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Meeting Location:
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DEPUTY VILLAGE CLERK
ALL
LY START TIME
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CHE WHOLE
DA 1/1
Meeting Date and Time:
Tuesday, November 12, 1996
6:00 P.M.
rleyi
Paul Hoefert
Arlene Juracek
Irvana Wilks
:)BER 22,1996
Orley, Mayor
lanonis, Village Manager
,Ila,; Fire Chief
Mock, Police Chief
liar» Cooney, Director
rations or comments during the Budget
D LIKE TO ATTEND THIS MEETING BUT
NEEDS SOME ACCOMMODATION TO
ACT" THE VILLAGE MANAGER'S OFFICE
MOUNT PROSPECT, ILLINOIS 60056,
?7, TDD #847/392-8084.
MINUTES
COMMITTEE OF THE WHOLE
OCTOBER 22,1996
CALL TO ORDER
|nthe absence of MayorFadey, Village Manager Michael Janoniscalled the
meeting to order cdG:3G p.m. Present atthe meeting were: Trustees George
Clowes, Timothy Corcoran, Richard Hendricks, Paul Hoefert, Arlene Juracek and
|rvoneWilks. Absent from the meeting was Mayor Gerald Farley. Also present
were: Village Manager Michael Janonis, Assistant Village Manager David Strahl,
Finance Director Brian Ceputo, Assistant Finance Director Carol Widmer and
Human Services Director Nancy Morgan.
Village Manager Janonierequested nominations from the floor for Mayor Pro Tem.
Motion made bvTrustee Wilks to appoint Trustee Corcoran Mayor Pro Tem and
Seconded byTrustee C|owee. Motion was approved unanimously.
ll� MINUTES
Approval of Minutes of September 24, 1996. Motion made by Trustee Hoefert and
Seconded by Trustee Wilks to accept the MiruteeTrustee Hendricks stated that
a reference in the Minutes of September 24 stated that the pedestrian crosswalks
had not been striped and hewanted to report to the ViUageBoard that the walkways
had been striped oeofthis meeting. He also stated that a trailer ad151OEast
Emmerson Lane has not moved for a number of years and is requesting follow-up
from the Village Manager concerning the anonymous letter hehad submitted hothe
Village Manager otthe previousmeating. Trustee C|ovwaarequested. modifications
on pages 3and 5cfthe Minutes concerning his comments regarding the Rand
Road Study. Trustee Wilks requested orevision bothe Minutes concerning the
Century Tile property. Trustee Corcoran requested a modification to the Minutes
regarding the Kensington/Rand triangleas o prime site for real estate
redevelopment. Minutes were approved with the changes.
1
Tom Davies, 203 South Omen, spoke. Hequestioned the amount allotted to the
Historical Society ose organization and asked ifthe Village
should set up the Historical Society as a non-profit corporation or whether the
Village Board appoints Board members torun the organization. Haasked whether
parameters had been established bythe Village Board todetermine iftax money
intobaused ordonated tonon-pnzfitorganizations. Healso suggested that en
additional schedule be included in the Budget showing the amount ofrevenue
growth aeopercentage from year toyear compared hothe rate ofinflation. He also
recommended the ViUmQereview the health insurance costs and pursue alternatives
toreduce the costs.
Trustee Hendricks stated that there are numerous traffic back-ups atRand and
Central and Central and Mt. Prospect Road and would request that staff determine
if Police personnel can assist in resolving the situation.
Trustee0oefert stated that Trustees should speak under Any Other Business at
the end ofthe meeting.
|V. 1997 BUDGET DISCUSSION
Village MammgexJamonis provided e gen&al Budget overview to the Village
Board. He stated the process was started at the six-month review inJuly of 1996
and many of the parameters which were suggested bvthe Board at that time have
been put into the document which has been presented tmthe Village Board.
December will start the official action necessary to approve the Budget for 1997
after three Committee of the Whole meetings take place to discuss various budgets
inthe various operating Departments. The Budget iaalso presented bothe Finance
Commission prior to the Committee of the Whole meeting for their input and
recommendations.
Village Manager Jamomis provided a general review ofwhat has occurred in19[6
and highlighted the efforts cfeconomic development including U. S. RoboUcs,
Home Depot and the Jewel adRu0dhumtthe new cinema and the re -use ofthe
Eagle Grocery Stora at Golf and Busse. He stated that number ofinitiatives
which have taken place has generated mor6 staff activities including the work by
the Visions group. Healso pointed out that opartnership has developed between
citizens and the Village Board concerning specific issues. Hestated the Budget
itself of$52 million shows a modest increase of 17% if. the expanded road
reconstruction ioseparated from the percentage ofincrease. He stated that there
are m number ofinitiatives that one under way which the Village as offsetting
revenue but still must show the expenditure and then match the expenditure to the
revenue received. Hostated most revenues are meeting projections inthe 1S8G
Budget.
Hastated the Village kaliving well within the means established bythe Village
Board 'General Fund is increasing approximately Y�
y���andindudennww 'earvicea
which have already been approved by the Village Board including a new Housing
Inspector which has been inplace since the summer, enadditional resource officer
and community policing offioec Much wfthe increase iedue tothe new computer
|eoea paymentscharged boeach Department hofund technology improvements. A
Merit Compensation Plan is being proposed aaan opportunity to provide cash
bonuses esincentives for performance. Also anexpansion ofthe Human Services
Internship Program which has become necessary due to increased service
demands generated bystaff initiatives. Legal services are up approximately
$100,000 due to numerous lawsuits and increased prosecution, again, due to the
increased initiatives. Health insurance has risen approximately 1196and Pension
contributions are increasing tomaintain the 1DO96funding level and the additional
demand that retirees are beginning toplace upon the system. Personnel increases
are approximately 3.596general wage increases. Other items include ochange in
the computer financial software plus the development of a multi-year capital budget
to be in place by next budget cycle and a modest increase in water rates to avoid
large changes over time.
There are five general areas inthe Budget
i. The General Fund which provides the operating expenses for the majority
'
of services provided. %
2. The Capital Budget which provides funding for large dollar items including
Public Works projects and equipment.
