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HomeMy WebLinkAbout6.4 Motion to waive the rule requiring two readings of an ordinance and adopt AN ORDINANCE MAKING CERTAIN AMENDMENTS TO THE ANNUAL BUDGET ADOPTED FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2019 AND ENDING DECEMBER 31, 2019.4/15/2020 BoardDocs® Pro Agenda Item Details Meeting Apr 07, 2020 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD - 7:00 p.m. Category 6. CONSENT AGENDA Subject 6.4 Motion to waive the rule requiring two readings of an ordinance and adopt AN ORDINANCE MAKING CERTAIN AMENDMENTS TO THE ANNUAL BUDGET ADOPTED FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2019 AND ENDING DECEMBER 31, 2019. Access Public Type Action (Consent) Fiscal Impact Yes Recommended Action Adopt the Proposed Amendment #4 for the 2019 Annual Budget. Public Content The Village of Mount Prospect has an approved Budget in place for the year 2019. From time to time, the approved Budget is amended due to various reasons. There are various budget line items that need amendments due to reasons specified below. i BGG I,..,la,:< Aioo,ind ,,;r R rrget dr, t;e1, �Desi e ori 001 General Fund 56,965,965 567,400 57,533,365 040 Refuse Disposal Fund 4,542,185 121,800 4,663,985 050 Water and Sewer Fund 19,853,671 (48,000) 19,805,671 051 Village Parking System Fund 186,101 1,664,700 1,850,801 060 Vehicle Maintenance Fund 2,034,247 89,500 2,123,747 063 Risk Management Fund 9,208,873 255,000 9,463,873 070 Police Pension Fund 5,985,209 140,400 6,125,609 071 Fire Pension Fund 6,193,836 209,600 6,403,436 Amendments Total 104,970,087 3,000,400 107,970,487 Other Budgeted Funds 47,511,738 - 47,511,738 Grand Total 152,481,825 3,000,400 155,482,225 a) General Fund - The sale proceeds amount of $567,400 from 20 West was accounted in the General Fund as revenue in the FY 2018. The revenue belongs to the Prospect & Main TIF fund and to correct this error, a transfer is performed from the General Fund to the Prospect & Main TIF fund in the FY 2019. The transfer -out was not budgeted in the FY 2019, hence added herewith as an amendment. https://go.boarddocs.com/il/vomp/Board.nsf/Private?open&login 1/3 4/15/2020 BoardDocs® Pro b) Refuse fund - There are certain employees whose salaries were budgeted in the Water/Sewer Fund, but due to reallocation the expenses were booked in the Refuse Fund. The personnel expense budget is being increased by $61,400, of which there is a corresponding decrease of $48,000 in the Water/Sewer Fund budget and $13,400 is an increase in the overtime budget to match with the increased expenses. Besides that, an adjustment of $46,900 is warranted in refuse collection related contractual services: $8,400 in postage expenses, and $5,100 in other professional services. c) Water/Sewer Fund - The personnel budget for the Water/Sewer Fund is being reduced by $48,000 as the expenses of certain employees are being coded to the Refuse Fund due to reallocation of the costs. d) Village Parking System Fund - The Maple Street Parking Lot was an asset under the Parking System Fund. The Maple Street Lot was sold and the net proceeds of $1.6 million were deposited per the accounting rules. Sale proceeds from the sale of Maple Street Lot are to be used for the development expenses under Prospect & Main TIF Fund. Since there is an asset in the Parking System Fund, we have to book the proceeds in the Parking Fund first and then book a transfer from Parking System Fund to the TIF Fund (per the Accounting GAAP). This amendment of $1,602,700 facilitates the transfer from Parking System Fund to the Prospect & Main TIF Fund. Besides that, the amendment of $62,000 is warranted for the lease of Lions Park Commuter's Parking Lot. The Village has paid $100,000 for an 18 months lease, of which $62,000 is amortized in the FY 2019. e) Vehicle Maintenance Fund - The Vehicle Maintenance Fund needs an amendment for the Personnel Expenses in the amount of $89,500 due to the reallocation of the expenses as well as added health insurance and overtime costs. f) Risk Management Fund - The Risk Management Fund needs an amendment in the amount of $255,000, of which $215,000 is needed to match with the added worker's compensation claims costs for the current and past claims. The remainder amount includes $25,000 for the General Liability Claims and $25,000 is accounted for Insurance Premiums and IRMA Contributions. g) Police Pension Fund - The original budget accounts for the pension benefits for retirees as of January 1, 2019. The increase in the budget by $140,400 is warranted by the newly retired employees during the year 2019. h) Firefighter's Pension Fund - The original budget accounts for the pension benefits for retirees as of January 1, 2019. The increase in the budget by $209,600 is warranted by the newly retired employees during the year 2019. The Revenue Budget for the FY 2019 also requires amendments as below: a) General Fund - The State Sales Tax revenue