HomeMy WebLinkAbout3. COW Agenda Item 2011 Budget MemoVillage of Mount Prospect
Mount Prospect, Illinois
INTEROFFICE MEMORANDUM
TO: MAYOR AND BOARD OF TRUSTEES
FINANCE COMMISSION MEMBERS
FROM:
FINANCE DIRECTOR
DATE:
OCTOBER 15, 2010
SUBJECT:
2011 PROPOSED BUDGET
The Village Manager and the entire management team would like to present the proposed 2011 Annual Budget.
The document is presented in the same format as last year. We encourage you to read the Village Manager's
budget message, which can be found in the Introductory Section beginning on page S. This correspondence
discusses the state of the Village's finances and highlights the more significant issues relative to the budget.
The total proposed budget for 2011 is $82,619,424. This represents a decrease of 6.9% from the prior year. The
2011 General Fund budget, as presented, is balanced. The initial budget deficit for 2011 was $3.0 million.
Significant effort was required by all the departments to eliminate the deficit. Cuts were made in both personnel
and non - personnel line items. Staff reductions occurred in every major department. Detail on the staff reductions
can be found in the Village Manager's budget message and on the summary page at the front of each department's
budget. For 2012, the General Fund is showing a deficit of $1,036,039. Following is a bullet list of noteworthy
issues for the proposed 2011 budget:
• The General Fund, as presented, is balanced and totals $40,570,430.
• The proposed operating budget decreased 5.6% from the prior year. In addition to the staffing reductions
mentioned earlier, spending on a majority of non - personnel accounts was held at 2010 levels, or below.
• The property tax levy for 2010 was held flat from the 2009 levy. Increases to the levy for pensions and
debt service required the general portion of the levy to be reduced significantly ($1,122,939).
• A 4% increase in water and sewer rates is proposed to maintain rates at a level to support ongoing
operations. No other tax or fee increases are included with this budget.
• Finance Commission meetings to review the budget are scheduled for October 21, 28 and November 4
while budget presentations to the Village Board will be held at Committee of the Whole meetings
scheduled for October 26, November 9 and 23. A fourth meeting before the Committee of the Whole
would be held on November 30 if necessary.
As in the past, each department will make a brief budget presentation where key staff will be on hand to answer
questions and help facilitate your review of the budget. Please contact the Village Manager or myself with any
questions.
H: \ACCr\BUDGET\Budget 2011 \2011 Proposed Budget Cover Memo - October 2010.doc