3. Pensions which is the demand for funding Pensions for IMRF and Police/Fire
personnel. '
4. Debt Service used bmpay off the indebtedness ofthe Village.
5. |nbamna| Services which includes vehicle maintenance and the computer
lease payment.
^
The 1S8GPark Ridge Survey lists Mount Prospect aanumber 15out of15.
Finance Director Brian Caputo provided ogeneral overview cf the Revenues am
outlined inthe proposed Budget. Hestated that the budgeted items also include
e1998forecast budget oothat people who review the budget have some idea of
where various funds may be going. Worksheets were submitted by the
Departments and reviewed hythe Vi||ageManager during the month mfSeptember
which eventually led tothe information presented this evening. Major revenue
sources for the Village are Property Tax, Sales Tcx, Intergovernmental Funds,
Permits and Licenses, Service Charges, etc.
Property Tax increase improposed cd396. He stated that ho is requesting
Disaster Response Contingency be set aside and there imflexibility toset aside 39&.
or$3OO.00Ofor disasters. The Contingency can bwfunded creating onadditional
fund for emergencies but that iotypically not recognized under general accounting
practices. Another option would bereserve funds which are undesignated but are
still identified for contingency oremergency.
General comments by the Village Board concerning the overall Budget document
included the following items:
There was extensive discussion concerning the Disaster Contingency fund of
$3OO'O0Oand how itwill beaccounted for inthe Budget. There was also some
discussion concerning the Computer Replacement Fund and what would happen
bothe charges tothe Departments ifthe computers orequipment had bnbereplaced
either earlier than projected ordid not cost aamuch aeprojected. There was also
adiscussion concerning the time frame for reimbursement ofdisasters from the
Federal government as an opportunity to replace any money that may be utilized
from the Emergency Contingency Fund.
Trustees also requested the Budget document be revised to reflect percentage
changes in each Revenue source or expenditure from year to year and to net out
the |ntedbndTransfers from year boyear.
Generally, the \HUaQe Board members were pleased with the document as
presented.
General consensus of the Village Board was tmsupport establishment ofm
Contingency Fund mfapproximately $300,000.
Village Manager Jamon)s answered oquestion which was phoned inconcerning
Property Tax increases. Hestated that many ofthe increases may bnattributed ho
other taxing bodies orreassessments inthe community. Hastated the Mount
Prospect property tax only amounts to approximately B% of the total bill of the
average homeowner and the Mount Prospect level has only increased
approximately 3Y6for the last several years.
Human Services Department Overview,
Human Services Director Nancy Morgan stated that the Human Services
Department has obudget ofapproximately $5iQ.00O. She provided anoverview
of the services provided and some information concerning the work the Visions
Committee has been involved with over the past year. Additional referrals which
have taken place through contacts with other Departments has necessitated an
enhanced Social Work Intern program throUgh the use of part-time interns. The
computerization of the Human Services Department is currently under way and this
past year can beconsidered aeotransitional year but benefihawill soon become
General comments from the Village Board members included the following items:
A general ovanvieW of the Northwest Community Senor Services which are
provided through the space provided bythe Human Services. There was also an
overview of the revenue pass-throughs which the Department has been realizing.
There was also discussion concerning the units of service Human Services
provided and how those are calculated for comparative purposes. There was also
discussion concerning the use of computers by Human Services personnel to track
services provided boresidents. There was also discussion oetowhat funds from
the Visions Committee are used for interms pfservices.
Hmnman Services Director Nancy Morgan responded toenumber ofthe items by
the Village Board and stated that the Northwest Community program is not
duplicating Human Services' related services. She also stated that the funds used
out cfthe Visions are typically used maseed money and not amocontinual funding
source for programs.
Village Administration Budget
Village Manager Michael Jamonis, provided o general overview of the Public
Representation Budget which includes the Mayor, Village Board and Advisory
Boards and Commissions. The Budget amounts hoapproximately $G3.00Oand
there is o projected increase of 6.2%. Majority of the increase is due to the
projected replacement of the chairs for the Vi||oAa Board members at a cost of
$3,600. He stated that there is no increase inWages for elected officials and many
of the large expenditures are for memberships in the Northwest Municipal
Conferenoe, U. S. Conference of Mayors and Northern Illinois Planning
Commission.
General discussion by the Village Board members included the following items,*
Two Trustees stated that the chairs for the Trustees dionot need to be replaced
while two other Trustees stated that they will take the chair issue under advisement.
There was also asuggestion that the Village Board review the Village Code to
determine that items can heremoved and what items are out ofdate.
Village Manager Jammmhsstated that the 8bdQatinhis Department amounts boo
36.596increase. Hastated the majority ofthe increases are due boincrease inlegal
services of approximately $100,000 over the previous year, the addition of a Merit
Pay Plan pool of*4O.DDOand management training inthe amount of$15.00O. Both
the management training and merit pool are new items for this budget year.
General discussion bythe Village Board members included the following items:
There was discussion concerning the goal for 1Q#Gand, again, 1997 concerning
Citizens' Surveys. Discussion focused on the type ofsurveys and what the benefits
ofsuch esurvey would be. There was also asuggestion that oCommittee ofthe
Whole meeting be designated to discuss the use of citizens surveys prior to the
instruments being distributed tothe citizens.
Village yNamagerJanomis responded to m number of the questions concerning
citizens' surveyo. Hestated that aethe Village continues to progress towards
performancebased budgeting, there is a need to measure how services are being
provided to the general public based on the amount of funds allotted to the service.
Communications Division
Village Manager JemmnUs provided s general overview ofthe Communications
Division Budget. He stated that the Budget shows om8.G%increase. The increase
is largely due to the cost ofFranchise negotiations. He stated that he is in the
process of discussing the possibility of combining with other towns in the area to
negotiate jointly with TCI for the upcoming Franchise negotiations. Healso stated
that the status ofthe Communications Administrator position isstill under review
and the position will most likely be reconfigured to focus on broader activities and
less onspecific areas oftelephones and cable.
General discussion ofthe Village Board hz||ovw*d.
There was discussion concerning whether the Franchise fee covered the cost nf
operating the Communications Division. There was also discussion concerning
previous recommendations ofthe Finance Commission regarding the future ofthis
Division.
