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Home My WebLink About2025 Budget In Brief Village of Oak Brook, Illinois Budget In Brief For the Fiscal Year January 1, 2025 to December 31, 2025 2 3 Budget Message Village of Oak Brook Residents and Businesses: We are pleased to share the Village’s budget-in-brief document. This summary offers a concise overview of the Village’s 2025 budget, making it more accessible for some users. The complete budget document is over 700 pages long and outlines nearly $69 million in expenditures. You can access the full 2025 budget, along with other valua- ble ﬁnancial reports, on the Village’s website. The 2025 budget has been developed through the collaboraƟve efforts of Village staff, the Board of Trustees, and community members. The budgeƟng process lasts six months and includes thorough review and revisions. The Village Board holds two pub- lic budget workshops and a public hearing to discuss the proposed budget, allowing both Trustees and residents to provide input on goals and the direcƟon of Village ser- vices. The Village is commiƩed to creaƟng a ﬁscally responsible budget that ensures Oak Brook’s ﬁnancial health in both the short and long term. We hope you ﬁnd this budget-in-brief document informaƟve and valuable. We en- courage anyone interested in learning more about the budget process to review the full 2025 budget document or aƩend upcoming budget workshops. For any quesƟons concerning the annual budget process, or to share ideas or suggesƟons for improve- ment, please reach out to Village Finance Director Marilyn Fumero at mfumero@oak- brook.org or (630) 368-5070. Sincerely, Laurence E. Herman Village President Table of Contents Budget Message 3 Village Proﬁle 4 Village Leadership 5 Budget Process 6 Basis of BudgeƟng 7 Budget Overview 8 Revenue Overview 9 Sales Tax 10 Expenditure Overview 11 Personnel and Staffing 12 Capital Projects 13 General Fund 14 4 Village Proﬁle The Village was incorporated February 21, 1958 by Paul Butler. Oak Brook is a community where impressive corporate and retail centers, beauƟful homes, lush parks, and forest combine to make a dynamic and inviƟng atmosphere. Oak Brook also offers an excepƟonal variety of acƟviƟes to appeal to a broad range of interests which include; an 18-hole championship Golf Club; Bath and Tennis Club faciliƟes including a swimming pool, diving pool, and tennis courts. The banquet facility, Oak Brook Manor, is located on the Sports Core grounds. The Village of Oak Brook is located about 15 miles west of the Chicago Loop, near the geographic center of the seven-county Chicago metropolitan area. Excellent transportaƟon links are provided to all parts of the greater metropolitan area by a network of tollways and Federal and State highways which pass through or near the Village. The Oak Brook area is generally bounded on the north by the communiƟes of Lombard, Villa Park, Elmhurst and Oakbrook Terrace and on the south by Downers Grove, Westmont, Clarendon Hills and Hinsdale. The Village places a great emphasis on interacƟng with local businesses, both exisƟng and potenƟal. A large porƟon of the Village’s revenue stream is derived from sales tax, which is crucial to the Village’s General Fund operaƟng budget. The Village is commiƩed to upholding its mission, vision, and values through the six key goals outlined below: Mission The Village of Oak Brook will provide the community with excellent local government services and the best educaƟonal opportuniƟes that meet the needs of its ciƟzens and are delivered in a professional, responsive, and ﬁscally responsible manner. Vision Our shared vision for Oak Brook is a place of quality and natural beauty that offers an excellent residenƟal and business environment along with award winning schools with an unparalleled commitment to excellence. Values Integrity Teamwork Customer SaƟsfacƟon Quality of Life Financial Accountability CommunicaƟon 5 Village Leadership The Village of Oak Brook operates under the Village form of government and is governed by our elected Village President and a six-member Board of Trustees—each elected at large for a four-year term of office. The Village Clerk is elected for a four-year term, aƩends Village Board meeƟngs, keeps its minutes, and is the official custodian of Village records. ElecƟons are held biennially, during odd-numbered years, on the ﬁrst Tuesday in April. The day-to-day operaƟons of the Village are handled by the Village Manager, a trained professional with experience