HomeMy WebLinkAbout01/28/2021 FC AgendaVILLAGE OF MOUNT PROSPECT, ILLINOIS
FINANCE COMMISSION
AGENDA
Thursday, January 28, 2021
7:00 p.m.
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I. Call to Order
II. Approval of Minutes
a. October 22, 2020
Ill. Citizens to be Heard
IV. Old Business
V. New Business
a. Selection of Vice -Chair
b. Selection of Secretary
c. Discussion on 2021 Work Plan
Vi. Any Other Business
VII. Chairman's Report
VIII. Finance Director's Report
a. Financial Update — Monthly Report (Nov) and COVID- 19 Loss Tracking.
IX. Next Meeting: Thursday, February 25, 2021, 7:00 p.m.
Venue — TBD
X. Adjournment
NOTE: Any individual who would like to attend this meeting but because of a disability needs
some accommodation to participate should contact the Office of the Director of Finance at 50
South Emerson Street, Mount Prospect, (847) 392-6000, ext. 5276.
IV.
FINANCE COMMISSION MEETING N.ur
MINUTES
Thursday, October 22, 2020
Police Department Headquarters
911 E. Kensington Road, Mount Prospect, IL 60056
Call to Order
Meeting called to order at 7:00 p.m.
Commission members present: Kenneth Arndt, Yulia Bjekic, Trisha Chokshi, Vince
Grochocinski and Tom Pekras.
Staff present: Director of Finance Amit Thakkar, Assistant to the Director of Finance
Jennifer Fitzgerald and Assistant to the Village Manager Alexander Bertolucci.
Approval of Minutes
a. Commissioner Grochocinski, seconded by Commissioner Arndt moved to approve the
minutes of the Finance Commission regular meeting of September 24, 2020.
Chair Chokshi called a voice vote.
Motion Passed unanimously.
Citizens to be Heard
None.
Old Business
a) Operating Budget - 2021
Director of Finance Amit Thakkar provided additional information in response to
questions asked during the Joint Village Board and Finance Commission Special
Workshop meeting on October 13, 2020. He also provided an overview of a few
changes to the budget.
• $2,500 from the Sister Cities Commission budget was removed from Public
Representation.
• Mr. Thakkar shared a total cost of service report, which includes assumptions for
home value, vehicles owned, spending, and more. On average, the total cost for
services for 2020 is $3,089 per household, which will increase by $102 for 2021.
• 2019 overtime for Police, Fire and Public Works totaled $2.3 million. The 2020
budget estimated $2.4 million in overtime, but staff is now forecasting $1.7 million
due to COVID-19 related cancelled events. Year to date is $1.3 million. The 2021
budget for overtime is $2.3 million for Police, Fire and Public Works.
• Property tax collection was 98% last year at this time and 93% this year, which
is $1.4 million less than last year. One of several factors playing into this is the
August due date being delayed to October.
• Mr. Thakkar presented the 2020 Property Tax Distribution "Dollar Bill".
• He reviewed the 2017 Water and Sewer Rate Study and its outlined rate
increases to achieve a 130 years water main replacement cycle.
• The refuse rate held flat for five years (2016 — 2020).
• Solid Waste Agency of Northern Cook County tipping fees change based on the
agency's budget, which influences the Village's refuse program costs. In
Finance Commission
Page 1 of 3
10/22/2020
addition, the Village has an unlimited yard waste program (no yard waste
stickers) and our own leaf collection program.
• The property owner receives the refuse bill for multi -family units.
• Reviewed savings from reducing two positions through the re -organization of two
departments. In addition, staff continues to look at cost vs. benefit of particular
programs to gain further efficiencies.
Staff provided the following in response to comments from the Finance Commission:
• There is one volumetric rate for water and sewer for residential and commercial
properties. Rates are comparable to other Northwest Suburban Joint Action
Water Agency (NSJAWA) communities.
• The water rate is based on administrative fees, cost of water from Chicago,
fixed infrastructure costs, and debt service.
• The Water and Sewer Fund is an enterprise fund. The Refuse Fund is currently
a special revenue fund and the revenues are restricted for refuse uses only.
