

63 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

Community Development - Building and Zoning

Personal Services 120.41100 Salaries, Full-Time 375,932 301,506 263,388 223,210 192,760 192,760 120.41200 Salaries, Part-Time 0 0 0 13,380 23,890 23,890 120.42100 Employer Portion FICA 28,536 22,464 19,748 18,370 16,930 16,930 120.42200 IMRF - Benefit 36,992 29,327 29,516 27,160 23,940 23,940 120.42500 Employee Health Insurance 62,143 49,029 48,053 38,790 37,950 37,950 120.42700 Other Employee Benefits 11,297 1,959 3,851 3,620 4,770 4,770

Total Personal Services 514,901 404,285 364,557 324,530 300,240 300,240

Professional Development 120.45100 Conferences, Schools, & Training 1,779 1,441 1,694 1,520 1,770 1,770 120.45200 Dues 410 275 275 300 330 330 120.45300 Publications & Subscriptions 564 366 416 400 400 400 120.45400 Travel Exp., Miles,Lodg,Meals 352 215 103 100 150 150 120.45500 Community Affairs 0 269 75 160 180 180

Total Professional Development 3,105 2,565 2,564 2,480 2,830 2,830

Contractual Services 120.51400 Maint. Machinery and Equip. 362 362 545 600 690 690 120.51600 Maint. Vehicles 871 0 0 250 250 250 120.52400 Medical Services 95 0 0 70 70 70 120.52800 Other Professional Services 0 43 258 250 900 900 120.53400 Telephone 1,313 1,204 510 600 570 570 120.54100 Postage 2,030 1,035 2,792 1,710 1,760 1,760 120.54200 Publishing & Advertising 0 0 0 600 0 0 120.54300 Printing & Copying 480 395 693 700 700 700 120.59900 Miscellaneous 75 00000

Total Contractual Services 5,225 3,039 4,798 4,780 4,940 4,940

Commodities 120.61600 Maint. Supply & Parts, Vehicles 1,229 819 971 2,000 1,200 1,200 120.62100 Office Supplies 3,605 2,984 2,751 3,100 2,700 2,700 120.62200 Operating Supplies 1,005 789 464 810 920 920 120.62300 Fuel & Petroleum Supplies 9,105 5,068 4,871 6,710 7,880 7,880 120.62400 Uniforms and Protective Clothing 1,565 794 535 840 1,020 1,020

Total Commodities 16,509 10,454 9,592 13,460 13,720 13,720

Capital Outlay 120.81500 Computer Hardware 0 1,149 0000 120.81600 Vehicles 13,697 00000

Total Capital Outlay 13,697 1,149 0000

Total Comm. Dev. -Bldg. Expenditures 553,437 421,492 381,511 345,250 321,730 321,730

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET FINANCE DEPARTMENT NARRATIVE

The Finance Department is responsible for the administration of the fiscal operations of the Village. These responsibilities include the recording and reporting of all financial transactions, billing and collecting all monies due to the Village, making payments to employees and vendors, management and investment of Village funds, assisting in the preparation of the annual operating budget, preparing the comprehensive annual financial report, and financial forecasting. Additionally, Finance Department personnel administer the Village’s human resources functions, the Police Pension plan, and workers compensation claims.

Program Review

GFOA Certificate of Achievement Award – The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Village of Lake in the Hills for its comprehensive annual financial report for the fiscal year ended December 31, 2010. This was the twelfth consecutive year that the Village has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

GFOA Distinguished Budget Presentation Award – The Village received the Government Finance Officers Association’s Distinguished Budget Presentation award for the twelfth consecutive year for the fiscal year beginning January 1, 2011. The Finance Department assisted the Village Administrator’s office in the preparation of the budget.

Wellness Program – Several wellness program events were conducted during fiscal year 2011. Lunch-n-Learn events were held during the year to educate employees on developing healthier eating habits, getting and staying active, changing behaviors for good, and the benefits of eating naturally grown foods. A guided grocery store tour was also provided where a dietician led employees through the store to identify healthy menu options. Additionally, the Village held its fifth annual employee benefits fair where employees were able to meet with several of the Village’s benefits providers to get more detailed information on each of their programs and to have their questions on the programs answered. The annual benefits fair contained several wellness related booths. Seasonal flu shots were also made available to employees and their family members. Wellness screenings were made available to all employees to assist them with managing their health in a more proactive fashion.

Online Recruitment Software – During fiscal year 2011, the Village upgraded its online employee recruitment and applicant tracking software. The new NEOGOV software went live during the month of June. Training was provided to all departments to review the software’s capability and functionality, and to outline the responsibilities of the applicant, the hiring department, and Human Resources throughout the recruitment process. The new system automates the recruitment function to a greater extent than the previous software and contains many new features to make the recruitment process more efficient.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET FINANCE DEPARTMENT NARRATIVE

Electronic Lockbox – An electronic lockbox program was implemented during fiscal year 2011. This service converts all of the online bill payment checks the Village receives in the mail to an electronic deposit. The Village receives a daily file with the payment details for each customer that is uploaded into the cash receipts system for same-day credit to each customer’s account. During the previous fiscal year, the Village received more than 8,000 online bill payment checks in the mail. This service eliminates the need to process those paper payments, manually enter them into the cash receipts system, reconcile the paper checks, and deposit them on a daily basis. This has streamlined the front counter operations and made the cash receipt function much more efficient in terms of processing payments.

IMRF Unfunded Liability Amortization – During fiscal year 2011, additional funding was included in the budget to continue to amortize the Village’s Illinois Municipal Retirement Fund (IMRF) unfunded liability over a closed amortization period ending in 2033. The IMRF Board of Trustees had made changes to the required minimum funding level that changed the amortization period to an open 30-year period. However, the Village would have had to continue to pay 7.5% interest on the unfunded liability each year. By continuing to amortize the unfunded liability through the year 2033 only, the Village’s interest costs will diminish over time and eventually be eliminated.

Illinois Metropolitan Investment Fund – The Village began participation in the Illinois Metropolitan Investment Fund (IMET) during fiscal year 2011. IMET is an investment pool comprised of several municipalities and other public entities throughout Illinois. By adding IMET to its investment options, the Village hopes to achieve higher investment rate of returns without sacrificing the security of its investments.

Goals and Objectives

¾ Obtain Certificate of Achievement for Excellence in Financial Reporting award. ¾ Assist in obtaining the Distinguished Budget Presentation award. ¾ Continue to provide accurate and timely reporting to the Village Board and departments. ¾ Maintain strong internal controls. ¾ Maximize investment income within the scope of the Village’s investment policy. ¾ Ensure Finance Department staff obtains continuing education/training as needed. ¾ Continue to expand the Village’s Wellness Program. ¾ Increase participation in the ach Direct Pay Program for water bills. ¾ Continue to reduce the unfunded liabilities in employee pension plans.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET FINANCE DEPARTMENT NARRATIVE

Performance Indicators Estimated Projected 2009 2010 2011 2012 Vendor Checks Issued 4,294 3,972 3,960 3,900 Payroll Vouchers/Checks Issued 4,164 4,139 4,074 4,000 Business Licenses Issued 629 610 600 600 Purchase Orders Issued 220 171 171 175 Garage Sale Permits Issued 965 857 720 720 Wellness Program Offerings 5 9 11 12 Receipts Processed 47,094 46,263 46,031 46,000 Investment Portfolio Value $13.8 mil $16.3 mil $19.1 mil $18.8 mil

Budget Highlights

The FY12 budget request for all departments includes additional funding to continue to amortize the Village’s Illinois Municipal Retirement Fund (IMRF) unfunded liability over a closed amortization period ending in 2033 in order to save the Village money in the long term through reduced interest payments and also reduce the length of time required to achieve 100% funded status.

Additionally, funds are included to provide incentives to participate in the Village’s wellness program and to continue the employee health assessments as part of the program. The FY12 budget also includes funds to continue participation in the Government Finance Officers Association’s Certificate of Achievement for Excellence in Financial Reporting Award program.

Funding for a management training program is included in the FY12 budget to provide Village- wide training for all management and supervisory personnel on a quarterly basis. The FY12 Finance Department budget does not contain any out-of-state training requiring overnight travel. Funding for the sixth annual employee benefits fair is also included in the budget.

92% Personal Services $550,320 2% Prof. Development $9,170 5% Contractual Services $27,810 2% Commodities $9,710 0% Capital Outlay $0 Total Budget $597,010

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET FINANCE DEPARTMENT NARRATIVE

Personnel Summary 2009 2010 2011 2012 Full-Time Employees Finance Director 1 1 1 1 Assistant Finance Director 1 1 1 1 Human Resources Coordinator* 0.85 0.85 0.85 0.85 Administrative Assistant* 0.85 0.85 0.85 0.85 Accounts Payable Clerk* 0.50 0.50 0.50 0.50 Accounts Receivable Clerk* 0.50 0.50 0.50 0.50 Water Billing Clerk* 0 0 0 0 Part-Time Employees Accountant 1 1 1 1 Secretary* 0 0 0 0

*Note: The Human Resources Coordinator, Administrative Assistant, Accounts Payable Clerk, Accounts Receivable Clerk, Water Billing Clerk, and Part-Time Secretary positions have a portion of their salaries charged to the Water Division of the Public Works Department. This will also be reflected in the Water Operations & Maintenance Fund budget sheets.

Capital Projects/Equipment

No capital items are planned for in FY12.

68 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

Finance Department

Personal Services 130.41100 Salaries, Full-Time 355,115 368,671 369,254 349,010 361,570 361,570 130.41200 Salaries, Part-Time 41,614 44,244 42,938 35,320 36,700 36,700 130.41400 Salaries, Over-Time 0 0 0 0 400 400 130.42100 Employer Portion FICA 28,737 31,049 30,414 29,160 30,410 30,410 130.42200 IMRF - Benefit 38,678 41,675 46,900 44,860 44,960 44,960 130.42500 Employee Health Insurance 43,968 44,870 47,565 52,000 59,240 59,240 130.42700 Other Employee Benefits 7,971 18,192 11,783 12,320 17,040 17,040

Total Personal Services 516,083 548,700 548,855 522,670 550,320 550,320

Professional Development 130.45100 Conferences, Schools & Training 3,103 2,130 1,888 2,680 2,860 2,860 130.45200 Dues 1,662 1,879 1,684 1,980 2,240 2,240 130.45300 Publications & Subscriptions 790 545 922 1,040 1,200 1,200 130.45400 Travel Exp., Miles,Lodg,Meals 3,474 3,286 949 2,430 2,870 2,870

Total Professional Development 9,029 7,839 5,443 8,130 9,170 9,170

Contractual Services 130.51500 Maintenance, Computers 0 92 519 0 100 100 130.52100 Accounting Services 10,768 9,301 11,401 9,720 10,110 10,110 130.52400 Medical Services 420 679 1,180 990 1,200 1,200 130.52800 Other Professional Services 1,343 3,695 1,485 2,880 7,390 7,390 130.53400 Telephone 0 0 330 860 860 130.54100 Postage 3,805 4,304 4,465 4,060 4,230 4,230 130.54200 Publishing & Advertising 211 1,189 1,177 1,950 1,620 1,620 130.54300 Printing & Copying 1,586 1,919 1,272 2,300 2,300 2,300

Total Contractual Services 18,131 21,179 21,499 22,230 27,810 27,810

Commodities 130.61550 Supplies & Parts-Computers 0 0 0 0 320 320 130.62100 Office Supplies 6,564 6,222 6,373 6,000 6,000 6,000 130.62200 Operating Supplies 520 986 609 2,170 2,700 2,700 130.62400 Uniforms and Protective Clothing 921 501 467 690 690 690

Total Commodities 8,005 7,709 7,449 8,860 9,710 9,710

Capital Outlay 130.81400 Equipment 0 1,273 0000

Total Capital Outlay 0 1,273 0000

Total Finance Dept. Expenditures 551,248 586,700 583,245 561,890 597,010 597,010

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET MANAGEMENT INFORMATION SYSTEMS NARRATIVE

The Management Information Systems Division accounts for the purchase and maintenance of data processing hardware, software, and other computer and information systems related equipment used on a Village-wide basis. Department specific software and hardware are accounted for in each department’s budget.

Program Review

Equipment Replacement – Equipment replacement and purchases proceeded as scheduled during the past fiscal year. There were seventeen user computers that were scheduled and replaced throughout the Village. These computers were set up by Village staff, eliminating the cost of having the Village consultant undertake the task. Twelve additional user computers were replaced at the Police Department this past year due to the flooding of the lower level of the Police Department. Due to hardware failure, the Village also replaced two monitors in 2011.

Network Switch Replacement – Following the recommendation of the Village’s IT consultant, the Village replaced all five of their network switches. Three of the switches are located at Village Hall and one each at the Public Works facility and the Police Department.

External Hard Drive Replacement – The Village replaced the twelve external hard drives used for system backups in 2011. It was recommended by the Village’s IT consultant to replace them on an annual basis.

Internet Redundancy – The Village installed two new hardware firewalls, one at the public works facility and one at the police station in 2011. Using Comcast as our internet provider, the Village will reduce the downtime of the internet and increase the speed of network traffic between the three facilities.

Information Systems Policy Manual – The information systems policy manual was established to help employees understand what is expected of them regarding computer use in the Village. This policy is updated on an annual basis. Items of note updated during the 2011 fiscal year included the following: ¾ Employee New Hire / Termination Policy – Updated to clarify the timing of the new hire request form. ¾ Software Standardization / Licenses – Included language stating that any material downloaded from the internet should be downloaded to the local C: drive and scanned for viruses. ¾ Computer Maintenance and Updates Policy – Updated to include reviewing and removing any email or files that no longer serve a purpose. ¾ Energy Saving Technology Policy – Removed detailed procedures on how to recycle old computer equipment.

Software Applications – During the placement of the new equipment this past fiscal year, the Village upgraded those computers with the Windows 7 operating system. On an annual basis during the equipment replacement, the Village will be phasing out the Windows XP equipment and replacing it with Windows 7. The Village purchased new recruiting software called NeoGov

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET MANAGEMENT INFORMATION SYSTEMS NARRATIVE

which provides the Village with increased search and reporting functions over the previously used software.

Goals and Objectives

¾ Continue to support the Village’s network systems to increase efficiency, minimize downtime, and plan for future data processing needs of user departments. ¾ Replace and/or upgrade outdated equipment with new technology. ¾ Research and make recommendations regarding the efficient use of new technology. ¾ Maintain hardware, software, and license logs. ¾ Develop internal training programs for new and current employees.

Performance Indicators

Estimated Projected 2009 2010 2011 2012 Average Number of Consultant Hours 891 490 230 240 Number of Support Requests 228 329 235 259

Budget Highlights

Funds have been budgeted for the Village to have an information technology consultant provide network support and maintenance ($26,490-General Fund, $2,650-Water Operating & Maintenance Fund, and $300-Airport Operating & Maintenance Fund). Funds have also been budgeted for the replacement and upgrade of all equipment which has outlived its useful life. This includes replacing nine desktop workstations ($7,080-General Fund and $120-Water Operating & Maintenance Fund), replacing seven laptops ($5,720-General Fund and $3,180- Water Operating & Maintenance Fund), and replacing twelve external hard drives ($1,920).

0% Personal Services $0 0% Prof. Development $370 81% Contractual Services $68,840 12% Commodities $10,000 7% Capital Outlay $5,720 Total Budget $84,930

Capital Projects/Equipment

Computer Laptops $5,720 Total: $5,720

71 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

Management Information Systems

Professional Development 135.45100 Conferences, Schools & Training 625 824 75 80 160 160 135.45200 Dues 0 75 75 80 80 80 135.45300 Publications & Subscriptions 299 90 72 80 80 80 135.45400 Travel Exp., Miles,Lodg,Meals 1,153 2,170 81 180 50 50

Total Professional Development 2,077 3,159 303 420 370 370

Contractual Services 135.51500 Maint., Computers 99,538 91,116 70,971 56,200 64,170 64,170 135.52800 Other Professional Services 1,762 10,757 7,144 7,180 1,730 1,730 135.53500 Cable Provider Services 0 0 0 740 2,940 2,940 135.54100 Postage 104 00000

Total Contractual Services 101,405 101,873 78,115 64,120 68,840 68,840

Commodities 135.61500 Maint. Supply & Parts, Computers 4,598 4,849 12,736 21,050 10,000 10,000

Total Commodities 4,598 4,849 12,736 21,050 10,000 10,000

Capital Outlay 135.81500 Computer Hardware 17,169 29,198 32,764 2,000 5,720 5,720 135.81550 Computer Software 495 5,127 12,680 0 0 0

Total Capital Outlay 17,664 34,326 45,444 2,000 5,720 5,720

Total M.I.S. Department Expenditures 125,744 144,208 136,597 87,590 84,930 84,930

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET PARKS AND RECREATION - ADMINISTRATION NARRATIVE

The Parks & Recreation Department’s Administration Division is responsible for the overall operation and supervision of the department, which includes the Administration, Parks, and Recreation and Beaches Divisions.

Program Review

The Parks & Recreation Department completed its 15th year of operation in FY11. Staff and the Parks and Recreation Board continue to make significant strides in meeting the open space and recreational needs of this growing community. Some of the 2011 topics that were discussed with the Board were: affiliate group agreement changes, skate park rules updates, Farmstead Master Plan updates and eventual name change, facility rules and fees changes. Also, the Board recently received their annual affiliate group presentation and had the opportunity to grant two Adopt-A- Park requests for Sunset Park and Ken Carpenter Park. The annual Parks Tour was cancelled due to the lack of future projects. The DCEO grant was awarded for Sunset Park. This allowed work to begin on a vaulted restroom in October and Big Belly solar trash compactor garbage cans were bid out in late October.

The Village is in its third year as NISRA members. Sixty-eight individuals participated in 279 NISRA programs offered throughout the year. This participation number was an increase of 8% from the 2009/2010. Approximately 15 NISRA programs were held at Village facilities, which are up from 10 in 2009/2010. The programs offered used the Buddy Baseball field for t-ball and the adjacent parking lot for teaching how to ride a bike. The Village Hall was used for teen scene and the young adult club.

The People for Parks Foundation, Lake in the Hills, Inc., sponsored prizes at the Easter Egg Hunt and donated funds for the Senior Spaghetti Dinner. Additionally, the Foundation sponsored and sold beverages at the Sounds Bites summer concert series. With the funds generated from the 2010 Summer Sunset Festival beer garden, the Village was able to purchase the Linda K. Fischer park sign, items for the Senior Serenity Wednesday program, a new PA system, and a cleaning blade for the pond hockey tournament. These purchases lessen the burden on the Department’s budget and also give the Foundation an opportunity to give back to the community.

Goals & Objectives

¾ Promote, market, and educate the community regarding Village Parks and Recreation programs through community presentations. ¾ Update the Parks Master Plan when changes arise. ¾ Update the Capital Improvement Program for the Parks Master Plan amenities list. ¾ Continue to promote the Adopt-A-Park Program ¾ Monitor grant availability and submit when appropriate. ¾ Develop a wish list for Foundation projects ¾ Promote the banner program through various businesses.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET PARKS AND RECREATION - ADMINISTRATION NARRATIVE

Performance Indicators

Estimated Projected 2009 2010 2011 2012 Grant funding opportunities 3 0 1 0 Banner Program business participants 0 3 4 5 Community Presentations on Programs 3 3 2 4 Adopt a Park Participants 1 2 3 4 DCEO Grant (Illinois State Fund) 1 1 0 0

Budget Highlights

77% Personal Services $226,170 21% Prof. Development $62,590 0% Contractual Services $880 2% Commodities $5,060

0% Capital Outlay $0

Total Budget $294,700

Personnel Summary

2009 2010 2011 2012 Full Time Employees Director of Parks & Recreation 1 1 1 1 Administrative Assistant 1 1 1 1 Part-time Employees Secretary 1 1 0 0 Office Assistant 0 0 1 1 Elected/Commissioned Officials Park Board Members 7 7 7 7

Capital Projects/Equipment

No capital items are planned for in FY12.

74 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

Parks and Recreation - Administration

Personal Services 405.41100 Salaries, Full-Time 135,679 142,189 142,318 141,570 147,380 147,380 405.41200 Salaries, Part-Time 18,085 18,967 14,099 16,180 17,390 17,390 405.41300 Salaries, Boards & Commissions 2,600 3,050 2,150 2,950 3,360 3,360 405.41400 Salaries, Over-Time 517 598 545 480 840 840 405.42100 Employer Portion FICA 12,295 12,609 12,354 12,670 13,380 13,380 405.42200 IMRF - Benefit 15,251 15,886 17,957 18,390 18,550 18,550 405.42500 Employee Health Insurance 10,282 13,995 17,475 17,980 19,400 19,400 405.42700 Other Employee Benefits 5,265 2,500 5,676 4,400 5,870 5,870

Total Personal Services 199,974 209,793 212,574 214,620 226,170 226,170

Professional Development 405.45100 Conferences, Schools, & Training 774 1,394 325 930 480 480 405.45200 Dues 56,689 60,316 61,758 61,680 61,730 61,730 405.45300 Publications and Subscriptions 306 66 99 150 100 100 405.45400 Travel Exp., Miles,Lodg,Meals 1,560 674 329 300 280 280

Total Professional Development 59,329 62,450 62,511 63,060 62,590 62,590

Contractual Services 405.51400 Maintenance, Machinery/Equip 151 0 0 180 200 200 405.53400 Telephone 590 573 510 450 230 230 405.54300 Printing and Copying 934 589 582 470 450 450

Total Contractual Services 1,675 1,161 1,092 1,100 880 880

Commodities 405.62100 Office Supplies 3,250 3,599 3,852 4,000 4,250 4,250 405.62200 Operating Supplies 423 795 195 250 450 450 405.62400 Uniforms & Protective Clothing 471 219 301 360 360 360

Total Commodities 4,144 4,613 4,348 4,610 5,060 5,060

Total Parks and Recreation - Administration 265,122 278,018 280,525 283,390 294,700 294,700

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET PARKS AND RECREATION - PARKS NARRATIVE

The Parks Division is responsible for the overall development and maintenance of all parks, open space, and facility sites. Its objective is to efficiently and economically provide quality recreational facilities and open space to the public. The Parks Division functions with the support of the Public Properties Division under the Public Works Department.

Program Review

Two contracted seasonal employees were hired for the mowing and maintenance of Sunset Park. Having these individuals dedicated to Sunset Park allows the full time staff to work on other projects throughout the Village. Three of the four summer hires returned this season. The summer hires provided labor for small jobs performed throughout the parks. These jobs included: removing the Normandy pier, tree damage pick up, trash removal, and assistance with other repairs as it relates to the parks and playgrounds.

The division continues to work with the LITH Youth Athletic Association, as well as other affiliate groups, to train volunteers on maintaining the baseball fields before, during, and after games. This training helps teach the users the correct way to maintain the ball fields throughout the season which helps to keep these fields in pristine condition.

Projects the division completed include: removing Normandy pier, filling cracks at Leroy Guy tennis courts, and painting the dug outs at Plote Field. In spring, a rain garden was installed at the Bark Park, turning approximately ½ acre of wet unusable turf into an area which now contains eye-appealing plants that help to filter out storm ground water.

The Public Properties division applied for and received a $20,000 grant for Emerald Ash Borer tree replacement within the community and some parks. This money was used to replace Ash trees that were infested with the pest. The crews provided approximately 600 hours of snow and ice control last winter. The ice rinks at Stoneybrook and Sunset Park were very successful this year with 10+ days of use. Lastly, the division was responsible for repairs, touchups, and refinishing the floors at the Hain House.

A wealth of staff time was spent repairing vandalism and removing graffiti items from various parks within the Village. Additionally, staff spent time preparing and maintaining the athletic fields, as well as providing set-up, take down, and labor support for several of our major events including: 5th Annual Rib Fest, 11th Annual Summer Sunset Festival, 12th Annual Run thru the Hills, 5th Annual Triathlon, and the Festival of Trees.

Clarke Mosquito continues to provide Village-wide spraying and monitoring of mosquitoes. Additionally, our staff undergoes training each year to be able to install the mosquito adulticide pouches in catch basins around the Village. This abatement program helps to limit the spread of the West Nile Virus.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET PARKS AND RECREATION - PARKS NARRATIVE

Goals & Objectives

Continue to keep all playground equipment audit ratings below 12%. Continue to update the CIP program for the completion of the amenities in the Parks Master Plan. Continuously review and monitor playground equipment through the inspection program. Continue to work with volunteer affiliate groups to maintain athletic fields and strive to have 100 volunteers trained.

Performance Indicators Estimated Projected 2009 2010 2011 2012 Playground Install / Renovations 0 2 2 0 Park Acreage & Open Space 800 800 800 800 New Park Sites 0 0 0 0 Labahn-Hain House Uses 255 245 125 150 Picnic Shelter Uses 27 35 85 90 Village Hall Room Rentals 869 850 660 675 Cost per acre for maintenance n/a n/a n/a $736 of park properties

Budget Highlights

The Parks Division will continue to hire temporary services to maintain the mowing, fertilization, and general maintenance of Sunset Park. Projects for the year include: completing the Plote Field light harness replacements that started three years ago, which will update the original light fixture wiring. The silo at Nockels Park will be painted; drinking fountains will be installed at Ken Carpenter and Ford School Parks. The fish stocking will be reduced based on the IDNR recommendation to staff. A small connector path will be installed at Sunset Park that will connect the Miller Road path with the east/west path near the circle drop off. Lastly, due to new regulations, a pesticide/herbicide permit will be required for staff to apply treatments to ponds and catch basins.

44% Personal Services $213,400 0% Prof. Development $0 43% Contractual Services $206,960 11% Commodities $53,130 3% Capital Outlay $12,810 Total Budget $486,300

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET PARKS AND RECREATION - PARKS NARRATIVE

Personnel Summary 2009 2010 2011 2012 Seasonal Employees Summer Help (Laborers) 4.00 4.00 4.00 4.00

Capital Projects/Equipment

Sunset Bike Path Connection $5,840 (2) Drinking Fountains $6,970 Total: $12,810

78 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

Parks and Recreation - Parks

Personal Services 410.41100 Salaries, Full-Time 33,927 00000 410.41150 Personal Services Reimbursements 153,871 181,754 229,746 198,600 198,700 198,700 410.41200 Salaries, Part-Time, Seasonal 9,392 12,834 13,683 13,190 13,470 13,470 410.41400 Salaries, Over-Time 125 84 12 180 180 180 410.42100 Employer Portion FICA 3,320 988 1,052 1,030 1,050 1,050 410.42200 IMRF - Benefit 3,287 00000 410.42500 Employee Health Insurance 6,208 00000 410.42700 Other Employee Benefits 456 00000

Total Personal Services 210,586 195,660 244,493 213,000 213,400 213,400

Professional Development 410.45100 Conferences, Schools, & Training 295 00000 410.45400 Travel Exp., Miles,Lodg,Meals 461 00000

Total Professional Development 756 00000

Contractual Services 410.51100 Maintenance, Grounds 108,576 103,876 108,923 108,120 110,880 110,880 410.51200 Maintenance, Buildings 2,084 2,710 7,842 6,850 3,200 3,200 410.51300 Maintenance, Infrastructure 0 0 0 0 2,910 2,910 410.51400 Maintenance, Machinery/Equip 10,528 9,625 7,124 1,530 6,950 6,950 410.52400 Medical Services 416 288 432 280 300 300 410.52600 Janitorial Services 0 0 5,702 5,710 7,520 7,520 410.52800 Other Professional Services 68,808 110,274 62,712 67,460 36,150 36,150 410.53100 Electrical Services 5,228 5,489 5,365 5,760 5,630 5,630 410.53200 Natural Gas Services 4,030 2,711 2,807 2,900 2,900 2,900 410.53300 Sewer Services 440 464 464 510 510 510 410.53400 Telephone 1,479 2,096 671 560 590 590 410.54100 Postage 24 00000 410.54200 Publishing & Advertising 65 88 31 130 0 0 410.54400 Rental Contracts 8,786 8,598 10,689 11,160 10,860 10,860 410.54450 Equipment Service Reimbursements 3,286 16,211 19,333 15,060 18,310 18,310 410.59900 Miscellaneous 0 0 0 0 250 250

Total Contractual Services 213,749 262,428 232,093 226,030 206,960 206,960

Commodities 410.61100 Maint. Supply & Parts, Grounds 6,396 22,929 21,077 13,220 15,300 15,300 410.61200 Maint. Spply & Parts, Buildings 2,974 5,121 5,734 4,900 7,170 7,170 410.61300 Maint. Supply & Parts, Infrastruct. 2,987 0 226 2,150 3,440 3,440 410.61400 Maint. Supply & Parts, Equip 6,101 5,644 3,617 6,920 4,100 4,100 410.62200 Operating Supplies 28,314 28,411 23,298 21,680 22,980 22,980 410.62400 Uniforms & Protective Clothing 40 0 55 140 140 140

Total Commodities 46,812 62,105 54,007 49,010 53,130 53,130

Capital Outlay 410.81200 Buildings 0 0 0 51,900 0 0 410.81250 Improvements, Other 106,397 661,655 11,911 0 5,840 5,840 410.81400 Equipment 2,102 3,346 20,435 36,460 6,970 6,970

Total Capital Outlay 108,499 665,001 32,346 88,360 12,810 12,810

Total Parks and Recreation - Parks 580,402 1,185,194 562,939 576,400 486,300 486,300

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET PARKS AND RECREATION - RECREATION AND BEACHES NARRATIVE

The Parks & Recreation Department - Recreation and Beaches division is responsible for all recreation programming, special events, day camp operations, Playschool Academy programs, and beach operations at Indian Trail and Butch Hagele Beaches. This division’s aim is to increase community participation through a vast array of recreational programs, trips, camps, special events, and beach activities while consistently delivering quality services.

