HomeMy WebLinkAbout4.1 2021 FIRST QUARTER REVIEW - JOINT WORKSHOP WITH VILLAGE BOARD AND FINANCE COMMISSIONItem Cover Page
wubject 2021 FIRST QUARTER REVIEW - JOINT
WORKSHOP WITH VILLAGE BOARD AND FINANCE
COMMISSION
Meeting Apri, 13, 2021 - COMMITTEE OF THE WHOLE -
g• ry DISCUSSION
Type Discussion
Information
Each year the Finance itreview
the preliminary results of opi ior year along with a first
the results of the itst quarter for the current year's budget. The review will cover
followingitems.
• COVID-19 Financial Impact
• FY 2020 - Unaudited
FY 2020 - General Fund - Reserves
Police and Firei i Financials
Ql-2021 - Revenue Analysis
Ql-2021 - Expenditure Analysis
American
LGDF Updates
The 2020 financial data used in the review is unaudited, while Ql-2021 review is
prepared using the available data as of the date of the report. Village staff will
provide a formal presentation of the information.
Alternatives
1. Discuss itst quarter review withillFinance
Commission.
1
2. Action at discretion of Villagei!. •
Staff Recommendation
quarterDiscuss the first • !
ATTACH M E NTS:
Q12021 Review - 04132021.pdf
2
Village of Mount Prospect
Finance Department
First Quarter Financial Review
For the Quarter Ended March 31, 2021
Prepared By:
Amit Thakkar, CPA
Director of Finance
K
1i� rm, of d u imum oo milli
The Finance Department prepares and presents a review of the financial activities for the
most recently ended quarter. This report summarizes the financial activities of the Village
of Mount Prospect for the first quarter of the fiscal year 2021. The report begins with a
fiscal impact analysis of COVI D-19 on Village's fiscal health. This report also provides a
summary of the unaudited financial results for the year 2020 and is followed by unaudited
pension fund financials for the year 2020. The report summarizes the Q1-2021 revenue
and expenditures at a high level and provides an update on a few items of interest
influencing the fiscal health of the Village.
2('11)20 mew
OVI�� mmmll, 19
The year 2020 was an unprecedented year with what the Village faced in terms of
challenges due to COVID-19. The COVID-19 pandemic has caused significant damage
worldwide and the Village of Mount Prospect is not an exception to this. The challenges
were exceptional but the Village of Mount Prospect faced these challenges very gracefully
and the Village was able to weather the pandemic due to its strong tax base and robust
local economy.
The initial forecast for the revenue shortfall due to COVID-19 was projected at $5.6
million, which was gradually reduced to $1.7 million in December 2020. Before offsetting
the outperforming and additional revenues that the Village received during the year 2020,
the gross revenue shortfall for the year is $5.3 million. However, after considering
outperforming income tax revenue (Local Government Distributive Fund, aka LGDF),
State Use Tax, Ambulance billing fees, and Cares Act grants, there is no net loss for the
year 2020. In fact, the Village received $30,768 more in total revenues compared to the
total budgeted revenues for the year 2020. The table below summarizes revenue by
categories with respective revenue shortfalls and surpluses. Some of the budget numbers
4
are adjusted to accommodate receivable adjustments and timing issues.
Revenue sources with the major revenue shortfalls for the year are listed below.
St''atle Sa I e s, Ta x
I v 15,2.�v 453
H o, m e R, u I e Sa I e si Ta x
2.44,962.
HoIII&I/MoIII&I Tax
...................................................................................................................................................................................................................
35,8 647
Ve iii &I e St"Ji ck e r IIFe e s,
...................................................................................................................................................................................................................
2.02,p 143
Re a I Esttle laTri n sif e r Ta x Fe e si,
...................................................................................................................................................................................................................
1612,p 3 13
Food &. Bev erage Tax
...................................................................................................................................................................................................................
129J�A71,
Prope,rity TaIxe,si
...............
F -113
0 2,,r 2:� 76)
�1311,16111FM
1�13,p7l'712
Ot h e, r Tia Ix e,,,si,
1. 31ir,5191 TF �3171,51, ...............
