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HomeMy WebLinkAbout4.1 2016-2018 Budget Review and Preliminary 2017 Property Tax Levy7/10/2017 Board Docs® Pro IN Agenda Item Details Meeting Jul 11, 2017 - Special Meeting of the Committee of the Whole — Joint Village Board and Finance Commission Workshop- 7:00 P.M. Category 4. DISCUSSION ITEMS Subject 4.1 2016-2018 Budget Review and Preliminary 2017 Property Tax Levy Type Discussion Goals Information A workshop to review Village finances is part of the overall budget process. At this joint workshop, staff present to members of the Village Board and Finance Commission results of operations for the prior year along with updates on the current year's budget and budget forecast. Also discussed is a preliminary look at the upcoming property tax levy. Other items are added to the workshop agenda as deemed timely and or necessary. For this year's review a formal presentation has been prepared to guide the Village Board and Finance Commission through the following items: 1. 2016 Year -End Results 2. 2017 Budget Review 3. 2018 Forecast Budget Update 4. 2017 Preliminary Property Tax Levy Staff will be on hand to answer questions and facilitate discussion. Alternatives 1. Board direction on development of 2018 village budget and preliminary 2017 property tax levy. 2. Action at discretion of Village Board. Staff Recommendation Staff requests direction on development of 2018 village budget and preliminary 2017 property tax levy. JULY 2017 REPORT.pdf (3,026 KB) http://www.boarddocs.com/il/vomp/Board.nsf/Public 1/1 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2016-2018 Budget Review and 2017 Preliminary Property Tax Levy Joint Village Board/ Finance Commission Workshop Budget Review — 2016-2018 Table of Contents 2016 Year -End Results Page 1 2017 First Quarter Review Page 13 2018 Updated Forecast Budget Page 19 2017 Preliminary Property Page 24 Tax Levy VILLAGE OF MOUNT PROSPECT TOTAL VILLAGE BUDGET - REVENUES AND EXPENDITURES 2016 YEAR-END RESULTS ll:..:XCII:..:SS OF R11:..:VENUIES OVII::.:R EXPENDITURES 2,300,547 (2,725,779) 5,398,731 ................................................................................................................................................................................................................................................................................................................................... ................................................................................................................................................................................................................................................................................................................................... Actual Budget Actual Change from 2015 .............................................................................................................................................................................................................................................................................................................................................................................................................................................. 2016 2016 Prior Year IRE'VIEINUES Property Taxes 21,404,361 22,424,000 21,988,659 584,298 Other Taxes 14,305,752 14,208,368 13,983,864 (321,888) Licenses, Permits, and Fees 3,067,903 3,064,000 3,096,997 29,094 Intergovernmental Revenue 26,187,405 27,502,329 27,999,102 1,811,697 Charges for Services 27,983,964 29,846,533 29,550,468 1,566,505 Fines and Forfeits 725,066 731,100 692,159 (32,907) Investment Income 2,603,794 8,485,500 7,535,657 4,931,863 Reimbursements 9,155,496 229,500 622,207 (8,533,289) Other Revenue 9,210,824 9,644,840 9,747,897 537,073 Other Financing Sources 301,171 .............................................................................................................................................................................................................................................................................................................................................................................................................................................. 9,805,000 20,540,740 20,239,569 Total (Revenues 114,945,736 .............................................................................................................................................................................................................................................................................................................................................................................................................................................. 125,941,170 135,757,751 20,812,015 Ifii'XIh Ifii'.I� 10111"U IR Ifii'S Personal Services 41,284,086 44,318,416 44,492,997 3,208,911 Pension Benefits 9,171,293 9,744,423 9,716,800 545,507 Contractual Services 21,056,946 24,133,349 22,384,507 1,327,561 Insurance 7,650,114 8,593,266 8,215,320 565,206 Commodities and Supplies 1,632,535 2,206,486 1,706,601 74,066 Other Expenditures 4,482,276 3,678,673 4,397,265 (85,012) Bond Principal and Interest 6,125,731 16,271,787 25,773,037 19,647,305 Capital 20,960,609 19,144,182 12,034,569 (8,926,041) Interfund Transfers 281,599 .............................................................................................................................................................................................................................................................................................................................................................................................................................................. 576,367 1,637,926 1,356,327 'Total Expenditures 112,645,190 .............................................................................................................................................................................................................................................................................................................................................................................................................................................. 128,666,949 130,359,020 17,713,830 ll:..:XCII:..:SS OF R11:..:VENUIES OVII::.:R EXPENDITURES 2,300,547 (2,725,779) 5,398,731 ................................................................................................................................................................................................................................................................................................................................... ................................................................................................................................................................................................................................................................................................................................... 2016 Year -End Results Total Village Budget - Results for the 2016 budget were positive due to measured, but steady growth in revenue and savings from budget in all but two expense categories, debt service and transfers. The only significant decrease in revenue occurred in the Reimbursements category. This decrease was an accounting adjustment addressing fixed asset additions in the Water and Sewer Fund rather than a true decrease in receipts. Another anomaly in revenues was related to the refinancing of debt. Two existing bond issues were refunded during 2016 totaling $20.0 million. The refundings resulted in approximately $275,000 in interest savings annually. There were no significant weather events during 2016 that impacted Village expenditures. In fact, a milder than usual winter provided savings in personnel, commodity and contractual service expense categories. While the mild winter provided relief to various snow removal related accounts, revenue from utility taxes was also down offsetting much of the savings. The State's inability pass a budget has in some ways benefited the Village by allowing local municipalities to hang on to local revenues that are likely to see a reduction when a new State spending plan is approved. To address this continued uncertainty at the State level, the village maintains a multi -step contingency plan in the event of significant revenue loss. The most significant challenge coming into 2016 was in determining how to address future funding for the 6 firefighters once hired through the SAFER grant. SAFER grant funding expires in 2018. Staff spent substantial time in exploring different scenarios and ultimately recommending a dedicated portion of the future property tax levy be used for this funding. Based on operating results in the General Fund for 2016, there is no longer the need to pursue the additional tax levy. Legislation being considered in Springfield contemplates placing a temporary (two-year or four-year) freeze on property taxes. In anticipation of this action the Village has taken steps to protect the levy by limiting the levy categories to supporting only debt service and public safety salaries and pensions. Year-end results from 2016 show total revenues of $135,757,751. This represents an increase of $20.8 million, or 18.1% from the prior year. A decrease in the Reimbursement revenue category was offset by a significant increase in other financing sources (in the form of bond proceeds). Investment income related to public safety pensions increased by $4.9 million while increases to Intergovernmental Revenues and Charges for Service increased $1.8 million and $1.5 million respectively. Revenue growth over the prior year was seen in all categories except Other Taxes, Fines & Forfeits and Reimbursements. Intergovernmental revenue grew by $1.8 million primarily as a result of higher than expected sales taxes. Sales taxes in the General Fund grew $865,000 million from the prior year. The charges for service category increased $1.5 million from the prior year due to increases implemented for water service ($479,000) and refuse collection ($603,000). A number of other revenue sources contributed to the increases experienced in the remaining revenue categories. Included below is a pie chart illustrating contributions to total village revenues by major revenue category. 