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HomeMy WebLinkAbout0751_001MINUTES COMMITTEE OF THE WHOLE NOVEMBER 1 0, 1987 I. ROLL CALL The meeting was called to order at 7:32 p.m. Present at the meeting were: Mayor Carolyn Krause, Trustees Ralph Arthur, Gerald Farley, Leo Flo ros, Norma Murauskis, George Van Geem and Theodore. Wattenberg. Also present at the meeting were: Village Manager John Fulton Dixon, Assistant to the Village Manager Michael Janonis and Director of Planning and Zoning Steve Park. Also present were three persons from the print media. MINUTES The Minutes of the Committee of the Whole meeting of October 13, 1987 were accepted and filed. III* CITIZENS TO BE HEARD Mr. Jagus, 121 North Stratton Lane, 296-7471, appeared before the Committee to make a complaint regarding the parking situation along Henry Street behind St. Emily's Church. He indicated that when events at the Church were held, people parked along the street and made it extremely difficult for him and his neighbors to enter and exit their driveways,. Mr. Jagus also indicated that some of his neighbors were not following Village Ordinances regarding the placement of garbage cans at the curb. Mayor Krause indicated that the Village Manager and staff would took into this situation and *report back to Mr. Jagus. IV. INTRA -VILLAGE BUS SYSTEM Assistant to the Village Manager Michael Janonis reviewed with Committee members his memo regarding his preliminary findings on the possibility of setting up an Intra -Village Bus System similar to the one currently operation in the City of Niles. Mr. Janonis indicated that the minimum cost to the Village of Mount Prospect would be $300,000-$500,000 on an annual basis for operating expenses and an additional $.500,000 for capital purchases and other start-up costs. Mr. Janonis reported that while Pace currently subsidizes the Niles Bus System, it would take some one and one-half, to two years for Pace to review a similar request by the Village of Mount Prospect. Village Manager John Fulton Dixon indicated that in his discussions with represen- tatives from local shopping centers there was little interest in an Intra -Village Bus System to bring customers to the stores. Mr. Dixon indicated that these represen- tatives indicated more interest in a bus A-ystem that would help their employees get 1W to work than a customer -oriented bus - str. 0 , :ems. Mr. Janonis also reviewed with Committee members the current network of Pace bus routes servicing the Village as well as the Senior Taxi Cab Program and the Dial -A- Ride Programs operated by both Wheeling and Elk Grove Townships,. After brief discussion among Committee members, it was the consensus of the Committee not to proceed with further study on this matter as cost was excessive especially in light of the fact that there was little interest expressed on the part of local business persons. V 10 CITIZENS UTILITIES RATE CASE - UPDATE Village Manager John Fulton Dixon reviewed with Committee members the ruling by the Illinois Commerce Commission allowing Citizens Utilities Company to supply Lake Michigan water to Mount Prospect residents through a purchase contract with the Village of Glenview. Mr. Dixon indicated that the Village of Mount Prospect intervened in this Case and presented arguments against a pass-through of the entire cost of providing water to Mount Prospect residents. However, he reported that with few exceptions, the Illinois Commerce Commission granted Citizens Utilities Company everything they had requested in the Case. Mr. Dixon said that this meant that on the positive side, Mount Prospect residents being serviced by Citizens Utilities Company could expect Lake Michigan water as soon as two years from now but that on the down side, they could expect to pay substantially more for their water. Mr. Dixon also indicated that from the information supplied - to the ICC by Citizens Utilities Company, Mount Prospect residents would be supplied with 100% Lake Michigan water, 90% of the time due to restrictions in water allocation and peak demands during the summer months* However, this was not expected to be a serious problem. VI. TEXT AMENDMENTS - ZONING, Director of Planning and Zoning Stephen Park reviewed with the Mayor and Board of Trustees a number of potential Text Amendments to the Zoning ordinance. Proposed changes included modifications to the fee structure as well as the parking regulations. After brief discussion on each item, the Committee approved the proposed changes and directed staff to prepare the necessary Ordinances to enact the changes,. VII* ANY OTHER BUSINESS Village Manager John Fulton Dixon reported to Committee members that at the next regularly scheduled Committee of the Whole meeting, he would be b ri nging to the Committee members