12 25191 7`9191
3, 5, 3, 174)
,2 I%F 5198
1,r, 3, 13, If 5, 76)
I n t e, rigov e, r n nli e, n ta R ev e, n u e,
�13171' 471`�131, 7140 ...............
31,71' 831,51, 2,9r�,31,
(2,�� 085 11
2,p446,p897
316 1 51,51, 31,
Licensie,si Perni & F'e,,e,,,,si,
;31ip 1.12,p';'31,00
31i,pO48,p 1,80
315, 768)
2511�011W
(64,p, 1.20)
H n e,,,,si, & Fo rf e, i ts,
51,59 51,510 ...............
4151i�p,,2091
491 294
14 3 3,14 11)
C harge,sii For.Service,,sii
34 31 04, 44,51,
31,51, 209� 71,52
................................................................................................
(48,5,�P,3164)
TP 3891 1
16 ' 2
7.......
904 P 113
I n v e,,,,siit nii e, n t I nco nii
71' TY 7100 ...............
11644,16 171'
P
3 3114IF 7791)
31071111P,169116
�i 11
(21,117p,0,813)
Re, i nii b�u rsieni e, nts,
3,9 I%F 191 ...............
P 31,
0
5100 4,
(157�v,401)
,216 5, 5106
IP
1
IN p 06
Othe,r Revenue,
,2 1778 000
F � "IF ...............
2�p��13�3191 094,
(1.24�v, 5,06)
2,85, 5190
IP 11
1.61%P084
Olt h e, r F! na nc 1 n g So u ric e,,,,si,
45198 000
"F 11
4 W 015,51,
48 06511,
48 p,06,51,
Tota I R ev e, n u e,sii
I., ..................................................................................................................................
1.1.16 &13,511, 406
P
1 ....................................................................................................................................................................................................................................................
1.1.16 �pg,66 1 71�4
P
3 5 1226)
(5"?, P
51ip 38 1 91,M
30 71168
Revenue sources with the major revenue shortfalls for the year are listed below.
The below listed revenue items outperformed, which offset the above listed loss of $5.4
million.
L4i
St''atle Sa I e s, Ta x
I v 15,2.�v 453
H o, m e R, u I e Sa I e si Ta x
2.44,962.
HoIII&I/MoIII&I Tax
...................................................................................................................................................................................................................
35,8 647
Ve iii &I e St"Ji ck e r IIFe e s,
...................................................................................................................................................................................................................
2.02,p 143
Re a I Esttle laTri n sif e r Ta x Fe e si,
...................................................................................................................................................................................................................
1612,p 3 13
Food &. Bev erage Tax
...................................................................................................................................................................................................................
129J�A71,
Fi n e si .IIS ilii r f e itu re si
19 2,, 6 24
P a rk i n lIIFe e s,
245, 619 3
M u n liiii bi pa I M otllorf u e I Ta x
...................................................................................................................................................................................................................
1,CQPOI,O
Teco m Taxes,
...................................................................................................................................................................................................................
9,846
M o liiii e Th e age r Ta x
...................................................................................................................................................................................................................
92,, 572.
CIDEG Grants,
...................................................................................................................................................................................................................
3 7Q, 9 2. 1
I nt'lle re st III om779
01111h e r Ch areas f or S e rvli ce s,
...................................................................................................................................................................................................................
MQv 3 64
Other 11Prmilii tll' Fees,
...................................................................................................................................................................................................................
113P624
Pror-ty, Tax Ref u n d s, acid Appe a I si
...................................................................................................................................................................................................................
31102,, 2.76
Oth e r Itle m s,
....................................................................................................................................................................................................................
!!2.�p5,27
Tota I Shoftfia I I
The below listed revenue items outperformed, which offset the above listed loss of $5.4
million.
L4i
The below table is a good indicator of the domestic economy for the Village of Mount
Prospect.
(A�rlqi o tLlii r7its s liiii i,�7i Tll o u u sa i,�7n
DE, �t „., rel
�IIIIIII
�� ��� ��I ���
�� �� ���L� ��I 1 ��II�I-
StIlat'lle UseTax
756, 2.2.6
StIlat'lle III Tax
63IIS ."
