HomeMy WebLinkAbout6.5 Monthly Financial Report - October 2020c" t
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Item %Cover Page
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Subject Monthly Financial Report - October 2020
Meeting - REGULAR MEETING OF THE MOUNT
CategoryPROSPECT VILLAGE BOARD -
AGENDA
AttachedType Consent
Information
is the Monthly Financial Reportfor - month of October -2020.
StaffAlternatives
1. Accept the Monthly Financial Report for October -2020.
2. Action at the discretion of the Village Board.
Recommendation
Accept•nthly Financial Report forOctober 2020.
ATTACH M E NTS:
Monthly Report Oct-2020.pdf
1
VILLAGE OF MOUNT PROSPECT
MONTHLY FINANCIAL REPORT
OCTOBER 31, 2020
Prepared By
Amit Thakkar, CPA
Director of Finance
TO: VILLAGE PRESIDENT, BOARD OF TRUSTEES, AND FINANCE COMMISSION
FROM: AMIT THAKKAR, DIRECTOR OF FINANCE
DATE: NOVEMBER 24, 2020
SUBJECT: MONTHLY FINANCIAL REPORT FOR THE MONTH OF OCTOBER -2020
In our effort to provide the most transparent and relevant financial information in a timely manner, we are
submitting this report herewith. The report contains relevant data with analytical information for the Village's
current financial affairs. The report is prepared with the help of the most recent available financial
information (internal and external). The report is divided into various sub -sections such as a) Cash and
Investments b) Revenues c) Expenses d) Fund Balance Analysis e) Other items that may contain the
relevant new issues and items representing and impacting the Village's financial interest and well-being.
a) Cash and Investments
Village of Mount Prospect maintains sufficient liquid cash balance at various banking and investment
institutes for the smooth operation of the Village's day to day operation. The remainder of the liquid assets
are invested in multiple interest-earning accounts and investment options permitted by the Village's
Investment Policy. As of October 1, 2020, the beginning Cash and Cash Equivalents totaled at $67.3 million.
During the month of October, Village received cash receipts totaling $8.1 million. The investment income
for the month totaled $917. The payroll cost for the month was $2.3 million, and accounts payable were
paid in the amount of $5.2 million. The inter -fund activity increased the cash position by $8,900, while other
disbursements totaled $20,709. As of October 31, 2020, the Village's Cash and Cash Equivalents totaled
$67.9 million.
GOVERNMENTAL AND ENTERPRI "E FUND "
Cash and Cash
Eq a ivateint.s
Balance, at: S1elptembeir 307 2020 6773 1873 1
p 2 717 �1
Cash r�e�c�e�i �ts� � ��
nvestanent, income, 9�17'
Tra,nsfe,rs from invelst.mil nts to cash _
Tra,nsfe,rs to investmeint.s from c ,sh _
Inter -fund activity 879100
D1sburseiment.s
Accounts playable, (5,716,27"418)
Payroll (2732179 16)
Ot.heir (207709)
Total Cash and
nvestmeints Inveistments
5179,43171315, 7317"26,17"4531
_ 7 2 ,7171
(17 '26) 017008
879100
_
(5,716,27"418)
_.
('2731,2179,16)
_ (207709
alanc11 at. October 317 2020 $ 6779114 7262 5179,4,17'209 $ 737889.471
The Village has $5.9 million invested in long-term investment options, including US Treasuries and FDIC
insured CDs and investment options. The Cash, Cash Equivalents, and Investment totaled at $73.9 million
as of October 31, 2020. The same amount at the beginning of the month was $73.3 million. Besides the
funds as mentioned above, the Village of Mount Prospect also has $1.3 million in the Escrow Accounts
under the umbrella of Other Trust and Agency Funds.
2
The below table summarizes the Cash and Cash Equivalent by Fund.
Find Details
A Mi G Lint
General FLInd
2'374442'7'1
ecia] RevenUe F'Linds
6N8507841
Debt, Service I"Linds
67758787.
a itaI P"rp sect FLind s
66147376
Enterprise Finds
16728678977
Internal Senice F"Unds
11709,279J99
-Total Cash and Cash E flva.Jent 677948 71112161,,21'
b) Revenues
The below data shows the revenue recognized by the Village from Jan -2020 to October -2020.
II `rip rt . T . �
��
��" � � � � ,2
.7�5
��� �� "���� " �
��.�� �,� . � .
Otherr Tei x es,
13,,59,1,375,
7p, 45,v 3 3 3
57.72%
Sp,812?103.
