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Agenda Item Details
Meeting Jul 11, 2017 - Special Meeting of the Committee of the Whole — Joint Village Board and Finance
Commission Workshop- 7:00 P.M.
Category 4. DISCUSSION ITEMS
Subject 4.1 2016-2018 Budget Review and Preliminary 2017 Property Tax Levy
Type Discussion
Goals
Information
A workshop to review Village finances is part of the overall budget process. At this joint workshop, staff present to
members of the Village Board and Finance Commission results of operations for the prior year along with updates on
the current year's budget and budget forecast. Also discussed is a preliminary look at the upcoming property tax levy.
Other items are added to the workshop agenda as deemed timely and or necessary.
For this year's review a formal presentation has been prepared to guide the Village Board and Finance Commission
through the following items:
1. 2016 Year -End Results
2. 2017 Budget Review
3. 2018 Forecast Budget Update
4. 2017 Preliminary Property Tax Levy
Staff will be on hand to answer questions and facilitate discussion.
Alternatives
1. Board direction on development of 2018 village budget and preliminary 2017 property tax levy.
2. Action at discretion of Village Board.
Staff Recommendation
Staff requests direction on development of 2018 village budget and preliminary 2017 property tax levy.
JULY 2017 REPORT.pdf (3,026 KB)
http://www.boarddocs.com/il/vomp/Board.nsf/Public 1/1
VILLAGE OF
MOUNT PROSPECT, ILLINOIS
2016-2018 Budget Review and
2017 Preliminary Property Tax
Levy
Joint Village Board/
Finance Commission Workshop
Budget Review — 2016-2018
Table of Contents
2016 Year -End Results Page 1
2017 First Quarter Review Page 13
2018 Updated Forecast Budget Page 19
2017 Preliminary Property Page 24
Tax Levy
VILLAGE OF MOUNT PROSPECT
TOTAL VILLAGE BUDGET - REVENUES AND EXPENDITURES
2016 YEAR-END RESULTS
ll:..:XCII:..:SS OF R11:..:VENUIES
OVII::.:R EXPENDITURES 2,300,547 (2,725,779) 5,398,731
...................................................................................................................................................................................................................................................................................................................................
...................................................................................................................................................................................................................................................................................................................................
Actual
Budget
Actual
Change from
2015
..............................................................................................................................................................................................................................................................................................................................................................................................................................................
2016
2016
Prior Year
IRE'VIEINUES
Property Taxes
21,404,361
22,424,000
21,988,659
584,298
Other Taxes
14,305,752
14,208,368
13,983,864
(321,888)
Licenses, Permits, and Fees
3,067,903
3,064,000
3,096,997
29,094
Intergovernmental Revenue
26,187,405
27,502,329
27,999,102
1,811,697
Charges for Services
27,983,964
29,846,533
29,550,468
1,566,505
Fines and Forfeits
725,066
731,100
692,159
(32,907)
Investment Income
2,603,794
8,485,500
7,535,657
4,931,863
Reimbursements
9,155,496
229,500
622,207
(8,533,289)
Other Revenue
9,210,824
9,644,840
9,747,897
537,073
Other Financing Sources
301,171
..............................................................................................................................................................................................................................................................................................................................................................................................................................................
9,805,000
20,540,740
20,239,569
Total (Revenues
114,945,736
..............................................................................................................................................................................................................................................................................................................................................................................................................................................
125,941,170
135,757,751
20,812,015
Ifii'XIh Ifii'.I� 10111"U IR Ifii'S
Personal Services
41,284,086
44,318,416
44,492,997
3,208,911
Pension Benefits
9,171,293
9,744,423
9,716,800
545,507
Contractual Services
21,056,946
24,133,349
22,384,507
1,327,561
Insurance
7,650,114
8,593,266
8,215,320
565,206
Commodities and Supplies
1,632,535
2,206,486
1,706,601
74,066
Other Expenditures
4,482,276
3,678,673
4,397,265
(85,012)
Bond Principal and Interest
6,125,731
16,271,787
25,773,037
19,647,305
Capital
20,960,609
19,144,182
12,034,569
(8,926,041)
Interfund Transfers
281,599
..............................................................................................................................................................................................................................................................................................................................................................................................................................................
576,367
1,637,926
1,356,327
'Total Expenditures
112,645,190
..............................................................................................................................................................................................................................................................................................................................................................................................................................................
128,666,949
130,359,020
17,713,830
ll:..:XCII:..:SS OF R11:..:VENUIES
OVII::.:R EXPENDITURES 2,300,547 (2,725,779) 5,398,731
...................................................................................................................................................................................................................................................................................................................................
...................................................................................................................................................................................................................................................................................................................................
2016 Year -End Results
Total Village Budget - Results for the 2016 budget were positive due to measured, but steady growth in
revenue and savings from budget in all but two expense categories, debt service and transfers. The only
significant decrease in revenue occurred in the Reimbursements category. This decrease was an
accounting adjustment addressing fixed asset additions in the Water and Sewer Fund rather than a true
decrease in receipts. Another anomaly in revenues was related to the refinancing of debt. Two existing
bond issues were refunded during 2016 totaling $20.0 million. The refundings resulted in approximately
$275,000 in interest savings annually.
There were no significant weather events during 2016 that impacted Village expenditures. In fact, a
milder than usual winter provided savings in personnel, commodity and contractual service expense
categories. While the mild winter provided relief to various snow removal related accounts, revenue
from utility taxes was also down offsetting much of the savings. The State's inability pass a budget has in
some ways benefited the Village by allowing local municipalities to hang on to local revenues that are
likely to see a reduction when a new State spending plan is approved. To address this continued
uncertainty at the State level, the village maintains a multi -step contingency plan in the event of
significant revenue loss.
The most significant challenge coming into 2016 was in determining how to address future funding for
the 6 firefighters once hired through the SAFER grant. SAFER grant funding expires in 2018. Staff spent
substantial time in exploring different scenarios and ultimately recommending a dedicated portion of
the future property tax levy be used for this funding. Based on operating results in the General Fund for
2016, there is no longer the need to pursue the additional tax levy. Legislation being considered in
Springfield contemplates placing a temporary (two-year or four-year) freeze on property taxes. In
anticipation of this action the Village has taken steps to protect the levy by limiting the levy categories
to supporting only debt service and public safety salaries and pensions.
Year-end results from 2016 show total revenues of $135,757,751. This represents an increase of $20.8
million, or 18.1% from the prior year. A decrease in the Reimbursement revenue category was offset by
a significant increase in other financing sources (in the form of bond proceeds). Investment income
related to public safety pensions increased by $4.9 million while increases to Intergovernmental
Revenues and Charges for Service increased $1.8 million and $1.5 million respectively. Revenue growth
over the prior year was seen in all categories except Other Taxes, Fines & Forfeits and Reimbursements.
Intergovernmental revenue grew by $1.8 million primarily as a result of higher than expected sales
taxes. Sales taxes in the General Fund grew $865,000 million from the prior year. The charges for service
category increased $1.5 million from the prior year due to increases implemented for water service
($479,000) and refuse collection ($603,000). A number of other revenue sources contributed to the
increases experienced in the remaining revenue categories. Included below is a pie chart illustrating
contributions to total village revenues by major revenue category.
4
$20,5
$9,747,E
2016 Year -End Results
2016 Total Budget - Revenue
$13,983,864
5,997
IM Property Taxes
111111 Other Taxes
IN Licenses, Permits, and Fees
111111 Intergovernmental Revenue
111111111 Charges for Services
NM Fines and Forfeits
11111 Investment Income
Reimbursements
Other Revenue
Other Financing Sources
Total expenditures for the 2016 budget were $130,359,020, an increase of $17.7 million from the prior
year. The increase is primarily due to the issuance of $20.0 million of refunding bonds. The total
spending on capital during the year was $12.0 million versus the $20.9 million spent the year earlier. The
increase in pension benefits are related to added pensioners and increase to the annual public safety
(police and fire) pension benefit payments. Excluding the increases seen in the Bond Principal and
Interest expense accounts, total expenditures would have shown a decrease of $1.9 million from the
prior year. Included below is a pie chart illustrating total village expenditures by major category.