Cares Grant"
.�578,
Other Clook C11 G ra nt'si,
2.3p 250
it it nor FuTax
613�v 3 58,
��i
Vi �I Tei
�II� .� .II
0111h e r VIII n rgo,v ernment,41Revenues
2..1.11 Ww '9 .
B, uiiiii I d iiiii n it
.............................................................................................................................................................................................................................
+ .
A W
IIPrope rty Ta x e s, (I n cree r
II p048,
ArnbUlance Fees
6617�pO64
�t ilii iiia IIIA
.....................................................................................................................................................................................................................mm......mm
:.p �Y
fit ' er vue Sources
.....................mm.mmmm....................................................................................................................................................................................................mm
-1 ......................
9, .
Total „ I
51��p'�'31,81%F,9194,
The below table is a good indicator of the domestic economy for the Village of Mount
Prospect.
(A�rlqi o tLlii r7its s liiii i,�7i Tll o u u sa i,�7n
DE, �t „., rel
�IIIIIII
�� ��� ��I ���
�� �� ���L� ��I 1 ��II�I-
�IIIIIIIII
Gene4l i VIII "'I e r h n d ilii si
, G.p31r9j",
,18,
(12.,p935)
_ 13. G
Food d
8,�� ' N
VI IIL11 A9,
.IFIL I? 8W
..........................................................................
11.4%
riiiii iiing and apt iiiii �, IIP VIII a ce sI
V p
9 131 X 73 .
(12,? II9I)
- 12. .......
A, p p a relllll
V
17
,7110
_15.7%
IIF a rn iiiit re . H.H. . Radiio,
i........................................................�..................Pl.....................................................................................................
16
.............4...............................................................4................................................
911?
)
............. ...............................................
_ .1.81.81
mm............. ......
Lumber,,, N, Hardware
10911
6Gp'
11I
13.5%
otiiiii . Ili iii III III iiiii ng Stat"IiiiI
W
VII
.................................................................................................................................................
8,71,
iii.
Drugs, . Misc. sc. eft hili VIII
i..................................................................mm........................................................................................................................................................................................................................................................................................................................
Vii ":.
� �
.II , ,�I �
iiia
p ..
.
gA, riiiiiIllll�tr IIIIIVIII Other,
clus
�V
.�.V.
57.0%
a n uf a cture rs,
13.,16,5,
110,, 194
2,972.
2.9.
Tot s
.I
.
a
- .
( iuLu r co, i s D e o irt" i,�7n IIIA l
Our initial COVID-19 impact forecast for the year 2021 was $1.2 million. We are not
changing this forecast at this time, while we are hopeful for a return to normalcy by mid -
2021.
2 0 2 0 U ni a u I I�i III IIII e II 1�� Ia i��i c 1�1 a 1�� s
As discussed above, the year 2020 was an unusual year and the Village navigated
through some unchartered territories. However, the Village's strong revenue base as well
1�
as contingency planning allowing deferment and reallocation of funds allowed the Village
to not only weather the pandemic's impact but emerge much stronger at the end of the
year. December 2020's sales tax collections were historically high. This revenue as well
as some of the outperforming revenues allowed the Village to maintain a strong fund
balance. The below table summarizes revenues recognized for the year 2020. The table
indicates that the Village recognized 99.35% of the budgeted revenues. Some of the
revenues were budgeted for the year 2020 but are delayed by the State due to timing
issuance of the Rebuild Illinois bonds. For example, the platform extension grant of
$900,000 was budgeted for the year 2020 and is expected to arrive in the year 2021.
Some of these revenues are not lost but have timing issues and are removed from the
COVID-19 revenue shortfall analysis for calculating the final loss/shortfall amount.
The original Expenditure Budget for FY 2020 was $135.1 million. The actual spending for
the year was approximately $139.6 million. Original budgets were revised and
increased/decreased with carryover items from time to time due to the timing issues of
the projects. For the Village, the net carryover amounts for the year was $15.5 million and
the revised budget for the year was $150.6 million. The below tables recap the annual
budget and actual spending for the year 2020 by department and by expenditure
category.
rN
�m
uuuu
. mllllll�..