Program Review

Recreation staff always strives to meet the needs of the community. Playschool Academy continues to be a very popular program. We currently have 70 participants enrolled. Staff has fielded many requests to offer more morning classes. To accommodate further expansion of the program, staff has budgeted to renovate the back half of the Old Fire Station on Oak Street, otherwise known as “the Annex.” Two playschool rooms will be added to the site which allows for the increase of the Playschool Academy programs. Playschool Academy also offers the Sunsational Summer Camp which is also very popular.

The Athletic programs offered through the Parks & Recreation Department have reached a wide range of residents, from preschool children through adults. Over the past few years, the Department has been able to maximize both indoor space at the local schools and Village owned outdoor space to offer the following: 3rd-6th grade basketball, 5th-6th grade girls volleyball, spring and fall adult softball leagues, spring and fall flag football leagues, fall and winter adult volleyball leagues, and a men’s basketball league. The in-house dance class had 194 dancers enjoying classes at the Village Hall. In 2011, a 4-on-4 adult hockey tournament was also introduced, which was a big success with 12 teams participating and approximately 40 teams on a waiting list. Staff is looking to gradually expand this tournament. There are over 800 participants in the leagues that are offered mainly consisting of Lake in the Hills residents.

At the beginning of summer, a new senior program opportunity was established – Senior Serenity Wednesdays. This new program invites both resident and local area seniors to drop by Village Hall, every Wednesday, for various recreational opportunities. Starting in September and heading into 2012, a monthly calendar was published offering Bingo, a movie, and a guest speaker once a month. Currently, donations have been secured to buy operating supplies which will expanding programming and appeal to an even wider group of seniors. The attendance from this program ranges from 7 to 15 participants weekly, depending on the program offered. In addition to the Senior Serenity Wednesday program, seniors also take advantage of the monthly trips, tax-aid from February-April, simple wills, and lunch & show program opportunities.

The Funtasticamp program continued to provide high quality care for the summer where we had 934 participants in the program. This is an increase from last year’s number of 738 participants. Camp sessions were also held over winter break where there were 151 participants and spring break which had 77 participants. The Village provided fun, safe, and structured child care for the youth in our community.

The Parks & Recreation Department hosted 349 tri-athletes who participated in the 5th Annual LITH Triathlon on June 12. Other running events throughout the year were also popular. The 12th Annual Run thru the Hills drew 607 runners/walkers, and the 10th Annual Sunset 5K drew in 366 racers. All of the races were once again a big success. Approximately 150 children collected

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET PARKS AND RECREATION - RECREATION AND BEACHES NARRATIVE

eggs on a rainy morning at the Easter Egg Hunt. We entertained more than 663 people this summer with our annual Park Parties and over 355 at our sound Bites Summer concert series.

The beach special events were again very popular this past summer. There were approximately 100 participants on hand for the Pirate Treasure Hunt. The Movie at the Beach, How to Train Your Dragon, drew 150 people. Magic Night at the Beach drew 225 people; 60 participants enjoyed Beach Blanket Bingo, and 400 people attended the Barefoot Hawaiians Beach Show. Programs are also held at the beach, including swim lessons with 59 participants and the Stroke and Stride evening open water swim program, which had a total of 747 participants.

Our Marketing Coordinator continues to work with staff to create ways of increasing exposure for our programs and facilities. Display boards were put up at 7 parks to help promote programs and facilities. Sales of advertising space in the Departments’ seasonal brochures were successful enough to cover the cost of each brochure printing. Colored banners were created to help promote annual special events. To help promote the free Summer Special Events, staff came up with a button program where participants registered and received a lanyard. At free special events throughout the summer, participants would receive a specialized button to put on their lanyard. Then, at the end of the summer, they could turn in their buttons to receive a discount on programs. There were 300 lanyards distributed and 510 buttons handed out.

Staff continues to learn trends in the field by attending professional conferences and seminars. The recreation staff attended the Illinois Parks & Recreation Association Annual State Conference. Staff also attended IPRA section meetings, Aquatic Round Table Meetings, First Aid and CPR classes, and various 4-C class offerings.

Goals & Objectives

¾ Renovate the Annex to accommodate two Playschool Academy program rooms. ¾ Continue staff education by attending professional conferences, seminars, and classes. ¾ Expand marketing opportunities to include Groupon, partnership banner program, and ads for brochure. ¾ Increase sponsorship of events to include: Pond Hockey, Races, Park Parties, and Sound Bites Summer concert series. ¾ Increase participants for the Serenity Senior Program by 25%. ¾ Develop private swim lessons for the beach.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET PARKS AND RECREATION - RECREATION AND BEACHES NARRATIVE

Performance Indicators Estimated Projected 2009 2010 2011 2012 Programs offered 1,056 1,161 1,088 1,100 Participants 9,341 9,618 9,464 9,800 Swim Lesson Participants 21 61 59 20 Adult Sports Leagues/Tournaments 6 7 7 8 Camp Registrations 940 738 934 1,000 Preschool Registrations 58 77 73 86

Budget Highlights

Funds are included in the FY12 budget to expand the Playschool Academy (salaries and staff) into the Annex building. There are also funds to replace the floating pier at Indian Trail Beach. Also budgeted is a new Adobe Illustrator program for the Marketing Coordinator, as the current program being used is almost ten years old. Additionally, a portion of the division’s budget has been allocated to expand on our current programming offerings.

50% Personal Services $385,040 1% Prof. Development $4,790 41% Contractual Services $317,380 6% Commodities $42,430 2% Capital Outlay $15,500 Total Budget $765,140

Personnel Summary 2009 2010 2011 2012 Full-Time Employees Superintendent of Recreation 1 1 1 1 Recreation Supervisor 2 2 2 2 Part-Time Employees Marketing Assistant 1 1 1 1 Seasonal Employees Program Instructors 6 9 9 11 Beach Front Staff 15 15 15 15 Day Camp Staff 25 25 18 22

Capital Projects/Equipment

Floating pier at Indian Trail Beach $15,500 Total: $15,500

82 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

Parks and Recreation - Recreation and Beaches

Personal Services 415.41100 Salaries, Full-Time 148,021 154,746 154,888 150,140 157,710 157,710 415.41200 Salaries, Part-Time 119,917 150,553 149,047 158,000 167,460 167,460 415.41400 Salaries, Over-Time 1,004 309 31 230 200 200 415.42100 Employer Portion FICA 20,869 23,382 23,091 24,180 25,510 25,510 415.42200 IMRF - Benefit 15,712 17,740 20,247 19,920 19,910 19,910 415.42500 Employee Health Insurance 3,617 4,398 5,230 5,680 6,180 6,180 415.42700 Other Employee Benefits 8,891 8,184 6,224 7,640 8,070 8,070

Total Personal Services 318,031 359,313 358,758 365,790 385,040 385,040

Professional Development 415.45100 Conferences, Schools, & Training 3,429 2,328 1,381 1,210 1,980 1,980 415.45200 Dues 1,535 1,117 1,202 1,110 850 850 415.45400 Travel Exp., Mileage,Meals 1,889 1,811 1,938 1,240 1,960 1,960

Total Professional Development 6,853 5,256 4,521 3,560 4,790 4,790

Contractual Services 415.51600 Maintenance, Vehicles 6,290 44 469 250 250 250 415.52400 Medical Services 3,610 3,337 3,345 2,970 2,730 2,730 415.52700 Lab Testing Services 800 800 800 800 900 900 415.52800 Other Professional Services 183,316 140,532 128,672 126,300 128,220 128,220 415.53400 Telephone 869 1,109 652 830 810 810 415.54100 Postage 9,302 7,373 6,907 7,030 7,700 7,700 415.54200 Publishing & Advertising 1,885 842 150 600 600 600 415.54300 Printing & Copying 23,902 19,437 18,563 17,510 17,550 17,550 415.54400 Rental Contracts 17,370 11,495 9,624 11,400 11,940 11,940 415.55100 Festival & Event Expenditures 159,731 162,719 153,157 146,630 146,630 146,630 415.59900 Miscellaneous 135 41 60 50 50 50

Total Contractual Services 407,210 347,729 322,398 314,370 317,380 317,380

Commodities 415.61400 Supplies/Parts-Equipment 0 190000 415.61550 Supplies/Parts-Software 0 0 0 0 630 630 415.61600 Maint. Supply & Parts, Vehicles 1,845 1,583 1,025 600 1,000 1,000 415.62200 Operating Supplies 44,477 42,275 37,209 33,500 34,680 34,680 415.62300 Fuel & Petroleum Supplies 2,256 1,766 2,221 2,250 3,200 3,200 415.62400 Uniforms & Protective Clothing 2,684 2,433 2,229 2,550 2,920 2,920

Total Commodities 51,262 48,075 42,683 38,900 42,430 42,430

Capital Outlay 415.81400 Equipment 2,297 0 0 1,160 15,500 15,500 415.81550 Computer Software 221 00000

Total Capital Outlay 2,518 0 0 1,160 15,500 15,500

Total Parks and Recreation - Rec. & Beaches 785,875 760,373 728,361 723,780 765,140 765,140

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET POLICE COMMISSION NARRATIVE

The Police Commission is responsible for the development of entry level and promotional eligibility lists for the Police Department. In addition, the Police Commission is responsible for conducting disciplinary hearings for sworn personnel where the potential disciplinary action is five days or more of suspension without pay or termination of employment.

Program Review

During FY 2011, the Commission did not conduct any testing.

Goals and Objectives

¾ To acquire additional training to expand the knowledge base of the Police Commissioners in fulfilling their duties associated with the position.

Performance Indicators Estimated Projected 2009 2010 2011______2012 Entry Level Test 1 1 0 0 Sgt. Promotional Test 1 0 0 0

Budget Highlights

58% Personal Services $1,060 42% Prof. Development $780 0% Contractual Services $0 0% Commodities $0 0% Capital Outlay $0 Total Budget $1,840

Personnel Summary Estimated Projected 2009 2010 2011______2012 Elected/Commissioned Officials Police Commissioners 3 3 3 3

Capital Projects/Equipment

No capital items are planned for in FY12.

84 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

Police- Police Commission

Personal Services 205.41300 Salaries, Board & Commission 800 550 900 300 600 600 205.41400 Salaries, Over-Time 483 250 417 260 340 340 205.42100 Employer Portion FICA 97 61 99 50 80 80 205.42200 Employer Portion IMRF 46 24 46 30 40 40

Total Personal Services 1,427 885 1,462 640 1,060 1,060

Professional Development 205.45100 Conferences, Schools, & Training 175 0 0 200 200 200 205.45200 Dues 375 375 375 380 380 380 205.45400 Travel Exp., Mileage, Lodg.Meals 182 0 0 100 200 200

Total Professional Development 732 375 375 680 780 780

Contractual Services 205.52400 Medical Services 813 1,505 0000 205.52800 Other Professional Services 7,795 (22) 5,382 0 0 0 205.54200 Publishing & Advertising 1,743 0 918000 205.54300 Printing & Copying 467 0 1,303 0 0 0

Total Contractual Services 10,818 1,484 7,602 0 0 0

Commodities 205.62200 Operating Supplies 152 00000

Total Commodities 152 00000

Total Police-Police Commission Expenditures 13,129 2,743 9,440 1,320 1,840 1,840

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET POLICE ADMINISTRATION AND OPERATIONS NARRATIVE

The Police Department is responsible for meeting the law enforcement needs of the community. In order to successfully meet this task, the Department is focused on 16 different categories that impact on the delivery of said services. The categories are: General patrol, directed patrol, crime prevention, communications, community services, community relations, community resource referrals, criminal investigations, records, accident investigations, training, crime scene services, evidence custodial services, employee relations, social services and fiscal management.

Program Review

The daily activities of the Department are intended to effectively address the sixteen (16) focus categories as previously identified. During the 2011 fiscal year, the Department faced the challenge of maintaining the level of law enforcement service to the community that it has been accustomed to while at the same time dealing with the economic realities of the times. During this fiscal year, the Department realized a reduction in personnel and as such restructured certain areas of operations, specifically reducing the number of personnel assigned on a full-time basis to Crime Prevention and Investigations. With this, the Department adopted a more aggressive approach in applying the Case Screening instrument in order to maximize resources assigned to Investigations. The Department also reduced the number of Crime Prevention activities in order to maintain focus on the core function of the Department.

The Department is expecting by year end to realize an approximate 15% reduction of reports and calls for service, specifically in the area of routine service calls such as burglar alarms, nuisance complaints, parking complaints etc. It is also anticipated that at year end, decreases will be realized in Domestic Batteries, Burglary to Motor Vehicles, Thefts, Criminal Damage to Property and Criminal Damage to Vehicle incidents.

Most notably for this fiscal year, the Department was able to meet the law enforcement needs of the community while at the same time suffering a catastrophic event involving the flooding of the entire first floor of the police station, causing major damage and forcing radio communications and other operations to be handled in an alternative fashion. This event provided an opportunity for the Department to successfully test several emergency plans at a local, county and state level.

Maintain a comparable level of law enforcement service to the community while operating with a lower personnel level due to fiscal constraints.

o Due to cuts in personnel, the Department was not able to maintain membership in the North Central Narcotics Task Force, which required full-time personnel assignment. The Department researched alternative methods to effectively address the on-going issue of drug abuse and entered into a partnership with the McHenry County Sheriffs Office to conduct joint narcotic investigations. o With a reduction in staffing levels, the Department re-allocated personnel from Investigations and Crime Prevention to ensure the Patrol function of the Department was maintained at an appropriate level.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET POLICE ADMINISTRATION AND OPERATIONS NARRATIVE

Enhancement of traffic enforcement initiatives through increased use of selective traffic enforcement assignments o The Department conducted six traffic safety campaigns comprised of 77 individual traffic details total 387 man-hours. These campaigns focused on the enforcement of impaired motorist, speeding violations and occupant restraint violations. The campaigns resulted in 371 traffic stops, 26 DUI arrest and 350 other citations being issued. o The Department designed and implemented seven neighborhood specific directed patrols to address traffic related complaints of residents.

Continue multi-year radio enhancement program to ensure compliance with narrow banding requirements set to go into place on January 1, 2013

o The Department moved forward with the replacement of our non narrowband compliant base station radios. The base stations allow the Communications Center to transmit and receive on additional channels. This ability ensures communications between the Public Safety Answering Points as well as allowing the Center to serve as a Control Point for the communities served. o Continued multi-year portable & mobile radio replacement program to ensure P25 standards with narrow band compliance are in place prior to deadline of January 1, 2013

Continue to aggressively seek alternative funding and/or equipment grants for program enhancements without impacting local funding constraints

o The Department was able to secure grant funding to supplement local efforts in traffic safety issues for 2011. o The Department entered into a multi-year contract to provide contracted police dispatch services to the City of Marengo and the Village of Union, resulting in increased revenues. o Acquired an IEMA grant to assist in purchasing narrow band radio equipment

Goals and Objectives

¾ Maintain current level of service to the community while addressing fiscal constraints to funding imposed by economic conditions ¾ Identify and implement traffic enforcement initiatives to enhance traffic safety within the community ¾ Analyze needs of the community to determine Community Relations and Crime Prevention programs that can be added, enhanced or eliminated to maximize allocated resources ¾ Complete multi-year radio enhancement program to ensure compliance with narrow banding requirements set to go into place on January 1, 2013 ¾ Replace obsolete in-squad video systems to enhance prosecution of serious traffic offenders in court and reduce potential liability to the Department. ¾ Continue to aggressively seek alternative funding and/or equipment grants for program enhancements without impacting local funding constraints

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET POLICE ADMINISTRATION AND OPERATIONS NARRATIVE

Performance Indicators Estimated Projected 2009 2010 2011 2012 Traffic Arrests 3,747 3,852 3,349 3,400 Traffic Accidents 606 674 611 631 DUI’s 99 125 114 125 Investigation Case Workload 230 279 140 149 Investigations Cases Closed 240 200 177 193 Ordinance Citations 2,401 2,083 1,871 2,000 Reports Processed 14,267 15,815 13,807 14,821 Training Hours (External) 4,646 3,973 2,720 3,120 Social Services Case Contacts 777 836 853 870 Total Number of CPA Grads 387 417 448 478 Crime Prevention Meetings 402 387 355 355 & Presentations 911 Calls Processed N/A 12,623 12,795 12,859

Budget Highlights

The Department’s budget has been developed with a focus on meeting the current level of service to the community while maximizing financial resources available. The emphasis in this budget is continued enhancement of operations utilizing personnel already in place and the acquisition of additional/replacement equipment.

91% Personal Services $6,735,270 1% Prof. Development $43,770 2% Contractual Services $147,610 4% Commodities $269,050 3% Capital Outlay $197,580 Total Budget $7,393,280

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET POLICE ADMINISTRATION AND OPERATIONS NARRATIVE

Personnel Summary 2009 2010 2011 2012

Full - Time Sworn Chief of Support Services 1 1 1 1 Chief of Patrol Services 1 1 1 1 Sergeants 8 8 7 7 Patrol Officers 32 32 29 29 Full - Time Civilian Director of Police and 1 1 1 1 Public Safety Admin. Assistant 1 1 1 1 Comm./IT Supervisor 1 1 1 1 Communications 8 8 9 9 Records Supervisor/Analyst 1 1 1 1 Records Clerk 3 3 3 3 Social Service Coord. 1 1 1 1 C.S.O. 2 1 1 1 Part - Time Employees Communications 0 1 1 1 Seasonal Employees Crossing Guards 3 3 3 3

Capital Projects/Equipment

Update Main & Local Receivers $11,150 In-Squad Video System (12) $37,200 Cardiac Science AED (3) $3,300 Kenwood Portable Radios (6) $9,060 Kenwood Mobile Radios (4) $10,400 GE-Star Unit ID Translator $2,580 Records Copier $7,500 Dell E6510 Laptops (4) $5,400 EZ ID Printer $5,600 Ford Crown Victoria Police Interceptors (4) $101,280 New Squad Set-up (4) $2,000 Patriot Prisoner Rear Seats (4) $2,110 Total: $197,580

89 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

Police-Administration & Operations

Personal Services 210.41100 Salaries, Full-Time 4,063,210 4,150,132 4,191,381 4,104,390 4,380,880 4,380,880 210.41200 Salaries, Part-Time 60 100 5,432 20,180 20,760 20,760 210.41250 Salaries, Crossing Guards 10,575 10,775 8,925 11,160 11,160 11,160 210.41400 Salaries, Over-Time 80,294 90,639 93,481 91,300 96,000 96,000 210.42100 Employer Portion FICA 312,281 306,499 320,828 327,170 349,740 349,740 210.42200 IMRF - Benefit 91,075 92,877 108,058 118,510 118,900 118,900 210.42300 Employee Contrib. / Pension 673,798 750,356 911,955 960,810 932,540 932,540 210.42500 Employee Health Insurance 641,195 634,367 629,655 659,190 736,920 736,920 210.42700 Other Employee Benefits 67,508 80,173 73,798 73,620 88,370 88,370

Total Personal Services 5,939,997 6,115,918 6,343,513 6,366,330 6,735,270 6,735,270

Professional Development 210.45100 Conferences, Schools, & Training 32,786 29,756 21,221 19,500 19,830 19,830 210.45200 Dues 2,707 3,222 2,804 3,000 4,030 4,030 210.45300 Publications & Subscriptions 3,315 3,248 2,332 4,920 5,270 5,270 210.45400 Travel Exp., Miles,Lodg,Meals 15,841 9,293 8,188 10,000 10,860 10,860 210.45500 Community Affairs, Meals-Awards 1,766 1,425 848 1,680 3,780 3,780

Total Professional Development 56,414 46,943 35,393 39,100 43,770 43,770

Contractual Services 210.51400 Maintenance, Machinery/Equip 24,164 6,899 7,103 20,290 12,750 12,750 210.51450 Maintenance, ESDA Equipment 3,184 3,263 3,263 3,270 3,300 3,300 210.51500 Maint., Computers 9,891 9,674 8,025 8,390 5,090 5,090 210.51600 Maintenance, Vehicles 11,511 17,588 24,319 15,100 14,950 14,950 210.52400 Medical Services 2,240 395 618 1,100 1,580 1,580 210.52800 Other Professional Services 2,567 1,002 1,813 2,000 2,110 2,110 210.53400 Telephone 34,810 35,008 33,834 38,920 44,000 44,000 210.54100 Postage 10,933 11,276 4,840 5,000 3,840 3,840 210.54200 Publishing & Advertising 909 113 360 70 70 70 210.54300 Printing & Copying 8,934 4,317 6,620 5,610 3,580 3,580 210.54400 Rental Contracts 63,639 84,588 49,509 42,000 54,940 54,940 210.59900 Miscellaneous 1,752 812 792 1,120 1,400 1,400

Total Contractual Services 174,534 174,934 141,095 142,870 147,610 147,610

Commodities 210.61400 Maint. Supply & Parts, Equipmt 2,755 854 0 2,400 2,880 2,880 210.61500 Maint. Supply & Parts, Computers 601 1,219 1,027 3,720 1,790 1,790 210.61550 Supplies/Parts-Software 0 0 1,641 70 440 440 210.61600 Maint. Supply & Parts, Vehicles 22,784 27,603 37,930 35,040 31,660 31,660 210.62100 Office Supplies 7,731 9,021 9,904 8,400 8,400 8,400 210.62200 Operating Supplies 54,966 49,861 40,966 41,500 41,500 41,500 210.62300 Fuel & Petroleum Supplies 128,562 86,453 110,778 147,020 157,240 157,240 210.62400 Uniforms & Protective Clothing 26,709 26,837 26,666 28,250 25,140 25,140

Total Commodities 244,109 201,848 228,912 266,400 269,050 269,050

Capital Outlay 210.81400 Equipment 53,657 19,605 99,166 37,140 81,190 81,190 210.81500 Computer Hardware 2,545 16,165 5,527 4,000 11,000 11,000 210.81550 Computer Software 0 3810000 210.81600 Vehicles 127,151 0 0 92,000 105,390 105,390

Total Capital Outlay 183,352 36,152 104,693 133,140 197,580 197,580

Total Police- Admin. & Operations Expenditures 6,598,405 6,575,795 6,853,605 6,947,840 7,393,280 7,393,280

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET PUBLIC WORKS DEPARTMENT ADMINISTRATION NARRATIVE

Public Works Administration is responsible for the overall operation and supervision of the Department that includes the Public Properties, Streets, Water, and Airport Divisions. This supervision includes management of programs related to right-of-way operations, roads, signs, stormwater systems, public properties, lakes & creeks, fleet maintenance, trash & recyclables collection, potable water production & distribution, snow & ice control, and airport operations.

Program Review

The Department continues to work on addressing resident concerns as they arise. Customer survey letters are sent to residents. Feedback received from these surveys allows us to measure performance and address resident concerns. Prompt attention and response to resident needs continue to be a priority.

The Department Safety Committee continues to investigate injuries and accidents in the Department. This year was a particularly bad year with 72 lost work days due to injuries. One injury, which resulted in a broken ankle, accounts for 52 of 72 lost work days. Proactive measures to prevent accidents are accomplished through regular self-inspections of Village facilities and discussions with employees. The Safety Committee is categorizing injury types and will develop strategies to reduce future injuries. The goal is to have less than 12 lost work days per year.

Goals and Objectives

¾ Continue employee safety training. ¾ Improve project oversight to maintain and improve quality and value to the residents of the Village. ¾ Continue public education efforts

Performance Indicators

Estimated Projected 2009 2010 2011 2012

Resident satisfaction Surveys received 80% 88% 90% 91% rated “Very Good” or “Excellent” Lost work days due to on the job injury 131 10 72 12

Budget Highlights

There are no significant changes in the budget planned for FY 2012. A control station for a wireless remote to the existing radio repeater will significantly enhance communications capabilities during emergencies.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET PUBLIC WORKS DEPARTMENT ADMINISTRATION NARRATIVE

85% Personal Services $255,070 2% Prof. Development $6,430 10% Contractual Services $30,770 2% Commodities $5,160 0% Capital Outlay $1,100 Total Budget $298,530

Personnel Summary

2009 2010 2011 2012 Full Time Employees Public Works Director 0.5 0.5 0.5 0.5 Deputy Director 0.25 0.25 0.25 0.25 Contract Inspector 0.5 0.5 0.5 0.5 Administrative Asst/PW 0.5 0.5 0.5 0.5 Secretary PW/Airport 0.25 0.25 0.25 0.25 Secretary PW 0.5 0.5 0.5 0.5

Capital Projects/Equipment

Control Station for Wireless Remote to Repeater $1,100 Total: $1,100

92 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

Public Works - Administration

Personal Services 305.41100 Salaries, Full-Time 173,206 179,610 172,826 170,590 181,110 181,110 305.41150 Personal Services Reimbursements 0 0 0 (1,600) 0 0 305.42100 Employer Portion FICA 12,569 13,240 12,776 12,630 13,570 13,570 305.42200 IMRF - Benefit 16,893 17,825 19,710 19,680 20,160 20,160 305.42500 Employee Health Insurance 26,581 26,834 26,647 30,130 34,920 34,920 305.42700 Other Employee Benefits 3,540 5,094 5,439 3,370 5,310 5,310

Total Personal Services 232,788 242,603 237,399 234,800 255,070 255,070

Professional Development 305.45100 Conferences, Schools, & Training 1,309 344 1,670 2,000 2,380 2,380 305.45200 Dues 333 352 607 590 840 840 305.45300 Publications & Subscriptions 665 131 210 230 230 230 305.45400 Travel Exp., Miles,Lodg,Meals 1,054 759 1,394 1,330 1,600 1,600 305.45500 Community Affairs 1,192 1,347 1,630 1,530 1,380 1,380

Total Professional Development 4,552 2,934 5,510 5,680 6,430 6,430

Contractual Services 305.51400 Maintenance, Machinery/Equip 1,166 635 644 780 780 780 305.51500 Maint., Computers 4,950 4,950 4,950 5,270 5,590 5,590 305.51600 Maintenance, Vehicles 141 0 884 100 100 100 305.52400 Medical Services 10 45 41 20 20 20 305.52800 Other Professional Services 0 0 0 130 0 0 305.53400 Telephone 16,241 17,740 18,136 20,720 23,640 23,640 305.54100 Postage 1,194 728 647 320 380 380 305.54200 Publishing & Advertising 0 75 0 240 0 0 305.54300 Printing & Copying 717 312 47 140 260 260

Total Contractual Services 24,419 24,485 25,348 27,720 30,770 30,770

Commodities 305.61600 Maint. Supply & Parts, Vehicles 611 103 182 250 250 250 305.62100 Office Supplies 2,202 1,708 2,149 1,540 1,600 1,600 305.62200 Operating Supplies 2,624 1,739 1,693 1,300 1,250 1,250 305.62300 Fuel & Petroleum Supplies 1,745 1,383 1,231 1,180 1,320 1,320 305.62400 Uniforms & Protective Clothing 737 588 378 710 740 740

Total Commodities 7,919 5,521 5,634 4,980 5,160 5,160

Capital Outlay 305.81400 Equipment 0 0 0 0 1,100 1,100

Total Capital Outlay 0 0 0 0 1,100 1,100

Total Public Works-Admin. Expenditures 269,678 275,542 273,891 273,180 298,530 298,530

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET PUBLIC WORKS DEPARTMENT STREETS NARRATIVE

The Public Works Department, Streets and Drainage Division is responsible for the management and maintenance of Village’s street and drainage infrastructures including streets, sidewalks, signage, flood control systems including creeks, detention and storm sewers, rights-of-way, and airport pavements. Additional maintenance activities include snow & ice control operations and Village owned vehicles and equipment management.

Program Review

The Street Division made numerous improvements in the sidewalk, storm sewer, bike path, and sign maintenance inspection programs. Bike paths within the Village this year received cold pour crack sealant to further extend the life of the paths. Storm sewers within the Village will receive cleaning by jetting the pipes prior to them being televised to ensure they are in good condition and that no deficiencies in the pipes have occurred. The sidewalk replacement program continued with replacement of 450 high priority squares. A new technique of grinding the sidewalks squares to eliminate trip hazards was used. The areas where this application was used will be checked in the spring of next year to monitor how effective the technique was.

The resurfacing of the Village Hall parking lot was completed under budget which resulted in a significant cost savings for the Village. Changing from calcium chloride liquid to a new product Super Mix to pre-wet road salt this year reduced the salt usage for the seven trucks that have the pre-wet spray systems. Street identification signs on the collector streets and speed limit signs within the Village were upgraded to meet new MUTCD code standards. The Village increased their CRS rating from a class seven to a class six. This increase gives Village residents that live in the floodplain a twenty percent discount instead of the fifteen percent they were receiving.

