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HomeMy WebLinkAbout6. NEW BUSINESS 12/05/2006 Mount Prospect INTEROFFICE MEMORANDUM Village of Mount Prospect Mount Prospect, Illinois TO: FROM: MICHAEL E. JANONIS, VILLAGE MANAGER DIRECTOR OF FINANCE DATE: NOVEMBER 27, 2006 SUBJECT: 2006 PROPERTY TAX LEVY AND ABATEMENT ORDINANCES ]' PURPOSE: ' JI To obtain approval of the attached three ordinances related to the tax levies of the Village, the Mount R. -~pect Public Library, and the Village's special service area. BACKGROUND: Prior to December 26, 2006 the Village must have on file with the County Clerk its 2006 tax levy and abatement ordinances. The Village will receive proceeds from the 2006 tax levy in 2007. The Village Board first discussed the proposed 2006 tax levy at its October 24th Committee of the Whole meeting. Staff recommends a net Village tax levy of $13,506,574, an increase of 2.51 % over the prior year's levy. The Mount Prospect Library Board approved their tax levy request at its meeting on October 19, 2006. They are asking for a total levy, inclusive of a 2% provision for 1055 and cost, of $7,734,065. This represents an increase of 4.26% over the 2005 levy. DISCUSSION: The following table compares the proposed 2006 levy to the 2005 levy for the Village and Library. The amounts presented in the table are net of abatements and are inclusive of the 2% provision for 1055 and cost. 2005 Levy 2006 Levy $ Increase % Change VILLAGE General 7,291,530 7,491,516 199,986 2.74% Refuse 1,947,965 2,006,404 58,439 3.00% Debt Service 1 ,457,567 1,320,654 (136,913) (9.39%) Police Pension 1,284,363 1,359,949 75,586 5.89% Fire Pension 1,194,284 1,328,051 133,767 11.20% Total Village 13,175,709 13,506,574 330,865 2.51% LIBRARY Operations 5,809,344 6,132,588 323,244 5.56% Debt Service 1,608,821 1,601,477 (7,344 ) (0.46%) Total Library 7,418,165 7,734,065 315,900 4.26% TOTAL 20,593,874 21,240,639 646,765 3.14% A detailed spreadsheet of all proposed levies, including detailed levies and abatements for each outstanding bond issue, is also attached. 2006 Property Tax Levy November 27,2006 Page 2 The Village's 2005 equalized assessed valuation (EAV) was $1,594,975,722. Our 2006 EAV is estimated to decrease slightly (1.42%) from the prior year consistent with historical trends over the past 12 years. The Village's 2006 tax rate is expected to increase to $0.859 from the 2005 rate of $0.827. The Library's 2006 tax rate is estimated at $0.492, compared to the 2005 rate of $0.466. For illustration purposes only, a home with an EAV of $91 ,795 (a market value of approximately $350,000) in 2006 will pay taxes of $746 to the Village of Mount Prospect and $427 to the Library for the levy extended in 2006. This represents increases of $28 and $23, respectively, over the levy extended in 2005. Special Service Area No.5 was created in the mid-eighties to help fund the bringing of Lake Michigan water to the Village's water system. It is recommended the 2006 levy remain the same as the 2005 levy ($1,545,773). The resulting tax rate is estimated to be $0.119. The Village Board is being asked to consider three ordinances related to the 2006 tax levy. Two of the ordinances establish the initial levy of the Village (including the Library) and the Village's special service area. There is also one abatement ordinance that will reduce a portion of the debt service tax levies established by the various bond ordinances. The proposed ordinances reflect the numbers as presented in the proposed 2006 budget. RECOMMENDATION: It is recommended the Village Board approve the attached 2006 tax levy and abatement ordinances. P'/ <<-,7'-'~ " 'f/ ,/' >"7 ~/::4c;,.e4&/C:;:; , DAVID O. ERB DIRECTOR OF FINANCE Attachment DOE! 1:\Property Taxes\2006 Levy\Levy and Abatement Ordinance Cover Memo to Board - 2006.doc VILLAGE OF MOUNT PROSPECT AND THE MOUNT PROSPECT PUBLIC LIBRARY SUMMARY OF 2006 PROPERTY TAX LEVY 2% Net Provision Total 2006 2006 Loss and 2006 Lew Abatement Lew Costs Extension VILLAGE OF MOUNT PROSPECT General Corporate Fund 7,344,624 0 7,344,624 146,892 7,491,516 Refuse Fund 1,967,063 0 1,967,063 39,341 2,006,404 Police Pension Fund 1,333,283 0 1,333,283 26,666 1,359,949 Firefighters' Pension Fund 1,302,011 0 1,302,011 26,040 1,328,051 Debt Service Funds Series 1998A (Ord. 4917) 67,795 67,795 0 0 0 Series 1998 Taxable (Ord. 4977) 152,975 152,975 0 0 0 Series 1999 (Ord. 4999) 915,500 915,500 0 0 0 Series 2000 (Ord. 5114) 727,143 727,143 0 0 0 Series 2001 (Ord. 5212) 383,165 0 383,165 7,663 390,828 Series 2003 (Ord. 5301) 911,594 0 911,594 18,232 929,826 Total Village 15,105,153 1,863,413 13,241,740 264,834 13,506,574 MOUNT PROSPECT PUBLIC LIBRARY Library Operations 6,012,341 0 6,012,341 120,247 6,132,588 Library Debt Service 1,570,075 0 1,570,075 31 ,402 1,601,477 Total Library 7,582,416 0 7,582,416 151,649 7,734,065 TOTAL - VILLAGE OF MOUNT PROSPECT AND PUBLIC LIBRARY 22,687,569 1,863,413 20,824,156 416,483 21,240,639 SPECIAL SERVICE AREA NO.5 1,515,464 0 1,515,464 30,309 1,545,773 ORDINANCE NO. AN ORDINANCE AUTHORIZING THE LEVY AND COLLECTION OF TAXES FOR THE CORPORATE AND MUNICIPAL PURPOSES OF THE VILLAGE OF MOUNT PROSPECT FOR THE FISCAL YEAR BEGINNING JANUARY 1,2006 AND ENDING DECEMBER 31, 2006 PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES the day of , 2006 Published in pamphlet form by authority of the corporate authorities of the Village of Mount Prospect, Illinois the day of ,2006. 3 ORDINANCE NO. AN ORDINANCE AUTHORIZING THE LEVY AND COLLECTION OF TAXES FOR THE CORPORATE AND MUNICIPAL PURPOSES OF THE VILLAGE OF MOUNT PROSPECT FOR THE FISCAL YEAR BEGINNING JANUARY 1,2006 AND ENDING DECEMBER 31, 2006 NOW, THEREFORE, BE IT ORDAINED BY THE President and Board of Trustees of the Village of Mount Prospect, Cook County, Illinois, Acting in the Exercise of Their Home Rule Powers as follows: Section 1: That the sum of Twenty Million Eight Hundred Twenty-Four Thousand One Hundred and Fifty-Six ($20,824,156), the same being the total amount to be levied of budget appropriations heretofore made for the corporate and municipal purposes for the fiscal year beginning January 1, 2006 and ending December 31, 2006 as approved by the President and Board of Trustees of the Village of Mount Prospect, be and the same is hereby levied on all taxable property within the Village of Mount Prospect according to the valuation of said property as is, or shall be assessed or equalized by the State and County purposes for the current year 2006. Section 2: The budgetary appropriations having been made by the President and Board of Trustees of the Village of Mount Prospect were passed and approved by Ordinance No. 5528 at a meeting hereof regularly convened and held in said Village of Mount Prospect, Illinois, on the 20th day of December, 2005, and as amended by Ordinance No. 5553 passed and approved on the 22nd day of March, 2006, thereafter duly published according to law, the various objects and purposes for said budgetary appropriations are heretofore made and set forth under the column entitled "Amount Budgeted", and the specific amount herein levied for each object and purpose is set forth under the column entitled "Amount Levied", in Articles I through XI. VILLAGE OF MOUNT PROSPECT, ILLINOIS 2006 TAX LEVY Amount Amount Budgeted Levied ARTICLE I - GENERAL FUND 01 Public Representation 01 Mayor and Board of Trustees Personal Services 25,000 0 Employee Benefits 2,717 0 Other Employee Costs 3,000 0 Contractual Services 75,053 0 Utilities 500 0 Commodities & Supplies 5,000 0 Total Mayor and Board of Trustees 111,270 0 02 Advisory Boards and Commissions Personal Services 10,466 0 Employee Benefits 3,644 0 Contractual Services 2,300 0 Commodities & Supplies 600 0 Total Advisory Boards and Commissions 17,010 0 Total Public Representation 128,280 0 11 Village Administration 01 Village Manager's Office Personal Services 386,972 0 Employee Benefits 93,726 0 Other Employee Costs 11,550 0 Contractual Services 8,067 0 Utilities 5,285 0 Commodities & Supplies 3,650 0 Office Equipment 300 0 Total Village Manager's Office 509,550 0 02 Legal Services Contractual Services 630,750 0 Total Legal Services 630,750 0 03 Personnel Services Personal Services 162,786 0 Employee Benefits 54,142 0 Other Employee Costs 26,550 0 Contractual Services 41,860 0 Commodities & Supplies 1,635 0 Office Equipment 330 0 Total Personnel Services 287,303 0 2 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2006 TAX LEVY Amount Amount Budgeted Levied 04 Management Information Systems Personal Services 297,544 0 Employee Benefits 112,642 0 Other Employee Costs 6,000 0 Contractual Services 466,719 0 Utilities 4,340 0 Commodities & Supplies 4,000 0 Office Equipment 26,290 0 Other Equipment 1,600 0 Total Management Information Systems 919,135 0 05 Public Information Personal Services 51,237 0 Employee Benefits 21,115 0 Other Employee Costs 2,300 0 Contractual Services 66,000 0 Utilities 520 0 Commodities & Supplies 2,200 0 Total Public Information 143,372 0 Total Village Administration 2,490,110 0 12 Television Services Division 02 Cable TV Operations Personal Services 74,141 0 Employee Benefits 30,884 0 Other Employee Costs 2,650 0 Contractual Services 8,420 0 Utilities 1,600 0 Commodities & Supplies 5,050 0 Other Equipment 7,500 0 Total Cable TV Operations 130,245 0 04 Intergovernmental Programming Personal Services 28,343 0 Employee Benefits 10,249 0 Other Employee Costs 4,730 0 Commodities & Supplies 2,000 0 Other Equipment 3,000 0 Total Intergovernmental Programming 48,322 0 Total Television Services Division 178,567 0 3 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2006 TAX LEVY Amount Amount Budgeted Levied 14 Village Clerk's Office 02 Village Clerk's Office Personal Services 113,075 0 Employee Benefits 43,977 0 Other Employee Costs 2,625 0 Contractual Services 33,748 0 Utilities 1,650 0 Commodities & Supplies 5,113 0 Total Village Clerk's Office 200,188 0 17 Finance Department 01 Finance Administration Personal Services 140,664 0 Employee Benefits 41,632 0 Other Employee Costs 10,640 0 Contractual Services 83,301 0 Utilities 5,150 0 Commodities & Supplies 13,900 0 Office Equipment 6,000 0 Total Finance Administration 301,287 0 02 Accounting Personal Services 310,539 0 Employee Benefits 126,990 0 Contractual Services 5,100 0 Commodities 2,050 0 Total Accounting 444,679 0 05 Insurance Program Personal Services 52,860 0 Employee Benefits 17,980 0 Insurance 450,605 0 Total Insurance Program 521,445 0 06 Customer Services Personal Services 255,541 0 Employee Benefits 96,031 0 Contractual Services 49,375 0 Commodities & Supplies 8,290 0 Total Customer Services 409,237 0 4 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2006 TAX LEVY Amount Amount Budgeted Levied 07 Cash Management Personal Services 37,221 0 Employee Benefits 12,511 0 Total Cash Management 49,732 0 Total Finance Department 1,726,380 0 21 Community Development Department 01 Community Development Administration Personal Services 169,303 0 Employee Benefits 64,093 0 Other Employee Costs 3,699 0 Utilities 2,962 0 Commodities & Supplies 572 0 Total Community Development Administration 240,629 0 02 Planning & Zoning Personal Services 162,545 0 Employee Benefits 61,796 0 Other Employee Costs 6,147 0 Contractual Services 29,427 0 Utilities 2,546 0 Commodities & Supplies 3,119 0 Total Planning & Zoning 265,580 0 03 Economic Development Personal Services 52,426 0 Employee Benefits 14,823 0 Other Employee Costs 2,287 0 Contractual Services 39,000 0 Total Economic Development 108,536 0 05 Building Inspections Personal Services 496,361 0 Employee Benefits 208,052 0 Other Employee Costs 12,294 0 Contractual Services 78,829 0 Utilities 8,091 0 Commodities & Supplies 8,864 0 Total Building Inspections 812,491 0 5 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2006 TAX LEVY Amount Amount Budgeted Levied 06 Housing Inspections Personal Services 297,376 0 Employee Benefits 120,229 0 Other Employee Costs 4,900 0 Contractual Services 47,771 0 Utilities 3,058 0 Commodities & Supplies 3,846 0 Computer Equipment 13,000 0 Total Housing Inspections 490,180 0 07 Health Inspections Personal Services 77,634 0 Employee Benefits 28,674 0 Other Employee Costs 1,236 0 Contractual Services 16,557 0 Utilities 1,898 0 Commodities & Supplies 2,319 0 Total Health Inspections 128,318 0 Total Community Development Dept. 2,045,734 0 31 Human Services Department 01 Human Services Administration Personal Services 107,366 0 Employee Benefits 39,470 0 Other Employee Costs 1,600 0 Contractual Services 12,201 0 Utilities 8,000 0 Commodities & Supplies 4,140 0 Office Equipment 3,500 0 Total Human Services Administration 176,277 0 02 Social Services Personal Services 250,650 0 Employee Benefits 89,227 0 Other Employee Costs 1,950 0 Commodities & Supplies 1,000 0 Total Social Services 342,827 0 03 Nursing/Health Services Personal Services 95,955 0 Employee Benefits 34,801 0 Other Employee Costs 350 0 Contractual Services 29,400 0 Commodities & Supplies 31,475 0 6 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2006 TAX LEVY Amount Amount Budgeted Levied Total Nursing/Health Services 191,981 0 04 Senior Center Leisure Programs Personal Services 24,215 0 Employee Benefits 8,107 0 Contractual Services 12,000 0 Commodities & Supplies 600 0 Total Senior Programs 44,922 0 Total Human Services Department 756,007 0 41 Police Department 01 Police Administration Personal Services 900,377 0 Employee Benefits 451,990 0 Other Employee Costs 119,000 0 Contractual Services 73,500 0 Utilities 49,200 0 Commodities & Supplies 16,873 0 Office Equipment 1,400 0 Total Police Administration 1,612,340 0 02 Patrol and Traffic Enforcement Personal Services 6,386,105 3,877,868 Employee Benefits 1,175,582 0 Contractual Services 550,142 0 Commodities & Supplies 71,300 0 Office Equipment 11,200 0 Other Equipment 21,000 0 Total Patrol and Traffic Enforcement 8,215,329 3,877,868 03 Crime Prevention & Public Services Personal Services 269,112 0 Employee Benefits 58,184 0 Other Employee Costs 4,000 0 Contractual Services 2,400 0 Commodities & Supplies 9,050 0 Total Crime Prevention & Public Services 342,746 0 04 Investigative and Juvenile Program Personal Services 1,010,102 0 Employee Benefits 164,726 0 Contractual Services 24,400 0 Commodities & Supplies 4,450 0 Office Equipment 400 Other Equipment 600 7 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2006 TAX LEVY Total Investigative and Juvenile Program 8 Amount Budgeted 1,204,678 Amount Levied o VILLAGE OF MOUNT PROSPECT, ILLINOIS 2006 TAX LEVY Amount Amount Budgeted Levied 05 Crossing Guards Personal Services 27,153 0 Employee Benefits 2,077 0 Commodities & Supplies 150 0 Total Crossing Guards 29,380 0 06 Equipment Maintenance & Operations Contractual Services 776,703 0 Commodities & Supplies 13,600 0 Other Equipment 21,450 0 Total Equipment Maintenance & Operations 811,753 0 Total Police Department 12,216,226 3,877,868 42 Fire Department 01 Fire Administration Personal Services 561,473 0 Employee Benefits 280,295 0 Other Employee Costs 64,025 0 Contractual Services 18,900 0 Commodities & Supplies 8,925 0 Office Equipment 4,000 0 Other Equipment 6,680 0 Total Fire Administration 944,298 0 02 Fire Department Operations Personal Services 5,709,083 3,466,756 Employee Benefits 918,960 0 Other Employee Costs 63,950 0 Contractual Services 151,685 0 Commodities & Supplies 16,600 0 Building Improvements 4,000 0 Other Equipment 64,965 0 Total Fire Department Operations 6,929,243 3,466,756 03 Fire Training Academy Personal Services 9,000 0 Employee Benefits 131 0 Commodities & Supplies 4,500 0 Total Fire Training Academy 13,631 0 9 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2006 TAX LEVY Amount Amount Budgeted Levied 04 Fire Prevention Personal Services 383,921 0 Employee Benefits 139,065 0 Other Employee Costs 7,175 0 Contractual Services 1,850 0 Commodities & Supplies 13,750 0 Other Equipment 800 0 Total Fire Prevention 546,561 0 05 Fire Communications Contractual Services 15,500 0 Utilities 43,200 0 Commodities & Supplies 300 0 Other Equipment 5,500 0 Total Fire Communications 64,500 0 06 Equipment Maintenance Personal Services 127,182 0 Employee Benefits 46,378 0 Other Employee Costs 1,060 0 Contractual Services 260,784 0 Commodities & Supplies 69,729 0 Other Equipment 500 0 Total Equipment Maintenance 505,633 0 07 Emergency Preparedness Personal Services 20,000 0 Employee Benefits 3,420 0 Other Employee Costs 1,030 0 Contractual Services 5,300 0 Commodities & Supplies 5,965 0 Total Emergency Preparedness 35,715 0 08 Paid-On-Call Program Personal Services 22,960 0 Employee Benefits 2,058 0 Other Employee Costs 9,700 0 Other Equipment 1,030 0 Total Paid-On-CalI Program 35,748 0 Total Fire Department 9,075,329 3,466,756 10 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2006 TAX LEVY Amount Amount Budgeted Levied 50 Public Works - Administration 01 Public Works Administration Personal Services 237,193 0 Employee Benefits 135,476 0 Other Employee Costs 30,095 0 Contractual Services 821,835 0 Utilities 18,990 0 Commodities & Supplies 14,475 0 Office Equipment 1,090 0 Other Equipment 605 0 Total Public Works Administration 1,259,759 0 51 Public Works - Streets/Bldgs/Parking 01 Street Division Administration Personal Services I 15,290 0 Employee Benefits 31,570 0 Total Street Division Administration 146,860 0 02 Maintenance of Public Buildings Personal Services 372,377 0 Employee Benefits 125,408 0 Contractual Services 270,320 0 Utilities . 129,100 0 Commodities & Supplies 82,010 0 Other Equipment 3,600 0 Total Maintenance of Public Buildings 982,815 0 04 Street Maintenance Personal Services 168,038 0 Employee Benefits 49,172 0 Contractual Services 41,058 0 Commodities & Supplies 24,338 0 Infrastructure 125,000 0 Total Street Maintenance 407,606 0 05 Snow Removal Personal Services 187,894 0 Employee Benefits 49,414 0 Contractual Services 56,400 0 Commodities & Supplies 9,785 0 Other Equipment 15,800 0 Total Snow Removal 319,293 0 11 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2006 TAX LEVY Amount Amount Budgeted Levied 07 Storm Sewer and Basin Maintenance Personal Services 119,176 0 Employee Benefits 41,364 0 Contractual Services 11,330 0 Commodities & Supplies 7,020 0 Total Storm Sewer and Basin Maintenance 178,890 0 08 Maintenance of State Highways Personal Services 22,861 0 Employee Benefits 7,617 0 Contractual Services 17,130 0 Commodities & Supplies 22,940 0 Total Maintenance of State Highways 70,548 0 09 Traffic Sign Maintenance Personal Services 75,319 0 Employee Benefits 24,622 0 Commodities & Supplies 19,975 0 Total Traffic Sign Maintenance 119,916 0 Total Public Works - Streets/BldgslParking 2,225,928 0 52 Public Works - Forestry/Grounds 01 Forestry Division Administration Personal Services 163,922 0 Employee Benefits 52,185 0 Total Forestry Division Administration 216,107 0 02 Maintenance of Grounds Personal Services 245,381 0 Employee Benefits 76,929 0 Contractual Services 159,450 0 Commodities & Supplies 8,380 0 Other Equipment 27,395 0 Total Maintenance of Grounds 517,535 0 03 Forestry Program Personal Services 263,910 0 Employee Benefits 91,483 0 Other Employee Costs 3,555 0 Contractual Services 459,800 0 Commodities & Supplies 11,905 0 Total Forestry Program 830,653 0 12 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2006 TAX LEVY Amount Amount Budgeted Levied 04 Public Grounds Beautification Personal Services 23,949 0 Employee Benefits 7,809 0 Contractual Services 14,055 0 Commodities & Supplies 50,185 0 Total Public Grounds Beautification 95,998 0 Total Public Works - Forestry/Grounds 1,660,293 0 52 Public Works - Engineering 01 Engineering Services Personal Services 532,527 0 Employee Benefits 163,036 0 Other Employee Costs 5,390 0 Contractual Services 57,969 0 Commodities & Supplies 6,985 0 Office Equipment 530 0 Other Equipment 1,590 0 Total Engineering Services 768,027 0 05 Traffic Control & Street Lighting Personal.Services 89,589 0 Employee Benefits 28,891 0 Contractual Services 4,360 0 Utilities 100,000 0 Commodities & Supplies 20,000 0 Total Traffic Signals & Street Lighting 242,840 0 Total Public Works - Engineering 1,010,867 0 61 Community Service Programs 01 Community Groups & Misc. Contractual Services 116,100 0 Other Expenditures 10,000 0 Total Community Groups & Misc. 126,100 0 03 4th of July & Civic Events, Etc. Personal Services 80,000 0 Employee Benefits 13,680 0 Contractual Services 29,110 0 Commodities & Supplies 13,895 0 Total 4th of July & Civic Events, Etc. 136,685 0 13 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2006 TAX LEVY 04 Holiday Decorations Personal Services Employee Benefits Contractual Services Commodities & Supplies Total Holiday Decorations 05 Blood Donor Program Personal Services Employee Benefits Commodities & Supplies Total Blood Donor Program Total Community Service Programs 82 Retiree Pensions 01 Miscellaneous Pensions Pension Benefits Total Miscellaneous Pensions Total Retiree Pensions TOTAL BUDGET FOR GENERAL FUND AMOUNT TO BE RAISED BY TAX LEVY ADD 2% FOR LOSS & COST OF COLLECTION TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR GENERAL FUND 14 Amount Amount Budgeted Levied 6,730 0 2,383 0 63,665 0 14,400 0 87,178 0 1,920 0 147 0 820 0 2,887 0 352,850 0 44,533 44,533 44,533 o o o 35,371,051 7,344,624 146,892 7,491,516 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2006 