, mllllll�..
ProperPropertly Taxes
mm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm
1 359
.I uII .I .I
1,00.07%
'
0 r T e s
u.
.I.
,, 259 9
90.2.
VIllnt'ler,uernmentvenue,,
,I8
98.
iiis, D r ill A�
..................................................................mm...............................................................................................................................................................................................................................................
1 . 3
" , 80
97.94%
Ch rl sI II ' r r iiiii s
2.08, u ,
.I ..
IIF iiiiines, & Forf6itlsi
55,80�
09
74.34%
VtrI
..................................................................................................................................................................................................................................................................................................................
.
,p 700
64
.97I
il' rF]
Ilii ab
Onii Sources
�.I
8WII
, 2.3 61��,11065,1,1100.93%
....................
Other eye a
.�.I. �
, 2,,0
1,08,45%
R, eiii52.1
�7"%-
Total Revenues,
118
®I'u
.�"VI.
®
'91,91. 3151,11% 111PVI
The original Expenditure Budget for FY 2020 was $135.1 million. The actual spending for
the year was approximately $139.6 million. Original budgets were revised and
increased/decreased with carryover items from time to time due to the timing issues of
the projects. For the Village, the net carryover amounts for the year was $15.5 million and
the revised budget for the year was $150.6 million. The below tables recap the annual
budget and actual spending for the year 2020 by department and by expenditure
category.
rN
IIS Pub][ic Represientlat"III o n
711��, 1,65,
287, 61 617
I,
2.0 "ilii I I age A, d m iii n iii sI ratI 11 on
4,,p 75,8,, 4,
II II.I IIII .I
83.25%
U � VIII .:SIA n ce
.II
���� II II �
���� I ,.��� _'"III.II �,
195.89%
II II --.
Com u VIitl e e o
7, .II
III II III �
�,
I II
,985 1
��,
IV '
ul .9 0
511 a asi
.0 NW 19 3NW °'
.0 v .0 O H,
961.91%
IIIII
IIIYPoII
� I, ��, 40 ,2.
Q 1 I,
II 1®. 4�' � '
70 F VIII re
2.Qpg,41��v942.II
II
8,110 IIP a b IIIII o r 1
.II ,p 350
5, .II up 78,8,�p 8, 3 7
819j. %
r o i- li'4. a tu..'a
4iiA VI .i II II6111
3ii III7II 7
® 2%
Total Expenditure,s
151%
1.31,9 1,607
12. II I,
IIS rsl000
0,p 3 38,pO79
ContlraerviicesiiIIIA
.I I ,II
IIIiI e si
2,,409j��, 78
PIIIII m III mro due rpt sl
4 ,p W X72,
Debit, Servlice
I Q,069��p5,22
Other E IIIIIrsll
uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuum
IIIIIII ��A 9II
Tota Expenditures,t
1510112,62411p,51049
Due to cancellation of several Village sponsored programs and events, the Village was
able to save $423,498 for the year 2020. Additionally, the Village's annual overtime
budget was $2.4 million, while the actual paid overtime cost was $1.8 million. The actual
overtime costs for the year 2019 was $2.3 million. The reduced overtime costs also
contributed to the additional savings for the year. Some of the capital improvements items
were deferred to CIP in 2021. All those deferred items are fully funded and are part of the
CIP 2021-2025 as planned. Lower fuel prices and mild winter contributed to the reduced
supplies costs.
��
8,G6i1l 9j
92.61%
A :��A .
YIYI ® III '
9IiiA 'L' 6
III ® %.
A III A III1.III
u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u
914®
u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u u
.Vllu� �o 1
m
1 "'
Due to cancellation of several Village sponsored programs and events, the Village was
able to save $423,498 for the year 2020. Additionally, the Village's annual overtime
budget was $2.4 million, while the actual paid overtime cost was $1.8 million. The actual
overtime costs for the year 2019 was $2.3 million. The reduced overtime costs also
contributed to the additional savings for the year. Some of the capital improvements items
were deferred to CIP in 2021. All those deferred items are fully funded and are part of the
CIP 2021-2025 as planned. Lower fuel prices and mild winter contributed to the reduced
supplies costs.