Fleet maintenance activities have continued to advance with steadfast commitment from the mechanics. Since implementing the Preventative Maintenance Guide in 2009 the number of vehicle breakdown has constantly decreased each year. The continued addition of the part-time Mechanics Apprentice has vastly increased the production and preventative maintenance to all vehicles and equipment. With this continual effort in preventative maintenance, the amount of outside contractual work to Village vehicles and equipment continues to be minimized.

Goals and Objectives

¾ Continue to improve proactive approach through Village-wide monthly infrastructure inspections on storm sewers, sidewalks, and bike paths. ¾ Continue to provide excellent service levels and exceed the expectations of Village residents. ¾ Improve the pavement maintenance program to extend the life of existing pavements. ¾ Continue to increase sign shop production thru requests and replacement programs. ¾ Continue to bring Village signs up to current standards. ¾ Continue to improve the detention basin maintenance program. ¾ Continue to improve the Village’s Community Rating System. ¾ Continue to improve on reducing the number of vehicle breakdowns. ¾ Continue to improve the sidewalk replacement program.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET PUBLIC WORKS DEPARTMENT STREETS NARRATIVE

Performance Indicators

Estimated Projected 2009 2010 2011 2012 Maintenance Performed on: Streets (in Miles) 85.5 85.9 85.9 87.3 Cul-de-sacs / Courts 161 161 161 165 Vehicles / Major Equipment 107 105 106 107 Vehicle Breakdowns 93 67 43 40

100% 100% 100% 100% Percentage of High Priority (220) (630) (450) (400) Sidewalks Squares Repaired

Percentage of hours spent on 4% 8% 11% 14% Pavement Maintenance and Repairs

Percentage of hours spent on 15% 18% 19% 20% Drainage Maintenance and Repairs

Budget Highlights

The continued progress of native area maintenance activities will improve the aesthetics and appearance of these areas within the community. The mapping and identifying of manholes, outfall, inlets, and restrictors for the detention maintenance program will improve the infrastructure system.

Purchase of an ink jet printer for the sign shop will reduce material and labor costs for manufacturing signs. The ink-jetted signs require no weeding of excess material thus reducing the production time. The engine scanner will allow the mechanics to further diagnosis vehicle issues and clear failure codes that arise on Village vehicles. These types of repairs are now sent to the dealership for repairs.

Drainage improvements will be made at 262 Indian Trail. The improvements will include re- directing storm water that now flows along the side of a resident’s private property through a failed drain line and direct it along a Village owned parcel in a new drain line. The Village will be implementing a new program to assist homeowners with the repair or replacement of public sidewalk. The Residential Sidewalk Repair Program allows residents to hire their own contractor to repair public sidewalks fronting their property that do not meet the high priority criteria for replacement and receive a rebate for repair costs.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET PUBLIC WORKS DEPARTMENT STREETS NARRATIVE

67% Personal Services $892,930 0% Prof. Development $5,660 1% Contractual Services $11,580 21% Commodities $286,360 11% Capital Outlay $140,800 Total Budget $1,337,330

Personnel Summary

2009 2010 2011 2012 Full Time Employees Street Superintendent 1 1 1 1 Mechanic 2 2 2 2 Crew Leader 1 1 1 1 General Utility Worker II 1 1 1 1 General Utility Worker I 5 5 5 5 Part-Time Employees Mechanic’s Assistant 0 1 1 1 Seasonal Employees Mechanic’s Assistant 1 0 0 0 Streets Laborer 1 1 1 1

Capital Projects/Equipment

Ink Jet Printer for Sign Shop $10,000 Replacement Wash Bay Pressure Washer $7,800 Scanner for Mechanics $6,000 Replace Truck 11 - 1 Ton Dump Truck w/ Plow) $75,000 Drainage Improvements on Indian Trail $42,000 Total: $140,800

96 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

Public Works - Streets

Personal Services 310.41100 Salaries, Full-Time 557,160 584,835 586,370 585,390 607,710 607,710 310.41150 Personal Services Reimbursements (55,227) (59,008) (87,205) (88,710) (70,280) (70,280) 310.41200 Salaries, Part-Time 28,723 25,109 23,504 20,720 24,270 24,270 310.41400 Salaries, Over-Time 64,727 38,689 35,743 44,820 44,630 44,630 310.42100 Employer Portion FICA 49,461 49,005 48,178 50,350 52,630 52,630 310.42200 IMRF - Benefit 60,304 61,140 69,399 72,090 71,780 71,780 310.42500 Employee Health Insurance 113,779 123,878 133,518 140,770 150,650 150,650 310.42700 Other Employee Benefits 9,027 8,748 5,558 7,390 11,540 11,540

Total Personal Services 827,954 832,395 815,064 832,820 892,930 892,930

Professional Development 310.45100 Conferences, Schools, & Training 1,585 1,230 2,133 1,880 2,440 2,440 310.45200 Dues 520 434 443 460 460 460 310.45300 Publications & Subscriptions 153 251 2,051 1,780 1,780 1,780 310.45400 Travel Exp., Miles,Lodg,Meals 1,931 209 724 970 980 980

Total Professional Development 4,188 2,123 5,352 5,090 5,660 5,660

Contractual Services 310.51100 Maintenance, Grounds 585 0 0 2,000 2,000 2,000 310.51300 Maintenance, Infrastructure 8,120 19,550 14,300 0 2,000 2,000 310.51400 Maintenance, Machinery/Equip 7,200 18,515 3,285 15,940 6,900 6,900 310.51600 Maintenance, Vehicles 16,232 24,346 13,766 14,880 14,880 14,880 310.52400 Medical Services 1,202 985 672 510 380 380 310.52800 Other Professional Services 1,064 744 1,251 1,500 1,500 1,500 310.53400 Telephone 4,125 4,113 3,554 3,350 3,110 3,110 310.54100 Postage 105 16 90000 310.54200 Publishing & Advertising 190 315 628 340 410 410 310.54300 Printing & Copying 32 0 34 150 50 50 310.54400 Rental Contracts 4,439 6,523 4,983 6,850 6,490 6,490 310.54450 Equipment Service Reimbursements (8,938) (13,322) (11,909) (27,670) (27,270) (27,270) 310.59900 Miscellaneous 1,075 1,000 1,050 1,140 1,130 1,130

Total Contractual Services 35,431 62,784 31,706 18,990 11,580 11,580

Commodities 310.61100 Maint. Spply & Parts, Grounds 1,952 1,652 2,271 2,000 2,000 2,000 310.61300 Maint. Supply & Parts, Infrastruct. 16,100 31,566 49,993 29,000 34,000 34,000 310.61400 Maint. Supply & Parts, Equip 5,263 8,910 10,449 11,000 8,500 8,500 310.61600 Maint. Supply & Parts, Vehicles 23,367 12,758 22,880 17,000 17,950 17,950 310.62200 Operating Supplies 25,720 79,981 38,716 38,370 29,470 29,470 310.62210 Ice & Snow Control Supplies 233,477 274,345 111,721 0 138,360 138,360 310.62300 Fuel & Petroleum Supplies 49,101 28,783 34,192 47,110 51,880 51,880 310.62400 Uniforms & Protective Clothing 3,666 2,754 3,950 4,200 4,200 4,200

Total Commodities 358,645 440,749 274,172 148,680 286,360 286,360

Capital Outlay 310.81250 Improvements, Other 235,977 23,776 25,398 72,900 42,000 42,000 310.81400 Equipment 7,880 394 8,983 49,000 23,800 23,800 310.81550 Computer Software 1,195 995 1,140 0 0 0 310.81600 Vehicles 76,327 0 0 0 75,000 75,000

Total Capital Outlay 321,379 25,165 35,521 121,900 140,800 140,800

Total Public Works-Streets Expenditures 1,547,597 1,363,216 1,161,815 1,127,480 1,337,330 1,337,330

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET PUBLIC WORKS PUBLIC PROPERTIES NARRATIVE

The Public Properties Division of Public Works is responsible for the maintenance of Village- owned buildings and various public properties which include Village Hall, Police Department, and Public Works facilities. The Public Works facilities encompass the well houses, airport, PW Pyott Annex, rental properties, mechanical services, infrastructures, parks, and the urban forest.

Program Review

The Public Properties Division is continuing its fight against the Emerald Ash Borer (EAB) pest. This pest has been detected in many of the Village’s subdivisions to date. Staff applied for and received a $20,000 grant from the Metropolitan Mayors Caucus/ Morton Arboretum. This grant was instrumental in these tough economic times, allowing the Village to remove and replace infested trees with more desirable and pest resistant varieties. The Village will continue to plant alternative tree species so the impact of Ash trees or any monoculture losses will be minimized. These infested trees were removed and disposed of according to the Illinois Department of Agriculture’s guidelines for Ash debris disposal.

The other tree damaging pest which devastated many village trees in 2009 and 2010 was the Gypsy Moth caterpillar. In both years, the Village signed up for aerial spraying by a contractor who made four separate aerial spraying applications over selected areas to spray the biological insecticide Bacillus Thuringiensis var. kurstaki (Btk). The Village’s efforts at curtailing this pest to date have been promising. We believe that our success was through a combination of many techniques to combat the Gypsy Moth which included trapping, collection, and aerial spraying. The Village’s efforts at curtailing the moth have been so successful that the Village did not conduct aerial spraying over the Village in 2011. No other activities other than monitoring are planned for 2012 and the focus will be to plan future actions based on the results of the monitoring and other signs of potential infestations.

In 2011 the Forestry Section completed trimming trees in, Big Sky, Hidden Valley, Bellchase, and a section of Meadowbrook and will complete trimming in Provence and Sumner Glen subdivisions during the fall.

In 2010 the Parks Section created a playground replacement program. All of the Village’s twenty playgrounds were systematically evaluated and charted for age and life expectancy of equipment. In 2011 the playground replacement program was further refined to not only predict the replacement dates of the playgrounds but to make determinations on how to further delay the useful life of the equipment past it’s estimated life expectancies. The plan and focus will be to conduct maintenance action plans where component replacements and cosmetic painting will allow us to extend them past the manufacturers expected life spans. The immediate focus was to look at the parks that were slated to be replaced within the next five years and do a study based on variables like the parks age, condition and aesthetics. The goal will be to repair or replace parts that fiscally make sense if the costs don’t outweigh the benefits.

FY 2011 the Facilities Section replaced the roof on Well 10 which is about the size of a single family home. It was a great training opportunity for our crew since none of them had prior experience replacing shingles. They were also able to replace an outdated, less efficient heating

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET PUBLIC WORKS PUBLIC PROPERTIES NARRATIVE

system in the facility. Staff also applied for and received an energy grant to replace an older, less efficient furnace / air-conditioning unit at the Police Department.

Goals and Objectives

¾ Conduct tree trimming in the Springlake Farm South, Heron Bay, and Viewpoint neighborhoods. ¾ Continue employee educational development in arboriculture, tree rigging and roping, chainsaw safety, roof inspections, HVAC inspections, predictive maintenance. We will continue to seek out educational opportunities to reduce our dependence on outside contractor repair services. ¾ Undertake in-house mowing and landscaping services on the east side of the Village and the Airport. ¾ Continue to provide total resident satisfaction by concentrating on maintaining the Villages many facilities, parks, playground amenities and arboreal interests. ¾ Continue upgrading the Village Halls building HVAC automation system. ¾ Install a temperature sensitive exhaust system for the Police Departments evidence room. This room must be kept dry and the space conditioned to preserve the evidence stored there.

Performance Indicators

Estimated Projected 2009 2010 2011 2012 Facilities scheduled maintenance tasks completed n/a 92% 95% 98% Forestry scheduled maintenance tasks completed n/a 93% 95% 97% Parks scheduled maintenance tasks completed n/a 98% 98% 99%

Budget Highlights

Public Properties will be hiring two additional seasonal staff to conduct the mowing and landscaping services for SSA#3 and the Airport. Staff is currently maintaining Sunset and Bark Parks with two contracted, temporary employees. The groups will be combined to perform the in-house grounds maintenance tasks. The additional mower and brush hog unit are required to accomplish these landscaping services. The remaining services will be combined into one contract and rebid.

The maintenance of the Larsen property located at 1111 Pyott Road was recently turned over to the Village. Two capital projects are planned that will upgrade and improve two structures on the property. The large barn will have the north facing roof replaced. The current roof is metal and has rotted through in places. A foundation drainage system is planned to divert rainwater for the rental house. A sump pump will eliminate ground water and seepage from getting into the basement.

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET PUBLIC WORKS PUBLIC PROPERTIES NARRATIVE

Forestry Section will also continue to combat the Emerald Ash Borer through Ash tree inspections and subsequent removal and replacement. Also, they will monitor the Gypsy Moth through trapping and monitoring efforts to determine location and severity of the problem. Aerial spraying is not planned for 2012 due the pest’s diminished numbers. In 2012, Forestry staff will receive further training as it relates to tree rigging techniques giving them more skills to remove some trees in-house.

The Facilities Section will focus its attention on conducting facility maintenance using the most up to date preventative maintenance principles available. Training will improve our crew’s ability to conduct roof inspections, HVAC repairs and the newest principles as it relates to scheduled maintenance.

The replacement of two more furnace / air-conditioning units at the Police Department is planned for 2012. Public Works will also reuse a generator that was surplus after a recent construction project at Well House 9/17. Installing it at the Public Works facility will provide much needed emergency backup power in the event of a power outage. The unit will provide electricity to the mechanics bays and lifts. This will allow our mechanics to keep our fleet moving. 56% Personal Services $940,850 0% Prof. Development $8,120 22% Contractual Services $371,150 10% Commodities $170,540 12% Capital Outlay $195,110 Total Budget $1,685,770

Personnel Summary

2009 2010 2011 2012 Full Time Employees Public Property Supt 1 1 1 1 Crew Leader 3 3 3 3 General Utility Worker II 3 3 3 3 General Utility Worker I 6 6 6 6 Seasonal Employees 0 0 0 4

100

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET PUBLIC WORKS PUBLIC PROPERTIES NARRATIVE

Capital Projects / Equipment

Furnace Replacement at the PD $22,500 Exhaust system for PD Evidence Room $2,560 Install Perimeter Drainage System at Larsen House $7,100 Replace North Slope Roof on Larsen Barn $21,360 Install Generator at Public Works $3,500 Door and Frame Replacement at Public Works $2,400 Upgrade 7 VVT Actuators & Thermostats $8,920 Preschool Annex Renovation $29,220 72 Inch Zero Turn Mower $10,500 Facilities Snowblower $2,790 Skidsteer Snowblower Attachment $5,050 Brush Hog Attachment $4,210 1 Yard Dump Truck w/ Plow $75,000 Total: $195,110

101 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

Public Works - Public Properties

Personal Services 315.41100 Salaries, Full-Time 685,382 760,595 749,831 769,500 796,580 796,580 315.41150 Personal Services Reimbursements (208,304) (279,397) (318,681) (293,620) (332,650) (332,650) 312.41200 Salaries, Part-Time 0 0 0 0 49,600 49,600 315.41400 Salaries, Over-Time 86,513 57,641 46,587 52,000 51,660 51,660 315.42100 Employer Portion FICA 58,317 61,864 59,463 63,740 70,090 70,090 315.42200 IMRF - Benefit 74,785 80,621 89,322 94,230 93,750 93,750 315.42500 Employee Health Insurance 138,721 153,374 164,553 178,900 193,300 193,300 315.42700 Other Employee Benefits 10,664 15,656 11,410 11,760 18,520 18,520

Total Personal Services 846,078 850,355 802,485 876,510 940,850 940,850

Professional Development 315.45100 Conferences, Schools, & Training 4,476 3,722 3,284 3,150 5,760 5,760 315.45200 Dues 710 733 466 590 600 600 315.45300 Publications & Subscriptions 446 361 326 40 290 290 315.45400 Travel Exp., Miles,Lodg,Meals 939 963 1,066 1,450 1,470 1,470

Total Professional Development 6,571 5,779 5,143 5,230 8,120 8,120

Contractual Services 315.51100 Maintenance, Grounds 192,797 135,221 133,512 104,700 115,680 115,680 315.51200 Maintenance, Buildings 49,231 29,951 26,253 36,230 21,690 21,690 315.51400 Maintenance, Machinery/Equip 20,665 20,464 13,114 15,580 17,170 17,170 315.51600 Maintenance, Vehicles 13,823 12,315 14,448 11,000 16,000 16,000 315.52400 Medical Services 1,250 1,017 832 420 420 420 315.52600 Janitorial Services 51,021 68,651 65,037 65,110 64,090 64,090 315.52800 Other Professional Services 3,372 2,829 2,737 2,140 3,890 3,890 315.53100 Electric Services 172,629 203,515 205,006 205,000 207,840 207,840 315.53200 Natural Gas Services 31,393 19,222 19,328 17,500 18,500 18,500 315.53300 Sewer Services 843 889 889 960 960 960 315.53400 Telephone 5,222 5,300 4,654 4,690 4,770 4,770 315.54200 Publishing & Advertising 150 21 31 0 100 100 315.54300 Printing & Copying 0 47 0 0 50 50 315.54400 Rental Contracts 2,986 1,786 2,876 5,560 3,170 3,170 315.54450 Equipment Service Reimbursements (31,360) (62,660) (69,299) (78,660) (103,310) (103,310) 315.59900 Miscellaneous 156 0 0 440 130 130

Total Contractual Services 514,179 438,569 419,418 390,670 371,150 371,150

Commodities 315.61100 Maint. Spply & Parts, Grounds 19,867 17,339 16,699 19,850 20,950 20,950 315.61200 Maint. Spply & Parts, Buildings 14,475 15,051 17,103 19,000 17,000 17,000 315.61400 Maint. Supply & Parts, Equip 2,947 4,439 6,160 7,650 9,650 9,650 315.61600 Maint. Spply & Parts, Vehicles 22,391 26,058 16,930 27,000 27,000 27,000 315.62200 Operating Supplies 18,256 16,743 19,259 21,950 21,950 21,950 315.62210 Ice & Snow Control Supplies 760 1,180 742 1,200 1,200 1,200 315.62300 Fuel & Petroleum 50,222 32,522 38,435 51,950 67,230 67,230 315.62400 Uniform & Protective Clothing 4,003 3,705 3,811 3,700 5,560 5,560

Total Commodities 132,921 117,038 119,138 152,300 170,540 170,540

Capital Outlay 315.81100 Land 283 00000 315.81200 Buildings 8,747 00000 315.81250 Improvements, Other 0 0 0 66,500 97,560 97,560 315.81400 Equipment 1,495 9,789 0 9,150 22,550 22,550 315.81600 Vehicles 101,043 0 0 0 75,000 75,000

Total Capital Outlay 111,568 9,789 0 75,650 195,110 195,110

Total Public Works - Public Prop. Expenditures 1,611,317 1,421,530 1,346,183 1,500,360 1,685,770 1,685,770

102

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET PROFESSIONAL CONTRACTUAL ENGINEERING SERVICES NARRATIVE

The Village contracts engineering services with private firms. The engineering firms contracted are responsible for the design, review, inspection and general supervision of the installation of the public improvements in residential, commercial and industrial developments and of various capital improvement projects undertaken by the Village.

0% Personal Services $0 0% Prof. Development $0 100% Contractual Services $35,180 0% Commodities $0 0% Capital Outlay $0 Total Budget $35,180

103 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

Professional Contractual Services - Engineering

Contractual Services 140.52200 Engineering Services 57,837 13,203 14,420 16,500 35,180 35,180

Total Contractual Services 57,837 13,203 14,420 16,500 35,180 35,180

Total Prof. Cont. Svcs. - Engineering Expend. 57,837 13,203 14,420 16,500 35,180 35,180

104

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET PROFESSIONAL CONTRACTUAL LEGAL SERVICES NARRATIVE

Legal services include advice on matters before the Village Board, negotiations with developers and labor organizations, advice to the Village staff and prosecution for the defense of Village interests. These duties are divided among the Village Attorney and the Village Prosecutor who are engaged on an independent contractual basis.

0% Personal Services $0 0% Prof. Development $0 100% Contractual Services $118,400 0% Commodities $0 0% Capital Outlay $0 Total Budget $118,400

105 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

Professional Contractual Services - Legal

Contractual Services 145.52300 Legal Services 136,792 135,079 140,076 117,450 118,400 118,400

Total Contractual Services 136,792 135,079 140,076 117,450 118,400 118,400

Total Prof. Cont. Services. - Legal Expenditures 136,792 135,079 140,076 117,450 118,400 118,400

106

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET INSURANCE AND TORT NARRATIVE

The Insurance and Tort Division accounts for the insurance premiums for liability, workers compensation, fire, theft, portable equipment, vehicle coverage, surety bonds, notary bonds, and all other insurance coverage other than employee health insurance coverage which is allocated to each operating department.

60% Personal Services $267,750 0% Prof. Development $0 40% Contractual Services $181,770 0% Commodities $0 0% Capital Outlay $0 Total Budget $449,520

107 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

Insurance and Tort

Personal Services 150.42400 State Unemployment Insurance 3,986 8,152 5,185 12,500 6,000 6,000 150.42600 Workmen's Compensation Ins. 142,507 162,680 176,589 303,280 261,210 261,210 150.42800 Surety & Notary Bonds 1,080 1,220 1,165 440 540 540

Total Personal Services 147,573 172,052 182,939 316,220 267,750 267,750

Contractual Services 150.54500 Liability Insurance 122,612 146,142 169,252 206,130 181,770 181,770

Total Contractual Services 122,612 146,142 169,252 206,130 181,770 181,770

Total Insurance and Tort Expenditures 270,185 318,193 352,190 522,350 449,520 449,520

108

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET INTERFUND TRANSFERS NARRATIVE

The Interfund Transfers Division accounts for funds that are transferred from the General Fund to other funds.

0% Personal Services $0 0% Prof. Development $0 0% Contractual Services $0 0% Commodities $0 0% Capital Outlay $0 100% Interfund Transfers $983,540

Total Budget $983,540

109 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

Interfund Transfers

Interfund Transfers 155.91000 Interfund Transfers 1,075,346 993,217 981,992 1,026,470 983,540 983,540

Total Interfund Transfers 1,075,346 993,217 981,992 1,026,470 983,540 983,540

110 Residents of the Village of Lake in the Hills enjoy numerous village-wide activities, including National Night Out, Rockin’ Rotary Ribfest, and the annual Summer Sunset Festival.

111

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET MOTOR FUEL TAX FUND NARRATIVE

The Motor Fuel Tax is collected directly by the State of Illinois and then re-appropriated to the municipality based on the municipalities’ total population. Motor Fuel Tax monies, which are regulated by state statute, are designated for street repairs and maintenance.

Program Review

Street resurfacing was completed on: ¾ Kay Court (Anderson Street to End) ¾ Joseph Court (Anderson Street to End) ¾ Carl Court (Willow Street to End) ¾ Anderson Drive (Willow Street to Grace Street) ¾ Grace Drive (Viewpoint Drive to Anderson Drive) ¾ Willow Street (Pyott Road to Grace Street) ¾ McPhee Drive (Mohican Trail to Pyott Road) ¾ Mohican Trail (Willow Street to Brandt Drive) ¾ Deer Creek Lane (Greenfield Lane to Rolling Hills Drive) ¾ Greenfield Lane (Hazelwood Court to Swanson Road) ¾ Spring Lake Drive (Miller Road to Royal Oak Lane) ¾ Rolling Hills Drive (Farmington Court to Corporate Limits) ¾ Westminster Court (Rolling Hills Drive to End) ¾ Alexandria Drive (Annandale Drive to Terramere Lane) ¾ Chancery Way (Chancery Court to Terramere Lane) ¾ Hastings Court (Annandale Drive to End) ¾ Annandale Drive (Algonquin Road to Windermere Way) ¾ Washington Street (McKinley Street to Roosevelt Street) ¾ Oakleaf Road (Algonquin Road to Pheasant Trail) ¾ Spruce Street (Oak Street to End)

Crack sealing was completed in a portion of the Hills section, portion of the Southside, portion of Spring Lake Farm North and Crystal Lake Road (Algonquin Road to Indian Trail).

Goals and Objectives

¾ Carry out the programmed resurfacing projects ¾ Continue crack sealing in the Southside Subdivision (Wander Way to Oakleaf Road) and Village Creek Drive. ¾ Complete pavement marking on Miller Road west of Haligus Road, Haligus Road, Crystal Lake Road, Harvest Gate, Village Hall Drive, Albrecht Road, and Lakewood Road south of Algonquin Road.

Performance Indicators Estimated Projected 2009 2010 2011 2012 Miles of Streets Resurfaced 5.7 2.4 2.7 2.7 Miles of Streets Reconstructed 1.6 0 0 0

112

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET MOTOR FUEL TAX FUND NARRATIVE

Budget Highlights – Revenue Summary

A portion of the revenue from the State of Illinois Motor Fuel Tax is distributed each month to municipalities on a per capita basis for the construction, maintenance, and extension of municipal streets. Strictly speaking, the Village’s share of the Motor Fuel Tax is not revenue of the Village. Rather, it is state revenue used by the Village as an agent of the state. The Village must comply with strict state standards and rules in spending these funds. $687,910 in revenue is projected for the 2012 fiscal year which is based on estimated per capita revenue of $23.75 and the Village’s population of 28,965 from the 2010 special census. Additionally, $128,000 in grant revenue is included in the 2012 fiscal year budget to complete the Phase I Engineering for Jesse Road Bridge Design and the Hilltop Drive Bridge Rehabilitation Design.

Motor Fuel Tax Fund Revenues

$3,500,000 $3,137,413 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $876,946 $985,742 $871,180 $819,270 $1,000,000 $500,000 $0 FY08 FY09 FY10 FY11 (Estimate) FY12 (Projection)

Budget Highlights – Expenditure Summary

Public Works will continue to perform the fieldwork for the 2012 MFT Road Program to keep the engineering costs low. Design funds are planned to replace the culverts of the Jessie Road Bridge. These culverts have severe corrosion. Design funds are also planned to replace the bridge deck on the Hilltop Drive Bridge. The current deck beams are showing signs of deterioration which can only be restored by replacement. The Village received Highway Bridge Program (HBP) grant money for Phase 1 engineering for both projects. The Village will only have to pay 20% of the engineering costs. Since the Village is using HBP money the timeline of the project is longer due to the Federal and IDOT requirements. Actual construction is not expected to occur until 2013.

0% Personal Services $0 0% Prof. Development $0 19% Contractual Services $180,030 0% Commodities $0 81% Capital Outlay $744,200 Total Budget $924,230

113

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET MOTOR FUEL TAX FUND NARRATIVE

Capital Projects / Equipment

Crack Sealing $19,000 Pavement Marking $33,100 General Street Resurfacing $692,100 Total: $744,200

MFT Fund Balances

$1,800,000 $1,683,055

$1,600,000 $1,397,633 $1,292,673 $1,400,000 $1,216,363 $1,200,000 $1,000,000 $800,000 $703,244 $600,000 $400,000 $200,000 $0 FY08 FY09 FY10 FY11 FY12

114 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

MOTOR FUEL TAX FUND

Revenues

320.30410 MFT Allotments 813,814 791,825 912,206 859,590 687,910 687,910 320.32050 Grants 0 2,318,968 63,715 4,090 128,000 128,000 320.36050 Interest Income 63,133 26,620 9,821 7,500 3,360 3,360

Total Motor Fuel Tax Fund Revenues 876,946 3,137,413 985,742 871,180 819,270 819,270

Expenditures Contractual Services 320.52200 Engineering Services 370,855 379,404 86,023 16,770 180,030 180,030

Total Contractual Services 370,855 379,404 86,023 16,770 180,030 180,030

Commodities 320.62210 Ice & Snow Control Supplies 67,886 0 0 115,500 0 0

Total Commodities 67,886 0 0 115,500 0 0

Capital Outlay 320.81310 Streets 734,706 3,749,828 359,262 557,640 744,200 744,200

Total Capital Outlay 734,706 3,749,828 359,262 557,640 744,200 744,200

Total Motor Fuel Tax Fund Expenditures 1,173,447 4,129,233 445,285 689,910 924,230 924,230

Excess (Deficiency) of Revenues over Expenditures (296,501) (991,819) 540,457 181,270 (104,960) (104,960)

Available Fund Balance at start of Fiscal Year 1,982,422 1,683,055 703,244 1,216,363 1,397,633 1,397,633

Net Decrease (Increase) in Assets (2,866) 12,008 (27,338) 0 0 0

Available Fund Balance at end of Fiscal Year 1,683,055 703,244 1,216,363 1,397,633 1,292,673 1,292,673

115

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET SPECIAL SERVICE AREAS NARRATIVE

A Special Service Area is defined as an area established in order to levy or impose taxes for the provision of special services to an area within the boundaries of a municipality.

When the Village of Lake in the Hills was in the early stages of increased residential development, the Village sought out methods to ensure that the infrastructure needs of newly developed areas would be provided for. Maintenance and infrastructure concerns involved items such as detention and retention facilities, wetlands, storm drainage and other items directly related to individual developments. Special Service Areas were established to collect funds and to allocate resources to provide services in those areas.

Funds for all Special Service areas are collected through the property tax bill of residents living in a part of the Village designated as a Special Service Area.