Village Manager JammnUsresponded toonumber ofqyestionsfrom the Village
Board members. Hestated that Franchise fees are flat and are creating ashortfall
of approximately $25,000 over the previous year. Thnrefoma, the Village is
supplementing the Division by providing approximately $25.000 through the
General Fund. Healso stated that subscriber base may shrink orremain flat over
time and ifthe Division |s eliminated, there would beanimpact onservices directly
tothe citizens concerning communications.
Village Clark
Village Manager Jmnmnis provided a general overview ofthe Village Clerk's
budget. Hestated that budget includes anincrease ofapproximately 5.796. The
increase is primarily due to the increased cost of codification due to some expected
changes inthe Codes concerning fire prevention and building. Hoalso stated that
staff isreviewing the possibilities ofusing technology tomake the Code information
more readily available and minimize Codification costs where possible.
M
Finance Director Brian Caputo provided a general overview of the Department
Budget and provided a list of functions the Department provides. The Budget is
approximately $1.1 million for 1997. He provided a general overview of the 1996
accomplishments. Major impacts to the increase of his budget include a proposal
to change financial accounting software and to add an additional part-time position.
The part-time position will not increase head count because it is a transfer of a part-
time position previously approved in Community Development. He also is
recommending that one of the account clerks be designated as a supervisor for
customer services to relieve the Deputy Director of some of the supervision duties
of the customer service personnel. The projected cost for a supervisor would be
approximately $3,000-$4,000 more than budgeted the previous year. He said there
is money available for Village -wide computer training and approximately $10,000
for a computer consultant. He stated the need to change to new financial software
is primarily due to the fact that there are very serious deficiencies with the software
the Village purchased in 1994. He stated the low bid of $111,000 for the system
has not all been spent and when the serious deficiencies were identified, the Village
staff promptly terminated future programming modifications. He provided a general
overview of the problems associated with the software and has requested a budget
of approximately $250,000 for now software based on the known vendors that are
currently available and that have proven packages which have been purchased by
other municipalities. He stated he is requesting the use of a consultant to assist in
the process of changing to new financial software.
General comments of the Village Board included the following items:
Some Trustees requested whether there was any opportunity for pursuing vendor
liability in terms of not delivering the product intended. There was also some
discussion concerning the charge for ambulance service.$ and whether the Village
is subsidizing insurance companies for this service. There was also general
discussion concerning future evaluation of computer needs and software.
Finance Director Caputo responded to a number of questions by the Village Board
by stating the complexity of the payroll system and other systems within the Village
require the payroll task to remain in-house and he is confident that with the proper
resources, the system can be improved. I
Village Manager Janonis stated that these overviews are provided as part of the
final decision process by the Village Board. He stated that he will attempt to get the
Finance Commission Minutes to the Village Board prior to the next budget
discussion of the Village Board on November 12.
V. ANY OTHER BUSINESS
Trustee Wilks stated that there numerous election signs in the right-of-way and on
telephone poles throughout the community.
Village Manager Janonis stated he has notified all of the candidates of the
regulations and staff is removing signs on an active basis.
Trustee Hendricks stated that he has recently had a meeting with the Daily Herald
Editorial Board and has been accused by them of telling Village employees what
to do. He stated that he has talked to the Village Manager and the Assistant Village
Manager as to the basis for these allegations and has found no confirming evidence
from either person that such direction is taking place. He also stated that he is
awaiting a response from the Village Manager concerning signs present in the right-
of-way along east Central Road.
V1. ADJOURNMENT
There being no further business, the meeting was adjourned at 11:14 p.m.
------ Respectfully submitted,
1 G�.tc-d �„� j
DAVID STRAHL
DS/rcc Assistant Village Manager
8
kyj Loll] L, I IN im man m I I a I g 0
9 KIM mil
THE REGULAR MEETING
OF
&cptc
ON NOVEMBER 11, 1996
HAS BEEN CANCELLED,
MAYOR
Gerald L. Farley
TRUSTEES
George A. Clowes
Timothy J. Corcoran
Richard N. Hendricks
Paul Vft. Hoefert
Arlene A. Jursoek
Irvana K. Wilks
VILLAGE MANAGER
Michael E. Jannis
VILLAGE CLERK
Carol A. Fields
November 14.1296
ZBA-15-A-95
rAINVIlinw, $I
ZBA-18-96
w S. ^
100 South Emerson Street Mount Prospect Illinois 60056
AGENDA
(Prepared October 30, 1996)
ZONING BOARD OF APPEALS
Mount Prospect Senior Center
50 South Emerson Street
7:30 P.M.
Approval qfM her 24. 1996
-jRqt
gg_
Phone: 847/392-6000
Fax: 847/392-6022
TDD: 8471392-6064
Village of Mount Prospect -Amendments to the Zoning Ordinance,
Commercial Vehicles in Residential Districts
1304 E. Thayer Street/William J. Dorncr - Setback variation to construct
a gazebo
1201 Feehanville Dr./TCI Communications - Setback variation to
increase the number of antennas/satellite dishes
Cases, IQ be Heard
ZBA-14-CU-96 832 River Rd./Sedan Landscaping - Text Amendment and Conditional
Use to permit an illegal existing landscaping business to remain in the
R-1 Single Family Residence District VILLAGE BOARD FINAL
ZBA-19-96 1.451 W. Lincoln St.,/Niewinski - Variation to permit construction of a
fence in front of the principal building in the exterior sideyard (See.
14,304.D.I.b.(2)) VILLAGE BOARD FINAL
ZBA-20-96 900 N. Wolf Rd.,/Northwest Assembly of God - Rezoning from C-R
Conservation/Recreation to R -X Single Family Residence and setback
variations for existing conditions VILLAGE BOARD FINAL
P_ecemb�er 2.
j M6 Open
Any individual who would like to attend this meeting, but because of a disability needs some
accommodation to participate, should contact the Community Development Department, at 100
S. Emerson, Mount Prospect, 11L 60056, 847-392-6000, Ext. 5328, TDD #847-392-6064.
FINANCE COMMISSION
VILLAGE OF MOUNT PROSPECT
AGENDA,
Thursday, November 14, 1996
7:00 P.M.