the Six -Month Budget Review. EXECUTIVE SESSION On a Motion by Trustee Leo ;Toros and Seconded by Trustee Ralph Arthur, the Mayor and Board of Trustees convened an Executive Session at 8:43 p.m. VIIIsADJOURNMENT 0 There being nr other business to be conducted by the Committee of the Whole, the meeting was adjourned at 9:03 p.m. Respectf ully submitted, MICHAEL Ee JANONIS Assistant to the Village Manager MEJ/rcw IN V'11age of N, M� 11�'t P�111�r*C�Spec Mount Prospect, Illinois INTEROFF10E MEMORANDUM TO: John Fulton Dixon, Village Manager FROM: David C. Jepson, Finance Director DATE: November 19, 1987 SUBJECT: Budget Projections for the 87/88 Fiscal Year The budget process in the Village of Mount Prospect includes ,several distinct stages during its life -cycle. The first stage is a planning phase in which needs are identified, programs evaluated, and services recommended; the second is a priority setting stage during which the Village Board reviews theproposed recommendations and seeks citizen input through public hearings; the third is the legislative stage in which the budget is formally adopted by the Village Board and becomes the author izat,ion, to exp end fun'ds,; and the last stage is implementation. Prior to the imp lementat 1,,,on sage, the budget process is primarily a planning process, but when the budget is adopted, it actually becomes the fiscal plan for the coming year. During the implementation stage, the budget acts as a control device whereby receipts and expenditures are compared to the approved fiscal plan. Monthly reports are prepared which identify each, financial transaction with the budget. These reports, containing varying amounts of detail, are distributed to the Village Board, the Village Manager, department heads, supervisors and other interested nterested parties. Additionally, the Annual Financial Report records as a permanent record the actual results for the year compared to the budgeted amounts. One additional, benefit of the budget process that is realized during the implementation stage is the information obtained in the current budget year that can be used in planning for the next budget cycle. After*a sufficient amount of time has elapsed during the current fiscal year, trends are established and these trends can be used for projecting totals for the entire budget year. When reasonably accurate projecti",ons of total revenues and expenditures can be made, they can be used to estimate the resources (fund balances) that will be available to start the next budget year. During the past several weeks,- each line item in the 1987/88 budget has been reviewed with the respective department heads to estimate total expenditures for the year. Using this and other available information, estimates have been made of the expected revenues and expenditures by fund and the fund balances that should be available to start the next fiscal year. The results are reported in four attached schedules: 1) Revenue Estimates by Fund; 2) Expenditure Estimates by Fund* 3) Estimated Revenues and Expenditures of the General Fund, and 4) Estimated Unobligated Fund Balances. The schedules are organized by fund and contain the actual 1986/87 fiscal year totals, 1987/88 budget amounts, 12 month estimated amounts for 1987/88, and the expected increase or decrease from the original budget. The General Fund Schedule also includes supplementary pages which explain significant increases or decreases. A discussion of some of the more noteworthy information in the attached schedules follows: Budget Projections for the 87/88 Fiscal Year Page 2 Schedule 1 Estimated Revenues By Fund Total Village revenues, net of interfund transfers, for the 1987/88 fiscal year are expected to be $32,970,045, a total of $1,9509755 more than had been budgeted. From Schedule 1, it can be seen that there are a number of decreases in certain funds (identified by brackets) as well as increases in other funds. The differences in the seven funds listed below account for most of the total difference: General Fund $ 4689425 Downtown Redevelopment 19870 4419500 Downtown Redevelopment 1985 193039700 Citizen Bonds 1987A 3559500 P. W. Facility Const. 