Loading...
HomeMy WebLinkAbout1.) 2014 Year-End ResultsVILLAGE OF MOUNT PROSPECT FINANCIAL PLANNING WORKSHOP APRIL 289 2015 Village of Mount Prospect, Illinois Total Village Budget - Revenues and Expenditures 2014 Year -End Results Revenues: Property Taxes Other Taxes Licenses, Permits, and Fees Intergovernmental Revenue Charges for Services Fines and Forfeits Investment Income Reimbursements Other Revenue Other Financing Sources Total Revenues Expenditures: Personal Services Pension Benefits Contractual Services Insurance Commodities and Supplies Other Expenditures Bond Principal and Interest Capital Interfund Transfers Total Expenditures Excess of Revenues over Expenditures 2014 2013 Amended 2014 Change from Actual Budget Actual Prior Year 20,497,260 21,464,466 21,264,473 767,213 12, 881, 805 13, 899, 500 13, 987, 321 1,105, 517 2,789,492 2,723,000 2,675,472 (114,019) 21,239,487 23,603,433 23,601,027 2,361,541 25,121,659 27,527,978 26,682,959 1,561,301 651,778 841,100 862,467 210,689 14,553,731 6,623,900 7,963,880 (6,589,851) 457,471 433,000 829,861 372,390 9,032,595 9,338,966 9,363,714 331,119 10,092,327 6,670,000 6,667,729 (3,424,598) 117,317,604 113,125,343 113,898,903 (3,418,701) 40,204,452 42,137,064 41,837,486 1,633,035 7,759,822 8,338,828 8,322,408 562,586 19,808,508 21,330,205 20,688,634 880,126 7,389,329 9,265,652 7,871,963 482,634 1,776,546 2,121,678 1,847,247 70,701 2,915,111 3,182,550 3,026,574 111,463 4,051,751 5,953,378 5,916,741 1,864,990 11,967,894 20,670,721 15,160,826 3,192,933 289,976 - - (289,976) 96,163,388 113,000,076 104,671,879 8,508,491 21,154,216 125,267 9,227,024 -1- 2014 Year -End Results Total Village Budget - Results for the 2014 budget ended up stronger than expected due to solid growth in a few revenue categories and departmental spending coming under budget. In the instances where there was a decrease in revenue, the impact was due to extraordinary interest earnings in the prior year (as was the case for pensions) or where fewer bonds were issued. The region experienced the third snowiest winter ever recorded during the winter of 2013-2014. While additional expenses for manpower, equipment, and additional salt purchases were incurred during 2014, the fiscal impact was absorbed through prudent fiscal management and did not impact other Village operations. In addition, another straight line wind event occurred on September 5, 2014 which resulted in many downed trees and power outages for about 48 hours to the northeastern section of the Village. Public Works crews worked a week of twelve hour days to clear all the downed trees and tree debris. The economic recovery continues, albeit at a more deliberate pace. The growth in revenue that has occurred is not expected to fund the natural growth of expenditures long-term. The growth in personnel costs continue to be the primarily factor in expenditure growth. The labor contracts that were completed in 2012 and 2013 continue to provide a measure of personnel expenditure predictability through 2015 and 2016 depending on the contract. Year-end results from the 2014 Budget show total revenues of $113,898,903. This represents a decrease of $3.4 million, or 2.9% from the prior year. Decreases in the revenue categories of investment income and other financing sources attributed significantly to the overall drop in revenue. Investment income related to public safety pensions decreased by $6.6 million and other financing sources, consisting of general obligation bonds, decreased by $3.4 million. Revenue growth over the prior year was seen in the intergovernmental, charges for service, and other tax categories. Intergovernmental revenue grew by $2.4 million primarily as a result of the first time inclusion of debt service transfers from the Library totaling $1.6 million. Sales taxes in the General Fund grew $943,000 from the prior year. The charges for service category increased $1.6 million from the prior year due to increases implemented for water service ($470K) and refuse collection ($740K). Internal service fees charged back to the departments for medical, liability and life insurance increased $350,000 from the prior year. Contributors to the increase in other taxes category totaling $1.1 million include the gas utility tax, hotel/motel tax and the home rule sales tax. Included below is a pie chart illustrating contributions to total village revenues by major revenue category. 