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Home My WebLink About3.) 2015 Proposed Property Tax LevyIlk Mount VT'QSpeCL Village of Mount Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO. DAVID STRAHL, ACTING VILLAGE MANAGER FROM: FINANCE DIRECTOR DATE: APRIL 24, 2015 SUBJECT: PROPOSED 2015 PROPERTY TAX LEVY The Forecast Budget for 2016 included a projected amount for property taxes to be derived from the 2015 property tax levy. Included with this memo for your review are the projected 2015 levy and additional levy alternatives. Also included for reference are the final 2014 levy and a levy history for the period 2004 - 2013. Below are a few points on each of these items to help facilitate discussion at the April 28, 2015 financial planning workshop. Final 2014 Levy Corporate Levy - The total extended levy for 2014 was $17,730,922. This represented an increase of $429,155, or 2.48% from the prior year. The levy is set for the purpose of funding debt service, police and fire pensions and general municipal services. The general portion of the levy increased by 7.7% and the refuse portion was eliminated. The portion of the levy for police pension contributions remained at the prior year level while the fire pension contribution increased by 2.3%. The debt service levy increased less than 1.0%. The reason for the larger than typical increase to the general portion was due to a reallocation of the levy for refuse service. While individual components of the levy moved by a greater amount than typical, the overall increase remained just 2.48%. Increases to the tax levies for 2010 through 2013 are shown below. 2010 0.00% 2011 4.33% 2012 3.95% 2013 5.00% Special Service Area #5 Levy - The total extended levy for 2014 was $1,545,773. There was no increase in the special service levy from the prior year. Projected 2015 Levy and Levy Alternatives Corporate Levy - This projected levy for 2015 reflected in the 2016 Forecast Budget shows an increase of 4.21 % from the 2014 levy and totals $18,476,699. Please note that while this was the levy included in the 2016 Forecast Budget, it is by no means final. It is only presented as a stepping off point for budget discussion purposes. 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 increase by 7.0% so the levy amount is being increased accordingly. The general portion increased 3.5%. The total rate increase of the proposed 2015 levy of 4.21 % falls within the self- imposed limits of between 3.5% and 5.0%. -1- Proposed 2014 Property Tax Levy April 23, 2015 Page 2 of 2 Two additional levy alternatives have been included to illustrate impacts on the 2016 forecast budget and to generate discussion. If the levy were permitted to grow by 2.5% instead of the 4.21 % originally projected, a reduction of $298,000 in revenue will occur and the 2016 forecast budget will be projected to have a deficit of $227,931. If no levy increase were permitted, a reduction of $735,000 in revenue will occur and the forecast budget deficit grows to $664,931. The accompanying shortfalls would have to be made up in expenditure cuts and/or increased revenue estimates. Special Service Area #5 Levy — The proposed levy for 2015 again will be $1,545,773. The final year of the levy for SSA #5 is 2017. Property Tax Levy History A table showing the ten-year history of the property tax levy is included with this memo. The table includes the General