1987E 9199590 SS #6 Const. (George/Albert) < 7209000> Debt Service Funds: G. 0. Bonds 192089585 The increase in the General Fund can be attributed to flood reimbursements of $213,000, bank loan proceeds of $175,000, and the Food and Beverage Tax of $225,000. Specific General Fund changes will be discussed in more detail with Schedule 3. The changes in each of the other funds listed are the result of bond sales or, in the case of SS #6, because bonds were not sold. Four bond issues were sold in 1987: 1) Citizen Bonds for the P. W. Facility; 2) G. 0. Bonds for the P. W. Facility and Equipment; 3) G. 0. Bonds for the TIF District; and 4) G. 0. Bonds to refund outstanding 1985 Downtown Redevelopment Bonds. Schedule 2 Estimated Expenditures By Fund Total expenditures, net of interfund transfers, are expected to be $30,564,270, some $3,130,635 less than the $339694,905 that had been budgeted. There are expected increases in the General Fund of $345,745, the Motor Fuel Tax Fund of $62,350, two Capital Projects Funds and the General Obligation Bond Funds. The changes in the Capital Projects Funds and in General Obligation Bonds, again, are the result of 1987 bond issues, In addition to the increases mentioned, there are a number of decreases. The CDBG Fund is expected to be down $155,675, the Water Fund down $160,225, the Risk Management Fund down $108,300 and three of the Capital Projects Funds are significantly less than budgeted. Following is a brief explanation of the more material changes: General Fund: Legal Fees $ 909000 Flood Loans 3599000 Flood Costs 2139700 Departmental Reductions <1009000> Street Projects < 709000> Sewer Rehab Costs < 52,000> Refuse Disposal Costs < 309000> 41 0 170Q Budget Projections for the 87/88 Fiscal Year Page 3 The increase in the Motor Fuel Tax Fund is because the Hopi Lane reconstruction was budgeted in 86/87, but the work was not started until 87/8B. The decrease in the CDBG Fund is due to reduced activity in both the Multi -Family Rehab Program and the Downtown Improvement Program. The decrease in the water Fund is due to lower JAWA costs than had been budgeted and reduced personnel costs. In the Risk Management Fund, the seduction is due to lower claims than had been anticipated. Changes in the Capital Projects Funds can generally be attributed to the level of progress of each project. We had budgeted the total cost of the Public Works Facility in the 87/88 budget but that project will not be completed until late 1988. Projects that ,are not completed in the current budget year will be rebudgeted in 88%89. The reduction in the Capital Equipment, Repair and Replacement Fund is because a_ budgeted transfer of $1,100,000 to the Public Works Facility Construction Fund is being deferred until the bond proceeds have been expended. The increase in General Obligation Bonds of $1,047,440 is primarily due to the refunding of the 1985 bond issue. Schedule 3 Estimated Revenues and Expenditures, General Fund This report summarizes the revenues by category and expenditures by function in the General Fund. Total revenues are expected to be $13,541,925 and total expenditures $13,639,265 for an excess of expenditures over revenues of $97,340. There are a number of significant revenue and expenditure changes when estimated amounts are compared with budgeted amounts. Sales tax receipts are expected to be $400,000 less than budgeted, but the recently adopted Food and Beverage Tax is expected to produce $225,000, and flood related revenues account for some $420,000 of non -budgeted revenues. On the expenditure side, departmental operating expenditures have been reduced approximately $100,000 and capital outlay and contractual costs are down $152,000. However, legal fees are expected to be $90,000 higher than budgeted and flood related expenditures account for $572,700 in non -budgeted expenditures. An analysis of revenues and expenditures that exclude major non -budgeted items indicates that estimated revenues (exclusive of non -budgeted amounts) are some $215,000 less than budget and estimated expenditures (exclusive of non -budgeted items) are some $248,000 less than budget. This analysis points out the importance of both the additional revenue sources adopted during the current year and the expenditure reductions that were realized. Notes explaining each noteworthy change are included on page 2 and 3 of Schedule 3 Budget Projections for the 87/88 Fiscal Year Page 4 Schedule 4 Estimated Unobligated Fund Balances The purpose of this schedule is to determine the estimated cash balances as of April 30, 1988. Total estimated revenues for 1987/88 are added and total estimated expenditures for 1987/88 are subtracted from the actual unob l i g at ed fund balances as of April 30, 1967 to arrive at the estimated balances expected at April 30, 1988. The available balances at the start of the next budget year are important elements in the fiscal planning for the new budget year. Overall, it is expected that fund balances will show an increase of $2,405,775 from $9,758,467 to $12,164,242 during the 1987/88 fiscal year. However, when the Capital Project Funds totals are subtracted, the operating fund balances will show a net decrease of $1,100,475. Following are comments on individual funds: General Fund The fund balance of t1 decrease from $1,947,861 to $1,850,521 as this amount is approximately $340,000 more the budget was adopted. The improvement budgeted