2nd Floor CONFERENCE ROOM - VILLAGE HALL
100 SOUTH EMERSON STREET
MOUNT PROSPECT, ILLINOIS
APPROVAL OF THE OCTOBER 31, 1996 MINUTES
111. DISCUSSION OF THE PROPOSED 1997 VILLAGE BUDGET
Public Works Department
Non -Departmental
IV. OTHER BUSINESS
V. FINANCE DIRECTOR'S REPORT
VI. ADJOURNMENT
NOTE: Any individual who would like to attend this meeting but because of a
disability needs some accommodation to participate should contact the
Village Managers Office at 100 South Emerson Street, Mount Prospect
847/392-6000, ext 5327, TDD 847/392-6064
MINUTES
FLOATING COFFEE WITH COUNCIL
SATURDAY, OCTOBER 12, 1996
9:00 am.
LOCATION 1: 2nd FLOOR CONFERENCE ROOM, VILLAGE HALL
The meeting was called to order by Trustee Paul Hoefert. Trustee George Clowes was present.
Representing staff were Assistant Village Manager David Strahl and Finance Director Brian
Caputo. Village residents/business owners were:
Lloyd L. Semans, Owner of the Train Station Coffee Shop
David Schein, 512 S. Nawata
Lloyd L Semens, owner of the Train Station Coffee Shop, announced that he had identified a
buyer for his business in Mount Prospect. However, his current lease with the Village has only
about a year left before it expires. To help him persuade the prospective buyer to fully commit
to purchasing the business, Mr. Semans asked that the Village Board extend his lease for five
years from the current expiration date and provide an option for an additional five years. Mr.
Semans stated that he hoped that the Village Board would vote on this at their regular meeting
on Tuesday, October 15,
Trustee Hoefert stated that he thought the Village Board would like to meet the potential buyer
before committing to an extension of the lease. Trustee Clowes said that he would consider an
extension of the lease; however, he said that he felt that the additional five-year option might be
excessive given that the Village had no record of the potential buyer's history as a business
operator.
David Schein, 512 Nawata, stated that he had written a letter to Glen Andler concerning his
objections to the conclusions and recommendations of the Weller Creek Study. Mr. Schein said
that, in addition, he met with Mr. Andler concerning the matter. Also present at the meeting
was Melcy Pond of Rust Environmental and Infrastructure, Inc., the author of the study. Mr.
Schein stated that, as a result of Mr. Andler's written response to his letter and their subsequent
meeting, he has withdrawn his objections to the study.
The meeting at Location 1 was adjourned at 10:10 am.
LOCATION 2: RIVER TRAILS PARK DISTRICT BUILDING, 1313 BURNING BUSH
Floating Coffee With Council was reconvened by Trustee Hoefert at 10:30 am. Trustee Clowes
was again present. Representing staff were Village Manager Michael E. Janonis, Assistant
Village Manager David Strahl, Finance Director Brian Caputo, Fire Chief Ed Cavello, Human
Services Director Nancy Morgan, Police Chief Ron Pavlock, Deputy Public Works Director Sean
Dorsey, and Police Officers Bill Roscop and Joe Favia
The Village resident present was:
Ernie Lasse, 805 S. Elm Street
Ernie Lasse, 805 S. Elm Street, asked about the status of the airport noise monitoring devices
which are to be installed in the Village. Assistant Manager David Strahl responded that the City
of Chicago has been granted permits to install two devices in the Village. Those devices are
currently being constructed.
Mr. Lasse also announced a meeting of a group which has been formed to discuss discipline
problems at Westbrook School. The group is comprised of School District 57 administrators,
Northwest Suburban Special Education Organization representatives, concerned citizens, and the
Village's Student Resource Officer (SRO). The group meets the third Thursday of the month at
5:30 p.m. at Westbrook School. The next meeting will be on October 17, 1996. Mr. Lasse asked
for any information the Village might have on recent incidents involving discipline problems at
the school which could be discussed at the upcoming meeting. Chief Pavlock stated that he
would see that Mr. Lasse receives as much information as possible without violating individual
confidentiality.
A discussion took place concerning pedestrian safety at the train station. Trustee Hoefert stated
that he believed that safety might be enhanced if a pedestrian crossing existed immediately
outside the train station building itself. This would allow pedestrians to cross the railroad tracks
shortly after buying a ticket and/or using the concession. Trustee Hoefert said that it takes more
time to get to the existing pedestrian crossings because they are several yards away from the
station. This extra time delays some pedestrians enough that they sometimes try to make up time
by darting across the tracks even when a train is approaching and the signals are activated.
Village Manager Janonis stated that he would contact the Union Pacific to discuss the possibility
of a new pedestrian crossing immediately outside the station.
The meeting at Location 2 was adjourned at 11:30 am.
Respectfully submitted,
/J.
Brian W. Caputo
Director of Finance
FINANCE COMMISSION
Minutes of the Meeting
October 17, 1996
Call to Order
The meeting was called to order at 7:05 p.m. Those present included Chairman Richard Bachhuber,
Commission Members John Engel, Joseph Etchingham, Vince Grochocinski, Newt Hallman, Jim
Morrison, Tom Pekras, and Ann Smilanic. Also present were Village Manager Michael Janonis,
Finance Director Brian Caputo, and Assistant Finance Director Carol Widmer. Commission member
John Korn arrived at 7:30 p.m.
II Approval of Minutes
The minutes of the August 29, 1996 were approved with one correction. The minutes of the
September 26, 1996 meeting were approved as presented.
III P nn l R
Finance Director Brian Caputo stated that a monthly Budget Revenue & Budget Expenditure Report
detailing the revenues received and expenditures paid for the month as well as the year-to-date would
be sent to the members of the Finance Commission each month. The September 1996 report was
included in the packet for this meeting.