Fund levy allocation, total levy allocation, and General Fund results of operations with fund reserve amounts. The average annual increase in the levy from 2004- 2013 is 4.15%, right at the mid-range of the self-imposed limits of 3.5% and 5.0%. This information should provide a good stepping -off point for discussion. A more detailed presentation on the proposed property tax levy for 2015 will be made at that time. Let me know if you have any questions. David O. Erb Finance Director DOE/ I:\Property Taxes\2015 Levy\April 2015 Workshop - Proposed 2015 Levy.docx —2— Village of Mount Prospect, Illinois General Fund - Revenues and Expenditures 2016 Forecast Excess of Revenues over Expenditures 124,585 70,069 (227,931) (664,931) H:\ADMNWdministration\Budget By Year\Budget 2016\General Fund Forecast 2016.xlsx -3- 2015 2016 Forecast Current Levy Levy Levy Projections @ 4.21% @ 2.50% @ 0.00% Revenues: Property Taxes - General 9,91.4„00) 10,261,060 9,963,000 9,526,000 Property Taxes - Pensions 5,296,000 5,671,000 5,671,000 5,671,000 Property Taxes - Other 217,500 220,000 220,000 220,000 Other Taxes 7,557,566 7,619,000 7,619,000 7,619,000 Licenses, Permits, Fees 1,256,000 1,206,000 1,206,000 1,206,000 Intergovernmental 20,125,604 20,572,800 20,572,800 20,572,800 Charges for Services 1,683,223 1,660,600 1,660,600 1,660,600 Fines and Forfeits 439,000 439,000 439,000 439,000 Investment Income 5,918 6,000 6,000 6,000 Reimbursements 220,000 222,000 222,000 222,000 Other Revenue 246,000 250,000 250,000 250,000 Other Financing Sources 20,000 20,000 20,000 20,000 Total Revenues 46,980,811 48,147,400 47,849,400 47,412,400 Expenditures Public Representation 635,574 661,036 661,036 661,036 Village Administration 3,517,712 3,596,466 3,596,466 3,596,466 Finance Department 1,958,096 2,017,574 2,017,574 2,017,574 Community Development Dept. 2,347,767 2,379,087 2,379,087 2,379,087 Human Services Dept. 1,067,027 1,073,748 1,073,748 1,073,748 Police Department 16,554,256 17,022,027 17,022,027 17,022,027 Fire Department 12,979,579 13,382,328 13,382,328 13,382,328 Public Works Department 7,749,759 7,898,449 7,898,449 7,898,449 Pensions 46,456 46,616 46,616 46,616 Total Expenditures 46,856,226 48,077,331 48,077,331 48,077,331 Excess of Revenues over Expenditures 124,585 70,069 (227,931) (664,931) H:\ADMNWdministration\Budget By Year\Budget 2016\General Fund Forecast 2016.xlsx -3- VILLAGE OF MOUNT PROSPECT AND THE MOUNT PROSPECT PUBLIC LIBRARY 2014 PROPERTY TAX LEVY SPECIAL SERVICE AREA NO. 5 1.515,464 0 1,515;464 30,309 1;545.773 2013 Total Levy Amount 17,301,767 Increase Over Prior Year 2014 17,730,922 429,155 2.48% @ 98.5% 2015 Budaet 9,914,000 2,840,000 2,456,000 419,000 385,000 132,000 793,000 54,000 471,000 17,464,000 1,530,000 I:1Property Taxes\2014 Levy\Proposed 2015 Levy - 2016 Forecast Budget.xlsx -4- 2% Net Provision Total 2014 2014 Loss and 2014 Levy Abatement Levy Coss Extension VILLAGE OF MOUNT PROSPECT General Corporate Fund 9,867,546 0 9,867,546 197,351 10,064,897 Police Pension Fund 2,878,000 51,675 2,826,325 56,527 2,882,852 Firefighters' Pension Fund 2,490,000 45,825 2,444,175 48,884 2,493,059 Debt Service Funds Series 2009 417,262 0 417,262 8,345 425,607 Series 2009B 383,350 0 383,350 7,667 391,017 Series 2009C 174,272 42,766 131,506 2,630 134,136 Series 2011 B 789,746 0 789,746 15,795 805,541 Series 2012 54,095 0 54,095 1,082 55,177 Series 2013 369,956 369,956 0 0 0 