4 $20,5 $9,747,E 2016 Year -End Results 2016 Total Budget - Revenue $13,983,864 5,997 IM Property Taxes 111111 Other Taxes IN Licenses, Permits, and Fees 111111 Intergovernmental Revenue 111111111 Charges for Services NM Fines and Forfeits 11111 Investment Income Reimbursements Other Revenue Other Financing Sources Total expenditures for the 2016 budget were $130,359,020, an increase of $17.7 million from the prior year. The increase is primarily due to the issuance of $20.0 million of refunding bonds. The total spending on capital during the year was $12.0 million versus the $20.9 million spent the year earlier. The increase in pension benefits are related to added pensioners and increase to the annual public safety (police and fire) pension benefit payments. Excluding the increases seen in the Bond Principal and Interest expense accounts, total expenditures would have shown a decrease of $1.9 million from the prior year. Included below is a pie chart illustrating total village expenditures by major category. $12, $25,773,037 $4,397,26 $1,701 2016 Total Budget - Expenditures $1,637,926 $8,215,320 $22,384,507 3 192,997 IM Personal Services 1111111 Pension Benefits 117 Contractual Services 1111111 Insurance IIIIIIII Commodities and Supplies re Other Expenditures 1P Bond Principal and Interest IIIIII Capital 3,716,800 Interfund Transfers 2016 Year -End Results The departments completed an active 2016 as elements of the Village's Strategic Plan were addressed. Below is a summary listing of activities by Departments during the past year. Community Development: Received national awards from International Economic Development Council (IEDC) for Mount Prospect Entrepreneur's Initiative and Business Resource Guide efforts. Amended sections of Chapters 14 and 15 of the Village Code to include a site plan review process, downtown design guidelines, updated land use table, and revised transitional setback requirements in the B5 and 135C Districts. Completed significant amendments of the zoning ordinance (Chapter 14), sign regulations (Chapter 7), and related Village Code sections in Chapters 15, 16, and 21 to reflect current Village policies and keep the documents current with national codes. Continued working with the Regional Transportation Authority (RTA) and Teska Associates to develop the Rand Road Corridor Plan. The plan will serve as an update to the Village's existing Rand Road Corridor Plan and will reassess the corridor to address three main goals related to all forms of transportation. Plan will be presented to the Village Board for their consideration and approval in the fourth quarter of 2016. Continued the business retention visits, focusing on some of the major employers in the Village including Costco, Cummins -Allison, and CVS Caremark. Worked with business owners, property owners and commercial brokers in the Kensington Business Center (KBC) to address vacancies and aesthetics within the park. The overall vacancy rate dropped to 9% within the park. Supported a Class 7C property tax incentive for the conversion of a former office/warehouse space into an ice arena at 1501 Feehanville Drive. This property had been vacant for over 5 years and will be a major regional draw for the community. The Village welcomed the following new businesses during 2016. Sam's Beauty Supply, Northland Laboratories and Mount Prospect Ice Arena as new tenants in the KBC. National Technical Systems as a new tenant at 1660 Wall Street, which underwent significant investment at their facility. Public storage facility in the former Hinz Lithograph building at 1750 W. Central Road, which underwent significant improvements including interior remodeling and a 3rd floor building addition. Several new restaurant tenants in Randhurst Village including Smokey Bones, Truco Taqueria and Outback Steakhouse. Actively worked with developers to redevelop the site formerly occupied by McDonald's Restaurant into a two -unit commercial building anchored by Potbelly's Restaurant. Approved conditional use permits for Starbuck's and Andy's Custard to develop drive-through restaurants along Rand Road. Continued discussions with the owners of the Golf Plaza II shopping center regarding the redevelopment and expansion of the shopping center. Initiated the process to disband existing Tax Increment Financing (TIF) District and create new TIF District that would expand the benefitting area to the south, east and west of the existing District. Completed site demolition and environmental abatement of the Central Plaza shopping center located at the northwest corner of Central Road and Main Street. Proceeded with final steps in court to recover demolition costs by foreclosing on the property. A Request for Proposals was initiated to solicit development proposals for the property. Construction is underway of the Mount Prospect Station development along Northwest Highway. Occupancy is expected the second quarter of 2017 for the Dunkin Donuts anchored center. 4 2016 Year -End Results Completed annexations of certain property along the Illinois Tollway Authority (1-90), Lynn Court, Addison Court, and properties located on Malmo Drive, Nordic Road and Algonquin Road on the south side of the Village. Continued open dialogue with United Airlines regarding the annexation and redevelopment of their former office headquarters along Algonquin Road. Continued to actively work with new owners of existing multi -family residential developments on their significant reinvestment projects, included major renovations of units at Mount Prospect Greens, Residences of 1450 & 1550, and Forest Cove. Human Services Department: The Human Services Department has remained committed to improving the health and well-being of the residents of Mount Prospect in 2016. The Department offers both nursing and social services to residents of the community. Youth programming during 2016 included a Play and Learn program for preschool age children and a program for 7t" and 8t" grade students which started in the summer with a book club and will continue throughout the school year with field trips to the high school for various events. Adults learning English as a second language come to the Conversations in English program to practice their English language skills with other residents and staff. Residents managing diabetes attend the Diabetes support group on a monthly basis and seniors wishing to maintain wellness through regular physical activity can walk with the Public Health Nurse and a Medical Reserve Corp volunteer year round. In addition to programming, Human Services staff have assisted residents throughout the year with direct services including nursing, case management, counseling, court advocacy and crisis intervention services. Residents in need have also received emergency financial, food pantry and medical lending closet assistance. The Department provided an extra bag of food to families with children who qualify for the free/reduced lunch program over the summer months this year. Training for Department staff has continued to be a priority in 2016. Training that various staff members have received during 2016 include training on Social Security benefits, Medicare and Medicaid, Mental Health, Cultural Competency, Ethics, Domestic Violence and Elder Law. All Department staff participated in Red Cross Shelter Operations Training as we continue to focus on emergency preparedness. The Human Services Department is now on Facebook through the Community Connections Center Page. Residents can access information about department programming through the Village web page and the Departments' Facebook page. Finance Department: The Finance Department continued to meet the goals and strategies set forth in the Strategic Plan for 2020. The primary focus of the department's activities were in the areas of fiscal health, quality service and developing and maintaining relationships, all components of the Governance goal for vision attainment. Accomplishments in the area of fiscal health include the efficient and effective management of Village resources and the timely communication of results of operation the Village Board and Manager's Office for use in decision making. Monthly financial and cash management reports were provided for both internal and external use. The annual audit was completed within the required timeline and all 5 2016 Year -End Results regulatory filings were made. The annual audit received an unqualified opinion which is an independent auditor's judgment that the Village's financial records and statements are fairly and appropriately presented, and in accordance with Generally Accepted Accounting Principles (GAAP). Both the annual audit report (CAFR) and annual budget documents received the Government Finance Officer Association awards for