The fourteen Special Service Areas are as follows:

SSA# Development Name 1 Spring Lake Farm North 2 Meadowbrook 3 Big Sky 4A Hidden Valley/Stoneybrook 4B Hidden Valley/Stoneybrook 5 Spring Lake Farm South 6 Hampton West 7 Heron Bay 8B Crystal Creek Commons 8C Prairie Point 10 Bank of America 14 Life Storage 15 Cheswick Place 24 Harvest Gate Detention

Goals and Objectives

¾ Maintain and improve the overall landscaping for the right-of-way, parks, and detention areas. ¾ Inspect and treat Ash trees for Emerald Ash Borer. ¾ Remove and reduce the growth of invasive weeds and saplings in natural areas. ¾ Conduct prescribed burns in the natural areas as part of a management plan.

116

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET SPECIAL SERVICE AREAS NARRATIVE

Performance Indicators Estimated Projected 2009 2010 2011 2012

Scheduled Tree Trimming 100% 90% 100% 100% Completed (1 area) (2 areas) (4 areas) (3 areas)

Scheduled Detention Maintenance 100% 100% 100% 100% Completed (28 actions) (28 actions) (30 actions) (32 actions)

Scheduled Prescribed Burns N/A N/A 100% 100% Completed (3 areas) (2 areas)

Budget Highlights – Revenue Summary

Property taxes fund the maintenance efforts of the Village’s fourteen Special Service Area Funds. Common areas such as stormwater detention facilities, bike paths, signage, recreation equipment, and parkways. are maintained by the Village. These services are paid for by each home located within the Special Service Area by a separate property tax levied for this purpose. Each year, the Village determines the amount of the property tax levy by reviewing expenditures and fund balances. The policy is to maintain a sufficient fund balance in each Special Service Area to allow for any unexpected expenditures while simultaneously maintaining a fairly stable tax rate. Planned future expenditures for playground replacements, swing replacements, tree trimming, emerald ash borer injections, prescribed burns, and fountain replacements are reviewed and incorporated into the budget as appropriate.

Special Service Area #24 is funded by contributions and an interfund transfer instead of property taxes. This fund was established to account for the maintenance of the Harvest Gate Detention Area. Five property owners are served by Special Service Area #24. The contributions line item accounts for the contributions received from Shorewood Properties (36.5% of budget), NIMED Corporation (9.7% of budget), DKI-LITH, L.P. (13.57% of budget), and Community Unit School District 300 (21.56% of budget). The Village contributes the remaining 18.67% of budgeted expenditures via an interfund transfer from the General Fund. A property tax can be levied in the event that any of the parties do not make their required contributions in a timely fashion.

Special Service Areas Revenues

$800,000 $633,256 $619,295

$600,000 $484,820 $517,580 $533,943

$400,000

$200,000

$0 FY08 FY09 FY10 FY11 (Estimate) FY12 (Projection)

117

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET SPECIAL SERVICE AREAS NARRATIVE

Budget Highlights – Expenditure Summary

Two prescribed burns are planned for the native planting areas at Meadowbrook and Windgate Way Detention. These burns are conducted to help control invasive species and reduce the threat of brush fire during dry spells. SSA#5 has a larger than expected tree replacement program due to the presence for the Emerald Ash Borer. The Village applied for and received a $20,000 grant to remove and replace EAB infested trees. The bulk of the replacements were located in SSA#5. We will continue to monitor this area to help preserve as many Ash trees as we can but anticipate the replacement of an estimated 30 Ash trees in FY12. The Forestry section will also be conducting its scheduled tree trimming planned in Springlake Farm South, Heron Bay and Viewpoint subdivisions. This five year tree trimming cycle has our foresters shaping trees and removing branch obstructions for pedestrian and vehicular traffic.

25% Personal Services $110,630 0% Prof. Development $0 63% Contractual Services $279,160 7% Commodities $29,220 0% Capital Outlay $0 6% Interfund Transfers $27,520 Total Budget $446,530

Capital Projects/Equipment

No capital projects or equipment are planned for FY12.

Special Service Areas Fund Balance

Special Service Areas Fund Balances

$950,370 $1,000,000 $862,960 $800,540 $719,834 $800,000 $600,000 $512,480 $400,000 $200,000 $0 FY08 FY09 FY10 FY11 FY12

118 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

SPECIAL SERVICE AREAS FUND

SSA # 1 Revenues

350.30240 Property Tax 17,937 145 2,750 4,180 5,200 5,200 350.36050 Interest Income 1,867 575 622 660 490 490

Total S.S.A. # 1 Fund Revenues 19,803 719 3,371 4,840 5,690 5,690

Expenditures Personal Services 350.41150 Personal Services Reimbursements 932 5,095 472 440 470 470

Total Personal Services 932 5,095 472 440 470 470

Contractual Services 350.51100 Maintenance, Grounds 6,277 6,077 6,189 6,350 6,980 6,980 350.51300 Maintenance, Infrastructure 15,107 1,500 0000 350.52800 Other Professional Services 999 1150000 350.54450 Equipment Service Reimbursements 384 1,645 264 120 120 120

Total Contractual Services 22,767 9,337 6,453 6,470 7,100 7,100

Commodities 350.61100 Maint. Spply & Prts, Grounds 0 9590000 350.62200 Operating Supplies 0 73 60 60 60 60

Total Commodities 0 1,032 60 60 60 60

Total S.S.A. # 1 Fund Expenditures 23,700 15,464 6,985 6,970 7,630 7,630

Excess (Deficiency) of Revenues over Expenditures (3,896) (14,744) (3,614) (2,130) (1,940) (1,940)

Available Fund Balance at start of Fiscal Year 52,292 49,511 35,000 31,388 29,258 29,258

Net Decrease (Increase) in Assets 1,115 2332000

Available Fund Balance at end of Fiscal Year 49,511 35,000 31,388 29,258 27,318 27,318

119 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

SPECIAL SERVICE AREAS FUND

SSA # 2 Revenues

352.30240 Property Tax 246,928 249,975 110,195 109,720 115,500 115,500 352.36050 Interest Income 2,646 1,625 3,892 5,440 4,080 4,080

Total S.S.A. # 2 Fund Revenues 249,574 251,600 114,086 115,160 119,580 119,580

Expenditures Personal Services 352.41150 Personal Services Reimbursements 14,998 27,665 21,861 17,000 18,760 18,760

Total Personal Services 14,998 27,665 21,861 17,000 18,760 18,760

Contractual Services 352.51100 Maintenance, Grounds 166,849 70,814 68,181 71,890 85,850 85,850 352.51400 Maintenance, Machinery/Equip 143 00000 352.52800 Other Professional Services 6,218 735 0 0 300 300 352.54450 Equipment Service Reimbursements 6,926 13,566 11,773 11,790 11,520 11,520

Total Contractual Services 180,136 85,116 79,954 83,680 97,670 97,670

Commodities 352.61100 Maint. Spply & Prts, Grounds 5,741 2,162 1,793 1,000 960 960 352.61300 Maint. Supply & Parts, Infrastructure 430 0 925 300 300 300 352.61400 Maint. Spply & Prts, Equipment 5,153 1,760 1,431 1,000 1,500 1,500 352.62200 Operating Supplies 128 333 100 370 100 100

Total Commodities 11,452 4,255 4,248 2,670 2,860 2,860

Total S.S.A. # 2 Fund Expenditures 206,586 117,036 106,063 103,350 119,290 119,290

Excess (Deficiency) of Revenues over Expenditures 42,987 134,563 8,023 11,810 290 290

Available Fund Balance at start of Fiscal Year 67,399 110,885 245,736 256,648 268,458 268,458

Net Decrease (Increase) in Assets 499 287 2,889 0 0 0

Available Fund Balance at end of Fiscal Year 110,885 245,736 256,648 268,458 268,748 268,748

120 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

SPECIAL SERVICE AREAS FUND

SSA # 3 Revenues

354.30240 Property Tax 128,071 105,820 109,978 109,720 115,500 115,500 354.36050 Interest Income 2,823 1,250 2,307 3,870 2,900 2,900 354.39500 Insurance/Restitutions 0 0 0 880 0 0

Total S.S.A. # 3 Fund Revenues 130,894 107,070 112,285 114,470 118,400 118,400

Expenditures Personal Services 354.41150 Personal Services Reimbursements 14,677 7,782 14,502 17,010 34,460 34,460

Total Personal Services 14,677 7,782 14,502 17,010 34,460 34,460

Contractual Services 354.51100 Maintenance, Grounds 67,539 58,204 57,201 70,220 3,730 3,730 354.51200 Maintenance, Buildings 0 0 0 1,300 0 0 354.51300 Maintenance, Infrastructure 0 5500000 354.52800 Other Professional Services 2,998 0 325 0 330 330 354.54300 Printing & Copying 33 00000 354.54450 Equipment Service Reimbursements 6,173 4,039 5,936 10,090 24,360 24,360 354.54500 Liability Insurance 0 0 0 890 0 0

Total Contractual Services 76,744 62,793 63,462 82,500 28,420 28,420

Commodities 354.61100 Maint. Supply & Parts, Grounds 263 0 0 1,160 13,890 13,890 354.61300 Maint. Supply & Parts, Infrastructure 0 0 300 1,000 200 200 354.61400 Maint. Supply & Parts, Equip 871 40 0 0 250 250 354.62200 Operating Supplies 0 217 330 100 100 100

Total Commodities 1,134 257 630 2,260 14,440 14,440

Total S.S.A..# 3 Fund Expenditures 92,555 70,832 78,595 101,770 77,320 77,320

Excess (Deficiency) of Revenues over Expenditures 38,340 36,238 33,691 12,700 41,080 41,080

Available Fund Balance at start of Fiscal Year 69,296 105,606 143,611 178,482 191,182 191,182

Net Decrease (Increase) in Assets (2,030) 1,767 1,181 0 0 0

Available Fund Balance at end of Fiscal Year 105,606 143,611 178,482 191,182 232,262 232,262

121 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

SPECIAL SERVICE AREAS FUND

SSA # 4A Revenues

356.30240 Property Tax 30,007 45,979 48,972 49,870 52,500 52,500 356.36050 Interest Income 1,053 426 772 1,290 960 960

Total S.S.A.# 4A Fund Revenues 31,060 46,405 49,744 51,160 53,460 53,460

Expenditures Personal Services 356.41150 Personal Services Reimbursements 8,930 10,872 16,406 5,760 18,620 18,620

Total Personal Services 8,930 10,872 16,406 5,760 18,620 18,620

Contractual Services 356.51100 Maintenance, Grounds 16,732 12,603 10,885 11,430 12,900 12,900 356.51300 Maintenance, Infrastructure 740 00000 356.52200 Engineering Services 93 00000 356.52800 Other Professional Services 2,599 620 0 0 250 250 356.54450 Equipment Service Reimbursements 3,275 4,769 9,903 3,540 6,510 6,510

Total Contractual Services 23,438 17,992 20,788 14,970 19,660 19,660

Commodities 356.61100 Maint. Spply & Prts, Grounds 944 1,107 954 100 960 960 356.61300 Maint. Supply & Parts, Infrastructure 0 0 0 320 0 0 356.61400 Maint. Supply & Parts, Equip 0 124 165 0 450 450 356.62200 Operating Supplies 3,603 145 586 60 60 60

Total Commodities 4,546 1,375 1,704 480 1,470 1,470

Total S.S.A.# 4A Fund Expenditures 36,914 30,239 38,899 21,210 39,750 39,750

Excess (Deficiency) of Revenues over Expenditures (5,854) 16,166 10,845 29,950 13,710 13,710

Available Fund Balance at start of Fiscal Year 35,199 30,041 46,212 57,647 87,597 87,597

Net Decrease (Increase) in Assets 696 5 590000

Available Fund Balance at end of Fiscal Year 30,041 46,212 57,647 87,597 101,307 101,307

122 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

SPECIAL SERVICE AREAS FUND

SSA # 4B Revenues

358.30240 Property Tax 102 1,800 3,600 4,580 5,600 5,600 358.36050 Interest Income 236 100 169 140 100 100

Total S.S.A. #4B Fund Revenues 338 1,900 3,769 4,720 5,700 5,700

Expenditures Personal Services 358.41150 Personal Services Reimbursements 17 551 256 950 650 650

Total Personal Services 17 551 256 950 650 650

Contractual Services 358.51100 Maintenance, Grounds 923 465 2,964 2,940 3,250 3,250 358.54450 Equipment Service Reimbursements 28 197 134 580 310 310

Total Contractual Services 950 662 3,099 3,520 3,560 3,560

Commodities 358.61400 Maint. Supply & Parts, Equip 0 14 13 0 50 50

Total Commodities 0 14 13 0 50 50

Total S.S.A. # 4B Fund Expenditures 967 1,226 3,368 4,470 4,260 4,260

Excess (Deficiency) of Revenues over Expenditures (629) 674 401 250 1,440 1,440

Available Fund Balance at start of Fiscal Year 6,343 5,749 6,404 6,823 7,073 7,073

Net Decrease (Increase) in Assets 35 (19) 18000

Available Fund Balance at end of Fiscal Year 5,749 6,404 6,823 7,073 8,513 8,513

123 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

SPECIAL SERVICE AREAS FUND

SSA # 5 Revenues

360.30240 Property Tax 116,938 103,180 102,721 117,500 117,800 117,800 360.32050 Grants 0 0 0 6,210 0 0 360.36050 Interest Income 2,476 1,276 2,441 2,770 2,070 2,070 360.39500 Insurance & Restitutions 0 1,006 0000

Total S.S.A. # 5 Fund Revenues 119,413 105,462 105,162 126,480 119,870 119,870

Expenditures Personal Services 360.41150 Personal Services Reimbursements 6,635 13,358 23,014 35,440 23,730 23,730

Total Personal Services 6,635 13,358 23,014 35,440 23,730 23,730

Contractual Services 360.51100 Maintenance, Grounds 59,806 52,350 50,731 56,090 61,560 61,560 360.51400 Maintenance, Machinery/Equip 0 0 0 150 250 250 360.52800 Other Professional Services 2,998 0 155 0 160 160 360.53100 Electrical Services 1,488 1,626 1,248 1,790 1,790 1,790 360.54100 Postage 0 0 11000 360.54300 Printing & Copying 0 05000 360.54450 Equipment Service Reimbursements 3,775 7,414 12,024 25,850 13,840 13,840

Total Contractual Services 68,068 61,390 64,174 83,880 77,600 77,600

Commodities 360.61100 Maint. Spply & Prts, Grounds 2,762 3,098 2,956 5,920 4,800 4,800 360.61300 Maint. Supply & Parts, Infrastructure 250 0 300 300 1,000 1,000 360.61400 Maint. Supply & Parts, Equip 1,611 72 1,510 1,470 1,000 1,000 360.62200 Operating Supplies 27 857 475 100 100 100

Total Commodities 4,650 4,027 5,241 7,790 6,900 6,900

Total S.S.A. # 5 Fund Expenditures 79,352 78,775 92,429 127,110 108,230 108,230

Excess (Deficiency) of Revenues over Expenditures 40,061 26,687 12,733 (630) 11,640 11,640

Available Fund Balance at start of Fiscal Year 74,793 115,768 142,606 156,713 156,083 156,083

Net Decrease (Increase) in Assets 914 151 1,374 0 0 0

Available Fund Balance at end of Fiscal Year 115,768 142,606 156,713 156,083 167,723 167,723

124 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

SPECIAL SERVICE AREAS FUND

SSA # 6 Revenues

362.30240 Property Tax 39,016 39,990 49,992 55,060 55,200 55,200 362.36050 Interest Income 2,289 665 1,275 1,740 1,300 1,300

Total S.S.A. # 6 Fund Revenues 41,305 40,655 51,268 56,800 56,500 56,500

Expenditures Personal Services 362.41150 Personal Services Reimbursements 3,881 10,535 8,026 15,920 5,920 5,920

Total Personal Services 3,881 10,535 8,026 15,920 5,920 5,920

Contractual Services 362.51100 Maintenance, Grounds 20,594 20,083 20,836 23,190 23,240 23,240 362.51300 Maintenance, Infrastructure 15,760 00000 362.52800 Other Professional Services 1,499 00000 362.54400 Rental Contracts 0 680000 362.54450 Equipment Service Reimbursements 2,332 4,283 4,377 10,040 3,990 3,990

Total Contractual Services 40,184 24,434 25,213 33,230 27,230 27,230

Commodities 362.61100 Maint. Supply & Parts, Grounds 1,768 4,565 2,522 120 1,600 1,600 362.61200 Maint. Spply & Parts, Buildings 0 120000 362.61300 Maint. Supply & Parts, Infrastruct. 2,202 60 150 150 190 190 362.61400 Maint. Supply & Parts, Equip 144 175 496 200 500 500 362.62200 Operating Supplies 12 220 59 60 60 60

Total Commodities 4,125 5,032 3,227 530 2,350 2,350

Capital Outlay 362.81400 Equipment 0 2,195 0000

Total Capital Outlay 0 2,195 0000

Total S.S.A. # 6 Fund Expenditures 48,191 42,196 36,466 49,680 35,500 35,500

Excess (Deficiency) of Revenues over Expenditures (6,886) (1,541) 14,801 7,120 21,000 21,000

Available Fund Balance at start of Fiscal Year 73,238 65,777 64,353 80,050 87,170 87,170

Net Decrease (Increase) in Assets (575) 117 896000

Available Fund Balance at end of Fiscal Year 65,777 64,353 80,050 87,170 108,170 108,170

125 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

SPECIAL SERVICE AREAS FUND

SSA # 7 Revenues

364.30240 Property Tax 103 1,200 3,600 3,590 4,600 4,600 364.36050 Interest Income 322 127 195 180 130 130

Total S.S.A. # 7 Fund Revenues 425 1,327 3,795 3,770 4,730 4,730

Expenditures Personal Services 364.41150 Personal Services Reimbursements 593 930 1,499 1,200 4,410 4,410

Total Personal Services 593 930 1,499 1,200 4,410 4,410

Contractual Services 364.54450 Equipment Service Reimbursements 279 521 846 790 2,060 2,060

Total Contractual Services 279 521 846 790 2,060 2,060

Commodities 364.61100 Maint. Supply & Parts, Grounds 532 526 552 10 480 480 364.61300 Maint. Spply & Parts, Infrastruct 0 0 150 150 150 150

Total Commodities 532 526 702 160 630 630

Total S.S.A. # 7 Fund Expenditures 1,404 1,976 3,047 2,150 7,100 7,100

Excess (Deficiency) of Revenues over Expenditures (979) (649) 748 1,620 (2,370) (2,370)

Available Fund Balance at start of Fiscal Year 8,916 8,004 7,347 8,103 9,723 9,723

Net Decrease (Increase) in Assets 67 (8) 8000

Available Fund Balance at end of Fiscal Year 8,004 7,347 8,103 9,723 7,353 7,353

126 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

SPECIAL SERVICE AREAS FUND

SSA # 8B Revenues

366.30240 Property Tax 103 100 100 90 100 100 366.36050 Interest Income 190 78 134 80 60 60

Total S.S.A. # 8B Fund Revenues 293 178 234 170 160 160

Expenditures Personal Services 366.41150 Personal Services Reimbursements 228 150 48 1,110 150 150

Total Personal Services 228 150 48 1,110 150 150

Contractual Services 366.54450 Equipment Service Reimbursements 187 136 36 600 170 170

Total Contractual Services 187 136 36 600 170 170

Commodities 366.61100 Maint. Spply & Prts, Grounds 362 00000

Total Commodities 362 00000

Total S.S.A. # 8B Fund Expenditures 777 286 83 1,710 320 320

Excess (Deficiency) of Revenues over Expenditures (484) (108) 150 (1,540) (160) (160)

Available Fund Balance at start of Fiscal Year 4,920 4,448 4,339 4,493 2,953 2,953

Net Decrease (Increase) in Assets 13 (2) 4000

Available Fund Balance at end of Fiscal Year 4,448 4,339 4,493 2,953 2,793 2,793

127 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

SPECIAL SERVICE AREAS FUND

SSA # 8C Revenues

368.30240 Property Tax 113 99 1,099 90 100 100 368.36050 Interest Income 276 136 229 160 120 120

Total S.S.A. # 8C Fund Revenues 390 235 1,328 250 220 220

Expenditures Personal Services 368.41150 Personal Services Reimbursements 0 154 387 530 150 150

Total Personal Services 0 154 387 530 150 150

Contractual Services 368.54450 Equipment Service Reimbursements 0 124 267 380 180 180

Total Contractual Services 0 124 267 380 180 180

Commodities 368.61100 Maint. Spply & Prts, Grounds 0 345 373000

Total Commodities 0 345 373000

Total S.S.A. # 8C Fund Expenditures 0 624 1,027 910 330 330

Excess (Deficiency) of Revenues over Expenditures 390 (388) 301 (660) (110) (110)

Available Fund Balance at start of Fiscal Year 6,663 7,068 6,679 6,982 6,322 6,322

Net Decrease (Increase) in Assets 15 (1) 3000

Available Fund Balance at end of Fiscal Year 7,068 6,679 6,982 6,322 6,212 6,212

128 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

SPECIAL SERVICE AREAS FUND

SSA # 10 Revenues

372.30240 Property Tax 20,000 20,000 20,000 20,000 20,000 20,000 372.36050 Interest Income 2 0 0 10 10 10

Total S.S.A. # 10 Fund Revenues 20,002 20,000 20,000 20,010 20,010 20,010

Expenditures Interfund Transfers 372.91000 Interfund Transfers 20,006 20,002 20,001 20,010 20,010 20,010

Total Interfund Transfers 20,006 20,002 20,001 20,010 20,010 20,010

Total S.S.A. # 10 Fund Expenditures 20,006 20,002 20,001 20,010 20,010 20,010

Excess (Deficiency) of Revenues over Expenditures (4) (2) 0000

Available Fund Balance at start of Fiscal Year 0 00000

Net Decrease (Increase) in Assets 4 20000

Available Fund Balance at end of Fiscal Year 0 00000

129 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

SPECIAL SERVICE AREAS FUND

SSA # 14 Revenues

380.30240 Property Tax 7,500 7,500 7,500 7,500 7,500 7,500 380.36050 Interest Income 1 0 0 10 10 10

Total S.S.A. # 14 Fund Revenues 7,501 7,500 7,500 7,510 7,510 7,510

Expenditures Interfund Transfers 380.91000 Interfund Transfers 7,502 7,501 7,500 7,510 7,510 7,510

Total Interfund Transfers 7,502 7,501 7,500 7,510 7,510 7,510

Total S.S.A. # 14 Fund Expenditures 7,502 7,501 7,500 7,510 7,510 7,510

Excess (Deficiency) of Revenues over Expenditures (2) (1) 0000

Available Fund Balance at start of Fiscal Year 0 00000

Net Decrease (Increase) in Assets 2 10000

Available Fund Balance at end of Fiscal Year 0 00000

130 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

SPECIAL SERVICE AREAS FUND

SSA # 15 Revenues

382.30240 Property Tax 11,987 10,800 12,000 11,970 20,100 20,100 382.36050 Interest Income 271 445 278 270 200 200 382.39200 Contributions 0 25,000 0000

Total S.S.A. # 15 Fund Revenues 12,258 36,244 12,278 12,240 20,300 20,300

Expenditures Personal Services 382.41150 Personal Services Reimbursements 862 2,809 1,524 1,150 3,030 3,030

Total Personal Services 862 2,809 1,524 1,150 3,030 3,030

Contractual Services 382.51100 Maintenance, Grounds 647 4,074 4,018 6,110 13,770 13,770 382.54200 Publishing/Advertising 0 580000 382.54450 Equipment Service Reimbursements 480 1,762 565 850 1,670 1,670

Total Contractual Services 1,127 5,894 4,583 6,960 15,440 15,440

Commodities 382.61400 Supplies/Parts - Equipment 0 0 0 200 400 400

Total Commodities 0 0 0 200 400 400

Capital Outlay 382.81250 Improvements, Other 0 20,260 10,509 0 0 0

Total Capital Outlay 0 20,260 10,509 0 0 0

Total S.S.A. # 15 Fund Expenditures 1,989 28,963 16,615 8,310 18,870 18,870

Excess (Deficiency) of Revenues over Expenditures 10,270 7,281 (4,337) 3,930 1,430 1,430

Available Fund Balance at start of Fiscal Year 0 9,623 17,547 13,211 17,141 17,141

Net Decrease (Increase) in Assets (647) 6431000

Available Fund Balance at end of Fiscal Year 9,623 17,547 13,211 17,141 18,571 18,571

131 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

SPECIAL SERVICE AREAS FUND

SSA # 24 Revenues

391.36050 Interest Income 0 0 0 0 20 20 391.39200 Contributions 0 0 0 0 1,450 1,450 391.39900 Interfund Transfers 0 0 0 0 340 340

Total S.S.A. # 24 Fund Revenues 0 0 0 0 1,810 1,810

Expenditures Personal Services 391.41150 Personal Services Reimbursements 0 0 0 0 280 280

Total Personal Services 0 0 0 0 280 280

Contractual Services 391.54450 Equipment Service Reimbursements 0 0 0 0 70 70

Total Contractual Services 0 0 0 0 70 70

Commodities 391.62200 Operating Supplies 0 0 0 0 60 60

Total Commodities 0 0 0 0 60 60

Total S.S.A..# 24 Fund Expenditures 0 0 0 0 410 410

Excess (Deficiency) of Revenues over Expenditures 0 0 0 0 1,400 1,400

Available Fund Balance at start of Fiscal Year 0 00000

Net Decrease (Increase) in Assets 0 00000

Available Fund Balance at end of Fiscal Year 0 0 0 0 1,400 1,400

132

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET DEBT SERVICE FUND NARRATIVE

The Debt Service Fund is used to account for the repayment of all debt issued by the Village with the exception of the Enterprise Funds, which account for their own debt service payments.

The Village’s debt management policy does not allow for issuing debt for operating purposes. Accordingly, all of the expenditures in this fund are for the retirement of debt issued for capital expenditures such as land purchases, construction of buildings, and capital asset acquisitions. The Village also makes every effort to avoid paying for debt retirement with property taxes. Accordingly, for the 2012 fiscal year, interfund transfers from the General Fund in the amount of $983,200 fund all expenditures in the Debt Service Fund.

Outstanding debt issues include: • $905,000 General Obligation Bonds, Series 2004. This debt was issued for the purchase of land for open space and recreation purposes (Susong property) and the final payment is due in December, 2013. • $2,800,000 General Obligation Bonds, Series 2006. This debt was issued for the expansion and renovation of the Public Works facility and the final payment is due in December, 2020. • $3,795,000 General Obligation Refunding Bonds, Series 2009. This debt was issued as an advanced refunding of the $4,475,000 General Obligation (Limited Tax) Debt Certificates, Series 2002 which was issued for the purchase of land for open space and recreation purposes (Larsen and Sullivan properties) and the final payment is due in December, 2017.

Budget Highlights – Revenue Summary

Debt Service Fund Revenues

$6,000,000 $4,982,036 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,075,346 $981,992 $1,026,470 $983,200 $1,000,000 $0 FY08 FY09 FY10 FY11 (Estimate) FY12 (Projection)

133

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET DEBT SERVICE FUND NARRATIVE

Budget Highlights – Expenditure Summary

0% Personal Services $0 0% Prof. Development $0 0% Contractual Services $990 0% Commodities $0 0% Capital Outlay $0 1E 100% Debt Service $982,210 Total Budget $983,200

134 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

DEBT SERVICE FUND

Revenues

160.39600 Debt Issue Proceeds 0 3,795,000 0000 160.39700 Premium on Bond Proceeds 0 193,819 0000 160.39900 Interfund Transfers 1,075,346 993,217 981,992 1,026,470 983,200 983,200

Total Debt Service Fund Revenues 1,075,346 4,982,036 981,992 1,026,470 983,200 983,200

Expenditures Personal Services 160.45400 Travel Expenses 0 190000

Total Personal Services 0 190000

Contractual Services 160.52100 Accounting Services 0 2,200 0000 160.52300 Legal Services 0 14,000 0000 160.52800 Other Professional Services 1,126 45,429 1,097 3,490 990 990 160.54100 Postage 0 2310000 160.54300 Printing & Copying 0 1,823 0000

Total Contractual Services 1,126 63,683 1,097 3,490 990 990

Debt Service 160.71000 Principal Payments 715,000 710,000 715,000 740,000 770,000 770,000 160.72000 Interest Payments 359,220 288,097 265,895 237,520 212,210 212,210 160.75000 Arbitrage Rebate Payments 0 0 0 45,460 0 0 160.79000 Payment to Escrow Agent 0 3,920,237 0000

Total Debt Service 1,074,220 4,918,335 980,895 1,022,980 982,210 982,210

Total Debt Service Fund Expenditures 1,075,346 4,982,036 981,992 1,026,470 983,200 983,200

Excess (Deficiency) of Revenues over Expenditures 0 00000

Available Fund Balance at start of Fiscal Year 0 00000

Available Fund Balance at end of Fiscal Year 0 00000

135

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET LAKE RESTORATION FUND NARRATIVE

The Lake Restoration Fund is responsible for the quality of the lakes located in the Village. For accounting purposes, the Lake Restoration Fund is part of the capital project fund that is used to account for financial resources used for the acquisition or construction of major capital facilities that are not financed by proprietary funds. Separate funds are used to account for monies set- aside for lake restoration projects.