TAX LEVY ARTICLE II - REFUSE DISPOSAL FUND 56 Public Works - Refuse Disposal 01 Refuse Disposal Program Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Insurance Commodities & Supplies Total Refuse Disposal Program 2 Refuse Leaf Removal Program Personal Services Employee Benefits Commodities & Supplies Total Leaf Removal Program TOTAL REFUSE DISPOSAL FUND TOTAL BUDGET FOR REFUSE DISPOSAL FUND AMOUNT TO BE RAISED BY TAX LEVY ADD 2% FOR LOSS & COST OF COLLECTION TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR REFUSE DISPOSAL FUND ARTICLE III - SERIES 1998A DEBT SERVICE FUND, FLOOD CONTROL 81 Debt Service 04 G.O.Bonds - Flood Control Bond Principal Interest Expense Bank and Fiscal Fees Total G.O.Bonds - Flood Control Total Debt Service TOTAL SERIES 1998A DEBT SERVICE FUND TOTAL BUDGET FOR SERIES 1998A DEBT SERVICE FUND, FLOOD CONTROL AMOUNT TO BE RAISED BY TAX LEVY ADD 2% FOR LOSS & COST OF COLLECTION TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR SERIES 1998A DEBT SERVICE FUND, FLOOD CONTROL 15 Amount Budgeted Amount Levied 85,369 0 28,082 0 1,785 0 3,654,352 1,967,063 590 0 52,660 0 3,000 0 3,825,838 1,967,063 145,175 0 43,364 0 15,230 0 203,769 0 4,029,607 1,967,063 4,029,607 1,967,063 39,341 2,006,404 65,000 0 2,795 0 0 0 67,795 0 67,795 0 67,795 0 67,795 0 0 0 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2006 TAX LEVY ARTICLE IV - SERIES 1998C DEBT SERVICE FUND, DOWNTOWN REDEVELOPMENT 81 Debt Service 03 G,O.Bonds - Tax Increment Bond Principal Interest Expense Bank and Fiscal Fees Total G,O,Bonds - Tax Increment Total Debt Service TOTAL SERIES 1998C DEBT SERVICE FUND TOTAL BUDGET FOR SERIES 1998C DEBT SERVICE FUND AMOUNT TO BE RAISED BY TAX LEVY ADD 2% FOR LOSS & COST OF COLLECTION TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR SERIES 1998C DEBT SERVICE FUND, DOWNTOWN REDEVELOPMENT ARTICLE V - SERIES 1999 DEBT SERVICE FUND, DOWNTOWN REDEVELOPMENT 81 Debt Service 03 G.O.Bonds - Tax Increment Bond Principal Interest Expense Bank and Fiscal Fees Total G.O.Bonds - Tax Increment Total Debt Service TOTAL SERIES 1999 DEBT SERVICE FUND TOTAL BUDGET FOR SERIES 1999 DEBT SERVICE FUND AMOUNT TO BE RAISED BY TAX LEVY ADD 2% FOR LOSS & COST OF COLLECTION TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR SERIES 1999 DEBT SERVICE FUND, DOWNTOWN REDEVELOPMENT 16 Amount Budgeted Amount Levied 145,000 0 7,975 0 600 0 153,575 0 153,575 0 153,575 0 153,575 0 0 0 770,000 0 145,500 0 600 0 916,100 0 916,100 0 916,100 0 916,100 0 0 0 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2006 TAX LEVY ARTICLE VI - SERIES 2000 DEBT SERVICE FUND, FLOOD CONTROL 81 Debt Service 04 G.O.Bonds - Flood Control Bond Principal Interest Expense Bank and Fiscal Fees Total G.O.Bonds - Flood Control Total Debt Service TOTAL SERIES 2000 DEBT SERVICE FUND TOTAL BUDGET FOR SERIES 2000 DEBT SERVICE FUND, FLOOD CONTROL AMOUNT TO BE RAISED BY TAX LEVY ADD 2% FOR LOSS & COST OF COLLECTION TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR SERIES 2000 DEBT SERVICE FUND, FLOOD CONTROL ARTICLE VII - SERIES 2001 DEBT SERVICE FUND, PUBLIC BUILDINGS 81 Debt Service 02 G.O.Bonds - Property Taxes Bond Principal Interest Expense Bank and Fiscal Fees Total G.O.Bonds - Property Taxes Total Debt Service TOTAL SERIES 2001 DEBT SERVICE FUND TOTAL BUDGET FOR SERIES 2001 DEBT SERVICE FUND, PUBLIC BUILDINGS AMOUNT TO BE RAISED BY TAX LEVY ADD 2% FOR LOSS & COST OF COLLECTION TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR SERIES 2001 DEBT SERVICE FUND, PUBLIC BUILDINGS 17 Amount Budgeted Amount Levied 645,000 0 82,143 0 600 0 727,743 0 727,743 0 727,743 0 727,743 0 0 0 200,000 200,000 183,165 183,165 600 0 383,765 383,165 383,765 383,165 383,765 383,165 383,765 383,165 7,663 390,828 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2006 TAX LEVY ARTICLE VIII - SERIES 2003 DEBT SERVICE FUND, PUBLIC BUILDINGS 81 Debt Service 02 G.O.Bonds - Property Taxes Bond Principal InterestExpense Bank and Fiscal Fees Total G.O.Bonds - Property Taxes Total Debt Service TOTAL SERIES 2001 DEBT SERVICE FUND TOTAL BUDGET FOR SERIES 2003 DEBT SERVICE FUND, PUBLIC BUILDINGS AMOUNT TO BE RAISED BY TAX LEVY ADD 2% FOR LOSS & COST OF COLLECTION TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR SERIES 2003 DEBT SERVICE FUND, PUBLIC BUILDINGS ARTICLE IX - POLICE PENSION FUND 82 Retiree Pensions 02 Police Pensions Pension Benefits Contractual Services Commodities and Supplies Total Police Pensions Total Retiree Pensions TOTAL POLICE PENSION FUND TOTAL BUDGET FOR POLICE PENSION FUND AMOUNT TO BE RAISED BY TAX LEVY ADD 2% FOR LOSS & COST OF COLLECTION TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR POLICE PENSION FUND 18 Amount Budgeted Amount Levied 480,000 480,000 415,994 431,594 600 0 896,594 911,594 896,594 911,594 896,594 911,594 896,594 911,594 18,232 929,826 2,460,583 1,333,283 4,300 0 250 0 2,465,133 1,333,283 2,465,133 1,333,283 2,465,133 1,333,283 2,465,133 1,333,283 26,666 1,359,949 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2006 TAX LEVY ARTICLE X - FIREFIGHTERS' PENSION FUND 82 Retiree Pensions 03 Firefighters' Pensions Pension Benefits Contractual Services Other Supplies Total Firefighters' Pensions Total Retiree Pensions TOTAL FIREFIGHTERS' PENSION FUND TOTAL BUDGET FOR FIREFIGHTERS' PENSION FUND AMOUNT TO BE RAISED BY TAX LEVY ADD 2% FOR LOSS & COST OF COLLECTION TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR FIREFIGHTERS' PENSION FUND ARTICLE XI - MOUNT PROSPECT LIBRARY FUND 95 Mount Prospect Library 02 Library Services Component Unit Expenditures Bond Principal Interest Expense Total Library Services TOTAL MOUNT PROSPECT LIBRARY FUND TOTAL BUDGET FOR MOUNT PROSPECT LIBRARY FUND AMOUNT TO BE RAISED BY TAX LEVY - Component Unit Expenditures AMOUNT TO BE RAISED BY TAX LEVY - Bond Principal and Interest ADD 2% FOR LOSS & COST OF COLLECTION TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR MOUNT PROSPECT LIBRARY FUND 19 Amount Budgeted Amount Levied 2,626,208 1,302,011 1,500 0 250 0 2,627,958 1,302,011 2,627,958 1,302,011 2,627,958 1,302,011 2,627,958 1,302,011 26,040 1,328,051 6,536,016 6,012,341 700,000 700,000 870,075 870,075 8,106,091 7,582,416 8,106,091 7,582,416 8,106,091 6,012,341 1,570,075 151,649 7,734,065 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2006 TAX LEVY SUMMARY Amount Total to be Raised Amount Tax Levy Amount by for Loss Incl. Loss Article Fund Budgeted Tax Levy and Cost and Cost I General $ 33,445,888 7,344,624 146,892 7,491,516 II Refuse Disposal 3,960,243 1,967,063 39,341 2,006,404 III Series 1998A Debt Service, Flood Ctrl. 67,795 o (a) 0 0 IV Series 1998C Debt Service, TIF 153,575 o (a) 0 0 V Series 1999 Debt Service, TIF 916,100 o (a) 0 0 VI Series 2000 Debt Service, Flood Ctrl. 727,743 o (a) 0 0 VII Series 2001 Debt Service, Public Bldgs 383,765 383,165 7,663 390,828 VIII Series 2003 Debt Service, Public BIdgs. 896,594 911,594 18,232 929,826 IX Police Pension Fund 2,465,133 1,333,283 26,666 1,359,949 X Firefighters' Pension Fund 2,627,958 1,302,011 26,040 1,328,051 Village Totals 45,644,794 13,241,740 264,834 13,506,574 XI Mount Prospect Library Library Services 6,536,016 6,012,341 120,247 6,132,588 Series 2002 Library Bonds Debt Service 1,570,075 1,570,075 31,402 1,601,477 Library Totals 8,106,091 7,582,416 151,649 7,734,065 Village and Library Totals 53,750,885 20,824,156 4 I 6,483 21,240,639 (a) Amount to be raised by tax levy has been reduced by planned abatements totaling $1,865,213. 19 Section 3: The sum of $408,275 is estimated to be received from personal property replacement tax revenue during the fiscal year commencing January 1, 2006 and ending December 31, 2006 and has been included herein as funds to be derived from sources other than property taxes for general obligation bonds and interest, pensions, library services and general corporate purposes. Section 4: That the County Clerk is directed to add 2% to the requested tax levy as a provision for loss and cost. Section 5: That the Village Clerk of the Village of Mount Prospect is hereby directed to certify a copy of this Ordinance and is hereby authorized and directed to file a copy of the same with the County Clerk of Cook County, Illinois, within the time specified by law. Section 6: That, if any part or parts of this Ordinance shall be held to be unconstitutional or otherwise invalid, such constitutionality or invalidity, shall not affect the validity of the remaining parts of this Ordinance. The President and Board of Trustees of the Village of Mount Prospect hereby declares that they would have passed the remaining parts of the Ordinance of they had known that such parts or parts thereof would be declared unconstitutional or otherwise invalid. Section 7: That this Ordinance shall be in full force and effect from and after its passage, approval, publication in pamphlet form and recording, as provided by law. AYES: NA YES: ABSENT: PASSED and APPROVED this _ day of December, 2006. Irvana K. Wilks Mayor ATTEST: M. Lisa Angell Village Clerk 20 ORDINANCE NO. AN ORDINANCE AUTHORIZING THE LEVY AND COLLECTION OF T AXES FOR THE MUNICIPAL PURPOSES OF SPECIAL SERVICE AREA NUMBER FIVE OF THE VILLAGE OF MOUNT PROSPECT FOR THE FISCAL YEAR BEGINNING JANUARY 1,2006 AND ENDING DECEMBER 31,2006 PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES the _ day of , 2006 Published in pamphlet form by authority of the corporate authorities of the Village of Mount Prospect, Illinois the _ day of , 2006. cci6 ARTICLE 1 - SPECIAL SERVICE AREA NO.5 610 Lake Water Acquisition 6105512-540800 6105512-540815 SSA #5 JAWA Water SSA #5 JAWA Fixed Costs TOTAL APPROPRIATED FOR SPECIAL SERVICE AREA NO.5 LAKE WATER ACQUISITION AMOUNT TO BE RAISED BY TAX LEVY ADD 2% FOR LOSS AND COST OF COLLECTION TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR SPECIAL SERVICE AREA NO.5 SUMMARY Article Special Service Area NO.5 Amount Budqeted 2,884,700 Amount to be Levied 1,515,464 Amount Budgeted 1,869,700 1,015,000 2,884,700 Amount for Loss & Cost 30,309 Amount Levied 500,464 1,015,000 1,515,464 30,309 1,545,773 Total Tax Levv 1,545,773 ORDINANCE NO. AN ORDINANCE AUTHORIZING THE LEVY AND COLLECTION OF T AXES FOR THE MUNICIPAL PURPOSES OF SPECIAL SERVICE AREA NUMBER FIVE OF THE VILLAGE OF MOUNT PROSPECT FOR THE FISCAL YEAR BEGINNING JANUARY 1,2006 AND ENDING DECEMBER 31,2006 NOW THEREFORE, BE IT ORDAINED BY THE President and Board of Trustees of the Village of Mount Prospect, Cook County, Illinois, Acting in the Exercise of Their Horne Rule Powers: Section 1: That the sum of One Million Five Hundred Fifteen Thousand Four Hundred Sixty- Four Dollars ($1,515,464), the same being the total amount to be levied of budget appropriations heretofore made for the municipal purposes for the fiscal year beginning January 1,2006, and ending December 31, 2006, as approved by the President and Board of Trustees of the Village of Mount Prospect, be and the same is hereby levied on all taxable property within the Special Service Area Number 5 of the Village of Mount Prospect according to the valuation of said property as is, or shall be, assessed or equalized by State and County purposes for the current year 2006. The budgetary appropriations having been made heretofore by the President and Board of Trustees ofthe Village of Mount Prospect were passed and approved by Ordinance No. 5528 at a meeting hereof regularly convened and held in said Village of Mount Prospect, Illinois on the 20th day of December, 2005, and as amended by Ordinance No. 5553 passed and approved on the 22nd day of March, 2006, and thereafter duly published according to law, the various objects and purposes for said budgetary appropriations were heretofore made are set forth under the column entitled "Amount Budgeted," and the specific amount herein levied for each object and purpose is set forth under the column entitled "Amount Levied" in Article 1. Section 2: That the County Clerk is directed to add 2% to the requested tax levy as a provision for loss and cost. Section 3: That the Village Clerk of the Village of Mount Prospect is hereby directed to certifY a copy of this Ordinance and is hereby authorized and directed to file a copy of the same with the County Clerk of Cook County, Illinois, within the time specified by law. Section 4: That, if any part of this Ordinance shall be held to be unconstitutional or otherwise invalid, such unconstitutionality or invalidity, shall not affect the validity of the remaining parts of this Ordinance. The President and Board of Trustees of the Village of Mount Prospect hereby declares that they would have passed the remaining parts of the Ordinance if they had known that such part or parts thereof would be declared unconstitutional or otherwise invalid. 1 Section 5: That this Ordinance shall be in full force and effect from and after its passage, approval, publication in pamphlet form and recording, as provided by law. AYES: NAYS: ABSENT: PASSED and APPROVED this day of ,2006 Irvana K. Wilks Mayor ATTEST: M. Lisa Angell Village Clerk 2 ORDINANCE NO. AN ORDINANCE TO ABATE A PART OF THE TAXES LEVIED FOR CORPORATE AND MUNICIPAL PURPOSES OF THE VILLAGE OF MOUNT PROSPECT, ILLINOIS FOR THE FISCAL YEAR BEGINNING JANUARY 1,2006 AND ENDING DECEMBER 31, 2006 PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES the _ day of ,2006 Published in pamphlet form by authority ofthe corporate authorities of the Village of Mount Prospect, Illinois, the _ day of , 2006. ORDINANCE NO. AN ORDINANCE TO ABATE A PART OF THE TAXES LEVIED FOR CORPORATE AND MUNICIPAL PURPOSES OF THE VILLAGE OF MOUNT PROSPECT, ILLINOIS FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2006 AND ENDING DECEMBER 31,2006 BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS, ACTING IN THE EXERCISE OF THEIR HOME RULE POWERS: Section One: The President and Board of Trustees of the Village of Mount Prospect find as follows: A. That pursuant to Village Ordinance No. 4917 adopted March 18, 1998 and authorizing issuance of general obligation bonds for financing flood control capital improvement projects within the Village there was levied for the year 2006 the sum of$67,795.00 for bond principal and interest payments. B. That pursuant to Village Ordinance No. 4977 adopted December 1, 1998 and authorizing issuance of general obligation bonds for financing land acquisition costs and other redevelopment costs within the Village's District No.1 Tax Increment Redevelopment Project Area there was levied for 2006 the sum of $152,975.00 for bond principal and interest payments. C. That pursuant to Village Ordinance No. 4999 adopted March 2,1999 and authorizing issuance of general obligation bonds for financing the acquisition ofland within the Village's District No. 1 Tax Increment Redevelopment Proj ect Area there was levied for the year 2006 the sum of$915,500.00 for bond principal and interest payments. D. That pursuant to Village Ordinance No. 5114 adopted June 6, 2000 and authorizing issuance of general obligation bonds for financing various flood control capital improvement projects there was levied for the year 2006 the sum of$727,143.00 for bond principal and interest payments. E. That as of December 1, 2006 there has been collected, deposited to and on hand in the Series 1998A General Obligation Bond and Interest Funds the sum of$67, 795.00 for application to bond principal and interest payments for the bonds issued pursuant to Village Ordinance No. 4917 adopted March 18, 1998. 1 F. That as of December 1, 2006 there is available in the Village's Downtown Redevelopment Fund the amount of$152,975.00 for application to bond principal and interest payments for the bonds issued pursuant to Village Ordinance No. 4977 adopted December 1, 1998. G. That as of December 1, 2006 there is available in the Village's Downtown Redevelopment Fund the amount of$915,500.00 for application to bond principal and interest payments for the bonds issued pursuant to Village Ordinance No. 4999 adopted March 2, 1999. H. That as of December 1,2006 there is available in the Village's Series 2000 General Obligation Bond and Interest Fund the sum of$727,143.00 for application to bond principal and interest payments for the bonds issued pursuant to Village Ordinance No. 5114 adopted June 6, 2000. Section Two: It is hereby declared and determined by the President and Board of Trustees of the Village of Mount Prospect that the amount of $67,795.00 levied for G.O. Bond and Interest payments for the purpose of financing flood control capital improvement projects within the Village pursuant to Ordinance No. 4917 be and the same is hereby abated in the amountof$67,795.00 being the entire amount levied for such bond and interest payment purposes for the fiscal year commencing January 1,2006 and ending December 31,2006. Section Three: It is hereby declared by the President and Board of Trustees of the Village of Mount Prospect that the amount of $152,975.00 levied for G. O. Bond and Interest payments for the purpose of funding property acquisition and other redevelopment costs within the Village's District No.1 Tax Increment Redevelopment Project Area pursuant to Ordinance No. 4977 be and the same is hereby abated in the amount of $152,975.00 being the entire amount levied for such bond and interest payment purposes for the fiscal year commencing January 1, 2006 and ending December 31, 2006. Section Four: It is hereby declared by the President and Board of Trustees of the Village of Mount Prospect that the amount of $915,500.00 levied for G. O. Bond and Interest payments for the purpose of funding property acquisition within the Village's District No.1 Tax Increment Redevelopment Project Area pursuant to Ordinance No. 4999 be and the same is hereby abated in the amount of $915,500.00 being the entire amount levied for such bond and interest payment purposes for the fiscal year commencing January 1, 2006 and ending December 31, 2006. Section Five: It is hereby declared by the President and Board of Trustees of the Village of Mount Prospect that the amount of $ 727,143.00 levied for G. O. Bond and Interest payments for the purpose of funding various flood control capital improvement projects pursuant to Ordinance No. 5114 be and the same is hereby abated in the amount of$727,143.00 being the entire amount levied for such bond and interest payment purposes for the fiscal year commencing January 1, 2006 and ending December 31, 2006. 2 Section Six: Village Ordinance Nos. 4917, 4977, 4999, and 5114 are and each is hereby amended with respect to the tax abatements declared herein and set forth in Sections Two through Five ofthis Ordinance. Section Seven: The Village Clerk of the Village of Mount Prospect is hereby authorized and directed to file a certified copy of this Ordinance with the County Clerk of Cook County, Illinois within the time specified by law: Section Eight: This Ordinance shall be in full force and effect upon its passage, approval and publication in pamphlet form and filing as provided by law. AYES: NAYS: ABSENT: PASSED and APPROVED this _ day of ,2006. Irvana K. Wilks Mayor ATTEST: M. Lisa Angell Village Clerk 3 Mount Prospect INTEROFFICE MEMORANDUM Village of Mount Prospect Mount Prospect, Illinois TO: MICHAEL JANONIS, VILLAGE MANAGER FROM: DIRECTOR OF FINANCE DATE: NOVEMBER 27,2006 SUBJECT: PROPOSED 2007 BUDGET PURPOSE: To present for the Village Board's consideration an ordinance adopting the annual budget for fiscal year beginning January 1,2007 and ending December 31,2007. BACKGROUND: The Village Manager released his proposed budget on October 7, 2006. Over the past two months the Finance Commission met four times to review the document. The Village Board, meeting as a Committee of the Whole, reviewed the document on October 24th and November 14th. DISCUSSION: Attached hereto are changes to the proposed 2007 budget that resulted from the above-mentioned meetings held with the Village Board and Finance Commission. Changes to the 2007 Proposed Budget Total Village revenues did not change from the proposed budget amount. Total Village expenditures increased $31,186. Included with this memo is a spreadsheet detailing the changes from the proposed budget for total Village revenues and expenditures. General Fund: Total expenditures for 2007 for the General Fund are projected at $35,371,051. This is an increase of $53,686 from the original proposed budget. Additional part-time staffing in the Fire Department for a Disaster Management Coordinator accounted for $23,420 of the increase. The Community Development Department budget was increased $6,700 for computer equipment needed to outfit two inspectors with ruggedized laptops for working in the field and for equipping the customer service counter with a cash drawer and receipt printer. The balance of the increase is related to adjustments to holiday, specialty and other payroll related expenses for Police and Fire. The increase to these accounts was as a result of an oversight in the original calculations that was discovered upon final review. A surplus of $414,932 is projected for 2007. Utilization of the surplus funds will be discussed later in the budget year and will be based on results of operations at that time. Community Development Block Grant Fund: Total expenditures for 2007 for the Community Development Block Grant Fund are projected at $527,309. This is a decrease of $22,500 from the original proposed budget. This is due to the deletion of a $25,000 expense for corridor improvements that was picked up elsewhere in the CDBG budget. Adjustments to three other community program budget items totaling $2,500 accounted for the balance of change from the original proposed budget. 