$12,
$25,773,037
$4,397,26
$1,701
2016 Total Budget - Expenditures
$1,637,926
$8,215,320 $22,384,507
3
192,997 IM Personal Services
1111111 Pension Benefits
117 Contractual Services
1111111 Insurance
IIIIIIII Commodities and Supplies
re Other Expenditures
1P Bond Principal and Interest
IIIIII Capital
3,716,800 Interfund Transfers
2016 Year -End Results
The departments completed an active 2016 as elements of the Village's Strategic Plan were addressed.
Below is a summary listing of activities by Departments during the past year.
Community Development:
Received national awards from International Economic Development Council (IEDC) for Mount Prospect
Entrepreneur's Initiative and Business Resource Guide efforts.
Amended sections of Chapters 14 and 15 of the Village Code to include a site plan review process,
downtown design guidelines, updated land use table, and revised transitional setback requirements in
the B5 and 135C Districts. Completed significant amendments of the zoning ordinance (Chapter 14), sign
regulations (Chapter 7), and related Village Code sections in Chapters 15, 16, and 21 to reflect current
Village policies and keep the documents current with national codes. Continued working with the
Regional Transportation Authority (RTA) and Teska Associates to develop the Rand Road Corridor
Plan. The plan will serve as an update to the Village's existing Rand Road Corridor Plan and will reassess
the corridor to address three main goals related to all forms of transportation. Plan will be presented to
the Village Board for their consideration and approval in the fourth quarter of 2016. Continued the
business retention visits, focusing on some of the major employers in the Village including Costco,
Cummins -Allison, and CVS Caremark.
Worked with business owners, property owners and commercial brokers in the Kensington Business
Center (KBC) to address vacancies and aesthetics within the park. The overall vacancy rate dropped to
9% within the park. Supported a Class 7C property tax incentive for the conversion of a former
office/warehouse space into an ice arena at 1501 Feehanville Drive. This property had been vacant for
over 5 years and will be a major regional draw for the community.
The Village welcomed the following new businesses during 2016. Sam's Beauty Supply, Northland
Laboratories and Mount Prospect Ice Arena as new tenants in the KBC. National Technical Systems as a
new tenant at 1660 Wall Street, which underwent significant investment at their facility. Public storage
facility in the former Hinz Lithograph building at 1750 W. Central Road, which underwent significant
improvements including interior remodeling and a 3rd floor building addition. Several new restaurant
tenants in Randhurst Village including Smokey Bones, Truco Taqueria and Outback Steakhouse.
Actively worked with developers to redevelop the site formerly occupied by McDonald's Restaurant into
a two -unit commercial building anchored by Potbelly's Restaurant. Approved conditional use permits for
Starbuck's and Andy's Custard to develop drive-through restaurants along Rand Road. Continued
discussions with the owners of the Golf Plaza II shopping center regarding the redevelopment and
expansion of the shopping center. Initiated the process to disband existing Tax Increment Financing (TIF)
District and create new TIF District that would expand the benefitting area to the south, east and west of
the existing District.
Completed site demolition and environmental abatement of the Central Plaza shopping center located
at the northwest corner of Central Road and Main Street. Proceeded with final steps in court to recover
demolition costs by foreclosing on the property. A Request for Proposals was initiated to solicit
development proposals for the property. Construction is underway of the Mount Prospect Station
development along Northwest Highway. Occupancy is expected the second quarter of 2017 for the
Dunkin Donuts anchored center.
4
2016 Year -End Results
Completed annexations of certain property along the Illinois Tollway Authority (1-90), Lynn Court,
Addison Court, and properties located on Malmo Drive, Nordic Road and Algonquin Road on the south
side of the Village. Continued open dialogue with United Airlines regarding the annexation and
redevelopment of their former office headquarters along Algonquin Road.
Continued to actively work with new owners of existing multi -family residential developments on their
significant reinvestment projects, included major renovations of units at Mount Prospect Greens,
Residences of 1450 & 1550, and Forest Cove.
Human Services Department:
The Human Services Department has remained committed to improving the health and well-being of the
residents of Mount Prospect in 2016. The Department offers both nursing and social services to
residents of the community. Youth programming during 2016 included a Play and Learn program for
preschool age children and a program for 7t" and 8t" grade students which started in the summer with a
book club and will continue throughout the school year with field trips to the high school for various
events. Adults learning English as a second language come to the Conversations in English program to
practice their English language skills with other residents and staff. Residents managing diabetes attend
the Diabetes support group on a monthly basis and seniors wishing to maintain wellness through regular
physical activity can walk with the Public Health Nurse and a Medical Reserve Corp volunteer year
round.
In addition to programming, Human Services staff have assisted residents throughout the year with
direct services including nursing, case management, counseling, court advocacy and crisis intervention
services. Residents in need have also received emergency financial, food pantry and medical lending
closet assistance. The Department provided an extra bag of food to families with children who qualify
for the free/reduced lunch program over the summer months this year.
Training for Department staff has continued to be a priority in 2016. Training that various staff
members have received during 2016 include training on Social Security benefits, Medicare and
Medicaid, Mental Health, Cultural Competency, Ethics, Domestic Violence and Elder Law. All
Department staff participated in Red Cross Shelter Operations Training as we continue to focus on
emergency preparedness.
The Human Services Department is now on Facebook through the Community Connections Center
Page. Residents can access information about department programming through the Village web page
and the Departments' Facebook page.
Finance Department:
The Finance Department continued to meet the goals and strategies set forth in the Strategic Plan for
2020. The primary focus of the department's activities were in the areas of fiscal health, quality service
and developing and maintaining relationships, all components of the Governance goal for vision
attainment.
Accomplishments in the area of fiscal health include the efficient and effective management of Village
resources and the timely communication of results of operation the Village Board and Manager's Office
for use in decision making. Monthly financial and cash management reports were provided for both
internal and external use. The annual audit was completed within the required timeline and all
5
2016 Year -End Results
regulatory filings were made. The annual audit received an unqualified opinion which is an independent
auditor's judgment that the Village's financial records and statements are fairly and appropriately
presented, and in accordance with Generally Accepted Accounting Principles (GAAP).
Both the annual audit report (CAFR) and annual budget documents received the Government Finance
Officer Association awards for report preparation. The goal of these programs is to ensure that users of
the financial statements have the information they need to assess the fiscal health of the organization.
Quality service was also a focus during 2016. The department continued to look for opportunities
improve service to both the internal and external customer. The department conducted employee
training sessions for Accounts Payable, Purchasing and Annual Budget using the Village ERP financial
Software. Also, a new numbering system was put in place for servicing the customer in a more efficient
manner resulting in shorter wait times during peak front counter business periods such as experienced
during vehicle sticker season.
Staff attended numerous conferences, seminars and workshops with an opportunity to grow
professionally and to strengthen relationships with peers. This practice has allowed staff to return from
these trainings with best practice ideas we can consider implementing within the Village. Cash
management, reporting and communication are areas that have benefitted from the expanded
professional development efforts.
Police Department:
The Police Department continued meeting its mission of providing quality law enforcement services to
our citizens with pride, integrity, and professionalism. The Crime Prevention Unit further expanded the
Department's presence on social media, actively disseminating pertinent information on Facebook,
Twitter, and YouTube through a series of public service messages. The Department continued to engage
the community with its signature events including the Citizen's Police Academy, "Kickin' it with the
Cops," National Night Out, as well as by hosting a community pool party. The Police Department also
continued its community outreach initiatives through its participation in the Special Olympics annual
"Cop on Top" and Torch Run events.