966,,? 97
Anter �rnnti nu,
O
23,978,,636
.29"
1.F58,SpO8
., 390',55
Licenses,, IIP e rrn iiiit sF &. IIFees,
,p 112p 3,00
2,93 3,,1 5'
'9 .24%
,p 5,Gp 6, ,
(417�,,w 74)
Charges, Ileo r e rvlii �ce s,
34v 3,04v445,
, , � , 679,
81.2.
2.,8,,,p 2.3 Op,8,97
(35,6,? 18
Fines, iF"n rf6iiit s
558,v,55,0
2.85,v 248,
51.07%
407p 150
(12.1,,'9 02.),
II n e strrn e nt IIIncome71?
7 0
"��7,��i50
.? 6310p4 .4
1 , 4 5 u
011t1h e Illiiiiiinanbing,Surces
4,768,1000
, 1,211
72.17%
., 104,86
1 X 47
Other Rev en e
2.v17 ,
1';94
I�.e III rrn a rs,e e nt.
1�,� 7
347, ,139,
a®74
48,8,, 6,66
6
(140,F8,56),
ria nd Total
11,1.�,5151.
&911pO24��51317
',�Wf.519%III
87,F71514�� 713,
1
1,2710p,2164
The above amounts do not represent all the revenues to be recognized for the period under review.
There are certain state taxes, such as sales tax, home -rule sales tax, and a few other taxes will be
received by the Village in November 2020 and beyond. The actual year to date revenue received
by the Village is $89.0 million. The amount includes a transfer in of $3.4 million received by the
Flood Control Construction Fund from the General Fund. The total actual revenues collected at the
same time last year were $87.8 million. The other taxes, license and permit fees, charges for
services, fines & forfeitures, and investment income are trailing behind compared to last year. The
reductions in these revenue sources are attributable to a low volume of economic activities due to
the COVID-19. Increases in the intergovernmental revenues are attributable to various grant
revenues received in 2020. The Village has received House Bill 62 grant for the street programs in
the amount of $1,1897940 and $753,155 in grants from MWRD for Phase I Levee 37 project. The
Village has also received grants for census programs and a COVID-19 grant from the Health &
Human Services. The Village also received $502,578.25 from the Cook County as Cares Act Relief
Funds during the month of October -2020. The additional grant revenues are offsetting the revenue
losses from the COVID-19.
During the month of October -2020, the Village has received the following revenues from the State,
which belongs to the period prior to the October -2020. These amounts are distributed after the
State admin fee deductions of $8,051.
3
t e Sa I e s. Ta x
Ju -u
- 2.0
Oct- 2.
.91 6,9
am eru a es Tei
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u 7
r nd Tots I
2�,5111611F&68
Property Taxes: - The Village's total levy for the year is $19,469,004. The total property tax revenue
budget, including TIF revenues, is $19.95 million. The Village has received property taxes totaling
$19.9 million through YTD Oct -2020, which equals to 99.7 percent of the annual budget. The
property tax revenue collection was trailing behind by $1.47 million till Sep -2020. With the recent
collection of property taxes in Oct -2020, the Village has collected 98.7% of the annual levy amount
totaling $19.0 million, the remainder of the collection amount ($919,696) belongs to Prospect &
Main TIF. With the most recent available collection data, it is safe to conclude that there will not be
any major property tax revenue loss due to COVID-19.
Other Taxes: - The category of Other Taxes includes all the taxes enacted per the local ordinances
and includes Home -rule Sales Tax, Hotel/Motel, Food and Beverage, Municipal Motor Fuel Tax,
Utility taxes, etc. As some of these taxes are collected by State, there is a three month lag between
the actual sales and the remittance of the tax. Through YTD Oct -2020, we have collected $7.8
million in other taxes. The total YTD collection is trailing behind by $966,697 compared to the
revenues collected at the same time last year. During the month of Oct -2020, the Village collected
$1,020,754 in other taxes. This category is expected to have a revenue loss of $1.3 million due to
COVID-19, and the staff is monitoring the revenues as well as the factors impacting the revenue
closely.
Intergovernmental: - This category includes all the State shared taxes, including State Sales Tax,
Income Tax, Use Tax, Motor Fuel Tax, and Grants. Through YTD October -2020, revenues received
under this category are totaled at $24.0 million, while at the same time last year, the total revenue
received was $21.6 million. The State of IL HB 62 grants, MWRD grant for the Levee 37 Phase I,
and Cook County Cares Act Relief Funds grant are the main reasons for the increases in the
intergovernmental revenues. The intergovernmental revenues are the most impacted category due
to the COVID-19 and are expected to have a loss of $1.7 million. The Village is estimated to have
a sales tax revenue loss of $1.38 million due to COVID-19. The Village has tracked the sales tax
loss of $1,092,781 through YTD Oct -2020. There are a few revenue sources, which have
outperformed even in the COVI D-19 environment. The Village's Year to date income tax revenue
collection was trailing behind by $437,695 during the first half of the year, but the Village has
received a higher allocation than expected during Oct -2020. The YTD Oct -2020 income tax
revenue is $83,075 higher than YTD income tax revenue at the same time last year. The Village
has already collected 97 percent of the budgeted income tax revenue for the year through October -
2020. At the same time, the Use tax revenue is trailing higher by $315,803 compared to the amount
collected at the same time last year. The outperforming income tax and use tax revenue will help
in reducing the COVID-19 related losses.