2007 Proposed Budget November 27, 2006 Page 2 Library Fund: At the time the proposed budget was prepared and distributed, the Mount Prospect Public Library budget, included in the Village's budget as a component unit, was not yet available. The Library's budget for 2007 reflects revenues and expenditures of $8,572,028. Included in their budget is $1,570,075 for debt service on the Series 2002 Library bonds the Village issued on their behalf. Chanaes to 2007 Forecast Budaet Total Village revenues did not change from the forecast budget amount. Total Village expenditures increased $20,878. Changes impacting the 2007 budget related to personnel and capital spending also carried over into the 2008 forecast budget. Summary With the aforementioned changes, the proposed 2007 Budget for the Village totals $76,572,098. This represents a 2.9% decrease from the current 2006 budget. Projected revenues for the Village in 2007 are $78,329,695. This is a decrease of 0.1 %. A public hearing on the proposed budget has been scheduled for December 19th. Notice of the public hearing will be published in the Daily Herald on December 7,2006. The proposed ordinance attached would officially adopt the budget for the Village of Mount Prospect. Once the ordinance is passed, the Finance Department will revise the budget document to incorporate the approved changes. We expect to have the approved budget document produced no later than January 19th. RECOMMENDATION: It is recommended the Village Board pass the accompanying draft ordinance adopting the 2007 annual budget. . :~'J",A/, /..... /" ..<'_ .(/ae'A;.4.-"- ~ L~l_ DAVID O. ERB DIRECTOR OF FINANCE DOEI Attachment I :\Budget 2007\Ordinance Cover Memo - 2007 Budget.doc VILLAGE OF MOUNT PROSPECT 2007 PROPOSED BUDGET SUMMARY OF RECOMMENDED CHANGES - REVENUES Account Name 2007 Original Proposed Budget Account Number LIBRARY FUND Property Taxes Library Services IMRF & FICA Building Maintenance & Repair Insurance & Audit Bond & Interest Other Revenues library Fund - Total Revenues Page 1 Recommended Change 5,030,194 577,603 315,868 88,676 1,570,075 989,612 8,572,028 2007 Proposed Budget As Amended 5,030,194 577,603 315,868 88,676 1,570,075 989,612 8,572,028 VILLAGE OF MOUNT PROSPECT 2007 PROPOSED BUDGET SUMMARY OF RECOMMENDED CHANGES - EXPENDITURES 2007 2007 Original Proposed Proposed Recommended Budget Account Name Account Number Budget Change As Amended VILLAGE GENERAL FUND Community Development Building Inspections Office Equipment 0012105-570060 1,155 700 1,855 Housing Inspections Computer Equipment - New 0012106-650003 7,000 6,000 13,000 Police Patrol & Traffic Enforcement FICA Costs - Medicare 0014102-510100 77,313 6 77,319 Fire Administration FICA Costs - Social Security 0014201-510000 11,984 500 12,484 Operations Specialty Pay 0014202-500400 197,122 10,096 207,218 Holiday Pay 0014202-500500 239,063 12,964 252,027 Emergency Preparedness Part-Time Earnings 0014207-500100 0 20,000 20,000 FICA Costs - Social Security 0014207-510000 0 1,240 1,240 FICA Costs - Medicare 0014207-510100 0 290 290 IMRF Pension Expense 0014207-510200 0 1,890 1,890 Other General Fund Expenditures 34,783,728 0 34,783,728 Village General Fund - Total Expenditures 35,317,365 53,686 35,371,051 COMMUNITY DEVELOPMENT BLOACK GRANT FUND Community Programs CEDA Childcare 0702305-540240 5,500 (500) 5,000 Aspire 0702305-540242 2,000 1,000 3,000 Wings HV AC Replacement 0702305-540248 5,000 2,000 7,000 Accessibility & Neighborhood Improvements Corridor Improvements 0702306-620008 25,000 (25,000) 0 Other CDBG Fund Expenditures 512,309 0 512,309 CDBG Fund - Total Expenditures 549,809 (22,500) 527,309 Page 2 VILLAGE OF MOUNT PROSPECT 2007 PROPOSED BUDGET SUMMARY OF RECOMMENDED CHANGES - EXPENDITURES Account Name 2007 Original Proposed Budget Account Number LIBRARY FUND Salaries IMRF Pension Medical Insurance Postage/Printing Program Expenditures Outside Services Supplies Other Expenses Audit & Insurance Building Maintenance Building Utilities Equipment Maintenance Equipment Other Building Expenses Insurance Books & Print Items Non-Print Items Other Materials Building & Equipment Fund Interfund Transfer Gift Fund Bond & Interest Capital Projects Recommended Change 2007 Proposed Budget As Amended 9509502-900110 0 3,872,940 3,872,940 9509502-900120 0 589,155 589,155 9509502-900130 0 342,000 342,000 9509502-900140 0 54,350 54,350 9509502-900150 0 100,913 100,913 9509502-900155 0 66,778 66,778 9509502-900160 0 79,900 79,900 9509502-900170 0 91,606 91,606 9509502-900171 0 90,450 90,450 9509502-900200 0 53,845 53,845 9509502-900210 0 129,350 129,350 9509502-900220 0 61,077 61,077 9509502-900225 0 112,140 112,140 9509502-900226 0 44,700 44,700 9509502-900230 0 26,808 26,808 9509502-900300 0 384,000 384,000 9509502-900310 0 121,900 121,900 9509502-900311 0 104,041 104,041 9509502-900313 0 350,000 350,000 9509502-900320 0 125,000 125,000 9509502-900330 0 150,000 150,000 9509502-900700 0 1,571,075 1,571,075 9509502-900701 0 50,000 50,000 0 8,572,028 8,572,028 Library Fund - Total Expenditures Page 3 ORDINANCE NO. AN ORDINANCE ADOPTING AN ANNUAL BUDGET FOR THE VILLAGE OF MOUNT PROSPECT FOR THE FISCAL YEAR COMMENCING JANUARY 1,2007 AND ENDING DECEMBER 31, 2007 IN LIEU OF PASSAGE OF AN APPROPRIATION ORDINANCE PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES the _ day of ,2006 Published in pamphlet form by authority of the corporate authorities of the Village of Mount Prospect, Illinois the _ day of , 2006. E ORDINANCE NO. AN ORDINANCE ADOPTING AN ANNUAL BUDGET FOR THE VILLAGE OF MOUNT PROSPECT FOR THE FISCAL YEAR COMMENCING JANUARY 1,2007 AND ENDING DECEMBER 31, 2007 IN LIEU OF PASSAGE OF AN APPROPRIATION ORDINANCE WHEREAS, the President and Board of Trustees of the Village of Mount Prospect in accordance with State Statutes, have provided for the preparation and adoption of an Annual Budget in lieu of passage of an Appropriation Ordinance; and WHEREAS, the tentative Annual Budget for the Village of Mount Prospect for the fiscal year beginning January 1, 2007 and ending December 31, 2007, as prepared by the Budget Officer for the Village and submitted to the President and Board of Trustees, was placed on file in the Office of the Village Clerk on October 7, 2006 for public inspection, as provided by Statute; and WHEREAS, pursuant to notice duly published on December 7,2006, a public hearing was held by the President and Board of Trustees on said tentative annual budget on December 19,2006, as provided by Statute; and WHEREAS, following said public hearing, said tentative Annual Budget was reviewed by the President and Board of Trustees and a copy of said tentative Annual Budget is attached hereto and hereby made a part hereof. NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS ACTING IN THE EXERCISE OF THEIR HOME RULE POWERS: SECTION ONE: The Annual Budget for the Village of Mount Prospect for the fiscal year beginning January 1, 2007 and ending December 31, 2007, a copy of which is attached hereto and made a part hereof, is hereby approved and adopted as the Annual Budget for the Village of Mount Prospect for said fiscal year. SECTION TWO: Within thirty (30) days following the adoption of this Ordinance there shall be filed with the County Clerk of Cook County a copy thereof duly certified by the Village Clerk and Estimate of Revenues by source anticipated to be received by the Village in the fiscal year beginning January 1,2007 and ending December 31,2007, duly certified by the Chief Fiscal Officer. SECTION THREE: This Ordinance shall be in full force and effect from and after its passage, approval and publication in pamphlet form in the manner provided by law. AYES: NAYS: ABSENT: PASSED AND APPROVED this day of ,2006. Irvana K. Wilks Mayor ATTEST: M. Lisa Angell Village Clerk VILLAGE OF MOUNT PROSPECT 2007 BUDGET SUMMARY TOTAL VILLAGE BUDGET 2005 2006 2006 2007 2008 Actual Budget Estimate Budget Forecast REVENUES AND OTHER SOURCES Property Taxes 11,839,088 10,441,909 10,537,909 10,740,712 11,073,364 Other Taxes 14,621,028 14,566,963 15,073,743 15,384,659 15,327,371 Licenses, Permits & Fees 3,148,227 2,880,166 3,004,000 2,954,888 2,955,117 Intergovernmental Revenue 15,430,383 16,052,627 16,219,958 16,480,809 16,603,246 Charges for Service 16,597,244 20,422,428 20,225,666 21,409,733 22,468,957 Fines and Forfeits 610,451 547,200 510,000 553,000 552,100 Investment Income 7,216,999 4,211,275 5,085,400 5,501,950 5,591,300 Reimbursements 435,665 347,788 313,318 271,240 596,240 Other Revenue 4,673,038 4,762,088 4,912,894 4,972,704 5,320,194 Interfund Transfers 972,824 315,000 496,328 Other Financing Sources 2,198,954 3,860,000 60,000 60,000 60,000 Village Revenues and Other Sources 77,743,901 78,407,444 76,439,216 78,329,695 80,547,889 Mount Prospect Library Revenues 7,517,924 8,113,291 8,113,291 8,572,028 (a) Total Revenues and Other Sources 85,261,825 86,520,735 84,552,507 86,901,723 80,547,889 BUDGET EXPENDITURES Village Operating Budget 47,687,938 49,219,982 50,371,779 51,826,996 53,835,690 Village Capital Budget 4,666,948 13,044,229 7,374,859 7,366,920 9,616,110 Debt Service Budget 4,540,751 3,833,577 3,818,463 4,163,928 4,649,553 Pension Systems Budget 4,743,279 4,951,821 4,999,339 5,137,624 5,254,591 Internal Services Budget (b) 6,522,689 7,807,209 7,436,352 8,076,630 8,628,651 Total Village Expenditures 68,161,605 78,856,818 74,000,792 76,572,098 81,984,595 Mount Prospect Library Budget 7,167,072 8,113,291 8,113,291 8,572,028 (a) Total Expenditures (d) 75,328,677 86,970,109 82,114,083 85,144,126 81,984,595 CHANGES IN FUND BALANCES (d) Excess (Deficiency) of Revenues & Other Sources Over Expenditures 9,933,148 (449,374) 2,438,424 1,757,597 (1,436,706) Fund Balances Start of Budget Year 97,889,740 107,822,888 107,822,888 110,261,312 112,018,909 End of Budget Year 107,822,888 107,373,514 110,261,312 112,018,909 11 0,582,203 Less: Pension Fund Balances ( c ) (75,375,958) (77,484,557) (77,899,754) (81,025,453) (84,506,585) Available Fund Balances 32,446,930 29,888,957 32,361,558 30,993,456 26,075,618 (a) Not available as of December 19, 2006. (b) Internal Services Budget includes Vehic1e Maintenance Fund and Risk Management Fund. The Equipment Replacement Fund and Computer Replacement Fund are included in the Village Capital Budget. (c) Pension Fund Balances are reserved for pension benefits and not available for appropriation. (d) Does not include the results of operation of the Mount Prospect Library for 2008 Forecast. VILLAGE OF MOUNT PROSPECT 2007 BUDGET SUMMARY REVENUES AND OTHER SOURCES BY REVENUE TYPE 2005 2006 2006 2007 2008 Actual Budget Estimate Budget Forecast PROPERTY TAXES 11,839,088 10,441,909 10,537,909 10,740,712 11,073,364 OTHER TAXES Home Rule Sales Tax 3,770,535 3,914,197 3,944,750 4,080,000 4,201,000 Food & Beverage Tax 732,570 725,505 753,305 775,000 798,000 Special Service Area Taxes 1,562,343 1,524,100 1,564,100 1,534,100 1,534,100 Property Tax Increment 1,862,132 2,397,911 2,058,388 2,308,359 2,104,071 Real Estate Transfer Tax 1,515,403 1,075,000 1,398,000 1,331,000 1,331,000 Utility Taxes 4,770,080 4,468,900 4,818,000 4,818,000 4,818,000 Municipal Motor Fuel Tax 191,192 300,450 328,700 328,700 328,700 Other Taxes 216,773 160,900 208,500 209,500 212,500 14,621,028 14,566,963 15,073,743 15,384,659 15,327,371 LICENSES, PERMITS & FEES Vehicle Licenses 1,367,162 1,365,000 1,385,000 1,385,000 1,385,000 Other Licenses 348,847 348,000 345,500 341,500 341,500 Permit Fees 764,835 517,000 600,000 532,000 532,000 Franchise Fee 364,184 340,000 375,000 375,000 375,000 Other Fees 303,199 310,166 298,500 321,388 321,617 3,148,227 2,880,166 3,004,000 2,954,888 2,955,117 INTERGOVERNMENTAL REVENUE State Sales Tax 8,101,017 8,862,500 8,263,000 8,511,000 8,766,000 State Income Tax 4,198,734 4,000,665 4,392,500 4,524,000 4,660,000 State Motor Fuel Tax 1,667,551 1,625,115 1,603,500 1,587,500 1,587,500 Other State Taxes 952,732 950,875 1,025,720 1,071,500 1,121,000 Community Devl Block Grant 338,864 449,317 609,583 489,809 428,546 Other Grants 171,485 164,155 325,655 297,000 40,200 15,430,383 16,052,627 16,219,958 16,480,809 16,603,246 CHARGES FOR SERVICE Water & Sewer Charges 7,387,943 8,846,611 8,974,471 9,420,000 9,846,000 Parking Charges 197,775 202,000 198,000 198,000 198,000 Refuse Disposal Charges 1,025,803 1,058,330 1,040,350 1,192,450 1,252,450 Internal Service Fund Charges 7,300,453 7,778,405 7,779,234 8,028,251 8,575,348. Other Service Charges 685,270 2,537,082 2,233,611 2,571,032 2,597,159 16,597,244 20,422,428 20,225,666 21,409,733 22,468,957 FINES AND FORFEITS 610,451 547,200 510,000 553,000 552,100 INVESTMENT INCOME General Fund 211,172 204,700 395,800 397,000 397,000 Pension Funds 6,413,078 3,519,425 3,784,600 4,335,500 4,498,500 Other Funds 592,749 487,150 905,000 769,450 695,800 7,216,999 4,211,275 5,085,400 5,501,950 5,591,300 VILLAGE OF MOUNT PROSPECT 2007 BUDGET SUMMARY REVENUES AND OTHER SOURCES BY REVENUE TYPE 2005 2006 2006 2007 2008 Actual Budget Estimate Budget Forecast REIMBURSEMENTS 435,665 347,788 313,318 271,240 596,240 OTHER REVENUE Village Police & Fire Pension Contributions 2,289,574 2,448,272 2,471,875 2,677,040 2,940,463 Developer Donations 133,500 14,500 14,500 14,500 Employee & Retiree Contributions 1,853,573 2,036,391 2,166,719 2,050,064 2,148,631 Other Revenue 396,391 262,925 259,800 231,100 231,100 4,673,038 4,762,088 4,912,894 4,972,704 5,320,194 TOTAL VILLAGE REVENUES 74,572,123 74,232,444 75,882,888 78,269,695 80,487,889 INTERFUND TRANSFERS 972,824 315,000 496,328 OTHER FINANCING SOURCES Bond Proceeds 3,800,000 Sale of Property 2,198,954 60,000 60,000 60,000 60,000 2,198,954 3,860,000 60,000 60,000 60,000 MOUNT PROSPECT LIBRARY REVENUES 7,517,924 8,113,291 8,113,291 8,572,028 (a) CHANGES IN FUND BALANCES (b) Total Revenues & Other Sources 85,261,825 86,520,735 84,552,507 86,901 ,723 80,547,889 Total Expenditures 76,918,175 86,970,109 82,114,083 85,144,126 81,984,595 Additions to <Use of.> Fund Balances 8,343,650 (449,374) 2,438,424 1,757,597 (1,436,706) ANALYSIS OF CHANGES IN FUND BALANCES (b) Additions to Pension Fund Balances 5,089,746 2,164,208 2,523,796 3,125,699 3,481,132 Additions to Other Fund Balances <Use of.> Other Fund Balances 3,253,904 (2,613,582) (85,372) (1,368,102) (4,917,838) 8,343,650 (449,374) 2,438,424 1,757,597 (1,436,706) (a) Figures not available as of December 19,2006. (b) Does not include the Mount Prospect Library. VILLAGE OF MOUNT PROSPECT 2007 BUDGET SUMMARY BUDGET EXPENDITURES 2005 2006 2006 2007 2008 Actual Budget Estimate Budget Forecast VILLAGE OPERATING BUDGET PUBLIC REPRESENTATION 114,467 118,893 122,498 128,280 131,991 VILLAGE ADMINISTRATION Village Manager's Office 1,888,175 2,049,512 2,178,494 2,490,110 2,479,090 Television Services Division 206,928 169,351 172,995 178,567 189,014 Village Clerk's Office 169,128 203,826 197,988 200,188 210,680 Finance Department 1,553,971 1,636,761 1,680,603 1,726,380 1,792,259 Totals 3,818,202 4,059,450 4,230,080 4,595,245 4,671,043 COMMUNITY DEVELOPMENT Community Development 1,624,977 1,805,531 1,826,054 2,046,634 2,126,412 Community Deve10pmentlCDBG 505,949 691,200 659,683 527,309 458,546 Totals 2,130,926 2,496,731 2,485,737 2,573,943 2,584,958 HUMAN SERVICES DEPARTMENT 690,087 733,561 747,302 756,007 795,734 PUBLIC SAFETY AND PROTECTION Police Department 11,594,501 11,532,928 11,494,747 12,220,226 12,756,154 Fire Department 9,383,708 8,722,426 8,713,383 9,085,329 9,581,668 Totals 20,978,209 20,255,354 20,208,130 21,305,555 22,337,822 PUBLIC WORKS DEPARTMENT Administration 1,083,784 1,184,708 1,190,652 1,259,759 1,262,587 StreetsIBldgslParking 2,639,515 2,608,383 2,639,939 2,728,700 2,962,794 Forestry 1,413,905 1,553,262 1,563,573 1,671,212 1,772,631 Engineering 1,019,886 1,365,962 1,383,070 1,294,207 1,397,651 Water/Sewer 9,007,000 10,229,607 10,236,608 11,131,631 11,362,492 Refuse Disposal 3,534,906 3,960,243 4,011,835 4,029,607 4,195,608 Totals 18,698,996 20,902,165 21,025,677 22,115,116 22,953,763 COMMUNITY & CIVIC SERVICES 284,227 338,828 344,528 352,850 360,379 CONTINGENCIES & EQUITY TRANSFERS 972,824 315,000 1,207,827 VILLAGE OF MOUNT PROSPECT 2007 BUDGET SUMMARY BUDGET EXPENDITURES 2005 2006 2006 2007 2008 Actual Budget Estimate Budget Forecast VILLAGE CAPITAL BUDGET Village Improvements & Equip 290,159 1,548,955 1,463,497 653,000 1,202,700 Community Improvement Projects 67,963 113,401 83,401 10,000 488,000 Downtown Redevelopment Constr 378,448 6,045,926 1,240,199 1,880,300 1,491,450 Flood Control Projects 186,334 527,538 353,053 244,000 700,000 Street Improvement Projects 2,624,265 3,614,929 3,084,929 3,369,100 4,578,560 Motor Equipment Replacement 935,933 1,030,680 986,980 961,470 1,014,200 Computer Replacement 183,846 162,800 162,800 249,050 141,200 Totals 4,666,948 13,044,229 7,374,859 7,366,920 9,616,110 DEBT SERVICE BUDGET Debt Service - Property Tax 1,979,110 1,450,361 1,435,247 1,685,359 1,280,773 Debt Service - Tax Increment 1,096,145 996,675 996,675 1,069,675 1,754,900 Debt Service - Home Rule Sales Tax 1 1,427,696 1,386,541 I ,386,541 1,408,894 1,613,880 Debt Service - Special Service Area 37,800 Totals 4,540,751 3,833,577 3,818,463 4,163,928 4,649,553 PENSION SYSTEMS BUDGET Miscellaneous Pensions 50,463 55,609 43,609 44,533 45,460 Police Pensions 2,305,508 2,375,461 2,410,233 2,465,133 2,523,753 Fire Pensions 2,387,308 2,520,751 2,545,497 2,627,958 2,685,378 Totals 4,743,279 4,95 I ,821 4,999,339 5,137,624 5,254,591 VILLAGE INTERNAL SERVICES BUDGET Vehicle Maintenance Services 1,305,190 1,450,029 1,453,496 1,573,353 1,673,55 I Risk Management Casualty and Property Insurance 937,227 1,325,485 95 1,161 1,360,353 1,380,242 Medical Insurance 4,280,272 5,031,695 5,031,695 5,142,924 5,574,858 Totals 6,522,689 7,807,209 7,436,352 8,076,630 8,628,651 MOUNT PROSPECT LIBRARY BUDGET 7,167,072 8,113,291 8,113,291 8,572,028 (a) (a) Figures not available as of December 19, 2006. (b) Does not include the Mount Prospect Library for 2008 Forecast. VILLAGE OF MOUNT PROSPECT 2007 BUDGET SUMMARY REVENUES AND OTHER SOURCES BY FUND 2005 2006 2006 2007 2008 Actual Budget Estimate Budget Forecast GENERAL FUND 35,918,259 34,161,176 34,729,890 35,785,983 36,577,923 SPECIAL REVENUE FUNDS Refuse Disposal Fund 3,325,990 4,033,827 4,077,847 4,300,751 4,419,740 Motor Fuel Tax Fund 1,741,319 1,639,215 1,651,250 1,628,750 1,946,250 Law Enforcement Block Grant 769 1,000 1,030 1,000 1,000 Community Dev. Block Gmt 505,948 499,317 659,683 549,809 488,546 Asset Seizure Fund 10,125 1,100 10,750 2,600 1,700 DEA Shared Funds Fund 1,549 2,500 2,500 2,500 2,500 DUI Fine Fund 20,642 23,300 20,450 20,350 20,350 Foreign Fire Tax Board Fund 89,402 51,500 55,500 5,606,342 6,200,259 6,512,912 6,557,260 6,935,586 DEBT SERVICES FUNDS G.O. Bonds - Property Taxes 2,160,882 1,726,105 1,745,105 1,321,750 1,320,100 G.O. Bonds - Tax Increment 1,086,922 1,046,250 1,057,400 1,165,007 1,151,000 G.O. Bonds - Home Rule Sales Tax 1 1,267,436 1,311,897 1,327,750 1,367,550 1,401,300 G.O. Bonds - Home Rule Sales Tax 2 370,240 Special Service Area Bonds 29,141 15,350 - . 