in municipal government. The Manager is appointed by the Village Board. The Board sets policy for the Village, adopts ordinances and resoluƟons, approves the ﬁve-year ﬁnancial plan and annual budget, and approves all expenditures or disbursements. The Village is a non-home rule municipality as deﬁned by the Illinois ConsƟtuƟon. From leŌ to right: Trustee Naveen Jain, Trustee James Nagle, Trustee A. Suresh Reddy, Village Clerk Netasha ScarpiniƟ, Village AƩorney Michael Castaldo, President Laurence E. Herman, Village Manager Greg Summers, Trustee Melissa MarƟn, Trustee Michael Manzo, Trustee Edward Tiesenga. Management Team Village Manager Asst Village Manager Greg Summers Joseph Mitchell Police Chief Public Works Fire Chief Head Librarian Brian Strockis Tim O’Malley Kevin Fleege Jacob Post InformaƟon Technology Sports Core Development Services Finance Tom Gilbert Art Segura Rebecca Von Drasek Marilyn Fumero 6 Budget Process The budget process for the Village of Oak Brook involves the President, Board of Trustees, Village Manager, Finance Director, De- partment Directors, and other key personnel, all playing essenƟal roles in preparing the budget for the upcoming year. Budget preparaƟon occurs from June to October, followed by budget workshops in October to review the proposed budget and gather feedback from the Board and the public. A public hearing is held, and the ﬁnal budget is adopted during the ﬁrst regular board meeƟng in December. The ﬁnal budget is made available for public inspecƟon at least ten days prior to its passage, with noƟﬁca- Ɵon of the public hearing published in a local newspaper. AŌer considering the outcomes of the public hearing, the budget is legal- ly adopted through the passage of a budget ordinance, which authorizes the allocaƟon of the budgeted amounts for necessary expenses. The development, implementaƟon, monitoring, and review of the Village’s budget form part of a comprehensive year-round pro- cess. The Finance Department conƟnuously tracks the Village’s revenues and expenditures to address any signiﬁcant variances within each program. Budgetary control is maintained at the category (i.e., object account series) level. The Finance Director (as Budget Officer) can authorize the transfer of budgeted funds between account categories within a single budget program with the Village Manager’s approval. Transfers between budget programs, increases in total appropriaƟons within any fund, transfers re- sulƟng from budget variances exceeding $10,000 for personnel series accounts or $2,500 for other accounts, and all expenditures from budgeted conƟngency amounts require the Village Board's approval. The Village strives to create an informaƟve budget document each year. The budget document has been submiƩed to the Govern- ment Finance Officers AssociaƟon (GFOA) for its DisƟnguished Budget PresentaƟon Award the past twelve years. Each of these years, the Village’s annual budget has received this award. We believe the 2025 Budget conƟnues to meet the standards set forth by the GFOA and anƟcipate this document will receive the budget award. Any comments received by the GFOA will be reviewed and uƟlized to help enhance future budget documents. 2025 BUDGET TIMELINE Date June 13, 2024 Budget Open and Available to Departments. Operational Budget Training at 2:00 pm July 12, 2024 Capital Requests Due to Public Works to Compile and Enter into ClearGov Capital Budget IT Requests Due to IT to Compile and Enter into ClearGov Operational Budget August 2, 2024 Department Operational Budgets Due August 5 - 9, 2024 1st Round Department Meetings with Village Manager & Finance Director for Operational Budget Requests August 12 - 16, 2024 PW & SC Capital Budget Presentation Meetings with Village Manager & Finance Director for Budget Request IT Hardware & Software Budget Meeting with Village Manager & Finance Director for Budget Request August 19 - 23, 2024 2nd Round Department Meetings with Village Manager & Finance Director August 26 - September 13, 2024 Preparation and Printing of 2025 Proposed Budget Early to Late October 2024 Village Board Budget Workshops in the Samuel E. Dean Board Room (Oct. 1st and 29th) Week of November 18, 2024 Publication of Public Hearing Notice for the 2025 Annual Budget December 10, 2024 Public Hearing on the 2025 Annual Budget & Village Board Adoption of the 2025 Annual Budget December 11-18, 2024 Finalize 2025 Annual Budget and Post Link to Village Website March 20, 2025 Submit 2025 Budget Book to GFOA for Award