HomeMy WebLinkAbout3. Financial Workshop Memo 09/13/2011lk Mount 1
Village of Mount Prospect
Mount Prospect, Illinois \1?)
INTEROFFICE MEMORANDUM
TO: MICHAEL E. JANONIS, VILLAGE MANAGER
FROM: FINANCE DIRECTOR
DATE: SEPTEMBER 7, 2011
SUBJECT: PRELIMINARY 2012 PROPOSED BUDGET
The 2011 Annual Budget included a forecast budget for the year 2012 for each operating and
capital project fund. Exhibit I has been prepared to compare the original forecast numbers for
the General Fund to our most recent estimates. The original forecast budget showed an
operating deficit of $977,099 on revenues of $41,721,340 and expenditures totaling
$42,698,439. With initial departmental meetings on the 2012 budget now complete, staff is in
position to present a preliminary look at the 2012 proposed budget. The proposed budget for
the General Fund now shows a deficit of $1.2 million on revenues of $41.5 million and
expenditures of $42.7 million.
Revenues falling short of the budget forecast include the Real Estate Transfer Tax,
Telecommunication Tax, Licenses, Permits and Fees, Fines and Forfeits, Investment Income
and Other Revenue. Offsetting the shortfall in these previously mentioned sources are gains to
Sales Taxes, the Food and Beverage Tax and Other Intergovernmental. Revenues are now
projected to come in $161,296 lower than the original forecast budget. Based on the initial
department submittals, expenditures in the General Fund are $83,406 higher than the original
forecast budget. Much of the increase is due to increases in benefit costs (health insurance).
We had originally anticipated a 3% increase in the equivalent premium. The actual increase is
7 %. In response to the deficit forecast for 2012 departments were asked to hold the line on
spending for commodity and supply type items at 2011 levels in this initial submittal. Other
items incorporated into the budget are the full funding of the computer and vehicle replacement
programs. The attached exhibit and accompanying notes provide further information on the
preliminary 2012 budget.
DAVID O. ERB
FINANCE DIRECTOR
H:WCCT \BUDGET \Budget 2011 \Quarterly & Mid Year Review \VB -FC Budget Workshop Memo - September
2011.docx
Exhibit I
Village of Mount Prospect, Illinois
General Fund - Revenues and Expenditures
Preliminary 2012 Proposed Budget
H:WCCT \BUDGET\Budget 2012 \General Fund Forecast 2012 - VB -FC Workshop.xlsx 1 of 2
(a)
(b)
(c)
(d)
(e)
2011
2012 Forecast
Current
Original
Current
Increase
Percent
Projections
Forecast
Forecast
(Decrease)
Change
Notes
Revenues:
Property Taxes
11,523,500
12,117,500
12,206,500
89,000
0.73%
A
Sales Taxes - ROT Portion
10,575,000
10,600,000
10,890,000
290,000
2.74%
B
Sales Taxes - HMR Portion
1,180,000
1,122,000
1,215,000
93,000
8.29%
B
Food and Beverage Tax
823,000
765,000
840,000
75,000
9.80%
C
Real Estate Transfer Tax
400,000
500,000
400,000
(100,000)
- 20.00%
D
Telecommunications Tax
2,575,000
2,930,000
2,525,000
(405,000)
- 13.82%
E
Other Utility Taxes
1,782,000
1,832,000
1,802,000
(30,000)
-1.64%
Other Taxes
114,400
41,000
192,000
151,000
368.29%
F
Vehicle Licenses
1,405,000
1,405,000
1,405,000
0
0.00%
Other Licenses, Permits, Fees
1,788,000
1,897,000
1,719,000
(178,000)
-9.38%
G
State Income Tax
4,385,000
4,445,000
4,430,000
(15,000)
-0.34%
Other Intergovernmental
1,669,703
1,177,100
1,411,619
234,519
19.92%
H
Charges for Services
1,542,190
1,477,200
1,518,125
40,925
2.77%
Fines and Forfeits
532,500
601,000
507,000
(94,000)
- 15.64%
1
Investment Income
24,100
150,000
25,000
(125,000)
- 83.33%
J
Other Revenue
460,350
661,540
473,800
(187,740)
- 28.38%
K
Total Revenues
40,779,743
41,721,340
41,560,044
(161,296)
-0.39%
Expenditures
Public Representation
482,175
501,495
554,685
53,190
10.61%
Village Manager's Office
2,480,268
2,674,485
2,675,385
900
0.03%
Television Services Division
168,527
171,378
170,644
(734)
-0.43%
Village Clerk's Office
152,109
147,673
148,194
521
0.35%
Finance Department
1,586,221
1,621,891
1,667,150
45,259
2.79%
Community Development Dept.