��
General Fund
The General Fund recognized 100.1 percent of the annual budgeted revenues, while 96.2
percent of the budgeted expenditures were spent. The tables on the next page summarize
the revenues and expenditures for the General Fund. The unaudited financials show that
the General Fund is expected to have a net deficit of $1.1 million against the planned
deficit of $3.5 million. Due to GASB accounting requirements, $3.4 million from the Fund
Balance was reserved for a flood control project (Levee 37). Since Phase I of the project
is already concluded and the total reported expenditures already include the transfers,
the reservation of $3.4 million will be reversed and will be added to the unassigned Fund
Balance. However, the 2021 budget also includes a transfer of $2.3 million, which will
further restrict the unassigned fund balance by that amount. The net effect of reversing a
committed fund balance of $3.4 million and processing a new commitment of $2.3 million,
will result in the net increase in the Fund Balance of $1.1 million, which offsets the current
General Fund deficit of $1.1 million.
Fund Balance Analysis
Accounting Fund Balance
Spendable Fund Balance
Beginning Fund Balance
$22,914,986
$17,445,531
Add: Net Deficit
$(1,105,775)
$(1,621,980)
Add: Reversal of
Committed Fund Balance
for Levee 37
$3,390,000
$3,390,000
Less: New Commitment for
Phase II Levee 37
$(2,300,000)
$(2,300,000)
Ending Fund Balance
$22,899,211
$16,913,551
As a percentage budget
37.0%
27.4%
The Accounting Fund Balance includes all assets, including receivables. The Spendable
Fund Balance represents liquid cash and cash equivalents readily available. Committed
9
Fund Balance represents the Fund Balance pledged for the Levee 37 Flood Control
Project. The above amounts in the table are unaudited and subject to change.
0 Publlhic Represientlat"Iili on
7.1 .I 65,
2.87, 667
40.45%
���
.0 Vi I I aN d ilii ilii st rat hili o
A 6
16
Y�
° 7
I .®
IIFi n a n ce
I 6165��,927
r ,11017
..92
40 o u ���t o rpt
II .I 7
1', 7
.u�l," °I
.II I 9� 5,9
.II 7v 0 2.8,
961.91%
0 IIP o, I i c e
. ° 8,9'9 73 7
137 9 39
9 SII. 71%
70 Ili iiiii re
I7'0p 178,
17 09IIS 9 ,1
93.9,8%
Pu bIll iii c WarksI
q° 2.83
S 70 p9ji67
91 ."98
GO II ' on- De a rtIm e t
�IIIIIII
, 94p 173
1 1 2.81%
Total Expenditures
�IIIIIII
�
� �IIIIIII
IIPropertly Ta x e si,
I 6I�� '�� .II09
1t h e r T
�� � �
�
����7,
®
t, e rrti oa»�
............................................................................................................................................................................................................................................................................................................mmmm
IwU:
i ,
L��o siii , IIP r ii��t �� . IIS �
...........................................................................................................................................................................................................................................................................................................mmmm
.II pf0
� ��
.II �
� ..p �
110.63%
r,g s IIIFo r r ilii s
.I � p . ,
. IYO, I I
.I 9MI1 1%
IIS liiii n e si F rf e it"
G2,,5,,5))O
W 745,
618, I1%
VIII "vet rpt VIII o com e
2.6161�?Goo
''3 2.8,
37.34%
Other Revenue
242.��p 30/0
2.3 3 407
11®3 3%
R. eiiiii u r rrt I
. 17 7
� �
9j. 2 .
riia n Toa
, ,
Iffl ,91 31101.