4,914,621/ 4,084,252 4,145,605 3,854,307 3,872,400 CAPITAL PROJECTS FUNDS Capital Improvement Fund 346,567 52,626 207,626 262,800 Downtown Redev1pmnt Canst 1,902,053 5,167,911 1,100,401 1,220,052 1,004,071 Street Improve Canst Fund 1,526,745 1,769,955 1,924,868 1,711,100 1,739,900 Flood Control Canst Fund 29,966 27,250 42,000 32,000 3,805,331 7,017,742 3,274,895 3,225,952 2,743,971 ENTERPRISE FUNDS Water And Sewer Fund Village Parking System Fund Parking System Revenue Fund 9,092,687 106,845 106,086 9,305,618 10,512,211 102,756 238,455 10,853,422 10,709,571 95,740 240,805 11,046,116 11,149,100 96,738 111,100 11,356,938 11,576,600 96,967 111,100 11,784,667 INTERNAL SERVICE FUNDS Vehicle Maintenance Fund 1,313,248 1,450,058 1,455,258 1,573,353 1,697,114 Vehicle Replacement Fund 1,039,279 1,083,413 1,189,383 1,093,626 1,093,626 Computer Replacement Fund 168,250 180,020 194,949 189,547 190,477 Risk Management Fund 5,887,051 6,316,682 6,410,682 6,473,939 6,961,862 8,407,828 9,030,173 9,250,272 9,330,465 9,943,079 VILLAGE OF MOUNT PROSPECT 2007 BUDGET SUMMARY REVENUES AND OTHER SOURCES BY FUND 2005 2006 2006 2007 2008 Actual Budget Estimate Budget Forecast FIDUCIARY FUNDS Police Pension Fund 4,968,994 3,654,043 3,976,051 4,125,500 4,361,824 Fire Pension Fund 4,813,568 3,406,377 3,503,475 4,093,290 4,328,439 Series 2002 Library Bond 3,340 9,785,902 7,060,420 7,479,526 8,218,790 8,690,263 MOUNT PROSPECT LIBRARY FUND 7,517,924 8,113,291 8,113,291 8,572,028 (a) (a) Figures not available as of December 19,2006. (b) Does not include the Mount Prospect Library. VILLAGE OF MOUNT PROSPECT 2007 BUDGET SUMMARY EXPENDITURES BY FUND 2005 2006 2006 2007 2008 Actual Budget Estimate Budget Forecast GENERAL FUND 33,650,878 33,445,888 34,550,926 35,371,051 36,951,284 SPECIAL REVENUE FUNDS Refuse Disposal Fund 3,534,906 3,960,243 4,011,835 4,029,607 4,195,608 Motor Fuel Tax Fund 1,920,890 2,538,717 2,138,717 1,729,610 2,179,086 Local Law Enforcement Block Grant 769 1,000 1,000 1,000 1,000 Community Development Block Grant 505,949 691,200 659,683 527,309 458,546 Asset Seizure Fund 1,100 1,000 1,000 1,000 DEA Shared Funds Fund 30,420 2,500 5,629 1,000 1,000 DUI Fine Fund 26,199 1,000 1,500 1,000 1,000 Foreign Fire Tax Board Fund 3,130 10,000 10,000 Totals 6,019,133 7,195,760 6,822,494 6,300,526 6,847,240 DEBT SERVICE FUNDS G.O. Bonds - Property Taxes 1,979,110 1,450,361 1,435,247 1,685,359 1,280,773 G.O. Bonds - Tax Increment 1,096,145 996,675 996,675 1,069,675 1,754,900 G.O. Bonds - Home Rule Sales Tax 1 1,427,696 1,386,541 1,386,541 1,408,894 1,613,880 Special Service Area Bonds 37,800 Totals 4,540,751 3,833,577 3,818,463 4,163,928 4,649,553 CAPITAL PROJECTS FUNDS Capital Improvement Fund 358,122 1,658,901 1,417,443 738,000 2,440,700 Downtown Redevelop Const Fund 380,048 6,046,726 1,241,049 1,881,200 1,492,400 Street Improvement Const Fund 1,301,756 1,597,657 1,593,657 2,071,000 2,187,560 Flood Control Const Fund 186,334 527,538 353,053 244,000 700,000 Totals 2,226,260 9,830,822 4,605,202 4,934,200 6,820,660 ENTERPRISE FUNDS Water and Sewer Fund Village Parking System Revenue Fund Parking System Revenue Fund Totals 9,007,000 210,324 159,502 9,376,826 10,229,607 152,798 260,865 10,643,270 10,236,608 153,313 261,324 10,651,245 11,131,631 123,154 156,448 11,411,233 11,362,492 203,332 145,610 11,711,434 INTERNAL SERVICE FUNDS Vehicle Maintenance Fund 1,305,190 1,450,029 1,453,496 1,573,353 1,673,551 Vehicle Replacement Fund 935,933 1,030,680 986,980 961,470 1,014,200 Computer Replacement 183,846 162,800 162,800 249,050 141,200 Risk Management Fund 5,229,972 6,367,780 5,993,456 6,514,196 6,966,342 Totals 7,654,941 9,011,289 8,596,732 9,298,069 9,795,293 VILLAGE OF MOUNT PROSPECT 2007 BUDGET SUMMARY EXPENDITURES BY FUND 2005 Actual 2006 Budget 2006 Estimate 2007 Budget 2008 Forecast FIDUCIARY FUNDS Police Pension Fund Fire Pension Fund Totals 2,305,508 2,387,308 4,692,816 2,375,461 2,520,75 I 4,896,212 2,410,233 2,545,497 4,955,730 2,465,133 2,627,958 5,093,091 2,523,753 2,685,378 5,209,131 MOUNT PROSPECT LIBRARY BUDGET 7,167,072 8,113,291 8,113,291 8,572,028 (a) (a) Figures not available as of December 19,2006. (b) Does not include the Mount Prospect Library for 2008 Forecast. VILLAGE OF MOUNT PROSPECT 2007 BUDGET SUMMARY AVAILABLE FUND BALANCES 12-31-2007 Estimated Balance 12-31-06 2007 Budget Revenues 2007 Budget Expenditures Estimated Balance 12-31-07 GENERAL FUND 10,695,341 35,785,983 35,371,051 11,110,273 SPECIAL REVENUE FUNDS Refuse Disposal Fund 1,752,796 4,300,751 4,029,607 2,023,940 Motor Fuel Tax Fund 377,528 1,628,750 1,729,610 276,668 Local Law Enf. Block Grant 193 1,000 1,000 193 Community Development Block Gmt 549,809 527,309 22,500 Asset Seizure Fund 69,481 2,600 1,000 71,081 DEA Shared Funds Fund 50,434 2,500 .1,000 51,934 DUI Fine Fund 36,158 20,350 1,000 55,508 Foreign Fire Tax Board Fund 86,272 51,500 10,000 127,772 TOTAL 2,372,862 6,557,260 6,300,526 2,629,596 DEBT SERVICES FUNDS G.O. Bonds - Property Taxes 502,682 1,321,750 1,685,359 139,073 G.O. Bonds - Tax Increment 580,956 1,165,007 1,069,675 676,288 G.O. Bonds - Home Rule Sales Tax 1 (473;142) 1,367,550 1,408,894 (514,486) Special Service Area Bonds 17,435 17,435 TOTAL 627,931 3,854,307 4,163,928 318,310 CAPITAL PROJECTS FUNDS Capital Improvement Fund 547,169 262,800 738,000 71,969 Downtown Redevelop Const Fund 869,591 1,220,052 1,881,200 208,443 Street Improvement Const Fund 1,218,916 1,711,100 2,071,000 859,016 Flood Control Canst Fund 578,409 32,000 244,000 366,409 TOTAL 3,214,085 3,225,952 4,934,200 1,505,837 ENTERPRISE FUNDS Water and Sewer Fund (a) 4,082,840 11,149,100 11,131,631 4,100,309 Village Parking System Fund (a) 162,013 96,738 123,154 135,597 Parking System Revenue Fund (a) 17,767 111,100 156,448 (27,581) TOTAL 4,262,620 11,356,938 11,411,233 4,208,325 (a) Estimated balances reflect cash and investment balance, not fund equity. VILLAGE OF MOUNT PROSPECT 2007 BUDGET SUMMARY AVAILABLE FUND BALANCES 12-31-2007 Estimated 2007 2007 Estimated Balance Budget Budget Balance 12-31-06 Revenues Expenditures 12-31-07 INTERNAL SERVICE FUNDS (b) Vehicle Maintenance Fund 526,187 1,573,353 1,573,353 526,187 Vehicle Replacement Fund 5,630,017 1,093,626 961,470 5,762,173 Computer Replacement Fund 688,088 189,547 249,050 628,585 Risk Management Fund 1,299,983 6,473,939 6,514,196 1,259,726 TOTAL 8,144,275 9,330,465 9,298,069 8,176,671 PENSION FUNDS (c) Police Pension Fund 38,850,354 4,125,500 2,465,133 40,510,721 Fire Pension Fund 39,049,400 4,093,290 2,627,958 40,514,732 TOTAL 77,899,754 8,218,790 5,093,091 81,025,453 Totals - Village Funds 107,216,868 78,329,695 76,572,098 108,974,465 Less; Pension Funds (c) (77,899,754) (8,218,790) (5,093,091) (81,025,453 ) MOUNT PROSPECT LIBRARY FUND 3,893,069 8,572,028 8,572,028 3,893,069 (b) Estimated balances for Internal Service Funds reflect unrestricted net assets only. (c) Pension Funds are restricted for future pension benefits and do not constitute "Available Fund Balances." Mount Prospect INTEROFFICE MEMORANDUM Village of Mount Prospect Mount Prospect, Illinois TO: MICHAEL E. JANONIS, VILLAGE MANAGER FROM: DIRECTOR OF FINANCE DATE: NOVEMBER 21, 2006 SUBJECT: GO BOND REFUNDING - LIBRARY SERIES 2002 PURPOSE: To present a recommendation that the Village Board authorize staff to proceed with the ad", nee refunding of the Library Series 2002 general obligation bonds. BACKGROUND: In April of 2002 the Village sold $20.5 million of General Obligation Library Bonds for the purpose of financing the renovation and expansion of the Mount Prospect Public Library. The bond proceeds were also to provide a small amount for relocation, circulation materials and furnishing costs. The bonds mature December 1, 2022. There is currently $19,010,000 outstanding. The bonds are callable anytime on or after December 1 , 2012. DISCUSSION: Attached is a letter from The Northern Trust Company (Attachment A) regarding potential savings from a partial advance refunding of the Series 2002 general obligation bonds. The amount of the partial refunding is $10 million. According to Mr. Ambrose, interest rates in the capital markets have dropped since the date of the original bond issue resulting in a potential savings of as much as $506,381 in debt service costs over the remaining life of the issue (approximately $31,650 per year). The present value savings are estimated at $371,390, which is 3.76% of the par value of the refunded bonds. The average interest coupon rate on the Series 2002 bonds is 4.68%. Mr. Ambrose estimates that a current refunding bond issue with the same maturity and debt service schedule will see average coupon rates closer to 4.08%. It is this difference in rates that generates the savings. The $506,381 potential savings are net of the costs of bond issuance, which are estimated at $151,443. Attachment B illustrates the existing and projected debt service schedules for the refunding. Based on plans regarding redevelopment for the downtown TIF in 2007 and the need to issue bonds for these costs, it is desirable to move on the advance refunding before the end of 2006. This, plus interest rate volatility in the capital market necessitate the Village to move quickly to complete the deal. If interest rates rise, and the expected savings do not materialize, the Village Board can decide if the sale should go through at that time. Another advantage of completing the issue in 2006 is the ability to issue the refunding bonds as a bank qualified issue. Special tax benefits are afforded financial institutions when purchasing bank Advance Bond Refunding November 21, 2006 Page 2 qualified bonds that work to lower the overall net interest cost of the issue. In order for any bond issue to be considered bank qualified, the issuer cannotissue more than $10 million in bonds in a given calendar year. Hence the reasoning for the partial advance refund. If in the future the interest rate environment is such that an advance refunding again makes sense, the remaining portion of the original issue can be refunded. An advance refunding in 2006 will allow bond issues in 2007 to be offered as bank qualified as well. The plan would be for the Village's bond counsel, Katten, Muchin Rosenman LLP, to prepare a parameters ordinance that will detail the terms for which the negotiated sale would move forward. Items such as maximum par value, maximum interest rate and minimum present value savings would be included in the ordinance. The parameters ordinance would be presented for approval at the Village Board meeting on December 5th. This will allow the bond underwriter, Northern Trust, to field offers and close the issue at a time when it is most advantageous for the Village to do so. Final results will be brought before the Village Board at the December 19th meeting. The Village did look into the potential advance refund of bonds issued in 2003 related to the construction of the Village Hall. Refundings are considered economically feasible when the present value savings are at least 2%. In the case of the Village Hall bond, the present value savings was just $70,000 or .875%. Marilyn Genther, Executive Director of the Mount Prospect Public Library was notified of the potential savings from the advance refunding of the Library bonds and was asked to share this information with the Library Board for questions and comments. Per Ms. Genther, the Library Board was receptive to the idea of the advance refunding and would work to assist the Village in whatever means to conclude the process. Attachment C is an outline of scheduled events required to meet the end of the year deadline. The typical timeline for an issue ofthis type is 30-45 days. Mr. Ambrose feels confident that the issue can be completed in a timely manner. RECOMMENDATION: It is recommended the Village Board authorize staff to proceed with the advance refunding of the Series 2002 Library General Obligation Bonds and authorize Northern Trust to move forward with the negotiated sale of bonds. .{fi~~~/c? - &L- DAVID O. ERB DIRECTOR OF FINANCE DOE Attachments I:\Debt Service\GO Bonds Refunding - Series 2002 Library\Memo 11-20-06.doc ATTACHMENT A ~ Northern Trust November 21,2006 Mr. David Erb Village of Mount Prospect 50 South Emerson Street Mount Prospect, Illinois 60056 RE: General Obligation Refunding Library Bonds Series 2006 Dear Mr. Erb: Pursuant to our recent discussions, we have conducted independent research on refunding a portion of the Village's General Obligation Library Bonds, Series 2002. Based on this analysis we believe today's low interest rates provide you with a significant opportunity. Today's interest rates can achieve savings in excess of $500,000 on a nominal basis and $370,000 on a net present value basis. The projected savings are net of all issuance and underwriting expenses. We have estimated issuance expenses to be $85,000, which will provide for payment of the bond insurance premium, bond counsel, rating fees, and printing of the official statements. The underwriter's discount of $65,000 provides for all transaction costs including marketing and distribution of the bonds, local travel, out-of-pocket and legal expenses. From our experience, we believe it will take thirty to forty-five days to bring the transaction to market. Therefore, if the savings numbers meet your approval, let me suggest that we proceed at the earliest possible date so as not to miss the opportunity that exists at this time. If you have any questions or comments regarding the foregoing or the attached, please contact me at (312) 557-0945. Sincerely, /, ) / /'f} 17 (. \j/--.k:J:::,_ K. /"j (~_e,---c. Allan R. Ambrose Senior Vice President & Managing Director Public Finance ATTACHMENTB $10,000,000 Village of Mount Prospect Cook County, Illinois Bank Qualified General Obligation Library Refunding Bonds, Series 2006 Debt Service COInparison Part 1 of2 Date Total P+.I Existine D/S Net New D/S Old NetDlS Suvilles Fiscal Total 12/15/2006 06/01/2007 184,444.44 199,537.50 383,981.94 435,037.50 51,055.56 12/01/2007 250,000.00 899,537.50 1,149,537.50 1,135,037.50 ( 14,500.00) 36,555.56 06101/2008 199,000.00 185,537.50 384,537.50 421,037.50 36,500.00 12/01/2008 239,000.00 915,537.50 1,154,537.50 1,151,037.50 (3,500.00) 33,000.00 06/01/2009 198,200.00 170,481.25 368,681.25 405,981.25 37,300.00 12/01/2009 238,200.00 1,020,481.25 1,258,681.25 1,255,981.25 (2,700.00) 34,600.00 06/01/20 I 0 197,400.00 152,418.75 349,818.75 387,918.75 38,100.00 12/01/2010 237,400.00 1,042,418.75 1,279,818.75 1,277,918.75 (1,900.00) 36,200.00 06/01/20 II 196,600.00 132,950.00 329,550.00 368,450.00 38,900.00 12/01/2011 241,600.00 1,052,950.00 1,294,550.00 1,288,450.00 (6,100.00) 32,800.00 06/01/2012 195,700.00 112,250.00 307,950.00 347,750.00 39,800.00 12/01/2012 240,700.00 1,077 ,250.00 1,317,950.00 1,312,750.00 (5,200.00) 34,600.00 06/01/2013 194,800.00 90,537.50 285,337.50 326,037.50 40,700.00 12/01/2013 244,800.00 1,090,537.50 1,335,337.50 1,326,037.50 (9,300.00) 31,400.00 06/01/2014 193,800.00 68,037.50 261,837.50 303,537.50 41,700.00 12/01/2014 243,800.00 1,118,037.50 1,361,837.50 1,353,537.50 (8,300.00) 33,400.00 06/01/2015 192,800.00 43,756.25 236,556.25 279,256.25 42,700.00 12/01/2015 242,800.00 1,138,756.25 1,381,556.25 1,374,256.25 (7,300.00) 35,400.00 06/01/2016 191,800.00 17,750.00 209,550.00 253,250.00 43,700.00 12/01/2016 786,800.00 727,750.00 1,514,550.00 1,503,250.00 (11,300.00) 32,400.00 06/0 1/20 17 179,900.00 179,900.00 222,000.00 42,100.00 12/01/2017 1,534,900.00 1,534,900.00 1,527,000.00 (7,900.00) 34,200.00 06/01/2018 152,800.00 152,800.00 189,375.00 36,575.00 12/01/2018 1,?62,800.oo 1,562,800.00 1,559,375.00 (3,425.00) 33,150.00 ---. 06/01/2019 124,600.00 124,600.00 155,125.00 30,525.00 12/01/2019 1,589,600.00 1,589,600.00 1,595,125.00 5,525.00 36,050.00 06/01/2020 95,300.00 95,300.00 119,125.00 23,825.00 12/01/2020 1,620,300.00 1,620,300.00 1,629,125.00 8,825.00 32,650.00 06/0112021 64,800.00 64,800.00 81,375.00 16,575.00 12/0112021 1,649,800.00 1,649,800.00 1,666,375.00 16,575.00 33,150.00 06/0112022 33,100.00 33,100.00 41,750.00 8,650.00 12/0 1/2022 1,688,100.00 1,688,100.00 1,711,750.00 23,650.00 32,300.00 Total 515,205,644.44 511,256,512.50 $26,462,156.94 $27,004,012.50 5541,855.56 . , , The Northern Trust Company Public Finance I'a~(' 1 $10,000,000 Village of Mount Prospect Cook County, Illinois Bank Qualified General Obligation Library Refunding Bonds, Series 2006 Debt Service COlnparison Part 2 of2 PV Amll"sis Summa.." (Nt't to Net) Gross PV Debt Servic~ Savin~ 401,092.22 Net PV Cashflow Savi!!g~28%(Alq 401,092.22 Contingency or Rounding Amount Net Present Value Benefit 2,654.41 $403,746.63 Net PV Benefit / $9,420,000 Refunded Principal Net PV Benefit / $10,000,000 Refunding Principal 4.286% 4.037% Refunding Bond Information Refunding Dated Date Refunding Delivery Date 12/15/2006 12/15/2006 The Northern Trust Company Public Finance Page:! $10,000,000 Village of Mount Prospect Cook County, Illinois Bank Qualified General Obligation Library Refunding Bonds, Series 2006 Sources & Uses Dated 12/15/2006 I Delivered 12/15/2006 Sources Of J:<'unds Par Amount of Bonds Reoffering Premium $10,000,000.00 53,217.15 Total Sources $10,053,217.15 Uses Of Funds Total Underwriter's Discount (0.650%) Costs of Issuance yross Bond Insuranc!" Premium ( 30.0 bp) Deposit to Net Cash Escrow Fund Rounding Amount 65,000.00 40,000.00 45,616.93 9,899,945.81 2,654.41 Total Uses $10,053,217.15 The Northern Trust COlllllan:\' Public Finance P.lg(' J $10,000,000 Village of Mount Prospect Cook County, Illinois Bank Qualified General Obligation Library Refunding Bonds, Series 2006 Debt Service Schedule Part 1 of2 Date Principal Coupon Interest TotalP+1 Fiscal Total 12/ 15/2006 06/01/2007 184,444.44 184,444.44 12/01/2007 50,000.00 4.000% 200,000.00 250,000.00 434,444.44 06/01/2008 199,000.00 199,000.00 12/01/2008 40,000.00 4.000% 199,000.00 239,000.00 438,000.00 06/01/2009 198,200.00 198,200.00 12/01/2009 40,000.00 4.000% 198,200.00 238,200.00 436,400.00 06/01/2010 197,400.00 197,400.00 12/01/2010 40,000.00 4.000% 197,400.00 237,400.00 434,800.00 06/01/2011 ..-------.------ 196,600:Q.~_______ 196,600.00 12/01/2011 45,000.00 4.000% 196,600.00 241,600.00 438,200.00 06/01/2012 195,700.00 195,700.00 12/01/2012 45,000.00 4.000% 195,700.00 240,700.00 436,400.00 06/01/2013 194,800.00 194,800.00 12/01/2013 50,000.00 4.000% 194,800.00 244,800.00 439,600.00 06/01/2014 193,800.00 193,800.00 12/01/2014 50,000.00 4.000% 193,800.00 243,800.00 437,600.00 06/01/2015 192,800.00 192,800.00 12/01/2015 50,000.00 4.000% 192,800.00 242,800.00 435,600.00 06/01/2016 ----.--.----.-- 191,800.00 191,800.00 12/01/2016 595,000.00 4.000% 191,800.00 786,800.00 978,600.00 06/01/2017 179,900.00 179,900.00 12/01/2017 1,355,000.00 4.000% 179,900.00 1,534,900.00 1,714,800.00 06/01/2018 152,800.00 152,800.00 12/01/2018 1,410,000.00 4.000% 152,800.00 1,562,800.00 1,715,600.00 06/01/2019 124,600.00 124,600.00 12/01/2019 1,465,000.00 4.000% 124,600.00 1,589,600.00 1,714,200.00 06/01/2020 95,300.00 95,300.00 12/0 1/2020 1,525,000.00 4.000% 95,300.00 1,620,300.00 1,715,600.00 06/01/2021 64,800.00 64,800.00 12/01/2021 1,585,000.00 4.000% 64,800.00 1,649,800.00 1,714,600.00 06/01/2022 33,100.00 33,100.00 12/01/2022 1,655,000.00 4.000% 33,100.00 1,688,100.00 1,721,200.00 Total $10,000,000.00 $5,205,644.44 $15,205,644.44 The Northern Trust Company Public Finance l'ag{..J $10,000,000 Village of Mount Prospect Cook County, Illinois Bank Qualified General Obligation Library Refunding Bonds, Series 2006 Debt Service Schedule Part 2 of 2 Yield Statistics Bond Year Dollars Average Life Average Coupon $ 130, 14J.J 1 13.014 Years 4.0000000% Net Interest Cost (NIC) True Interest Cost (TIC) Bond Yield for Arbitrage Purposes All Inclusive Cost (AIC) 4.0090539% 4.0119432% 3.9925359% 4.0982331% IRS Form 8038 Net Interest Cost Weighted Average Maturity 3.9419656% 13.002 Years The N ortbern Trust Compan~' Public Finance Pag(':; $19,010,000 Village of Mount Prospect Cook County, Illinois General Obligation Library Bonds, Series 2002 Total Refunded Debt Service Date 06/01/2007 12/01/2007 06/01/2008 12/01/2008 06/01/2009 12/01/2009 06/01/2010 12/01/2010 06/01/2011 12/01/2011 06/01/2012 12/01/2012 06/0 1/20 I 3 12/01/2013 06/01/2014 12/01/2014 06/01/2015 12/01/2015 06/01/2016 12/0112016 06/01/2017 12/01/2017 06/01/2018 12/01/2018 06/01/2019 12/01/2019 06/01/2020 12/01/2020 06101/2021 12/01/2021 06/01/2022 12/01/2022 Total Princinal Coupon .Interest Total .P+.1 Fiscal Total 235,500.00 235,500.00 4.000% 235,500.00 235,500.00 471,000.00 235,500.00 235,500.00 4.125% 235,500.00 235,500.00 471,000.00 235,500.00 235,500.00 4.250% 235,500.00 235,500.00 471,000.00 235,500.00 235,500.00 4.375% 235,500.00 235,500.00 471,000.00 235,500.00 235,500.00 4.500% 235,500.00 -"---'- 235,500.00 .---.-.-. 471,000.00 235,500.00 235,500.00 4.500% 235,500.00 235,500.00 47 I ,000.00 235,500.00 235,500.00 4.500% 235,500.00 235,500.00 47 I ,000.00 235,500.00 235,500.00 4.625% 235,500.00 235,500.00 471,000.00 235,500.00 235,500.00 4.750% 235,500.00 235,500.00 471,000.00 235,500.00 235,500.00 5.000o/~__. 235,500.00 775,500.00 1,011,000.00 222,000.00 222,000.00 5.000% 222,000.00 1,527,000.00 1,749,000.00 189,375.00 189,375.00 5.000% 189,375.00 1,559,375.00 1,748,750.00 155,125.00 155,125.00 5.000% 155,125.00 1,595,125.00 1,750,250.00 119,125.00 119,125.00 5.000% 119,125.00 1,629,125.00 1,748,250.00 81,375.00 81,375.00 5.000% 81,375.00 1,666,375.00 1,747,750.00 41,750.00 41,750.00 5.000% 41,750.00 1,711,750.00 1,753,500.00 $6,327,500.00 $15,747,500.00 540,000.00 1,305,000.00 1,370,000.00 1,440,000.00 1,510,000.00 ] ,585,000.00 1,670,000.00 $9,420,000.00 Yield Statistics Average Life .-W.Eghted Averag_e Maturi!yjf~r Basis) Average CouQon 13.395 Years 13.395 Years 5.0000000% Refundiul! Bond Information Refunding Dated Date Refunding Delivery Date 12/15/2006 12/15/2006 The Northern Trust COlllpan~' Public Finance P.l!!