Staff will be proposing to change the Refuse Fund to an enterprise fund since
revenue sources are fees charged to users.
• A 2% property tax increase for an average home would be $17 more.
• The refuse rate had planned increases since 2017; however, rates did not
increase because there was available fund balance to abate the increase.
• The refuse rate increase would bring the rate in line with the actual cost of the
service.
• It would not make sense to transfer funds to support the Refuse Fund (special
services fund) unless it is in complete distress. Without the rate increase, there
would be a gap of about $300,000 or more and the fund balance would not meet
the fund balance policy.
• In 2015-2016, the corporate category of the property tax levy changed to police
and fire protection. Improved transparency regarding use of funds since the
corporate levy was for police and fire protection.
• The pension and debt service levies are fixed. Debt service is abated with
general fund — extra revenue sources.
• Explained triennial assessment impact to resident property taxes.
• 70% of utility bill payments are submitted by check. Mr. Thakkar explained the
customer services and operational benefits of the recently approved kiosk
payment system.
• Reviewed each departments overtime costs.
b) Recommendation to the Village Board
Motion to adopt the budget as presented with a recommendation for any future user
charge increases should be in line with the annual increase in the program costs.
Motion by Commissioner Bjekic, second by Commissioner Arndt.
Yea: Kenneth Arndt, Yulia Bjekic, Trisha Chokshi, Vince Grochocinski and Tom
Pekras.
Motion Passed
V. New Business
None.
Finance Commission Page 2 of 3 10/22/2020
VI. Any Other Business
None.
VII. Chairman's Report
None.
VIII. Finance Director's Report
a) Financial Updates
Director of Finance Amit Thakkar provided an overview the Monthly Financial Report
for September 2020. He reviewed revenues collected compared to 2019, 2020
expenses after the revised budget, and a fund balance analysis. COVID-19 revenue
losses are less than projected.
There was a general discussion regarding funding and grant opportunities for the
Aspen Trails Park Stormwater Project.
IX. Next Meeting:
Commissioner Bazan, seconded by Commissioner Grochocinski moved to approve to
cancel the regular meetings of the Finance Commission scheduled for November and
December.
Chair Chokshi called a voice vote.
Motion Passed unanimously.
X. Adjournment:
Motion by Commissioner Arndt, seconded by Commissioner Pekras, to adjourn the
meeting.
Chair Chokshi called a voice vote.
Motion Carried unanimously.
The meeting adjourned at 8:48 pm.
Alexander Bertolucci
Assistant to the Village Manager
Finance Commission Page 3 of 3 10/22/2020
VILLAGE OF MOUNT PROSPECT
MONTHLY FINANCIAL REPORT
NOVEMBER 30, 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: DECEMBER 23, 2020
SUBJECT: MONTHLY FINANCIAL REPORT FOR THE MONTH OF NOVEMBER -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 based on the most recent available financial information
(internal and external). The report is divided into five sections including a) Cash and Investments b)
Revenues c) Expenses d) Fund Balance Analysis and 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
institutions for the smooth operation of the Village's day to day activities. The remainder of cash assets are
invested in multiple interest-earning accounts and investment options in accordance with the Village's
Investment Policy. As of November 1, 2020, the beginning Cash and Cash Equivalents totaled $67.9 million.
During the month of November, the Village had cash receipts totaling $7.6 million. The investment income
for the month totaled $4,154. The payroll cost for the month was $1.5 million, and accounts payable were
paid in the amount of $11.9 million. The inter -fund activity increased the cash position by $4,643, while
other disbursements totaled $10,601. As of November 30, 2020, the Village's Cash and Cash Equivalents
totaled $62.1 million.
GOVERNMENTAL AND ENTERPRI SE FUNDS
Cash n,,d Cash
Equivalents
Balance at: October 3117"2020 677948,262
Cash relcielipits 776397362
Invelstment, incom1e 47164.