report preparation. The goal of these programs is to ensure that users of the financial statements have the information they need to assess the fiscal health of the organization. Quality service was also a focus during 2016. The department continued to look for opportunities improve service to both the internal and external customer. The department conducted employee training sessions for Accounts Payable, Purchasing and Annual Budget using the Village ERP financial Software. Also, a new numbering system was put in place for servicing the customer in a more efficient manner resulting in shorter wait times during peak front counter business periods such as experienced during vehicle sticker season. Staff attended numerous conferences, seminars and workshops with an opportunity to grow professionally and to strengthen relationships with peers. This practice has allowed staff to return from these trainings with best practice ideas we can consider implementing within the Village. Cash management, reporting and communication are areas that have benefitted from the expanded professional development efforts. Police Department: The Police Department continued meeting its mission of providing quality law enforcement services to our citizens with pride, integrity, and professionalism. The Crime Prevention Unit further expanded the Department's presence on social media, actively disseminating pertinent information on Facebook, Twitter, and YouTube through a series of public service messages. The Department continued to engage the community with its signature events including the Citizen's Police Academy, "Kickin' it with the Cops," National Night Out, as well as by hosting a community pool party. The Police Department also continued its community outreach initiatives through its participation in the Special Olympics annual "Cop on Top" and Torch Run events. The Department hired two (2) new full-time Community Service Officers and two (2) new part-time Community Service Officers as approved by the Village Board. The Police Department began transitioning to beat assignments where patrol officers were permanently assigned to each of the Village's six (6) police beats with a focus on community policing initiatives that advance community engagement and produce favorable performance outcomes for the Mount Prospect community. An extensive policy review was conducted to ensure the department's policies meet contempory needs and standards as part of the Illinois Law Enforcement Accreditation Program (ILEAP). Process improvements were implemented by utilizing an electronic reporting system and a SharePoint program to more efficiently manage workflows within the agency. The Department continued its focus on the career development of its personnel, providing core law enforcement training to line officers, cutting-edge training in specialized areas such as crisis intervention training (CIT), and advanced management training for the Department's leadership team. Fire Department: Six firefighters were sworn in on January 5t" after being hired with funds awarded from the SAFER Grant. In March, the Fire Chief and Deputy Chief were sworn in along with four new Lieutenants. Our Automatic Aid Agreement with Prospect Heights was reinstated and we signed our first agreement with C7 2016 Year -End Results Village of Elk Grove. These agreements filled two voids that existed with neighboring communities. We now have Automatic Aid with all communities that border the Village of Mount Prospect. As a result, we increased Fire and EMS response in our community. In addition, these departments participated in live fire training and general familiarization of our departments in response to the new agreements. The department also reinstated their membership with NIPSTA (Northeastern Illinois Public Safety Training Academy). This membership has given us access to numerous certified classes and hands-on training. To date, firefighters have completed over 64 certified classes to enhance their skills. We began developing an Active Shooter protocol in 2015. We are pleased to say that the ballistic gear has been purchased and plans to roll out the program in the first quarter of 2017 are underway. Our accreditation process has begun and will define the Fire Department's future when completed. In her short time here, our new EMS Coordinator has relicensed 20 paramedics, assisted six new hires in gaining system entry into the Northwest Community EMS system, and certified 45 paramedics to the Advanced Cardiac Life Support certification. In May, over 2000 Mount Prospect children attended our 36th annual Children's Fire and Safety Festival. Bi -lingual lessons were introduced this year in both Spanish and Polish. Finally, the Fire Prevention Bureau partnered with Oberweis to offer programs geared toward older adults in the community. Public Works: The Village's Street Improvement Program completed the resurfacing of 6.5 miles of local streets during 2016. A streets funding plan approved in 2013 allows the Village to keep pace with the annual program. All local streets within the village would be resurfaced over a 20 -year period under the current program avoiding the need for the more costly full street reconstruction project. In addition, staff completed extensive sidewalk improvement programs including installation of new sidewalks on Camp McDonald Road and Lonnquist Boulevard along with sidewalk replacements facilitated by the Cost Share and Community Development Block Grant sidewalk improvement programs. The final phase of the Kensington Business Center jogging path was also completed in 2016 which included replacement and widening of the existing path, replacement of light fixtures, as well as the installation of new signage and exercise equipment. Phase 1 of the Bike Path signage installation project was also completed along with Phase 1 of the emergency vehicle pre-emption device replacement project. The Village completed installation of relief storm sewers on LaVergne and Catalpa. Staff also increased the capacity of existing sewers in the Palm and Cherrywood neighborhood. These projects were the last remaining projects identified in the 2011 Village Flood Study and, along with the Isabella sewer improvements, Hatlen Heights storm sewer improvements and the Lonnquist area combined sewer improvements, culminated almost $14 million worth of stormwater improvements during the last three (3) years. 2015 saw significant activity of the village's Urban Forest. The department received Growth Award for the 14th time. Staff completed scheduled tree trimming of approximately 4,331 trees maintaining the Village's five (5) year tree trimming cycle. There were 650 unhealthy trees removed in a timely manner avoiding costly private property damage from falling branches. The department also planted 1,100 trees of varying species to maintain a diversified urban forest; the largest tree planting project ever completed. Mount Prospect was also recognized as a Tree City USA community by the National Arbor Day Foundation for the 31St consecutive year. rA 2016 Year -End Results Work performed on the village's Water and Sewer System included replacement of the failed roof on the 2 million gallon welded steel ground -level finished water storage reservoir adjacent to Booster Pumping Station 17. Staff also completed the replacement of approximately 800 lineal feet of water main during the year which included the upsizing of water main along Whitegate Drive utilizing an innovate directional drilling technique in lieu of conventional open cut excavation. The department also completed the first phase of approximately $15 million worth of improvements identified in the 2015 Combined Sewer System Evaluation study which included lining and rehabilitation of over 8,000 lineal feet of combined sewer pipe; the department's largest single lining project to date. The department also replaced the 30+ year old William Street sewer pumping station and initiated Successful completed the installation of emergency standby power for Water Booster Station 11. Also completed the first year of extensive separate sanitary sewer maintenance and reporting activities required by the Metropolitan Water Reclamation District of Greater Chicago's (MWRDGC) new Inflow and Infiltration Compliance Program. Streets and Buildings replaced the main garage roof at the Public Works Facility, constructed a 5,500 ton salt dome, cleaned over 4,000 miles of Village streets, and inspected over 70,000 lineal feet of storm sewer mains. Crews also initiated a commuter parking permit system and installed eight (8) automated parking machines that allow commuters to utilize commercial credit cards and mobile phone applications for payment. In addition, a comprehensive streetlight inventory was completed and corridor streetlight evaluation study was performed identifying almost $17 million worth of streetlighting improvements along major thoroughfares. Public Works also initiated participation in the MWRDGC rain barrel program facilitating the delivery of over 2,598 free rain barrels to 1,270 Mount Prospect properties. All Public Works divisions have continued to perform extremely well and deliver high quality services during the economic recovery period and reaching out to keep the community informed through the continual evolution of our cable television channels, web site, newsletter, numerous publications, local newspaper press releases, and the use of social media venues. In 2016, Public Works launched Facebook and Twitter social media platforms. Staff also developed and distributed two (2) printed newsletters mailed to all Mount Prospect residents containing detailed information on expansive Public Works programs such as refuse and recycling guidelines. 