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4.1 2019 Proposed Budget Discussion - Departmental Operating and Non -Departmental
Budgets
Information
The Village Board will be holding the second of a series of meetings to review the Proposed 2019 Budget. The first
meeting, held October 9, was a review of the Village's five-year Community Investment Program (CIP). This second
meeting will be a review of the departmental operating and non -departmental budgets. The spending plan being presented
is a responsible and transparent financial plan that incorporates key policies and priorities established by the Mayor, Board
of Trustees and Finance Commission.
The Proposed Budget for 2019 totals $162,275,489, an increase of 28.6% from the amended 2018 Budget. The increase
was primarily the result of an expanded capital program, additional debt service related to funding of separate Police and
Fire Headquarter projects, and increased pension payments. The operating budget will see an increase of $1.4 million, or
1.9% from the 2018 Budget. Increases to debt service are related to new debt in the Water/Sewer Fund and Prospect and
Main TIF Fund (Series 2018A) and to fund costs associated with the construction of the new Police and Fire Headquarter
facilities (Series 2018B). New utility user fees and incremental revenues generated by new development will support the
repayment of the new Series 2018A debt. Capitalized interest and funds on hand will support repayment of the Series
2018B debt in the first four years. Future debt service payments supported by property taxes have been structured to
come in at or below the current tax levy plan. There is no impact to the levy from the issuance of the 2018A or 2018B
bonds.
Other items of note regarding the Proposed 2019 Budget include:
• The 2019 Proposed Budget for the General Fund totals $57,243,467. This is a balanced budget based on our
assumptions for current period revenues and available cash reserves. Cash reserves are being used for the purpose
of funding capital and debt service transfers and for providing property tax relief.
• Two transfers totaling $1,540,000 are included in the Proposed 2019 General Fund budget. The first is a transfer to
the Capital Improvement Fund in the amount of $750,000 supporting mid-range capital projects. The second is a
transfer to the Debt Service Fund in the amount of $790,000 supporting debt service payments for the 2018B bonds
(Police and Fire Headquarters). Both transfers are in line with the Village's Fund Balance Policy as actual reserves in
this Fund exceed the policy level.
• A water and sewer rate increase of 8.1 percent is also included in this Budget. The impact of this increase on a
resident is estimated to be $5.30 per month. The larger than typical increase is due to implementing the long-term
capital strategy as outlined in the Comprehensive Water and Sewer Rate Study completed in 2017.
• The proposed increase in the 2018 property tax levy is 1.66 percent for a total levy of $19,404,114. A subsidy from
the General Fund to moderate the property tax increase for the 2018 levy is $420,000. This is the third year of a
four year plan to smooth out increases in the public safety pension levies.
• An anticipated increase in the refuse collection fee of $15 will NOT take place as planned as costs for this service
have decreased from the prior year. This is the third year in which the refuse collection fee will not see an
increase. No other fee increases are included in this spending plan.
The financial position of the Village remains very strong. The bond rating agencies of Standard and Poor's and Fitch
awarded AA+ ratings on the most recent bond offerings of the Village. Reserve levels have continued to exceed our
expectations as a result of revenue growth and responsible spending plans. Total available balances at December 31, 2018
are projected to be $77.6 million. These are the funds available to support ongoing operations. Of this amount, $19.4
million are reserve balances in the General Fund, the Village's main operating budget. General Fund fund balance as a
percent of 2019 expenditures is 34.0 percent. The Village's fund balance policy calls for the General Fund to maintain a
reserve level of between 20.0 and 30.0 percent.
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The Finance Commission met on October 18 to hear departmental presentations on proposed 0.. • operating budgets
and a presentation on other non -departmental budgets. The Finance Commission is scheduled to meet again on October 25
to discuss the Proposed 2019 Budget further and prepare a recommendation to the Village Board for the November 7
Board e'
First and second readings of the proposed 2019 Budget and Property Tax Levy will be held at the November 7 and
November 20 Village Board Meetings. Public hearings will be held those dates to provide additional opportunities for
discussion and public input.
Below is a link to the Proposed 2019 Budget Document. Copies are also available at the Mount Prospect Library, 10 S.
Emerson Street and Village Clerk's Office, 50 S. Emerson Street.
Proposed 2019 Budget
Staff will be on hand to make presentations on their departmental budgets, answer questions and facilitate discussion.
Below is a link to the Departmental budget presentations.
Departmental Presentations
Alternatives
1. Village Board discussion of the Proposed 2019 Budget
2. Action at discretion of Village Board.
Staff Recommendation
Village Board discussion on the Proposed 2019 Budget
Administrative Content
Executive Content
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