(' 6 ATTACHMENT C (IJ Northern Trust $10,000,000* Village of Mount Prospect Cook County, Illinois General Obligation Refunding Library Bonds, Series 2006 Participants: ISS U BC Issuer, Village of Mount Prospect Underwriter, The Northern Trust Company Bond Counsel, Katten Muchin Rosenman LLP November-06 S M T W TH F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 I December-06 I S M T W TH F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Schedule of Events Date Status Responsibility Done Financing Team Selected Organizational Meeting/Structure Determined ALL Done ISS 11/15/06 Distribute Schedule of Events and Requested Information U Draft of Official Statement Distributed 11/21/06 U 11/28/06 Comments Forwarded on Draft of Official Statement BC, ISS 11/29/06 Draft Bond Ordinance Distributed Application made to Rating Agency and Bond Insurers ALL 12/05/06 Bond Ordinance Adopted Rating Agency Conference Call ISS 12/04/06 ISS, U 12/06/06 Rating Received Finalize Preliminary Official Statement ISS, U 12/12/06 Bond Sale Bond Counsel provides closing materials ALL BC 12/21/06 Closing *Subject to change ALL Mount Prospect Village of Mount Prospect Mount Prospect, Illinois ~ INTEROFFICE MEMORANDUM DATE: NOVEMBER 29, 2006 SUBJECT: PROPOSED LIBRARY BOND REFUNDING TO: MICHAEL E. JANONIS, VILLAGE MANAGER FROM: DIRECTOR OF FINANCE PURPOSE: To present for the Village Board's consideration an ordinance authorizing the issuance of general obligation bonds not to exceed $10,000,000 and to execute an advance refunding of the Series 2002 Library General Obligation Bonds. BACKGROUND: In April of 2002 the Village sold $20.5 million of General Obligation Library Bonds for the purpose of financing the renovation and expansion of the Mount Prospect Public Library. The bond proceeds were also to provide a small amount for relocation, circulation materials and furnishing costs. The bonds mature December 1, 2022. There is currently $19,010,000 outstanding. The bonds are callable anytime on or after December 1, 2012. Based on the current interest rate environment in the capital market, there is a potential for savings by advance refunding a portion of the Series 2002 Library bonds. By limiting the advance refunding to $10,000,000 the bonds will be considered bank qualified. This will make the bonds more attractive in the market and return a more competitive interest rate. Estimated savings from the proposed refunding issue can be as much as $506,381 over the remaining life of the issue (approximately $31 ,650 per year). The present value savings, net of refinancing costs, are estimated at $371,390, which is 3.76% of the par value of the refunded bonds. DISCUSSION: The accompanying parameters bond ordinance is presented for the Board's consideration. The ordinance will permit the Village Manger and Finance Director to execute a bond order for the sale of the bonds. The sections of the ordinance dealing with interest rates, principal and interest repayment schedules and the final tax levy schedule have been left blank for now since the bond sale on the proposed refunding will not be completed until Tuesday, December 12, 2006. The final debt service ~ Proposed Library Bond Refunding November 29, 2006 Page 2 schedule that will be set upon issuance of the Bond Order will be structured to spread the savings evenly over the term of the new bonds. At the Board meeting on December 19 I will present a summary of the results of the bond sale and shall distribute a final approving legal opinion from bond counsel and completed escrow agreement. RECOMMENDATION: Due to the timeliness of the issue, it is recommended the Village Board waive the rules requiring two readings and adopt an ordinance authorizing the sale of $10,000,000 of general obligation refunding bonds. dcuJeJ'. VC- DAVID O. ERB DIRECTOR OF FINANCE DOE Attachment 1:\Debt Service\GO Bonds Refunding - Series 2002 Library\Ordinance Cover Memo - 11-29- 06.doc ORDINANCE NO. ORDINANCE AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $10,000,000 GENERAL OBLIGATION LIBRARY REFUNDING BONDS, SERIES 2006, OF THE VILLAGE OF MOUNT PROSPECT, ILLINOIS BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, ILLINOIS, ACTING IN THE EXERCISE OF THEIR HOME RULE POWERS, AS FOLLOWS: Section 1. Authority, Purpose and Findings. This ordinance is adopted pursuant to and under the authority of Section 6 of Article VII of the Illinois Constitution of 1970 for the purpose of refunding a portion of the outstanding principal amount of General Obligation Library Bonds, Series 2002, of the Village, maturing in the years 2012 to 2022, both inclusive (the "Callable Series 2002 Bonds"). The General Obligation Library Bonds, Series 2002, were issued to finance the renovation and expansion of the Mount Prospect Public Library. Section 2. Refunding Plan. The Village may determine to refund all or a portion of the Callable Series 2002 Bonds. The particular Callable Series 2002 Bonds to be refunded (the "Prior Bonds") and the particular Prior Bonds to be redeemed prior to maturity shall be specified in the Bond Order to be executed by the Village Manager or the Finance Director of the Village (each herein called the "Authorized Officer"). All of the Prior Bonds shall be redeemed on June 1, 2012. The Village President, Village Manager, Finance Director and the other officers and officials of the Village are authorized and directed to do, or cause to be done, all things necessary to accomplish the refunding and redemption of the Prior Bonds. Section 3. Authorization and Terms of Bonds. To meet part of the estimated costs of refunding the Prior Bonds, including the costs of issuance of the bonds herein authorized, there is hereby appropriated the sum of $10,000,000. Pursuant to the home rule powers of the Village to issue debt payable from ad valorem property tax receipts and for the purpose of financing said appropriation, general obligation bonds of the Village are authorized to be issued and sold in an aggregate principal amount of not to exceed $10,000,000, and shall be designated "General Obligation Library Refunding Bonds, Series 2006". Bonds shall be issuable in the denominations of $5,000 or any integral multiple thereof and may bear such identifying numbers or letters as shall be useful to facilitate the registration, transfer and exchange of bonds. Each bond delivered upon the original issuance of the bonds shall be dated as of the date specified in the Bond Order. Each bond thereafter issued upon any transfer, exchange or replacement of bonds shall be dated so that no gain or loss of interest shall result from such transfer, exchange or replacement. The bonds shall mature (or be subject to mandatory sinking fund redemption) on December 1 in such years and in such principal amounts as shall be specified in the Bond Order, provided that no bond shall mature later than December 1, 2022. Each bond shall bear interest from its date, computed on the basis of a 360 day year consisting of twelve 30 day months and payable in lawful money of the United -2- States of America on an initial interest payment date of June 1, 2007, and semiannually thereafter on each June 1 and December 1 at the rates per annum as shall be specified in the Bond Order, provided that no bond shall bear interest at a rate exceeding five percent (5%) per annum. No bonds shall be sold pursuant to this ordinance unless the sum of the taxes levied pursuant to Section 9 of this ordinance, and the moneys to be deposited into the 2006 Debt Service Fund (established by this ordinance) concurrently with the issuance of the bonds is sufficient to provide for the punctual payment of the principal of and interest on the bonds. The principal of the bonds shall be payable in lawful money of the United States of America upon presentation and surrender thereof at the corporate trust office of Wells Fargo Bank, N.A., in the City of Chicago, Illinois, which is hereby appointed as bond registrar and paying agent for the bonds. Interest on the bonds shall be payable on each interest payment date to the registered owners of record thereof appearing on the registration books maintained by the Village for such purpose at the corporate trust office of the bond registrar, as of the close of business on the 15th day of the calendar month next preceding the applicable interest payment date. Interest on the bonds shall be paid by check or draft mailed to such registered owners at their addresses appearing on the registration books or by wire transfer pursuant to an agreement by and between the Village and the registered owner. The bonds shall be subject to redemption prior to maturity as determined in the Bond Order, at the option of the Village and upon notice as herein provided, in such principal amounts and from such maturities as the Village shall determine and by lot within a single maturity, at such redemption prices as determined in the Bond Order and -3- not in excess of 102% of the principal amount to be redeemed, for such periods of redemption as determined in the Bond Order. Bonds of like maturity may be subject to mandatory redemption, by the application of sinking fund installments, all as determined in the Bond Order. All bonds subjectto mandatory sinking fund redemption shall be redeemed at a redemption price equal to the principal amount thereof to be redeemed. The bond registrar is hereby authorized and directed to mail notice of the mandatory sinking fund redemption of bonds in the manner provided in this section. Whenever bonds subject to mandatory sinking fund redemption are redeemed at the option of the Village, the principal amount thereof so redeemed shall be credited against the unsatisfied balance of future sinking fund installments or final maturity amount established with respect to the bonds, in such amounts and against such installments or final maturity amount as shall be determined by the Village in the proceedings authorizing such optional redemption or, in the absence of such determination, shall be credited against the unsatisfied balance of the applicable sinking fund installments next ensuing, and with respect to which notice of redemption has not yet been given. On or prior to the 60th day preceding any sinking fund installment date, the Village may purchase bonds subject to mandatory redemption on such sinking fund installment date, at such prices as the Village shall determine. Any bond so purchased shall be cancelled and the principal amount thereof so purchased shall be credited against the unsatisfied balance of the next ensuing sinking fund installment. In the event of the redemption of less than all the bonds of like maturity, the aggregate principal amount thereof to be redeemed shall be $5,000 or an integral -4- multiple thereof and the bond registrar shall assign to each bond of such maturity a distinctive number for each $5,000 principal amount of such bond and shall select by lot from the numbers so assigned as many numbers as, at $5,000 for each number, shall equal the principal amount of such bonds to be redeemed. The bonds to be redeemed shall be the bonds to which were assigned numbers so selected; provided that only so much of the principal amount of each bond shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. Notice of the redemption of bonds shall be mailed not less than 30 days nor more than 60 days prior to the date fixed for such redemption to the registered owners of bonds to be redeemed at their last addresses appearing on said registration books. The bonds or portions thereof specified in said notice shall become due and payable at the applicable redemption price on the redemption date therein designated, and if, on the redemption date, moneys for payment of the redemption price of all the bonds or portions thereof to be redeemed, together with interest to the redemption date, shall be available for such payment on said date, and if notice of redemption shall have been mailed as aforesaid (and notwithstanding any defect therein or the lack of actual receipt thereof by any registered owner) then from and after the redemption date interest on such bonds or portions thereof shall cease to accrue and become payable. If there shall be drawn for redemption less than all of a bond, the Village shall execute and the bond registrar shall authenticate and deliver, upon the surrender of such bond, without charge to the owner thereof, in exchange for the unredeemed balance of the bond so surrendered, bonds of like maturity and of the denomination of $5,000 or any integral multiple thereof. -5- The bond registrar shall not be required to transfer or exchange any bond after notice of the redemption of all or a portion thereof has been mailed. The bond registrar shall not be required to transfer or exchange any bond during a period of 15 days next preceding the mailing of a notice of redemption that could designate for redemption all or a portion of such bond. Section 4. Sale and Delivery. Subject to the limitations contained in this ordinance, authority is hereby delegated to the Authorized Officer to sell the bonds to The Northern Trust Company, as underwriter. No award shall be made unless (i) the purchase price bid is not less than 98% of the principal amount of bonds sold and (ii) the present value debt service savings resulting from the sale of the bonds and the refunding of the Prior Bonds is not less than 2.75% of the principal amount of the Prior Bonds. The sale and award of the bonds and the determination of the details of the bonds shall be evidenced by the Bond Order, which shall be signed by the Authorized Officer. An executed counterpart of the Bond Order shall be filed with the Village Clerk and entered in the records of the Village. The Authorized Officer is authorized to purchase a municipal bond insurance policy with respect to the bonds and to provide for the payment of the policy premium from the proceeds of sale of the bonds. The Official Statement prepared with respect to the bonds is approved and "deemed final" as of its date for purposes of Securities and Exchange Commission Rule 15(c)2-12 promulgated under the Securities Exchange Act of 1934. The Village President, Village Clerk and other officials of the Village are authorized and directed to do and perform, or cause to be done or performed for or on -6- behalf of the Village each and every thing necessary for the issuance of the bonds, including the proper execution and delivery of the bonds and the Official Statement. Section 5. Execution and Authentication. Each bond shall be executed in the name of the Village by the manual or authorized facsimile signature of its Village President and the corporate seal of the Village, or a facsimile thereof, shall be thereunto affixed or otherwise reproduced thereon and attested by the manual or authorized facsimile signature of its Village Clerk. In case any officer whose signature, or a facsimile of whose signature, shall appear on any bond shall cease to hold such office before the issuance of the bond, such bond shall nevertheless be valid and sufficient for all purposes, the same as if the person whose signature, or a facsimile thereof, appears on such bond had not ceased to hold such office. Any bond may be signed, sealed or attested on behalf of the Village by any person who, on the date of such act, shall hold the proper office, notwithstanding that at the date of such bond such person may not have held such office. No recourse shall be had for the payment of any bonds against any officer who executes the bonds. Each bond shall bear thereon a certificate of authentication executed manually by the bond registrar. No bond shall be entitled to any right or benefit under this ordinance or shall be valid or obligatory for any purpose until such certificate of authentication shall have been duly executed by the bond registrar. Section 6. Transfer, Exchange and Registry. The bonds shall be negotiable, subject to the provisions for registration of transfer contained herein. Each bond shall be transferable only upon the registration books maintained by the Village for that purpose at the corporate trust office of the bond registrar, by the registered owner thereof in person or by his attorney duly authorized in writing, upon surrender thereof -7- together with a written instrument of transfer satisfactory to the bond registrar and duly executed by the registered owner or his duly authorized attorney. Upon the surrender for transfer of any such bond, the Village shall execute and the bond registrar shall authenticate and deliver a new bond or bonds registered in the name of the transferee, of the same aggregate principal amount, maturity and interest rate as the surrendered bond. Bonds, upon surrender thereof at the corporate trust office of the bond registrar, with a written instrument satisfactory to the bond registrar, duly executed by the registered owner or his attorney duly authorized in writing, may be exchanged for an equal aggregate principal amount of bonds of the same maturity and interest rate and of the denominations of $5,000 or any integral multiple thereof. For every such exchange or registration of transfer of bonds, the Village or the bond registrar may make a charge sufficient for the reimbursement of any tax, fee or other governmental charge required to be paid with respect to such exchange or transfer, which sum or sums shall be paid by the person requesting such exchange or transfer as a condition precedent to the exercise of the privilege of making such exchange or transfer. No other charge shall be made for the privilege of making such transfer or exchange. The provisions of the Illinois Bond Replacement Act shall govern the replacement of lost, destroyed or defaced bonds. The Village and the bond registrar may deem and treat the person in whose name any bond shall be registered upon the registration books as the absolute owner of such bond, whether such bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of or interest thereon and for all other purposes whatsoever, and all such payments so made to any such registered owner or upon his order shall be valid and effectual to satisfy and discharge the liability upon -8- such bond to the extent of the sum or sums so paid, and neither the Village nor the bond registrar shall be affected by any notice to the contrary. Section 7. General Obligations. The full faith and credit of the Village are hereby irrevocably pledged to the punctual payment of the principal of and interest on the bonds. The bonds shall be direct and general obligations of the Village, and the Village shall be obligated to levy ad valorem taxes upon all the taxable property in the Village for the payment of the bonds and the interest thereon, without limitation as to rate or amount. Section 8. Form of Bonds. The bonds shall be issued as fully registered bonds and shall be in substantially the following form, the blanks to be appropriately completed when the bonds are printed: No. United States of America State of Illinois County of Cook VILLAGE OF MOUNT PROSPECT GENERAL OBLIGATION LIBRARY REFUNDING BOND, SERIES 2006 INTEREST RATE MATURITY DATE DATED DATE CUSIP .% December 1, 20 December _, 2006 REGISTERED OWNER: PRINCIPAL AMOUNT: The VILLAGE OF MOUNT PROSPECT, a municipal corporation and a home rule unit of the State of Illinois situate in the County of Cook, acknowledges itself indebted and for value received hereby promises to pay to the registered owner of this bond, or registered assigns, the principal amount specified above on the maturity date specified -9- above, and to pay interest on such principal amount from the date hereof at the interest rate per annum specified above, computed on the basis of a 360 day year consisting of twelve 30 day months and payable in lawful money of the United States of America on June 1, 2007 and semiannually thereafter on June 1 and December 1 in each year until the principal amount shall have been paid, to the registered owner of record hereof as of the 15th day of the calendar month next preceding such interest payment date, by wire transfer pursuant to an agreement by and between the Village and the registered owner, or otherwise by check or draft mailed to the registered owner at the address of such owner appearing on the registration books maintained by the Village for such purpose at the corporate trust office of Wells Fargo Bank, N.A., in the City of Chicago, Illinois, as bond registrar or its successor (the "Bond Registrar"). This bond, as to principal when due, will be payable in lawful money of the United States of America upon presentation and surrender of this bond at the corporate trust office of the Bond Registrar. The full faith and credit of the Village are irrevocably pledged for the punctual payment of the principal of and interest on this bond according to its terms. This bond is one of a series of bonds issued in the aggregate principal amount of $ ,000, which are authorized and issued under and pursuant to Section 6 of Article VII of the Illinois Constitution of 1970 and under and in accordance with an ordinance adopted by the President and Board of Trustees of the Village on December 5, 2006 and entitled: "Ordinance Authorizing the Issuance of Not to Exceed $10,000,000 General Obligation Library Refunding Bonds, Series 2006, of the Village of Mount Prospect, Illinois." The bonds of such series maturing on or after December 1, 20_ are subject to redemption prior to maturity at the option of the Village and upon notice as herein -10- provided, in such principal amounts and from such maturities as the Village shall determine and by lot within a single maturity, on 1, 20_ and on any date thereafter, at a redemption price equal to the principal amount thereof to be redeemed. The bonds of such series due December 1, 20_, are subject to mandatory sinking fund redemption to the extent required to satisfy annual sinking fund installments, in part by lot, at a redemption price equal to the principal amount thereof to be redeemed, on December 1, 20_, and on each December 1 thereafter, in the following amounts: Year Principal Amount Notice of the redemption of bonds will be mailed not less than 30 days nor more than 60 days prior to the date fixed for such redemption to the registered owners of bonds to be redeemed at their last addresses appearing on such registration books. The bonds or portions thereof specified in said notice shall become due and payable at the applicable redemption price on the redemption date therein designated, and if, on the redemption date, moneys for payment of the redemption price of all the bonds or portions thereof to be redeemed, together with interest to the redemption date, shall be available for such payment on said date, and if notice of redemption