8 VILLAGE OF MOUNT PROSPECT GENERAL FUND - REVENUES AND EXPENDITURES 2016 YEAR-END RESULTS EXCESS OF REVENUES OVER 11EXPIIHND„ nand 01"11•lER (FINANCING SOURCES/USES 4,375,323 (33,589) 1,463,408 ...................................................................................................................................................................................................................................................................................................................................... ...................................................................................................................................................................................................................................................................................................................................... 01 Budget to Actual Variance - Actual Budget Actual Favorable .................................................................................................................................................................................................................................................................................................................................................................................................................................................. 2015 2016 2016 (Unfavorable) RIEV If;; IIM U If;; S Property Taxes 15,416,879 15,984,200 15,917,480 (66,720) Sales Taxes - ROT Portion 15,003,273 15,625,000 15,864,573 239,573 Sales Taxes - HMR Portion 1,367,462 1,405,000 1,337,845 (67,155) Food and Beverage Tax 759,073 720,000 805,172 85,172 Real Estate Transfer Tax 1,371,699 1,050,000 1,049,770 (231) Telecommunications Tax 2,133,343 2,075,000 2,020,525 (54,475) Other Utility Taxes 1,641,385 1,782,000 1,609,000 (173,000) Other Taxes 303,623 308,000 292,830 (15,170) Other Licenses, Permits, Fees 2,341,269 2,177,000 2,237,974 60,974 State Income Tax 5,763,542 5,350,000 5,272,834 (77,166) Other Intergovernmental 1,680,860 2,371,820 2,651,547 279,727 Charges for Services 1,458,853 1,385,600 1,440,459 54,859 Fines and Forfeits 519,966 451,000 428,935 (22,065) Investment Income 8,612 4,100 49,203 45,103 Other Revenue .................................................................................................................................................................................................................................................................................................................................................................................................................................................. 551,070 489,500 573,378 83,878 Totall Revenues .................................................................................................................................................................................................................................................................................................................................................................................................................................................. 50,320,908 51,178,220 51,551,525 373,305 EX IP E IN ID111'U (RIES Public Representation 605,328 693,608 640,459 53,149 Village Manager's Office 3,529,062 4,320,097 4,031,455 288,642 Finance Department 1,945,588 2,035,030 1,972,522 62,508 Community Development Dept. 2,104,967 2,424,754 2,223,280 201,474 Human Services Dept. 1,048,463 1,117,503 1,110,589 6,914 Police Department 16,277,671 17,540,844 17,067,108 473,736 Fire Department 13,171,001 14,598,987 14,473,299 125,688 Public Works Department 6,935,451 7,858,003 7,282,164 575,839 Miscellaneous .................................................................................................................................................................................................................................................................................................................................................................................................................................................. 46,455 46,616 46,615 1 Totall Expenditures .................................................................................................................................................................................................................................................................................................................................................................................................................................................. 45,663,986 50,635,442 48,847,491 1,787,951 EXCESS OF IREVE114UES OVER EXPEND„ ...................................................................................................................................................................................................................................................................................................................................... 4,656,922 542,778 2,704,033 OTIHEIR IFIIIIMAINC11114G SOUIRCES/USES Transfers In 0 0 0 Transfers Out ...................................................................................................................................................................................................................................................................................................................................... (281,599) (576,367) (1,240,625) Totall Other Financing Uses ...................................................................................................................................................................................................................................................................................................................................... (281,599) (576,367) (1,240,625) EXCESS OF REVENUES OVER 11EXPIIHND„ nand 01"11•lER (FINANCING SOURCES/USES 4,375,323 (33,589) 1,463,408 ...................................................................................................................................................................................................................................................................................................................................... ...................................................................................................................................................................................................................................................................................................................................... 01 2016 Year -End Results General Fund — The 2016 General Fund Budget shows a surplus of $1.5 million on revenues of $51,551,525 and expenses of $50,088,116. A net transfer out of $1.2 million benefitting the TIF District and Randhurst Business District is included in the total. General Fund revenues came in $373,305 above the amended budget while expenses came in $1,787,951, or 3.5% UNDER the amended budget. The Village has typically come in one to two -percent under budget on an annual basis. This is due to Departments not being compelled to spend their entire budget by year-end. Year-end results from the 2016 Budget show total General Fund revenues of $51,551,525. This represents an increase of $1.2 million, or 2.4% from the prior year. Revenue growth over the prior year was seen in the property tax, intergovernmental, and other tax categories. The increase in property taxes was the result of the general levy increase over the prior year. The Village Board approved a 3.28% increase to the 2015 levy, payable in 2016. Intergovernmental revenue grew by $1.2 million primarily as a result of growth in sales taxes totaling $0.8 million and other Intergovernmental Revenue sources by $0.4 million. Modest changes, both up and down, were realized in the other General Fund revenue categories. Included below is a pie chart illustrating contributions to General Fund revenues broken out by major revenue category. $317,92Q $229, $4 $428,935 $1,466,21( 2016 General Fund - Revenue r_, _ 11 N Property Taxes 1111111 Other Taxes 11 Licenses, Permits, & Fees 1111111 Intergovernmental IIIIIIIIII Charges for Services VI Fines and Forfeits 111111 Investment Income 1111111 Reimbursements Other Revenue Total expenditures for the 2016 General Fund budget were $48,847,491, an increase of $3.1 million, or 6.9% from the prior year but well under the amended 2016 budget, $1.8 million. Departments that saw significant savings from budget for 2016 include Public Works, Police, Community Development and Village Manager's Office. The following pie chart illustrates a breakdown of General Fund expenses. fiK $1,110,5R9 $2,22-- $2,019,1 2,22:$2,019,1 $4,031,45 $640,459 $7,2 2016 Year -End Results 2016 General Fund - Expenditures IIUIV Public Representation 1111111 Village Manager's Office M Finance Department 1111111 Community Development IIIIIIIIIII Human Services I Police Department 111111 Fire Department 1111111 Public Works Department All of the Departments were at or below the benchmark of 50% at mid -year and finished the year under their amended budget. The following chart illustrates General Fund expenditures as a percentage of the annual budget at December 31. Public Representation Village Manager's Office Finance Department Community Development Human Services Police