Consideration Step 7 Basis of BudgeƟng The annual budget is prepared and presented on a cash basis. Under the cash basis, transacƟons are recognized only when cash is increased or decreased. This results in a document that is more easily understood and more useful to the general public. This basis of budget reporƟng differs from the basis used for the Village’s Annual Comprehensive Finan- cial Report (ACFR). The ACFR uses both the modiﬁed accrual basis (governmental funds) and the accrual basis (proprietary funds). Under the modiﬁed accrual basis, revenues are recorded when they are measured and available regardless of when received and expenditures are recognized when a liability is incurred regardless of when paid. Un- der the accrual basis, revenues and addiƟons are recorded when earned and expenses and deducƟons are recorded at the Ɵme liabiliƟes are incurred. The budget consists of two different fund categories: Governmental funds and Proprietary funds. Governmental funds are used to account for all or most of a govern- ment’s general acƟviƟes, including the collecƟon and disbursement of earmarked monies (special revenue funds), and the acquisiƟon or construcƟon of general capital assets (capital projects funds). The General Fund is used to account for all acƟviƟes of the general gov- ernment not accounted for in another fund. Governmental funds focus on near-term inﬂows and ouƞlows of spendable resources, as well as balances of spendable resources avail- able at the end of the ﬁscal year. Proprietary funds are used to account for acƟviƟes similar to those found in the private sector, where determinaƟon of net income is necessary or useful for sound ﬁnancial administraƟon. Goods or ser- vices from such acƟviƟes can be provided either to outside parƟes (enterprise funds) or to other departments or agencies primarily with- in the government (internal service funds). Depcreciation Budget = Not recognized CAFR - Not recognized (governmental funds) or recorded as expense (proprietary funds) Capital Expenditures Budget = Recognized as expenditure CAFR - Recognized as expenditure (governmental funds) or increase in assets (proprietary funds) Expenditure Recognition Budget = When liability is paid CAFR - When liability is incurred Revenue Recognition Budget = When cash is received CAFR = When revenues are measureable and available (governmental funds) or when earned (proprietary funds). 8 Budget Overview The Village strives to create a balanced General Fund budget each year. A balanced budget is deﬁned as an individual fund budget where projected revenues are equal to or exceed projected expenditures for the year. Some individual fund budgets may or may not be balanced, depending on the availability and appropriateness of uƟlizing cash reserves. Certain funds oŌen accumulate money over mulƟple years to expend on a larger item down the road. Because of this, it may appear that a fund has an unbalanced budget for the year. The Village has a policy of maintaining a cash reserve balance in the General Fund of six (6) months of operaƟng expenditures. The projected General Fund cash reserve balance at 12/31/25 is $39.8 million, or 17.0 months. ExplanaƟon of major changes in cash: The Water Fund has allocated $8,183,190 for budgeted capital projects, including Water Pumping StaƟons Emergency Generator ConnecƟons, Water System DisinfecƟon ModernizaƟon, and improvements to Woodside Estates and Forest Glen Water Mains. This is signiﬁcantly higher than the $5,690,000 allocated for capital projects in 2024. As previously menƟoned, certain funds tend to accumulate resources over mulƟple years to ﬁnance larger projects in the future. Consequently, it may someƟmes appear that a fund has an unbalanced budget for a given year. In this case, the Water Fund’s budget is not balanced, primarily due to major capital projects that necessitate the use of cash re- serves. Projected 2025 2025 2025 Projected Cash Balance Budgeted Budgeted Change in Cash Balance Fund 1/1/2025 Revenues Expenditures Cash 12/31/2025 General Fund $39,677,356 $32,490,513 $32,411,711 $78,802 $39,756,157 Special Revenue Funds Hotel Tax Fund 4,489,832 1,964,500 1,916,374 48,126 4,537,957 Motor Fuel Tax Fund 2,261,171 352,000 291,430 60,570 2,321,741 Capital Projects Funds Infrastructure Fund 16,762,813 7,595,000 7,549,093 45,907 16,808,720 Enterprise Funds Water Works System Fund 22,957,392 12,250,220 16,023,898 (3,773,678) 19,183,714 Sports Core Fund 3,706,939 5,519,439 5,412,861 106,578 3,813,517 