License & Permits: - The collected revenue under this category totals $2.9 million, which is trailing
behind by $417,574 compared to the YTD revenue at the same time last year. The extension of
the due date for displaying the vehicle stickers as well as reductions in the collection of Building
Permit fees compared to the last year is the main reason for the shortfall in the category. During
the month of Oct -2020, the Village has collected a total of $171,129 in the License & Permit fees,
a reduction of $184,333 compared to the amount collected in Oct -2019. During Oct -2020, the
4
Village collected $58,665 in building permit fees, while at the same time last year, the building
permit fees were collected in the amount of $240,819. Though the building permits revenue is
trailing behind compared to the 2019 collection, the Village has collected 109 percent of the annual
budgeted revenue amount for building permits through YTD Oct -2020. The Village has waived 50%
of the liquor license fee due to COVID-19, which results in a short fall in the collection by $80,000.
The Village is also trailing behind in the vehicle sticker fee collection by $125,600 compared to the
last year, and have collected 85.3 percent of the annual budgeted revenue amount.
Charges for Services: - The YTD revenues recognized under this category total at $28.9 million
and included water/sewer charges, refuse fees, and parking permit fees. The amount recognized
is $356,218 lower compared to the amount recognized through YTD Oct -2019. The reduction in
the reported revenues are experienced due to the timing issues with the billing dates. In fact, the
revenues under this category are trailing higher compared to the revenues recognized at the same
time last year (except parking revenues). The Village has increased the ambulance billing fees in
2019. The Village has collected $1,227,580 in ambulance fees through YTD Oct -2020. The
collected amount is trailing higher by $329,614 or 36.7 percent. The Village has already collected
96.3 percent of the budgeted revenue for the year. The Village does not balance bill Mount Prospect
residents and accepts the payment received from the medicare and insurance providers as full and
final settlements for the ambulance billing claims. The Village does balance billing for the
ambulance services provided to non-residents.
Other Categories: - All other revenue categories have collectively generated $6.5 million through
YTD October -2020. The amount recognized through October -2020 has decreased by $293,039
compared to 2019, mainly due to a decrease in the investment income and reimbursements.
c) Expenses
The below data describes the expenses incurred during the months of January 2020 to October
2020.
1110 IIPub][ic Rep,resentllat]ii o n
71 1v 61 2.317,
6.
2.3 9 114
33.6
2.0 liiii11 i,e d iiiii n iiiii s rat liiii o n
766,; 6
, 24 2., 61 10
618.0%
II IIFinance
., 103,953
.' V° , ' VI V,
, 6162,005,
79.0%
40 o u n liii y e e o e n
R 6125,414
6
p l,6
73.7%
50 Humanerliie
. ,,82,
1 2.1 040
944, 640
78.8
60 o ilii e
31 619jj 2,7 7
1,971 6180
2.61? 9 75, 7
85.
70 S iiiii re
2.Q? 855, 1,56
" ? R�,539j
I 6, 9 3 2,455
81 . .
90 P a b I ii c Work62,401,
764
3,8
41, 6 198,
6161.7%
2 6
.7
nT
1. 5131,1111438,911111401.
II
131,
1 51,1011IF1,690
71.8%,
The above amounts do not include the expenditures for the Pension Funds as they are separate entities.
The data shows the Departmental Expenditures for the month of October -2020 as well as year to date
amount from January 1, 2020, to October 31, 2020. The Department of Community Development is showing
the total expenditure of $4.9 million, which includes the property acquisition of $1.3 million in the Prospect
& Main TIF Fund and $1.08 million in developer's reimbursement for Storm Sewer expenses. The Police
Department and the Fire Department YTD expenditures are higher due to the Pension Expenditure
recognition, which equals to the total pension levy received. The amount recognized is employer
contributions (the Village's expenditure). The same amount is recognized by the Pension Funds as income.