Department Fire Department Public Works Department of Budget Utilized 86% 88% 90% 92% 94% 96% 98% 100% Amendments to the original 2016 budget, including carryover items from the 2015 budget, totaled $977,222. Carry-over items totaled $252,222 while personnel related items (including overtime) totaled $325,000, and professional and contractual service and other expenses totaling $400,000. As was mentioned earlier, total General Fund expenditures have come in anywhere from one to two percent under budget with few exceptions. The chart below shows budget to actual expenditures since 2012. Savings have been used to offset shortfalls in revenue, reduce or eliminate a programmed budget deficit or cover unanticipated expenditures that may occur during the year. If neither of these "i 2016 Year -End Results conditions exists, the savings go toward maintaining the General Fund fund balance. The savings to the 2016 General Fund budget was $1,787,951 or 3.5%. Year Amended Budget Actual Expenditures Variance 2012 $42,585,149 $41,858,267 (1.71%) 2013 $45,693,626 $44,713,148 (2.15%) 2014 $47,396,714 $46,320,040 (2.27%) 2015 $47,640,383 $45,663,986 (4.15%) Including the projected surplus in the General Fund for 2016, reserves to begin 2017 are $18,684,351. These reserves represent a fund balance level of 35.0%. The target benchmark for reserves in the General Fund according to the Village fund balance policy is 20.0% to 30.0%. `K VILLAGE OF MOUNT PROSPECT TOTAL VILLAGE BUDGET - REVENUES AND EXPENDITURES 2017 QUARTERLY REVIEW - Q1 Personal Services 44,492,997 45,970,233 11,345,713 45,970,233 Budget Pension Benefits 9,716,800 9,993,301 YTD Actual 2017 Variance - Contractual Services Actual Budget 01/01/2017- Current Favorable Insurance 2016 ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 2017 3/31/2017 Estimate (Unfavorable) IRE'VIUINUES 1,706,601 2,299,138 288,427 2,299,138 0 Property Taxes 21,988,659 20,367,000 9,771,289 20,367,000 0 Other Taxes 13,983,864 14,489,092 792,849 14,489,092 0 Licenses, Permits, and Fees 3,096,997 3,029,000 1,053,243 3,029,000 0 Intergovernmental Revenue 27,999,102 29,309,261 1,662,713 29,309,261 0 Charges for Services 29,550,468 30,074,981 6,944,321 30,074,981 0 Fines and Forfeits 692,159 641,100 114,207 641,100 0 Investment Income 7,535,657 7,925,100 5,422,145 7,925,100 0 Reimbursements 622,207 240,500 38,057 240,500 0 Other Revenue 9,747,897 10,924,005 3,946,438 10,924,005 0 Other Financing Sources 20,540,740 ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 1,300,000 18,519 1,300,000 0 'To -tall Revenues 135,757,751 ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 118,300,039 29,763,780 118,300,039 0 Personal Services 44,492,997 45,970,233 11,345,713 45,970,233 0 Pension Benefits 9,716,800 9,993,301 2,522,748 9,993,301 0 Contractual Services 22,384,507 23,922,997 4,035,302 23,922,997 0 Insurance 8,215,320 8,236,626 2,760,244 8,236,626 0 Commodities and Supplies 1,706,601 2,299,138 288,427 2,299,138 0 Other Expenditures 4,397,265 1,560,769 520,306 1,560,769 0 Bond Principal and Interest 25,773,037 6,643,013 59,380 6,643,013 0 Capital 12,034,569 16,852,402 1,334,369 16,852,402 0 Interfund Transfers 1,637,925 600,000 0 600,000 0 'Total Expenditures ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 130,359,020 ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 116,078,479 22,866,488 116,078,479 0 II:::XCII:..:SS OF RII:::VENUIE.S OVlli"JR Iliii'XIpREINDIITURIIiii'S 5,398,731 ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 2,221,560 6,897,292 2,221,560 0 13 2017 First Quarter Review Total Village Budget — The total approved budget for 2017 was $112,764,841. This was a decrease of 12.4% from the final 2016 amended budget. In April 2017, the first budget amendment for 2017 was approved by the Village Board. The amendment consisted primarily of capital projects deferred from the prior year. The current 2017 budget of $116,078,479 now reflects a decrease of 9.8% from the prior year. 2016 Final Amended Budget 128,666,949 2017 % Change Original Budget 112,764,841 -12.4% Budget Amendments(s) 3,313,638 Amended Budget 116,078,479 -9.8% One more significant change made to the 2017 budget consists of the addition of the Prospect/Main TIF District. The Downtown TIF that was previously in place was terminated at the end of 2016 and property values reset at current levels. A benefit from the reset in the TIF was that property valued at $18 million was returned to the taxing districts as new property on which additional property taxes could be generated. Total revenues budgeted for 2017 are $118,300,039. This represents a decrease of $17.2 million, or 12.7% from the prior year. The large decrease in 2017 is due to the issuance of two refunding bond issues done in 2016 where none are anticipated in the current year (2017). The budget for 2017 built in increases to the water rates (4%) accounting for the increase to Charges for Service revenue category. No additional adjustments have been made to the revenue projected for 2017 as the current budgeted amounts are in line with prior year actuals and we have only 3 months of activity to -date. We do not feel that we have sufficient data after 3 months to make informed adjustments. Included below is a pie chart illustrating the total village budget for revenue by major revenue category. 2017 Total Amended Budget - Revenue $1,300,000 $10,924,005 $20,367,000 $240,500 $7,925,100 10 Property Taxes $641,100 111111 Other Taxes III Licenses Permits and Fees 111111 Intergovernmental Revenue $14,489,092 IIIIIIII Charges for Services lulu Fines and Forfeits 1 1 1 1 VIII investment lncome $30,074,981 ' $3,029,000 VIII Reimbursements Other Revenue 111111 Other Financing Sources $29,309,261 Total expenditures budgeted for 2017 are $116,078,479, a decrease of $14.4 million from the prior year. Personal service costs in 2017 are estimated to be $45,970,233, an increase of $1.8 million, or 4.2% from 2016. A 2.0% wage increase is included in the budget for all non-union employees and collectively bargained groups. The increase from the prior year was driven by the general wage increase and staffing adjustments throughout the organization. The Capital Budget increased $3.1 million or 23.0% from the prior year and totals $16,852,402. Ongoing projects such as street improvement, flood control and water system improvements are included in this 14 2017 First Quarter Review total. The increase is due to various infrastructure improvements throughout the village. Included below is a pie chart illustrating total village expenditures by major category. 2017 Total Amended Budget - Expenditures $600,000 $16,852,402 $45,970,233 IAV Personal Services 1111111 Pension Benefits $6,643,013 III Contractual Services $1,560,769 �' $2,299,138 1111111 Insurance 111111111 Commodities and Supplies 1I Other Expenditures $8,236,626 1111 Bond Principal and Interest 111111 Capital '....;.s Interfund Transfers $23,922,997 $9,993,301 As with 2016, these figures assume no reduction in revenue as a result of budget legislation being made in Springfield. There is a continued fear that the state in its desire to rectify its own budget woes may well reach down and reduces shared revenues like the income tax, use tax and motor fuel tax. Also being considered by the state legislature are short-term and permanent freeze options to the property tax levy. The village maintains a multi -step contingency plan that can be implemented if the Village were to experience a decline in revenues resulting from action taken in Springfield. The multi -step plan provides for increasing levels of response to loss of revenue depending upon the timing and severity of cuts imposed by the State. A listing of the steps taken in response to revenue loss, in order of least to most significant, are: 1. Eliminate or defer capital projects/purchases. 2. Reduce funding (lease payments) of computer and vehicle replacement programs. 3. Institute a freeze or reduction in commodity, contractual service and supply accounts, where possible. 4. Review catalog of programs and services provided by the village. 5. Review of staffing levels. The Finance Department will continue to review budgeted revenues monthly and report back to the Village Board and Finance Commission if a significant decline is realized. 15 VILLAGE OF MOUNT PROSPECT GENERAL FUND - REVENUES AND EXPENDITURES 2017 QUARTERLY REVIEW - Q1 EXIPEINDIITUIRII:: Public Representation 640,459 809,019 147,962 809,019 Budget Village Manager's Office 4,031,455 4,203,406 YTD Actual 2017 Variance - Finance Department Actual Budget 01/01/17- Current Favorable Community Development Dept. 2016 ................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 2017 3/31/2017 Estimate (Unfavorable) RIEVEINUIES 1,110,589 1,183,389 258,793 1,183,389 0 Property Taxes 15,917,480 16,278,000 8,546,701 16,278,000 0 Sales Taxes - ROT Portion 15,864,573 17,150,000 0 17,150,000 0 Sales Taxes - HMR Portion 1,337,845 1,450,000 0 1,450,000 0 Food and Beverage Tax 805,172 773,000 119,626 773,000 0 Real Estate Transfer Tax 1,049,770 1,075,000 207,686 1,075,000 0 Telecommunications Tax 2,020,525 2,100,000 0 2,100,000 0 Other Utility Taxes 11609,000 1,665,000 261,946 1,665,000 0 Other Taxes 292,830 320,000 0 320,000 0 Other Licenses, Permits, Fees 2,237,974 2,185,000 343,097 2,185,000 0 State Income Tax 5,272,834 5,543,000 1,004,458 5,543,000 0 Other Intergovernmental 2,651,547 2,473,040 248,719 2,473,040 0 Charges for Services 1,440,459 1,289,255 163,020 1,289,255 0 Fines and Forfeits 428,935 461,000 77,057 461,000 0 Investment Income 49,203 43,000 46,663 43,000 0 Other Revenue 573,378 ................