Series 2014 469,250 0 469,250 9,385 478,635 Total Village 17,893,477 510,222 17,383,255 347,667 17,730,922 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 17,893,477 510,222 17,383,255 347.667 17,730,922 SPECIAL SERVICE AREA NO. 5 1.515,464 0 1,515;464 30,309 1;545.773 2013 Total Levy Amount 17,301,767 Increase Over Prior Year 2014 17,730,922 429,155 2.48% @ 98.5% 2015 Budaet 9,914,000 2,840,000 2,456,000 419,000 385,000 132,000 793,000 54,000 471,000 17,464,000 1,530,000 I:1Property Taxes\2014 Levy\Proposed 2015 Levy - 2016 Forecast Budget.xlsx -4- SPECIAL SERVICE AREA NO. 5 1.515,464 0 1.515.464 30,309 1,545,773 1,530,000 2014 Total Levy Amount 17,730,922 Increase Over Prior Year -5- 2015 18,476,699 745,777 4.21% I:\Property Taxes\2015 Levy\Proposed 2015 Levy.xlsx VILLAGE OF MOUNT PROSPECT AND THE MOUNT PROSPECT PUBLIC LIBRARY FORECAST - 4.21 % 2015 PROPERTY TAX LEVY @ 98.5% 2% Net Provision Total 2015 2015 Loss and 2015 2016 Levy Abatement Levy Costs Extension Budcet VILLAGE OF MOUNT PROSPECT General Corporate Fund 10,213,000 0 10,213,000 204,260 10,417,260 10,261,000 Police Pension Fund 3,077,168 53,000 3,024,168 60,483 3,084,651 3,038,000 Firefighters' Pension Fund 2,662,267 47,000 2,615,267 52,305 2,667,572 2,628,000 Debt Service Funds Series 2009 417,262 0 417,262 8,345 425,607 419,000 Series 20098 385,725 0 385,725 7,715 393,440 388,000 Series 2009C 187,933 41,200 146,733 2,935 149,668 147,000 Series 2011B 787,610 0 787,610 15,752 803,362 791,000 Series 2012 54,095 0 54,095 1,082 55,177 54,000 Series 2013 369,956 369,956 0 0 0 0 Series 2014 470,550 0 470,550 9,411 479,961 473,000 Total Village 18,625,556 511`156 18j14,410 -352,289 13,476,699 18,199,000 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 18,625,566 511,156 18,114,410 362.289 18,476,699 SPECIAL SERVICE AREA NO. 5 1.515,464 0 1.515.464 30,309 1,545,773 1,530,000 2014 Total Levy Amount 17,730,922 Increase Over Prior Year -5- 2015 18,476,699 745,777 4.21% I:\Property Taxes\2015 Levy\Proposed 2015 Levy.xlsx VILLAGE OF MOUNT PROSPECT AND THE MOUNT PROSPECT PUBLIC LIBRARY FORECAST -2.50% 2015 PROPERTY TAX LEVY @ 98.5% VILLAGE OF MOUNT PROSPECT General Corporate 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 MOUNT PROSPECT PUBLIC LIBRARY Library Operations Library Debt Service Total Library TOTAL - VILLAGE OF MOUNT PROSPECT AND PUBLIC LIBRARY 18,328,566 511,156 17,817,410 356,349 18,173,759 SPECIAL SERVICE AREA NO. 5 1,515,464 0 1.515,464 30,309 1,545,773 2014 2015 Total Levy Amount 17,730,922 18,173,759 Increase Over Prior Year 442,837 2.50% -6- 1,530,000 I:\Property Taxes\2015 Levy\Proposed 2015 Levy.xlsx 2% Net Provision Total 2015 2015 Loss and 2015 2016 Lew Abatement Levy Costs Extension Budoet 9,916,000 0 9,916,000 198,320 10,114,320 9,963,000 3,077,168 53,000 3,024,168 60,483 3,084,651 3,038,000 2,662,267 47,000 2,615,267 52,305 2,667,572 2,628,000 417,262 0 417,262 8,345 425,607 419,000 385,725 0 385,725 7,715 393,440 388,000 187,933 41,200 146,733 2,935 149,668 147,000 787,610 0 787,610 15,752 803,362 791,000 54,095 0 54,095 1,082 55,177 54,000 369,956 369,956 0 0 0 0 470,550 0 470,550 9,411 479,961 473,000 15,328.566 511,156 17,017.410 356,349 18,173,759 17,901,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 18,328,566 511,156 17,817,410 356,349 18,173,759 SPECIAL SERVICE AREA NO. 5 1,515,464 0 1.515,464 30,309 1,545,773 2014 2015 Total Levy Amount 17,730,922 18,173,759 