The Department hired two (2) new full-time Community Service Officers and two (2) new part-time
Community Service Officers as approved by the Village Board. The Police Department began
transitioning to beat assignments where patrol officers were permanently assigned to each of the
Village's six (6) police beats with a focus on community policing initiatives that advance community
engagement and produce favorable performance outcomes for the Mount Prospect community. An
extensive policy review was conducted to ensure the department's policies meet contempory needs and
standards as part of the Illinois Law Enforcement Accreditation Program (ILEAP). Process improvements
were implemented by utilizing an electronic reporting system and a SharePoint program to more
efficiently manage workflows within the agency. The Department continued its 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 intervention training (CIT), and advanced management training
for the Department's leadership team.
Fire Department:
Six firefighters were sworn in on January 5t" after being hired with funds awarded from the SAFER Grant.
In March, the Fire Chief and Deputy Chief were sworn in along with four new Lieutenants. Our
Automatic Aid Agreement with Prospect Heights was reinstated and we signed our first agreement with
C7
2016 Year -End Results
Village of Elk Grove. These agreements filled two voids that existed with neighboring communities. We
now have Automatic Aid with all communities that border the Village of Mount Prospect. As a result, we
increased Fire and EMS response in our community. In addition, these departments participated in live
fire training and general familiarization of our departments in response to the new agreements.
The department also reinstated their membership with NIPSTA (Northeastern Illinois Public Safety
Training Academy). This membership has given us access to numerous certified classes and hands-on
training. To date, firefighters have completed over 64 certified classes to enhance their skills.
We began developing an Active Shooter protocol in 2015. We are pleased to say that the ballistic gear
has been purchased and plans to roll out the program in the first quarter of 2017 are underway. Our
accreditation process has begun and will define the Fire Department's future when completed. In her
short time here, our new EMS Coordinator has relicensed 20 paramedics, assisted six new hires in
gaining system entry into the Northwest Community EMS system, and certified 45 paramedics to the
Advanced Cardiac Life Support certification.
In May, over 2000 Mount Prospect children attended our 36th annual Children's Fire and Safety Festival.
Bi -lingual lessons were introduced this year in both Spanish and Polish. Finally, the Fire Prevention
Bureau partnered with Oberweis to offer programs geared toward older adults in the community.
Public Works:
The Village's Street Improvement Program completed the resurfacing of 6.5 miles of local streets during
2016. A streets funding plan approved in 2013 allows the Village to keep pace with the annual program.
All local streets within the village would be resurfaced over a 20 -year period under the current program
avoiding the need for the more costly full street reconstruction project. In addition, staff completed
extensive sidewalk improvement programs including installation of new sidewalks on Camp McDonald
Road and Lonnquist Boulevard along with sidewalk replacements facilitated by the Cost Share and
Community Development Block Grant sidewalk improvement programs. The final phase of the
Kensington Business Center jogging path was also completed in 2016 which included replacement and
widening of the existing path, replacement of light fixtures, as well as the installation of new signage and
exercise equipment. Phase 1 of the Bike Path signage installation project was also completed along with
Phase 1 of the emergency vehicle pre-emption device replacement project.
The Village completed installation of relief storm sewers on LaVergne and Catalpa. Staff also increased
the capacity of existing sewers in the Palm and Cherrywood neighborhood. These projects were the last
remaining projects identified in the 2011 Village Flood Study and, along with the Isabella sewer
improvements, Hatlen Heights storm sewer improvements and the Lonnquist area combined sewer
improvements, culminated almost $14 million worth of stormwater improvements during the last three
(3) years.
2015 saw significant activity of the village's Urban Forest. The department received Growth Award for
the 14th time. Staff completed scheduled tree trimming of approximately 4,331 trees maintaining the
Village's five (5) year tree trimming cycle. There were 650 unhealthy trees removed in a timely manner
avoiding costly private property damage from falling branches. The department also planted 1,100 trees
of varying species to maintain a diversified urban forest; the largest tree planting project ever
completed. Mount Prospect was also recognized as a Tree City USA community by the National Arbor
Day Foundation for the 31St consecutive year.
rA
2016 Year -End Results
Work performed on the village's Water and Sewer System included replacement of the failed roof on
the 2 million gallon welded steel ground -level finished water storage reservoir adjacent to Booster
Pumping Station 17. Staff also completed the replacement of approximately 800 lineal feet of water
main during the year which included the upsizing of water main along Whitegate Drive utilizing an
innovate directional drilling technique in lieu of conventional open cut excavation. The department also
completed the first phase of approximately $15 million worth of improvements identified in the 2015
Combined Sewer System Evaluation study which included lining and rehabilitation of over 8,000 lineal
feet of combined sewer pipe; the department's largest single lining project to date. The department
also replaced the 30+ year old William Street sewer pumping station and initiated Successful completed
the installation of emergency standby power for Water Booster Station 11. Also completed the first
year of extensive separate sanitary sewer maintenance and reporting activities required by the
Metropolitan Water Reclamation District of Greater Chicago's (MWRDGC) new Inflow and Infiltration
Compliance Program.
Streets and Buildings replaced the main garage roof at the Public Works Facility, constructed a 5,500 ton
salt dome, cleaned over 4,000 miles of Village streets, and inspected over 70,000 lineal feet of storm
sewer mains. Crews also initiated a commuter parking permit system and installed eight (8) automated
parking machines that allow commuters to utilize commercial credit cards and mobile phone
applications for payment. In addition, a comprehensive streetlight inventory was completed and
corridor streetlight evaluation study was performed identifying almost $17 million worth of
streetlighting improvements along major thoroughfares. Public Works also initiated participation in the
MWRDGC rain barrel program facilitating the delivery of over 2,598 free rain barrels to 1,270 Mount
Prospect properties.
All Public Works divisions have continued to perform extremely well and deliver high quality services
during the economic recovery period and reaching out to keep the community informed through the
continual evolution of our cable television channels, web site, newsletter, numerous publications, local
newspaper press releases, and the use of social media venues. In 2016, Public Works launched Facebook
and Twitter social media platforms. Staff also developed and distributed two (2) printed newsletters
mailed to all Mount Prospect residents containing detailed information on expansive Public Works
programs such as refuse and recycling guidelines.
8
VILLAGE OF MOUNT PROSPECT
GENERAL FUND - REVENUES AND EXPENDITURES
2016 YEAR-END RESULTS
EXCESS OF REVENUES OVER 11EXPIIHND„
nand 01"11•lER (FINANCING SOURCES/USES 4,375,323 (33,589) 1,463,408
......................................................................................................................................................................................................................................................................................................................................
......................................................................................................................................................................................................................................................................................................................................
01
Budget to Actual
Variance -
Actual
Budget
Actual
Favorable
..................................................................................................................................................................................................................................................................................................................................................................................................................................................
2015
2016
2016
(Unfavorable)
RIEV If;; IIM U If;; S
Property Taxes
15,416,879
15,984,200
15,917,480
(66,720)
Sales Taxes - ROT Portion
15,003,273
15,625,000
15,864,573
239,573
Sales Taxes - HMR Portion
1,367,462
1,405,000
1,337,845
(67,155)
Food and Beverage Tax
759,073
720,000
805,172
85,172
Real Estate Transfer Tax
1,371,699
1,050,000
1,049,770
(231)
Telecommunications Tax
2,133,343
2,075,000
2,020,525
(54,475)
Other Utility Taxes
1,641,385
1,782,000
1,609,000
(173,000)
Other Taxes
303,623
308,000
292,830
(15,170)
Other Licenses, Permits, Fees
2,341,269
2,177,000
2,237,974
60,974
State Income Tax
5,763,542
5,350,000
5,272,834
(77,166)
Other Intergovernmental
1,680,860
2,371,820
2,651,547
279,727
Charges for Services
1,458,853
1,385,600
1,440,459
54,859
Fines and Forfeits
519,966
451,000
428,935
(22,065)
Investment Income
8,612
4,100
49,203
45,103
Other Revenue ..................................................................................................................................................................................................................................................................................................................................................................................................................................................
551,070
489,500
573,378
83,878
Totall Revenues ..................................................................................................................................................................................................................................................................................................................................................................................................................................................
50,320,908
51,178,220
51,551,525
373,305
EX IP E IN ID111'U (RIES
Public Representation
605,328
693,608
640,459
53,149
Village Manager's Office
3,529,062
4,320,097
4,031,455
288,642
Finance Department
1,945,588
2,035,030
1,972,522
62,508
Community Development Dept.
2,104,967
2,424,754
2,223,280
201,474
Human Services Dept.
1,048,463
1,117,503
1,110,589
6,914
Police Department
16,277,671
17,540,844
17,067,108
473,736
Fire Department
13,171,001
14,598,987
14,473,299
125,688
Public Works Department
6,935,451
7,858,003
7,282,164
575,839
Miscellaneous ..................................................................................................................................................................................................................................................................................................................................................................................................................................................
46,455
46,616
46,615
1
Totall Expenditures ..................................................................................................................................................................................................................................................................................................................................................................................................................................................
45,663,986
50,635,442
48,847,491
1,787,951
EXCESS OF IREVE114UES OVER EXPEND„ ......................................................................................................................................................................................................................................................................................................................................
4,656,922
542,778
2,704,033
OTIHEIR IFIIIIMAINC11114G SOUIRCES/USES
Transfers In
0
0
0
Transfers Out ......................................................................................................................................................................................................................................................................................................................................
(281,599)
(576,367)
(1,240,625)
Totall Other Financing Uses ......................................................................................................................................................................................................................................................................................................................................
(281,599)
(576,367)
(1,240,625)
EXCESS OF REVENUES OVER 11EXPIIHND„
nand 01"11•lER (FINANCING SOURCES/USES 4,375,323 (33,589) 1,463,408
......................................................................................................................................................................................................................................................................................................................................
......................................................................................................................................................................................................................................................................................................................................
01
2016 Year -End Results
General Fund — The 2016 General Fund Budget shows a surplus of $1.5 million on revenues of
$51,551,525 and expenses of $50,088,116. A net transfer out of $1.2 million benefitting the TIF District
and Randhurst Business District is included in the total. General Fund revenues came in $373,305 above
the amended budget while expenses came in $1,787,951, or 3.5% 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 2016 Budget show total General Fund revenues of $51,551,525. This
represents an increase of $1.2 million, or 2.4% 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 the general levy increase over the prior year. The Village Board approved a 3.28%
increase to the 2015 levy, payable in 2016. Intergovernmental revenue grew by $1.2 million primarily as
a result of growth in sales taxes totaling $0.8 million and other Intergovernmental Revenue sources by
$0.4 million. 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.
$317,92Q
$229,
$4
$428,935
$1,466,21(
2016 General Fund - Revenue
r_, _ 11
N Property Taxes
1111111 Other Taxes
11 Licenses, Permits, & Fees
1111111 Intergovernmental
IIIIIIIIII Charges for Services
VI Fines and Forfeits
111111 Investment Income
1111111 Reimbursements
Other Revenue
Total expenditures for the 2016 General Fund budget were $48,847,491, an increase of $3.1 million, or
6.9% from the prior year but well under the amended 2016 budget, $1.8 million. Departments that saw
significant savings from budget for 2016 include Public Works, Police, Community Development and
Village Manager's Office. The following pie chart illustrates a breakdown of General Fund expenses.
fiK
$1,110,5R9
$2,22--
$2,019,1
2,22:$2,019,1
$4,031,45
$640,459
$7,2
2016 Year -End Results
2016 General Fund - Expenditures
IIUIV Public Representation
1111111 Village Manager's Office
M Finance Department
1111111 Community Development
IIIIIIIIIII Human Services
I Police Department
111111 Fire Department
1111111 Public Works Department
All of the Departments were at or below the benchmark of 50% at mid -year and finished the year under
their amended budget. The following chart illustrates General Fund expenditures as a percentage of the
annual budget at December 31.
Public Representation
Village Manager's Office
Finance Department
Community Development
Human Services
Police Department
Fire Department
Public Works Department
of Budget Utilized
86% 88% 90% 92% 94% 96% 98% 100%
Amendments to the original 2016 budget, including carryover items from the 2015 budget, totaled
$977,222. Carry-over items totaled $252,222 while personnel related items (including overtime) totaled
$325,000, and professional and contractual service and other expenses totaling $400,000.
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
2012. 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
"i
2016 Year -End Results
conditions exists, the savings go toward maintaining the General Fund fund balance. The savings to the
2016 General Fund budget was $1,787,951 or 3.5%.
Year
Amended Budget
Actual Expenditures
Variance
2012
$42,585,149
$41,858,267
(1.71%)
2013
$45,693,626
$44,713,148
(2.15%)
2014
$47,396,714
$46,320,040
(2.27%)
2015
$47,640,383
$45,663,986
(4.15%)
Including the projected surplus in the General Fund for 2016, reserves to begin 2017 are $18,684,351.
These reserves represent a fund balance level of 35.0%. The target benchmark for reserves in the
General Fund according to the Village fund balance policy is 20.0% to 30.0%.
`K
VILLAGE OF MOUNT PROSPECT
TOTAL VILLAGE BUDGET - REVENUES AND EXPENDITURES
2017 QUARTERLY REVIEW - Q1
Personal Services
44,492,997
45,970,233
11,345,713
45,970,233
Budget
Pension Benefits
9,716,800
9,993,301
YTD Actual
2017
Variance -
Contractual Services
Actual
Budget
01/01/2017-
Current
Favorable
Insurance
2016
................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
2017
3/31/2017
Estimate
(Unfavorable)
IRE'VIUINUES
1,706,601
2,299,138
288,427
2,299,138
0
Property Taxes
21,988,659
20,367,000
9,771,289
20,367,000
0
Other Taxes
13,983,864
14,489,092
792,849
14,489,092
0
Licenses, Permits, and Fees
3,096,997
3,029,000
1,053,243
3,029,000
0
Intergovernmental Revenue
27,999,102
29,309,261
1,662,713
29,309,261
0
Charges for Services
29,550,468
30,074,981
6,944,321
30,074,981
0
Fines and Forfeits
692,159
641,100
114,207
641,100
0
Investment Income
7,535,657
7,925,100
5,422,145
7,925,100
0
Reimbursements
622,207
240,500
38,057
240,500
0
Other Revenue
9,747,897
10,924,005
3,946,438
10,924,005
0
Other Financing Sources
20,540,740
................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
1,300,000
18,519
1,300,000
0
'To -tall Revenues
135,757,751
................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
118,300,039
29,763,780
118,300,039
0
Personal Services
44,492,997
45,970,233
11,345,713
45,970,233
0
Pension Benefits
9,716,800
9,993,301
2,522,748
9,993,301
0
Contractual Services
22,384,507
23,922,997
4,035,302
23,922,997
0
Insurance
8,215,320
8,236,626
2,760,244
8,236,626
0
Commodities and Supplies
1,706,601
2,299,138
288,427
2,299,138
0
Other Expenditures
4,397,265
1,560,769
520,306
1,560,769
0
Bond Principal and Interest
25,773,037
6,643,013
59,380
6,643,013
0
Capital
12,034,569
16,852,402
1,334,369
16,852,402
0
Interfund Transfers
1,637,925
600,000
0
600,000
0
'Total Expenditures
................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
130,359,020
................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
116,078,479
22,866,488
116,078,479
0
II:::XCII:..:SS OF RII:::VENUIE.S
OVlli"JR Iliii'XIpREINDIITURIIiii'S
5,398,731
................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
2,221,560
6,897,292
2,221,560
0
13
2017 First Quarter Review
Total Village Budget — The total approved budget for 2017 was $112,764,841. This was a decrease of 12.4%
from the final 2016 amended budget. In April 2017, the first budget amendment for 2017 was approved by the
Village Board. The amendment consisted primarily of capital projects deferred from the prior year. The current
2017 budget of $116,078,479 now reflects a decrease of 9.8% from the prior year.
2016
Final Amended Budget 128,666,949
2017 % Change
Original Budget 112,764,841 -12.4%
Budget Amendments(s) 3,313,638
Amended Budget 116,078,479 -9.8%
One more significant change made to the 2017 budget consists of the addition of the Prospect/Main TIF District.
The Downtown TIF that was previously in place was terminated at the end of 2016 and property values reset at
current levels. A benefit from the reset in the TIF was that property valued at $18 million was returned to the
taxing districts as new property on which additional property taxes could be generated.
Total revenues budgeted for 2017 are $118,300,039. This represents a decrease of $17.2 million, or 12.7% from
the prior year. The large decrease in 2017 is due to the issuance of two refunding bond issues done in 2016
where none are anticipated in the current year (2017). The budget for 2017 built in increases to the water rates
(4%) accounting for the increase to Charges for Service revenue category. No additional adjustments have been
made to the revenue projected for 2017 as the current budgeted amounts are in line with prior year actuals and
we have only 3 months of activity to -date. We do not feel that we have sufficient data after 3 months to make
informed adjustments. Included below is a pie chart illustrating the total village budget for revenue by major
revenue category.
2017 Total Amended Budget - Revenue
$1,300,000
$10,924,005
$20,367,000
$240,500
$7,925,100
10 Property Taxes
$641,100
111111 Other Taxes
III Licenses Permits and Fees
111111 Intergovernmental Revenue
$14,489,092
IIIIIIII Charges for Services
lulu Fines and Forfeits
1 1
1
1
VIII investment lncome
$30,074,981
' $3,029,000
VIII Reimbursements
Other Revenue
111111 Other Financing Sources
$29,309,261
Total expenditures budgeted for 2017 are $116,078,479, a decrease of $14.4 million from the prior year.
Personal service costs in 2017 are estimated to be $45,970,233, an increase of $1.8 million, or 4.2% from 2016.
A 2.0% wage increase is included in the budget for all non-union employees and collectively bargained groups.
The increase from the prior year was driven by the general wage increase and staffing adjustments throughout
the organization. The Capital Budget increased $3.1 million or 23.0% from the prior year and totals $16,852,402.
Ongoing projects such as street improvement, flood control and water system improvements are included in this
14
2017 First Quarter Review
total. The increase is due to various infrastructure improvements throughout the village. Included below is a pie
chart illustrating total village expenditures by major category.
2017 Total Amended Budget - Expenditures
$600,000
$16,852,402
$45,970,233 IAV Personal Services
1111111 Pension Benefits
$6,643,013
III Contractual Services
$1,560,769 �'
$2,299,138
1111111 Insurance
111111111 Commodities and Supplies
1I Other Expenditures
$8,236,626
1111 Bond Principal and Interest
111111 Capital
'....;.s Interfund Transfers
$23,922,997
$9,993,301
As with 2016, these figures assume no reduction in revenue as a result of budget legislation being made in
Springfield. There is a continued fear that the state in its desire to rectify its own budget woes may well reach
down and reduces shared revenues like the income tax, use tax and motor fuel tax. Also being considered by the
state legislature are short-term and permanent freeze options to the property tax levy.
The village maintains a multi -step contingency plan that can be implemented if the Village were to experience a
decline in revenues resulting from action taken in Springfield. The multi -step plan provides for increasing levels
of response to loss of revenue depending upon the timing and severity of cuts imposed by the State. A listing of
the steps taken in response to revenue loss, in order of least to most significant, are:
1. Eliminate or defer capital projects/purchases.
2. Reduce funding (lease payments) of computer and vehicle replacement programs.
3. Institute a freeze or reduction in commodity, contractual service and supply accounts, where possible.
4. Review catalog of programs and services provided by the village.
5. Review of staffing levels.
The Finance Department will continue to review budgeted revenues monthly and report back to the Village
Board and Finance Commission if a significant decline is realized.
15
VILLAGE OF MOUNT PROSPECT
GENERAL FUND - REVENUES AND EXPENDITURES
2017 QUARTERLY REVIEW - Q1
EXIPEINDIITUIRII::
Public Representation
640,459
809,019
147,962
809,019
Budget
Village Manager's Office
4,031,455
4,203,406
YTD Actual
2017
Variance -
Finance Department
Actual
Budget
01/01/17-
Current
Favorable
Community Development Dept.
2016
.................................................................................................................................................................................................................................................................................................................................................................................................................................................................
2017
3/31/2017
Estimate
(Unfavorable)
RIEVEINUIES
1,110,589
1,183,389
258,793
1,183,389
0
Property Taxes
15,917,480
16,278,000
8,546,701
16,278,000
0
Sales Taxes - ROT Portion
15,864,573
17,150,000
0
17,150,000
0
Sales Taxes - HMR Portion
1,337,845
1,450,000
0
1,450,000
0
Food and Beverage Tax
805,172
773,000
119,626
773,000
0
Real Estate Transfer Tax
1,049,770
1,075,000
207,686
1,075,000
0
Telecommunications Tax
2,020,525
2,100,000
0
2,100,000
0
Other Utility Taxes
11609,000
1,665,000
261,946
1,665,000
0
Other Taxes
292,830
320,000
0
320,000
0
Other Licenses, Permits, Fees
2,237,974
2,185,000
343,097
2,185,000
0
State Income Tax
5,272,834
5,543,000
1,004,458
5,543,000
0
Other Intergovernmental
2,651,547
2,473,040
248,719
2,473,040
0
Charges for Services
1,440,459
1,289,255
163,020
1,289,255
0
Fines and Forfeits
428,935
461,000
77,057
461,000
0
Investment Income
49,203
43,000
46,663
43,000
0
Other Revenue
573,378
.................................................................................................................................................................................................................................................................................................................................................................................................................................................................
526,300
180,794
526,300
0
Total Revenues
51,551,525
.................................................................................................................................................................................................................................................................................................................................................................................................................................................................
53,331,595
11,199,767
53,331,595
0
EXIPEINDIITUIRII::
Public Representation
640,459
809,019
147,962
809,019
0
Village Manager's Office
4,031,455
4,203,406
892,840
4,203,406
0
Finance Department
1,972,522
2,570,392
446,095
2,570,392
0
Community Development Dept.
2,223,280
2,441,991
463,933
2,441,991
0
Human Services Dept.
1,110,589
1,183,389
258,793
1,183,389
0
Police Department
17,067,108
18,229,821
4,845,930
18,229,821
0
Fire Department
14,473,299
15,003,170
3,986,192
15,003,170
0
Public Works Department
7,282,164
8,324,869
1,420,996
8,324,869
0
Miscellaneous .................................................................................................................................................................................................................................................................................................................................................................................................................................................................
46,615
46,781
11,695
46,781
0
Total lli"xlpendiituires .................................................................................................................................................................................................................................................................................................................................................................................................................................................................
48,847,491
52,812,838
12,474,435
52,812,838
0
IEXCII: SS OF IRII:"VEII'MUII:"S
OVER IliiiXPlliiiNIDITURE.S .................................................................................................................................................................................................................................................................................................................................................................................................................................................................
2,704,033
518,757
(1,274,668)
518,757
0
011-1IER FINANCMG SOURCES/USES
Transfers In
0
0
0
0
0
Transfers Out
(1,240,625)
(600,000)
(503,473)
(600,000)
0
.................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Total Other Financing Uses .................................................................................................................................................................................................................................................................................................................................................................................................................................................................
(1,240,625)
(600,000)
(503,473)
(600,000)
0
IE'XCII:.SS OF RII:"VIE'INUII:"S OVER
IEX.IPIENIDITUIRIES and 011IER
FINANCING SOURCES/USES 1,463,408 (81,243) (1,778,141) (81,243) 0
.................................................................................................................................................................................................................................................................................................................................................................................................................................................................
.................................................................................................................................................................................................................................................................................................................................................................................................................................................................
iD-j
2017 First Quarter Review
General Fund — The 2017 General Fund amended budget is showing a deficit of $81,243 on revenues of
$53,331,595 and expenses of $53,412,838 (including a $600K capital transfer). As of March 31, the General Fund
had recorded expenditures of $12,474,435. This represents 23.4% of the budget and is in line with spending
through a quarter year period. The current estimate of revenues in 2017 is expected to come in at the budgeted
amount. As such, the deficit expected at year-end in the General Fund remains at $81,243. Included below is a
pie chart estimating General Fund revenues broken out by major revenue category.
2017 General Fund Amended Budget - Revenue
$1,030,300
ILII Public Representation
$1,289,255
1111111 Village Manager's Office
II Finance
$ 2,441,991
Property Taxes
$2,473,040x
11111111 Sales Tax
$5,543,000
1111111 Community Dev.
$2,617,173
1 Other Taxes
1111111 Licenses, Permits, Fees
$2,185,000
i
1111111111 Human Services
$4,203,406
11111111111 State Income Tax
uiilu.
1 Police Department
$809,019
�
I Other Intergovernmental
11111 Fire Department
1111111 Public Works
11111 Charges for Services
p
1111111 Other Revenue
The amended 2017 General Fund budget for expenses is $53,412,838. Budget amendments in this fund totaled
$81,243 were approved by the Village Board in April. The amendments impacted various commodity,
contractual service and capital accounts. To be conservative, no changes were made to any expense category for
the 2017 General Fund budget. The following pie chart illustrates a breakdown of estimated General Fund
expenses broken out by department.
2017 General Fund Amended Budget - Expenditures
liVA
ILII Public Representation
$1,183, 389
1111111 Village Manager's Office
II Finance
$ 2,441,991
1111111 Community Dev.
$2,617,173
1111111111 Human Services
$4,203,406
1 Police Department
$809,019
�
11111 Fire Department
1111111 Public Works
liVA
2017 First Quarter Review
As was mentioned previously, the General Fund typically experiences a saving from budget of between one and
two percent. If a surplus in the General Fund is realized, the funds could be used to further strengthen our fund
balance (reserves) in anticipation of a loss of revenue, depending on what is done down in Springfield, or to
make a capital transfer in support of some larger projects in need of completion.
18
VILLAGE OF MOUNT PROSPECT
TOTAL VILLAGE BUDGET - REVENUES AND EXPENDITURES
2018 FORECAST BUDGET - Q1
Personal Services
Estimate
Forecast
$ Change
% Change
Pension Benefits
2017
....................................................................................................................................................................................................................................................................................................................................................................................
2018
from PY
from PY
REVII"INUES
23,922,997
24,234,738
311,741
1.30%
Property Taxes
20,367,000
19,368,000
(999,000)
-4.90%
Other Taxes
14,489,092
14,803,518
314,426
2.17%
Licenses, Permits, and Fees
3,029,000
3,029,000
0
0.00%
Intergovernmental Revenue
29,309,261
29,488,224
178,963
0.61%
Charges for Services
30,074,981
31,093,755
1,018,774
3.39%
Fines and Forfeits
641,100
642,100
1,000
0.16%
Investment Income
7,925,100
8,382,100
457,000
5.77%
Reimbursements
240,500
243,500
3,000
1.25%
Other Revenue
10,924,005
11,243,100
319,095
2.92%
Other Financing Sources
1,300,000
....................................................................................................................................................................................................................................................................................................................................................................................
425,000
(875,000)
-67.31%
'To -tall Revenues
118,300,039
....................................................................................................................................................................................................................................................................................................................................................................................
118,718,297
418,258
0.35%
Personal Services
45,970,233
47,033,557
1,063,324
2.31%
Pension Benefits
9,993,301
10,274,500
281,199
2.81%
Contractual Services
23,922,997
24,234,738
311,741
1.30%
Insurance
8,236,626
8,511,883
275,257
3.34%
Commodities and Supplies
2,299,138
2,292,638
(6,500)
-0.28%
Other Expenditures
1,560,769
896,245
(664,524)
-42.58%
Bond Principal and Interest
6,643,013
6,847,284
204,271
3.07%
Capital
16,852,402
15,258,328
(1,594,074)
-9.46%
Interfund Transfers
600,000
....................................................................................................................................................................................................................................................................................................................................................................................
425,000
(175,000)
'Total Expenditures
116,078,479
....................................................................................................................................................................................................................................................................................................................................................................................
115,774,173
(304,306)
-0.26%
IEXCII::°.SS OF RII:::VEU4UIE.S
OVII:..R Iliii'XIPEINDIITURIIiii'S
2,221,560
.......................................................................................................................................................................................................................................................................................
.......................................................................................................................................................................................................................................................................................
2,944,124
722,564
IN
2018 Revised Forecast Budget
Total Village Budget — The 2018 Forecast Budget is currently showing total projected revenues of $118,718,297
and total projected expenditures of $115,774,173. The excess of revenues over expenditures is $2.9 million. Of
this amount, surplus earnings in the two public safety pension funds accounts for $6.6 million. These surplus
pension funds are set aside for payment of benefits when due and are not available for general village use.
Total revenues forecast for 2018 are $118,718,297. This represents an increase of $418,258, or 0.35% from the
prior year. Increases in the charges for service, investment income, and other revenue categories attributed to
the overall growth in revenue. The significant decline in property taxes was due to the termination of the
Special Service Area #5 levy. The increase in charges for service is driven by the increases planned for refuse
collection and water service. While overall property taxes are set to decrease $999K due to the termination of
the Special Service Area #5 levy ($1.5 million) there is a projected increase to the general property tax levy of
3.2% over 2017. Increases in other revenues consist of public safety contributions in the form of property taxes.
Included below is a pie chart illustrating the 2018 forecast for total village revenues by major revenue category.
The increase in the property tax levy included in the 2018 Budget is 3.2%. Please note that the tax levy (2017)
included in the 2018 forecast is only a placeholder and is intended as a stepping off point for discussion. The
decision on a final levy will not occur until after initial budget discussions are held. The levies will likely change as
a result of the preliminary actuarial valuation showing greater than 7.0% increases for both the police and fire
pension.
Again, the figures presented here assume no reduction in revenue as a result of budget decisions made in
Springfield. The spring legislative session is currently open. Governor Rauner and the legislature still haven't
passed a budget for fiscal year 2015/2016 or 2016/2017. Approval of the state's next fiscal year budget isn't
expected until later in the year, at best. Depending on the outcome of these deliberations, there could be a
significant loss in revenue to Local Government Distributive Fund and the Motor Fuel Tax seriously impacting
operations and the street program, respectively.
Pie]
2018 Revised Forecast Budget
Total expenditures forecast for 2018 are $115,774,173, a decrease of $304,306, or 0.26% from the amended
2017 budget. The decrease is primarily due to fewer capital projects and general capital purchases being
completed when compared with the prior year. Included below is a pie chart illustrating total village
expenditures by major category.
2018 Total Forecast Budget- Expenditures
PAI
VILLAGE OF MOUNT PROSPECT
GENERAL FUND - REVENUES AND EXPENDITURES
2018 FORECAST BUDGET - Q1
EXIT"0E1NDIITUIR11:. S
Public Representation
2017
740,910
2018 Forecast
0
0.00%
Village Manager's Office
............................................................................................................................................................................................................................................................................................................................................
Current
Original
Current
Increase
Percent
Finance Department
Projections
.....................................................................................................................................................................................................................................................................................................................................................................................................................................
Forecast
Forecast
(Decrease)
Change
REVEINUIES
2,441,991
2,495,622
2,495,622
0
0.00%
Property Taxes
16,278,000
16,974,000
16,974,000
0
0.00%
Sales Taxes - ROT Portion
17,150,000
17,975,000
17,975,000
0
0.00%
Sales Taxes - HMR Portion
1,450,000
1,495,000
1,495,000
0
0.00%
Food and Beverage Tax
773,000
784,000
784,000
0
0.00%
Real Estate Transfer Tax
1,075,000
1,125,000
1,125,000
0
0.00%
Telecommunications Tax
2,100,000
2,100,000
2,100,000
0
0.00%
Other Utility Taxes
1,665,000
1,665,000
1,665,000
0
0.00%
Other Taxes
320,000
335,000
335,000
0
0.00%
Other Licenses, Permits, Fees
2,185,000
2,216,000
2,216,000
0
0.00%
State Income Tax
5,543,000
5,562,000
5,562,000
0
0.00%
Other Intergovernmental
2,473,040
1,754,220
1,754,220
0
0.00%
Charges for Services
1,289,255
1,324,026
1,324,026
0
0.00%
Fines and Forfeits
461,000
461,000
461,000
0
0.00%
Investment Income
43,000
43,000
43,000
0
0.00%
Other Revenue
526,300
.....................................................................................................................................................................................................................................................................................................................................................................................................................................
533,300
533,300
0
0.00%
Total Revenues
53,331,595
.....................................................................................................................................................................................................................................................................................................................................................................................................................................
54,346,546
54,346,546
0
0.00%
EXIT"0E1NDIITUIR11:. S
Public Representation
809,019
740,910
740,910
0
0.00%
Village Manager's Office
4,203,406
4,152,453
4,152,453
0
0.00%
Finance Department
2,570,392
2,602,895
2,602,895
0
0.00%
Community Development Dept.
2,441,991
2,495,622
2,495,622
0
0.00%
Human Services Dept.
1,183,389
1,152,099
1,152,099
0
0.00%
Police Department
18,229,821
18,817,696
18,817,696
0
0.00%
Fire Department
15,003,170
15,271,144
15,271,144
0
0.00%
Public Works Department
8,324,869
8,629,842
8,629,842
0
0.00%
Miscellaneous ...................................................................................................................................................................................................................................................................................................................................................................................................................................
46,781
46,950
46,950
0
0.00%
Total lli'xpendiil:uires ...................................................................................................................................................................................................................................................................................................................................................................................................................................
52,812,838
53,909,611
53,909,611
0
0.00%
EXCII: SS OF IRII:"VEII'MUII:"S
OVIER 11:iXP11:1411DITURES ........................................................................................................................................................................................................................................................................................................................................................................
518,757
436,935
436,935
0
011 ITER U:::INANCMG SOURCES/USES
Transfers In
0
0
0
0
Transfers Out
(600,000)
(425,000)
(425,000)
0
........................................................................................................................................................................................................................................................................................................................................................................
Total Otlhneir IFlnanciing Uses ........................................................................................................................................................................................................................................................................................................................................................................
(600,000)
(425,000)
(425,000)
0
EXCII:.SS OF IRII:"VIE'1NU11:"S OVER
EX1P1EN1DITUIRIES and 011IER
FINANCING SOURCES/USES (81,243) 11,935 11,935 0
........................................................................................................................................................................................................................................................................................................................................................................
........................................................................................................................................................................................................................................................................................................................................................................
Yea
2018 Revised Forecast Budget
General Fund — The original 2018 General Fund forecast budget showed a slight surplus of $11,935 on revenues
of $54,346,546 and expenses of $54,334,611. While not significant, the projected surplus does convey a
structurally balanced budget for the coming year. Our adjusted estimate for 2018 does not change from the
original forecast amount. As with our projections for 2017, revenue and expense estimates are tracking the prior
year and there isn't sufficient activity through 3 months in 2017 to support significant changes.
Included below is a pie chart projecting General Fund revenues broken out by major revenue category.
2018 General Fund Forecast - Revenue
IEE Property Taxes
$1,037,300
II Public Representation
$1,324,026
1111111 Village Manager's Office
$1,152,099
rpt Finance
1111111 Sales Tax
$1,754,220
11111111 Community Dev.
EE Other Taxes
IIIIIIIIII Human Services
F
IT Police
111111
$4,152,453
�
Fire
$740,910
N
11111111 Public Works
1111111 Licenses, Permits, Fees
IIIIIIIIII State Income Tax
VST Other Intergovernmental
$2,216,000
111111 Charges for Services
11111111 Other Revenue
$6,009,000
The 2018 General Fund forecast budget for expenditures is $54,334,611. Overall growth in General Fund
expenditures from 2017 is $1.2 million or 2.2%. To be conservative no other assumptions were made to any
expenditure category for the 2018 General Fund budget. The following pie chart illustrates a breakdown of
estimated General Fund forecast expenses broken out by department.
2018 General Fund Forecast - Expenditures
23
II Public Representation
1111111 Village Manager's Office
$1,152,099
rpt Finance
$2,495,622
11111111 Community Dev.
$2,649,845
IIIIIIIIII Human Services
F
IT Police
111111
$4,152,453
�
Fire
$740,910
N
11111111 Public Works
23
Village of Mount Prospect
Mount Prospect, Illinois
INTEROFFICE MEMORANDUM
TO: VILLAGE PRESIDENT AND BOARD OF TRUSTEES
FINANCE COMMISSION
9:167LVA �91►19►[ya011:IX41 fel :i
DATE: JULY 6, 2017
SUBJECT: PROPOSED 2017 PROPERTY TAX LEVY
The Forecast Budget for 2018 included a projected amount for property taxes to be derived
from the 2017 property tax levy. Included with this memo for your review is the preliminary
2017 levy. Also included for reference are the final 2016 levy and a levy history for the period
2002 - 2016. Below are a few points on each of these items to help facilitate discussion at the
upcoming Finance Commission meeting. For discussion purposes, the Corporate Levy is the tax
levy that includes allocations for public safety, debt service and police and fire pensions. Please
note that while the preliminary levy was included as part of the 2018 Forecast Budget, it is by
no means final. It is only presented as a stepping off point for budget discussion purposes.
Final 2016 Levy (Exhibit 1)
Corporate Levy - The total extended levy for 2016 was $18,727,306. This represented an
increase of $414,550, or 2.27% from the prior year. The levy is set for the purpose of funding
public safety (police and fire protection), debt service, police and fire pensions. The public
safety portion of the levy did not increase while the debt service portion of the levy increased
$45,458 or 2.0%. The portion of the levy for police and fire pension contributions increased
7.0%. Increases to the tax levies for 2011 through 2015 are shown below.
2011
4.33%
2012
3.95%
2013
5.00%
2014
2.48%
2015
3.28%
Special Service Area #5 Levy — The total extended levy for 2016 was $1,545,773. There was no
increase in the special service levy from the prior year. The final year of the SSA #5 levy is 2017.