2014 Total Village Revenue $6,667,729 $9,363,714 $21,264,473 Property Taxes $829,861 y,' � OtherTaxes $7,963,880 Licenses, Permits, and Fees i $862,467 ■ Intergovernmental Revenue Charges for Services $13,987,321 Fines and Forfeits :Investment Income $2,675,472 Reimbursements $26,682,959 ""' Other Revenue Other Financing Sources $23,601,027 —2— 2014 Year -End Results Total expenditures for the 2014 budget were $104,671,879, an increase of $8.5 million from the prior year. The increase is primarily due to capital projects for streets being completed during the year. Total spending on capital during the year was $15.2 million versus the $1.2.0 million spent the year earlier. An increase in the bond principal/interest category is the result of having added the debt service transfers from the Library totaling $1.6 million. All other expenditure categories, including personal services and insurance, grew by $3.5 million or 4.3%. Included below is a pie chart illustrating contributions to total village expenses by major revenue category. $15,160,8: $5,916,741 $3,026,574 $1,847,247 $ 7,871, 2014 Total Village Expenses $20,688,634 17,486 ■Personal Services ■ Pension Benefits Contractual Services ■[Insurance NCommodities and Supplies ■ Other Expenditures ,,!Bond Principal and Interest Capital 122,408 A partial list of significant activities and notable achievements in 2014 include: ■ ECONOMIC DEVELOPMENT continues to see significant activity in the community. CVS/Caremark won an Eddie Award for being one of the top 6 economic development projects in the State for their new facility. Randhurst continues to see new tenants locate within the shopping center with Nothing Bundt Cakes, Naf Naf Grill, Maurices, Famous Footwear, Massage Envy, Orange Fitness Theory and Truco Taqueria all announcing or opening retail locations. Elsewhere along Rand Road Fresh Thyme opened its first Illinois store in April, Menards started construction on the expansion of their existing facility, and Mount Prospect Plaza received zoning approval to add additional retail space to the center. Anytime Fitness and the Village Inn Pizzeria opened new locations at the northeast corner of Euclid and Wolf. In the Downtown area, activity remains robust with both Starbucks and Subway relocating, completion of Founders Row, construction of brownstones at 701 E Prospect, and the redevelopment of the Tri-State Electronics parcel. A 92 -unit senior independent living facility was opened by Alden in September fulfilling a long stated need of the community for additional senior housing facilities. Additionally, staff has had preliminary discussions on the potential redevelopment of the Golf Plaza II shopping center. • The POLICE DEPARTMENT continued meeting its mission of providing quality law enforcement services to our citizens with pride, integrity, and professionalism. The Department saw significant staffing changes in 2014 with the retirements of the Police Chief, a Deputy Chief, a Commander, a Sergeant, and two Patrol Officers. The Department's succession plan worked seamlessly with the promotion of a new Chief of Police, two Deputy Chiefs, a Commander, three Sergeants, and the hiring of six new Patrol Officers. —3— 2014 Year -End Results The Department continued to 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 interventions, and advanced management training for the Department's leadership team. The Crime Prevention Unit expanded the Department's presence on social media, actively disseminating Department information on Facebook, Twitter, and YouTube. The Department re-established its Citizen's Police Academy, providing residents with information about Department operations. Through intensified enforcement efforts, public education, and comprehensive investigative techniques, the Department continued to reduce the number of Part I and Part II crimes committed in the Village. The FIRE DEPARTMENT updated and reorganized all of its web pages on the Village website in 2014 and conducted a new hire test to ensure the Department has a list of qualified candidates when the current list expires in January 2015. The EMS Coordinator developed a comprehensive Health Insurance Portability and Accountability Act (HIPAA) Plan covering all Fire Department employees. Staff in all divisions also received HIPAA training, to ensure compliance with new regulations. The Department's Apparatus Committee was busy from March until August developing specifications for a new fire engine, which will be placed in service at Station 12 early next year. In June, the Department was notified that it was awarded a grant from the Firehouse Subs Public Safety Foundation for approximately $22,000 to provide an Automatic External Defibrillators (AED) to all faith -based organization locations within the Village. The HUMAN SERVICES DEPARTMENT saw significant staffing changes in 2014. The Department Director retired after