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 526,300 180,794 526,300 0 Total Revenues 51,551,525 ................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 53,331,595 11,199,767 53,331,595 0 EXIPEINDIITUIRII:: Public Representation 640,459 809,019 147,962 809,019 0 Village Manager's Office 4,031,455 4,203,406 892,840 4,203,406 0 Finance Department 1,972,522 2,570,392 446,095 2,570,392 0 Community Development Dept. 2,223,280 2,441,991 463,933 2,441,991 0 Human Services Dept. 1,110,589 1,183,389 258,793 1,183,389 0 Police Department 17,067,108 18,229,821 4,845,930 18,229,821 0 Fire Department 14,473,299 15,003,170 3,986,192 15,003,170 0 Public Works Department 7,282,164 8,324,869 1,420,996 8,324,869 0 Miscellaneous ................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 46,615 46,781 11,695 46,781 0 Total lli"xlpendiituires ................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 48,847,491 52,812,838 12,474,435 52,812,838 0 IEXCII: SS OF IRII:"VEII'MUII:"S OVER IliiiXPlliiiNIDITURE.S ................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 2,704,033 518,757 (1,274,668) 518,757 0 011-1IER FINANCMG SOURCES/USES Transfers In 0 0 0 0 0 Transfers Out (1,240,625) (600,000) (503,473) (600,000) 0 ................................................................................................................................................................................................................................................................................................................................................................................................................................................................. Total Other Financing Uses ................................................................................................................................................................................................................................................................................................................................................................................................................................................................. (1,240,625) (600,000) (503,473) (600,000) 0 IE'XCII:.SS OF RII:"VIE'INUII:"S OVER IEX.IPIENIDITUIRIES and 011IER FINANCING SOURCES/USES 1,463,408 (81,243) (1,778,141) (81,243) 0 ................................................................................................................................................................................................................................................................................................................................................................................................................................................................. ................................................................................................................................................................................................................................................................................................................................................................................................................................................................. iD-j 2017 First Quarter Review General Fund — The 2017 General Fund amended budget is showing a deficit of $81,243 on revenues of $53,331,595 and expenses of $53,412,838 (including a $600K capital transfer). As of March 31, the General Fund had recorded expenditures of $12,474,435. This represents 23.4% of the budget and is in line with spending through a quarter year period. The current estimate of revenues in 2017 is expected to come in at the budgeted amount. As such, the deficit expected at year-end in the General Fund remains at $81,243. Included below is a pie chart estimating General Fund revenues broken out by major revenue category. 2017 General Fund Amended Budget - Revenue $1,030,300 ILII Public Representation $1,289,255 1111111 Village Manager's Office II Finance $ 2,441,991 Property Taxes $2,473,040x 11111111 Sales Tax $5,543,000 1111111 Community Dev. $2,617,173 1 Other Taxes 1111111 Licenses, Permits, Fees $2,185,000 i 1111111111 Human Services $4,203,406 11111111111 State Income Tax uiilu. 1 Police Department $809,019 � I Other Intergovernmental 11111 Fire Department 1111111 Public Works 11111 Charges for Services p 1111111 Other Revenue The amended 2017 General Fund budget for expenses is $53,412,838. Budget amendments in this fund totaled $81,243 were approved by the Village Board in April. The amendments impacted various commodity, contractual service and capital accounts. To be conservative, no changes were made to any expense category for the 2017 General Fund budget. The following pie chart illustrates a breakdown of estimated General Fund expenses broken out by department. 2017 General Fund Amended Budget - Expenditures liVA ILII Public Representation $1,183, 389 1111111 Village Manager's Office II Finance $ 2,441,991 1111111 Community Dev. $2,617,173 1111111111 Human Services $4,203,406 1 Police Department $809,019 � 11111 Fire Department 1111111 Public Works liVA 2017 First Quarter Review As was mentioned previously, the General Fund typically experiences a saving from budget of between one and two percent. If a surplus in the General Fund is realized, the funds could be used to further strengthen our fund balance (reserves) in anticipation of a loss of revenue, depending on what is done down in Springfield, or to make a capital transfer in support of some larger projects in need of completion. 18 VILLAGE OF MOUNT PROSPECT TOTAL VILLAGE BUDGET - REVENUES AND EXPENDITURES 2018 FORECAST BUDGET - Q1 Personal Services Estimate Forecast $ Change % Change Pension Benefits 2017 .................................................................................................................................................................................................................................................................................................................................................................................... 2018 from PY from PY REVII"INUES 23,922,997 24,234,738 311,741 1.30% Property Taxes 20,367,000 19,368,000 (999,000) -4.90% Other Taxes 14,489,092 14,803,518 314,426 2.17% Licenses, Permits, and Fees 3,029,000 3,029,000 0 0.00% Intergovernmental Revenue 29,309,261 29,488,224 178,963 0.61% Charges for Services 30,074,981 31,093,755 1,018,774 3.39% Fines and Forfeits 641,100 642,100 1,000 0.16% Investment Income 7,925,100 8,382,100 457,000 5.77% Reimbursements 240,500 243,500 3,000 1.25% Other Revenue 10,924,005 11,243,100 319,095 2.92% Other Financing Sources 1,300,000 .................................................................................................................................................................................................................................................................................................................................................................................... 425,000 (875,000) -67.31% 'To -tall Revenues 118,300,039 .................................................................................................................................................................................................................................................................................................................................................................................... 118,718,297 418,258 0.35% Personal Services 45,970,233 47,033,557 1,063,324 2.31% Pension Benefits 9,993,301 10,274,500 281,199 2.81% Contractual Services 23,922,997 24,234,738 311,741 1.30% Insurance 8,236,626 8,511,883 275,257 3.34% Commodities and Supplies 2,299,138 2,292,638 (6,500) -0.28% Other Expenditures 1,560,769 896,245 (664,524) -42.58% Bond Principal and Interest 6,643,013 6,847,284 204,271 3.07% Capital 16,852,402 15,258,328 (1,594,074) -9.46% Interfund Transfers 600,000 .................................................................................................................................................................................................................................................................................................................................................................................... 425,000 (175,000) 'Total Expenditures 116,078,479 .................................................................................................................................................................................................................................................................................................................................................................................... 115,774,173 (304,306) -0.26% IEXCII::°.SS OF RII:::VEU4UIE.S OVII:..R Iliii'XIPEINDIITURIIiii'S 2,221,560 ....................................................................................................................................................................................................................................................................................... ....................................................................................................................................................................................................................................................................................... 