Village Manager Michael Janonis introduced the Village's proposed 1997 Budget. Mr. Janonis began
his presentation with a brief 1996 year-end review. Mr. Janonis reported that Village revenues are
increasing and meeting projected levels and that the Village will end 1996 with fund balances meeting
or exceeding their target levels in most cases. Mr. Janonis also highlighted many of the economic
development and redevelopment efforts of 1996 including the continued expansion of U. S. Robotics,
the Jewel/Osco renovation at Randhurst and the $1 million renovation of the vacant Eagle Grocery Store
by Sun Harvest, an upscale fresh produce company. Mr. Janonis also advised the members of the
Finance Commission that a "Shop Mount Prospect" promotion will be launched before the end of the
year in cooperation with the Mount Prospect Chamber of Commerce.
Mr. Janonis next touched on highlights and initiatives included in the proposed 1997 budget. Total
expenditures in 1997, as presented, represent an overall increase of 8.6 % from the 1996 Budget and total
$52,705,991, exclusive of interfund transfers and Library expenditures. Almost 6.9% of that increase
is directly attributable to an accelerated Street Improvement Program ($2,500,000) and the Central Road
Improvement Project ($890,000). Total revenues for all Village funds, excluding the Library, are
estimated to be $53,484,275. This represents an increase in revenues of 3.1 %.
General Fund expenditures are expected to increase 4.8 % exclusive of new services and a new computer
lease payment. Total expenditures of $23,023,442 are proposed in the General Fund. New services,
which total some $179,255, include a Housing Inspector (approved mid-1996, $53,750); proposed
addition of an administrative Community Service Officer ($34,705); creation of a new Computer Lease
Payment ($50,800); Merit Compensation Pool for non-union staff ($40,000) and an expansion of the
Social Worker Internship Program in the Human Services Department ($7,100).
Revenues
Finance Director Brian Caputo discussed the Village's projected revenues for 1997 which are expected
to be $53,484,275. Property taxes, which comprise 16.1 % of total Village revenues, are budgeted at
$8,607,900 in 1997.
Sales tax is expected to reach $6,397,000 in 1997. In 1996 Sales tax showed a marked increase due to
the opening of a new Home Depot store and an expansion of the Jewel Food Store, both in the
Randhurst Mail complex. However, the growth is expected to level off and the 1997 expected sales tax
revenues represent a 1 % increase over 1996.
The Home -Rule Sales Tax is expected to provide $2,575,000 in 1997 and future trends in this revenue
source should mirror those of general sales tax.
The 2% Utility Tax on gas, electric and telecommunications is expected to increase from an estimated
actual 1996 amount of $1,585,000 to $1,660,000 in 1997. This represents a 4.5% increase. The
increase is due, in large part, to the proliferation of telecommunications devices.
Mr. Caputo advised the Finance Commission that the Water and Sewer fee revenue for 1997 which is
budgeted at $5,058,000, include a proposed increase in the rate of 3.5%. The cost per 1,000 gallons
will increase from $3.20 to $3.31. This is in keeping with a policy established in 1991 to gradually
increase rates each year as needed rather than in larger increments at longer intervals.
Mr. Caputo also outlined a proposal to "designate" a portion of General Fund fund balances as a disaster
response contingency, Mr. Caputo concluded his remarks by reviewing briefly the 1997 budget
calendar. He pointed out that two Finance Commission meetings are planned in June to discuss a multi-
year Capital Improvements Plan.
Humgp Services
Human Services Director Nancy Morgan and Deputy Human Services Director Jan Abernethy, presented
the proposed 1997 Human Services budget. Nancy Morgan began her presentation of the department's
proposed budget of $519,747 by stating that many of the Human Services programs produce revenue
which offsets the costs of the programs. Some of the revenue produced comes from home -delivered
meals, flu shots, classes and Elderhonor. In the first 8 months of 1996 over $39,000 has been collected.
The Human Services Department has three main areas of concentration: Social Services, Nursing/Health
Services, and Senior Center Activities. In addition, the Human Services staff works extensively with
the Visions Program which is an interdepartmental program designed to improve the quality of life of
Village residents through projects designed to meet the special needs of our residents.
Nancy Morgan noted that 1996 was a transitional year for her staff in that much time was spent entering
data into the new computerized registration program within the department.
19
The proposed 1997 budget includes an additional $7,100 for salaries of two seasonal interns the
department hires each year. In the past, each intern received a stipend of $300 and the department found
it difficult to attract interns to work in Mount Prospect. The additional salary will make it easier to
attract quality students for Mount P'rospect's internship program.
In the course of the discussion it was mentioned that the proposed purchase of a cholesterol machine for
$2,400 had been deferred until 1998. Private contributions are being solicited to help pay for the
machine in 1997. As a contingency, if sufficient funds cannot be raised in 1997, $2,400 has been
provided in the 1998 Forecast Budget. In response to a request for more information on the machine,
Nancy Morgan mentioned that the machine would produce enough revenue in two years to pay for itself
as well as the medical supplies necessary to perform the test.
Many of the members of the Finance Commission voiced support for the purchase of the machine in the
1997 fiscal year rather than defer the purchase until 1998. They felt the cholesterol tests would be very
beneficial to residents and, in addition, produce revenue for the Village.
ian!P.1?gll
Finance Director Brian Caputo began his presentation with an overview of the functions of the Finance
Department, accomplishments of the department in 1996 and departmental objectives for 1997.
The Finance Department's proposed 1997 budget of $1,111,236 is approximately 3.5% higher than the
1996 budget of $1,073,800.
The Finance Department has three divisions: Data Processing, Accounting, and Customer Service. Mr.
Caputo is proposing upgrading one of the three customer service clerks to a supervisory position in order
to enhance first -line supervision in Customer Service and to operate in the same manner as the other two
divisions which already have a supervisory position. This change does not increase the number of
employees in the department. Instead, one of the employees will be given additional responsibility along
with her regular duties.
The Finance Department has had a temporary part-time employee in the customer services division since
May of 1995 when primary responsibility for administering traffic tickets was transferred to the Finance
Department. For 1997 Mr. Caputo is proposing that the position be changed from temporary status to
permanent part-time status to enable the Finance Department to handle traffic ticket administration over
the long term. Total employee count for the Village will not increase with this proposed change because
the Community Development Department is reducing the number of part-time inspectors on its staff in
1997.
