HomeMy WebLinkAbout1692_001Village of Mount Prospect
Mount Prospect, Illinois
INTEROFFICE MEMORANDUM
T0: Terrance L. Bu rghard , Village Manager
W
FROM: David C. Jepson, Director of Finance
DATE: August 24, 1984
SUBJECT: Cash Management Procedures
During the past several months, a greater emphasis has been placed on the
importance of the Cash Management and Investment Programs of the Village.
I believe that this can be demonstrated by comparing the amount of cash
invested as of April 30, 1983 with the amount invested as of April 30,
1984. As of April 30,' 1983, $18,,375,781 out of a total of $19,439,761, or
94.5%, was invested; and as of Apri 11 30, 1984, $21,887,248 out of a total
of $22,043,157, or 99.3%, was invested. Although the Village does receive
overnight repurchase agreement rates for excess amounts in bank accounts,
this rate is not as good as the rate as can be obtained by investing the
funds in short-term securities.
An effective cash management program includes not only estimating when cash
will be received and when it will be needed for disbursement, but also It
includes planning the optimum time when disbursements should be made. In
reviewing cash disbursement procedures for the Village, it was discovered
that on some occasions checks of substantial amounts had been written and
then not released to the vendor for a period of one day up to over a week.
This practice was instituted to be able to include the payment on the
listing of bills going to the Board before the due date of the payment. An
example of this is the monthly payment due to Browning Ferris for the
garbage collection contract. Our monthly payment to Browning Ferris i s some
$86,000 and is due by the 25th of the month. If the payment is actually
made by the 20th of the month, the Village receives a cash discount. When
the second board meeting of the month falls close to the 15th of the month
the payment would be processed prior to that meeting with the check actually
written on the 13th or 14th. The check would then be released on the 20th.
This practice also is used for the payment of principal and interest on
Village bonds and for other major payments that are required on a specific
date. Our cash management program would be much more effective if these
types of payments could be reported after they were paid rather than being
prepared and included in the payment approval list before the due date of
the payment.
The types of payments that fall into this category are monthly payments to
Northwest Central Dispatch , Joint Action Water Agency, Browning Ferris,
Commonwealth Edison and for principal and interest on Village debt. Additio-
nally,
dditio-
nally, any time a contract has been approved through the formal bid process,
it would fall into this category.
......................
Terrance L. Burghard
Page 2
Cash Management Procedures
I am requesting administrative authority to make disbursements for any
amount approved by contract or by a formal bid, ' -and for utility bills., on
the due date and reporting them to the VillageBoard after the payment.
Any payment that has been previously made appear's on the list of bills with
an asterisk after the total amount.
Village of Mount Prospect
Mount Prospect, Illinois
INTEROFFICE MEMORANDUM
TO: Terrance L. Burghar.d, Village Manager
FROM: David C. Jepson, Finance Director
DATE: August 24., 1984
SUBJECT: Quarterly Budget Report
Attached are two schedules which compare actual revenues and expenditures
for May - July 1984 with 1984/85 budgeted amounts, Additionally, I have
included actual revenues and expenditures for May - July 1983 for compara-
tive purposes. The schedules also contain notes to explain unanticipated
differences.
It is difficult to determine a trend regarding revenues or expenditures
with only three months data, However, when seasonal influences and/or
capital improvement proj I ects are taken into consideration, it appears that
expenditures are at the expected level after three month.s. The only
operating service areas that are over R'the 25% level are Public Representaw
tion, ' the Village Clerk's Office and Community and Civic Services, These
increases can be attributed to accelerated payments of certain amounts and
annual totals should not exceed the amounts budgeted.
Trends for revenues are even less predictable only three months into the
fiscal year.. Less than 1% of property taxes have been received at this time.,
and this affects the General Fund, Debt Service Funds,, Pension Funds and
certain other funds. However, there are indications that some revenues are
coming in better than expected: State Income Tax, Motor Fuel Tax, Fines and
Licence revenue could be more than budgeted. Additionally, Industrial
Revenue Bond Fees and revenue from the sale of Village property will be
included in total revenues for the year but are not included in the three
month report.
The purpose of this report is to provide supplementary information to budget
report for the three month period ending July 31, 1984. We will be monitoring
individual revenue and expenditure accounts closely during the next three
months as the six month report will be the basis for developing the 1985/86
budget.
Enc
Fund
General Fund
Special Revenue Funds
Revenue Sharing Fund
Motor Fuel Tax Fund
Community Development Block Grant
Illinois Municipal Retirement Fd,
Enterprise Funds
Water and Sewer Funds
Parking System Revenue Fund
Internal Service Fund
Risk Management Fund
Capital Projects Funds
Capital Equip., Repair &
Replacement
Corporate Purpose Construction -
1973
SSA #5 Lake Michigan Water
Const.