5
IIIA a sI o, e
.I. .I.
u 7
R .I 72.3
BOA%
;e ry i ce s,
3 2.76125,
39,9 7370.4%
i e s,
2,p7 9j
1, 69 5,,, 5, 18,
61.5%
sII IImprovement's,
IR 7 .pV78,
72.5%
e bt, S, a ry Illii c eSII
.i ,,.
��� � 762,838,
.7® %
Oil e r Ex pe n d Illii a re sIIVII,
,393,000
87®7°I
riia n Tota
1531, I�
I uJ
"11.8%1
Personnel Costs: - The Personnel costs spending is on track compared to the budgeted amount. We have
spent 80.4 percent of the total budget through YTD October -2020. The year to date expenditures for
Personnel Costs, including benefits, are $40.5 million. We are hopeful for a positive variance in this category
and are expected to spend around 98.0 percent of the budgeted amount during the fiscal year 2020. The
YTD overtime costs are $1,399,009, while the overtime costs at the same time last year was $1,898,396.
Services: - This category covers the majority of the contractual services that include some large line items,
including JAWA water purchase, budgeted and grant funded Engineering studies, and other contracts. The
year to date expenditure is $25.4 million, and the Village has spent 70.4 percent of the budgeted amount
year to date. The Village is expected to see a positive variance and savings in this category due to the
cancellation of various Village sponsored programs.
Supplies: - The Village has spent $1.7 million in supplies through YTD October -2020. The spending totals
around 61.5 percent of the approved budget. The Village is hopeful to see a positive Budget vs. Actual
variance at the end of the year due to the mild winter and lower fuel prices.
Capital Improvements: - The major capital projects, including Police and Fire HQ, are completed now.
The construction of the Maple Street Parking Deck is also completed. The YTD spending for capital
improvements is $36.7 million. While various capital projects on track, multiple capital projects totaling $3.4
million are postponed due to the revenue loss caused by the outbreak of COVID-19. These projects are
expected to resume in 2021.
Debt Service: - Per the established debt service schedules, the Village's bond payments are due on June
1 and December 1. The YTD debt service expenditures are $2.7 million. The remainder of the debt service
payments are due on December 1.
Other Expenditure: - The Other Expenditure includes the transfer out from the General Fund to the Flood
Control Construction Fund, Capital Improvement Funds, and Street Construction Fund. Due to COVID-19,
transfer to the Capital Improvement Fund is postponed while the transfer to the Street Construction Fund
will be reduced. A major transfer of $3.39 million for the Levee 37 Flood Control project is executed through
October -2020.
d) Fund Balance Analysis:
The fund balance is an essential tool to check the fiscal health of any Governmental organization. The
below data defines our monthly unassigned/unrestricted General fund reserves. The balance starting
January 1, 2020, are unaudited.
0
Revenues - Unaudited 12,076,917 1,069,601 2,886,546, 7W747µ392 3µ576a801 3,35,,0,8,53 3,083,371 5W396µ463 7µ8,31,8;24 3,637,345 5,175,8,76
Expenses- Unaudited diiiited (7,034µ3 '9) (2,663µ438) �4µ454W650) �6,W 63µd,53) (4,5 ,172) (6,998,597) �3,6,0,3d8) (4,56,8,357) (5,058,669) �3,724W735) (4,978W300
Net Monthly Su rpi u s,,/(D�efk1t) 5.,042.,528 (1,593,837) (1,5 9,104) 893.,939 (67P371) (3,647,744) (524.,97`7) 828.µ106 2,763p15,5 (87, 3910) 197.,576
Beginning Unrestricted Res,erVE 18,027,136 22,914,986, 21,321,149) 19,753,045, 20,646,984 19,679,613 19,424,&59, 18,839,8' )2 19,727,99S 22,491,153 22,403,76,3
As % of General (Fund Budget 29 25% 2 7% 33 32% 31% 30 32% r 35% 3G 3G
*Unaudited and Subject to Change
For the above analysis, the unrestricted Fund Balance is reduced by $3.4 million for the Levee 37
project commitment (January to April only). Through YTD Oct -2020, the Village has executed a transfer
of committed fund balance of $3.4 million, and that has eliminated the need to adjust the fund balance.
At the beginning of the year, the Village is carrying $17.4 million in unencumbered cash and cash
equivalents, while the unassigned Fund balance is $22.9 million. The un -encumbered cash balance is
the actual Cash Balance reduced by outstanding Accounts Payable at the end of the month. The gap
between the Unassigned Fund Balance and the unencumbered cash balance narrows as the year
progresses. The payment received from the State for 2019 taxes and the property tax received in
March -2020 and August -2020 narrowed the gap between the Fund Balance and unencumbered Cash
Balance. The gap between Cash Balance and Fund Balance is expected to widen in the upcoming
months due to the revenue losses caused by COVID-19. The delayed and reduced taxes will deplete
the unencumbered cash and fund balance. The current estimate is projecting the year-end fund balance
at $19.4 million or 32.0 percent.