shall have been mailed as aforesaid (and notwithstanding any defect therein or the lack of actual receipt thereof by any registered owner) then from and after the redemption date interest on such bonds or portions thereof shall cease to accrue and become payable. -11- This bond is transferable only upon such registration books by the registered owner hereof in person, or by his attorney duly authorized in writing, upon surrender hereof at the corporate trust office of the Bond Registrar together with a written instrument of transfer satisfactory to the Bond Registrar duly executed by the registered owner or by his duly authorized attorney, and thereupon a new registered bond or bonds, in the authorized denominations of $5,000 or any integral multiple thereof and of the same aggregate principal amount, maturity and interest rate as this bond shall be issued to the transferee in exchange therefor. In like manner, this bond may be exchanged for an equal aggregate principal amount of bonds of the same maturity and interest rate and of any of such authorized denominations. The Village or the Bond Registrar may make a charge sufficient for the reimbursement of any tax, fee or other governmental charge required to be paid with respect to the transfer or exchange of this bond. No other charge shall be made for the privilege of making such transfer or exchange. The Village and the Bond Registrar may treat and consider the person in whose name this bond is registered as the absolute owner hereof for the purpose of receiving payment of, or on account of, the principal and interest due hereon and for all other purposes whatsoever. This bond shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been duly executed by the Bond Registrar. It is hereby certified, recited and declared that all acts, conditions and things required to be done, exist and be performed precedent to and in the issuance of this bond in order to make it a legal, valid and binding obligation of the Village have been done, exist and have been performed in regular and due time, form and manner as -12- required by law, and that the series of bonds of which this bond is one, together with all other indebtedness of the Village, is within every debt or other limit prescribed by law. IN WITNESS WHEREOF, the Village of Mount Prospect has caused this bond to be executed in its name and on its behalf by the manual or facsimile signature of its Village President, and its corporate seal, or a facsimile thereof, to be hereunto affixed or othelWise reproduced hereon and attested by the manual or facsimile signature of its Village Clerk. Dated: December _' 2006 VILLAGE OF MOUNT PROSPECT Irvana K. Wilks Mayor Attest: CERTIFICATE OF AUTHENTICATION This bond is one of the General Obligation Library Refunding Bonds, Series 2006, described in the within mentioned Ordinance. M. Lisa Angell Village Clerk WELLS FARGO BANK, N.A., as Bond Registrar By Authorized Signer -13- ASSIGNMENT For value received the undersigned sells, assigns and transfers unto the within bond and hereby irrevocably constitutes and appoints attorney to transfer the said bond on the books kept for registration thereof, with full power of substitution in the premises. Dated Signature Guarantee: -14- Section 9. Levy and Extension of Taxes. (A) For the purpose of providing the money required to pay the interest on the bonds when and as the same falls due and to pay and discharge the principal thereof (including mandatory sinking fund installments) as the same shall mature, there is hereby levied upon all the taxable property in the Village, in each year while any of the bonds shall be outstanding, a direct annual tax sufficient for that purpose in addition to all other taxes, as follows: Tax Levy Year A Tax Sufficient to Produce 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 $ 550,000 550,000 550,000 550,000 550,000 550,000 550,000 550,000 550,000 1,250,000 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 (B) Interest or principal coming due at any time when there shall be insufficient funds on hand to pay the same shall be paid promptly when due from current funds on hand in advance of the collection of the taxes herein levied; and when said taxes shall have been collected, reimbursement shall be made to the said funds in the amounts thus advanced. (C) After the sale of the bonds and the execution of the Bond Order, an executed copy of the Bond Order and a copy of this ordinance, certified by the Village Clerk, which certificate shall recite that this ordinance has been duly adopted, shall be -15- filed with the County Clerk of Cook County, Illinois, who is hereby directed to ascertain the rate per cent required to produce the aggregate tax hereinbefore provided to be levied in the years 2006 to 2021, inclusive, subject to adjustment as provided in paragraph (D) of this Section, and to extend the same for collection on the tax books in connection with other taxes levied in said years, in and by the Village for general corporate purposes of the Village, and in said years such annual tax shall be levied and collected in like manner as taxes for general corporate purposes for said years are levied and collected and, when collected, such taxes shall be used for the purpose of paying the principal of and interest on the bonds herein authorized as the same become due and payable. (D) In the event that bonds are to be issued in principal amounts and bearing interest such that for any tax levy year an amount less than that set forth in paragraph (A) of this Section is required to be produced to pay when due the principal of and interest on the bonds, then the Village Finance Director is authorized and directed to file with the aforesaid County Clerk, on or prior to the date of delivery of the bonds, a direction for abatement of taxes specifying the exact amount of taxes to be levied to produce the required amounts for each of the various tax levy years. Section 10. Taxes levied for Prior Bonds. After the issuance of the bonds authorized by this ordinance, the Village Finance Director shall file with the County Clerk of Cook County, a certificate listing the Prior Bonds and the taxes theretofore levied for the payment of the principal of and interest on the Prior Bonds payable after December 1, 2006, and said certificate shall direct the abatement of such taxes. Section 11. Escrow Deposit Agreement. The form of 2006 Escrow Deposit Agreement by and between the Village and Wells Fargo Bank, N.A., as Escrow Agent, -16- shall be valid and binding from the date of issuance of the bonds. All such tax receipts and the moneys held in the 2006 Debt Service Fund shall immediately be subject to the lien of such pledge without any physical delivery or further act and the lien of such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the Village irrespective of whether such parties have notice thereof. Section 14. Expense Fund. The "2006 Expense Fund," is hereby established as a special fund of the Village. Moneys in the 2006 Expense Fund shall be used for the payment of costs of issuance of the bonds, but may thereafter be reappropriated and used for other purposes if such reappropriation is permitted under Illinois law and will not adversely affect the exclusion from gross income for federal income tax purposes of interest on the bonds. Section 15. Investment Regulations. No investment shall be made of any moneys in the Escrow Fund, the 2006 Debt Service Fund or the 2006 Expense Fund except in accordance with the tax covenants set forth in Section 16 of this ordinance. All income derived from such investments in respect of moneys or securities in any Fund shall be credited in each case to the Fund in which such moneys or securities are held. Any moneys in any Fund that are subject to investment yield restrictions may be invested in United States Treasury Securities, State and Local Government Series, pursuant to the regulations of the United States Treasury Department, Bureau of Public Debt, or in any tax-exempt bond that is not an "investment property" within the meaning of Section 148(b)(2) of the Internal Revenue Code of 1986. The Village Finance Director and agents designated by him are hereby authorized to submit, on behalf of the -18- Village, subscriptions for such United States Treasury Securities and to request redemption of such United States Treasury Securities. Section 16. Tax Covenants. The Village shall not take, or omit to take, any action lawful and within its power to take, which action or omission would cause interest on any bond to become subject to federal income taxes in addition to federal income taxes to which interest on such bond is subject on the date of original issuance thereof. The Village shall not permit any of the proceeds of the bonds, or any facilities financed with such proceeds, to be used in any manner that would cause any bond to constitute a "private activity bond" within the meaning of Section 141 of the Internal Revenue Code of 1986. The Village shall not permit any of the proceeds of the bonds or other moneys to be invested in any manner that would cause any bond to constitute an "arbitrage bond" within the meaning of Section 148 of the Internal Revenue Code of 1986 or a "hedge bond" within the meaning of Section 149(g) of the Internal Revenue Code of 1986. The Village shall comply with the provisions of Section 148(f) of the Internal Revenue Code of 1986 relating to the rebate of certain investment earnings at periodic intervals to the United States of America. Section 17. Continuing Disclosure. For the benefit of the beneficial owners of the bonds, the Village covenants and agrees to provide an annual report containing certain financial information and operating data relating to the Village and to provide notices of the occurrence of certain enumerated events, if material. The annual report shall be filed with each Nationally Recognized Municipal Securities Information Repository and with the Illinois state information depository, if any, within 210 days after the close of the Village's fiscal year. The information to be -19- contained in the annual report shall consist of the annual audited financial statement of the Village and such additional information as noted in the Official Statement under the caption "Continuing Disclosure." Each annual audited financial statement will conform to generally accepted accounting principles applicable to governmental units and will be prepared in accordance with standards of the Governmental Accounting Standards Board. If the audited financial statement is not available, then an unaudited financial statement shall be included in the annual report and the audited financial statement shall be filed within 30 days after it becomes available. The Village also covenants and agrees, for the benefit of the beneficial owners of the bonds, to provide timely notice to each Nationally Recognized Municipal Securities Information Repository and to the Illinois state information depository, if any, of any failure of the Village to file any such annual report within the 210 day period and of the occurrence of any of the following events with respect to the bonds, if material: (1) principal and interest payment delinquencies; (2) non-payment related defaults; (3) unscheduled draws on debt service reserves reflecting financial difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax opinions or events affecting the tax-exempt status of the bonds; (7) modifications to rights of bondholders; (8) bond calls; (9) defeasances; (10) release, substitution or sale of property securing repayment of the bonds; and (11) rating changes. It is found and determined that the Village has agreed to the undertakings contained in this Section in order to assist participating underwriters of the bonds and brokers, dealers and municipal securities dealers in complying with Securities and Exchange Commission Rule 15c2-12(b)(5) promulgated under the Securities Exchange -20- Act of 1934. The chief financial officer of the Village is authorized and directed to do and perform, or cause to be done or performed, for or on behalf of the Village, each and every thing necessary to accomplish the undertakings of the Village contained in this Section for so long as Rule 15c2-12(b)(5) is applicable to the bonds and the Village remains an "obligated person" under the Rule with respect to the bonds. The undertakings contained in this Section may be amended by the Village upon a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature or status of the obligated person, or type of business conducted, provided that (a) the undertaking, as amended, would have complied with the requirements of Rule 15c2-12(b)(5) at the time of the primary offering, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances and (b) in the opinion of nationally recognized bond counsel selected by the Village, the amendment does not materially impair the interests of the beneficial owners of the bonds. Section 18. Bond Registrar. The Village covenants that it shall at all times retain a bond registrar with respect to the bonds, that it will maintain at the designated office of such bond registrar a place where bonds may be presented for payment and registration of transfer or exchange and that it shall require that the bond registrar maintain proper registration books and perform the other duties and obligations . imposed upon the bond registrar by this ordinance in a manner consistent with the standards, customs and practices of the municipal securities business. The bond registrar shall signify its acceptance of the duties and obligations imposed upon it by this ordinance by executing the certificate of authentication on any bond, and by such execution the bond registrar shall be deemed to have certified to the -21- Village that it has all requisite power to accept, and has accepted such duties and obligations not only with respect to the bond so authenticated but with respect to all the bonds. The bond registrar is the agent of the Village and shall not be liable in connection with the performance of its duties except for its own negligence or default. The bond registrar shall, however, be responsible for any representation in its certificate of authentication on the bonds. The Village may remove the bond registrar at any time. In case at any time the bond registrar shall resign or shall be removed or shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or if a receiver, liquidator or conservator of the bond registrar, or of its property, shall be appointed, or if any public officer shall take charge or control of the bond registrar or of its property or affairs, the Village covenants and agrees that it will thereupon appoint a successor bond registrar. The Village shall mail notice of any such appointment made by it to each registered owner of bonds within twenty days after such appointment. Section 19. Book-Entry System. In order to provide for the initial issuance of the bonds in a form that provides for a system of book-entry only transfers, the ownership of one fully registered bond for each maturity, in the aggregate principal amount of such maturity, shall be registered in the name of Cede & Co., as a nominee of The Depository Trust Company, as securities depository for the bonds. The Village Finance Director is authorized to execute and deliver on behalf of the Village such letters to, or agreements with, the securities depository as shall be necessary to effectuate such book-entry system. In case at any time the securities depository shall resign or shall become incapable of acting, then the Village shall appoint a successor securities depository to -22- Section, the principal of and the interest on which when due will provide moneys which, together with any moneys on deposit with such fiduciary at the same time for such purpose, shall be sufficient, to pay when due the principal of and interest due and to become due on said bonds on and prior to the applicable redemption date or maturity date thereof. (C) As used in this Section, the term "Federal Obligations" means (i) non- callable, direct obligations of the United States of America, (ii) non-callable and non- prepayable, direct obligations of any agency of the United States of America, which are unconditionally guaranteed by the United States of America as to full and timely payment of principal and interest, (iii) non-callable, non-prepayable coupons or interest installments from the securities described in clause (i) or clause (ii) of this paragraph, which are stripped pursuant to programs of the Department of the Treasury of the United States of America, or (iv) coupons or interest installments stripped from bonds of the Resolution Funding Corporation. Section 21. Bank Qualified Designation. The Village hereby designates the bonds as "qualified tax-exempt obligations" as defined in Section 265(b)(3)(B) of the Internal Revenue Code of 1986. Such designation shall apply only if the bonds are issued in 2006. The Village represents that the reasonably anticipated amount of tax-exempt obligations that are required to be taken into account for the purpose of Section 265(b)(3)(C) of the Code and will be issued by or on behalf of the Village and all subordinate entities of the Village during 2006 does not exceed $10,000,000. The Village covenants that it will not designate and issue more than $10,000,000 aggregate principal amount of tax-exempt obligations in the year in which the bonds are issued. For purposes of the two preceding sentences, the term "tax-exempt obligations" -24- includes "qualified 501 (c)(3) bonds" (as defined in the Section 145 of the Internal Revenue Code of 1986) but does not include other "private activity bonds" (as defined in Section 141 of the Internal Revenue Code of 1986). Section 22. Ordinance to Constitute a Contract. The provisions of this ordinance as supplemented by the Bond Order shall constitute a contract between the Village and the registered owners of the bonds. Any pledge made in this ordinance and the provisions, covenants and agreements herein set forth to be performed by or on behalf of the Village shall be for the equal benefit, protection and security of the owners of any and all of the bonds. All of the bonds, regardless of the time or times of their issuance, shall be of equal rank without preference, priority or distinction of any of the bonds over any other thereof except as expressly provided in or pursuant to this ordinance. This ordinance shall constitute full authority for the issuance of the bonds and to the extent that the provisions of this ordinance conflict with the provisions of any other ordinance or resolution of the Village, the provisions of this ordinance shall control. If any section, paragraph or provision of this ordinance shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this ordinance. Section 23. Publication. The Village Clerk is hereby authorized and directed to publish this ordinance in pamphlet form and to file copies thereof for public inspection in her office. -25- Section 24. Effective Date. This ordinance shall become effective upon its passage and approval. Passed and adopted this 5th day of December, 2006, by roll call vote as follows: Ayes: List Names Nays: Approved: December 5,2006 Irvana K. Wilks Mayor Published in pamphlet form: December 6, 2006 (SEAL) Attest: M. Lisa Angell Village Clerk -26- CERTIFICATE I, M. Lisa Angell, Village Clerk of the Village of Mount Prospect, Illinois, hereby certify that the foregoing ordinance entitled: "Ordinance Authorizing the Issuance of Not to Exceed $10,000,000 General Obligation Library Refunding Bonds, Series 2006, of the Village of Mount Prospect, Illinois," is a true copy of an original ordinance that was duly adopted by the recorded affirmative votes of a majority of the members of the President and Board of Trustees of the Village at a meeting thereof that was duly called and held at 7:00 p.m. on December 5, 2006, in the Board Room at the Senior Center Building, 50 South Emerson Street, and at which a quorum was present and acting throughout, and that said copy has been compared by me with the original ordinance signed by the Village President on December 5, 2006, and thereafter published in pamphlet form on December 6,2006 and recorded in the Ordinance Book of the Village and that it is a correct transcript thereof and of the whole of said ordinance, and that said ordinance has not been altered, amended, repealed or revoked, but is in full force and effect. I further certify that the agenda for said meeting included the ordinance as a matter to be considered at the meeting and that said agenda was posted at least 48 hours in advance of the holding of the meeting in the manner required by the Open Meetings Act, 5 Illinois Compiled Statutes 120. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Village, this day of December, 2006. Village Clerk (SEAL) -27- Village of Mount Prospect Community Development Department Mount Prospect MEMORANDUM ~ TO: MICHAEL E. JANONIS, VILLAGE MANAGER ~b.