expenditures and the adoption o projected balance represents 13.6 0 o f esti is generally recognized that a minimum fu working cash purposes to cover periods bet and for contingencies. ie General Fund is expected to of April 30, 1988. However, than had been anticipated when can be attributed to reduced r a Food and Beverage Tax. The hated 1987/8$ expenditures. It id balance of 10°0" is needed for veen property tax collections Special Revenue Funds It was expected that the Special Revenue Funds would be drawn down during 87/88. It was anticipated that the Revenue Sharing Fund would be completely exhausted in 86/87 and the Motor Fuel Tax Fund would be reduced. The balance of $456,779 in the MFT Fund is somewhat better than expected because of reduced costs due to the relatively mild winter of 86/87. A deficit balance was projected in the IMRF Fund, but a transfer from the General Fund is being made to cover the deficiency. Water Fund The expected balance of $1,378,961 in the water Fund represents a decrease of $1,139,155, but it is $351,721 more than the amount projected at the start of the fiscal year. The better results can be attributed to lower expenditures than had been expected during the last six months of 1986/87 and reduced costs in the current year. A water rate increase that had been planned for the 87/88 fiscal year has been deferred but should be scheduled for May 1, 1988. Risk Management Fund The increase in fund balance is the result of lower insurance claims than had been expected. Budget Projects for the 87/88 Fiscal Year Page 5 Capital Projects Funds Except for the Capital Equipment, Repair and Replacement Fund (CIRR Fund), the balances in these funds are dependent upon the status of various 'projects. It should be mentioned that $1,100,000 that was budgeted for the new Public Works Facility in the CIRR Fund will be deferred until the next budget year. The other balances will be used for the specific projects they were established for. Debt Service Loans The increased balance in the debt service funds had been anticipated to provide for increased principal and interest payments on the 1987 bond issues. In conclusion, the attached schedules show total estimated revenues and expenditures for the current fiscal year along with estimated fund balances that should be available as of April 30, 1988. The projections are based upon actual data for the first six months of the year and although they are subject to change, I believe they are reliable. As mentioned earlier, the budget as adopted, becomes the fiscal plan of the Village. This plan, as is the case with other plans, may need to be changed when circumstances change or when new opportunities become available. Changes within a fund may be made at the discretion of the Village Manager. However, changes that increase the amount of any specific fund must be formally approved by a budget amendment. A schedule of budget amendments to provide for changes during the first six months of 87/88 is being prepared and will be presented at a December Board meeting, DCJ/sm -XIN Schedule 1 VILLAGE OF MOUNT PROSPECT Estimated Revenues By Fund For the Fiscal Year Ending April. 30, 1988 Fiscal Year 86/87 87/88 87/88 Increase or Actual Budget Estimated <Decrease> General Fund $1299609959 $1390739500 $1395419925 $ 468,425 Special Revenue Funds: Revenue Sharing Fund $ 919694 $ $ $ Motor Fuel Tax Fund 9499725 975,000 940,000 < 35,000> Comm. Development Block Grant 2869020 472,950 3179275 < 155,675> IL Municipal Retirement Fund 3309891 400 000 4118.1000 18 , 000 Totals $ 196589330 $ 1 , 847 , 950 $ 196759275 $< 1729675> Enterprise Funds: Water & Sewer Fund $ 590389723 $ 520109000 $ 5,0059900 $< 49100> Parking System Revenue Fund 12921,796 1409160 1349560 < 51600> Totals $ 591689519 $ 59150,160 $ 5,1409460 $< 99700> Risk Management Fund: $ 192859454 $ 11395,200 $ 1 , 360 , 600 $< 349600> Capital Projects Funds: Capital Equip. , Repair, Repl. $ 6979135 $ 900,900 $ 1 ,044,085 $ 1439185 Corp. Purposes Constr. . 1973 89293 11,500 119190 < 310> Downtown Redevlpt . 1987C AW 4419500 441 ,500 Downtown Redevlpt . 1985 699694 1,1159000 2,418,700 193039700 Citizens Bonds Const. 1987A 3559500 355,500 P W Facility Const. 1987B 59000,000 5,919,590 9199590 SSA #5 Const. Lake Water 191639052 1 9171 9100 191769306 5,200 SSA #6 Const. George/Albert 0 00 � 720 000 < 7201000> Totals $ 199389174 $ 8 , 9'18 , 500 $111366,865 $ 294489365 Debt Service Funds: General Obligation Bonds $ 7809063 $ 19564,510 $ 297739095 $ 192089585 Special Service Area Bonds 362,290 415 , 720 3672075 < 48 , 645> Totals $ 191429343 $ 199809230 $ 391409170 $ 191599940 Pension Funds: Police Pension Fund $ 3 , 223 , 442 $ 1 , 293 , 000 $ 192159500 $< 779500> Firemen's Pension Fund W*MM3 263 829 1368 500 1,35 7 ,5 00 < 11,000> Totals $x6,487,271 $2,661,500 $2,5739000 $< 889500> Totals - All Funds $3096419Q50 $3590279040 $38 , 798 , 295 $ 39771,255 Less Interfund Transfers <2 791 O85> , 4,007 750> $<5 828 , 250> $<1 , 820 , 500> Totals - Village Funds 11 1 2 m 32 97" Q, 0451 950 3 7�5 Capital Projects Funds: Capital Equip., Repair, Repl. $ 573,773 $ 1,7919270 $ 575,755 $<192159515> Schedule 2 659731 VILLAGE OF MOUNT PROSPECT < 1 9825> Downtown Redevlpt. 