Program Review

The Village continued to participate in the Volunteer Lake Monitoring Program. The objective of VLMP is to increase citizen knowledge and awareness of the factors that affect lake water quality so they can better understand the relationship between the lake and its watershed. It also encourages development and implementation of sound lake protection and management plans while providing historic data to help document water quality impacts and support management decision-making.

Late in the year, the project to repair some flow of water under the east concrete wall of Dam #4 was completed. The repair was to minimize any future flow of water under the concrete wall structure.

Goals and Objectives

¾ Conduct tests necessary to meet health and environmental standards established by the McHenry County Health Department. ¾ Continue participating in the Volunteer Lake Monitoring Program.

Performance Indicators Estimated Projected 2009 2010 2011 2012 Water Testing Required By McHenry County Health Dept 10 10 10 10 Restoration Projects 0 1 1 0

Budget Highlights – Revenue Summary

$40,280 is projected to be received in lakes/streams maintenance fees from the Krueger Property development in FY12. This revenue source is split evenly between the Woods Creek Lake Fund and the Goose Lake/Willow Lake/Lake Scott Fund to help pay for maintenance costs for the Village’s lakes.

136

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET LAKE RESTORATION FUND NARRATIVE

Woods Creek Lake Revenues

$40,000 $36,053 $35,000 $30,000 $23,370 $25,000

$20,000 $16,380 $15,097 $15,000 $11,660 $10,000 $5,000 $0 FY08 FY09 FY10 FY11 (Estimate) FY12 (Projection)

Goose, Willow and Lake Scott Revenues

$160,000 $139,770 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $23,605 $23,310 $13,994 $20,000 $6,008 $0 FY08 FY09 FY10 FY11 (Estimate) FY12 (Projection)

Budget Highlights – Expenditure Summary

The Village will be continuing to participate with the Village of Algonquin and the City of Crystal Lake in creating a watershed based plan for the Woods Creek Watershed. The process of creating a Watershed based Plan for Woods Creek Watershed will bring stakeholders together and help them understand the watershed and initiate projects to improve water quality and enhance natural resources and open space. The project is estimated to be completed in 2013. The work is supported by an Illinois Environmental Protection Agency 319 grant. Any projects identified in the study will normally qualify for additional 319 grant support in their execution.

0% Personal Services $0 0% Prof. Development $0 99% Contractual Services $10,760 1% Commodities $60 0% Capital Outlay $0 Total Budget $10,820 10 6 Capital Projects/Equipment

No capital items are planned for in FY12.

137

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET LAKE RESTORATION FUND NARRATIVE

Lake Restoration Fund Balances

Woods Creek Lake Fund Balances

$560,000 $553,864 $550,000 $541,254 $540,000 $531,854 $530,000 $519,559 $520,000 $510,937 $510,000 $500,000 $490,000 $480,000 FY08 FY09 FY10 FY11 FY12

Goose Lake, Willow Lake & Lake Scott Fund Balances

$160,000 $148,215 $140,000 $124,965 $120,000 $94,807 $98,747 $100,000 $80,000 $60,000

$40,000 $20,325 $20,000 $0 FY08 FY09 FY10 FY11 FY12

138 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

WOODS CREEK LAKE (LAKE NO. 1)

Revenues

420.32050 Grants 0 0 2,500 0 0 0 420.33440 Lake Maintenance 15,305 5,887 0 5,030 20,140 20,140 420.36050 Interest Income 20,748 10,494 12,597 6,630 3,230 3,230

Total Woods Creek Lake Revenue 36,053 16,380 15,097 11,660 23,370 23,370

Expenditures Contractual Services 420.52200 Engineering Services 2,500 7,600 2,600 2,200 10,700 10,700 420.54100 Postage 42 41 31 40 40 40 420.54300 Printing & Copying 0 0 18 20 20 20

Total Contractual Services 2,542 7,641 2,648 2,260 10,760 10,760

Total Woods Creek Lake Expenditures 2,542 7,641 2,648 2,260 10,760 10,760

Excess (Deficiency) of Revenues over Expenditures 33,511 8,740 12,449 9,400 12,610 12,610

Available Fund Balance at start of Fiscal Year 476,285 510,937 519,559 531,854 541,254 541,254

Net Decrease (Increase) in Assets 1,141 (118) (153) 0 0 0

Available Fund Balance at end of Fiscal Year 510,937 519,559 531,854 541,254 553,864 553,864

139 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

GOOSE LAKE, WILLOW LAKE & LAKE SCOTT ( LAKES NO. 2, 3 & 4)

Revenues

425.33440 Lake Maintenance 15,305 5,887 0 5,030 20,140 20,140 425.36050 Interest Income 8,300 8,107 6,008 4,230 3,170 3,170 425.39050 Miscellaneous Revenue 0 0 0 130,510 0 0

Total Goose, Willow, & Lake Scott Revenues 23,605 13,994 6,008 139,770 23,310 23,310

Expenditures Contractual Services 425.51300 Maintenance, Infrastructure 722 0 78,000 30,000 0 0 425.51400 Maintenance, Equipment 0 0 1,146 0 0 0 425.52200 Engineering Services 1,000 10,000 1,978 5,000 0 0 425.54100 Postage 24 0 28 20 0 0 425.54200 Publishing & Advertising 0 0 152 40 0 0 425.54300 Printing & Copying 0 0 13 10 0 0 425.54400 Rental Contracts 0 0 94000

Total Contractual Services 1,746 10,000 81,410 35,070 0 0

Commodities 425.61300 Maint. Supply & Parts, Infrastruct. 0 0 2,829 0 0 0 425.61400 Maint. Supply & Parts, Equip 324 53 191 60 60 60

Total Commodities 324 53 3,021 60 60 60

Total Goose, Willow & Lake Scott Expenditures 2,070 10,053 84,431 35,130 60 60

Excess (Deficiency) of Revenues over Expenditures 21,535 3,941 (78,423) 104,640 23,250 23,250

Available Fund Balance at start of Fiscal Year 73,025 94,807 98,747 20,325 124,965 124,965

Net Decrease (Increase) in Assets 247 00000

Available Fund Balance at end of Fiscal Year 94,807 98,747 20,325 124,965 148,215 148,215

140

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET WATER CAPITAL IMPROVEMENT NARRATIVE

The Water Capital Improvement Fund is funded from development-related sources. Tap-in fees are charged to developers at the time the user is added to the system, and revenues received are used for capital projects related to future expansion of the water system. The Water Capital Improvement Fund reflects budget and project priorities for the next five fiscal years. Ultimately, this fund will be eliminated once new water infrastructure additions are completed and maintenance of the water system will become the primary focus.

Program Review

Fiscal Year 2011 saw the completion of scheduled water system improvement projects in accordance with the updated Water System Study and Master Plan. The Well 9/17 Water Treatment Plant Project was completed on time and within the allotted budget as Maxim Construction, Inc. successfully met the contractual obligations of both substantial and final completion. Meeting these completion dates on time was crucial to the uninterrupted operation of the water system. Both Well 10 and Well 11 experienced failures in the peak production season and were off line for extended periods of time for repair. The contribution of the new Well 9/17 Water Treatment Plant was especially helpful in making up the difference in lost pumping capacity and meeting consumer demand during this time. Because of this, no increased outside watering restrictions were necessary despite the largest pumping season experienced since 2006.

Goals and Objectives

¾ Collect tap-in fees to fund future projects.

Performance Indicators

Estimated Projected

2009 2010 2011 2012 Percentage of projects completed within 100 % 100 % N/A N/A budget (3) (1) Percentage of projects completed in 100 % 100 % N/A N/A allotted time (3) (1)

Budget Highlights – Revenue Summary

Water Tapping Fees A 5% increase in the water tapping fee is proposed for Fiscal Year 2012 to provide sufficient funding for future water system capital improvement projects, should they become necessary. This will result in $172,610 in projected revenue from water tapping fees based on nine 1” residential water taps at $14,465 each, one 1” commercial water tap (Lake Point Commercial Subdivision) at $14,465 and one 1.5” commercial water tap (Mark Riggsby – final lot at Imhoff) at $27,960.

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VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET WATER CAPITAL IMPROVEMENT NARRATIVE

Interest Income All funds collected that are not immediately required for payment of operating expenses are invested according to the Village’s investment policy. Interest income is projected to be $11,600 in Fiscal Year 2012 based on current interest rates.

Water Capital Improvement Fund Revenues $542,433 $600,000 $464,614 $500,000

$400,000 $287,040 $218,492 $300,000 $184,210 $200,000 $100,000 $0 FY08 FY09 FY10 FY11 (Estimate) FY12 (Projection)

Budget Highlights – Expenditure Summary

No expenditures are anticipated for Fiscal Year 2012.

100% Interfund Transfer $134,500 Total Budget $134,500

Capital Projects / Equipment

No projects are anticipated for Fiscal Year 2012.

Water Capital Improvement Fund Balances

$5,000,000 $3,879,539 $4,000,000 $3,172,746 $3,000,000 $2,254,836 $2,000,000 $1,533,206 $1,582,916

$1,000,000 $0 FY08 FY09 FY10 FY11 FY12

142 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

WATER CAPITAL IMPROVEMENT FUND

Revenues

510.33540 Water Tapping Fee 308,100 123,400 68,150 271,070 172,610 172,610 510.36050 Interest Income 156,514 95,092 65,490 15,970 11,600 11,600 510.39050 Miscellaneous Revenue 0 0 408,794 0 0 0

Total Water Cap. Improvement Fund Revenues 464,614 218,492 542,433 287,040 184,210 184,210

Expenditures Contractual Services 510.52200 Engineering Services 37,587 187,315 112,603 129,850 0 0

Total Contractual Services 37,587 187,315 112,603 129,850 0 0

Capital Outlay 510.81320 Wells & Storage 103,604 222,122 936,679 878,820 0 0

Total Capital Outlay 103,604 222,122 936,679 878,820 0 0

Interfund Transfers 510.91000 Interfund Transfers 0 553,294 408,794 0 134,500 134,500

Total Interfund Transfers 0 553,294 408,794 0 134,500 134,500

Total Water Cap. Impr. Fund Expenditures 141,191 962,731 1,458,076 1,008,670 134,500 134,500

Excess (Deficiency) of Revenues over Expenditures 323,422 (744,239) (915,643) (721,630) 49,710 49,710

Available Fund Balance at start of Fiscal Year 3,552,869 3,879,539 3,172,746 2,254,836 1,533,206 1,533,206

Net Decrease (Increase) in Assets 3,248 37,446 (2,267) 0 0 0

Available Fund Balance at end of Fiscal Year 3,879,539 3,172,746 2,254,836 1,533,206 1,582,916 1,582,916

143

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET WATER OPERATING AND MAINTENANCE NARRATIVE

The Water Operating and Maintenance Fund is designated for the installation and maintenance of the Village’s water system. This includes the wells, pumps, treatment plants, towers, water mains, meters, fire hydrants, valves, and other facilities necessary to provide clean, potable water. The division is also responsible for daily testing on the system, meter reading, meter inspections, and J.U.L.I.E. locations.

Program Review

During Fiscal Year 2011, the continuation of maintenance and improvement programs marked another successful year. The twelfth year of the annual Water Main Replacement Program replaced obsolete water main pipe, fire hydrants, and isolation valves in the eastern section of the “Trees” subdivision. Beyond the more obvious benefits of increased fire flow and water quality, the completion of the 2011 portion also decreases the scope of shut down areas necessary during repair procedures. The availability and increased reliability of newly installed isolation valves allows for smaller shut down areas, which minimizes inconvenience to residents. This improvement was the primary motivation behind altering the replacement schedule into the Trees subdivision. The Village’s goal of improving the area in its entirety will be realized with completion of the 2012 portion.

The Buffalo Box Identification Program continued in 2011, successfully completing the second of three phases as planned. Beyond the benefit of knowing the location of individual buffalo boxes, the process identified several unserviceable units which were repaired and returned to proper operation. It is a great benefit to the residents of Lake in the Hills for the Water Division staff to have expedient access to a properly working main shut off valve whenever interior leaks occur.

The Hydrant Maintenance Program continued in 2011 and has already overlapped areas addressed in the original three phases. Operational discrepancies are still being identified and repaired, but the extent of maintenance and repair needed for each hydrant is noticeably reduced as compared to the original three events. This reduction in operational problems is a measurable benefit of the program.

Beginning in 2006, significant effort was placed into establishing impeccable compliance with sampling parameters mandated by the Illinois Environmental Protection Agency (IEPA). The biggest challenge was reaching compliance with the Lead and Copper sampling program, which the Village had not successfully completed in the previous seventeen years. By 2009, the Village was granted a reduced monitoring waiver, reducing the mandated sampling to one event per year instead of two events per year. Through continued efforts and consistently passing sample results since that time, the Village was awarded with another reduced monitoring waiver in 2011, further reducing the mandated sampling from one event per year to one event every three years. The Village received its sixth consecutive Fluoride Award in 2011 and completed its fifth consecutive year with no sampling violations of any kind.

The Village-Wide Hydrant Flushing Program continued in 2011, marking the third consecutive year that the program included two annual events as designed. The ability to conduct consecutive flushing events in this manner without interruption increases the effectiveness of the

144

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET WATER OPERATING AND MAINTENANCE NARRATIVE

program. As the program has continued, the volume of particulate from each hydrant is decreased and the amount of time each hydrant needs to be flushed is reduced, which in turn reduces the amount of water utilized. Although this trend continued in the right direction during 2011, the need for two consecutive flushing events is anticipated during 2012.

During 2011, the Village initiated a cooperative with the McHenry County Council of Governments for the joint purchasing of water treatment chemicals among municipalities in the county. The concept of joint purchasing is to purchase water treatment chemicals at a reduced cost through economy of scale. Several municipalities met on the topic in the summer of 2011 and were interested in moving forward with the idea. Draft bidding documents were created and submitted to the participating municipalities for review and approval in September of 2011 with intention to go out to bid in November.

Goals and Objectives

¾ Continue with the Water Main Replacement Program to replace obsolete water mains, hydrants, and isolation valves to provide increased fire protection capacity throughout the Village, reduce repair expenditures and enhance system reliability. ¾ Continue to follow the master maintenance plan for the water production system. ¾ Continue hydrant maintenance, valve maintenance, and safety training programs. ¾ Complete buffalo box identification and mapping in the western portion of the Village. ¾ Continue semi-annual system flushing program to maintain water quality. ¾ Increase the efficiency of salt usage at ion exchange facilities through hardness and barium analysis in conjunction with experimentation into filter run time extensions. ¾ Continue to increase operational readiness of Division staff through increased training, cross training, and educational opportunities. ¾ Continue pursuit of 100% IEPA sampling compliance. ¾ Continue increase of IEPA Public Water Supply Operator certifications. ¾ Remove radioactive sludge from the waste tank at the Well 11 Water Treatment Plant. ¾ Establish enhanced backup power capabilities at elevated tanks for extended power outages. ¾ Continue selective operation of ion exchange plants in winter season. ¾ Generate interactive hardness map to reflect changes during selective operation periods. ¾ Generate interactive hardness map to reflect addition of the Well 9/17 Water Treatment Plant. ¾ Create a spot inspection program to identify areas of cross-connection non-compliance.

145

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET WATER OPERATING AND MAINTENANCE NARRATIVE

Performance Indicators Estimated Projected 2009 2010 2011 2012 Number of IEPA Drinking Water Violations Per Year 0 0 0 0 Percentage of Uninterrupted Plant Operation 92 % 99 % 93 % 95 % Percentage of Staff Licensed with the IEPA 77 % 77 % 77 % 84 % Number of Water Services 9,385 9,399 9,403 9,414 Number of Fire Hydrants 1,320 1,340 1,356 1,370 Number of Valves 1,390 1,405 1,413 1,428 Number of J.U.L.I.E. Notices 1,640 1,632 1,696 1,805

Budget Highlights – Revenue Summary

Groundwater Permits A $25 annual renewal fee is required for each of the eight groundwater permits issued by the Village. This will result in a total of $200 in revenue for the 2012 fiscal year.

Water Sales Revenue A 5% water rate increase is proposed in fiscal year 2012. The rate increase is required to fund the multi-year water main replacement program scheduled for completion in fiscal year 2015. The total number of water accounts is projected to increase from 9,403 accounts to 9,414 accounts, a total increase of 11 accounts. Total water sales revenue is projected to be $3,488,560 in fiscal year 2012 based on the proposed 5% water rate increase and water consumption levels comparable to fiscal year 2011.

Water Meter Inspection Fees A $100 water meter inspection fee is charged for each new meter inspection or re-inspection conducted by the Water Division. This revenue source is projected to generate $1,000 in revenue during fiscal year 2012 based on an estimated ten water meter inspections.

Water Meter Fees This revenue source is projected to generate $8,160 (12 meters at $680 per meter) in revenue during fiscal year 2012 based on the projected number of new and replacement water meters to be issued during the fiscal year.

Water Turn on Fee Water turn on fees are charged to accounts that have had their water service disconnected for non-payment of charges or not allowing Water Division personnel access to the water meter. The fees are $50 for a first offense and $100 for a repeat offense that occurs within eight billing cycles of the first offense. A total of $16,000 is projected for the 2012 fiscal year based on the estimated number of disconnections that have historically occurred. Water Main Replacement Fee An annual water main replacement fee of $16 per water account was implemented in fiscal year 2002-2003. This fee helps to fund the multi-year water main replacement program scheduled for

146

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET WATER OPERATING AND MAINTENANCE NARRATIVE

completion in fiscal year 2015. The fee is collected by assessing a flat $4 fee to each residential bill issued on a quarterly basis, and assessing a flat $1.34 fee to each commercial bill issued on a monthly basis. The total revenue anticipated to be generated from this fee for the 2012 fiscal year is $151,150.

Water Construction Fee A $25 water construction fee is charged to each permit issued for new construction to account for any water used during the construction prior to the water meter being installed. A total of $220 is projected to be received in fiscal year 2012 based on the issuance of nine permits.

Interest Income All funds collected that are not immediately required for payment of operating expenses are invested according to the Village’s investment policy. Interest income is projected to be $9,050 in fiscal year 2012 based on current interest rates.

Miscellaneous Revenue This line item accounts for miscellaneous revenue such as returned check fees, the sale of scrap metal, fees for responding to water related incidents, etc. The projection for the 2012 fiscal year is $5,000 based on historical receipts.

Sale of Surplus Property This line item accounts for the sale of surplus equipment. In fiscal year 2012, a total of $10 is projected to be received from the sale of a Water Division snowblower.

Insurance/Restitutions This line item accounts for any proceeds received from insurance companies or other third parties in connection with accident damage to Village owned property (vehicles, fire hydrants, etc.). $1,000 is projected to be received in fiscal year 2012.

Penalties & Interest A 20% late payment penalty is assessed to all accounts that have not paid their water bills by the due date. Based on historical averages, $121,000 is projected in late payment penalty revenue for fiscal year 2012.

Interfund Transfers An interfund transfer of $134,500 from the Water Capital Improvement Fund is proposed for the 2012 fiscal year to pay for a portion of the multi-year water main replacement program scheduled for completion in fiscal year 2015. The Water Capital Improvement Fund will still have a sufficient fund balance to complete all of the projected expansion-related water system capital improvement projects.

147

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET WATER OPERATING AND MAINTENANCE NARRATIVE

Water O & M Revenues

$3,963,777 $4,000,000 $3,935,850 $3,900,000

$3,800,000 $3,710,859 $3,700,000 $3,637,665 $3,643,880 $3,600,000 $3,500,000 $3,400,000 FY08 FY09 FY10 FY11 (Estimate) FY12 (Projection)

Budget Highlights – Expenditure Summary

The 2012 portion of the Water Main Replacement Program will continue work in the eastern portion of the “Trees” subdivision. At the conclusion of Fiscal Year 2012, 100 percent of the troubled infrastructure in the “Trees” subdivision will be replaced, completing the original vision for improving this specific area and greatly reducing the possibility of extended service interruptions for local residents. Hydrant and valve maintenance programs will continue in 2012 which will identify troubled infrastructure for repair and maintain reliable operation of crucial components in the distribution system. By the conclusion of 2012, the Village will have a map indicating the precise location of every buffalo box in the system following the completion of the third and final phase of the Buffalo Box Identification Program. Two unique events of the semi annual Hydrant Flushing Program are anticipated for Fiscal Year 2012. As both annual events have been possible in recent years, the benefit on water quality and the speed at which sediment is removed from water main pipes has been evident.

Increased efficiency of energy consumption and salt usage will be pursued in 2012 with selective operation programs during winter months and analysis of regeneration procedures. Brine curve analysis and extended batch count testing will be performed to optimize the usage of brine as it relates to how long a vessel can effectively remove hardness before breakthrough occurs. Selective operation of ion exchange plants and the recent addition of the Well 9/17 Water Treatment Plant represent changes in the distribution system with respect to hardness. A new interactive hardness map will be created and made available to residents via the Village website to accurately reflect these changes. Following an extended power outage in July of 2010, the need for extended battery backup systems for SCADA and elevated tanks was identified. In Fiscal Year 2012, large, high capacity UPS systems will be installed to maintain crucial telemetry communications during extended power outages.

While making arrangements to have the regeneration sludge removed at the Well 11 Water Treatment Plant during Fiscal Year 2011, an issue with radium concentration was identified. Due to the level of radium present in the concentrated regeneration sludge, special handing, hauling, and storage is required in order to remove it from the holding tank. This removal procedure is planned for early 2012 by contract. The Water Operating and Maintenance Fund will also continue to support training, education, safety programs, and additional IEPA certifications in 2012.

148

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET WATER OPERATING AND MAINTENANCE NARRATIVE

41% Personal Services $1,727,290 0% Prof. Development $10,680 20% Contractual Services $835,940 8% Commodities $323,900 8% Debt Service $340,290 23% Capital Outlay $970,050 Total Budget $4,208,150

Personnel Summary*

2009 2010 2011 2012

Full Time Employees Public Works Director 0.50 0.50 0.50 0.50 Deputy Public Works Director 0.25 0.25 0.25 0.25 Contract Inspector 0.50 0.50 0.50 0.50 Water Superintendent 1 1 1 1 Water Operator II 1 1 1 1 Water Operator I 4 4 4 4 General Utility Worker II 2 2 2 2 General Utility Worker I 6 5 5 5 Administrative Assistant / PW 0.65 0.65 0.65 0.65 PW Secretary 0.75 0.75 0.75 0.75 Water Billing Clerk 1 1 1 1 Human Resources Coordinator 0.15 0.15 0.15 0.15 Accounts Payable Clerk 0.50 0.50 0.50 0.50 Accounts Receivable Clerk 0.50 0.50 0.50 0.50 Part Time Employees Part time Secretary (Finance) 1 1 1 1

*This summary lists the personnel that are budgeted under this fund. In addition, the portion of their salaries that are funded through the Water Operations and Maintenance Fund is also shown.

149

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET WATER OPERATING AND MAINTENANCE NARRATIVE

Capital Projects/Equipment

2012 Water Main Replacement Program $950,000 Snow Blower for Water Facilities $1,140 Honda Power Generator $2,110 VLOC Pro Utility Line Locator $3,780 Chemical Drum Scale $2,800 Chlorine Cylinder Scales $4,840 Chlorine Switchover Modules $1,100 Control Station for Wireless Remote to Repeater $1,100 Replacement Laptop Computers $3,180 Total 970,050

Water Operating & Maintenance Fund Balances

Water Operating and Maintenance Fund Balances

$1,892,712 $2,000,000

$1,500,000 $1,285,713 $1,129,263 $970,375 $1,000,000 $856,963

$500,000

$0 FY08 FY09 FY10 FY11 FY12

150 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

WATER OPERATING AND MAINTENANCE FUND

Revenues

520.31710 Groundwater Permit 200 200 200 200 200 200 520.33510 Water Sale Revenue 2,950,575 3,050,075 3,188,833 3,322,440 3,488,560 3,488,560 520.33520 Water Meter Inspection Fee 2,200 1,000 600 1,100 1,000 1,000 520.33530 Water Meter Fee 14,140 12,220 7,805 12,240 8,160 8,160 520.33550 Water Turn On Fee 17,275 22,700 22,075 15,900 16,000 16,000 520.33560 Water Main Replacement Fee 150,207 150,688 150,872 151,010 151,150 151,150 520.33570 Water Construction Fee 450 175 125 270 220 220 520.36050 Interest Income 103,794 53,082 19,265 12,070 9,050 9,050 520.39050 Miscellaneous Revenue 12,901 21,530 12,861 5,530 5,000 5,000 520.39200 Contributions 335,331 112,490 0000 520.39300 Sale of Surplus Property 7,866 (219,139) 4,461 200 10 10 520.39500 Insurance/Restitutions 2,352 91,110 1,492 2,030 1,000 1,000 520.39800 Penalties & Interest 113,568 114,352 120,283 120,890 121,000 121,000 520.39900 Interfund Transfers 0 553,294 108,794 0 134,500 134,500

Total Water O&M Fund Revenues 3,710,859 3,963,777 3,637,665 3,643,880 3,935,850 3,935,850

Expenditures Personal Services 520.41100 Salaries, Full-Time 984,545 1,048,954 1,051,614 1,042,580 1,086,000 1,086,000 520.41150 Personal Services Reimbursements (5,184) 23,108 32,348 32,230 26,380 26,380 520.41200 Salaries, Part-Time 32,317 28,983 24,216 30,550 32,510 32,510 520.41400 Salaries, Over-Time 58,710 44,088 33,115 32,410 35,000 35,000 520.42100 Employer Matching - FICA 82,096 85,551 83,312 85,010 89,210 89,210 520.42200 IMRF - Benefit 107,217 110,633 116,204 126,680 127,120 127,120 520.42350 Employer Portion-OPEB 0 1,126 1,145 1,200 1,200 1,200 520.42400 State Unemployment Insurance 4,691 00000 520.42500 Group Health & Life Insurance 170,104 186,440 221,218 244,920 268,170 268,170 520.42600 Workmen's Comp. Insurance 26,628 29,728 30,837 54,720 39,710 39,710 520.42700 Other Employee Benefits 22,022 28,052 16,503 14,880 21,990 21,990

Total Personal Services 1,483,145 1,586,663 1,610,511 1,665,180 1,727,290 1,727,290

Professional Development 520.45100 Conferences, Schools, & Training 2,606 2,668 1,901 3,660 4,520 4,520 520.45200 Dues 2,138 2,262 2,272 2,260 2,500 2,500 520.45300 Publications & Subscriptions 521 420 318 150 150 150 520.45400 Travel Exp., Miles,Lodg,Meals 2,921 2,151 1,015 2,270 3,510 3,510

Total Professional Development 8,185 7,501 5,506 8,340 10,680 10,680

Contractual Services 520.51100 Maintenance, Grounds 19,095 11,262 11,478 11,750 14,470 14,470 520.51200 Maintenance, Buildings 23,076 21,672 18,564 14,010 10,950 10,950 520.51300 Maintenance, Infrastructure 66,212 110,156 29,031 143,050 96,020 96,020 520.51400 Maintenance, Machinery/Equip 22,629 18,630 20,168 17,540 16,090 16,090 520.51500 Maintenance, Computers 27,147 29,175 24,510 20,670 22,450 22,450 520.51600 Maintenance, Vehicles 7,273 3,942 7,017 3,650 3,650 3,650 520.52100 Accounting Services 7,014 7,440 7,440 7,780 8,090 8,090 520.52200 Engineering Services 134,643 125,685 55,169 163,360 133,000 133,000 520.52300 Legal Services 10,618 23,412 35,922 38,830 14,500 14,500 520.52400 Medical Services 1,521 955 970 660 660 660 520.52600 Janitorial Services 3,445 4,511 4,511 4,520 4,750 4,750 520.52700 Lab Testing Services 43,788 18,890 11,088 13,020 15,860 15,860 520.52800 Other Professional Services 30,566 34,323 28,934 34,570 33,020 33,020 520.53100 Electric Services 259,503 234,595 271,429 290,010 300,000 300,000 520.53200 Natural Gas Services 33,999 14,754 14,124 16,640 16,640 16,640 520.53300 Sewer Services 46,011 49,514 48,914 46,960 48,470 48,470 520.53400 Telephone 54,578 38,809 33,433 36,280 40,860 40,860 520.54100 Postage 19,826 20,660 21,072 20,320 21,560 21,560 520.54200 Publishing & Advertising 1,814 363 302 440 300 300

151 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

520.54300 Printing & Copying 2,450 2,420 2,269 1,960 1,960 1,960 520.54400 Rental Contracts 2,453 1,991 1,885 3,310 2,950 2,950 520.54450 Equipment Service Reimbursements (9,525) 1,137 (3,643) 210 1,040 1,040 520.54500 Liability Insurance 32,372 34,779 36,115 37,420 27,400 27,400 520.54600 JULIE System, Operating Costs 1,089 1,127 982 1,180 1,250 1,250 520.59900 Miscellaneous 255 00000

Total Contractual Services 841,854 810,201 681,686 928,140 835,940 835,940

Commodities 520.61100 Maint. Supply & Parts, Grounds 3,446 3,351 2,279 3,430 3,800 3,800 520.61200 Maint. Supply & Parts, Buildings 2,389 4,411 4,970 9,370 4,710 4,710 520.61300 Maint. Supply & Parts, Infrastruct. 39,252 20,064 24,357 28,940 28,940 28,940 520.61350 Maint. Supply & Parts, Meters 0 0 18,925 25,860 25,860 25,860 520.61400 Maint. Supply & Parts, Equip 2,026 1,599 3,758 1,820 2,000 2,000 520.61500 Maint. Supply & Parts, Computers 180 438 0 2,910 120 120 520.61600 Maint. Supply & Parts, Vehicles 8,953 12,757 9,889 14,070 14,070 14,070 520.62100 Office Supplies 2,239 1,571 2,404 1,950 1,950 1,950 520.62200 Operating Supplies 21,721 21,465 20,500 18,650 18,650 18,650 520.62210 Ice/Snow Control Supplies 1,100 775 360 300 300 300 520.62220 Water System Chemicals 225,290 145,784 168,095 152,000 165,350 165,350 520.62300 Fuel & Petroleum Supplies 48,349 32,854 32,949 48,400 52,490 52,490 520.62400 Uniforms & Protective Clothing 6,002 5,252 4,880 5,060 5,660 5,660

Total Commodities 360,948 250,320 293,366 312,760 323,900 323,900

Debt Service 520.71000 Principal Payment 245,000 255,000 270,000 280,000 290,000 290,000 520.72000 Interest Payments 85,117 75,914 66,329 56,630 46,130 46,130 520.74000 Amortization Costs 4,159 4,159 4,159 4,160 4,160 4,160 520.75000 Arbitrage Rebate Payments 0 0 0 41,410 0 0

Total Debt Service 334,276 335,073 340,488 382,200 340,290 340,290

Capital Outlay 520.81320 Wells & Storage 274,500 5,232 4,605 0 0 0 520.81330 Meters 26,325 21,303 0000 520.81340 Main Replacement 521,024 1,869,823 664,468 485,230 950,000 950,000 520.81400 Equipment 15,192 12,953 11,625 18,480 16,870 16,870 520.81500 Computer Hardware 493 1,251 0 0 3,180 3,180 520.81550 Computer Software 0 1,579 0000 520.81600 Vehicles 57,454 00000 520.82500 Depreciation 1,378,706 1,399,293 1,432,243 0 0 0

Total Capital Outlay 2,273,693 3,311,434 2,112,940 503,710 970,050 970,050

Total Water O&M Expenditures 5,302,101 6,301,191 5,044,497 3,800,330 4,208,150 4,208,150

Excess (Deficiency) of Revenues over Expenditures (1,591,242) (2,337,415) (1,406,831) (156,450) (272,300) (272,300)

Available Fund Balance at start of Fiscal Year 2,432,919 1,892,712 970,375 1,285,713 1,129,263 1,129,263

Net Decrease (Increase) in Assets 1,051,036 1,415,077 1,722,169 0 0 0

Available Fund Balance at end of Fiscal Year 1,892,712 970,375 1,285,713 1,129,263 856,963 856,963

152

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET AIRPORT CAPITAL IMPROVEMENT FUND NARRATIVE

The Airport Capital Improvement Fund focuses on improvements to the Airport infrastructure. It is funded through an interfund transfer from the Municipal Airport Fund as well as federal and state grants. The Airport Capital Improvement Fund is not supported with local taxes. Revenues generated by the airport provide the local match for funding of capital improvements. Improving safety of operations at the Airport is the overarching goal of this work.