2,944,124 722,564 IN 2018 Revised Forecast Budget Total Village Budget — The 2018 Forecast Budget is currently showing total projected revenues of $118,718,297 and total projected expenditures of $115,774,173. The excess of revenues over expenditures is $2.9 million. Of this amount, surplus earnings in the two public safety pension funds accounts for $6.6 million. These surplus pension funds are set aside for payment of benefits when due and are not available for general village use. Total revenues forecast for 2018 are $118,718,297. This represents an increase of $418,258, or 0.35% from the prior year. Increases in the charges for service, investment income, and other revenue categories attributed to the overall growth in revenue. The significant decline in property taxes was due to the termination of the Special Service Area #5 levy. The increase in charges for service is driven by the increases planned for refuse collection and water service. While overall property taxes are set to decrease $999K due to the termination of the Special Service Area #5 levy ($1.5 million) there is a projected increase to the general property tax levy of 3.2% over 2017. Increases in other revenues consist of public safety contributions in the form of property taxes. Included below is a pie chart illustrating the 2018 forecast for total village revenues by major revenue category. The increase in the property tax levy included in the 2018 Budget is 3.2%. Please note that the tax levy (2017) included in the 2018 forecast is only a placeholder and is intended as a stepping off point for discussion. The decision on a final levy will not occur until after initial budget discussions are held. The levies will likely change as a result of the preliminary actuarial valuation showing greater than 7.0% increases for both the police and fire pension. Again, the figures presented here assume no reduction in revenue as a result of budget decisions made in Springfield. The spring legislative session is currently open. Governor Rauner and the legislature still haven't passed a budget for fiscal year 2015/2016 or 2016/2017. Approval of the state's next fiscal year budget isn't expected until later in the year, at best. Depending on the outcome of these deliberations, there could be a significant loss in revenue to Local Government Distributive Fund and the Motor Fuel Tax seriously impacting operations and the street program, respectively. Pie] 2018 Revised Forecast Budget Total expenditures forecast for 2018 are $115,774,173, a decrease of $304,306, or 0.26% from the amended 2017 budget. The decrease is primarily due to fewer capital projects and general capital purchases being completed when compared with the prior year. Included below is a pie chart illustrating total village expenditures by major category. 2018 Total Forecast Budget- Expenditures PAI VILLAGE OF MOUNT PROSPECT GENERAL FUND - REVENUES AND EXPENDITURES 2018 FORECAST BUDGET - Q1 EXIT"0E1NDIITUIR11:. S Public Representation 2017 740,910 2018 Forecast 0 0.00% Village Manager's Office ............................................................................................................................................................................................................................................................................................................................................ Current Original Current Increase Percent Finance Department Projections ..................................................................................................................................................................................................................................................................................................................................................................................................................................... Forecast Forecast (Decrease) Change REVEINUIES 2,441,991 2,495,622 2,495,622 0 0.00% Property Taxes 16,278,000 16,974,000 16,974,000 0 0.00% Sales Taxes - ROT Portion 17,150,000 17,975,000 17,975,000 0 0.00% Sales Taxes - HMR Portion 1,450,000 1,495,000 1,495,000 0 0.00% Food and Beverage Tax 773,000 784,000 784,000 0 0.00% Real Estate Transfer Tax 1,075,000 1,125,000 1,125,000 0 0.00% Telecommunications Tax 2,100,000 2,100,000 2,100,000 0 0.00% Other Utility Taxes 1,665,000 1,665,000 1,665,000 0 0.00% Other Taxes 320,000 335,000 335,000 0 0.00% Other Licenses, Permits, Fees 2,185,000 2,216,000 2,216,000 0 0.00% State Income Tax 5,543,000 5,562,000 5,562,000 0 0.00% Other Intergovernmental 2,473,040 1,754,220 1,754,220 0 0.00% Charges for Services 1,289,255 1,324,026 1,324,026 0 0.00% Fines and Forfeits 461,000 461,000 461,000 0 0.00% Investment Income 43,000 43,000 43,000 0 0.00% Other Revenue 526,300 ..................................................................................................................................................................................................................................................................................................................................................................................................................................... 533,300 533,300 0 0.00% Total Revenues 53,331,595 ..................................................................................................................................................................................................................................................................................................................................................................................................................................... 54,346,546 54,346,546 0 0.00% EXIT"0E1NDIITUIR11:. S Public Representation 809,019 740,910 740,910 0 0.00% Village Manager's Office 4,203,406 4,152,453 4,152,453 0 0.00% Finance Department 2,570,392 2,602,895 2,602,895 0 0.00% Community Development Dept. 2,441,991 2,495,622 2,495,622 0 0.00% Human Services Dept. 1,183,389 1,152,099 1,152,099 0 0.00% Police Department 18,229,821 18,817,696 18,817,696 0 0.00% Fire Department 15,003,170 15,271,144 15,271,144 0 0.00% Public Works Department 8,324,869 8,629,842 8,629,842 0 0.00% Miscellaneous ................................................................................................................................................................................................................................................................................................................................................................................................................................... 46,781 46,950 46,950 0 0.00% Total lli'xpendiil:uires ................................................................................................................................................................................................................................................................................................................................................................................................................................... 52,812,838 53,909,611 53,909,611 0 0.00% EXCII: SS OF IRII:"VEII'MUII:"S OVIER 11:iXP11:1411DITURES ........................................................................................................................................................................................................................................................................................................................................................................ 518,757 436,935 436,935 0 011 ITER U:::INANCMG SOURCES/USES Transfers In 0 0 0 0 Transfers Out (600,000) (425,000) (425,000) 0 ........................................................................................................................................................................................................................................................................................................................................................................ Total Otlhneir IFlnanciing Uses ........................................................................................................................................................................................................................................................................................................................................................................ (600,000) (425,000) (425,000) 0 EXCII:.SS OF IRII:"VIE'1NU11:"S OVER EX1P1EN1DITUIRIES and 011IER FINANCING SOURCES/USES (81,243) 11,935 11,935 0 ........................................................................................................................................................................................................................................................................................................................................................................ ........................................................................................................................................................................................................................................................................................................................................................................ Yea 2018 Revised Forecast Budget General Fund — The original 2018 General Fund forecast budget showed a slight surplus of $11,935 on revenues of $54,346,546 and expenses of $54,334,611. While not significant, the projected surplus does convey a structurally balanced budget for the coming year. Our adjusted estimate for 2018 does not change from the original forecast amount. As with our projections for 2017, revenue and expense estimates are tracking the prior year and there isn't sufficient activity through 3 months in 2017 to support significant changes. Included below is a pie chart projecting General Fund revenues broken out by major revenue category. 