19870 $ 191479156 **W1 -stimated Expenditures By Ful 4419500 Downtown Redevlpt. 1985 7049994 For the Fiscal Year Ending April 30, 1988 00 $ 19293,000 $ 1,215,500 $< 779500> P W Facility Const, 1987E 116,638 59000,000 31301t635 Fiscal Year SSA #5 Const. Lake Water 86/87 19375t000 87/88 19400 87/88 Increase or 720 000 Actual <7210, O0O> Bud et $ 299359627 Estimated <Decrease> General Fund $1294719793 $13,2939520 $1396399265 5,64 270 . 11 $ 345,745 Special Revenue Funds: Revenue Sharing Fund $ 1619974 $ $ $ Motor Fuel Tax Fund 19021,754 19020t500 1,082,850 62,350 Comm. Development Block Grant 2869020 472,950 3179275 < 1559675> IL Municipal Retirement Fund 380,322k 400,000 41,71900 17_1900 Totals $ 198509070 $ 198939450 $ 19818,025 $< 759425> Enterprise Funds. Water & Sewer Fund $ 499889131 $ 69305t28O $ 691459055 $< 1609225> Parking System Revenue Fund 82 020 134 070 2- 1171 755 < 179215> Totals $ 5,070,151 $ 6,440,250 $ 6,262,810 $< 177t440> Risk Management Fund: $ 190389016 $ 113729800 $ 192649500 $< 1089300> Capital Projects Funds: Capital Equip., Repair, Repl. $ 573,773 $ 1,7919270 $ 575,755 $<192159515> Corp. Purposes Constr. 1973 659731 28,000 - 269175 < 1 9825> Downtown Redevlpt. 19870 $ 191479156 **W1 4419500 4419500 Downtown Redevlpt. 1985 7049994 1t123p000 291399150 1,0169150 Citizens Bonds Const. 1987A 00 $ 19293,000 $ 1,215,500 $< 779500> P W Facility Const, 1987E 116,638 59000,000 31301t635 <196989365> SSA #5 Const. Lake Water 1,4749491 19375t000 1p376,400 19400 SSA #6 Const. George/Albert 7'- 720 000 $36,392,520 <7210, O0O> Totals $ 299359627 $10,0379270 $ 79860,615 $<291769655> Debt Service Funds: General Obligation Bonds $ 800,556 $ 19570,265 $ 2,6179705 $ 19047$440 Special Service Area Bonds 3462600 4339600 356,1600 < 77 9 0000,,> Totals $ 191479156 $ 2,003,865 $ 2,974,305 $ 970,440 Pension Funds: Police Pension Fund $ 3,223,442 $ 19293,000 $ 1,215,500 $< 779500> Firemen's Pension Fund M~ 3,263,8299, 123682500 1,357,500 < 119000> Totals $694879271 $296619500 $2,5739000 $< 889000> Totals - All Funds $3190009084 $37,702,655 $36,392,520 $09310,13-5> Less Interfund Transfers $<2 o 791 085> $<49007,750> $<5 828 250> $<L,820 15,00> Totals - Village Funds 2,08.0 999 $33,694 5 =,j690 5,64 270 . 11 5> 1,3,,Q 6 3, )LLAGE CSF MOUNT PROSPECT Schedule 3 EsL .ced Revenues and Expenditurk, For the Fiscal Year Ending April 30, 1988 General Fund Expenditures: Public Representation $ 90,474 $ 529225 $ 59,125 Fiscal Year 69900 ( 7) 86/87 87/88 87/88 Increase or 76,150 Actual Bud et Estimated <Decrease> ( A) Revenues: 259000> Cable TV Operations 1069689 1109870 Property Taxes $ 395459438 $ 399859400 $ 3,9979800 $ 129400 1,496,533 Sales Tax 495549178 499009000 495009000 < 4009000> ( 1) Sales Tax - Special Pmt 362,076 108,600 wW aa State Income Tax 193659632 192879500 193229500 35,000 121870> Food & Beverage Tax 000, .00 225,000 225,000 ( 2 Other Taxes 169,866 1819500 2439000 619500 3 ) Licenses, Permits, Fees 116929552 196809600 1,7659600 859000 ( 4 ) Fines 331,999 3059000 3109000 59000 2239188 Investment Income 1319650 120,500 1659650 459150 Streets & Public Property Flood Reimbursement 2879975 391699315 2139205 213,205 ( 5) Other Income 5199593 6139000 6249170 119170 90,375> Loan Proceeds Capital Improvements 1759000 175 000 ( 6) Total Revenues $129960,959 $139073,500 $13t5419925 $ 468 9425 969915 Expenditures: Public Representation $ 90,474 $ 529225 $ 59,125 $ 69900 ( 7) Village Administration 3149797 314,500 3909650 76,150 ( 8) Salary Administration (B) 4" 259000 < 259000> Cable TV Operations 1069689 1109870 109,210 < 11660> Finance Department 1,496,533 1 , 565 , 500 129609865 395,365 ( 9 ) Village Clerk's Office 81,653 110t525 108,600 < 1,925> Police Department 311709922 392B29355 392699485 < 121870> Fire Department 311379021 393199765 3,2889070 < 31,695> Central Dispatch- 296 , 671 329,710 329,710 Human Services 154,056 1839170 1719580 < 119590> Planning and Zoning 2239188 2519250 2329B45 < 189405> Streets & Public Property 299399430 39057,105 391699315 112,210 (10) Engineering Division 3839578 5259170 434,795 < 90,375> (11) Capital Improvements 529000 < 529000> (12) Civic Groups 629385 979775 969915 < 860> Pension 14 335 9 16...600 18 100., 1,500 Total Expenditures $1294719732 $13,2939520 $1396399265 $ 345,745 Excess or <Deficiency> of Revenues over Expenditures2 > < 7 3,4 > 12 0 (13} 0 0 (A) See attached explanatory notes. (B) Salary