The proposed 1997 Budget includes a provision of $250,000 for the purchase of new accounting and
community development software. The expenditure can be found under Village Improvements and
Equipment in the Capital Improvements section of the budget. Mr. Caputo included the discussion in
the Finance Department because the accounting software is essential to departmental operations. Mr.
Caputo went over a list of shortcomings and problems with the current software. Based upon the many
problems encountered with the software over the past two years, the decision was made to discontinue
installation of additional software modules such as utility billing. After a great deal of discussion and
evaluation staff has recommended that the Village begin the search for software which will better meet
the needs of the Village rather than continuing to work with the present software. Mr. Caputo explained
that, in selecting new software, steps would be taken in the screening and selection process to ensure
the Village procures better software. First, the Village would use a consultant to help with the
development of a request for proposals and the analysis of responses. Second, the Village would have
extensive on-site visits with other municipalities using the software of the most qualified vendor(s). The
on-site visits would involve first-line employees spending time with counterparts in the other
municipalities using the software under consideration with live data.
Public 'Repces ntgtion and Villaag Administration
Village Manager Michael Janonis reviewed the 1997 proposed budget for the Mayor and Board of
Trustees. The budget includes a provision of $3,600 for new chairs for the Village Board, Otherwise,
there are no significant increases in the proposed budget.
The Village Manager's proposed 1997 budget is expected to increase from $489,875 in 1996 to $668,482
in 1997, a 36.5 ! increase. There are three main components of the increase. First, a total of $15,000
has been requested for management training. This is a continuation of the training the management team
is currently receiving. Second, legal fees are expected to increase from $167,500 in 1996 to $265,500
in 1997. The increase is due to ongoing litigation as well as the labor negotiations in the spring of 1997
with both the police and fire contracts expiring at that time.
The Village Manager's budget also includes a provision for $40,000 for a merit pay pool. Mr. Janonis
explained that the intent of the merit pay pool is to award bonus monies to non-union employees whose
outstanding job performance deserves recognition. The monies awarded will not add to base pay when
computing raises.
The members of the Finance Commission spent a considerable amount of time discussing the merit pay
pool. Several members supported the concept while some members raised concern over whether these
bonuses would be looked at as entitlements and raise expectations among employees that they will
receive bonuses every year. Also, concerns were raised as to how the program would be administered.
Mr. Janonis emphasized merit pay would only be awarded for exceptional performance. Such
performance would be documented through written performance evaluations. Merit pay would provide
an incentive for all employees to strive to perform their jobs increasingly better. Mr. Janonis further
stated that receiving merit pay in one year would in no way entitle an employee to merit pay in a
subsequent year.
V Adjaurnment
The meeting was adjourned at 11:35 p.m. The next meeting will be on October 31 at 7:00 p.m.
Respectfully submitted
Carol L. Widmer, Assistant Finance Director
4
FINANCE COMMISSION
Minutes of the Meeting
October 31, 1996
Call to Order
The meeting was called to order at 7:00 p.m. Those present included Chairman Richard Bachhuber,
Commission Members John Engel, Joseph Etchingham, Vince Grochocinski, Newt Hallman, John Korn,
Jim Morrison, Tom Pekras, and Ann Smilanic. Also present were Village Manager Michael Janonis,
Finance Director Brian Caputo, Assistant Finance Director Carol Widmer, Fire Chief Ed Cavello,
Deputy Fire Chief Mike Figolah and Fire Prevention Coordinator Paul Valentine. Police Chief Ron
Pavlock, Deputy Police Chief Ron Richardson, Community Development Director Bill Cooney, Deputy
Community Development Director Dave Hulseberg, Planning Coordinator Dan Ungerleider, Building
Coordinator Brad Paulson, and Environmental Health Coordinator Bob Roels later joined the meeting.
The minutes of October 17, 1996 were approved as presented.
Fire Chief Ed Cavello introduced Deputy Fire Chief Mike Figolah and Fire Prevention Coordinator Paul
Valentine. Chief Cavello began his presentation by reviewing the department's 1996 accomplishments.
One major accomplishment involved establishing medical engines with medical equipment similar to that
found on an ambulance. These engines provide the Village with another response alternative in times
of high demand for medical assistance. The department was also able to complete the warning siren
replacement program a year ahead of schedule.
The 1997 Proposed budget of $6,262,302 is 4.1 % higher than the 1995 budget of $6,013,095. Chief
Cavello highlighted several significant changes in the Fire Department administration portion of the
budget. The first is a reduction of 1$.3% in the amount budgeted for medical examinations. This
reduction was achieved by setting up a schedule of bi-annual medical examinations. In the past
examinations were scheduled according to the age of the firefighter and this schedule resulted in large
variances each year in the amount budgeted for medical expense. A new line item in the proposed Fire
Administration budget for 1997 is $5,$96 for a computer lease payment. This payment will provide for
the replacement of existing computer equipment. A line item which increased significantly is
employment testing. A total of $19,600 has been budgeted for testing new hires, lieutenants and captains
compared to $5,000 in 1996. This is the first time all of these eligibility lists will expire in the same
year and that is why the requested amount is so high.
Deputy Chief Mike Figolah reviewed the proposed 1997 budget for Fire Operations. Included in the
budget is a significant increase for turn out clothing. The amount budgeted in 1997 is $14,200,
compared to $6,120 in 1996. Mike Figolah explained that the department would like to implement a
program which provides for replacement of all sets of turn out gear over the course of six years at a rate
of 10 sets a year. The amount budgeted for opticom maintenance will decrease 20% in 1997 because
new equipment was purchased in the last two years.
The 1997 proposed Fire Prevention budget as presented by Paul Valentine contains no significant
changes. There is a new item to allow for a computer lease payment which was previously explained.
Mike Figolah explained that the Fire Department has requested $80,000 in the Motor Equipment
Replacement Fund. $60,000 of that amount is expected to be used to rechassis an ambulance. This will
be the second time the ambulance will be rechassied saving an estimated $20,000 over the cost of a new
ambulance. In addition, $20,000 will be used to purchase a replacement vehicle for a fire inspector.
Several general questions regarding the tank farm, breathing apparatus, and incentive pay were asked
by Finance Commission members.