100.1111%111
0 Publlhic Represientlat"Iili on
7.1 .I 65,
2.87, 667
40.45%
���
.0 Vi I I aN d ilii ilii st rat hili o
A 6
16
Y�
° 7
I .®
IIFi n a n ce
I 6165��,927
r ,11017
..92
40 o u ���t o rpt
II .I 7
1', 7
.u�l," °I
.II I 9� 5,9
.II 7v 0 2.8,
961.91%
0 IIP o, I i c e
. ° 8,9'9 73 7
137 9 39
9 SII. 71%
70 Ili iiiii re
I7'0p 178,
17 09IIS 9 ,1
93.9,8%
Pu bIll iii c WarksI
q° 2.83
S 70 p9ji67
91 ."98
GO II ' on- De a rtIm e t
� 174
, 94p 173
1 1 2.81%
Total Expenditures
r �IIIIIIIIIIIIIII ������� ��������� a I IIIA ������� �IIIIIIIIIIIIIII ��I ��d1�1
VIII I �IIIIIIIIIIIIIII 1�1
� I�i
pllll
cull � pplU IIIIIIIIIIIII III � IIIIIIOtl uull IIIIIIIIIIIII II �pll III 14 ' ' I IIIIIIIIIIIII � 1�� pl
The below snapshot provides an insight into unaudited financials for both Police and
Firefighter's Pension Funds. After the initial crash in March/April, the stock market
recovered very well and both the funds have performed above their benchmarks. The
Police Pension Fund had an investment income of $10.2 million, while the Fire Pension
10
Fund earned investment income of $11.6 million. The Police Pension Fund added $8.6
million to the net position while the Fire Pension Fund added $9.2 million to their net
position. Actuarial Reports are in the process of being prepared and are expected to show
a funding percentage close to 70% for both the funds.
nrom e,
Contri butions
Member
MunIibip4l
Tota I Contribution
Investment Inconie,
-VIII nteresit, &. Di vIi d e n d
Fa i r Va I u e Lo s s,
I nve sit"I'm emit Ex pe n yes,
Tat la I I nve m III n com e
Tota I I nconi e,
Expe, n d itu res,
Ad m i n i strat"I 11 on
PensiJion Benefits &. Refunds
Total Expenditures
Net Change,
Beginning Net Posilition
Ending Net Position
Pol [ce, F! r
Pension Pension
.,.--A ff-,.,. - -A
81610"FOG2. 758,838,
'7h 0 A 0 '111 '1,,rk 'I AOO C�IC
4g / IIUO��r I �1, Z. -r4�r Z. -r4 I' r -r4 uir4
Ig9j,8,8,571, 2., 2.2.6,447
8, 3 611 618, 3 911,4611 48,61
1 -1,1 -r -770 too oorl),
P %P
58, 61'90 5,61,'905,
7`8 13 k '13 k 131, 51" 71 2,27,941
86 9,91,9 7,191!�131, 80 47,51,16716
11
2021
1��Revei��,iues
pllVIII Illp pv1111111 IIIIIIIIIIIIIIIIIIIIIIIII
The Q1-2021 shows the total recognized revenues of $22.8 million, which is 16.6 percent
of the annual budgeted revenues. At the same time last year, the total collected totaled
$23.1 million. The Q1-2021 collection is trailing behind by $282,906 or 1.2 percent
compared to the Q1-2020 collection. The data is summarized in the below table.
IIr Tiw
.w
�.I��, ,. II
41.43%
p
1�p 3 8)
Oth e r Tipulul�,941,,
�843
II erern ent iVIlI Rev enue
43,,p 75,6p 343
3,J92,,7147.310%
, .
Dili ce s e s IIP e r liiiits . Fe e s
p
1. � . p ..
38,15%11�
,
1,8W, 90
Ch a r,ge s i= o r S e rvII Ie ��
,I
D,
Illi iiiii n e si li o, rf e lint si
458,p500
1 , 7
22.44% U°
5, 6
17, 2. 1
I rt Income
��
�
�
"�
��
�
Other IIF iiiii � iii g fro a rl e s,
1,G,p 4�p jG0
2.97,,971,
1. �76%
35,
2.9 7, 9 3 6
Other R e u e
, I, I.