Internal Service Funds Insurance Fund 579,382 3,620,821 3,619,467 1,354 580,736 Garage Fund 331,110 886,902 883,597 3,305 334,415 Capital Replacement Fund 1,024,209 1,393,375 889,880 503,495 1,527,704 Total All Funds $91,790,203 $66,072,770 $68,998,311 ($2,925,542) $88,864,662 9 Revenue Overview 2025 Category Budget General Sales Tax $17,250,000 Non-Home Rule Sales Tax 6,995,000 UƟlity/TelecommunicaƟons Tax 3,750,000 Other Taxes 3,943,500 Charges For Services 8,573,147 Interest 2,246,000 Other Revenues 4,109,401 Interfund Revenues 2,251,062 Water Sales & Services 11,475,220 Sports Core User Fees 5,254,439 Golf Surcharge 225,000 Total Revenues $66,072,769 What are the Village’s major revenue sources? Sales Tax — The largest porƟon of the Village’s revenue relates to its commercial developments. Sales Tax and Non-Home Rule Sales Tax revenue accounts for approximately 53% of the Village’s total revenues. Of the $24.25 million the Village collects annually, nearly 50% relates to the Oakbrook Center. UƟlity/TelecommunicaƟons Tax — this revenue consists of receipts from ComEd, Nicor, and the State of Illinois. The Village imposes a 5.0% uƟlity tax on electricity and natural gas. There is also a 6.0% charge on telecommunicaƟon fees within the Village. Other Taxes — this is comprised of receipts related to: income tax, use tax, personal property replacement tax, road and bridge tax, hotel tax, and motor fuel tax. Charges for Services — this is made up of a number of different items: inspecƟon fees, ambulance transport fees, police special detail fees, internal service charges, and many more. Other Revenues — One of the largest sources of the Other category relates to licenses and permits. Building permits makes up the largest individual source from this category. The Village has seen an upƟck in development over the past few years which has resulted in an increase in permit fees. Water Sales & Services — these revenues fund the delivery of water to residents and maintenance of the Village’s water system. Water rates are budgeted to increase 5.0% effecƟve January 1, 2025. Sports Core User Fees — includes memberships, swimming and tennis program fees, golf greens fees, golf driving range fees, golf and swim lesson fees, and other miscellaneous items related to operaƟng the Sports Core. Further detail on the Village’s revenue sources by individual fund can be found in the full 2025 Annual Budget document. A copy can be found on the Village’s website at village-oak-brook-il-budget-book.cleargov.com/18911/ introducƟon/village-elected-officials. 10 Sales Tax Sales Tax revenue is largest revenue source in the Village’s General Fund and Infrastructure Fund. The amount of sales tax generated by Village businesses allows the Village to operate without a real estate tax levy. The Village no longer receives a small amount of real estate tax revenue for the Promenade TIF district as the TIF ended and repayment to TIF bondholders has been paid in full. The sales tax rate charged within the Village is 7.50%. Of this rate, the Village directly receives 1.50%. The 1.50% is further broken down into two porƟons: 1.00% is the local porƟon that goes into the General Fund to fund general operaƟons (public safety, public works, library, development services, and administraƟon) and 0.50% is the non-home rule porƟon that goes into the Infrastructure Fund to fund roadway improvements. A slight increase in revenues is projected this year with the construcƟon of the Wildberry restaurant, Purple Pig restau- rant, and other prospecƟve improvements at Oak Brook Commons and Oakbrook Center. Also, conƟnuing interest in commercial properƟes is anƟcipated to result in addiƟon- al construcƟon this year. The General Fund’s porƟon of sales tax is projected to be $17.3 million in 2025, which is an increase of 4.5% from the 2024 budget. The Infrastructure Fund’s non-home rule sales tax is projected to be $7.0 million in 2025, which is an increase of 4.4% from the 2024 budget. Oakbrook Center conƟnues to be one of the areas most popular malls and offers numerous retail, dining, and entertainment opƟons. Listed in alphabeƟcal order are a few of the Village’s top sales tax generators in 2024: Apple Carvana CD Peacock Costco Louis VuiƩon Macy’s Neiman Marcus Nordstrom RestoraƟon Hardware Room & Board These 10 taxpayers accounted for nearly 44% of the Village’s total sales tax revenue in 2024. The Village conƟnues to work on aƩracƟng new businesses to strengthen its sales tax base and conƟnue operaƟons