twenty-nine years of service and was replaced by an internal promotion. The Department also filled a Police Counseling position and an Intake Coordinator/Receptionist position. A new method of recording and tracking department service statistics was developed and implemented. Various Department staff members received training in crisis intervention, domestic violence, adult protective services and FOID mental health reporting. The Medical Reserve Corps was awarded the Ambassador's Award for their public health initiatives. The Community Connections Center received Community Development Block Grant funding which is utilized to provide programming to low and moderate income families. ■ The Village Board addressed shortfalls in the STREET IMPROVEMENT PROGRAM by approving a $6.5 million bond sale to fund the resurfacing of 13.3 miles of backlog streets. The bond sale in conjunction with the street funding plan approved in 2013 allowed the Village to complete the resurfacing of all 13.3 miles of backlog streets and complete the annual street program for a total of 18.9 miles of resurfaced streets. ® One of the Village's most prominent landmarks, the ELEVATED WATER TANK, received maintenance and new paint in 2014. Last painted in 1993, the elevated tank, with a capacity of one million gallons, received a new painted surface inside and out that included a new fanciful script lettering of "Village of Mount Prospect, Incorporated in 1917." ■ The Village completed the second year of an eight year program to rehabilitate each of the eight SANITARY SEWER RELIEF STATIONS located along Weller Creek. The relief stations are used to provide relief to the Village sanitary sewer system when (MWRDGC)-Metropolitan Water Reclamation District of Greater Chicago interceptor sewers become surcharged. In 2014, George Street South relief station was replaced with a new pump station including the installation of new pumps, guide rails and controllers, along with all associated wiring and other electrical control equipment. The total project cost is projected to be approximately $185,000. -4- 2014 Year -End Results ■ 2014 saw the completion of the tenth year of a 10 -year commitment to rehabilitate approximately 260,000 LF of COMBINED SEWER MAINS ranging in size from 8" to 72" diameter. With the $5 a month customer charge Sewer Construction fee due to expire at the end of 2015, focus was turned to reevaluating the remaining Category 1-3 pipe that has not been rehabilitated. Approximately 190,000 lineal feet of pipe was televised and assessed with recommendations for future rehabilitation to be presented to the Village Board in spring 2015. In total, during the first nine years of this program, 76,891 linear of feet of pipe has been repaired using cured -in-place pipe (CIPP) technology and 1,460 linear feet of pipe has been replaced. One hundred percent of all Category 4 and 5 defects and 30% of category 3 defects have been repaired to date. Total water and sewer funds expended during 2014 are projected to be approximately $800,000. ■ The Village completed engineering design services for Phase II of the FLOOD CONTROL PROJECTS that were identified by a comprehensive flood study that grew out of the 2011 flooding events. Phase II (Isabella Sewer) improvements to be constructed in 2015 will include the installation of large diameter relief sewer with the intended benefit of providing properties protection up to a 25 year rain event level. Phase II improvements are funded through a $10 million bond sale in 2013. ■ 2014 was another devastating year for the Village's URBAN FOREST. A myriad of threats continued to converge during the year resulting in a dramatic number of parkway tree removals. During the year, 1,200 Village -owned trees were lost to Dutch Elm Disease, Elm Yellows, Emerald Ash Borer, other diseases, and natural decline. Historically, only about 400 trees are lost in a typical year. Through efficient utilization of resources and tight fiscal management, the Village has been able to keep pace with the increased volume of removals. In addition, due to the availability of Village funds and low market prices, the Village was able to plant 900 replacement trees — one of our largest plantings ever. ■ In addition to fighting the advancement of EAB, the Village was hit by a severe thunderstorm on the afternoon of September 5. The storm featured winds in excess of 50 mph. Public Works crews spent a week of 12 -hour days clearing debris and performing house-to-house collection of limbs and brush in the wake of the storm. ■ SEVERE WEATHER did once again visit the Village by way of a record setting winter season that saw the Village receive