Program Review

Construction of the new parallel taxiway was substantially completed in 2011. The new taxiway meets current FAA requirements for separation from the airport runway. The new taxiway is 140 feet from the runway, measured centerline to centerline. Also the new taxiway is wider, measuring at 35 feet from edge to edge.

A contract for construction of the new apron had a bid opening at IDOT on June 17, 2011. This is the first phase of construction for the new apron and includes earthwork and drainage. Award of the construction contract was not executed in 2011 by IDOT. The FAA did not release funds necessary for award of this contract. At this time we anticipate that IDOT will move forward with the apron work in 2012.

Final design to extend the perimeter fencing at the airport started in August, 2011. Construction of the perimeter fencing is anticipated to start in the spring of 2012. The proposed fencing is located at the east end of the airport. The fencing will help mitigate wildlife encroachments into the airport, helping to enhance the safety, and will also enhance airport security.

With assistance from the USDA, the Village continues with a wildlife hazard assessment to allow a better understanding of the wildlife hazards on the airport and how they can be better managed. A final report is anticipated in April, 2012.

A new entrance road into the airport is a component of the overall improvements proposed at the airport. Right of way acquisition is necessary for the new entrance road. The Village is working with IDOT to complete the necessary acquisition. The goal is to complete the right of way acquisition in 2012.

Goals and Objectives

¾ Complete construction of the new airport apron. ¾ Complete construction of the perimeter fencing. ¾ Acquire additional properties for the new entrance roadway. ¾ Complete the airport wildlife hazard assessment. ¾ Continue solicitation of funds from the state and federal governments for remainder of Airport Safety Improvement Program.

153

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET AIRPORT CAPITAL IMPROVEMENT FUND NARRATIVE

Performance Indicators Estimated Projected 2009 2010 2011 2012

Projects completed within budget 100% 100% 100% 100 % (1) (1) (1) (4)

Budget Highlights – Revenue Summary

Grants Grant revenue is projected to be $888,170 for fiscal year 2012. Federal (95%) and state (2.5%) grants projected to be received as part of the Transportation Improvement Proposals (TIPs) are as follows:

¾ Airport Wildlife Hazard Assessment $ 12,770 ¾ Construct Parallel Taxiway A, Stage 2, Paving $ 18,620 ¾ Extend Perimeter Fencing $336,880 ¾ Land Acquisition for New Entrance Road $519,900

Interfund Transfers A $22,780 interfund transfer from the Airport Operating and Maintenance Fund is proposed for the 2012 fiscal year to provide funding for the Village’s portion (2.5%) of the capital improvement projects at the airport.

Airport Capital Improvement Fund Revenues

$10,000,000 $7,822,624 $8,000,000 $6,000,000 $3,692,468 $4,000,000 $910,950 $2,000,000 $245,030 $456,640 $0 FY08 FY09 FY10 FY11 (Estimate) FY12 (Projection)

Budget Highlights – Expenditure Summary

Extending perimeter fencing and the purchase of property for the new airport entrance are the major items in the Airport Capital Improvement budget this year. Extending the perimeter fencing will be completed in one construction contract with work anticipated in the spring of 2012 with completion by the summer. Successful acquisition of necessary right of way for the new airport entrance road is targeted for 2012.

154

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET AIRPORT CAPITAL IMPROVEMENT FUND NARRATIVE

0% Personal Services $0 0% Prof. Development $0 15% Contractual Services $137,220 0% Commodities $0 85% Capital Outlay $773,730 Total Budget $910,950

Capital Projects / Equipment

Extend Perimeter Fencing $278,730 Purchase Property for Airport Entrance Road $495,000 Total $773,730

Airport Capital Improvement Fund Balances

0 000 $0 FY08 FY09 FY10 FY11 FY12 -$2,000

-$4,000

-$6,000

-$8,000

-$10,000 8,750-

155 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

AIRPORT CAPITAL IMPROVEMENT FUND

Revenues

525.32050 Grants 67,926 7,797,589 3,565,910 445,220 888,170 888,170 525.32800 Grant Match Reimbursement 0 0 3,468 0 0 0 525.39900 Interfund Transfers 177,104 25,035 123,090 11,420 22,780 22,780

Total Airport Cap. Improvement Fund Revenues 245,030 7,822,624 3,692,468 456,640 910,950 910,950

Expenditures Contractual Services 525.52200 Engineering Services 23,697 472,500 425,318 397,230 103,100 103,100 525.52300 Legal Services 80,734 22,505 94,227 8,470 11,530 11,530 525.52800 Other Professional Services 43,695 3,270 11,598 21,100 22,590 22,590 525.54300 Printing & Copying 2,312 3720000 525.59900 Miscellaneous Expense 0 500 500000

Total Contractual Services 150,439 499,147 531,643 426,800 137,220 137,220

Capital Outlay 525.81100 Land 57,508 5,594,528 302,500 0 495,000 495,000 525.81250 Improvements, Other 45,832 1,720,200 2,823,200 29,840 278,730 278,730

Total Capital Outlay 103,341 7,314,728 3,125,700 29,840 773,730 773,730

Interfund Transfers 525.91000 Interfund Transfers 0 0 302,500 0 0 0

Total Interfund Transfers 0 0 302,500 0 0 0

Total Airport Cap. Impr. Fund Expenditures 253,779 7,813,875 3,959,843 456,640 910,950 910,950

Excess (Deficiency) of Revenues over Expenditures (8,750) 8,749 (267,375) 0 0 0

Available Fund Balance at start of Fiscal Year 0 (8,750) 0000

Net Decrease (Increase) in Assets 0 1 267,375 0 0 0

Available Fund Balance at end of Fiscal Year (8,750) 00000

156

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET AIRPORT OPERATING AND MAINTENANCE FUND NARRATIVE

The Village of Lake in the Hills Public Works Department oversees the operation of the Lake in the Hills Municipal Airport, which is a designated FAA reliever airport for Chicago O’Hare Airport. The Airport has 91 based aircraft and approximately 34,000 annual operations. In overseeing the Airport, the Public Works Department is responsible for installation and maintenance of the airport infrastructure including pavement maintenance, ice and snow control, grass mowing, signage, and maintenance on Village-owned buildings as well as the airport courtesy vehicle.

Program Review

FY 11 was another extremely busy year at the Lake in the Hills Airport with the ongoing Airport Improvement Project. With the departure of the previous Airport Manager, Mr. Manny Gomez was hired. During the first few months on duty, he completed the Airport Safety and Operations Specialist School. Construction of the new parallel taxiway was substantially completed in 2011 bringing yet another item at the airport to FAA compliance and enhancing safety.

The Airport Manager also attended the annual TIPS meeting in Springfield with the IDOT Division of Aeronautics. This meeting sets out the funding requests for the upcoming year and allows the Airport to more accurately set out the timeline for the Airport improvement projects.

100LL fuel sales have shown a decrease over the past year. We estimate a total flowage number 97,122 gals (19% decrease). We believe this is part due to the state of the economy which results in an overall downturn in flying. The Village is regularly near the lowest in fuel cost in northeastern Illinois. We anticipate the 100 LL flowage to remain at this level through FY12. Fuel pricing updates are available on the Airport web page and by directed e-mails whenever there is a change in price to 100 LL.

An electronic newsletter continues to update airport users of construction projects on an ongoing basis.

Goals and Objectives

¾ Continue staff training on airport-related issues. ¾ Maintain and operate the airport to provide a safe environment for aviation activities. ¾ Continue looking at ways to improve efficiency and increase revenue ¾ Develop plan for new apron area leases

157

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET AIRPORT OPERATING AND MAINTENANCE FUND NARRATIVE

Performance Indicators

Estimated Projected 2009 2010 2011 2012 Public Events Held 6 5 6 7 Commercial Activity Agreements 6 6 6 6 Percentage of T-hangar occupancy 80 % 70 % 50 % 50 % 100 LL Fuel Flowage 140,813 119,567 97,122 97,500

Budget Highlights – Revenue Summary

Sales/Commission Fees This line item accounts for revenue received from the sale of aviation fuel based on a stair- stepped flowage fee. New for year 2012 is an electrical service fee applied to private hangars that currently do not have a separate, metered service. For the most common service of 2.20 kwh private hangars would be charged $23 per month for electricity. Hangar owners supplying their own electricity would not be charged the fee but would also no longer receive the $15 per month credit. It is anticipated that $46,120 in sales/commission fees will be collected in fiscal year 2012 based on current sales projections. $20,760 in sales/commissions fees are attributed to the new electrical service fee.

Commercial Activity Fees This line item includes commercial services fees paid by businesses operating from the airport and revenue from through-the-fence agreements. $32,060 is projected as revenue for fiscal year 2012 broken down as follows: • Flight Instructors $ 270 • Commercial Activity Fees $13,090 • Athans Through-the-Fence Agreement $ 5,650 • Plote Through-the-Fence Agreement $13,050

Interest Income All funds collected that are not immediately required for payment of operating expenditures are invested according to the Village’s investment policy. Interest income is projected to be $6,250 in fiscal year 2012 based on current interest rates.

Miscellaneous Revenue This line item accounts for miscellaneous revenue such as returned check fees and fees charged for responding to incidents at the airport. The projection for the 2012 fiscal year is $1,000 based on historical receipts

158

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET AIRPORT OPERATING AND MAINTENANCE FUND NARRATIVE

Rental Income This line item accounts for revenues generated from ground and facility leases at the airport. Following is a summary of the projected revenue of $303,280 for fiscal year 2012:

¾ T-Hangar Rentals (10 @ $378.83 / month) $ 45,459 ¾ Ground Lease Size A Hangars (2 @ $180.59 / month) $ 4,334 ¾ Ground Lease Size B Hangars (54 @ $187.86 / month) $121,733 ¾ Ground Lease Size C Hangars (2 @ $202.40 / month) $ 4,857 ¾ Ground Lease Square Hangars ($7,655.75 / month) $ 91,869 ¾ Maintenance Hangar /Office Rental ($2,884.93 / month) $ 34,619 ¾ Miscellaneous Rentals $ 409

Penalties & Interest $1,200 is projected to be received in fiscal year 2012 for penalties charged for late payments in connection with ground leases, facility leases, and fuel flowage fee payments based on historical averages.

Municipal Airport Fund Revenues

$800,000 $678,342 $600,000 $396,351 $391,356 $357,170 $389,910 $400,000 $200,000 $0 FY08 FY09 FY10 FY11 (Estimate) FY12 (Projection)

Budget Highlights – Expenditure Summary

No major changes to current operations are planned. Pavement in parking lot and terminal areas is in need of repair. Asphalt patching using in-house resources is planned to address deteriorated pavements. In additional the apron area will receive a seal coat to address current conditions and extend pavement life. Options to address this are being explored. In an effort to contain costs all maintenance work is performed in-house when possible.

45% Personal Services $171,770 0% Prof. Development $740 26% Contractual Services $99,150 6% Commodities $23,740 17% Debt Service $64,310 0% Capital Outlay $0 6% Interfund Transfer $22,780 Total Budget $382,490

159

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET AIRPORT OPERATING AND MAINTENANCE FUND NARRATIVE

Personnel Summary

2009 2010 2011 2012 Full Time Employees Deputy Director of PW 0.50 0.50 0.50 0.50 Secretary 0.50 0.50 0.50 0.50

Capital Projects/Equipment

No capital items are planned for in FY12.

Airport Operating and Maintenance Fund Balances

Municipal Airport Fund Balances

$500,000 428,305

$400,000 346,875 278,951 286,421 293,841 $300,000

$200,000

$100,000

$0 FY08 FY09 FY10 FY11 FY12

160 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

AIRPORT OPERATING AND MAINTENANCE FUND

Revenues

530.32050 Grants 0 0 0 1,580 0 0 530.33310 Sales/Commission Fees 33,274 25,851 24,989 25,370 46,120 46,120 530.33330 Commercial Activity Fees 15,209 14,885 15,824 20,450 32,060 32,060 530.36050 Interest Income 22,359 9,149 5,800 7,500 6,250 6,250 530.39050 Miscellaneous Revenue 3,196 1,367 2,133 1,420 1,000 1,000 530.39100 Rental Income 321,530 337,077 322,400 298,850 303,280 303,280 530.39300 Sale of Surplus Property 0 2630000 530.39500 Insurance/Restitutions 0 283 1,282 0 0 0 530.39800 Penalties & Interest 784 2,481 3,413 2,000 1,200 1,200 530.39900 Interfund Transfers 0 0 302,500 0 0 0

Total Airport O&M Fund Revenues 396,351 391,356 678,342 357,170 389,910 389,910

Expenditures Personal Services 530.41100 Salaries, Full-Time 75,752 78,302 62,631 60,820 73,540 73,540 530.41150 Personal Services Reimbursements 63,091 53,642 55,796 56,590 67,220 67,220 530.41400 Salaries, Over-time 2,610 1,650 1,050 1,050 1,260 1,260 530.42100 Employer Portion FICA 5,845 6,002 5,089 4,810 5,910 5,910 530.42200 IMRF - Benefit 7,649 7,878 7,343 7,110 8,360 8,360 530.42330 Employer Portion OPEB 0 68 69 70 100 100 530.42500 Employee Health Insurance 10,125 10,852 8,653 9,360 12,660 12,660 530.42600 Workmen's Compensation Ins. 1,174 217 206 340 290 290 530.42700 Other Employee Benefits 1,929 1,810 5,939 970 2,430 2,430

Total Personal Services 168,176 160,421 146,778 141,120 171,770 171,770

Professional Development 530.45100 Conferences, Schools, & Training 275 350 243 450 80 80 530.45200 Dues 425 425 475 480 480 480 530.45300 Publications & Subscriptions 144 144 48000 530.45400 Travel Exp., Miles,Lodg,Meals 853 508 80 880 180 180

Total Professional Development 1,697 1,427 845 1,810 740 740

Contractual Services 530.51100 Maintenance, Grounds 26,993 22,135 25,880 27,610 0 0 530.51200 Maintenance, Buildings 2,882 3,059 5,932 2,910 2,590 2,590 530.51300 Maintenance, Infrastructure 7,280 4,000 1,680 0 0 0 530.51400 Maintenance, Machinery/Equip 50 1,018 162 3,390 910 910 530.51500 Maintenance, Computers 2,514 2,161 3,343 2,250 2,410 2,410 530.51600 Maintenance, Vehicles 269 0 0 0 250 250 530.52100 Accounting Services 1,754 1,860 1,860 1,950 2,030 2,030 530.52200 Engineering Services 0 3,171 0 0 500 500 530.52300 Legal Services 5,775 24,325 6,140 5,000 5,000 5,000 530.52400 Medical Services 0 0 36 40 0 0 530.52600 Janitorial Services 539 707 707 710 750 750 530.52800 Other Professional Services 482 1,784 250 500 550 550 530.53100 Electrical Services 31,025 31,323 26,029 25,810 26,000 26,000 530.53200 Natural Gas Services 2,701 1,955 1,912 1,610 1,610 1,610 530.53400 Telephone 1,519 1,351 1,099 890 900 900 530.54100 Postage 822 808 814 950 990 990 530.54200 Publishing and Advertising 0 236 201 470 0 0 530.54300 Printing & Copying 121 135 50 60 100 100 530.54400 Rental Contracts 660 662 811 780 820 820 530.54450 Equipment Service Reimbursements 22,698 20,179 19,394 26,430 46,430 46,430 530.54500 Insurance 7,978 8,053 7,535 7,130 7,310 7,310 530.59900 Miscellaneous 500 00000

Total Contractual Services 116,561 128,923 103,834 108,490 99,150 99,150

161 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

Commodities 530.61100 Maint. Supply & Parts, Grounds 228 0 0 0 1,750 1,750 530.61200 Maint. Supply & Parts, Buildings 1,162 907 1,960 730 900 900 530.61300 Maint. Supply & Parts, Infrastruct. 1,839 496 180 4,810 4,400 4,400 530.61400 Maint. Supply & Parts, Equip. 2,071 2,212 2,602 2,680 1,720 1,720 530.61500 Maint. Supply & Parts, Computers 0 0 758000 530.61600 Maint., Supply & Parts & Vehicles 615 118 183 40 250 250 530.62100 Office Supplies 495 448 401 170 180 180 530.62200 Operating Supplies 2,328 2,792 2,699 2,900 2,900 2,900 530.62210 Ice & Snow Control Supplies 25,744 8,787 5,590 9,280 11,070 11,070 530.62300 Fuel and Petroleum Supplies 212 165 225 370 260 260 530.62400 Uniforms & Protective Clothing 286 292 343 310 310 310

Total Commodities 34,980 16,217 14,939 21,290 23,740 23,740

Debt Service 530.71000 Principal Payment 35,000 40,000 40,000 40,000 40,000 40,000 530.72000 Interest Payments 28,011 26,833 25,578 24,370 23,110 23,110 530.74000 Amortization Costs 1,192 1,192 1,192 1,200 1,200 1,200

Total Debt Service 64,203 68,025 66,769 65,570 64,310 64,310

Capital Outlay 530.81500 Computer Hardware 714 3120000 530.81550 Computer Software 0 2530000 530.82300 Depr. Exp. -PW & Transp. 118,097 117,897 118,294 0 0 0

Total Capital Outlay 118,810 118,462 118,294 0 0 0

Interfund Transfers 530.91000 Interfund Transfers 177,105 25,035 123,090 11,420 22,780 22,780

Total Interfund Transfers 177,105 25,035 123,090 11,420 22,780 22,780

Total Airport O&M Fund Expenditures 681,532 518,510 574,550 349,700 382,490 382,490

Excess (Deficiency) of Revenues over Expend. (285,181) (127,154) 103,792 7,470 7,420 7,420

Available Fund Balance at start of Fiscal Year 589,076 428,305 346,875 278,951 286,421 286,421

Net Decrease (Increase) in Assets 124,410 45,724 (171,716) 0 0 0

Available Fund Balance at end of Fiscal Year 428,305 346,875 278,951 286,421 293,841 293,841

162

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET HEALTH INSURANCE FUND NARRATIVE

The Health Insurance Fund is an internal service fund that was established in FY08 in conjunction with the implementation of the Village’s partially self-funded medical insurance plan. In FY09, the Village added a partially self-funded dental plan which is also accounted for in the Health Insurance Fund. Since the pooling of health care risks will be shared by the three main operating funds of the Village (General Fund, Water Operating & Maintenance Fund, and Airport Operating & Maintenance Fund), the Health Insurance Fund will be used to account for the payments made to health care providers in connection with both the partially self-funded medical plan and the partially self-funded dental plan.

Budget Highlights – Revenue Summary

Employer contributions of $321,500 are the main revenue source of this fund which is an internal service fund that was established in the 2008 fiscal year in conjunction with the implementation of the Village’s partially self-funded health insurance plan. Health insurance premium savings were realized when the Village converted to a partially self-funded health insurance plan for its employee medical and dental insurance plans, and the majority of the savings are deposited into the Health Insurance Fund as employer contributions to fund the payment of health insurance claims and build reserves for future claims.

Health Insurance Fund Revenues

$350,000 $325,000 $276,257 $277,680 $300,000 $270,005 $250,000 $200,000 $134,813 $150,000 $100,000 $50,000 $0 FY08 FY09 FY10 FY11 (Estimate) FY12 (Projection)

Budget Highlights – Expenditure Summary 0% Personal Services $0 0% Prof. Development $0 100% Contractual Services $299,740 0% Commodities $0 0% Capital Outlay $0 Total Budget $299,740

163

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET HEALTH INSURANCE FUND NARRATIVE

Health Insurance Fund Balances

$200,000 $175,667 $149,217 $150,407 $150,000 $112,369 $100,000 $51,746 $50,000

$0 FY08 FY09 FY10 FY11 FY12

164 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

HEALTH INSURANCE FUND

Revenues

610.36050 Interest Income 911 2,258 5,628 4,590 3,500 3,500 610.39590 Employer Contributions 133,903 273,999 264,377 273,090 321,500 321,500

Total Health Insurance Fund Revenues 134,813 276,257 270,005 277,680 325,000 325,000

Expenditures Contractual Services 610.52400 Medical Services 77,880 153,873 180,029 195,390 214,930 214,930 610.52450 Dental Services 0 34,661 65,476 74,100 77,810 77,810 610.52800 Other Professional Services 5,187 7,717 7,037 7,000 7,000 7,000

Total Contractual Services 83,067 196,250 252,542 276,490 299,740 299,740

Total Health Insurance Fund Expenditures 83,067 196,250 252,542 276,490 299,740 299,740

Excess (Deficiency) of Revenues over Expenditures 51,746 80,008 17,463 1,190 25,260 25,260

Available Fund Balance at start of Fiscal Year 0 51,746 112,369 149,217 150,407 150,407

Net Decrease (Increase) in Assets 0 (19,385) 19,385 0 0 0

Available Fund Balance at end of Fiscal Year 51,746 112,369 149,217 150,407 175,667 175,667

165

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET POLICE PENSION FUND NARRATIVE

The Police Pension Fund was established in 1975 to provide pension benefits for Police Officers in the Village. The principal revenue sources for this fund are property tax transfers from the General Fund, employee contributions via payroll deductions of 9.91% of base salary, and earnings on investments.

Since the expenditure of the funds in the Police Pension Fund is under the control of the Lake in the Hills Police Pension Board which approves an annual budget for that purpose, a separate budget is no longer being proposed for adoption by the Village of Lake in the Hills. This fund is shown for historical purposes and will be eliminated from the budget spreadsheets in 2013.

Budget Highlights – Revenue Summary

Police Pension Fund Revenues

$0 $0 $0 $0 FY08 FY09 FY10 FY11 (Estimate) FY12 (Projection) -$20,000 $0

-$40,000

-$60,000 $62,128- -$80,000

Budget Highlights – Expenditure Summary

Personal Services $0

Prof. Development $0 Contractual Services $0 Commodities $0

Capital Outlay $0 Total Budget $0

Police Pension Fund Balances

$1 $1 $1 $0 $0 $0 $0 $0 $0 $0 $0 FY08 FY09 FY10 FY11 FY12

166 Village of Lake in the Hills FY2012 Annual Budget

2008 2009 2010 2011 2012 2012 Actual Actual Actual Estimate Adm. Rcm. Brd. Appvd.

POLICE PENSION FUND

Revenues

760.36100 Interest Income - Money Market 1,167 00000 760.36120 Interest Income - Smith Barney 5,909 00000 760.36310 Interest Income - IPTIP 2,244 00000 760.36400 Interest Income - U.S. Treasury Invest. 45,313 00000 760.36500 Interest Income - GNMA Investments 342,073 00000 760.36600 Interest Income - Property Taxes 68 00000 760.37130 Net Change in Value - Dodge & Cox (341,929) 00000 760.37140 Net Change in Value - American Funds (347,244) 00000 760.37145 Net Change in Value - Gateway Funds (130,950) 00000 760.37150 Net Change in Value - Harbor Funds (253,251) 00000 760.37155 Net Change in Value - Parnassus (124,404) 00000 760.37160 Net Change in Value - Royce Funds (47,711) 00000 760.37165 Net Change in Value - Vanguard (194,283) 00000 760.37170 Net Change in Value - EuroPacific (219,675) 00000 760.37200 Unrealized Gain/Loss 202,972 00000 760.37300 Realized Gain/Loss 4,042 00000 760.39580 Employee Contribution 311,890 00000 760.39585 Pension Portability Revenue 8,037 00000 760.39590 Employer Contributions 673,604 00000

Total Police Pension Fund Revenues (62,128) 00000

Expenditures Personal Services 760.41900 Pensioner's Payments 358,671 00000

Total Personal Services 358,671 00000

Professional Development 760.45100 Conferences, Schools, & Training 550 00000 760.45200 Dues 688 00000 760.45400 Travel Exp., Mileage, Meals 34 00000

Total Professional Development 1,272 00000

Contractual Services 760.52100 Accounting Services 2,925 00000 760.52300 Legal Services 4,887 00000 760.52400 Medical Services 8,234 00000 760.52750 Investment Services 35,811 00000 760.52800 Other Professional Services 3,505 00000 760.54100 Postage 56 00000 760.59200 Service Credit Transfer Payments 87,307 00000

Total Contractual Services 142,724 00000

Commodities 760.62100 Office Supplies 113 00000

Total Commodities 113 00000

Total Police Pension Fund Expenditures 502,780 00000

Excess (Deficiency) of Revenues over Expenditures (564,908) 00000

Available Fund Balance at start of Fiscal Year 11,752,368 00000

Net Decrease (Increase) in Assets (11,187,460) 00000

Available Fund Balance at end of Fiscal Year 0 00000

167 The reﬂection oﬀ the retention pond at Sunset Park is proof that the park is aptly named.

168

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET APPENDIX A - NUTS AND BOLTS OF BUDGETING

Budget Process

All departments of the Village submit requests for appropriation to the Village Administrator. The budget is prepared by fund, function and activity and includes historical information, current year estimates, requested appropriations for the next fiscal year and final Board approved budget figures.

A proposed budget is presented to the Village Board of Trustees for review. The Board of Trustees holds public hearings and may add to, subtract from or change appropriations.

The Village Board must approve transfers of budgeted amounts between departments within any fund as well as any revisions that alter the total expenditures of any fund. Expenditures may not legally exceed budgeted appropriations at the fund level.

Budget Preparation

As mentioned previously, all departments of the Village submit requests for appropriation to the Village Administrator. The Village Administrator’s Office and the Finance Department review the initial requests. During informal meetings with individual departments, the Administrator, Assistant Village Administrator and Finance Director recommend cuts and/or additions to the budget requests. A proposed budget is then printed and presented to the Board of Trustees for review during formal budget hearings. During these hearings, the Board may add to, subtract from or change any requested appropriations. After formal adoption of the budget, any revisions made to the budget document during the public hearing stage are incorporated in the budget. The budget is then printed and is used as an operational tool during the fiscal year. During the year, changes to the budget may only be made through the budget amendment process and with Village Board approval.

Budget preparation serves as an evaluation period for departments. It provides department heads an opportunity to review their programs and operations. It is incumbent upon department heads to critically review existing methods, procedures and overall effectiveness of the various activities under their jurisdiction. By doing this, they can determine improvements that are needed to bring about a more efficient and economical operation. Innovative ideas should be recommended to the Village Administrator for consideration.