2,198,465
2,256,193
2,197,422
(58,771)
-2.60%
Human Services Dept.
1,008,663
1,091,766
1,021,169
(70,597)
-6.47%
Police Department
14,600,492
15,453,284
15,571,042
117,758
0.76%
Fire Department
11,411,892
12,005,147
12,090,354
85,207
0.71%
Public Works Department
6,515,086
6,729,122
6,639,796
(89,326)
-1.33%
Miscellaneous
45,863
46,005
46,004
(1)
0.00%
Storm Event 2011
611,008
0
0
0
0.00%
Total Expenditures
41,260,769
42,698,439
42,781,845
83,406
0.20%
L
Excess of Revenues over Expend.
(481,026)
(977,099)
(1,221,801)
(244,702)
Other Financing Sources /Uses
Transfers In
0
0
0
0
Transfers Out
0
0
0
0
Total Other Financing Uses
0
0
0
0
Excess of Revenues over Expend.
and Other Financing Uses:
(481,026)
(977,099)
(1,221,801)
(244,702)
M
H:WCCT \BUDGET\Budget 2012 \General Fund Forecast 2012 - VB -FC Workshop.xlsx 1 of 2
Exhibit I
Village of Mount Prospect, Illinois
General Fund - Revenues and Expenditures
Preliminary 2012 Proposed Budget
Notes
A Increase is due to TIF District taxes being redistributed to Village as part of the revenue sharing agreement with
the TIF taxing districts.
B Projection based on 2011 estimate. 3.0% growth from prior year results in 2.74% increase in the forecast budget.
B Projection based on 2011 estimate. 3.0% growth from prior year results in 8.3% increase in the forecast budget.
C Projection based on 2011 estimate. 2.0% growth from prior year results in 9.8% increase in the forecast budget.
D Reduced amount expected from real estate transfer tax to prior year levels until there is an indication that the
housing market is improving.
E Expect a decline in this revenue source consistent with other communities. Demand for land lines continues to
fall in lieu of cellular and other communication medium.
F Increase to hotel /motel tax from 3% to 6% and addition of new hotel to open in 2012.
G Building permits are expected to decrease $100,000 as a result of the completion of the Randhurst project.
Public Improvement Inspection permits are not expected in 2012 or 2013. This is a decrease of $75,000.
H Use and replacement taxes are trending up. State use tax is projected to increase $136,000 from 2011 amended
budget while replacement taxes are projected to increase $107.500 for same period.
Declines to overall fines & forfeits is from decreases in parking fines and circuit court fines.
J Returns on surplus funds is expected to be only 10 -30 basis points. Forecast budget had anticipated between
150 and 350 basis points.
K Shared cost sidewalk and were scaled back and projections for other reimbursements have been lowered from
prior years.
L Changes from the original General Fund forecast for 2012 totaled $83,406. The increase is primarily in personnel
and benefits costs. There were also slight increases to insurance and civic event line items.
M The overall deficit in the GF increased $244,702 from $977,099 to $1,221,801. A combination of lower revenue
projections ($161,296) and additional projected spending ($83,406) accounted for this change.
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