over 70 inches of snow making the 2013/2014 winter season rank third in terms of amount of snow received (Winters of 1977/78 and 1978/79 rank one and two, respectively). In addition to the significant snow totals, the Chicago Metropolitan area also endured record cold with the Village recording over 30 days in which temperatures fell below 0 degrees. The combination of record snowfall and the "Polar Vortex" was an unprecedented combination of weather. The Public Works Department applied record amounts of road salt and super mix anti -icing liquid during the winter season; applying approximately 6,000 tons of salt and 50,000 gallons of super mix anti -icing agent to roadways during the winter season. The effects of the 2013/14 winter season did not end in the spring with regional salt stores depleted the Village faces a 44% increase in salt prices and potential shortages of salt through the impending winter season. ■ The roads were not alone in bearing the brunt of the severe winter weather. At approximately 11:30 PM on January 7, 2014, a FIRE SPRINKLER HEAD installed above the ceiling adjacent to the west wall of the Executive Conference Room on the third floor of the Village Hall broke due to exposure to extreme cold weather. The sprinkler head was installed near the exterior envelope of the building and was particularly susceptible to the cold weather and wind gusts. Q•72 2014 Year -End Results The break subsequently triggered activation of the fire pump resulting in a prolonged pressurized water discharge that inundated the Executive Conference Room, adjacent hallway, and a portion of the Village Board Room. Water from the sprinkler system also traveled down the west stairwell and through floor joints to damage office spaces, storage rooms, and hallways on the second floor (Human Services Department) and the first floor (Finance Department). Water also reached the bottom of the west stairwell and caused limited damage to the carpeting in the Information Technology Division main office space. Total cost to repair the damage was $171,343.47 with insurance covering $128,664.43. -6- Village of Mount Prospect, Illinois General Fund - Revenues and Expenditures 2014 Year -End Results Revenues: Property Taxes Sales Taxes - ROT Portion Sales Taxes - HMR Portion Food and Beverage Tax Real Estate Transfer Tax Telecommunications Tax Other Utility Taxes Other Taxes Vehicle Licenses Other Licenses, Permits, Fees State Income Tax Other Intergovernmental Charges for Services Fines and Forfeits Investment Income Other Revenue Total Revenues Expenditures Public Representation Village Manager's Office Television Services Division Village Clerk's Office Finance Department Community Development Dept. Human Services Dept. Police Department Fire Department Public Works Department Emergency Events Miscellaneous Total Expenditures Excess of Revenues over Expend. Other Financing Sources/Uses Transfers In Transfers Out Total Other Financing Uses Excess of Revenues over Expend. and Other Financing Uses: 2013 Actual 12,734,443 12, 342,154 1,285,012 719,190 853,617 2,168,091 1,723,621 221,281 1,399,010 2,050,366 5,161,051 1,538,909 1,559,750 439,405 6,567 830,936 45,033,402 2014 Amended Budget 14,674,466 13,271,000 1,346,000 810,000 955,000 2,100,000 1,851,000 255,500 340,000 2,044,000 5,185,000 1,658,100 1,661,000 486,000 22,500 729,500 47,389,066 2014 Actual 14,602,584 13,285,441 1,355,373 738,642 954,644 2,208,291 1,885,305 278,863 340,344 2,027,125 5,186,155 1,657,322 1,630,607 479,647 -64,970 722,516 47,287,887 Budget Variance - Favorable (Unfavorable) -71,882 14,441 9,373 -71,358 -357 108,291 34,305 23,363 344 -16,875 1,155 -778 -30,393 -6,353 -87,470 -6,984 -101,179 550,880 641,321 564,093 77,228 2,817,368 2,920,208 2,777,002 143,206 169,139 181,176 177,750 3,426 198,945 219,574 211,394 8,180 1,843,581 2,094,374 2,007,010 87,364 2,023,299 2,332,932 2,241,264 91,668 1,061,125 1,105,836 1,049,674 56,162 15,783,922 16,817,251 16,578,938 238,313 12,678,982 13,202,787 13,166,939 35,848 7,137,785 7,699,954 7,358,200 341,754 204,860 135,000 142,283 -7,283 46,150 46,301 46,300 1 44,516,036 47,396,714 46,320,848 1,075,867 517,366 -7,648 967,040 0 0 0 -203,112 0 0 -203,112 0 0 314,254 -7,648 967,040 -7- 2014 Year -End Results General Fund — The 2014 General Fund Budget is showing a surplus of $967,040 on revenues of $47,287,887 and expenses of $46,320,848. General Fund revenues came in just $101,179 off the amended budget while expenses came in $1,075,866, or 2.3% 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 2014 Budget show total General Fund revenues of $47,287,887. This represents an increase of $2.3 million, or 5.0% 