~-r~ 1'2-15' aCe, FROM: DIRECTOR OF COMMUNITY DEVELOPMENT DATE: DECEMBER 1, 2006 SUBJECT: PZ-17 -06 - TEXT AMENDMENT (FEE IN LIEU OF STORM WATER DET VILLAGE OF MOUNT PROSPECT - APPLICANT The Planning & Zoning Commission transmits their recommendation to approve Case PZ-17 -06, a request to amend Chapter 16 of the Village's Code, concerning storm water detention requirements. The Planning & Zoning Commission heard the request at their October 26, 2006 meeting. Jeff Wulbecker, Village Engineer, reviewed the proposed text amendment. The purpose of the amendment is to establish a process that will give Staff an option which can be applied to certain projects that would provide stormwater benefits without the necessity of constructing detention facilities on sites where it would be impractical and ineffective. Mr. Wulbecker stated that allowing a fee to be paid in lieu of construction of detention facilities should be considered for certain projects. Mr. Wulbecker presented staff's recommendations concerning eligible projects, fee amounts and fee utilization. Eligible projects for consideration of the fee in lieu option should include Development projects less than 1 acre and Residential Improvements including single family homes, building additions and garages. A tiered fee scheduled should be considered with $2.00 per square foot of new impervious surface for Development projects and $0.50 per square foot of new impervious surface for Residential Improvements. Collected fees could be used for area stormwater detention basin maintenance, relief storm sewers, flood control projects, combined sewer improvements and drainage way improvements. There was general discussion regarding the improvements the fees would apply to, the permit process and administering the fee in lieu of detention. Mr. Wulbecker said the proposed amendment would only affect buildings, not flat work such as driveways and patios. And that the Engineering Staff would like to use this fee in lieu option as little as possible and require detention wherever it is practical and effective. Engineering Staff would determine the eligibility and amount for the fee in lieu of detention during the permit review process The Planning & Zoning Commission voted 6-0 to recommend that the Village Board approve a text amendment request to accept a fee in lieu of providing stormwater detention, only at the discretion of the Village Engineer and where it is not practical to construct the detention, as noted in the Staff Report and the attached ordinance, which was reviewed by the Village Attorney, for Case No. PZ-17-06. Please forward this memorandum and attachments to the Village Board for their review and consideration at their December 5th meeting. Staff will be present to answer any questions related to this matter. Mount Prospect ~ Mount Prospect Public Works Department INTEROFFICE MEMORANDUM TO: PLANNING AND ZONING COMMISSION FROM: VILLAGE ENGINEER DATE: OCTOBER 18, 2006 SUBJECT: PROPOSED DEVELOPMENT CODE MODIFICATIONS FEE IN LIEU OF STORMWATER DETENTION Village staff has considered alternate ways for certain sizes and types of development and improvement projects to meet the Village's stormwater detention requirements. The goal is to establish a process that will give staff an option which can be applied to certain projects that would provide stormwater benefits without the necessity of constructing detention facilities on sites where it would be impractical and ineffective. The topic of allowing certain projects to pay.afee in lieu of constructing stormwater detention facilities was introduced at the June 13, 20Q6Committee of the Whole Meeting and also discussed at the September 26, 2006 Committee of the Whole Meeting. Those meeting minutes are attached for your information. At the September 26th meeting, the Village Board directed the topic to the Planning and Zoning Commission for consideration of the Development Code modifications. Current Code Reauirements Most of the Village of Mount Prospect storm sewer system was installed more than 30 years ago. Consequently, most of the Village storm sewers were installed before the current storm sewer design standards were developed, and before stormwater detention regulations were enacted. The current Village Codes were designed to provide both adequate drainage for any site to be developed, and to protect the neighboring properties by controlling the stormwater runoff entering the Village storm and combined sewer systems. This is accomplished primarily by requiring stormwater detention to be provided on site, as required by Sections 15.401 and 15.501 of the Village Code. The types of projects requiring stormwater detention are summarized below: [J All commercial, industrial, institutional, and multi-family developments [J Additions greater than 25% of the existing building footprint or parking lot expansions greater than 50% of the existing lot to any commercial, industrial, institutional, and multi- family development [J Single family developments involving two (2) or more new units Current Code Implementation For projects requiring stormwater detention, the stormwater runoff is intercepted at various points around the site, and directed to a storage area. These storage areas then detain the water, and release it at a slow, controlled rate through a "restrictor". By controlling the discharge from a site in this way, the impact to the receiving system is reduced. The Village Page 2 Proposed Development Code Modifications Fee in Lieu of Stormwater Detention October 18, 2006 Code sets the maximum rate of discharge for a given site, and thereby drives the design of the restrictor. The difference between the rate of discharge through the restrictor and the actual amount of stormwater runoff must be stored on site. For larger sites, stormwater is stored in detention ponds, while stormwater is otten stored in underground chambers, oversized sewers, and/or on the parking lot on smaller sites. In recent months, the Village has seen a dramatic rise in the number of small subdivisions; single family homes are being torn down, the lots subdivided, and two homes are then built. The Code does not give credit for redevelopment so any site to be developed or redeveloped is required to meet all Village Ordinances. As a result, these small subdivisions and redevelopment sites are required to provide stormwater detention. Practical Limits to the Current Code Small sites, especially small residential subdivisions, present unique challenges and limitations to providing stormwater detention. Section 16.603.C.1.b of the Village Code requires that the restrictor controlling the discharge rate from a detention pond be no smaller than 2" in diameter. This size is recommended as the smallest permitted restrictor in the Northeast Illinois Planning Commission (NIPC) model ordinance because smaller restrictors would likely be prone to becoming blocked with debris, and create maintenance problems. Depending upon the details of the outlet design, a 2" diameter restrictor will typically discharge between 0.17 and 0.28 cubic foot per second (cfs). However, Section 16.602.B.1.b of the Village Code requires that the maximum discharge for a site be limited to 0.2 cfs per acre developed (0.2 cfs/ac). Thus for a 1 acre site, the maximum allowable discharge is 0.2 cfs. Sites smaller than 1 acre would naturally require discharge rates smaller that 0.2 cfs, but these smaller discharge rates cannot be attained because the smallest restrictor permitted will still discharge approximately 0.2 cfs. Consequently, we can calculate smaller discharge rates, and associated detention volumes, but the minimum restrictor size of 2" effectively limits the performance of the detention system. Because of homeowners' tendencies to construct garages, sheds, additions, raised gardens, etc. in large open grassy areas, Section 16.603.A of the Village Code states that "Stormwater detention shall. not be permitted in the side or rear yards of any single family residential properties". Stormwater detention on residential properties must therefore be placed underground. To insure that these underground storage chambers remain, and are maintained, an easement is otten required. These Chambers and easements restrict the use of the property prohibiting the construction of any permanent structures over the stormwater detention facilities. Furthermore, because the detention chambers serve both lots of a subdivision, it is common to install storm sewer along the common property line. These chambers are typically large, with little cover, so they are installed along a property line, it may not be possible to install a fence along that line. It is understood that any individual small site will have insignificant impact on the receiving drainage system. However, the Code was designed to best protect the current and future property owners. Small sites provide small volumes of storage, and therefore small benefit Page 3 Proposed Development Code Modifications Fee in Lieu of Stormwater Detention October 18, 2006 to the system, but as more small sites provide detention storage, the cumulative effect on the system will become significant. Other Communities Staff conducted a survey of other communities to determine if they have implemented a Fee in Lieu option and how it is administered in their community. The survey was distributed by the Northwest Municipal Conference to all its members. Here is a summary of the responses: Cl 18 communities responded to the survey. Cl Of those 7 have considered implementing a Fee in Lieu option. Cl Of those only 5 have actually passed ordinances that allow this option. The other two indicated that they are where Mount Prospect finds itself, Fee in Lieu is under consideration, but the details have not been resolved yet. Cl The 5 communities vary as to the level of development/construction project that triggers the Fee in Lieu option. One community only allows this option in one area of the Village that is tributary to a regional lake that serves as a detention facility. 3 communities allow the Fee in Lieu option for subdivisions, new buildings, and parking lot expansions. One community allows this option for any construction project less than 1 ,000 square feet. And one community includes any new impervious surface such as garages, sheds, sidewalks, decks, driveways and patios. o 3 communities determine the fee based on the calculated required detention volume. 2 communities base the fee on the area of new impervious surface created by the project. o Each community calculated fees differently. Volume fees varied from $1 per cubic foot to the actual cost to construct the detention. Area fees ranged from $1.60 per square foot to $4 per square foot. o Projects that the fees have been utilized for include: expansion of other detention areas, transfer of detention from commercial to residential parcel and to retire the debt service on bonds purchased to fund regional stormwater management projects. Fee in lieu Rather than have stormwater detention provided on small sites, NIPC included in their model ordinance a mechanism for paying a fee in lieu of detention. This would allow an applicant to avoid the requirement to provide stormwater detention on site by paying a fee to the Village. Staff recommends that the Villaqe Code be modified to include a fee in lieu of stormwater detention option. Recommended Eliaible Proiects Where practical, staff believes that stormwater detention should be constructed for every project that meets the requirements of the Village Code. Only at the discretion of the Village Engineer and where it is not practical to construct the detention should the Fee in Lieu option be considered. Thus staff recommends that the threshold for all development proiects to be considered for the Fee in Lieu option should be less than 1 acre in size. Staff also recommends that the Fee in Lieu applv to certain residential improvement proiects, specificallv new homes, tear down and rebuilds. buildinQ additions, and qaraaes. These types of improvement can significantly increase the impervious surface area on a residential lot. Other smaller residential projects that only involve construction of patios, driveways, Page 4 Proposed Development Code Modifications Fee in Lieu of Stormwater Detention October 18, 2006 sidewalks, or sheds are not required by code to provide stormwater detention and staff does not recommended that they be included in the Fee in Lieu option. Recommended Fee Amount Charging a fee per square foot (ft2) of new impervious surface area created by a project appears to be the simplest and most equitable means of assessing the fee. Charging the fee based upon square foot (fe) of new impervious surface would also create the possibility to assess this fee consistently over all new impervious surfaces, such as single family homes, detached garages, and building additions. Staff recommends a tiered approach to the fee which would create the most reasonable svstem. D Development Proiects less than 1 Acre: $2 per square foot of impervious surface. This would apply to projects that trigger the development Code including: . All commercial, industrial and multi-family developments · Additions greater than 25% of the existing building footprint to any commercial, industrial, institutional, and multi-family development · Parking lot expansions greater than 50% of the existing lot to any commercial, industrial, institutional, and multi-family development · Single family developments involving two (2) or more new units D Residential Improvements: $0.50 per square foot of impervious surface. This would apply to individual projects including: . Single family new homes (including tear downs and rebuilds) . Single family home building additions . Single family garages Impact of Fee The fee of $2 per ft2 of new impervious surface for development projects will typically result in an amount slightly less than the actual cost to construct the required detention facilities of recent development projects. This fee is also consistent with the costs the Village is currently paying for earthwork in the detention ponds in the Kensington Business Center. The $0.50 per ft2 for residential projects would generate fees in the amount of $350 for a typical detached garage, $200 for a typical building addition, and $2,000 to $5,000 for a typical new home. Based on permits issued in 2005, the fee that would have been collected for that year totaled $104,000. Collection of Fee When a project is submitted for permit, the Engineering Staff will review the project, determine if it is eligible for the Fee in Lieu option and then determine the amount of the fee. The project review letter will inform the applicant that the fee is required. A copy of the review letter will be sent to the Finance Department. The applicant will be required to submit the fee prior to issuance of the permit. When the fee is received it will be sent on to the Finance Department where it will be deposited into a reserve account for future Stormwater Detention projects. Use of Fee The Village staff will identify and evaluate potential projects and their benefit to the overall stormwater system and construct projects as the funds accumulate to an amount that can Page 5 Proposed Development Code Modifications Fee in Lieu of Stormwater Detention October 18, 2006 accomplish the projects. Examples of projects include construction, enlargement or maintenance of stormwater detention basins; construction of relief storm sewers; flood control projects; combined sewer improvements; and drainage way improvements. Next Steps Staff looks forward to presenting this to the Planning and Zoning Commission at their October 26th Meeting for their consideration and will be available to answer any questions. Upon concurrence by the Planning and Zoning Commission at their October 26th Meeting, this could then be brought for a first reading at a regular Village Board Meeting in November. Jeff Wulbecker Cc: Glen R. Andler, Public Works Director Sean Dorsey, Deputy Public Works Director Chuck Lindelof, Project Engineer William F. Cooney, Director of Community Development Judy Connolly, Senior Planner H:Engineering\Development\DevCode\Fee in Lieu06\PZMemo MINUTES OF THE REGULAR MEETING OF THE PLANNING & ZONING COMMISSION CASE NO. PZ-17-06 Hearing Date: October 26, 2006 PETITIONER: Village of Mount Prospect PUBLICATION DATE: June 7, 2006 REQUEST: Text Amendment to the Development Code MEMBERS PRESENT: Chair Arlene Juracek Joseph Donnelly Marlys Haaland Ronald Roberts Richard Rogers Keith Youngquist MEMBERS ABSENT: Leo Floros Mary Johnson, Alternate STAFF MEMBERS PRESENT: Ellen Divita, Deputy Director, Community Development JeffWulbecker, Village Engineer Chuck Lindelof, Project Engineer INTERESTED PARTIES: Steve Zalusky R. Wojcik Scott Moor Theodore Furovitz Chairperson Arlene Juracek called the meeting to order at 7:30 p.m. Richard Rogers moved to approve the minutes of the September 28,2006 meeting and Joseph Donnelly seconded the motion. The motion was approved 6-0. Marlys Haaland made a motion to continue cases PZ-l4-06, PZ-28-06 and PZ-30-06 to the November 9, 2006 Planning and Zoning Commission Meeting. Keith Youngquist seconded the motion. The motion was approved 6-0. Chairperson Juracek introduced Case Number PZ-17 -06, Text Amendments to the Village's Development Code, at7:35 p.m. She said that the Village Board's decision is final for the request. Jeff Wulbecker, Village Engineer, summarized the case. He stated that the purpose of this amendment is to establish a process that will give Staff an option which can be applied to certain projects that would provide stormwater benefits without the necessity of constructing detention facilities on sites where it would be impractical and ineffective. Mr. Wulbecker said the proposed changes have several benefits. He said from Staff's perspective it will allow smaller subdivisions to provide the required detention volume. He stated that from the developer's perspective it will eliminate the need to construct underground stormwater detention and/or loss of land for above ground detention. He said from the homeowner's perspective it will eliminate the expense and responsibility of maintenance. He said it will also eliminate restrictions caused by underground detention chambers for structures such as fences, decks and sheds on the (re)developed lot. Mr. Wulbecker introduced Chuck Lindelof, Project Engineer for the Village. Mr. Lindelof summarized the current code requirements. He said current code requires stormwater detention for single family developments of two or more new buildings, all new commercial and multi-family developments, and any commercial or multi- family additions greater than 25% or parking lot expansions greater than 50%. Arlene Juracek, Acting Chair Planning & Zoning Commission Meeting October 26, 2006 PZ-17-06 Page 2 Mr. Lindelof explained that stormwater detention is basically a controlled flood. Stormwater runoff is controlled on-site through a restrictor to release excess water in a controlled manner. He said per Village Code, the maximum discharge rate is 0.2 cubic feet per second, per acre. He stated the minimum restrictor size is 2-inches in diameter, but on a smaller site a smaller restrictor may be necessary, causing a conflict. He said often on large commercial or industrial sites, the detention reservoir is usually a large pond. In a residential area, this is not always possible or desirable. He stated the remedy to this is underground chambers, but the installation of underground chambers often restricts the installation offences, decks and patios. Mr. Lindelof showed exhibits demonstrating the cost to comply with stormwater detention codes. He stated that putting the stormwater storage underground is the most costly way to provide code compliance. He showed additional exhibits demonstrating the detention cost for commercial development. Mr. Wulbecker stated that the cost of storm water detention is significant and the purpose of this amendment is to help alleviate the cost of compliance and provide practical benefits to stormwater detention. He stated there are three options for consideration: 1) accept a fee in lieu of the onsite construction of detention facilities for certain improvements; 2) raise the threshold for detention requirements on single family developments from two buildings to one or two acre minimum size development; or 3) continue with the current Code requirements. He stated that only the fee in lieu of option would give Staff the opportunity to provide the benefits desired for a wide variety of projects. Mr. Wulbecker stated that Northwest Municipal Conference sent out a survey to surrounding commumbes concerning local administration and regulation of storm water detention. He said 18 communities responded to the survey and it showed seven communities have considered the fee in lieu of detention and five have implemented the fee. He said each community defines their own fee eligible projects and use either a volume basis or impervious area calculations to determine said fees. He said the fees varied widely between the communities based on the method they use to determine fees. He stated that the fees based on volume ranged from $1.00 per cubic foot of storage volume to the actual cost of the project. He said the fees based on area ranged from $1.60 to $4 per square foot of impervious area. According to the survey, the different communities used fees collected towards expansion or maintenance of other detention