Debt Service Funds
Corporate Purpose - 1973
Corporate Purpose - 1974
Communications Equipment- 1984
SSA #1 - Prospect Meadows
SSA #2 - Blackhawk
SSA #3 - Busse/Wille
SSA #4 - Busse/Wille
SSA #5 - Lake Michigan Water
Pension Funds
1ILLAG E OF MOUNT PROSPECT
Year -to -Date Revenue Report
July 31, 1984
Received Received
Budget May -July Percent May -July
1984/85 1984 Received 1983�
$ 9,997,400 $199405318 19.4% (1) $193979284
276,500
68,084
24.6%
15*8% (3)
69,075
930,000
204,442
21.9%
(2)
1839207
8359574
117s000
14e0%
$21 406294
50,000
2629500
443
0*2%
(3)
12,496
4,568,200
1,273,443
26.2%
(4)
648,381
117,264
29,188
24,9%
29,258
867,500
184,577
21*3%
(5)
24291,500
254,195
104*81
(6)
17,916
9282990;
85,057
099%
( 3 )
75195
1s025,150
6,378
Oa6%
(3)
89,129
161,600
727
0*4%
(3)
5,218
3292625'
1,870
0*6%
(3)
11,426
70,000
715
1*0%
(3)
522
22,790
772
3*4%
(3)
363
29,500
15,076
3o6%
(3
w
4,685
tmw
3
#00
9,370
113
1.2%
3
416
289,450
5,052
1*7%
(3),
19,510
Police Pension Fund
192429300
196s596
15*8% (3)
Firemen's Pension Fund
11317,300
244,432
18*6% (3)
Less: In'terfund Transfers
2,421,900
*,.L'',5,O65691)
20o9% (5)
Totals - Village Funds
$21 406294
$4,030,1787
18, 8%
195,894
212,359
14 9,253i
$2,7682396
Notes to Revenue Report
(1) General Fund Revenues
Property Taxes
Sales Tax (1)
State Income Taxes
Other Taxes
Permits
Licenses
Fines
Other Income
Total
(1) as adjusted
July 31, 1984
May -July May -July
1984
1983
55249
119233
975 ,1119195176
327,901
250,980
495033
789
38,407
49,280
223,501
115,111
839135
493,884
237,681
831
$19,9402318 $1,,397,284
(2) The Motor Fuel Tax Allotment is for a two month period.
(3) These funds are primarily financed by property taxes. Approximately
45% of property tax receipts will be received in August, September and
October,
(4) Water and sewer receipts reflect the increase in sales as of 5/1/84 and
the one time gain by converting to a bi-monthly billing cycle,
(5) Interfund transfers are made in ten equal payments from June - March.
, These amounts include two payments.,
(6) The Capital Improvement Fund includes loan proceeds of $250,000. This
amount had originally been included in the 1983/84 budget but was not
received until 5/1/84,
VILLAGE OF MOUNT PROSPECT
iW
Year -to -Date Expenditure Report
July 31, 1984
See attached notes
Expended
Expended
Budget
May -July
Percent
May -July
Service Area
1984,/85
1984
Expended
1983
Public Representation $
679000
$ 269671
39.8/
(1)
$ 269421
Village Administration
3019950
47,307
15.7%,"(4)
399113
Management Servi ces
Finance Department
1,035,340
2219249
21.4/
1389173
Village Clerk's Office
1199285
339,621
28.2/
23,570
Risk Management
855,500
163,053
19.11
Public Safety and Protection
Police Department
297219609
593,243
21.8/
6455813
Fire and Emergency
Protection Dept.
2,8753725
6429707
22.3/
6059474
Central Dispatch Service
2349000
241,307
103.11
(2)
55,446
Health and Human Services
Health Services Division
192389826
1939175
15.6%
1949501
Human Services Division
1225097
273817
22.8/
219606
Community Development
Administration and Planning
1019
249127
23.7%
339485
CDBG Administration & Projects
8359574
1519043
18.1%
719834
Maintenance of Public Facilities
Street Division
1,5129787
2959584
19.51
2659170
Water and Sever Division
4,542,717
8029152
17,67%
520,131
Parking System Division
92,789
179430
18.81
339414
Engineering Division
2,763,993
1.5195201
5.51
(3)
1239736
Lake Michigan Water Const. ( SSA#5)
1,576,600
2529597
16.0%
1139756
Community and Civic Services
369120
169857
46.7/
18,116
Debt Service Funds
General Obligation Bonds
561,225
1139857
20.31
1132257
Special Service Area Bonds
3539183
949510
26.0%
ON
Pension Funds
Employee Pensions
2739100
50,891
18.6%,
58,412
Police Pensions
19242,300
559105
4.4%,
(5)
64 ,821
Firemen's Pensions
193179300
153,305
1.21
(5)
25,210
Interfund Transfers
23,421;1900),
(4279157)
17.6 /
27j5OO),
Totals Village Services
$3 803,971
17.0_
$3;164,959
See attached notes
Notes to Expenditure Report
July 31, 1984
Includes annual 0ayments to NIPC and Northwest Municipal
Conference totaling $1.3,000,0
2,, Includes payments of $16 ' 1,543 for computer aided dispatch
equipment that had been anticipated,in the III budget'.
3a esu , rfacing and sewer r6habilitation projects have not
started as of July 31, 1984*
4., Approximately 10% of legal services and Cable TV expenditures
have been expended as of July 31,1984.