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 a reallocation of a portion of the levy for refuse collection (as part of the street funding plan). The amount of this reallocation was $1.0 million. There is an equivalent reduction in the license, permit and fee category as vehicle sticker monies previously placed in the General Fund were redirected to the Street Construction Fund. Intergovernmental revenue grew by $1.1 million primarily as a result of growth in sales taxes totaling $943,000. Other taxes saw growth from the prior year as a result of higher than expected real estate activity positively impacting the real estate transfer tax and the much cooler 2013-2014 winter reflected in the increased amount of gas utility tax. 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. $286,389_ $20.000 $416,127-\ $479,647\ 0 $1,691,056 2014 General Fund Revenue $8.1419,885, Property Taxes Other Taxes Licenses, Permits, & Fees Intergovernmental Charges for Services Fines and Forfeits Investment Income Reimbursements Other Revenue $1,638,701 , Other Financing Sources You will notice a credit value for the amount of investment income generated. The credit reflects an accounting adjustment for funds placed in a restricted IMET liquidating fund account. Information had been forwarded to the Village Board in November 2014 regarding defaults in a short-term money market investment fund managed by the Illinois Metropolitan Investment Fund (IMET). The Village holds a limited amount of funds in this money market account. The defaults were caused by fraud on the part of a USDA approved lender. The total amount of village funds that could potentially be impacted is $69,472. Efforts are underway to recoup losses as a result of the fraud. We anticipate that approximately 70% of the funds will be returned to the village via a liquidation of assets of the USDA approved lender. To -date, the village has recovered $3,455 of the loss amount. The amount of the potential loss, while not entirely immaterial, will not have any impact on operations of the Village or its financial condition. Staff will continue to monitor the situation and report back on developments as they occur. —8— 2014 Year -End Results Total expenditures for the 2014 General Fund budget were $46,320,848, an increase of $1.6 million, or 3.6% from the prior year. Normal growth in personnel and related costs as well as for commodities and contractual services accounted for the increase. The following pie chart illustrates a breakdown of General Fund expenses. 2014 General Fund Expenses $1,049,674 $2,241,264, $ 2,053,310 516,578,938 $3,166,147! $13,166,939 $564,093 $7,500,483 Public Representation Village Manager's Office Finance Department Community Development Human Services Police Department Fire Department Public Works Department All of the departments were below the benchmark 50% at mid -year and finished the year under their amended budget. The following chart illustrates General Fund expenditures as a percentage of annual budget at December 31. _ _ I % of Budget Utilized 80.00% 85.00% 90.00% 95.00% 100.00% Public Representation Village Manager's Office Finance Department Community Development Human Services Police Department Fire Department I Public Works Department Cost drivers in the General Fund for 2014 include overtime for the public safety and public works departments, risk management, and flood damage caused by the burst sprinkler head from the January deep freeze. While a majority of the costs to repair the flood damage were recovered through insurance, there were a number of associated costs supported only with general village funds. —9— 2014 Year -End Results Amendments to the original budget included carryover items from the 2013 budget totaling $95,000, personnel related items (including overtime) totaling $754,000, extraordinary flood event totaling $135,000, and contractual service and other expenses totaling $599,000. 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 2010. 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 conditions exists, the savings go toward maintaining the General Fund fund balance. The savings to the 2014 General Fund budget was 2.3%. Year Amended Budget Actual Expenditures Variance _ 2010 $40,961,030 $40,043,801 j (1.98%) 2011 $41,975,978 $40,786,106 (2.83%) 2012 $42,585,149 $41,858,267 (1.71%) 2013 $45,693,626 _ $44,713,148 (2.15%) Including the projected surplus in the General Fund for 2014, reserves to begin 2015 were $12,845,622. These reserves represent a fund balance level of 27.4%. The target benchmark for reserves in the General Fund according to the Village fund balance policy is 25.0%. -10-