Transfers from investments to cash _
Transfers to invelstments from cash _
Interfunld activity 4,76,431
D1sburseement,sa
Accounts payabl11 (117 95,7 15)
Payroll (1 76,45 474)
Oth11ir ( 107601 )
Total Cash and
Investments Investm1nts
5,791,417"209, $ 737869747 1
_. 776,397362
(1 773 2737 1
_.4,76,431
_. (1 1789°67815)
_
(175,457,474)
Balance, at Neveimbaer 307 2020 6271447631 1 6791,39426 68706379'67
The Village has $5.9 million invested in long-term investment options, including US Treasuries and FDIC
insured CDs. The Cash, Cash Equivalents, and Investments totaled $68.1 million as of November 30, 2020.
The same amount at the beginning of the month was $73.9 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 Equivalents by Fund.
I"Und Details
A M G U n t,
Genera,I I"Lind
$ '37 4,214,71129
S eda] Rev'enUe Rinds
574877156
Det Senice I"Unds
179947531
rn sect FLInd s
n ita] Pro,'
6173,,21374,31
Enterprise Rinds
147 1 47 1
Interna] Senn ce Rinds
1 178 74
Tntn;J a, s end a, s EII�IivInt
$ 144 31
b) Revenues
The below data summarizes the revenue recognized by the Village from January 2020 to November
2020.
Il rro p e rty T�axesi
9,955, 59
19,899,1097
99.72%
19,, ,16
54,93
Otherr Taxes
1,3,591,3 75
9,1015,815
66. 3 3%
110,1 3,1
1p1 7p 3 24),
Ilnterr�governmental Revenue
3 6p 723,p800
28,,2.86,475
77.102%
5,,'9 ,4
2,350,1007
Licensiesif IlRe rr liit s, . IIFees,
1 ,
,990, 785,
916.10%
3, 1 7, 8,
(416J93),
Char ge s IIF o rr err iii ce s
34,,3104,,445,
30,375, 1.
88.55%
2.915,00? 627
4,p 705,
Fines, e . IlForfeits,
558,p550
.4,p 9 79
5,8. 1
4 p 5 5,
1101,595
IIn vest enrrt:Income
Investment "
671p70
407P9,85,
50.741
1,,p 742,p 18
1p 3 34,p u
Otherr IlFiiinaniliin g S au rce si
4p758,;G00,
,4 ' ,,9, 9,
72.15
11,,974, 795,
'y5 4p8,,0
Otherr Reve n ue
2,178,10010
2.p148,,p8'9,7
918.
78,p . 1
9,p3, 4
Reimbursements
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
1,1,, , 7
390,81.5
99.7. .....................................................................................................................................................................................
1,, 79
(130p9,82.)
G ria nd T,otia 1
11.E 2,5151,.�466
97.� �.� 1169
831.'%�,
1:� 905,51,27"
(7., 5,j 31 °91'
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, that
will be received by the Village in December 2020 and beyond. The actual year to date revenue
received by the Village is $97.3 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 $104.9 million, including bonds issued for the TIF projects. The
other taxes, license and permit fees, fines and 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 $1,189,940 and $753,155 in grants from MWRD for
the Phase I Levee 37 project. The Village has also received grants for census programs and a
COVID-19 grant from the Health and Human Services. The Village also received $502,578 from
Cook County as Cares Act Relief Funds during the month of October -2020. The Village is also
expected to receive additional $12,000 in Cares Act Grants from Cook County and $80,879 in
Emergency Assistance Grants from FEMA.
3
During the month of November 2020, the Village received the following revenues from the State,
which relates to a period prior to November 2020. These amounts are distributed after the State
administrative fee deductions of $8,627.
Matte Sa 1 e si Tax
A, ug- 2.0
IIN ov ��-2.0
IIN ov 2.0
1,935,000
o m eruVIIIe SaVIIIesTa x
A, ug- 2.0
IIN ov' 2.0
IIN ov 2.0
49,8,504
Bu 11ness Diiiiistriiii 't Ta
qg 2.
II ov-2.
II ov_2.
2.Qp441,
Auto entta Tax
qg
II ov_2.
II ov_2.