169

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET APPENDIX B - BUDGET CALENDAR

Date Event

08/10/11 Budget kick-off meeting and workshop for Department Heads and support staff. Worksheets and templates for the budget available to departments to begin preparation of budget requests. Community Development Department to provide building projections.

08/19/11 Budgetary requests involving capital outlay items impacting another department’s/division’s budget must be submitted.

08/26/11 Budgetary requests involving operating/maintenance items impacting another department’s/division’s budget must be submitted. Fuel cost and vehicle maintenance estimates are provided. The Finance Department provides estimated personnel figures along with the personnel distribution percentages.

09/09/11 Budget requests (revenues and expenditures) and five-year capital expenditure analysis due from departments to the Assistant Village Administrator.

09/12/11 to 09/16/11 Compilation of initial budget requests and estimates. Draft document submitted to the Village Administrator.

09/19/11 to 10/14/11 Village Administrator conducts department budget request meetings and develops proposed budget document.

10/14/11 Budget narratives due from departments to the Assistant Village Administrator.

10/24/11 to 11/04/11 Compilation and printing of proposed budget and supporting documentation.

11/08/11 Distribute proposed budget to the Board of Trustees

11/10/11 Announcement of Budget Hearing at regular Board of Trustees meeting.

170

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET APPENDIX B - BUDGET CALENDAR

Date Event

11/11/11 Proposed budget available for public inspection.

11/15/11 Budget Workshop #1 - 7:00 p.m. at Village Hall

11/17/11 Budget Workshop #2 - 7:00 p.m. at Village Hall

11/25/11 Publish Notice of Public Hearing to be held at 7:00 p.m. at Village Hall on December 6, 2011.

12/06/11 Budget Hearing - 7:00 p.m. at Village Hall.

12/08/11 Passage of Budget at regular Board of Trustees Meeting.

03/01/12 Final Budget submitted to the GFOA for Distinguished Budget Award

171

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET APPENDIX C - FINANCIAL POLICIES

The Village’s financial policies, compiled below, set forth the basic framework for the overall fiscal management of the Village. These policies serve to assist with the decision-making process and provide guidelines for evaluating both current activities and future programs.

Budget Policies

1. The Village has established an operating reserve which shall consist of 25% of the operating expenditures during the prior twelve-month period. The reserve shall be the minimum cash and cash equivalent unencumbered monies kept available to the Village at all times and shall be reflected in the “Fund Balance or Equity” portion of the balance sheet in the Village’s financial reports.

2. The Village shall continue preparing five-year capital improvement plans and five- year staffing plans in order to maintain the Village’s capital equipment and infrastructure, and maintain or enhance current levels of service.

3. The Village will attempt to maintain a diversified and stable revenue system to shelter it from short-term fluctuations in any one revenue source.

4. The Village will review all fees and charges on an annual basis.

5. From time to time, by two-thirds vote of the Board of Trustees, the corporate authorities may delegate to heads of municipal departments and/or the Budget Officer, the power to delete, add to, change, or create subclasses within object classes budgeted previously to any department, subject to such limitations or requirements as the corporate authorities may specify. By a vote of two-thirds of the members of the corporate authorities then holding office, the annual budget for the Village may be revised by deleting, adding to, changing, or creating subclasses within object classes and object classes themselves. No revision of the budget shall be made increasing the budget in the event funds are not available to effectuate the purpose of the revision.

6. The annual budget may contain money set aside for contingency purposes not to exceed 10% of the total budget, less the amount set aside for contingency purposes, which monies may be expended for contingencies upon a majority vote of the corporate authorities then holding office.

7. Budgets are prepared on the cash basis of accounting whereby only transactions involving the inflow or outflow of cash are budgeted for. Non-cash transactions such as depreciation expense or revenue accruals are not reflected in the budget. Budgets are adopted and integrated into the accounting system as a control device during the year for the general, special revenue, debt service, capital projects, and enterprise funds. All budgets lapse at the end of the fiscal year for which the budget is adopted.

8. A balanced budget is presented when revenues meet or exceed expenditures or operating expenses and/or a fund balance is present to mitigate large non-recurring capital expenses.

172

VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET APPENDIX C - FINANCIAL POLICIES

Cash Management/Investment Policies

1. Investments of the Village shall be undertaken in a manner that seeks to ensure the preservation of capital. Each investment transaction shall seek to first ensure that capital losses are avoided, whether they are from securities defaults or erosion of market value. State statutes authorize the Village to make deposits/investments in commercial banks, savings and loan institutions, obligations of the U.S. Treasury and U.S. Agencies, obligations of states and their political subdivisions, credit union shares, repurchase agreements, commercial paper rated within the three highest classifications by at least two standard rating agencies, and the Illinois Funds which is an investment pool administered by the Treasurer of the State of Illinois. Assets of the Police Pension Plan may also be invested in certain non-U.S. obligations, mortgages, equity securities, and life insurance company contracts.

2. The Village will avoid any transaction that might impair public confidence. Investments shall be made with judgement and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs. Such standards, therefore, avoid unwarranted speculation. Emphasis is placed on the probable safety of capital rather than the probable income to be derived.

3. All monies due the Village shall be collected as promptly as possible. Monies that are received shall be deposited in an approved financial institution no later than the next business day after receipt by the Village.

Accounting Policies

The accounting policies of the Village of Lake in the Hills are in accordance with generally accepted accounting principles as established by the Governmental Accounting Standards Board (GASB). The following is a summary of the significant accounting policies of the Village.

1. Reporting Entity - The Village is a municipal corporation established under Illinois Compiled Statutes governed by an elected Board of Trustees and Village President. The Village’s reporting entity has been defined pursuant to GASB Statement No. 14. The Village has determined that the Police Pension Plan and the Special Service Areas should be blended into the Village’s reporting entity.

2. Fund Accounting - The accounts of the Village are organized on the basis of funds and account groups, each of which is considered a separate set of self-balancing accounts that comprise its assets, liabilities, fund balance or equity, revenue, and expenditures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped into seven generic fund types:

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General Fund – The General Fund is the general operating fund of the Village. It is used to account for all financial resources except those required to be accounted for in another fund

Special Revenue Funds – The special revenue funds are used to account for the accumulation of resources from special tax levies or other sources to be used for payment of specific expenditures. The Village’s special revenue funds include 1) the Motor Fuel Tax Fund – used to account for motor fuel tax distributions from the State of Illinois that are restricted for specific purposes, and 2) fourteen Special Service Area Funds – used to account for special taxies levied within each special service area for maintenance purposes.

Debt Service Fund – The Debt Service Fund is used to account for the accumulation of resources to be used to retire the Village’s outstanding debt for all funds other than proprietary funds.

Capital Project Funds – Capital project funds are used to account for financial resources to be used for the acquisition, construction, or improvement of major capital facilities, other than those financed by enterprise funds. The Village’s capital project funds include 1) Woods Creek Lake Fund – used to account for improvements to the Village’s largest lake, and 2) Goose Lake, Willow Lake & Lake Scott Fund – used to account for improvements to the Village’s three smaller lakes.

Enterprise Funds – Enterprise funds are established to account for operations that are financed and operated in a manner similar to private business enterprises, where the intent is that the cost of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. The Village has two enterprise funds, 1) the Water Fund, which is comprised of two sub-funds which are used to segregate resources for capital improvements and operations & maintenance, and 2) the Municipal Airport Fund which is also comprised of two sub-funds which are used to segregate resources for capital improvements and operations & maintenance.

Internal Service Funds – Internal service funds are used when a fund primarily provides benefits to other funds, departments, or agencies of the primary government and its component units, or to other governments. The Village has one internal service fund, the Health Insurance Fund, because this fund provides risk pooling benefits for health care costs to the three main operating funds of the Village – the General Fund, the Water Fund, and the Municipal Airport Fund.

Pension Trust Fund – The Police Pension Fund is a pension trust fund that was established to account for benefits to be provided to Police Officers. The Village does not adopt a budget for this fund because the funds are controlled by the Lake in the Hills Police Pension Fund Board of Trustees rather than the Village of Lake in the Hills Board of Trustees.

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VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET APPENDIX C - FINANCIAL POLICIES

Measurement Focus

Measurement focus refers to what is recognized in a fund as a result of a transaction. Governmental funds use a current financial resources measurement focus and report current assets (revenues) and liabilities payable from current assets (expenditures) with the difference reported as fund balance. Capital assets and long-term liabilities for these funds are reported in the account groups. Proprietary funds, pension trust funds and nonexpendable trust funds use an economic resources measurement focus and report all assets (revenues) and liabilities (expenses) incurred by the fund. Equity of proprietary funds is segregated into two components, retained earnings and contributed capital.

Basis of Accounting

Basis of accounting refers to the timing of when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. All governmental and agency funds are accounted for using the modified accrual basis of accounting. Revenues are recognized when measurable and available and expenditures are reported when the fund liability is incurred. A sixty day availability period is used for the Village's governmental fund revenues.

The financial statements of the enterprise, internal service, and pension trust funds reflect the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when the liability is incurred.

Because the budget is prepared on a cash basis but the financial statements are prepared on a modified accrual (governmental funds) and accrual (enterprise, internal service, and pension trust funds) basis, certain differences between the two methods need to be accounted for. The three most significant differences are 1) depreciation expense – the cash basis does not recognize depreciation expense and will therefore result in a higher fund balance/retained earnings than the accrual basis when adjusting for depreciation expense; 2) purchase of capital items – the cash basis recognizes the full cost of a capital asset when it is purchased rather than depreciating it over time and will therefore result in a lower fund balance/retained earnings than the accrual basis when adjusting for the purchase of capital items; and 3) revenue accruals – the cash basis does not recognize year end revenue accruals and will therefore result in a lower fund balance/retained earnings than the accrual basis when adjusting for year end revenue accruals.

Debt Management Policy

Because of the conservative basis of accounting for tax revenues, the Village does not need to borrow money for operations. The Village employs the following objectives in managing its debt:

1. Long-term debt will be confined to capital improvements that cannot be financed from current revenues.

2. The payback period of the debt will not exceed the expected useful life of the project.

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VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET APPENDIX C - FINANCIAL POLICIES

3. Wherever possible, the Village will use current revenue instead of general obligation bonds.

4. If the Village does issue general obligation bonds, then the total debt of the Village will not exceed 8.625% of the assessed valuation of taxable property.

5. Long-term debt will not be used for operations.

6. The Village will maintain good communications with bond rating agencies about its financial condition and will follow a policy of full disclosure on every financial report and bond prospectus.

Outstanding Debt

Outstanding debt accounted for in the General Long-Term Debt Account Group is comprised of the following:

1. On May 27, 2004, the Village issued $905,000 General Obligation Bonds, Series 2004, for land acquisition purposes. The bonds are to be repaid with semi-annual interest on June 15th and December 15th each year with rates ranging from 3.75% to 4.00%. Principal is payable annually on December 15th, 2010-2013, ranging from $140,000 to $270,000 with final maturity on December 15, 2013.

2. On March 9, 2006, the Village issued $2,800,000 General Obligation Bonds, Series 2006, for the expansion and renovation of the Public Works facility. The bonds are to be repaid with semi-annual interest on June 15th and December 15th each year with rates ranging from 3.75% to 3.90%. Principal is payable annually on December 15th ranging from $140,000 to $245,000 with final maturity on December 15, 2020.

3. On July 17, 2009, the Village issued $3,795,000 General Obligation Refunding Bonds, Series 2009, to refund the callable portion of the General Obligation (Limited Tax) Debt Certificates, Series 2002 issued for the purchase of the Larsen and Sullivan properties for park land. The bonds are to be repaid with semi-annual interest on June 15th and December 15th each year with rates ranging from 3.00% to 5.00%. Principal is payable annually on December 15th ranging from $30,000 to $690,000 with final maturity on December 15, 2017.

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VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET APPENDIX C - FINANCIAL POLICIES

The annual debt service requirements to retire these outstanding obligations at December 31, 2011 are as follows:

Fiscal Year Principal Interest Total 2012 $ 770,000 $212,208 $ 982,208 2013 795,000 185,500 980,500 2014 880,000 158,863 1,038,863 2015 855,000 131,038 986,038 2016 860,000 102,250 962,250 2017 865,000 61,770 926,770 2018 225,000 27,439 252,439 2019 235,000 18,720 253,720 2020 245,000 9,555 254,555 Total $5,730,000 $907,343 $6,637,343

Outstanding debt accounted for in the Enterprise Funds is comprised of the following:

1. On June 12, 2003 the Village issued $925,000 General Obligation (Limited Tax) Debt Certificates, Series 2003 to finance improvements to the airport accounted for in the Airport Operations and Maintenance Fund. The certificates are to be repaid with semi-annual interest on June 15th and December 15th each year with rates ranging from 3.1% to 4.1%. Principal is payable annually on June 15th ranging from $30,000 to $65,000 with final maturity on June 15, 2023.

2. On March 9, 2006, the Village issued $2,750,000 General Obligation Bonds, Series 2006, for the water main replacement program accounted for in the Water Operations and Maintenance Fund. The bonds are to be repaid with semi-annual interest on June 15th and December 15th each year at a rate of 3.75%. Principal is payable annually on December 15th ranging from $230,000 to $325,000 with final maturity on December 15, 2015.

The annual debt service requirements to retire these outstanding obligations at December 31, 2011 are as follows:

Fiscal Year Principal Interest Total 2012 $ 330,000 $ 69,235 $ 399,235 2013 345,000 57,022 402,022 2014 360,000 44,309 404,309 2015 370,000 30,933 400,933 2016 50,000 17,035 67,035 2017 50,000 15,235 65,235 2018 55,000 13,277 68,277 2019 55,000 11,159 66,159 2020 60,000 8,945 68,945 2021 60,000 6,560 66,560 2022 65,000 3,998 68,998 2023 65,000 1,333 66,333 Total $1,865,000 $279,041 $2,144,041

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VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET APPENDIX C - FINANCIAL POLICIES

Per Capita Debt

The Village’s population per the 2010 special census is 28,965 and total debt outstanding as of December 31, 2011 is $7,595,000. Accordingly, per capita debt as of December 31, 2011 is $262.21.

Schedule of Legal Debt Margin

Under the 1970 Illinois Constitution, there is no legal debt limit for home rule municipalities except as set by the General Assembly. Accordingly, as of December 31, 2011, the Village had no legal debt limit.

Bond Rating

Moody’s Investors Service assigned an underlying rating of Aa3 to the $3,795,000 General Obligation Refunding Bonds, Series 2009. It also affirmed the Aa3 bond rating for the outstanding portions of the $925,000 General Obligation (Limited Tax) Debt Certificates, Series 2003; the $905,000 General Obligation Bonds, Series 2004; and the $5,550,000 General Obligation Bonds, Series, 2006.

178 APPENDIX D Village of Lake in the Hills Organizational Chart Fiscal Year 2012

CitizensCitizens ofof TheThe VillageVillage ofof LakeLake inin thethe HillsHills

VillageVillage PresidentPresident BoardBoard ofof TrusteesTrustees VillageVillage ClerkClerk AdvisoryAdvisory BoardsBoards andand CommissionsCommissions PlanningPlanning andand ZoningZoning CommissionCommission ParksParks andand RecreationRecreation BoardBoard PolicePolice CommissionCommission VillageVillage AttorneyAttorney VillageVillage ProsecutorProsecutor BusinessBusiness RelationsRelations CommitteeCommittee VillageVillage AdministratorAdministrator VillageVillage EngineerEngineer AssistantAssistant VillageVillage AdministratorAdministrator // EconomicEconomic DevelopmentDevelopment DeputyDeputy ClerkClerk

PublicPublic WorksWorks FinanceFinance DepartmentDepartment CommunityCommunity DepartmentDepartment ParksParks andand RecreationRecreation PolicePolice DepartmentDepartment ManagementManagement DevelopmentDevelopment AdministrationAdministration DepartmentDepartment AdministrationAdministration andand InformationInformation DepartmentDepartment StreetsStreets AdministrationAdministration OperationsOperations ServicesServices PlanningPlanning andand PublicPublic PropertiesProperties ParksParks ESDAESDA WaterWater BillingBilling AdministrationAdministration MunicipalMunicipal AirportAirport RecreationRecreation andand BeachesBeaches HumanHuman ResourcesResources BuildingBuilding andand ZoningZoning WaterWater DivisionDivision

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VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 ANNUAL BUDGET APPENDIX E - PERSONNEL INFORMATION

FY08 FY09 FY10 FY11 FY12 Executive Department Elected Officials 8 8 8 8 8 Part-time Employees 1 1 1 1 1

Administration Department Full-time Employees 3 3 3 3 3 Appointed Officials 7 7 7 7 7

Community Development Department Full-time Employees 9 7 6 5 5 Part-time Employees 1 1 1 2 2 Appointed Officials 7 7 7 7 7

Finance Department Full-time Employees 7 7 7 7 7 Part-time Employee 2 2 2 2 2

Parks and Recreation Department Full-time Employees 5 5 5 5 5 Part-time Employees 1 2 2 2 2 Seasonal Employees 44 50 53 46 52 Appointed Officials 7 7 7 7 7

Police Department Full-time Employees 62 60 59 56 56 Part-time Employees 0 0 1 1 1 Seasonal Employees 3 3 3 3 3 Appointed Officials 3 3 3 3 3

Public Works Department Full-time Employees 43 42 42 42 42 Part-time Employees 0 0 1 1 1 Seasonal Employees 3 2 1 1 5

Total Full-time Employees 129 124 122 118 118 Total Part-time Employees 5 6 8 9 9 Total Seasonal Employees 50 55 57 50 60 Total Elected and Appointed Officials 32 32 32 32 32

Annual Totals 216 217 219 209 219

180 APPENDIX F Full-Time Salaries - FY12 Budget Projections Projected Projected Projected Hourly Hourly Hourly Holiday Rate @ Rate @ Rate @ FY12 Pay Position Date of Hire 12/31/11 01/01/12 12/31/12 Salaries Adjustment Totals Administration Administrator 02/03/97 67.18 68.53 68.53 143,091 Asst. Administrator 03/15/04 42.56 43.42 44.73 92,034 Admin. Asst. 07/31/00 22.52 22.98 23.67 48,706 Totals 132.26 134.93 136.93 283,831 283,831

Comm. Dev. - Admin. & Planning Director - Comm. Dev. 04/10/00 50.61 51.62 51.62 107,783 Admin. Asst. 01/03/00 23.43 23.90 24.62 50,658 Totals 74.04 75.52 76.24 158,441 158,441

Comm. Dev. - Building & Zoning Building Commissioner 05/02/94 43.48 44.35 44.35 92,603 Secretary 03/25/02 21.52 21.96 22.62 46,545 Building Inspector (See note) 01/03/00 30.55 31.17 - 11,067 Building Inspector (See note) 01/30/12 Est. - - 22.58 42,539 Totals 95.55 97.48 89.55 192,754 192,754

Note: Includes projected turnover for the Building Inspector position in late January/early February 2012.

Finance Finance Director 08/03/98 57.58 58.73 58.73 122,629 Asst. Finance Director 08/09/99 40.79 41.61 42.86 88,192 Human Resources Coordinator 03/24/11 26.66 27.20 28.02 57,653 Admin. Asst. 08/04/97 27.80 28.36 28.36 59,216 A/P Clerk 08/22/95 24.14 24.62 24.62 51,407 A/R Clerk/Collector 05/11/98 24.13 24.62 24.62 51,407 Water Billing Clerk 05/04/00 22.85 23.31 24.01 49,405 Totals 223.95 228.45 231.22 479,909 479,909 Sub-Total Finance 168.7960 172.1860 174.1330 361,567 361,567 Sub-Total Public Works-Water 55.1540 56.2640 57.0870 118,342 118,342

Parks-Administration Director of Parks & Recreation 02/23/98 45.45 46.36 47.76 98,267 Admin. Asst. 08/06/01 22.71 23.17 23.87 49,113 Totals 68.16 69.53 71.63 147,380 147,380

Parks-Rec. & Beaches Supt. of Recreation 08/27/03 31.39 32.02 32.99 67,875 Recreation Supervisor 03/26/07 21.39 21.82 22.48 46,252 Recreation Supervisor 01/24/11 20.15 20.56 21.18 43,580 Totals 72.93 74.40 76.65 157,707 157,707

Public Works-Administration Public Works Director 07/02/01 57.58 58.73 58.73 122,629 Deputy Dir. of Public Works 06/27/11 44.24 45.13 46.49 95,657 Contracts Inspector 08/28/00 29.17 29.76 30.66 63,083 Administrative Asst. 08/17/92 27.80 28.36 28.36 59,216 Secretary 07/01/96 24.14 24.62 24.62 51,407 Secretary 06/30/03 20.23 20.64 21.26 43,747 Totals 203.16 207.24 210.12 435,739 435,739 Sub-Total Public Works-Admin 84.4850 86.1825 87.2825 181,104 181,104 Sub-Total Airport 34.1900 34.8750 35.5550 73,532 73,532 Sub-Total Public Works-Water 84.4850 86.1825 87.2825 181,104 181,104

181 APPENDIX F Full-Time Salaries - FY12 Budget Projections Projected Projected Projected Hourly Hourly Hourly Holiday Rate @ Rate @ Rate @ FY12 Pay Position Date of Hire 12/31/11 01/01/12 12/31/12 Salaries Adjustment Totals Public Works-Streets Street Superintendent 06/14/96 41.27 42.10 43.37 89,236 Mechanic 03/27/00 31.33 31.96 31.96 66,733 Mechanic 10/02/02 31.33 31.96 31.96 66,733 Crew Leader 10/06/97 31.22 31.85 31.85 66,503 Gen. Utility Worker II 07/03/96 29.37 29.96 29.96 62,557 Gen. Utility Worker I 04/25/05 24.05 24.54 25.47 52,575 Gen. Utility Worker I 04/25/05 24.05 24.54 25.47 52,575 Gen. Utility Worker I 01/30/06 23.17 23.64 24.54 51,091 Gen. Utility Worker I 05/15/06 23.17 23.64 24.54 50,550 Gen. Utility Worker I 02/12/07 22.32 22.77 23.64 49,152 Totals 281.28 286.96 292.76 607,705 607,705

Public Works-Public Properties Public Property Superintendent 01/10/05 42.15 43.00 44.29 91,136 Crew Leader 05/02/88 31.22 31.85 31.85 66,503 Crew Leader 04/03/89 31.22 31.85 31.85 66,503 Crew Leader 06/21/99 31.22 31.85 31.85 66,503 Gen. Utility Worker II 07/06/99 29.37 29.96 29.96 62,557 Gen. Utility Worker II 09/10/01 29.37 29.96 29.96 62,557 Gen. Utility Worker II 09/26/05 27.25 27.80 28.86 58,635 Gen. Utility Worker I 03/24/97 26.89 27.43 27.43 57,274 Gen. Utility Worker I 04/26/04 24.97 25.47 26.43 54,555 Gen. Utility Worker I 05/03/04 24.97 25.47 26.43 54,516 Gen. Utility Worker I 04/11/05 24.05 24.54 25.47 52,650 Gen. Utility Worker I 04/25/05 24.05 24.54 25.47 52,575 Gen. Utility Worker I 05/04/06 23.17 23.64 24.54 50,607 Totals 369.90 377.36 384.39 796,571 796,571

Public Works-Water Water Superintendent 03/31/99 41.27 42.10 43.37 89,236 Water Operator II 04/25/05 33.00 33.66 34.94 72,120 Water Operator I 06/17/96 31.22 31.85 31.85 66,503 Water Operator I 09/02/03 30.08 30.69 31.85 64,884 Water Operator I 06/24/02 31.22 31.85 31.85 66,503 Water Operator I 07/14/08 25.91 26.43 27.43 56,165 Gen. Utility Worker II 08/14/00 29.37 29.96 29.96 62,557 Gen. Utility Worker II 07/17/06 26.26 26.79 27.80 56,909 Gen. Utility Worker I 07/06/04 24.97 25.47 26.43 54,165 Gen. Utility Worker I 04/25/05 24.05 24.54 25.47 52,575 Gen. Utility Worker I 11/13/06 23.17 23.64 24.54 49,613 Gen. Utility Worker I 06/25/07 22.32 22.77 23.64 48,490 Gen. Utility Worker I 06/02/08 21.51 21.95 22.77 46,831 Totals 364.3500 371.7000 381.9000 786,551 786,551 From Finance 55.1540 56.2640 57.0870 118,342 118,342 From Public Works-Admin 84.4850 86.1825 87.2825 181,104 181,104 Totals Public Works-Water 503.9890 514.1465 526.2695 1,085,997 1,085,997

Airport From Public Works-Admin 34.1900 34.8750 35.5550 73,532 73,532 Total Airport 34.1900 34.8750 35.5550 73,532 73,532

182 APPENDIX F Full-Time Salaries - FY12 Budget Projections Projected Projected Projected Hourly Hourly Hourly Holiday Rate @ Rate @ Rate @ FY12 Pay Position Date of Hire 12/31/11 01/01/12 12/31/12 Salaries Adjustment Totals Police Department - Non-Union Director of Police/Public Safety 10/23/78 57.58 58.73 58.73 122,629 - Chief of Support Services 01/19/94 50.61 51.62 51.62 107,783 - Chief of Patrol Services 04/13/92 50.61 51.62 51.62 107,783 - Sergeant 06/09/86 43.48 44.35 44.35 92,603 44.350 Sergeant 04/11/90 43.48 44.35 44.35 92,603 44.350 Sergeant 04/12/93 43.48 44.35 44.35 92,603 44.350 Sergeant 04/12/93 43.48 44.35 44.35 92,603 44.350 Sergeant 04/11/90 43.48 44.35 44.35 92,603 44.350 Sergeant 06/06/94 43.48 44.35 44.35 92,603 44.350 Sergeant 09/08/93 42.72 43.58 44.35 91,802 - Social Services Coordinator 08/15/05 34.69 35.39 36.46 75,016 - Records Supv./Analyst 08/21/95 27.81 28.37 29.23 60,138 - Communications Supvervisor 11/15/07 28.30 28.87 29.74 61,193 - Admin. Asst. 10/14/86 27.80 28.36 28.36 59,216 - Totals 581.00 592.64 596.21 1,241,178 266.100 1,268,586

Police Department - Union CSO 07/19/04 23.59 23.59 24.82 50,672 - Dispatcher 06/11/04 24.86 24.86 26.17 53,731 25.815 Dispatcher 08/14/06 23.03 23.03 24.31 49,511 23.868 Dispatcher 11/06/06 23.03 23.03 24.31 49,063 23.775 Dispatcher 02/06/07 22.11 22.11 23.38 48,574 23.218 Dispatcher 04/03/00 21.19 21.19 22.44 46,622 22.282 Dispatcher 03/17/08 21.19 21.19 22.44 46,411 22.190 Dispatcher 12/15/10 20.28 20.28 21.51 43,020 21.171 Dispatcher 01/31/11 19.59 19.59 20.58 42,811 20.352 Dispatcher 08/25/11 19.59 19.59 20.58 41,994 20.313 Records Clerk 03/29/99 26.55 26.55 26.68 55,832 - Records Clerk 05/17/07 20.19 20.19 21.35 43,853 - Records Clerk 12/26/07 20.19 20.19 21.35 42,496 - Police Officer 01/07/91 40.25 40.25 41.06 85,504 40.898 Police Officer 04/13/92 40.25 40.25 41.06 85,504 40.898 Police Officer 03/22/93 40.25 40.25 41.06 85,504 40.898 Police Officer 05/22/95 40.25 40.25 41.06 85,504 - Police Officer 01/11/96 40.25 40.25 41.06 85,504 40.898 Police Officer (See note) 09/09/96 40.25 40.25 41.06 69,369 40.898 Police Officer 01/11/99 40.25 40.25 41.06 85,504 - Police Officer 04/19/99 40.25 40.25 41.06 85,504 40.898 Police Officer 06/02/99 40.25 40.25 41.06 85,504 40.898 Police Officer 04/03/00 40.25 40.25 41.06 85,504 40.898 Police Officer 09/10/00 40.25 40.25 41.06 85,504 40.898 Police Officer 01/02/01 40.25 40.25 41.06 85,504 40.898 Police Officer 01/02/01 40.25 40.25 41.06 85,504 40.898 Police Officer 07/02/01 40.25 40.25 41.06 85,504 - Police Officer 09/24/01 40.25 40.25 41.06 85,504 40.898 Police Officer 09/24/01 40.25 40.25 41.06 85,504 40.898 Police Officer 10/07/02 40.25 40.25 41.06 85,504 40.898 Police Officer 01/02/03 40.25 40.25 41.06 85,504 40.898 Police Officer 03/31/03 40.25 40.25 41.06 85,504 40.898 Police Officer 04/21/03 40.25 40.25 41.06 85,504 - Police Officer 01/19/04 38.21 38.21 41.06 85,293 40.694 Police Officer 11/08/04 38.21 38.21 41.06 81,817 39.866 Police Officer 12/27/04 38.21 38.21 41.06 81,232 38.930 Police Officer 12/17/07 36.17 36.17 38.98 77,019 37.170 Police Officer 03/20/06 34.13 34.13 36.90 75,926 36.346 Police Officer 11/10/08 34.13 34.13 36.90 73,129 35.722 Police Officer 02/12/07 32.09 32.09 34.82 72,016 34.478 Police Officer 02/12/07 32.09 32.09 34.82 72,016 34.478 Police Officer 02/23/09 28.02 28.02 30.66 63,230 30.132 Totals 1,401.65 1,401.65 1,457.38 2,990,213 1,185.168 3,112,285

Note: Officer is on approved Leave Without Pay through March 10, 2012 therefore only 81% of salary is reflected in FY12.