areas, specific projects or to retire debt service for stormwater management project bonds. Mr. Wulbecker said where practical, staff believes storm water detention should be constructed for all projects that meet requirements of the Village Code. Only at the discretion of the Village Engineer, and where it would not be practical, would payment in lieu of installing detention be considered. Staff is recommending that development projects less than one acre, residential improvements including new homes, tear down and rebuilds, building additions and garages all be eligible for the fee in lieu of detention option. He said Staff is not recommending this option for construction of sheds, patios or decks. He said they recommend determining fees based on the impact of project; that development projects of less than one acre be priced at $2 per square foot of impervious area and that residential improvements be priced at $0.50 per square foot of new impervious area. He stated Staff anticipates a yearly collection of$100,000. Mr. Wulbecker stated that the fees for development will be slightly less than the cost to install detention facilities for development projects less than one acre. He said for residential improvements, the fees for a new home would range from $2000-$5000, the fees for an addition would average $200 and for a typical garage would average $350. Mr. Wulbecker said Engineering Staff would determine the eligibility and amount for the fee in lieu of detention during the permit review process. Engineering would send a review letter to inform the applicant of eligibility and the fee would be submitted to the Building Division prior to permit issuance. He said the Finance Department would deposit the collected fees into a reserve account. Arlene Juracek, Acting Chair Planning & Zoning Commission Meeting October 26, 2006 PZ-17-06 Page 3 Mr. Wulbecker stated that Engineering Staff recommends the fees collected be used for area stormwater detention basin maintenance, relief storm sewers, flood control projects, combined sewer improvements and drainage way improvements. Mr. Wulbecker stated that Village Board's decision is final for this case. He asked if the Commission had any questions. Ronald Roberts asked if the restriction rate should be tiered based on acreage. He asked whether the discharge rate could be altered for smaller projects versus collecting a fee in lieu of providing detention. Mr. Lindelof stated that his suggestion is to leave the restriction rate as it is currently listed in the Village Code. He said a good analogy is that rain does not fall at a decreased rate on a smaller piece of property, therefore the restriction rate should not vary by property size. Joe Donnelly asked if the main purpose of these detention areas is to prevent basement flooding. Mr. Wulbecker said the detention prevents flooding by controlling the peak flow. Mr. Donnelly asked if the Village has excess capacity in the storm sewer system to allow this fee in lieu of detention option. Mr. Wulbecker said when storm water detention is provided on a subdivision site, capacity is calculated at maximum flow. He stated that there are some areas of town where there is not excess storage. Richard Rogers stated that his impression is that the extra fees collected would be used for improvements where it is needed the most. Chairperson Juracek stated that the person paying the fee may be in an area where there is adequate stormwater detention so the fees collected can be used in an area of the Village where the improvements are needed. Mr. Wulbecker confirmed that Ms. Juracek's statement was correct. Mr. Donnelly asked if the need for detention be taken into consideration before relief is given to a project. Mr. Wulbecker stated that as long as the project is being built according to Village Code, and current drainage patterns are not being changed, giving relief would be allowed. Mr. Donnelly said he wants to ensure that giving relief to one neighbor will not cause flooding in another neighbor's property. Mr. Lindelof stated that Engineering would like to use this fee in lieu of as little as possible; that every project, where possible, would still be required to create detention. The idea behind the fee in lieu of detention is to use it where it is impractical or impossible to create the detention. Keith Youngquist stated his concern is creating an additional fee for those individuals who are attempting teardowns and additions. There was general discussion regarding allowable lot coverage and how this fee is going to be applied. Mr. Wulbecker clarified that some new construction in older neighborhoods is creating a burden on the existing infrastructure. Ronald Roberts asked if the fee is just for new structures or for additional impervious square footage. Mr. Wulbecker stated that the fee is incrementally based on new/additional square footage. There was additional discussion regarding the fee assessment on potential projects. Chairperson Juracek asked if the final statutory text of the amendment would be brought before the Commission prior to Village Board approval. Mr. Wulbecker said he can bring the final text back to the Commission. He stated that he is looking for concurrence from the Commission tonight on what type of projects would be eligible, how much the fees would be and how the collected fees would be used. He stated this amendment is directed at being sensitive to a single family home on a single lot. Mr. Donnelly asked if projects like Celtic Glen would have been allowed to pay the fee versus constructing the detention if this amendment were in place when Celtic Glen was approved. Mr. Wulbecker stated that the Arlene Juracek, Acting Chair Planning & Zoning Commission Meeting October 26, 2006 PZ-17-06 Page 4 amendment is intended to consider the single family home on a single lot and that Celtic Glen IS a large subdivision, well over one acre, and therefore would still be required to construct the detention. Mr. Rogers asked if the fee calculation deducts the existing impervious area from the new impervious area created; Mr. Wulbecker confirmed that is correct. Mr. Donnelly asked if circular driveways would be considered in this fee. Mr. Wulbecker said the proposed amendment would only affect buildings, not the flat work. The Commissioners indicated there are several checks and balances in place to prevent an overload on the current infrastructure. There was general discussion regarding the permit process and administering the fee in lieu of detention. Chairperson Juracek called for comments from the audience. Hearing none, the public hearing was closed at 8:22 p.m. Richard Rogers made a motion to approve a Text Amendment to allow a fee in lieu of stormwater detention, as submitted, per Commission discussion. Joe Donnelly seconded the motion. Chairperson Juracek clarified that the final statutory language should be reviewed before it goes before the Village Board. UPON ROLL CALL: AYES: Donnelly, Haaland, Roberts, Rogers, Youngquist, and Juracek NAYS: None Motion was approved 6-0. The case will go to Village Board for their consideration Joseph Donnelly made a motion to adjourn at 8:23 p.m., seconded by Richard Rogers. The motion was approved by a voice vote and the meeting was adjourned. Stacey Dunn, Ad inistrative Assist t Community Development Department H:\PLAN\Plarming & Zoning COMM\P&Z 2006\Minutcs\PZ~17-06 Fee in Lieu ofTcxt Amendment.doc ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 16 AND APPENDIX A - DIVISION II OF THE VILLAGE CODE OF MOUNT PROSPECT, ILLINOIS BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS, ACTING IN THE EXERCISE OF THEIR HOME RULE POWERS: SECTION 1: A new Section 16.606 entitled "Fee in Lieu of Storm Water Detention" shall be added to Article VI "Storm Sewer and Drainage" of Chapter 16 entitled "Site Construction Standards" of the Mount Prospect Village Code and said new section shall be and read as follows: 16.606 Fee in Lieu of Storm Water Detention A fee in lieu of storm water detention may be considered pursuant to the following: 1. The property owner must file a written request for the fee in lieu option with the Village Engineer at the time of filing the building permit application. 2. Fee in lieu shall be available only for development projects less than one (1) acre and for residential improvements including single family homes, single family building additions and single family garages. 3. The applicant shall pay all of the Village's direct engineering costs. 4. The Village Engineer has determined, based on the application of standard engineering principles, that providing detention, in this instance, would be either ineffective or impractical. 5. The applicant shall make a monetary contribution, in aid of storm water management within the Village, according to the formula set forth in Appendix A, Division II. SECTION 2: The following shall be added in numerical order to Appendix A, Division II, "Fees, Rates and Bonds" of the Mount Prospect Village Code: iManage 180944 1 & Sec. 16.606 Fee in Lieu of Storm Water Detention: Residential Improvements including Single Family Homes, Single Family Building Additions and Single Family Garages: Development Projects less than one (1) Acre: $ .50 sq. ft. of new impervious surface $2.00 sq. ft. of new impervious surface SECTION 3: This Ordinance shall be in full force and effect from and after its passage, approval and publication in pamphlet form in the manner provided by law. AYES: NAYS: ABSENT: PASSED and APPROVED this day of ,2006 Irvana K. Wilks Mayor ATTEST: M. Lisa Angell Village Clerk iManage 180944 I 2 :Mount Prospect ~ Mount Prospect Public Works Department INTEROFFICE MEMORANDUM TO: VILLAGE MANAGER MICHAEL E. JANONIS ~b./~1 e- 12. ~ (,) FROM: PROJECT ENGINEER DATE: NOVEMBER 30, 2006 SUBJECT: PARKING RESTRICTIONS AROUND PROSPECT IDGH SCHOOL The Engineering Staff transmits their recommendation to approve parking restrictions on portions of Eastwood A venue, Elmhurst Avenue, Highland Street and Memory Lane near Prospect High School. Over the past few years, the Village has had to address parking problems around Prospect High School as a result of students parking on Village streets rather than in the school parking lot. As opposed to continuing to send the issue back to the Safety Commission and Village Board of Trustees before installing parking restriction signs, the Village Board granted authority to the Manager's Office and Staff in 2003 to take immediate action ifnecessary should new problems arise. Formal approval by the Village Board of Trustees would then be done at a later Village Board Meeting after the signs were installed. Since the start of the new school year, the Engineering Staff has been monitoring student parking around the high school. During the first few weeks of school, approximately 20 cars were consistently parking on Eastwood Avenue and Highland Street where there were no parking restrictions. This was the first year a significant amount of students had been parking at this location. Based on a number of complaints from concerned residents and per your direction, additional parking restrictions were approved for portions of Eastwood Avenue and Highland Street. Signs prohibiting parking from 1 O:OOam-ll :OOam and 1 :00pm-2:00pm on school days (consistent with other streets in neighborhood) were installed the end of September. Soon after, many students began to park on Elmhurst Avenue, one street to the east. More signs were ordered and per your direction after several complaints from concerned residents, parking restriction signs were installed on portions of Elmhurst Avenue, Highland Street and Memory Lane the end of October. Student parking has not been seen on Russel Street (one street to the east) or other Mount Prospect streets in recent weeks because the school has opened the 200+ parking spaces previously reserved for band practice. Staff has and will continue to monitor Mount Prospect streets for any additional streets that may experience problems associated with student parking. So that the recent parking restrictions are included in the Village Code, Staff recommends approving: No Parking 10:00am-ll:00am & 1:00pm-2:00pm School Days for the following streets (Section 18.2009B ofthe Village Code): Name of Street Eastwood Avenue Elmhurst Avenue Highland Street Memory Lane Side of Street East and West East and West North and South North and South Description Between Kensington Road and Memory Lane Between Kensington Road and Memory Lane Between Eastwood Avenue and Russel Street Between Eastwood Avenue and Elmhurst A venue page 2 of2 Parking Restrictions Around PHS November 30, 2006 Please include this item on the December sth Village Board Meeting Agenda. Enclosed is a location map for your reference. Matthew P. Lawrie cc: Village Clerk Lisa Angell h: lengineeringltraffic\safety _ commissionlrecs&min \dec06rec1.doc t NEIGHBORHOOD PARKING RESTRICTIONS - PROSPECT HIGH SCHOOl VILLAGE OF MOUNT PROSPECT 'ftfI ~ !II ~ Q. llDDDO DDDO ~~.. DDDO >n>n n nn/ C C'" /1') ~ ~ .~ = ...i ~ s ~ Q. ..... ~ ~ = /. ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 18 ENTITLED 'TRAFFIC CODE' OF THE VILLAGE CODE OF MOUNT PROSPECT BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS ACTING IN THE EXERCISE OF THEIR HOME RULE POWERS: SECTION ONE: That Section 18.2009 of "SCHEDULE IX - PARKING DURING SCHOOL HOURS" of Chapter 18 of the Village Code of Mount Prospect, as amended, is hereby further amended by adding thereto in proper alphabetical sequence so that hereafter said Section 18.2009.8 ofthe Village Code of Mount Prospect shall include the following: "Name of Street Side of Street Eastwood Avenue East and West Elmhurst Avenue East and West Highland Street North and South Memory Lane North and South 8etween Hours of School days 10am -11am and 1 pm-2pm School days 10am -11am and 1 pm -2pm School days 10am -11am and 1 pm-2pm School days 10am -11am and 1 pm -2pm Description 8tw. Kensington Road and Memory Lane 8tw. Kensington Road and Memory Lane 8tw. Eastwood Avenue and Russel Street 8tw. Eastwood Avenue and Elmhurst Avenue." SECTION TWO: That this Ordinance shall be in full force and effect from and after its passage, approval and publication in pamphlet form in the manner provided by law. AYES: NAYS: A8SENT: PASSED and APPROVED this day of December 2006. ATTEST: M. Lisa Angell Village Clerk H:\CLKOIfiles\WIN\ORDINANC\CH 18,2009 Prospecl School parking dec2006doc livana K. Wilks Mayor ;I CHF 06-231 INTEROFFICE MEMORANDUM Village of Mount Prospect Mount Prospect, Illinois FROM: VILLAGE MANAGER ~ CHIEF OF POLICE ~ ~ NOVEMBER 30,2006 TO: DATE: SUBJECT: AMENDMENT TO VILLAGE ORDINANCE HANDICAP PARKING VIOLATION FINE In 2006, the Illinois Vehicle code was amended to increase the fine amounts for vi ions of handicap parking restrictions. More specifically, Illinois Vehicle Code 625 ILCS 5/11- 1301.3(c) increases the fine amount to $250.00 for vehicles not possessing authorized plates or tags while parked in a space designated for handicap parking. Additionally, Illinois Vehicle Code 625 ILCS 5/11-1301.3(c-1) increases the fine amount to $500.00 in those instances where a non-handicapped person parks a vehicle tagged for a handicapped operator in a designated handicap zone. Accordingly, the Police Department requests the Village Code be amended so as to be consistent with current State of Illinois law. Attached for your review is the applicable Illinois Vehicle Code. Please contact me should you require additional information. Attachment c: Village Attorney Deputy Chief Dahlberg Deputy Chief Semkiu Page - 1 - C:\Documents and Settings\drhode\Local Settings\Temporary Internet Files\OLK259A\Handicap Parking Amendment 06.doc CHF 06-231 625 ILCS 5/11-1301.3) (from Ch. 95 1/2, par. 11-1301.3) Sec. 11-1301.3. Unauthorized use of parking places reserved for persons with disabilities. (a) It shall be prohibited to park any motor vehicle which is not properly displaying registration plates or decals issued to a person with disabilities, as defined by Section 1-159.1, pursuant to Sections 3-616, 11-1301.1 or 11-1301.2, or to a disabled veteran pursuant to Section 3-609 of this Act, as evidence that the vehicle is operated by or for a person with disabilities or disabled veteran, in any parking place, including any private or public offstreet parking facility, specifically reserved, by the posting of an official sign as designated under Section 11-301, for motor vehicles displaying such registration plates. It shall be prohibited to park any motor vehicle in a designated access aisle adjacent to any parking place specifically reserved for persons with disabilities, by the posting of an official sign as designated under Section 11-301, for motor vehicles displaying such registration plates. When using the parking privileges for persons with disabilities, the parking decal or device must be displayed properly in the vehicle where it is clearly visible to law enforcement personnel, either hanging from the rearview mirror or placed on the dashboard of the vehicle in clear view. Any motor vehicle properly displaying a disability license plate or a parking decal or device containing the International symbol of access issued to persons with disabilities by any local authority, state, district, territory or foreign country shall be recognized by State and local authorities as a valid license plate or device and receive the same parking privileges as residents of this State. (a-1) An individual with a vehicle displaying disability license plates or a parking decal or device issued to a qualified person with a disability under Sections 3-616, 11-1301.1, or 11-1301.2 or to a disabled veteran under Section 3-609 is in violation of this Section if (i) the person using the. disability license plate or parking decal or device is not the authorized holder of the disability license plate or parking decal or device or is not transporting the authorized holder of the disability license plate or parking decal or device to or from the parking location and (ii) the person uses the disability license plate or parking decal or device to exercise any privileges granted through the disability license plate or parking decals or devices under this Code. (b) Any person or local authority owning or operating any public or private offstreet parking facility may, after notifying the police or sheriff's department, remove or cause to be removed to the nearest garage or other place of safety any vehicle parked within a stall or space reserved for use by a person with disabilities which does not display person with disabilities registration plates or a special decal or device as required under this Section. (c) Any person found guilty of violating the provisions of subsection (a) shall be fined $250 in addition to any costs or charges connected with the removal or storage of any motor vehicle authorized under this Section; but municipalities by ordinance may impose a fine up to $350 and shall display signs indicating the fine imposed. If the amount of the fine is subsequently changed, the municipality shall change the sign to indicate the current amount of the fine. It shall not be a defense to a charge under this Section that either the sign posted pursuant to this Section or the intended accessible parking place does not comply with the technical requirements of Section 11-301, Department regulations, or local ordinance if a reasonable person would be made aware by the sign or notice on or near the parking place that the place is reserved for a person with disabilities. (c-1) Any person found guilty of violating the provisions of subsection (a-1) shall be fined $500. The circuit clerk shall distribute $250 of the $500 fine imposed on any person who is found guilty of or pleads guilty to violating this Section, including any person placed on court supervision for violating this Section, to the law enforcement agency that issued the citation or made the arrest. If more than one law enforcement agency is responsible for issuing the citation or making the arrest, the $250 shall be shared equally. Page - 2 - C:\Documents and Settings\drhode\Local Settings\Temporary Internet Files\OLK259A\Handicap Parking Amendment 06.doc ORDINANCE NO. AN ORDINANCE AMENDING APPENDIX A DIVISION III ENTITLED "PENALTIES AND FINES" OF THE VILLAGE CODE OF MOUNT PROSPECT. ILLINOIS BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS ACTING IN THE EXERCISE OF THEIR HOME RULE POWERS: SECTION 1: Appendix A, Division III entitled Penalties and Fines of the Mount Prospect Village Code shall be amended by deleting Section 18.1324 under Chapter 18 "Traffic" in its entirety and inserting a new Section 18.1324 entitled "Handicapped Person; Parking Privileges" under Chapter 18 which shall be and read as follows: Section 18.1324 - Handicapped Person: Parkina Privileaes Fine: Minimum of $250.00 for each offense, maximum fine of $500.00. SECTION 2 That this Ordinance shall be in full force and effect from and after its passage, approval and publication in pamphlet form in the manner provided by law. AYES: NAYS: ABSENT: PASSED and APPROVED this day of ,2006 Irvana K. Wilks Mayor ATTEST: M. Lisa Angell Village Clerk H:\CLKO\files\WIN\ORDINANC\MP Ord Amd Appendix A Handicapped Parkingnov2006.DOC IManage184859 1 ~