2.x '2.
Te ecom Tax
A, ug- 2.0
IIN ov ��-2.0
IIN ov 2.0
1 21
Griiand Tota I
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 November 2020, which equals to 99.7 percent of the annual budget.
The property tax revenue collection was trailing behind by $1.47 million until September 2020. With
the recent collection of property taxes in October, 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.
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 the State, there is a three month lag
between the actual sales and the remittance of the tax. Through November 2020, the Village has
collected $9.0 million in other taxes. The total YTD collection is trailing behind the revenues
collected at the same time last year by $1,167,324. During the month of November 2020, the Village
collected $1,170,481 in other taxes. This category is expected to have a revenue shortfall 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 Revenue: - This category includes all the State shared taxes, including State
Sales Tax, Income Tax, Use Tax, Motor Fuel Tax, and Grants. Through November 2020, year to
date revenues received under this category totaled $28.3 million, while at the same time last year,
the total revenue received was $25.9 million. The State of IL HB 62 grants, MWRD grant for the
Levee 37 Phase I project, and Cook County Cares Act Relief Funds grant are the main reasons for
the increases in the intergovernmental revenues. The intergovernmental revenues are also
impacted due to the COVID-19 and are expected to have a shortfall of $1.7 million. The Village is
estimated to have a sales tax revenue shortfall of $1.38 million due to COVID-19. The Village has
tracked the year to date sales tax loss of $975,746 through November 2020. There are a few
revenue sources which have outperformed even in the COVID-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 the third quarter of 2020.
The year to date income tax revenue through November 2020 is $114,946 higher than year to date
income tax revenue at the same time last year. The Village has collected 105.0 percent of the
budgeted income tax revenue for the year through November 2020. At the same time, the Use tax
revenue is higher by $416,261 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 $3.0 million, which is trailing
behind by $416,793 compared to the YTD revenue at the same time last year. The extension of
4
the due date for displaying the vehicle stickers as well as reductions in the collection of Building
Permit fees compared to the last year are the main reasons for the shortfall in the category. During
the month of November 2020, the Village collected a total of $57,727 in License & Permit fees.
Charges for Services: - The YTD revenues recognized under this category total $30.4 million and
includes water/sewer charges, refuse fees, and parking permit fees. The amount recognized is
$874,705 higher compared to the year to date amount recognized through November 2019. The
increase in the revenues are mainly attributable to annual increase in the water/sewer charges per
the 2017 water rate study.
Other Categories: - All other revenue categories have collectively generated $6.7 million through
November 2020. The amount recognized through November 2020 has decreased by $10.1 million
compared to 2019, mainly due to a decrease in the investment income and reimbursements and
not having any bond issuances in 2020.
c) Expenses
The below data recaps the expenses incurred during the months of January 2020 to November
2020.
.II u0 IIII IIIiI rnaIIIII 7.11 .II;�, �.7.II 9 2.Y0 °�
l
0 V]i I I age A, d m III n III.st, rad' ion 4,,p 766,8,5,6 3 77,5 .I 3p477p8,68, 73.0%
30 Illir (IIII n a n ce 2.,1108 X95 8 1,80,588 1,783 1102:2. 84.7%
40 ounIIIII eve o, a , .II 05,v 782. 73.2%
SII �
0 Human rvIII
60 Pollhice
70 IIIIiiil re
.I X98 818W2.
1 2.11 40
8 1�, 6119 2., 757
Ig,971 ���6118 "0
2.0��� .II ��1
W ��
� , ��1�� 8 9�
,0810,468 16.00/
2.8, 43 2., 8.11 0 819`®7
.17, 9 °, ,, ',9 61 8W 61.1'
8,10 IIID a VIII e r' si
62,401 u 7 64
3,8,95,,,493
44, 87,891,
%
71.1%
X01,0 IINon-Depart " m� l �t a
2.8 2.2.,
8 2.7 X818
u
2. 072.E 88
8,9 ® 6%
yej'
rlla n Tota 1
BVI � lo���� �.
