HomeMy WebLinkAboutTab 4: 2014 Proposed Property Tax LevyVillage of Mount Prospect
Mount Prospect, Illinois
INTEROFFICE MEMORANDUM
TO: MICHAEL E. JANONIS, VILLAGE MANAGER
FROM: FINANCE DIRECTOR
DATE: APRIL 17, 2014
SUBJECT: PROPOSED 2014 PROPERTY TAX LEVY
The Forecast Budget for 2015 included a projected amount for property taxes to be derived from
the 2014 property tax levy. Included with this memo for your review is the projected 2014 levy.
Also included for reference are the final 2013 levy and a levy history for the period 2009 -2013.
Below are a few points on each of these items to help facilitate discussion at the April 22. 2014
financial planning workshop.
Final 2013 Levy
Corporate Levy - The total extended levy for 2013 was $17,301,769. This represented an
increase of $823,897, or 5.0% from the prior year. The levy is set for the purpose of funding
refuse collection, debt service, police and fire pensions and general municipal services. The
general portion of the levy increased by 19.0% while the refuse portion decreased 81.7 %. The
portions of the levy for police and fire pensions increased by 11.0% and 4.2% respectively while
the debt service increased 27.7 %. The reason for the large swings in change from prior year
was due to a reallocation of the levy for refuse collection. While individual components of the
levy moved by a greater amount than typical, the overall increase remained just 5.0 %.
Increases to the tax levies for 2008 through 2012 are shown below.
2008
3.26%
2009
4.99%
2010
0.00%
2011
4.33%
2012
3.96%
Special Service Area #5 Levy — The total extended levy for 2013 was $1,545,773. There was
no increase in the special service levy from the prior year. This levy has remained at this level
since before 1997.
Projected 2014 Levy
Corporate Levy - This projected levy for 2014 reflected in the 2015 Forecast Budget shows an
increase of 4.46% from the 2013 levy and totals $18,073,121. Please note that while this was
the levy included in the 2015 Forecast Budget, it is by no means final. It is only
presented as a stepping off point for budget discussion purposes. A further review will
take place during the August mid -year review and 2015 budget proceedings to determine
the final levy amount.
This projected levy is showing an adjustment for debt service based on the repayment schedule
for each bond. The annual required contribution for public safety pensions are projected to
Proposed 2014 Property Tax Levy
April 17, 2014
Page 2 of 2
increase by 7.0% so the levy amount is being increased accordingly. The refuse portion of the
levy has been completely eliminated while the general portion increased 7.7 %. Again, due to
the reallocation of the refuse levy mentioned earlier. The total rate increase of the proposed
2014 levy of 4.46% falls within the self- imposed limits of between 3.5% and 5.0 %.
Special Service Area #5 Levy — The proposed levy for 2014 again will be $1,545,773. The
final year of the levy for SSA #5 is 2017.
Property Tax Levy History
A five -year history of the property tax levy is included with this memo that shows the total annual
levy, proportional share of each component of the levy and percent increase in the levy, by
component and in total. The average annual increase in the levy from 2009 -2013 is 3.65 %, at
the low end of the self- imposed limits of 3.5% and 5.0 %. The portion of the levy allocated to
general municipal services, as a percent of the total levy is at 2009 levels. The percent increase
to the required contribution for public safety pensions is greatest over the five -year period.
This information should provide a good stepping -off point for discussion at the financial planning
workshop scheduled for April 22, 2014. A more detailed presentation on the proposed property
tax levy for 2014 will be made at that time. Let me know if you have any questions.