without a real estate tax levy. 11 Expenditure Overview What are the Village’s major expenditures? Personnel — This is the cost of compensaƟng Village employees. This includes salaries, overƟme, payroll taxes, pension contribuƟons, health insurance, tuiƟon reimbursement, training, and other miscellaneous items. Personnel typically accounts for the largest porƟon of the Village’s General Fund operaƟng budget. Materials & Supplies — This category consists of commodiƟes used in the Village’s various operaƟons. Major items within this category include postage, subscripƟons & publicaƟons, gas & oil, tools & hardware, general office supplies, maintenance supplies, general equipment, and copying costs. OperaƟon & Contractual — This category consists of contracted services. Major items include liability insurance premiums, health insurance premiums, uƟliƟes, aƩorney fees, DuPage Water Commission water purchases, leaf disposal, bank fees, and other professional services. Other Expenditures — This category is used for items such as interfund transfers and reimbursements to other funds. Interfund transfers are one-Ɵme transfers of cash between funds that are not expected to be repaid. Reimbursements to other funds are the repayment of goods and services between funds. Reimbursements are oŌen Ɵmes used to repay funds for staff Ɵme (ex. An employee of the General Fund works on Sports Core Fund duƟes, the Sports Core would pay back the General Fund for Ɵme used). Capital — This category relates to the purchase or construcƟon of building improvements, equipment, Village roadways, water mains, and vehicles. Historically, the Village’s largest expenditure category has been personnel, followed by capital outlay. A further breakdown of personnel expenditures is presented on page 12 and capital projects is presented on page 13. 2025 Category Budget Personnel $26,534,578 Materials & Supplies 1,689,511 OperaƟon & Contractual 23,185,295 Other Expenditures 2,260,905 Capital 15,328,023 Total Expenditures $68,998,311 Further detail on the Village’s expenditure sources by individual fund can be found in the full 2025 Annual Budget document. A copy can be found on the Village’s website at village-oak-brook-il-budget-book.cleargov.com/18911/ 12 Personnel and Staffing Approximately $26.5 million, or nearly 39%, of the Village’s $69.0 million budget consists of personnel costs. The General Fund (the Village’s main operaƟng fund) budget consists of $23.8 million in personnel costs, which is 90% of its total annual budget. Budgeted personnel primarily consists of salaries, pension contribuƟons, payroll taxes, and health insurance expenses. The 2025 budget makes a number of assumpƟons related to personnel costs: 2.50% merit-based salary increase assumed for non- bargaining employees. 2.00% cost of living salary increase assumed. 3.50% contractual increase assumed for police bargaining employees. 3.50% contractual increase assumed for ﬁre bargaining em- ployees. 2.50% contractual increase assumed for public works bar- gaining employees. 3.00% to 3.50% merit-based salary increase assumed for bar- gaining employees moving through grade. Health insurance assumed to increase 10.0% as of January 1, 2025. Illinois Municipal ReƟrement Fund (IMRF) for non-public safety employees is 9.59% of salary. Police Pension contribuƟons assumed at $2,687,848 based on the January 1, 2023 actuarial valuaƟon projected forward. Fire Pension contribuƟons assumed at $2,597,762 based on the January 1, 2023 actuarial valuaƟon projected forward. Head count levels in the budget are tracked using full-Ɵme equivalent (FTE) employees. FTE’s are based on a 2,080 hour annual work schedule (40 hours per week). For example, a full-Ɵme employee is displayed as 1.00 FTE whereas a part-Ɵme employee working 18 hours per week is displayed as 0.45 FTE. The Village uƟlizes many part-Ɵme and sea- sonal posiƟons to help staff the various funcƟons of the Village. The 2025 budget includes 162.46 FTE posiƟons. This is an increase of 2.0 FTE posiƟons from the 2024 budget. The increase in FTEs in 2025 primarily relates to the addiƟon of the As- sistant Golf Course Superintendent and the re-addiƟon from 2023 of the Head Golf Professional. Historically, the Village has been able to maintain or reduce head count levels over the past few years while sƟll providing excellent service. FluctuaƟons between recent years generally relate to increases or decreases in contrac- tual services. 