. 4 9
2.3.24'%
59 , �1'8'8(72,449)
Re m burse m ends
1,
1. . 3"
12.
)
Grand Tots 1
1.31,71'. 17171'919�0
22.E806X43,91
1..I&3" II
231, 08,91 3
(2,82,p,906)
• Q1-2021 Property Tax collection for the first installment is lower by $1.3 million
compared to Q1-2020. Cook County has extended the due date for the first
installment of property tax from March 1 to May 3, which has resulted in a lower
collection.
• Other Taxes includes locally enacted taxes including Home Rule Sales Tax,
Food & Beverage Tax, Hotel/Motel Tax, Municipal Motor Fuel, Real Estate
Transfer Tax and a few more. The collection is marginally trailing behind by a
nominal amount compared to Q1-2020.
• An increase of $954,135 in the Intergovernmental Revenue is due to increased
Income Tax, Motor Fuel Tax, and Use Tax. No sales tax revenue is recognized
in Q-1 as the sales tax revenue for Q-1 will be received in Q-2. The sales tax
revenue received in Q-1 is applied towards the tax receivable balance at the
end of December 2020.
12
• License and Permit Fees are tracking higher by $218,290. The Village
extended the due date to buy vehicle Sticker in March 2020. There is no such
extension for the year 2021, which has resulted in a higher collection for the
year 2021.
• Charges for Services are slightly trailing behind due to a due date change for
the refuse services to accommodate a common due date for Water/Sewer and
Refuse bills. The change is to support the new online payment platform.
• Investment Income has decreased as compared to Q1-2020 by $184,281.
Since the beginning of pandemic in March 2020, the rates have drastically
dropped and has resulted in lower interest income. There were higher rates of
interest during January and February 2020 that resulted in greater interest
income earnings for Q1-2020.
• The majority of the other items are on track as expected and are in line with the
2021 budgeted revenues.
Qt,,,jai�rvtei�r 1 9 2021 E In
Q1-2021 expenditures totaled $18.7 million or 13.6 percent of the annual budget. The
expenditures are trailing behind by $14.2 million compared to Q1-2020. The Village was
in the middle of many large capital projects in Q1-2020 including the Police and Fire
Headquarters and the Maple Street Parking Deck. All of these projects were completed
in 2020. There are more typical annual capital projects being conducted in 2021, which
has resulted in a much lower capital improvement spending for the year Q1-2021.
13
.
Public e res,entatiuom
��
��� o
���10
? . 6
2.0 Vi 11I I age A d m iii n iii s t.rra t.0 on
4,806,663
9, 78, 55,
2.0. 35
IF 107,? 711
(129,55 ,6)
0 IIFi n a n ce
,? 0? 348,
48,7? 2.09,
2.1.84%
496, 45,
(,9,,? 13 G
40 Community Development,
4,017,075,
153414,85,
15.795
1? 8 , ,? 18
1? 247? "
50 IHS uae rviir'ce sF
1? 2.2.3,F840 p2.63;0102.1.495/a
,1,9
158"u,069'
(5,059)
60 Roll iir ce
,G? 78, ";
? 742,48,5„
18.,01.%
10?,947 8 8 8
,897
70 IIFi re
18",53 2,011,
3;02,5,;,045,
16. 8 2,0
F016,F 608
(2,991,558)
80 Ru b! circ or ks
1?872,?8 ,9
? 3??355„
10.500/a
11? 8 ° 947
4?795,59 )
Total Expenditures
137F 15,2714151.
19F7,25, � 0
1.1,
4, NP 7 p
(1,4,p 1 1
IIRersionnel
51,39, ?880
9,F480? 757
18.4%
12,3 8,960
(2,918,204
Se rr iii ce si
84 95 8,? 2.60
,580, 75
1® 70/a
7F1062,381,
518,? 194
Su ppl hi e si
2.�? 318?899
68"OF88
29.4%
69,24 p
18?87 )
Capital Improvements,
8 .?158 p5,15 p
8,07p21
2®5
12p710;9, 4
(11;9,103,708
Debit err vice
11��? ,8�7�?568,
,1,9
?2.2.1
(3,0? 2.37
Other Expenditures,
,F881,192.