Administration amount of $265,000 redistributed to other General Fund Departments. Schedule 3 Page 2 VILLAGE of MOUNT PROSPECT General Fund Revenues and Expenditures For the Fiscal Year Ending April 30, 1988 Explanatory Notes 1 Sales Taxes are expected to be $400,000 less than the budgeted amount of $4,900,000. Sales Tax collections for the 86/87 fiscal year totaled $4,554,178, and were expected to increase in 87/88. However for the first six months of 87/88, sales tax revenues are less than the same period in 86/87. For May through October, 1986 sales tax receipts were $2,207,060 compared to $2,187,994 for the same months in 1987. Additionally, indications are that these amounts will not increase substantially in the coming months. 2. The Food and Beverage Tax is projected at initial estimates. The tax went into effect as of November 1, 1987 but the first actual receipts will not be received until late in December. 3 other Taxes include an estimated $30,000 for the newly adopted Real Estate Transfer Tax. The balance of the increase is due to higher Personal Property Replacement Taxes received from the State of Illinois. 4 Permit related fees continue to be at a peak level of activity and are responsible for most of the increase in the Licenses, Permits, and Fees category. Business Licenses and Franchise Fees are also somewhat higher than budgeted, 5 The Flood Reimbursement is the result of the August 1987 Flood. The amount reimbursed represents 75110 of allowable costs from the Federal government and 12-1/2°0' from the State. 6. To fund a portion of the loans made to residents for flood losses, the Village borrowed $175,000 from the First Chicago Bank of Mount Prospect. 7 The increase in expenditures in Public Representation is due to moving costs for the Village manager. 8. In the Village Manager's office legal expenditures are expected to be some $90,000 more than the amount budgeted. The increased costs are due to labor negotiations, the Citizens Utilities rate case, zoning matters, and a number of other special cases. a Schedule 3 Page 3 9 The costs associated with the Flood Loam Program are included in the Finance budget . The increase of $395,365 is made up of Flood Loans of $359,000 and payments of $21,B65 on the $175,000 bank loan, Additionally, $18,000 has been included as a transfer to the IMRF Fund to cover an expected deficiency. 10. The Street Division expenditures are expected to be $112,210 more than budgeted because of a variety of increases and decreases. Flood costs are expected to be $213,700 more than budgeted but building supplies, forestry expenses, salt, vehicle fuel and supplies, and refusal disposal costs are expected to be approximately $100,000 less than budgeted. 11. In the Engineering Division, street lighting costs are expected to be down $10,000, sidewalk costs down $15,000 and street improvement costs down $65,000. 12. Under Capital Improvements, an expected contribution of $52,000 from the General Fund to the Sewer Rehab Program was eliminated. 13. The overall totals for the General Fund show total estimated expenditures exceeding total estimated revenues by $97,340 instead of $220,020 as budgeted. The result is an improvement in the General Fund balance of t $122,£80 from what had been anticipated. General Fund Special Revenue Funds* Revenue Sharing Fund Motor Fuel Tax Fund Comm. Development Block Grant IL Municipal Retirement Fund Totals Enterprise Funds: Water & Sewer Fund Parking System Revenue Fund Totals Risk Management Fund: Capital Projects Funds: Capital Equip., Repair, Repl. Corp. Purposes Constr. 1973 Downtown Redevlpt. 19870 Downtown Redevlpt. 1985 Citizens Bonds Const. 1987A P W Facility Const. 19B7B SSA #5 Const. Lake Water SSA #6 Const. George/Albert Totals Debt Service Funds., General Obligation Bonds Special Service Area Bonds Totals Pension Funds: Police Pension Fund Firemen's Pension Fund Totals Totals - All Funds Less Interfund Transfers Totals - Village Funds Schedule 4 VILLAGE OF MOUNT PROSPECT Unobligated Fund BalG-,. ...,s April 30, 1988 Actual 87/88 87/88 Estimated Balance Estimated Estimated Balances 4/30/87 Revenues Expenditures 4/30/88 $ 1,947,861 $1395419925 $13,639,265 $ 1,850,521 599,629 216 599,845 $ 2t5189116 128 548 $ 296469664 WNW 940,000 317,275 _418,000 $ 1,6759275 $ 590059900 134,560 $ 591409460 1,082,850 3179275 417.900 $ 1,818,025 $ 69145tO55 117 5 $ 692629810 456,779 316 457,095 $ 1 , 378 1961 145,353 $ 19524,314 $ 912,533 $ 19360,600 $ 19264t500 $ 110089633 $ 19087t639 $ 19044t085 $ 5759755 $ 115559969 149985 11 ,190269175 356.1600W 632,929 $ 1 9331 9711 4419500 4419500 $ 467,010 2,418,700 2,1399150 746,560 192159500 355,500 192159500 355,500 599199590 39301 9635 2,617,955 750t219 191769300 193769400 5509119 $ 29319,853 $11,3669865 $ 7,860,615 $ 5,826,103 $ 7099257 $ 21773�095 $ 2 9 6179705 $ 8649647 1 6122 9 454, .000 367's,,0075, 356.1600W 632,929 $ 1 9331 9711 $ 3,14 917 0 $ 299749305 $ 194979576 $ $ 192159500 $ 192159500 $ 010 ,_ 357 9 500 111111011 9 357 9500 $ $ 2,573,000 $ 2, -79 9000 r $ $ 997589467 $389798,295 $3693929520 $129164,242 $<5'9"8"28 9 250> $<518289250> I I I I PO $ 9 2 •A 2�8 467 13-12701131045 6 4 2 71 1 I I , 12 4 1 6,4�? �2 4044441yyi= - TO: John Fulton Dixon, Village Manager FROM: David C. Jepson, Finance Director DATE: November 20, 1987 SUBJECT: 1987 Tax Levy Abatements When the 1987/88 budget was prepared, it was anticipated that the 1987 tax levy for debt service would be reduced because of available cash balances in the 1973 Corporate Purposes Bond and Interest Fund and the 1974 Corporate Purposes Bond and Interest Fund. Additionally, we had planned on abating a portion of the principal and interest on the 1987 general obligation bond issue for the Public Works Facility. These amounts were taken into consideration when the 1987 Tax Levy Ordinance was prepared. Since the 1987 Tax Levy Ordinance was prepared, we have issued refunding bonds which are backed by a tax levy for the 1985 Downtown Redevelopment Bonds, However, because it is our intention to pay the principal and interest on these bonds by funds other than a tax levy, we need to abate this levy. Additionally, a review of the financing plan for the Public Works Facility indicates that a greater portion of the interest income from the bond proceeds can be used to abate the tax levy than had been anticipated. Also included in the 1987 Tax Levy Ordinance was an increased operating levy for the Library and an amount for the Library's share of the 1974 Corporate Purposes Bonds . Because the referendum in November was defeated and an agreement has not been reached, it is necessary to abate the Library levy for these increased amounts. Two schedules which are attached summarize these changes. The first schedule compares the 1987 Tax Levy Ordinance as Adopted and as Revised to take into consideration the above abatements. The abatement for Village purposes has been increased from $446,771 to $806,595 and the Library abatement is $307,783. The revised tax_leviesand estimated tax rates are shown on the second schedule. The 1987 tax rat -e for Village Services is expected to be $.9975 per $100 EAV and a total Village rate including the Library's portion of G. 0. Bonds is estimated at $1.0403. The total tax rate is approximately 60 less than the increase anticipated in the 1987/88 budget. The revised rate for the Library is expected to be $.2731 per $100 EAVO In addition to the above abatements, Special Service Area No. 5 will be abatedby $53,437. This amount was anticipated in the 1987/88 budget. Abatement ordinances to enact the above changes will be prepared for the December 1, 1987 Board meeting. The ordinances must be adopted and filed with the County Clerk prior to December 31, 19870 DCJ/sm Enc I C► C) CD 0 co r - I 'S Lr\ Q CD CD co Ct\ CIN C7'� I cU > r-- C3 r°- CD t- C^J Ll1 co I Cf) 0 .. .. .. V. .. .. .. I ' r.4 ..1 4D r-- C`J +c- trn, e-• t.A w r N r'^, I > I cn � s-- CD CD I"•- W' C) N C~! 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NOVEMBER 19, 1987 SUBJECT: SOLID WASTE RECYCLING AND RESOURCE RECOVERY Area landfills are expected to reach capacity in several years. Governments concerned about this problem have been exploring recycling/ resource recovery strategies to reduce the waste stream and extend landfill life. A brochure published by Waste Management estimates that 50% of the average resident's garbage is recyclable. The most common recyclable materials are paper, glass and aluminum. Motor oil, plastics and plant material are less common but also recyclable. The Northwest Municipal Conference has set a goal of removing 10% of the garbage from the region's waste stream within the next three years. In compari- son, a successful recycling program in Glencoe has reduced the waste stream by 8%. The City of Chicago recycles approximately 2%-3% of its garbage. Camden County, New Jersey exceeded its goal of recycling 25% of its waste stream. That state recently passed a law mandating that all communities in the state meet the 25% standard. RECYCLING Many communities' recycling efforts are limited to newspaper and aluminum drives conducted by charitable organizations. Some communities like Palatine and Rolling Meadows have recycling centers for the collection of paper, glass and aluminum. Some private companies operate recycling centers where persons can receive cash for aluminum cans. Some area stores offer reverse coin machines for the recycling of aluminum cans,. The Village of Oak Lawn began a recycling project on September 17, 1987, which targeted 4,000 homes for weekly curbside pick-up of recyclable materials. 