2025 Category Budget Full-Time Salaries $14,456,628 Part-Time Salaries 605,928 Seasonal Salaries 521,000 Commissions 40,000 OverƟme 1,359,553 TuiƟon Reimbursement 21,000 Bonus Pool 22,200 Fire Pension 2,597,762 Police Pension 2,687,848 IMRF Pension 532,856 Health Insurance 2,556,790 Other 428,827 Total Personnel Budget $26,534,578 F.I.C.A. 704,186 2025 Department FTE Count AdministraƟon 11.40 Finance 6.00 Public Works 20.00 Library 10.80 Police 53.50 Fire 32.40 Sports Core 19.70 Development Services 8.66 Total 2020 FTE Budget 162.46 13 Capital Projects During each budget process, Village staff members conduct facility walkthroughs to prioriƟze upcoming capital needs. Capital items are considered expenditures to buy, improve, or maintain an asset with a cost greater than $5,000. Common capital prioriƟes (in general order of importance) are: 1. Life safety 2. PreventaƟve maintenance 3. OperaƟng cost reducƟon 4. Basic comfort 5. AestheƟc improvement The Public Works department maintains a ﬁve-year capital plan by fund for Village owned faciliƟes and equipment. Each year, departments submit capital requests and provide feedback on the priority of Ɵming for those requests. The Public Works department works with the Finance depart- ment to determine how revenue esƟmates align with capital expenditure requests. Although capital requests are tentaƟvely planned for the next ﬁve years, only the projects scheduled to happen in the ﬁrst year of the plan are budgeted for. Future capital plans are subject to change during future budget processes as available resources are determined. The Village makes every effort to meet its capital needs each year. If availa- ble resources are not sufficient to pay for capital spending, the Village de- termines if a project can be delayed unƟl future years. The cost of a project is weighed against the impact that doing nothing would have on public safe- ty and services. The cost of not funding capital needs on schedule oŌen lead to increased maintenance costs and staff Ɵme in the future. AddiƟon- ally, capital projects are evaluated based on any addiƟonal costs that would be added to future budgets. Major 2025 capital projects include: Woodside Estates and Forest Glen Water Main Im- provements—$6,500,000 Street Replacement Plan—$2,325,000 York Road Bridge Deck over I-88 Feeder—$1,493,318 2025 Fund Budget General Fund $612,575 Hotel Tax Fund 593,750 Infrastructure Fund 5,746,174 Water Fund 8,158,190 Sports Core 1,600,954 Garage 1,500 Equipment Replacement 889,880 Total Capital Budget $17,603,023 Water Main Improvements Street Replacement Plan York Road Bridge Deck 14 General Fund The General Fund serves as the Village’s main operaƟng fund. This fund is comprised of core services to the Village, including police and ﬁre protecƟon, forestry, buildings and grounds maintenance, mosquito control, library, building and code enforcement, planning, zoning, economic development, legal, ﬁnance, informaƟon technology, and general administraƟon. Approximately 53.1% of the funding for these ser- vices comes from General Sales Tax revenue. Other signiﬁcant sources of revenue include: State Income Tax, UƟlity/TelecommunicaƟons Tax, Building Per- mits, and Ambulance Fees. These signiﬁcant revenue sources alone account for $27.8 million of the FY25 revenue budget of $32.5 million, or 85.5% of budget- ed revenues. Revenues are placed into ﬁve major categories: In- tergovernmental (payments from other governmen- tal units, such as sales tax), Licenses and Permits, Charges for Services, Other (Miscellaneous) Reve- nues, and Interfund Revenues (transacƟons between Village funds). Department 2024 Budget 2025 Budget Change LegislaƟve & General Management $4,198,037 $4,765,659 $567,622 Financial Services 891,595 967,702 76,107 Public Works 2,932,712 3,079,627 146,915 Engineering & Capital Projects 3,577 — (3,577) Library 1,161,939 1,271,866 109,927 Police 12,046,670 11,937,119 (109,551) Fire 9,279,635 9,123,601 (156,034) Development Services 1,180,689 1,266,137 85,448 Total Expenditures $31,694,854 $32,411,711 $716,857 General Fund FY25 budgeted spend by category is: Category 2024 Budget 2025 Budget Change Personnel $24,432,724 $23,787,259 ($645,465) Materials & Supplies 616,457 689,454 72,997 OperaƟon & Contractual 5,955,297 7,312,523 1,357,226 Other Expenditures 107,767 9,900 (97,867) Capital Outlay 582,609 612,575 29,966 Total Expenditures $31,694,854 $32,411,711 $716,857 The General Fund consists of eight different departments with various programs within. FY25 budgeted spend by department is: