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HomeMy WebLinkAbout5.1 September Monthly Financial ReportBoardDocs® Pro Agenda Item Details Meeting Category Subject Access Type Preferred Date Absolute Date Fiscal Impact Budgeted Recommended Action Page I of I Oct 16, 2018 - REGULAR MEETING OF THEM UT PROSPECT VILLAGE BOARD - 7:00 p.m. 5. CONSENT AGENDA 5.1 Monthly Financial Report - September Public Action (Consent) Oct 16, 2018 Oct 16, 2018 No No Accept the monthly financial report for September 2018. Public Content Information The monthly financial report contains a Cash Position Report and Fund Financials for the month ended September 30, 2018. Alternatives 1. Accept the monthly financial report for September 201 2. Action at discretion of Village Board. I Staff Recommendation Staff recommends the Village Board accept the monthly financial report for September 30, 2018. HN 09 September Board [Zeports for Upload pdf (346 KB) Combiined 1: -i&ncials for BD 9-.201.8.pff ('783 KB) Administrative Content Executive Content All items under Consent Agenda are considered routine by the Village Board and will be enacted by one motion. There will be nv separate discussion of those items unless a Board member or member from the audience so requests, in which the item will be removed from the Consent Agenda and considered in its sequence on the agenda. https://www.boarddocs.com/il/vomp/Board.nsf/Private?open&login 10/12/2018 w F� w A w �° �"� �j o N O M � � „�? 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CA F-- uj uj a- x. uj 0 lS f,l,s M N C ■ TJ I% 0 < a N CD CD CD CD O O O O O M t- CD CD CD CD CD - C� - cc� CD Ln 00 Ln rl M CD CD CD CD m O O O O LD Ln � Irl rlcc� Ln CD CD CD CD CD O O O O O CD CD CD CD CD CD CD CD CD M Ln CD CD m ti Ln Lr) O� rlj rl L'i W61 V V) uj t l�Ex a - = 0 M = M 5 111 lS X. uj Va W Lr) O� rlj rl L'i TA Mount Prospc Village of Mount Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: VILLAGE PRESIDENT AND BOARD OF TRUSTEES FINANCE COMMISSION FROM: DIRECTOR OF FINANCE DATE: OCTOBER 11, 2018 SUBJECT: MONTHLY FINANCIAL REPORT — SEPTEMBER 2018 Attached hereto are the cash position and investment statements of the Village for the month ended September 30, 2018. These statements provide a snapshot of the Village's cash position as of the month end date noted and are intended to supplement the budget revenue and expenditure summary and listing of bills you receive. The first statement presents the Village's cash position broken down by governmental and enterprise funds and trust and agency funds. The second statement presents the Village's cash position by fund type. The third statement presents the list of investments again broken down by governmental and enterprise funds and trust and agency funds. It is important to note that although we have included the trust and agency funds in the cash position report, these are not funds accessible for Village operations. They are restricted for pension and escrow funding only. Please read the summary that follows for further detail on the cash position of the Village. Cash and Investment Position Report — All Funds (page 4) This report provides a detailed summary of cash and investments for the Village broken out by governmental and enterprise funds and trust and agency funds. Governmental funds include the General Fund, Special Revenue Funds, Debt Service Funds, Capital Project Funds and Internal Service Funds. The Enterprise Funds consist of the Water/Sewer Fund and two (2) Parking Funds. Trust funds include the Village's two public safety pensions (Police and Firefighters') while the agency funds include the Escrow Deposit and Flex Comp Escrow Funds. The Escrow Deposit Fund accounts for refundable deposits held by the Village to ensure completion of public improvements. The Flex Comp Escrow Fund accounts for employee payroll deductions pursuant to a Section 125 flexible compensation plan. Governmental and Enterprise Funds - Cash and cash equivalents at August 31 was $59.0 million. During September, cash receipts totaled $6,938,912 and investment income was $69,972. Reductions in cash and cash equivalents during September totaled $9,196,556. Of this amount, payments to vendors were $7,635,387 and employee payroll expenses were $1,547,471. Inflows resulting from interfund activity totaled $48,256 while other reductions to cash totaled $13,698. Cash and cash equivalents at September 30 were $56.9 million. Investments in the Governmental and Enterprise Funds at August 31 were $6,194,748. During the month of September, the value of investments fell $6,688. Notes and CD's accounted for in the Governmental and Enterprise Funds reside in multiple Funds investing surplus funds above what is needed for cash flow purposes. Total investments at September 30 were $6,188,060. Total cash and investments for Governmental and Enterprise Funds at August 31 were $65,185,862. Cash and investments at September 30 totaled $63,039,758. This is a decrease of $2,146,104 for the month. Monthly Financial Report — September 2018 October 11, 2018 Page 2 Trust and Agency Funds - Cash and cash equivalents at August 31 was $4,009,329. During September, cash receipts totaled $240,063. Investment income for the month was $112,249. There was also a net decrease in cash due to investment activities of $196,001 while outflows due to Interfund activity totaled $48,256. Reductions in cash and cash equivalents during September totaled $952,387. Of this amount, payments to vendors were $120,322 and employee payroll and related expenses were $832,064. Other disbursements totaled $642. Cash and cash equivalents at September 30 were $3,164,357. Total investments at September 30 were $140,313,636, a decrease of $448,465 from August 31. There were investment losses of $644,465 and a net transfer from cash of $196,001 that accounted for the change. Total cash and investments for Trust and Agency Funds at August 31 were $144,771,430. Cash and investments at September 30 totaled $143,477,993. This is a decrease of $1,293,437. Summary of Cash Activity by Fund Type (page 5) This report provides a breakdown of the cash activity for the month broken down by fund type. This breakdown is useful in identifying where the activity (receipts and disbursements) is occurring. There are times during the year when activity in certain funds such as the capital improvement and special revenue funds is higher than normal. This will distort the financial picture of some of the other components of the governmental funds such as the General Fund which tends to be more level and predictable in terms of spending and receipt of revenue. Each month the report will provide detail explanation on activity of the General Fund, the Village's primary operating fund. Other Fund activity will be highlighted as warranted. Detail on the activity of the General Fund and Prospect/Main TIF Fund follows. General Fund — Cash and cash equivalents at August 31 totaled $19,422,947. During September, cash receipts totaled $3,809,529, and investment income was $18,667. Significant cash receipts included the state and home rule sales tax and income taxes. Sales tax revenues for the month totaled $2,075,482. Of this amount, $1,949,840 was generated from the 1% state portion while $125,642 was generated from the .25% home rule portion. Sales taxes received in September were for Jun sales as there is a three-month lag in getting this distribution from the state. Income tax revenues for the month totaled $332,441. Income taxes received in September were for August. Additionally, a sale of real property totaling $567,362 was recorded in September. Parcels at 30-34 W. Busse located in the small triangle of the Prospect and Main TIF were sold as part of the 20 West redevelopment project. Disbursements from the General Fund for September included payments to vendors of $1,303,711, payments for employee wages and benefits of $1,367,957 and other disbursements of $5,564. There was also a net decrease in cash from Interfund transfers totaling $816,724. Cash and cash equivalents at September 30 were $19,757,187, an increase of $334,240 from August 31. In addition, investments consisting of certificates of deposit totaling $2,471,803 bring total cash and investments for the General Fund to $22,228,990. Prospect/Main TIF Fund — This TIF Fund is classified as a Special Revenue Fund due to the nature of the activity. A relocation expense totaling $3 million related to the Parenti and Raffaelli move was distributed during the month of September. Funds to support the payment came from the 2017 bond issue. Monthly Financial Report — September 2018 October 11, 2018 Page 3 Statement of Investments (page 6) This report provides a breakdown of investments by trust and agency funds and governmental and enterprise funds. The report also provides a fund -by -fund breakdown of the investments. Government and Enterprise Funds - Investments for the governmental and agency funds are made up of Certificates of Deposit. At September 30, there was a total of $6,188,060 invested in CD's and various governmental notes. These notes and CD's are investing surplus monies available from the governmental and enterprise funds. A detail list of holdings is included with this report. Trust and Agency Funds — The investments for the trust and agency funds are made up of certificates of deposits, fixed income investments and equity mutual funds. CD's (if any) held in the Escrow Deposit Fund will generally have maturities of between 30 and 120 days. Most of the reserves for this fund are invested in the more liquid money market account due to the nature of the deposit. At September 30, there was a total of $140,313,636 invested in a combination of fixed income and equity instruments. A detail list of holdings is included with this report. Escrow refunds are processed two times per month. Investment of the Village's pension funds is governed by an Investment Policy adopted by each Pension Board. Investments for the Police and Firefighter Pension Funds consist of various fixed income securities as well as equity mutual fund accounts. Wells Fargo is the third -party holder of the fixed income securities. The funds are managed by three investment management firms, Galliard, Segall Bryant and Mesirow Financial. Segall Bryant holds approximately half of the fixed income investments for the two pension funds while Galliard and Mesirow manage the balance of fixed income investments for these two funds. Each manager maintains a small portion of their portfolio in cash to help facilitate liquidity and trading. Investments in equities consist of mutual funds spread across various sectors (small, mid and large -cap stocks) as well as investment philosophies (value, core and growth). The funds also invest a small amount in international stocks. Each year the investment mix is evaluated for optimal diversification to meet pension fund investment policy goals and objectives. Equity investments held by the Police Pension Fund are managed by Sawyer Falduto Asset Management. A breakdown of where pension funds are invested is included with this report. Conclusion This cash position report is intended to provide a snapshot of the Village's cash position as of a particular month end date. Using this report, we are able to provide trend information to support cash management and maximize investment earnings while ensuring availability of funds to meet the Village's commitments. This report is provided to the Village Board and Finance Commission on a monthly basis. Please do not hesitate to contact me with any questions. David O. Erb Director of Finance VILLAGE OF MOUNT PROSPECT Preliminary Cash and Investment Position Report - All Funds For the Month Ended September 30, 2018 GOVERNMENTAL AND ENTERPRISE FUNDS Balance at August 31, 2018 Cash receipts Investment income Transfers from investments to cash Transfers to investments from cash Interfund activity Disbursements: Accounts payable Payroll Other Balance at September 30, 2018 Cash and Cash Total Cash and Equivalents Investments Investments $ 58,991,114.11 $ 6,194,748.36 $ 65,185,862.47 6,938,912.12 6,938,912.12 69,971.60 (6,688.43) 63,283.17 48,256.16 48,256.16 (7,635,387.48) (7,635,387.48) (1,547,471.01) (1,547,471.01) (13,697.49) (13,697.49) $ 56,851,698.01 $ 6,188,059.93 $ 63,039,757.94 TRUST AND AGENCY FUNDS * Disbursements: Accounts payable Payroll Flex spending Other Balance at September 30, 2018 (120,321.81) (818,844.79) (13,219.63) (641.75) (120,321.81) (818,844.79) (13,219.63) (641.75) $ 3,164,357.01 $ 140,313,636.38 $ 143,477,993.39 * Assets are restricted in purpose and do not represent discretionary assets of the government. 4 Cash and Cash Total Cash and Equivalents Investments Investments Balance at August 31, 2018 $ 4,009,329.16 $ 140,762,101.31 $ 144,771,430.47 Cash receipts 240,063.43 240,063.43 Investment income (loss) 112,248.85 (644,465.22) (532,216.37) Transfers from investments to cash 1,567,668.42 (1,567,668.42) - Transfers to investments from cash (1,763,668.71) 1,763,668.71 - Interfund activity (48,256.16) (48,256.16) Disbursements: Accounts payable Payroll Flex spending Other Balance at September 30, 2018 (120,321.81) (818,844.79) (13,219.63) (641.75) (120,321.81) (818,844.79) (13,219.63) (641.75) $ 3,164,357.01 $ 140,313,636.38 $ 143,477,993.39 * Assets are restricted in purpose and do not represent discretionary assets of the government. 4 �LO J F O ~ } U Z � ❑ z LL U, O Z ¢ W (D ❑ ¢ Q U O F � rLaw F LL a 0) ❑ Z(=i w W W U W N N� V CrONOeDN V' N 0 (mO —mO N O V ON(Q( MNMr O OaN r. -M 'IM(O LO o�o(o(o —(Duo O �--)nr .... ....Mr M N rcD es U1 M (0 Cl) 0)(n V M 0) r 0 a0 ui can ' ° C i a of " 0) ONi V W N V a. (ND(D V I N nON) mlMn 0000 NCD � V' (oN (rn0(0o0 00 N N �(r0(MO - 000 00� �(n rr `�' m� (V r — V) CN rn co0 (O m r v o v, r rnrn a w N(CD (00 ' C M mM (0) 00 0 V crtM 0) rn n (0 C6 ( aw ((pp MM Or (0D M(0 O N COCa a N w r N 0) rorM rn M00 M n O 00 C14 C14 N rn W 00 (A 1 r- 0) 0 rn M N�, 001 (n (D I— rn O Cl! M (Q (ram U0 ro Lo m v 00 n M (MD r M N M f0 Cl) O (7 m Cl) M M rnrn NLO a LO O O � co O ((On i[Oj a N N (O (O N r r m M M W COrW N m- V (M+).. (M D fVOo ° ° N� a 0)r 04 a❑ :3Vwa 000N rN cr) a' z D r 0) NLU `r-' O O Cl! r (0., N N FLL z ... t2 W V) H M (- CO (o . 0. U-> „ 4 (R CO , r W❑ Z i 00M (rM M a LL �(n Ni N Ua' CL u' w W N LO O r U 0 0 v e r a 0' W n N r. �. O LO 0 c) r0 I.. W0O M m V ( z V V N r F LL 0] (V r N W O y� 00 u) 0) W W M It M 0 0) 00 rn N (n , a <M 0 Z❑,,,, 0ICL 0(x0 act t� a m 0 W a i ❑ (N0 MLS N �N M `-' Lq m N V) � LL 0i M V� 0 Z O O N(mn V CO N r co Cl) rN(r0 r r r LL N( 2(p Lr) � O O J (n (O r (n rn r W 00 N Dim 0v r CO i N O r 0 0 '.. r''... U) ',.. W IT W 00 M M r Z rn M .... rn N 04 W rn N c 01 C N cc ZC a) 0 z W d �) a ¢ c3 aciS3 aNi— N E a) O 0 C.3 0) C c ❑ (D 0 01 X M 0 d o a m Q '0 N E a E W (a; E c '0 N N C N m Qu o •0 c a y o a a) v aa)i U m m cE E E E m m Z 2 d c adc�aCI�)'��'Da)ya)d .0 f,y(pm� a) = C L j0 N N 7 7 7 C W F y j 'C Q a) co> (a v Mn Mn Mn Mn c V1 a) U m U s F F � a 0 0 0 W 7 U� 2 F 5 VILLAGE OF MOUNT PROSPECT STATEMENT OF INVESTMENTS As of September 30, 2018 Maturity GOVERNMENTAL AND ENTERPRISE FUNDS Financial Date Maturity Purchase Financial Investment CUSIP/ Various Market Date Date Institution Description FDIC # Net Yield Value GENERAL FUND (001) 12/31/18 12/28/17 U.S. Treasury Note Treasury Note 912828A75 1.500% 1,241,740.90 12/13/19 12/28/17 Federal Home Loan Bank Agency Notes 3130AOJR2 2.375% 1,230,062.47 2,471,803.37 VEHICLE REPLACEMENT FUND (061) 05/30/19 12/28/17 Freddie Mac Agency Notes 3137EADGI 1.750% 1,243,756.25 06/12/20 12/28/17 Federal Home Loan Bank Agency Notes 313383MB4 1.875% 1,230,462.50 12/11/20 12/28/17 Federal Home Loan Bank Agency Notes 3130A3UQ5 1.875% 1,221,962.50 3,696,181.25 RISK MANAGEMENT FUND (063) 03/06/19 03/06/17 Mount Prospect State Bank Certificate of Deposit 354058 0.250% 20,075.31 20,075.31 TOTAL GOVERNMENTAL AND ENTERPRISE FUNDS $ 6,188,059.93 Maturity Purchase Financial Date Date Institution Various POLICE PENSION FUND (070) Various Various Wells Fargo Various Various Various Investment CUSIP/ Description Acct # Wells Fargo Investments Various Mutual Fund Investments Various FIRE PENSION FUND (071) Various 5/26/2015 Principal Life Insurance Company Group Annuity Contract Various Various Wells Fargo Wells Fargo Investments Various Various Various Mutual Fund Investments TOTAL TRUST AND AGENCY FUND INVESTMENTS * Assets are restricted in purpose and do not represent discretionary assets of the government. 8-10810 Various Various Interest Market Rate % Value Various $ 23,213,464.95 Various 50,042,556.36 73,256,021.31 Variable 5,978,683.22 Various 22,259,798.92 Various 38,819,132.93 67,057,615.07 $ 140,313,636.38