Increase Over Prior Year 442,837 2.50% -6- 1,530,000 I:\Property Taxes\2015 Levy\Proposed 2015 Levy.xlsx VILLAGE OF MOUNT PROSPECT AND THE MOUNT PROSPECT PUBLIC LIBRARY FORECAST -0.00% 2015 PROPERTY TAX LEVY 2% Net Provision Total 2015 2015 Loss and 2015 Levy Abatement Levy Costs Extension VILLAGE OF MOUNT PROSPECT General Corporate Fund 9,481,846 0 9,481,846 189,637 9,671,483 Police Pension Fund 3,077,168 53,000 3,024,168 60,483 3,084,651 Firefighters' Pension Fund 2,662,267 47,000 2,615,267 52,305 2,667,572 Debt Service Funds Series 2009 417,262 0 417,262 8,345 425,607 Series 20098 385,725 0 385,725 7,715 393,440 Series 2009C 187,933 41,200 146,733 2,935 149,668 Series 2011 B 787,610 0 787,610 15,752 803,362 Series 2012 54,095 0 54,095 1,082 55,177 Series 2013 369,956 369,956 0 0 0 Series 2014 470,550 0 470,550 9,411 479,961 Total Village 17,894,412 5 i 1,156 17,383,256 347,666 17,730,922 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 17,894,412 511,156 17,383,256 347,666 17,730,922 SPECIAL SERVICE AREA NO. 5 1,515,464 0 1,515,464 30,309 1,545,773 2014 2015 Total Levy Amount 17,730,922 17,730,922 Increase Over Prior Year - -7- 0.00% @ 98.5% 2016 Budget 9,526,000 3,038,000 2,628,000 419,000 388,000 147,000 791,000 54,000 0 473,000 1,530,000 IAProperty Taxes12015 LevyXProposed 2015 Levy.xlsx o LLOl o .1 9 O1 M Vt N Ot N a .R °�n a w ami o td o vi o m mNtirna a M M N 1D .8mm pp w o ao tp a o Na to a mm N n Op fV 1D a m M �p OI L o V N n Ing'^ v v m N oMo vei n w O o Q C o0 mm m 1 O OI N N O1' NN ry r01 c a O s N N N A n o00 b W C W n 1D T r V1m N ri r `° N m `- O uaoi vmi s 0 OMi N H e•1 e0•I n ftl O W tp N a Ot n Vt c -I N o m ti m ti W � C o o p RI a-1 N O V w N � V -' V N OI �•{ N a N y N ro � W OM1 m n 01 O N n m N W m W W O O 4Ry C @ Or ON 001 H j _ A a p m a .. 10 N N O .moo N a W W w m r 71 0 mn m' uMrl mm m iJi u m b o lma M m •. �a 6c6Lr ,7N m a Qm o n 10 pf i O A N N g .oi E N i Na c N N °po�a�tmp� p N 1rA VOl M N N Cr o M o N O 1 tf'1 m N VT O1 Vmi OM1 n OOQ1 oo y eVOe��ff 11] N O W rn O�ppt tT � z O N Ir M ui N N Qp N a O ivi gli E �• o a N oma N~m W n .I O lV 00 a =a= C runtN n M m N v o m A o M m u Q p 7V VO11 umi lM0 iit! oo tp 0 S C N M H w O CO N G N 10 b riry In�O a m o v"'i a W ryj N q � C a} Oy�p ti M 0 e aE N u Mo n � oo ao I o N p R ,tim Cp tl1 8 y .-f ri oo N t G Ma Ot � O O�m O1 OI .1 9 M N ee., .R °�n Ol } N VI m VI e V M n m N M M m mNtirna o M M N 1D .8mm pp w o ao tp a o Na to a mm N n Op fV M e L o V N n Ing'^ v v m N oMo vei i mmmvoA C mm m m^� O1' NN ry o O N N A n 1D o 0 m V N�]1 N W� m 60 s 0 OMi N H e•1 e0•I n ftl O W tp W W a Vt Ot n Vt c -I N 1p N N N' 1 tY m V e m N y N N o M V W OM1 N n N N O C d� RI N OI W' n M j _ A Vj N W O .moo C W W w m r a mf, a mn m' fp w M w ; G a N C OI M Ono X s< N °po�a�tmp� o N Cr o M o N N N o 0 N O O w pp N o M m M N 1a n Ol } N VI m VI e V M n m N M M m N n M M M N 1D O m m N N rl.6 z l/1a N V � r, M Op fV O1 a 1/1 L o V N n ccoo v v m N oMo n N r o N o 0 m V N�]1 N W� m 60 iO O O OMi N H e•1 e0•I n ftl O W tp W W a Vt Ot n Vt c -I 1p N N N' 1 tY CC o a w m oro mm m a o .moo aom�nw i oanomID cn q v :tn e mf, a mn m' u'ii 00 mLq NN ao H ni .a .•c ul' a N a M s< N °po�a�tmp� o Cr o M o N N N V m m a N ng oo VMI N W I ti m p j C M O N Ir M ui N N � .-i .ti .a N a O ivi v �• o N W n .I O lV 00 a p� ems' n VI o 7V VO11 umi lM0 iit! 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