1200 households agreed to participate in the pilot program. Oak Lawn provided orange recycling buckets to each household at a cost of $4.00 per bucket'. Each bucket is imprinted with the Oak Lawn Village seal and the words, "We, Recycle-" The bucket is designed to be a visible symbol of the neighborhood recycling effort. The buckets remain the property of Oak Lawn and will be picked up if a resident no longer wishes to participate in the program. The Village of Oak Lawn also paid for one-half of the publicity cost associated with the pilot program. Waste Management, the Village's refuse contractor, paid the other half of the icity cos u pI al, recycling truck and manpower for the blt plus prov'd,ed, a spe,ci programa 'Waste Management receives all proceeds from the sale of the recyclable materials. Oak Lawn is pleased with the result of the pilot program and will expand the program to other areas of the Village in the near future. The only problem has been scavengers and children stealing the cans from the buckets and cashing them in at nearby recycling centers. In Barrington, Laidlaw Waste Systems has submitted a proposal to a sub -committee of the Village Board to collect recyclable materials and grass clippings weekly. Laidlaw would change from a semi-weekly trash pick-up to a weekly pick-up with the second pick-up devoted to recyclable materials only. Laidlaw would charge extra for the recycling service. If the proposal is approved, Laidlaw will purchase a truck to collect recyclable materials and a machine to compost grass clippings, leaves and other plant refuse. Barrington would reap the profits from the sale of the materials and fertilizer. .The Barrington Village Manager is unsure about the cost-effectiveness of recycling glass, aluminum and papers. He is more optimistic about the return on the conversion of plant matter into fertilizer, The Northwest Municipal Conference's recycling strategy will be developed by the Balefill Agency. The Agency will determine if it will assist municipalities in improving, continuing or starting recycling programs or to have the Agency assume responsibility for a regional recycling program with Agency -operated recycling centers and/or vehicles* One proposal includes giving tipping fee rebates to those communities that reduce their waste through recycling/ resource recovery. It is hoped that the rebates will be returned to the recycling program budget. RESOURCE RECOVERY The Village of Mount Prospect already has a resource recovery program in place through its leaf pick-up program. The leaves are transported to a farm in unincorporated Barrington where it is composted and used as natural fertilizer. Without the program, the material occupies landfill space and would cost the Village thousands of dollars in tipping fees. Branches that are cut as part of the Village's tree trimming program are chopped into decorative wood -chips that are used in Village landscaping. The Northwest Municipal Conference has tentatively planned to convert plant matter into natural fertilizer under their proposed program* RECOMMENDATION I recommend that the Village Board support the Northwest Municipal Conference's development of a regional recycling/ resource recovery strategy. The strategy is expected to be developed in the next year. The Balefill Agency may establish its own regional recycling program that the Village could participate in. Other proposals such as recycling centers and curbside pick-up may not be cost. effective at this time. The large size of the Village would require the establishment of several recycling centers in convenient locations. Manpower would be required to monitor and maintain the centers. A recycling center would also require a higher degree of citizen effort compared to curbside pick-up. Curbside pick-up of newspapers would be more convenient for the resident. The Village's refuse disposal contract with Brownin Fe r,r,,,*Is Industries does provide for an optional curbside newspaper pick-up at an additio,nal cost of $-40 per month, per residential unit. This price would be charged regardless of whether the household participated in the program or had newspapers to recycle. Although the Village would, receive the revenue from the newspapers, the current price of used newspapers, is between $25-$30 per ton. Several newspaper recycling companies have been actively soliciting support for municipal newspaper recycling programs in the Chicagoland area. The effect may be an increased supply and a drop in the price paid for recycled newspapers. By waiting for the Balefill Agency to develop its plan, the Village may take the opportunity in 1989 to negotiate for more favorable terms in the refuse disposal contract for the curbside pick-up of recyclable materials. ,ae C MJS/rcw