"9��� 22II�.� �I,
I 1 V
�. � VAI �.I6� VIS VIS
Vi iii
■ ���
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 November 2020 as well
as year to date amounts from January 1, 2020, to November 30, 2020. The Police Department and
the Fire Department YTD expenditures are higher due to the Pension Expenditure recognition,
which equals 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
IlPersonnel
50, 3 3 G,. 79
e ry iiiii ce s,
3 61,512,p 2.761
Supp iiiiiesi
2.,,p 755,,p 0491
p iiiiit II VImprov e m e nt sI
50, 6198, 7.5,.
De bt S e ry iiiii ce
061 2.2.
Other Elxpendiitluresi
611
riia nd Tota 1
■ 1.11
III®
61 13 3 55,
8,611®6114
2. 7, A V , 60
76I ® 1%
,834,425,
6 6. 611° :
7, 7 61 61,98,6
74.5%
Iii 1i1i 1y V•1'L'
90®6I
13 000
87.7%
1231��, V 116 31,316
■ 1.11
III®
Personnel Costs: - The Personnel costs spending is on track compared to the budgeted amount. The
Village has spent 86.6 percent of the total budget through November 2020. The year to date expenditures
for Personnel Costs, including benefits, are $43.6 million. Staff is hopeful for a positive variance in this
category and expects to spend around 97.0 percent of the budgeted amount during the fiscal year 2020.
The YTD overtime costs are $1,580,221, while the overtime costs at the same time last year was
$2,075,031.
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 $27.8 million, and the Village has spent 76.1 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 $1.8 million in supplies through November 2020. The spending totals
around 74.5 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, lower fuel prices and cancellation of various Village
sponsored programs.
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 significantly. The YTD spending for
capital improvements is $37.8 million. While various capital projects are on track, multiple capital projects
totaling $3.4 million are postponed due to the revenue shortfalls 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 $9.1 million. The debt service payments due
on December 1 are processed in November 2020. The remainder of the debt service payments will be
performed in December 2020.
Other Expenditure: - The Other Expenditure category includes transfers from the General Fund to the
Flood Control Construction Fund, Capital Improvement Funds, and Street Construction Fund. Due to
COVID-19, the 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 November 2020.
d) Fund Balance Analysis:
The fund balance is an essential tool to check the fiscal health of any governmental organization. The
below data summarizes the Village's monthly unassigned/unrestricted General fund reserves. The
balance starting January 1, 2020, is unaudited.
Revenues - Unaudited 12,076,917 1,069,601 2,886,546 7,747,392 3,576,801 3,350,853 3,083,371 5,396,463 7,831,824 3,637,345 5,175,876 3,387,193
Expenses - Unaudited (7,034,389) (2,663,438) (4,454,650) (6,853,453) (4,544,172) (6,998,597) (3,608,348) (4,568,357) (5,068,669) (3,724,735) (4,978,300) (3,749,609)
Net Monthly Surplus/(Deficit) 5,042,528 (1,593,837) (1,568,104) 893,939 (967,371) (3,647,744) (524,977) 828,106 2,763,155 (87,390) 197,576 (362,416)
(Beginning Unrestricted Reserves 18,027,136 22,914,986 21,321,149 19,753,045 20,646,984 19,679,613 19,424,869 18,899,892 19,727,998 22,491,153 22,403,763 22,601,339
l
As % of General Fund Budget 36% 34% 31% 33% 31% 31% 30% 31% 36% 35% 36% 35%
As % of General Fund Budget 28% 25% 27% 33% 32% 31% 30% 32% 36% 36% 36% 36%
*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 November 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 was carrying $17.4 million in unencumbered cash and
cash equivalents, while the unassigned Fund balance is $22.9 million. The unencumbered 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 payments received from the State for 2019 taxes and the property taxes received
in March 2020 and August 2020 narrowed the gap between the Fund Balance and unencumbered
Cash Balance. The gap between the Cash Balance and the 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 deferral of capital projects, suspension of internal vehicle lease payments, instituting a freeze
or reduction in commodities, 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 shortfall tracking due to the COVID-19. Currently, the Village has
already experienced a loss of $1,133,875 in sales taxes (State sales tax + home -rule sales tax) and is
expected to experience an additional loss of $331,598 for the remainder of the year. However, a few
outperforming revenues including Income Tax and Use Tax will reduce the impact of the Sales Tax
shortfall. Also, the property tax collection through November 2020 reached 98.7%, which was trailing
behind by 7 percent before October 2020. Through November 2020, the Village has collected
$5,525,786 in income tax revenue, which represents 105.0 percent of the annual budgeted amount.