5, Amounts appropriated for future pension obligations are not
recorded as expenditures*
/rfn//'/ d/ DtiiMh
'Yj Mfr,
i
MINUTES
COMMITTEE OF THE WHOLE
JULY 24p 1984
I, ROLL CALL
:
The meet ing was called to order at 7 NM 301. p.m. Present
at the meeting were, Mayor Carolyn Krause, Trustees
Ralph Arthur, Gerald Farley, Leo Fl tiros"" , , Norma Murauskls
and Theodore" Wattenberg. Absent was Trustee George Van
Ge m. Also present t the meeting were: Village age Man'ager, f
Terrance" Burghard , Administrative Assistant to the
I
Village Manager John Bowmen, Community Development
Director Ken Fritz, Village Planner Steve Park Assistant
Planner Michael Sims, , Special Assistant tant o the Village
Manager Michael Janon s an Planning Intern Lisa Str eb ch l.,
There were approximately 20 persons in the audience,f
II. MINUTES
J
I
The Minutes of the Committee of the Whole meeting of
July 10, 1984, were accpeted and filed.
III. CITIZENS TO BE HEARD
im
There being no ci izens to be heard at this t e, the
Board moved on o the next Agenda item.
IV. DOWNTOWN REDEVELOPMENT PLAN
Mayor Krause reviewed with the Board a memo prepared by '
staff on Tax Increment Financing and summarized the s, Latus
of a Study currently being completed by the consulting
firm; of Trkla , Pettigrew, Allen & Payne. Community
Development Director Ken Fritz introduced Mr. Nick T rkl a ,
of the consulting firm, who would be addressing the Board
on the basics of Tax Increment Financing and Mr. Jack
Pettigrew, who would further explainthe e i`hanics Of
Tax Increment F��.nanc ing and the eligibility study; which
i s currently y under way.
Mr. Trkla presented an overview of ax Increment Financing,
explaining that the financing t e chni ue orifi nated w3I t
State legislation passed in 1978. To date, over 2,0
commun throughout Ill*no*s have ut*l*zed Tax Increment
inane 0
ng and several other communities are currently
considering using this technique,
Trus,tee Farley asked about the boundaries of a TIF
D 0, . 0
is,t,rict, and asked if the Tax Assessment for the
entire area would be frozen. Mr. Trkla stated that
Oe
larger TIF Dis tril
cts end thlems elves to
o mre flexibl l 1 ty
and allow more private deve'l'o'lipmeet potential, while
smaller areas allow the c:pmpunity to focus on target
areas. Further, concerns about frozen Assessments for
j .0# -*It 0a large area may not be ustitiect since average Equa'lized
Assessments in these areas typically have not risen
substantially in the past. Also, redevelopment 'in one
portion of a larger District may stimulate development
throughout the area, thus increasing the Increment
avaiiable to repay the Bond.
Trustee Farley asked what the typical period of time
would, be for repayment of the Bonds, Mr. Trkla stated
that -the statuatory limit is 23 years, however inaan"
ko Is 11af
projects require consierably less time for repa"Metat,
Mr. Trkla also emphasized the need for proper cash
management and stated that TIF financing requires that.
a developer be brought 'Into the process early on to
ensure the success of a project. Trustee Arthur quest *
i ioneld
some of the findings of staff in regards to deter' orat3Lo'n
in certain blocks of the downtown area, Mr. Fritz briefly
outlined the criteria and procedures utilized by staff
in m,a I King these determinations and noted that the surveys
were completed by a Code Enforcement Inspector and an
architectural intern. Mr. Pettigrew added that there is,
a distinction between deterioration aria aiiapiaation with
0 " . 0 It 0 W .
the for m,e',�X' being re iativeiy minor maintenance problems,
0 #
as observed from the exec of the bu*ld* Interior
01 a i ing.
inspections of properties would be needed before a final
redevelopment plan could be adopted.
Several questions were fielded from members of the audience
which included members of the Village's Plan Commission
and Board of Downtown Development and Redevelopment
Commission. Mr. Louis Velasco asked several questions,
regaraing what incentives a developer would receive to
initiate a redevelopment project. Mr. Trkla explained
that it depends on the nature of the redevelopment proJect,
and added that incentives are proviaea only to the extent
necessary to make a project economically feasible.
Responding to a question regarding sources of "up front""
money, the consultants explained several alternatives to,
ensure good cash flow and emphas ized the advantages of
this "developer oriented" technique.
-3.
1
Maxtor Krause suggested that the staff.��.,nves ti ate potential
new sources of funding and present an Ordinance to the
Board at a future date to authorize the adds tional funding
Mayor Krause also asked that the Board be kept advised
as to new applications and projects completed.
VI OTHER BUSINESS
Trustee Wattenberg offered his thanks to Pat Luehring for
his Press Release on the hiring of Nancy Morgan in the
Semon Center and stated that such preys releases are
extremely helpful.
VII. ADJOURNMENT
'""here being no further business, the meeting was as ' ourned
Respectfully submitted,
TER NCE L. BURGHARD
Village Manage:"""'
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