2018 General Fund Forecast - Revenue IEE Property Taxes $1,037,300 II Public Representation $1,324,026 1111111 Village Manager's Office $1,152,099 rpt Finance 1111111 Sales Tax $1,754,220 11111111 Community Dev. EE Other Taxes IIIIIIIIII Human Services F IT Police 111111 $4,152,453 � Fire $740,910 N 11111111 Public Works 1111111 Licenses, Permits, Fees IIIIIIIIII State Income Tax VST Other Intergovernmental $2,216,000 111111 Charges for Services 11111111 Other Revenue $6,009,000 The 2018 General Fund forecast budget for expenditures is $54,334,611. Overall growth in General Fund expenditures from 2017 is $1.2 million or 2.2%. To be conservative no other assumptions were made to any expenditure category for the 2018 General Fund budget. The following pie chart illustrates a breakdown of estimated General Fund forecast expenses broken out by department. 2018 General Fund Forecast - Expenditures 23 II Public Representation 1111111 Village Manager's Office $1,152,099 rpt Finance $2,495,622 11111111 Community Dev. $2,649,845 IIIIIIIIII Human Services F IT Police 111111 $4,152,453 � Fire $740,910 N 11111111 Public Works 23 Village of Mount Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: VILLAGE PRESIDENT AND BOARD OF TRUSTEES FINANCE COMMISSION 9:167LVA �91►19►[ya011:IX41 fel :i DATE: JULY 6, 2017 SUBJECT: PROPOSED 2017 PROPERTY TAX LEVY The Forecast Budget for 2018 included a projected amount for property taxes to be derived from the 2017 property tax levy. Included with this memo for your review is the preliminary 2017 levy. Also included for reference are the final 2016 levy and a levy history for the period 2002 - 2016. Below are a few points on each of these items to help facilitate discussion at the upcoming Finance Commission meeting. For discussion purposes, the Corporate Levy is the tax levy that includes allocations for public safety, debt service and police and fire pensions. Please note that while the preliminary levy was included as part of the 2018 Forecast Budget, it is by no means final. It is only presented as a stepping off point for budget discussion purposes. Final 2016 Levy (Exhibit 1) Corporate Levy - The total extended levy for 2016 was $18,727,306. This represented an increase of $414,550, or 2.27% from the prior year. The levy is set for the purpose of funding public safety (police and fire protection), debt service, police and fire pensions. The public safety portion of the levy did not increase while the debt service portion of the levy increased $45,458 or 2.0%. The portion of the levy for police and fire pension contributions increased 7.0%. Increases to the tax levies for 2011 through 2015 are shown below. 2011 4.33% 2012 3.95% 2013 5.00% 2014 2.48% 2015 3.28% Special Service Area #5 Levy — The total extended levy for 2016 was $1,545,773. There was no increase in the special service levy from the prior year. The final year of the SSA #5 levy is 2017. 24 Proposed 2017 Property Tax Levy July 6, 2017 Page 2 of 2 Preliminary 2017 Levy (Exhibit II) Corporate Levy - The preliminary levy for 2017 for receipt in 2018 totals $19,087,265. This represented an increase of $359,959 or 1.92% from the prior year. This levy was prepared using the final actuary figures for the required pension contributions. The public safety portion is held flat while the debt service portion of the levy increases $108,574 or 4.7%. The portion of the levy for police and fire pension contributions increased $251,385 or 3.9%. Special Service Area #5 Levy — The total extended levy for 2017 is $1,545,773. There is no increase in the special service levy from the prior year. This is the final year for the special service area levy. Public Safety Pension Levy History (Exhibit III) A table covering calendar years 2002 - 2016 of the public safety contribution and funding levels is included with this memo. The table includes the ARC (annual required contribution) for the police and fire pensions, percent change from year-to-year and funding level. The five-year increase (2011-2016) in required contributions for police and fire are 36.83% and 42.92% respectively. The average annual increase over the same period is 7.37% for the police pension and 8.58% for the fire pension. In spite of the increasing level of contributions, the overall funding level of both the police and fire pension funds has fallen from over 75% funded in 2002 to 59% or below for year -ending 2016. While funding the pensions at the ARC has placed stress on the annual property tax levy and General Fund, the Village is committed to proper funding in the current period not pushing the matter "down the road." As mentioned at the start of this memo, this information should provide a good stepping -off point for discussion at the financial planning workshop. A more detailed presentation on the proposed property tax levy for 2017 will be made at that time. Let me know if you have any questions. M David O. Erb Finance Director Exhibit I VILLAGE OF MOUNT PROSPECT AND THE MOUNT PROSPECT PUBLIC LIBRARY FINAL 2016 PROPERTY TAX LEVY 2% Net Provision Total 2016 2016 Loss and 2016 Levy Abatement Levy Costs Extension VILLAGE OF MOUNT PROSPECT Police Protection 4,933,773 0 4,933,773 98,675 5,032,448 Fire Protection 5,107,773 0 5,107,773 102,155 5,209,928 Police Pension Fund 3,742,725 391,625 3,351,100 67,022 3,418,122 Firefighters' Pension Fund 3,143,320 448,720 2,694,600 53,892 2,748,492 Debt Service Funds Series 2009 24,000 0 24,000 480 24,480 Series 2009B 381,275 0 381,275 7,626 388,901 Series 2009C 205,842 42,000 163,842 3,277 167,119 Series 2011 B 790,096 0 790,096 15,802 805,898 Series 2012 54,095 0 54,095 1,082 55,177 Series 2013 369,956 369,956 0 0 0 Series 2014 466,550 0 466,550 9,331 475,881 Series 2016A 393,000 0 393,000 7,860 400,860 Total Village 19,612,405 1,252,301 18,360,104 367,202 18,727,306 MOUNT PROSPECT PUBLIC LIBRARY Library Operations 9,325,246 0 9,325,246 186,505 9,511,751 Library Debt Service 1,579,150 0 1,579,150 31,583 1,610,733 Total Library 10,904,396 0 10,904,396 218,088 11,122,484 TOTAL - VILLAGE OF MOUNT PROSPECT AND PUBLIC LIBRARY 30,516,801 1,252,301 29,264,500 585,290 29,849,790 SPECIAL SERVICE AREA NO. 5 1.515.464 0 1.515.464 30.309 1.545.773 2015 2016 Total Levy Amount 18,312,756 18,727,306 Increase Over Prior Year 414,550 2.27% K-0 Exhibit II VILLAGE OF MOUNT PROSPECT AND THE MOUNT PROSPECT PUBLIC LIBRARY PRELIMINARY 2017 LEVY SPECIAL SERVICE AREA NO. 5 1.515.464 0 1.515.464 30.309 1.545.773 2016 2017 Total Levy Amount 18,727,306 19,087,265 Increase Over Prior Year 359,959 1.92% PrA 2% Net Provision Total 2017 2017 Loss and 2017 Levy Abatement Levy Costs Extension VILLAGE OF MOUNT PROSPECT Police Protection 4,933,773 0 4,933,773 98,675 5,032,448 Fire Protection 5,107,773 0 5,107,773 102,155 5,209,928 Police Pension Fund 3,601,216 293,500 3,307,716 66,154 3,373,870 Firefighters' Pension Fund 3,320,940 336,500 2,984,440 59,689 3,044,129 Debt Service Funds Series 2009 24,000 0 24,000 480 24,480 Series 2009B 381,675 0 381,675 7,634 389,309 Series 2009C 222,655 42,000 180,655 3,613 184,268 Series 2011 B 792,078 0 792,078 15,842 807,920 Series 2012 54,095 0 54,095 1,082 55,177 Series 2013 369,956 369,956 0 0 0 Series 2014 557,400 0 557,400 11,148 568,548 Series 2016A 389,400 0 389,400 7,788 397,188 Total Village 19,754,961 1,041,956 18,713,005 374,260 19,087,265 MOUNT PROSPECT PUBLIC LIBRARY Library Operations 0 0 0 0 0 Library Debt Service 0 0 0 0 0 Total Library 0 0 0 0 0 TOTAL - VILLAGE OF MOUNT PROSPECT AND PUBLIC LIBRARY 19,754,961 1,041,956 18,713,005 374,260 19,087,265 SPECIAL SERVICE AREA NO. 5 1.515.464 0 1.515.464 30.309 1.545.773 2016 2017 Total Levy Amount 18,727,306 19,087,265 Increase Over Prior Year 359,959 1.92% PrA Exhibit III VILLAGE OF MOUNT PROSPECT ANNUAL CONTRIBUTION AND FUNDING LEVEL 2002-2016 ARC = Annual Required Contribution 28 Police Fire $7.0 ARC % Change in ARC % Funded ARC % Change in ARC % Funded 2002 1,062,739 75.30% 1,059,381 80.10% 2003 1,077,645 1.40% 77.50% 1,175,135 10.93% 78.80% 2004 1,246,954 15.71% 74.50% 1,159,480 -1.33% 78.80% 2005 1,333,283 6.92% 74.10% 1,302,011 12.29% 76.40% 2006 1,408,423 5.64% 75.40% 1,389,833 6.75% 76.70% 2007 1,515,672 7.61% 75.50% 1,414,110 1.75% 78.20% 2008 2,208,174 45.69% 58.90% 1,925,110 36.14% 63.90% 2009 2,467,527 11.75% 60.60% 2,140,664 11.20% 65.00% 2010 2,484,859 0.70% 59.30% 2,224,122 3.90% 63.40% 2011 2,631,811 5.91% 59.20% 2,323,609 4.47% 63.30% 2012 2,922,979 11.06% 58.10% 2,468,554 6.24% 63.20% 2013 2,909,868 -0.45% 59.90% 2,526,101 2.33% 64.20% 2014 3,204,363 10.12% 57.90% 2,589,599 2.51% 63.00% 2015 3,817,579 19.14% 54.60% 3,206,186 23.81% 58.00% 2016 3,601,216 -5.67% 57.90% 3,320,940 3.58% 59.30% 5 -Year Increase (2011-2016) 36.83% $1.0cc 42.92% 5 -Year Average Annual Increase 7.37% 8.58% 28 Annual Contribution and Funding Level $7.0 90.0% $6.0 80.0% 77N 70.0% $5.0 E60.0% $4.0 50.0% 7.3 0 $3.0 40.0% J :. 0 30.0% ao vIN 20.0% LL •3 $1.0cc 10.0% R c $0.0 U 0.0% c a o� o� ow oa do titi titi ti3 titx tih ti� do do do ,�o do do do do �o do do 1I1I1I1I1I1I1I1I1I1I11 Police Pension ARC IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Fire Pension ARC ,---------------Police % Funded Fire % Funded 28