The Village is experiencing the loss of revenues due to the COVID-19, and it will impact the Fund
Balance. To reduce the impact of the COVID-19 on the Fund Balance, the Village leadership team has
worked on a plan based on the contingency plan in place. The Contingency Plan defines the steps,
including deferment of capital projects, suspension of internal vehicle lease payments, instituting a
freeze or reduction in commodity, contractual services & supplies, review of programs and services
provided as well as the staffing analysis. The Village has frozen and postponed certain operational and
capital items. The Village is in strong financial health and the implemented contingency plan represents
a fiscally responsible step.
The below data shows the sales tax loss tracking due to the COVID-19. As of the date of the report, we
have already experienced a loss of $1,285,961 in sales taxes (State sales tax + home -rule sales tax)
and are expected to experience an additional loss of $340,198 for the remainder of the year. But, a few
outperforming revenues including Income Tax and Use Tax will reduce the impact of the Sales Tax
loss. Also, the property tax collection through Oct -2020 has reached to the 98.7%, which was trailing
behind by 7 percent before October -2020. The outperforming collection in the month of October -2020
has closed the gap for the property taxes. The Finance Department is in the process of revising the
loss projection and will publish the revised loss projection soon. Based on the recent revenue collection
data, the loss projection is expected to be reduced and that may allow the Village to execute some of
the internal vehicle lease payments for the year 2020, and a debt service transfer of $1.1 million for the
Police and Fire Building Construction Bonds, to be abated in coming years.
7
e) Other Items:
a. The Village has submitted an application to the Cook County for an additional $12,000
Cook County Cares Act Relief Funds.
b. The Finance Department is in the process of filing annual levy, budget, abatements and
other required statutory documents with the Cook County. The final version of the approved
budget will be produced in December -2020. The Village Auditors from Lauterbach & Amen
are expected to start the preliminary audit work in December -2020.
c. As of the date of the report, the Village has sold 34,558 vehicle stickers and has collected
$1,388,873. At the same time last year, the Village had sold 37,644 stickers and collected
$1,507,357. The due date to buy the vehicle sticker was extended due to the COVID-19
and has resulted in a lower volume of sales and collected amounts.
d. During October -2020, the Village has issued 170 real estate transfer tax stamps, of which
67 are issued as exempt stamps, and 103 are non-exempt. During October -2020, the
0
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e) Other Items:
a. The Village has submitted an application to the Cook County for an additional $12,000
Cook County Cares Act Relief Funds.
b. The Finance Department is in the process of filing annual levy, budget, abatements and
other required statutory documents with the Cook County. The final version of the approved
budget will be produced in December -2020. The Village Auditors from Lauterbach & Amen
are expected to start the preliminary audit work in December -2020.
c. As of the date of the report, the Village has sold 34,558 vehicle stickers and has collected
$1,388,873. At the same time last year, the Village had sold 37,644 stickers and collected
$1,507,357. The due date to buy the vehicle sticker was extended due to the COVID-19
and has resulted in a lower volume of sales and collected amounts.
d. During October -2020, the Village has issued 170 real estate transfer tax stamps, of which
67 are issued as exempt stamps, and 103 are non-exempt. During October -2020, the
0
Village collected $98,169 in real estate transfer tax, and the average selling price for the
real estate was $314,242. At the same time last year, the Village sold 127 transfer tax
stamps, of which 52 were exempt, and 75 were non-exempt. The Village collected $58,470
in Oct -2019, and the average selling price was $259,800. The year to date collection for
the year 2020 is $789,968, while at the same time last year, the total collection was
$1)0273926.
Conclusion
The Village is currently in a healthy fiscal condition. The Village is facing short-term challenges due to
COVID-19, but the strong tax base and diversified income sources are helping the Village in achieving
short-term and long-term goals. The Monthly Financial Report attempts to draw a transparent picture of
Village's monthly financial activities and also provides relevant updates concerning the fiscal health of the
Village. The month of October -2020 shows a steady recovery from the COVID-19, and we are hopeful of
collecting normal monthly revenues in the coming few months. The approved 2021 budget includes impacts
of COVID-19 in some revenue line items, but the current cash and fund balance positions are capable of
supporting the Village's current long-term and short-term goals. If you have any questions or concerns
about the report, please do not hesitate to contact me.
Respectfully Submitted,
Amit Thakkar
Director of Finance
9