24
Proposed 2017 Property Tax Levy
July 6, 2017
Page 2 of 2
Preliminary 2017 Levy (Exhibit II)
Corporate Levy - The preliminary levy for 2017 for receipt in 2018 totals $19,087,265. This
represented an increase of $359,959 or 1.92% from the prior year. This levy was prepared
using the final actuary figures for the required pension contributions. The public safety portion
is held flat while the debt service portion of the levy increases $108,574 or 4.7%. The portion of
the levy for police and fire pension contributions increased $251,385 or 3.9%.
Special Service Area #5 Levy — The total extended levy for 2017 is $1,545,773. There is no
increase in the special service levy from the prior year. This is the final year for the special
service area levy.
Public Safety Pension Levy History (Exhibit III)
A table covering calendar years 2002 - 2016 of the public safety contribution and funding levels
is included with this memo. The table includes the ARC (annual required contribution) for the
police and fire pensions, percent change from year-to-year and funding level. The five-year
increase (2011-2016) in required contributions for police and fire are 36.83% and 42.92%
respectively. The average annual increase over the same period is 7.37% for the police pension
and 8.58% for the fire pension.
In spite of the increasing level of contributions, the overall funding level of both the police and
fire pension funds has fallen from over 75% funded in 2002 to 59% or below for year -ending
2016. While funding the pensions at the ARC has placed stress on the annual property tax levy
and General Fund, the Village is committed to proper funding in the current period not pushing
the matter "down the road."
As mentioned at the start of this memo, this information should provide a good stepping -off
point for discussion at the financial planning workshop. A more detailed presentation on the
proposed property tax levy for 2017 will be made at that time. Let me know if you have any
questions.
M
David O. Erb
Finance Director
Exhibit I
VILLAGE OF MOUNT PROSPECT AND THE
MOUNT PROSPECT PUBLIC LIBRARY
FINAL 2016 PROPERTY TAX LEVY
2%
Net Provision Total
2016 2016 Loss and 2016
Levy Abatement Levy Costs Extension
VILLAGE OF MOUNT PROSPECT
Police Protection
4,933,773
0
4,933,773
98,675
5,032,448
Fire Protection
5,107,773
0
5,107,773
102,155
5,209,928
Police Pension Fund
3,742,725
391,625
3,351,100
67,022
3,418,122
Firefighters' Pension Fund
3,143,320
448,720
2,694,600
53,892
2,748,492
Debt Service Funds
Series 2009
24,000
0
24,000
480
24,480
Series 2009B
381,275
0
381,275
7,626
388,901
Series 2009C
205,842
42,000
163,842
3,277
167,119
Series 2011 B
790,096
0
790,096
15,802
805,898
Series 2012
54,095
0
54,095
1,082
55,177
Series 2013
369,956
369,956
0
0
0
Series 2014
466,550
0
466,550
9,331
475,881
Series 2016A
393,000
0
393,000
7,860
400,860
Total Village
19,612,405
1,252,301
18,360,104
367,202
18,727,306
MOUNT PROSPECT PUBLIC LIBRARY
Library Operations
9,325,246
0
9,325,246
186,505
9,511,751
Library Debt Service
1,579,150
0
1,579,150
31,583
1,610,733
Total Library
10,904,396
0
10,904,396
218,088
11,122,484
TOTAL - VILLAGE OF MOUNT PROSPECT
AND PUBLIC LIBRARY
30,516,801
1,252,301
29,264,500
585,290
29,849,790
SPECIAL SERVICE AREA NO. 5 1.515.464 0 1.515.464 30.309 1.545.773
2015 2016
Total Levy Amount 18,312,756 18,727,306
Increase Over Prior Year 414,550 2.27%
K-0
Exhibit II
VILLAGE OF MOUNT PROSPECT AND THE
MOUNT PROSPECT PUBLIC LIBRARY
PRELIMINARY 2017 LEVY
SPECIAL SERVICE AREA NO. 5 1.515.464 0 1.515.464 30.309 1.545.773
2016 2017
Total Levy Amount 18,727,306 19,087,265
Increase Over Prior Year 359,959 1.92%
PrA
2%
Net
Provision
Total
2017
2017
Loss and
2017
Levy
Abatement
Levy
Costs
Extension
VILLAGE OF MOUNT PROSPECT
Police Protection
4,933,773
0
4,933,773
98,675
5,032,448
Fire Protection
5,107,773
0
5,107,773
102,155
5,209,928
Police Pension Fund
3,601,216
293,500
3,307,716
66,154
3,373,870
Firefighters' Pension Fund
3,320,940
336,500
2,984,440
59,689
3,044,129
Debt Service Funds
Series 2009
24,000
0
24,000
480
24,480
Series 2009B
381,675
0
381,675
7,634
389,309
Series 2009C
222,655
42,000
180,655
3,613
184,268
Series 2011 B
792,078
0
792,078
15,842
807,920
Series 2012
54,095
0
54,095
1,082
55,177
Series 2013
369,956
369,956
0
0
0
Series 2014
557,400
0
557,400
11,148
568,548
Series 2016A
389,400
0
389,400
7,788
397,188
Total Village
19,754,961
1,041,956
18,713,005
374,260
19,087,265
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
19,754,961
1,041,956
18,713,005
374,260
19,087,265
SPECIAL SERVICE AREA NO. 5 1.515.464 0 1.515.464 30.309 1.545.773
2016 2017
Total Levy Amount 18,727,306 19,087,265
Increase Over Prior Year 359,959 1.92%
PrA
Exhibit III
VILLAGE OF MOUNT PROSPECT
ANNUAL CONTRIBUTION AND FUNDING LEVEL
2002-2016
ARC = Annual Required Contribution
28
Police
Fire
$7.0
ARC
% Change in ARC
% Funded
ARC
% Change in ARC
% Funded
2002
1,062,739
75.30%
1,059,381
80.10%
2003
1,077,645
1.40%
77.50%
1,175,135
10.93%
78.80%
2004
1,246,954
15.71%
74.50%
1,159,480
-1.33%
78.80%
2005
1,333,283
6.92%
74.10%
1,302,011
12.29%
76.40%
2006
1,408,423
5.64%
75.40%
1,389,833
6.75%
76.70%
2007
1,515,672
7.61%
75.50%
1,414,110
1.75%
78.20%
2008
2,208,174
45.69%
58.90%
1,925,110
36.14%
63.90%
2009
2,467,527
11.75%
60.60%
2,140,664
11.20%
65.00%
2010
2,484,859
0.70%
59.30%
2,224,122
3.90%
63.40%
2011
2,631,811
5.91%
59.20%
2,323,609
4.47%
63.30%
2012
2,922,979
11.06%
58.10%
2,468,554
6.24%
63.20%
2013
2,909,868
-0.45%
59.90%
2,526,101
2.33%
64.20%
2014
3,204,363
10.12%
57.90%
2,589,599
2.51%
63.00%
2015
3,817,579
19.14%
54.60%
3,206,186
23.81%
58.00%
2016
3,601,216
-5.67%
57.90%
3,320,940
3.58%
59.30%
5 -Year Increase (2011-2016)
36.83%
$1.0cc
42.92%
5 -Year Average Annual Increase
7.37%
8.58%
28
Annual Contribution and Funding Level
$7.0
90.0%
$6.0
80.0%
77N
70.0%
$5.0
E60.0%
$4.0
50.0%
7.3
0
$3.0
40.0%
J
:.
0
30.0%
ao
vIN
20.0%
LL
•3
$1.0cc
10.0%
R
c
$0.0
U
0.0%
c
a
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do do do ,�o do do do do �o do do
1I1I1I1I1I1I1I1I1I1I11
Police Pension ARC IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Fire Pension ARC ,---------------Police % Funded
Fire % Funded
28