1 MIT R947. "WrA M It-=
Police Chief Ron Pavlock and Deputy Chief Ron Richardson presented the proposed 1997 Police
Department budget of $8,115,524. This represents a 6.3 % increase over the 1996 budget of $7,636,695.
Of that amount $7.2 million or 89% is related to personnel costs.
Chief Pavlock began his presentation by reviewing the responsibilities of the two divisions: Field
Operations and Administrative Support Services. Chief Pavlock also reviewed the department's 1996
accomplishments and 1997 objectives. Chief Pavlock spoke briefly about the department's community
policing initiatives. The two officers added in 1995 under the COPS AHEAD grant are functioning in
their assigned areas and two problem solving officers were added in 1996.
Deputy Chief Richardson presented information on the staffing of the Police Department over the past
10 years. During that time the number of sworn officers has increased by 16 while the civilian staffing
has not changed in spite of the increased paperwork associated with the activity generated by the
additional officers. The civilian position of auxiliary services officer has two main functions in the
department: court liaison and property control. The workload has increased to the point that the
individual is unable to handle both areas of responsibility effectively and the department is requesting
an additional community service officer (CSO) to handle the property control function.
A lengthy discussion ensued regarding the request for a new CSO. Chief Pavlock explained that, unlike
other police departments, Mount Prospect uses civilians instead of sworn officers to fill many positions.
The decision to have a CSO handle the court function is another means of keeping the number of sworn
officers to a minimum.
Commissioner Hallman expressed concern at the increase in police staffing over the past 10 years.
Commissioners Morrison and Grochocinski indicated support for the addition of a CSO based on the
department's increased activity.
- mwwm�
Community Development Director Bill Cooney and his staff, Deputy Community Development Director
David Hulseberg, Health Coordinator Bob Roels, Building Coordinator Brad Paulson, and Planning
Coordinator Dan Ungerleider presented the Community Development 1997 proposed budget of
$1,218,452.
Bill Cooney reviewed the functions of the Community Development Department. They include plan
reviews, zoning, property maintenance inspections, long-range planning and economic development.
Mr. Cooney explained that, as part of the economic development initiative, the department has designed
a display for trade shows as well as a marketing brochure and a video. They have also placed
advertisements in selected trade journals. The Finance Commission members viewed the video prepared
by the department.
Mr. Cooney listed some of the projects the department has overseen in 1996. They included
improvements by U. S. Robotics, the development of a sizeable Kensington Center parcel by Braun
Manufacturing, additional improvements at Randhurst including General Cinema and Jewel Foods, and
significant construction progress on the Creekside and Clocktower Condominiums.
The three division coordinators summarized the activities and accomplishments within their divisions.
Building Coordinator Brad Paulson reported a record year for construction projects within the Village
as well as a year when the division developed a series of informational handouts for residents.
Bob Roels, Housing Coordinator, discussed the proactive approach the division has been taking in multi-
family inspections including the recently enacted Multi -Family Interior Inspection Program which
provides for the inspection of 20% of all rental units annually. An additional inspector was hired in
August to assist in the inspections.
Dan Ungerleider discussed the Rand Road corridor study, the United Airlines annexation study and the
administration of the TIF (tax increment financing) Program.
The discussion after the presentation centered on the Cook County tax structure, the legality of inspecting
the interior of multi -family units, and the future plans for the Village Hall property.
Members of the Finance Commission congratulated Bill Cooney and his staff for their success in
bringing new development to Mount Prospect.
IV Adjourns ttt
The meeting was adjourned at 11:30 p.m. The next meeting will be held on November 14, 1996.
Respectfully submitted, �
Carol L. Widmer
Assistant Finance Director
CLW/m
VILLAGE OF MOUNT PROSPECT
FINANCE DEPARTMENT
INTEROFFICE MEMORANDUM
TO: VILLAGE MANAGER MICHAEL E. JANONIS
FROM: DIRECTOR OF FINANCE
DATE: OCTOBER 18,1996
SUBJECT: BUDGET INFORMATION
Attached is a revised version of the Budget Introduction. It should be put in place of the original
version which appears between pages xvii and xxii in the proposed 1997 Annual Budget.
Also attached are the presentation outlines and graphics which will support my discussion of
revenues and the Finance Department budget for 1997 at the October 22 Committee of the Whole
meeting.
BRIAN W. CAPUTO
attachments
c: David Strahl, Assistant Village Manager
Department Directors
VILLAGE OF MOUNT PROSPECT
1997 BUDGET
BUDGET INTRODUCTION
The Budget Process
Public officials generally recognize that the preparation and adoption of the annual budget is one of
the most important duties they are charged with. However, the adoption of the budget is not an end
in itself, but it is just one step in an ongoing process. The process encompasses an extended period
of planning, review, and priority setting. When the budget is adopted, it then becomes the fiscal
plan which spells out how services will be provided and community improvements will be achieved.
After the budget is adopted, it also becomes a control mechanism by which to measure the resources
expended to meet the approved objectives and to measure the adequacy of the fiscal plan.
The current budget process in Mount Prospect formally starts in mid-August and concludes with
adoption of the Budget Ordinance on the third Tuesday in December. A calendar identifying the
specific dates for the 1997 calendar year budget and the tentative dates for the 1998 budget is
included at the end of this section. Following is a description of the various phases of this budget
process.
The first stage is an information gathering stage. Requests for services or improve-
ments are received from residents, community groups, elected officials and by
Village administrators. The estimated costs of these requests along with the estimated
costs for ongoing programs are determined and submitted by each operating
department and division. These requests are compiled by the Finance Department
and submitted to the Village Manager.
The second stage is a priority setting stage. The Village Manager and Finance
Director review the requests submitted with each department or division administrator
and priorities are established. These priorities are then balanced with expected
resources with the result being the Village Manager's proposed budget.
The third stage is a policy setting stage whereby the Village Board reviews the
proposed budget and establishes policies regarding revenue sources, tax levies and
the level of services to be provided during the budget year. The review by the
Village Board includes public work sessions as well as a formal public hearing.
During this stage the proposed budget may be increased or decreased depending on
the findings of the Village Board.