1,53,71,10
2.®G'
IF88 F1005
(1,182.1 94
T,otial Expenditures
1.31������°�4v����,
IS 7125, 104
13.6%,
34. 251°91' 7130
1 11, 5134 271
• Normally, the property tax collection for the first quarter includes the pension
levy. The due date for the property tax levy was extended for the first installment
from March 1 to May 3. The change resulted in a lower collection of the property
tax. When the property tax is received for the pension levy, it is an income for
the Pension Fund and an expense for the General Fund. The Personnel
expenses are showing a lower expense amount because of missing pension
expenses, which will be recognized by May 2021. Overall, the Personnel
expenses are on track and total $9.5 million or 18.4 percent of the annual
budgeted amount.
• Contractual Services show an increase from 2020 to 2021 of $518,194, mainly
due to inflationary increases as well as added insurance service expenses
(premiums) due to changes in the I RMA deductibles.
• Commodities and Supplies show a marginal decrease of $18,378 compared to
Q1-2020, which includes additional fuel, salt, water/sewer parts purchases,
general repair parts, as well as a few other miscellaneous items.
14
• The Q1-2021 capital improvement spending totaled at $807,216. There were
major capital improvements payouts in Q1-2020 for the new Police and Fire
Headquarters, as well as for the Maple Street Parking Deck project. The year
2021 includes more typical and annual projects, which are expected to be
carried out after Q1-2021.
• The major debt service payments are due on June 1 and December 1. There
are no significant debt service payments in Q1-2021.
• Other Expenditure for FY 2020 included a property acquisition in the Prospect
& Main TIF for $1.3 million. There are no such major expenses incurred in the
Q 1-2021.
Otl��hei�r 1��[tei�rns
• American Rescue Plan: The new Federal American Rescue Plan was passed
on March 11, 2021. The plan provides direct relief funds to all towns with a
population of 50,000 or more. Per the initial available reports, the Village is
expected to receive $6.55 million in federal relief funds. The funds have to be
used by December 31, 2024. The funds will be available in two equal
installments and the first installment of $3.2 million may arrive by May 10, 2021.
The second installment will be given after 12 months of the first installment.
Staff is currently working internally to develop a plan and will provide updates
in the near future. Per the available information, funds can be used only for the
following items.
o To respond to the coronavirus health impacts or economic impacts
including assistance to households, small businesses, nonprofits, and
impacted industries including hospitality, travel, and tourism.
o By providing premium pay for essential workers up to $13 an hour with
an annual cap of $25,000.
o To cover for lost revenue in providing services.
o To make investments in water, sewer or broadband infrastructure.
o Funds cannot be used to cover lost revenues if the loses were due to a
tax cut. Funds cannot be used to cover pension shortfalls.
15
• LGDF: Recently, the Village has seen a growth in the Income Tax Revenue
(Local Government Distributive Fund — LGDF). The 2020 budget for the income
tax revenue was $5.2 million, while the actual collection is $5.9 million. The
Village has not increased its budget for the year 2021 and by applying the
conservatism principle the budget was kept flat at $5.2 million. The State of
Illinois has proposed a 10% cut in the current LGDF distribution. The reduction
in LGDF income will reduce the Village's current distribution from $5.8 million
to $5.2 million, i.e., same as our current budget amount. The reduction in the
LGDF revenues may become applicable starting July 1.
The Village faced many challenges in the year 2020 but the strong revenue base and
robust local economy has allowed the Village to weather the impacts of COVID-19. The
current cash and fund balances comply with the policy and provides a strategic support
to the fiscal health. The Village can achieve its short-term and long-term strategic goals
by maintaining its fiscal health. The Village saw a great deal of economic growth and
developments prior to COVI D-19. Staff is committed in delivering excellent customer
service in a fiscally responsible way. The Village might face some short-term challenges
due to the pandemic and other related items but are hopeful for a return to normalcy by
mid -2021.
Respectfully Submitted,
Amit Thakkar, Director of Finance
16