Total Police Department 4,380,871

Village Totals 8,427,459 183 APPENDIX G Lake in the Hills - Community Profile

Incorporated on November 29, 1952, Lake in the Hills is a scenic mix of business, recreation, and retail resources occupying 10.3 square miles in northeastern Illinois, McHenry County. The Village employs a home‐rule, President‐Trustee form of government, with six elected‐ at‐large trustees. Municipal zoning is in effect and the Village has its own Planning and Zoning Commission. The latest Comprehensive Plan was published in 2002.

Public Safety The Lake in the Hills Police Department consists of 55 full‐time personnel with Emergency 911 service in place. The Village is served by three fire districts: • Algonquin/LITH Fire Protection District (Class 4 ISO rating) VILLAGE QUICK FACTS • Huntley Fire Protection District Racial Composition (2010) (%) • Crystal Lake Fire Protection District White 88.0 Education Hispanic (of any race) 10.0 Lake in the Hills is served by School Districts 300, 158, 47 and 155, Black or African American 1.9 with the following public schools located in the Village: Asian or Pacific Island 5.4 • Lake in the Hills Elementary School (300) American Indian/Alaska Native 0.2 • Lincoln Prairie Elementary School (300) • May Chesak Elementary School (158) Gender Composition (2010) (%) • Hannah Martin Elementary School (158) Male 49.7 • Henry Marlowe Middle School (158) Female 50.3 Elgin Community College and McHenry County College also serve Lake in the Hills residents and businesses. Median Age (2010)(%) 33.9 Parks Age Composition (2010) (%) The Village is proud of its 32 beautiful parks with a variety of Under 5 years 8.1 amenities such as basketball courts, soccer fields, picnic areas, playgrounds, beaches, and fishing areas. 5‐14 years 18.5 15‐19 years 7.3 Population 20‐24 years 4.4 Lake in the Hills is home to 28,965 people (2010, U.S. Census Bureau). 25‐44 years 33.4 The Village experienced significant growth since 1990: 45‐64 years 23.1 Year Population Households 65+ years 5.2 1990 5,866 1874 1993 8,927 3311 Educational Attainment (2009) (%) 1996 15,770 5777 Bachelor’s degree or higher 31.4 1998 19,639 7013 High school graduate or higher 85.4 2000 23,152 7652 2003 27,728 9283 Household Income (2009) (%) 2006 29,195 9837 Less than $15,000 6.0 2010 28,965 9885 $15,000 ‐$24,999 2.9 Climate $25,000 ‐$34,999 6.2 Avg. summer temperature: 74°F $35,000 ‐$49,999 9.9 Avg. winter temperature: 26°F $50,000 ‐$74,999 18.6 Avg. annual snowfall: 28 inches $75,000 + 56.3 Avg. annual rainfall: 32 inches 99.9

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TAX STRUCTURE TOP FIVE BUSINESSES # of Property taxes: Per $100 assessed valuation Employees Valuation: 33.3% of fair market value Boulder Ridge County Club 150 Sales taxes: 7.75% Costco Wholesale 150 Dominick’s Finer Foods 123 2010 Property Tax Rates Lowe’s Home Center 105 (Select Direct and Overlapping Governments) Village of Lake in the Hills 0.7632 Electric Conduit Construction 100

McHenry County 0.7927 McHenry County Conservation 0.1956 BUILDING STATISTICS (2010) Algonquin Township 0.0577 New Dwelling Units: Grafton Township 0.0720 Single Family Detached 3 Towne homes 0 Algonquin ‐ LITH Fire District 0.6378 Duplexes 0 Crystal Lake Rural Fire Protection 0.4018 New Commercial Buildings 1 Huntley Fire Protection 0.7182 Building Inspections 1,783 Cary Fire District 0.4101 Crystal Lake Park District 0.3758 Huntley Park District 0.3651 Workload Statistics Cary Park District 0.5752 Building Inspections FY03 to FY10 9000 Algonquin Public Library District 0.4086 8000 Cary Area Public Library District 0.1849 7000 Huntley Library District 0.2352 6000 Lake in the Hills Sanitary District 0.0663 5000 4000 LITH Special Service Areas (average) 0.5511 3000 Unit School District Number 26 2.9158 2000 Unit School District Number 47 3.1075 1000 0 Unit School District Number 155 2.0347 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 Unit School District Number 158 4.8118 Unit School District Number 300 4.4103 Elgin Community College District 0.3782 New Dwelling Units McHenry County College District 0.3039 250 200 Share of Total Tax Rate Levied 150 by Village of Lake in the Hills 9.74% 100 50 Services 0 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 Water Water Supplier: Lake in the Hills Single Family Detached Multi-Family Units (Townhomes and Duplexes) Water Source: Wells Storage Capacity: 2,900,000 gal./day Treatment Capacity: 9,196,000 gal./day Average Daily Demand: 2,271,000 gal./day Utilities Peak Daily Demand: 4,766,000 gal./day Natural Gas Supplier: NICOR Reliable Pumping Capacity 6,920,000 gal./day Electric Supplier: Commonwealth Edison Cable Supplier: Comcast Wastewater Treatment (Lake in the Hills Sanitary High speed internet access is available via AT&T, District) Comcast, and local internet service providers. Treatment Capacity: 4,500,000 gal./day Present Load: 3,300,000 gal./day Excess Capacity: 1,200,000 gal./day

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PERSONAL SERVICES

41100 SALARIES, FULL-TIME - Salary expense for employees who work 40 or more hours per week.

41150 PERSONAL SERVICES REIMBURSEMENTS – Labor costs, including overhead, charged for work performed by Public Works employees for divisions or departments that differ from the divisions or departments that their salaries are normally charged to.

41200 SALARIES, PART-TIME - Salary expense for employees who work less than 40 hours per week or seasonal help.

41250 SALARIES, CROSSING GUARDS – Salary expense for crossing guards.

41300 SALARIES, BOARD & COMMISSIONS - Salary expense for Village President, Village Trustees, Village Clerk, and Commissioners.

41400 SALARIES, OVER-TIME - Salary expense paid to non-exempt employees at one and one-half times or two times the employee's regular hourly rate for all hours worked in excess of forty hours per week.

41900 PENSIONER'S PAYMENT - Payments to eligible members of the Police Pension Fund for retirement benefits.

42100 EMPLOYER PORTION FICA - The employer contribution of FICA, which is currently at 7.65% of gross wages.

42200 EMPLOYER PORTION IMRF - BENEFIT - The employer contribution of IMRF which is currently at 10.33% of gross wages for all employees covered under the IMRF program, as well as an additional contribution of 0.49% of wages towards the unfunded liability of past service costs.

42300 EMPLOYER CONTRIBUTION POLICE PENSION – Amount provided through property tax collection for the Police Pension Fund. This amount is determined by an actuarial study conducted on an annual basis.

42330 EMPLOYER PORTION OPEB-PUBLIC WORKS – The employer cost of other post- employment benefits such as health care related to the public works and transportation function of the Village.

42350 EMPLOYER PORTION OPEB-WATER – The employer cost of other post-employment benefits such as health care related to the water operation function of the Village

42400 STATE UNEMPLOYMENT INSURANCE – Reimbursements to the State of Illinois for unemployment insurance claims filed by former employees.

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42500 EMPLOYEE HEALTH INSURANCE - Amount paid for employee group medical, dental, vision, and life insurance premiums.

42600 EMPLOYER CONTRIBUTION WORKERS COMPENSATION INSURANCE – Premium paid to the Intergovernmental Risk Management Agency for workers compensation insurance coverage for employees of the Village.

42700 OTHER EMPLOYEE BENEFITS - Expenses for reimbursable and non-reimbursable sick time payments, health insurance waivers, lump sum merit bonuses, years of service awards, flexible spending account fees, and the employee assistance program.

42800 SURETY & NOTARY BONDS - Amount paid for surety bonds for President, Administrator, Treasurer, Clerk, and Budget Officer, as well as amounts paid for notary bonds.

PROFESSIONAL DEVELOPMENT

45100 CONFERENCES, SCHOOLS, & TRAINING - Amounts paid for attendance at professional conferences and meetings by municipal personnel and elected officials, luncheon meetings where presentations are given, and amounts paid for training related costs such as, registration, fees, tuition, etc., by municipal personnel for professional development. Also includes amounts paid to municipal employees for successful completion of course work for tuition reimbursement, CDL licensing fees, and professional certifications.

45200 DUES - Amount paid for membership dues for various professional organizations.

45300 PUBLICATIONS & SUBSCRIPTIONS - Amount paid for books, magazines, periodicals, pamphlets, maps, internet access, weather service, training films and DVDs, etc.

45400 TRAVEL EXPENSE, MILEAGE, MEALS & OTHER REIMBURSEABLE EXPENSES Amount paid for travel related costs such as mileage, tolls, per diem, lodging for conferences, schools and training by municipal officials and employees on municipal business, and other reimbursable expenses.

45500 COMMUNITY AFFAIRS - Amount paid for plaques for special recognition expenses relating to the entire Village organization such as the picnic, memorial flowers, Public Works Department open house, Community Development Department open house, holiday wreaths, and Business Relations Committee programs.

CONTRACTUAL SERVICES

51100 MAINTENANCE, GROUNDS - Amount paid for contracted maintenance of municipal grounds including labor and materials for mowing, landscaping, trimming, fertilization, aeration, planting, spoils disposal, stump removal, etc.

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51200 MAINTENANCE, BUILDINGS - Amount paid for contracted maintenance of municipal buildings including labor and materials for plumbing, electrical, HVAC, alarm systems, etc.

51300 MAINTENANCE, INFRASTRUCTURE - Amount paid for contracted maintenance of municipal streets, sidewalks, paths, wells and storage, meters and hydrants, water lines, right of way areas, etc.

51400 MAINTENANCE, MACHINERY/EQUIP - Amount paid for contracted maintenance of municipal equipment including labor and materials for office machines, copiers, radios and electronics, desks, fans, air conditioners, movie cameras, recorders, VCRs, fire extinguishers, first aid kits, street lights, detention facility fountains, backflow prevention systems, hoists, generators, central telephone systems, trailers, non-licensed wheeled equipment, etc.

51450 MAINTENANCE, ESDA EQUIPMENT - Amount paid for contracted maintenance of ESDA equipment such as the outdoor warning sirens.

51500 MAINTENANCE, COMPUTERS - Amount paid for contracted maintenance of computer software and hardware services.

51600 MAINTENANCE, VEHICLES - Amount paid for contracted maintenance of municipal vehicles including labor and materials for automobiles, trucks, sweepers, salt spreaders, snow plows, permanently installed accessories, etc.

52100 ACCOUNTING SERVICES - Amount paid for contracted accounting services such as auditing, bookkeeping, attestations, and other related functions.

52200 ENGINEERING SERVICES - Amount paid for contracted engineering advice and services.

52300 LEGAL SERVICES - Amount paid for contracted legal advice and services.

52400 MEDICAL SERVICES - Amount paid for pre-employment physicals, drug screens, required medical testing for various employees, psychological examinations of applicants as part of the testing process, wellness program expenditures, and payments to health care providers and employee reimbursements made in connection with the Village’s partially self-funded health insurance plan.

52450 DENTAL SERVICES - Payments to dental care providers made in connection with the Village’s partially self-funded dental insurance plan.

52600 JANITORIAL SERVICES - Amount paid for contracted services for janitorial services.

52700 LAB TESTING SERVICES - Amount paid for contracted services for lab testing services.

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52750 INVESTMENT SERVICES – Amount paid for contracted services for investing services.

52800 OTHER PROFESSIONAL SERVICES - Amount paid for contracted services not covered by previous accounts. Examples include architectural services, planning services, real estate appraisals, actuarial studies, banking services, recording services, fish stocking services, fireworks, mosquito abatement, alarm monitoring, hazardous waste disposal, wildlife trapping, etc.

53100 ELECTRIC SERVICES - Amount paid for electricity for street lights, water system power, municipal buildings, and airport power.

53200 NATURAL GAS SERVICE - Amount paid for natural gas service to municipal buildings.

53300 SEWER SERVICES - Amount paid for sanitary sewer service to municipal buildings.

53400 TELEPHONE - Amount paid for telephone lines, circuits, and cellular telephone services.

54100 POSTAGE - Amount paid for postal related services such as stamps, bulk mailings, overnight deliveries, etc.

54200 PUBLISHING & ADVERTISING - Amount paid for advertisements such as employee recruitment ads, bid notices, legal notices, and other required notices.

54300 PRINTING & COPYING - Amount paid for printing the Village newsletter, letterhead/stationery, envelopes, work order forms, garage sale permits, business cards, checks, beach tags, application forms, park program brochures, etc.

54400 RENTAL CONTRACTS - Amount paid for rent or lease of vehicles, equipment, land, and buildings such as portable toilets, tools, etc.

54450 EQUIPMENT SERVICES REIMBURSEMENTS – Equipment costs charged for work performed by Public Works personnel for divisions or departments that differ from the divisions or departments that the equipment costs are normally charged to.

54500 GENERAL INSURANCE - Amount paid to the Intergovernmental Risk Management Agency for liability, fire, theft, inland marine, property, and vehicle insurance premiums and deductibles.

54600 JULIE SYSTEM OPERATING COSTS - Amount paid to JULIE for line location notifications.

55100 FESTIVAL & EVENT EXPENDITURES - Amount paid for expenditures related to community festivals and events such as the Summer Sunset Festival, including parades, entertainment, catering, programs, insurance, rentals, etc.

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55200 SALES TAX REIMBURSEMENTS – Reimbursement of a portion of sales tax revenue to Costco.

59100 CONTRIBUTION REFUNDS - Amount paid to former members of the Police Pension Fund after separation of employment representing the return of employee contributions.

59200 SERVICE CREDIT TRANSFER – Amount paid to another municipality for former members of the Police Pension Fund after separation of employment representing the transfer of employee contributions and the required Police Pension Fund match.

59900 MISCELLANEOUS - Amount paid for miscellaneous items not previously covered such as vehicle registration fees, permits, etc.

COMMODITIES

61100 SUPPLIES/PARTS-GROUNDS- Amount paid for supplies and parts to maintain municipal grounds including items for landscaping, trees planted by Village personnel, grass seed, plantings, topsoil, etc.

61200 SUPPLIES/PARTS-BUILDINGS- Amount paid for supplies and parts to maintain municipal buildings such as furnace filters, bulbs, paint, keys, maintenance parts, etc.

61300 SUPPLIES/PARTS-INFRASTRUCTURE - Amount paid for supplies and parts to maintain municipal streets, sidewalks, and culverts such as sand, gravel base, bituminous patch, etc., as well as supplies and parts to maintain wells and storage items such as b-boxes, water lines, water treatment systems, etc.

61330 SUPPLIES/PARTS-WATER METERS - Amount paid for the purchase of water meters.

61400 SUPPLIES/PARTS-EQUIPMENT - Amount paid for supplies and parts to maintain municipal equipment such as office machines, desks, fans, air conditioners, movie cameras, recorders, VCRs, radios and electronics, backflow prevention systems, hoists, generators, central telephone systems, trailers, non-licensed wheeled equipment, etc.

61500 SUPPLIES/PARTS-COMPUTERS - Amount paid for computers costing less than $1,000 and supplies and parts to maintain municipal computers such as memory upgrades, network switches, hard drives, keyboards, etc.

61550 SUPPLIES/PARTS-SOFTWARE - Amount paid for computer software programs costing less than $1,000.

61600 SUPPLIES/PARTS-VEHICLES - Amount paid for supplies and parts to maintain municipal vehicles, salt spreaders, snow plows, and permanently installed accessories including tires and other automotive parts.

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62100 OFFICE SUPPLIES - Amount paid for pens, pencils, markers, post-its, staples, binders, folders, dividers, pads, calendars, cassette tapes, ribbons, paper, ink, etc.

62200 OPERATING SUPPLIES - Amount paid for operating supplies such as food supplies (coffee, creamer, sugar, salt, pepper, etc.), cleaning supplies (sweeping compound, glass cleaner, etc.), paper towels, toilet tissue, testing and exam supplies, small tools, crime prevention supplies, investigation supplies, firearm supplies, pesticides/herbicides, signs, posts, cabinets, non-personal safety equipment, and other equipment costing less than $1,000.

62210 ICE/SNOW CONTROL SUPPLIES - Amount paid for ice and snow control supplies such as road salt, etc.

62220 WATER SYSTEM CHEMICALS - Amount paid for chemicals for the water system such as chlorine, fluoride, etc.

62300 FUEL & PETROLEUM SUPPLIES - Amount paid for gasoline and oil used in municipal vehicles.

62400 UNIFORMS & PROTECTIVE CLOTHING - Amount paid for uniforms and personal protective equipment provided for those public service employees required to wear uniforms while performing their jobs.

DEBT SERVICE

71000 PRINCIPAL PAYMENT - Amount paid for principal payment on bonds, debt certificates, and other debt instruments.

72000 INTEREST PAYMENT - Amount paid for charges on borrowed funds at an agreed upon rate.

75000 ARBITRAGE REBATE PAYMENTS – Amount paid for arbitrage rebate payments to the Internal Revenue Service for investment earnings above the amount allowed to be earned.

74000 AMORTIZATION COSTS – Amount of debt issuance costs charged as an expense over the life of the debt issue.

79000 PAYMENT TO ESCROW AGENT – Amount of debt issue proceeds paid to an escrow agent in connection with debt service refundings.

CAPITAL OUTLAY

81100 LAND - Amount paid for the acquisition of land.

81200 BUILDINGS - Amount paid for the acquisition of and improvements to municipal buildings.

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81250 IMPROVEMENTS - Amount paid for capital improvement projects.

81310 STREETS - Amount paid for improvements to municipal streets.

81320 WELLS & STORAGE - Amount paid for the acquisition or construction of wells and storage facilities.

81330 WATER METERS - Amount paid for the purchase of water meters.

81340 MAIN REPLACEMENT - Amount paid for water main replacements.

81400 EQUIPMENT - Amount paid for the acquisition of equipment costing $1,000 or more with an expected useful life greater than one year such as office machines, shop equipment, vehicle equipment (i.e. plows, spreaders, and squad setup equipment), furniture, playground equipment, etc.

81500 COMPUTER HARDWARE - Amount paid for computer hardware purchases costing $1,000 or more with an expected useful life greater than one year.

81550 COMPUTER SOFTWARE - Amount paid for computer software purchases costing $1,000 or more with an expected useful life greater than one year.

81600 VEHICLES - Amount paid for the acquisition of vehicles such as, automobiles, trucks, sweepers, etc.

82300 DEPRECIATION - PUBLIC WORKS - Amount charged as an expense for an expired portion of a fixed asset related to the public works and transportation function of the Village.

82500 DEPRECIATION - WATER - Amount charged as an expense for an expired portion of a fixed asset related to the water operation function of the Village.

91000 INTERFUND TRANSFERS - Amount of permanent transfers between funds.

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VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 BUDGET APPENDIX I - GLOSSARY

The Annual Budget contains specialized and technical terminology that is unique to public finance and budgeting or a particular departmental operation or project. To assist the reader of the Annual Budget document in understanding these terms, a glossary has been included in the document.

Accrual: The accrual basis of accounting is used for the proprietary Fund types. Under the accrual method, revenues are recognized in the account period in which they are earned while expenses are recognized when the related liability is incurred.

Assessed Valuation: A value that is established for real or personal property for use as a basis for levying property taxes. (Note: Property values are established by the County Assessor.)

Asset: Property owned by a government which has a monetary value.

Balance Sheet: A financial statement that discloses the assets, liabilities, reserves and balances of a specific governmental fund as of a specific date.

Balanced Budget: A budget in which estimated revenues equal estimated expenditures.

Basis of Accounting: Refers to the timing of transactions and when revenues and expenditures or expenses and transfers and the related assets and liabilities, are recognized. Methods include the accrual basis of accounting and modified accrual basis of accounting.

Basis of Budgeting: Refers to the basis of accounting utilized throughout the budget process. The Village of Lake in the Hills budgets in accordance with Generally Accepted Accounting Principals (GAAP) using the Modified Accrual basis for the General Fund and the Accrual Basis for Enterprise funds.

Bond: A written promise to pay a sum of money on a specific date at a specified interest rate. The interest payments and the repayment of the principal are detailed in a bond ordinance. The most common types of bonds are general obligation and revenue bonds. These are most frequently used for construction of large projects, such as buildings, streets, and bridges.

Budget: A one-year financial document embodying an estimate of proposed revenue and expenditures for the year. The Village is required by State Statute to approve a budget, and the approved budget sets the legal spending limits for the Village. It is the primary means by which most of the expenditures and service levels of the Village are controlled.

Budget Message: The opening section of the budget which provides the Village Board and the Public with a general summary of the most important aspects of the budget, changes from the current and previous years, and the views and recommendations of the Village Administrator.

Budget Policies: General and specific guidelines adopted by the Village Board that govern financial plan preparation and administration.

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VILLAGE OF LAKE IN THE HILLS FISCAL YEAR 2012 BUDGET APPENDIX I - GLOSSARY

Budgetary Control: The control or management of a governmental unit or enterprise in accordance with an approved budget for the purpose of keeping expenditures within the limitations of available appropriations and available revenues.

Capital Assets: Assets of long-term character which are intended to continue to be held or used, such as land, buildings, machinery, furniture, and other equipment.

Capital Expenditure: Any expenditure costing $1,000 or more with an intended longevity of two years or more.

Capital Projects Funds: A fund type which is used to account for financial resources to be used for the acquisition or construction of major capital facilities, other than those financed by enterprise funds. The Village’s capital projects funds include the Woods Creek Lake Fund – used to account for improvements to the Village’s largest lake, and the Goose Lake, Willow Lake & Lake Scott Fund – used to account for improvements to the Village’s three smaller lakes.

Contributed Capital: A permanent transfer of money or other asset from a source external to the Village (i.e. Village acceptance of developer installed water mains, roadways, etc.).

Debt Service Fund: The Village’s debt management policy does not allow for issuing debt for operating purposes. Accordingly, all of the expenditures in this fund are for the retirement of debt issued for capital expenditures such as land purchases, construction of buildings, and capital asset acquisitions. The Village also makes every effort to avoid paying for debt retirement with property taxes.

Department: A major administrative unit of the Village, which manages an operation or group of related operations within a functional area.

Division: A subdivision of a department, a division is a unit within the Village with a more limited set of work responsibilities.

Encumbrance: The legal commitment of appropriated funds to purchase an item or service. To encumber funds means to set aside or commit funds for future expenditure.

Enterprise Funds: A fund type established to account for operations that are financed and operated in a manner similar to private business enterprises, where the intent is that the cost of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. The Village has two enterprise funds, 1) the Water Fund, which is comprised of two sub-funds which are used to segregate resources for capital improvements and operations & maintenance, and 2) the Municipal Airport Fund which is used to account for operations at the Lake in the Hills Airport and which is also comprised of two sub-funds which are used to segregate resources for capital improvements and operations & maintenance

Expenditure: This term refers to the outflow of funds paid or to be paid for an asset obtained or goods and services obtained regardless of when the expense is actually paid. This term applies to

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all funds. Note: an encumbrance is not an expenditure. An encumbrance reserves funds to be expended.

Expenses: Charges incurred (whether paid immediately or unpaid) for operation, maintenance, interest and other charges.

Fiscal Year: The time period designated by the Village signifying the beginning and ending period for recording financial transactions. The Village of Lake in the Hills has specified January 1st to December 31st as its fiscal year.

Fund: An accounting entity that has a set of self-balancing accounts and that records all financial transactions for specific activities or government functions. Seven commonly used funds in public accounting are: general fund, special revenue funds, debt service funds, capital project funds, enterprise funds, internal service funds, and trust and agency funds.

Fund Accounting: The accounts of the Village are organized on the basis of funds and account groups, each of which is considered a separate set of self-balancing accounts that comprise its assets, liabilities, fund balance or equity, revenue, and expenditures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Fund Balance: The difference between fund assets and fund liabilities in a governmental or trust fund. Changes in fund balances are the result of the difference between revenues and expenditures. When revenues exceed expenditures in a given period, fund balance increases and when expenditures exceed revenue, fund balance decreases.

Full Faith and Credit: A pledge of the general taxing power of a government to repay debt obligations (typically used in reference to bonds).

General Fund: The largest fund within the Village, the General Fund accounts for most of the financial resources of the government. General Fund revenues include sales and property taxes, licenses and permits, charges for services, and other types of revenue. This fund usually includes most of the basic operating services, such as police protection, finance, community development, public works, and general administration.

General Ledger: A file that contains a listing of the various accounts necessary to reflect the financial position of the government.

General Obligation Bonds: Bonds that finance a variety of public projects such as streets, buildings, and improvements. The repayment of these bonds is usually made from the Debt Service Fund, and these bonds are backed by the full faith and credit of the issuing government.

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Generally Accepted Accounting Principles (GAAP): Uniform minimum standards for financial accounting and recording, encompassing the conventions, rules, and procedures that define accepted accounting principles.

J.U.L.I.E.: Joint Utilities Location Information for Excavators. The system organized in response to the Illinois Underground Utilities Facilities Damage Prevention Act which coordinates the location of underground utilities to prevent unnecessary damage. The Village government pays for all calls placed to excavate within the Village's municipal boundaries.

Lake Restoration Fund: The fund responsible for capital expenditures made to ensure the quality of the lakes located within the Village.

Levy: To impose taxes, special assessments, or service charges for the support of Village activities.

Modified Accrual Basis of Accounting: A basis of accounting in which revenues and other financial resources are recognized when they become both “measurable” and “available” to finance expenditures of the current period. “Available” means that revenues are collectible within the current period or soon enough thereafter to pay liabilities of the current period. “Measurable” means the amount of revenue that can be determined or estimated with reasonable certainty. Expenditures are recognized when the fund liability is incurred. All governmental fund types, including the General Fund, use the modified accrual basis of accounting.

Motor Fuel Tax Fund: A portion of the revenue from the State of Illinois Motor Fuel Tax is distributed each month to municipalities on a per capita basis for the construction, maintenance, and extension of municipal streets. Strictly speaking, the Village’s share of the Motor Fuel Tax is not revenue of the Village. Rather, it is state revenue used by the Village as an agent of the state. The Village must comply with strict state standards and rules in spending these funds.

Municipal Airport Fund: The enterprise fund responsible for capital, operating, and maintenance activities at the Lake in the Hills Airport. The fund encompasses both revenues and expenditures.

Police Pension Fund: A pension trust fund that was established to account for benefits to be provided to Police Officers.

Reporting Entity: The Village is a municipal corporation established under Illinois Compiled Statutes governed by an elected Board of Trustees and Village President. The Village’s reporting entity has been defined pursuant to GASB Statement No. 14. The Village has determined that the Police Pension Plan and the Special Service Areas should be blended into the Village’s reporting entity.

Reserve: An account used to indicate that portion of a fund’s balance that is legally restricted for a specific purpose and is, therefore, not available for general appropriation.

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Retained Earnings: This term refers to the accumulated net earnings of an Enterprise Fund.

Revenue: Is an increase in assets of financial resources which: • Does not increase a liability • Does not represent a repayment of an expenditure already made • Does not represent a cancellation of certain liabilities • Does not represent an increase in contributed capital

Revenue Bonds: Bonds usually sold for constructing a project that will produce revenue for the government. The revenue is used to pay the principal and interest of the bonds.

SCADA: Supervisory Control and Data Acquisition. The computer control system used to remotely monitor and manage the Village's water supply system.

Special Revenue Funds: A fund type that is used to account for the accumulation of resources from special tax levies or other sources to be used for payment of specific expenditures. The Village’s special revenue funds include 1) the Motor Fuel Tax Fund – used to account for motor fuel tax distributions from the State of Illinois that are restricted for specific purposes, and 2) fourteen Special Service Area Funds – used to account for special taxies levied within each special service area for maintenance purposes.

Special Service Area Funds: Property taxes fund the maintenance efforts of the Village’s fourteen Special Service Areas. Common areas such as stormwater detention facilities, bike paths, signage, parkways, etc. are maintained by the Village. These services are paid for by each home located within the Special Service Area by a separate property tax levied for this purpose. Every year, the Village determines the amount of the property tax levy by reviewing expenditures and fund balances. The policy is to maintain the equivalent of one year’s operating expenditures as a fund balance in each Special Service Area to allow for any unexpected expenditures while simultaneously maintaining a fairly stable tax rate.

SunGard Public Sector: The Village's financial accounting and revenue billing software system.

Water Capital Improvement Fund: The enterprise fund responsible for new capital construction activities that expand the Village's potable water system. The fund encompasses both revenues and expenditures.

Water Operating & Maintenance Fund: The enterprise fund responsible for capital replacement, operating, and maintenance activities of the Village's potable water system. The fund encompasses both revenues and expenditures.

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