The Village also collected $2,040,685 in use taxes, which represents 136 percent of the annual budget
as well as 25.6 percent growth over the 2019 collection. The outperforming collection through
November 2020 is reducing the overall loss experienced by the other revenue categories. The initial
loss estimate was $5.6 million, which was reduced to $4.9 million in July. The loss is further revised in
early December to $3.2 million.
7
:� IIII ,MIIII :M
e) Other Items:
a. The Village has submitted an application to FEMA for the COVID-19 response cost
reimbursements of $155,815. The Village expected to get 75% reimbursements of the
submitted costs ($116,861). The amount included $112,860 in actual costs and $42,955 in
N95 masks replacement costs. The Village did not purchase the N95 masks in 2020; it was
used from the inventory on hand since 2012. N95 masks were valued at a replacement
cost of $8 per mask. FEMA had requested additional details, and we have provided the
same right away. Initial determination shows the approval of $107,838, and the Village
should be getting 75% of the approved amount - $80,879. FEMA apparently is reimbursing
costs incurred primarily by Fire, Police and Human Services.
b. As of the date of the report, the Village has sold 35,086 vehicle stickers and has collected
$1,405,167. At the same time last year, the Village had sold 37,863 stickers and collected
$1,512,629. 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.
c. During November 2020, the Village has issued 123 real estate transfer tax stamps, of which
8
IDOR
Remaining
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e) Other Items:
a. The Village has submitted an application to FEMA for the COVID-19 response cost
reimbursements of $155,815. The Village expected to get 75% reimbursements of the
submitted costs ($116,861). The amount included $112,860 in actual costs and $42,955 in
N95 masks replacement costs. The Village did not purchase the N95 masks in 2020; it was
used from the inventory on hand since 2012. N95 masks were valued at a replacement
cost of $8 per mask. FEMA had requested additional details, and we have provided the
same right away. Initial determination shows the approval of $107,838, and the Village
should be getting 75% of the approved amount - $80,879. FEMA apparently is reimbursing
costs incurred primarily by Fire, Police and Human Services.
b. As of the date of the report, the Village has sold 35,086 vehicle stickers and has collected
$1,405,167. At the same time last year, the Village had sold 37,863 stickers and collected
$1,512,629. 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.
c. During November 2020, the Village has issued 123 real estate transfer tax stamps, of which
8
46 were issued as exempt stamps and 77 were non-exempt. During November 2020, the
Village collected $103,923 in real estate transfer tax, and the average selling price for the
real estate was $391,361. At the same time last year, the Village sold 93 transfer tax
stamps, of which 32 were exempt and 61 were non-exempt. The Village collected $174,759
in November 2019 and the average selling price was $265,793. The November 2019
included a commercial transaction with selling price of $42.3 million and paid $126,900 in
real estate transfer taxes, which is excluded from the average selling price calculation.
d. The Finance Department has filed annual budget, property tax levy and abatements for
2020 levy with Cook County Clerk's Office in December -2020.
e. Starting January 2021, the Village will have the IRMA insurance coverage with $50,000
deductible per claim. The current deductible is $100,000 per claim. After analyzing the
claims data for last three years, the Village has decided to lower the deductibles from
$100,000 per claim to $50,000 per claim and this step is expected to lower the risk
management costs for the Village.
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. November 2020 shows steady recovery from the COVID-19, and staff is hopeful of collecting normal
monthly revenues in the coming few months. The approved 2021 budget includes impacts of COVID-19,
but the current cash and fund balance positions are capable of supporting 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
A