has outperformed the original budget by $2,285,000 as expected. The Income-tax revenue has also outperformed by $515,000. In addition, the Use Tax and Building Permit fees have outperformed by $300,000 and $315,000 respectively. Please also note that though some revenues are recognized per the GASB rules, a significant amount of these revenues (close to 3 months) are booked as receivables and are received during the first quarter of 2020. The total amendment/increase to the General Fund Revenue Budget is $3,415,000 b) Flood Control Construction - The Flood Control Construction fund had originally $2,000,000 in the budgeted revenue as Grants. The Grant was not received by the end of the year 2019. The Grant is expected to arrive in 2020 and is also reduced to $1.3 million from $2.0 million. The Village's 2020 budget includes the Grant Revenue in the amount of $1.3 million for the year 2020. Hence, the Final 2019 Budget is reduced herewith by $2.0 million. https://go.boarddocs.com/il/vomp/Board.nsf/Private?open&login 2/3 i,,),ind �DelM;abri C it r eir-rI ud,fq t1t, � �,���'�q�,nr ��,,�,oar �,�� (Decrease) �e Amendment 001 General Fund 27,894,000 3,415,000 31,309,000 024 Flood Control Construction Fund 2,000,000 (2,000,000) - 049 Prospect and Main TIF District - 2,170,100 2,170,100 051 Village Parking System Fund - 1,370,300 1,370,300 070 Police Pension Fund 3,047,500 9,240,000 12,287,500 071 Fire Pension Fund 3,542,000 7,380,000 10,922,000 Amendment Total 36,483,500 21,575,400 58,058,900 Other Budgeted Funds 108,501,813 - 108,501,813 Grand Total 144,985,313 21,575,400 166,560,713 a) General Fund - The State Sales Tax revenue has outperformed the original budget by $2,285,000 as expected. The Income-tax revenue has also outperformed by $515,000. In addition, the Use Tax and Building Permit fees have outperformed by $300,000 and $315,000 respectively. Please also note that though some revenues are recognized per the GASB rules, a significant amount of these revenues (close to 3 months) are booked as receivables and are received during the first quarter of 2020. The total amendment/increase to the General Fund Revenue Budget is $3,415,000 b) Flood Control Construction - The Flood Control Construction fund had originally $2,000,000 in the budgeted revenue as Grants. The Grant was not received by the end of the year 2019. The Grant is expected to arrive in 2020 and is also reduced to $1.3 million from $2.0 million. The Village's 2020 budget includes the Grant Revenue in the amount of $1.3 million for the year 2020. Hence, the Final 2019 Budget is reduced herewith by $2.0 million. https://go.boarddocs.com/il/vomp/Board.nsf/Private?open&login 2/3 4/15/2020 BoardDocs® Pro c) Prospect & Main TIF Fund - The sale proceeds from 20 West was deposited in the General Fund instead of Prospect & Main TIF Fund in FY 2018. The error is being corrected in FY 2019 and the TIF fund is getting $567,400 from the General Fund as a transfer in. The sale proceeds from the Maple Street Parking Lot were deposited in Parking System Fund due to the accounting rules and then it is being transferred to the TIF Fund as a transfer in for $1,602,700. Both of these transfers are also accounted for in the amendments to the expenses above. d) Parking System Fund - The sale proceeds from the Maple Street Parking Lot is recognized in the Parking System Fund and that has warranted the recognition of gain due to the sale of assets in the amount of $1,370,300. e) Police Pension Fund - The Police Pension Fund investments have outperformed in the year 2019 and the revenue budget is adjusted to match with the actual revenues in the amount of $9,240,000. f) Firefighter's Pension Fund - The Firefighter's Pension Fund investments have outperformed in the year 2019 and the revenue budget is adjusted to match with the actual revenues in the amount of $7,380,000. The amendment herewith adds $3,000,400 in the expense budget and $21,575,400 in the revenue budget. The majority of the amendments in the revenue budget is warranted by the outperforming revenues, especially in the Pension Funds. After the adoption of the amendments proposed herewith, the final 2019 expenditure budget will be $155,482,225 and the final revenue budget will be $166,560.713. Alternatives 1. Adopt the Proposed Amendment #4 for the 2019 Annual Budget. 2. Action at the discretion of the Village Board. Staff Recommendation Adopt the Proposed Amendment #4 for the 2019 Annual Budget. Budget Amendment 2019 #4 - April 7, 2020.pdf (1,115 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 no 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. Motion & Voting Approve the List of Bills - March 11, 2020, to March 31, 2020 - $4,787,056.62 Motion by Paul Hoefert, second by William Grossi. Final Resolution: Motion Carries Yea: Paul Hoefert, William Grossi, Eleni Hatzis, Colleen Saccotelli, Michael Zadel, Richard Rogers https://go.boarddocs.com/il/vomp/Board.nsf/Private?open&login 3/3