David O. Erb
Finance Director
DOE/
I: \Property Taxes\2014 Levy\April 2014 Workshop - Proposed 2014 Levy.docx
VILLAGE OF MOUNT PROSPECT
FINAL 2013 PROPERTY TAX LEVY
VILLAGE CORPORATE
General Corporate Fund
Refuse Fund
Police Pension Fund
Firefighters' Pension Fund
Debt Service Funds
Series 2009
Series 2009B
Series 2009C
Series 2011 B
Series 2012
Series 2013
Series 2014
Total Village
SPECIAL SERVICE AREA NO. 5
SSA #5
Net
2013 2013
Levy Abatement Levy
2%
Provision Total
Loss and 2013
Costs Extension
9,162,294
0
9,162,294
183,246
9,345,540
340,000
0
340,000
6,800
346,800
2,891,134
47,724
2,843,410
56,868
2,900,278
2,433,074
42,742
2,390,332
47,807
2,438,139
417,263
0
417,263
8,345
425,608
380,725
0
380,725
7,615
388,340
160,023
43,005
117,018
2,340
119,358
786,378
0
786,378
15,728
802,106
54,095
0
54,095
1,082
55,177
453,196
453,196
0
0
0
471,000
0
471,000
9,420
480,420
17,549,182
586,667
16,962,515
339,254
17,301,769
1,515,464 0 1,515,464 30,309 1,545,773
INCREASE /(DECREASE) FROM PRIOR YEAR
2012 2013 % Change
Village Corporate 16,477,872 17,301,769 5.00%
Special Service Area No. 5 1,545,773 1,545,773 0.00%
Total 18,023,645 18,847,542 4.57%
H:\ACCT\BUDGET\Budget 2014 \Q1 and Mid -Year Review \Proposed 2014 Levy.xlsx
VILLAGE OF MOUNT PROSPECT
PROJECTED 2014 PROPERTY TAX LEVY
VILLAGE CORPORATE
General Corporate Fund
Refuse Fund
Police Pension Fund
Firefighters' Pension Fund
Debt Service Funds
Series 2009
Series 2009B
Series 2009C
Series 2011 B
Series 2012
Series 2013
Series 2014
Total Village
SPECIAL SERVICE AREA NO. 5
Net
2014 2014
Levy Abatement Levy
2%
Provision Total
Loss and 2014
Costs Extension
9,867,546
0
9,867,546
197,351
10,064,897
0
0
0
0
0
3,093,513
48,884
3,044,629
60,893
3,105,522
2,603,389
43,780
2,559,609
51,192
2,610,801
417,262
0
417,262
8,345
425,607
383,350
0
383,350
7,667
391,017
174,272
42,766
131,506
2,630
134,136
789,746
0
789,746
15,795
805,541
54,095
0
54,095
1,082
55,177
369,956
369,956
0
0
0
471,000
0
471,000
9,420
480,420
18,224,129
505,386
17,718,743
354,378
18,073,121
SSA #5 1,515,464 0 1,515,464 30,309 1,545,773
PROJECTED INCREASE /(DECREASE) FROM PRIOR YEAR
2013 2014 % Change
Village Corporate 17,301,769 18,073,121 4.46%
Special Service Area No. 5 1,545,773 1,545,773 0.00%
Total 18,847,542 19,618,894 4.09%
H:\ACCT \BUDGET \Budget 2014 \Q1 and Mid -Year Review \Proposed 2014 Levy.xlsx
Village of Mount Prospect
Property Tax Levy History
Total Annual Levy
General Corporate
Refuse
Police Pension
Fire Pension
Debt Service
Total
% of Total Levy
General Corporate
Refuse
Police Pension
Fire Pension
Debt Service
Total
% Increase from PY
General Corporate
Refuse
Police Pension
Fire Pension
Debt Service
Total
2009-2013
2009 2010 2011 2012 2013
8,044,484
6,921,545
7,521,422
7,854,269
9,345,540
1,785,000
1,785,000
1,838,550
1,893,707
346,800
2,055,987
2,516,878
2,484,780
2,612,079
2,900,278
1,767,533
2,183,477
2,225,356
2,339,366
2,438,139
1,541,634
1,787,738
1,782,246
1,778,451
2,271,012
15,194,638
15,194,638
15,852,354
16,477,872
17,301,769
52.9%
45.6%
47.4%
47.7%
54.0%
11.7%
11.7%
11.6%
11.5%
2.0%
13.5%
16.6%
15.7%
15.9%
16.8%
11.6%
14.4%
14.0%
14.2%
14.1%
10.1%
11.8%
11.2%
10.8%
13.1%
100.0%
100.0%
100.0%
100.0%
100.0%
3.5%
-14.0%
8.7%
4.4%
19.0%
0.0%
0.0%
3.0%
3.0%
-81.7%
32.5%
22.4%
-1.3%
5.1%
11.0%
15.4%
23.5%
1.9%
5.1%
4.2%
-15.9%
16.0%
-0.3%
-0.2%
27.7%
4.99%
0.00%
4.33%
3.95%
5.00%
Average Increase in Total Levy - 2009 -2013
3.65%
Year by Year Increase to Tax Levy
5.50%
5.00%
4.50%
4.00%
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
H:WCCT\BUDGET\Budget 2014 \Q1 and Mid -Year Review \Proposed 2014 Levy.xlsx
2009 2010 2011 2012 2013