The next step is legislative in which the Village Board formally adopts the final
budget by Ordinance. The Village of Mount Prospect has adopted sections 5/8-2-9.1
through and including sections 5/8-2-9.10 of Chapter 65 of the Illinois Compiled Stat-
utes providing for an annual municipal budget in lieu of the passage of an appropria-
tion ordinance. Under these provisions the approved budget takes on a new meaning,
because upon adoption, it becomes the authorization to expend funds in the new
budget year. The Budget Ordinance must be adopted prior to the start of the fiscal
year and filed with the County Clerk within 30 days of adoption.
xvii
The Budget Process does not end with the adoption of the Budget Ordinance, it actually marks the
beginning of a new cycle. Services and programs will be evaluated, needs will be identified and then
the formal process will begin again for the next year.
During the budget year, the fiscal plan will be monitored and changes made as appropriate. When
priorities change or unanticipated expenditures are required, the Finance Director is authorized to
transfer budgeted amounts within a department or between departments within a fund. The Finance
Director must notify the Village Manager in writing of interdepartmental transfers. Any revisions
that increase the total expenditures of any fund must be approved by the Village Board of Trustees.
Expenditures may not legally exceed budgeted appropriations at the fund level.
The Budget Model
Generally Accepted Accounting Principles (GAAP) and Illinois statutes require an Illinois
municipality to account for revenues and expenditures on a "fund" basis. A fund is a separate
accounting entity which is organized with a set of self -balancing accounts that comprise its assets,
liabilities, fund equity, revenues, and expenses or expenditures. The General Fund, Motor Fuel Tax
Fund and the Water and Sewer Fund are examples of Village funds. Fund accounting segregates
funds according to their intended purpose and is used to aid management in demonstrating
compliance with finance -related legal and contractual provisions.
The Village uses the three following fund types:
Governmental Funds are used to account for the Village's general governmental activities
and include the General Fund, special revenue funds, debt service funds, and capital project
funds. Governmental funds use the modified accrual basis of accounting whereby revenues
are recognized when they are "measurable and available" and expenditures are recorded when
the related fund liability is incurred.
Proprietary Funds use the full accrual basis of accounting and include the enterprise funds
( Water and Sewer Fund and Parking Fund ) and internal service funds. Under the full
accrual basis, revenues are recorded when earned and expenses are recorded at the time
liabilities are incurred.
Fiduciary Funds account for assets held by the Village in a trustee capacity or as an agent
on behalf of others. Fiduciary funds include Village pension funds and are accounted on a
full accrual basis.
The budgets of the governmental funds are prepared on a modified accrual basis and the budgets of
the proprietary funds and the fiduciary funds are prepared on a full accrual basis. With the exception
of the treatment of depreciation, the budget basis is consistent with GAAP. Depreciation is not
shown in the budget, although the full purchase price of capital expenditures is included. A
reconciliation of this difference is provided in the Village's Comprehensive Annual Financial Report.
Although the Village is required to account for revenues and expenditures on a fund basis, the fund
structure is not necessarily the most appropriate model for reporting the delivery of services. Many
authorities believe that a budget organized on the basis of "programs" is more meaningful. A
program budget groups all the expenditures associated with a specific service, or program, regardless
of the fund from which the resources are obtained. A true program budget includes actual expendi-
tures for personnel, services and supplies as well as indirect expenditures or allocations for facilities,
equipment, and administrative services.
In actual practice there are a number of variations in the ways in which budgets are organized.
These variations range from a fund line -item, or appropriation budget, to a true program budget as
described above. The Village of Mount Prospect uses a "modified program budget" whereby
services, or programs, are organized around a department or a division. A department or division
is a unit that has been designated by management as a means for providing a specific service. The
Village's Fire Department and Street Division of the Public Works Department are examples of these
units of management. Thus the department or division is the way expenditure amounts are organized
in the budget rather than around a fund structure.
Under the Village's modified program budget structure, services or programs are designated within
the departmental or divisional unit. Each program includes line -item costs which are categorized by
personal services, employee benefits, contractual services, commodities and capital expenditures.
All costs which can be reasonably identified with the program are included regardless of the source
of funding. A summary page at the beginning of each budget expenditure section lists the program
totals, expenditure category totals, the source of funding, and extraordinary increases or decreases.
The Village complies with state and accounting mandated requirements to account for revenues and
expenditures on the fund basis by identifying each line -item expenditure within a department or
division with the fund that will provide the resources. These amounts are summarized at the
beginning of each departmental or divisional section and then included as an overall fund total in the
Budget Summaries Section. It should be noted that revenues are not departmentalized but are
reported directly in the appropriate fund structure in the Revenues Section. As a result, the Village's
Annual Budget fulfills legal reporting requirements as well as providing a meaningful way to present
the costs associated with a service.
The Budget Document
The Budget document has been organized in such a way as to provide varying levels of detail to
satisfy the information needs of Village residents, elected officials, advisory commission members,
Village administrators and other persons interested in the fiscal plan of the Village. The Budget
contains a Table of Contents which itemizes the general categories of information that are contained
in the six sections identified by the gray tabs. The six sections are: Introduction, Budget
Summaries, Revenues, Departmental Expenditures, Non -Departmental Expenditures and Appendix.
Each section may be reviewed independently or certain sections may be used to expand on the
information found in the Introduction or the Budget Summaries sections. A description of the
information found in the six sections follows:
Introduction - This section contains a list of Village officials, the Village Organization
Chart, and the Village Manager's Budget Message. The Village Organization Chart provides
an overview of the structure of Village government and the Village Manager's Budget
xix
Message is an essential first step in understanding the fiscal plan of the Village. It describes
some of the accomplishments of the prior year and defines the goals for the coming year
along with highlights of revenues and expenditures. The Budget Message sets the tone for
how Village services and public improvements will be accomplished in the new fiscal year.
Also included in the Introduction is a description of the Budget Process, the Budget Model,
the Budget Document, the Distinguished Budget Award and a Budget Calendar.
Budget Summaries - This section presents an overview of the fiscal plan for the coming
year through graphics and schedules. The total Village budget is presented graphically and
by a schedule which contains prior year actual figures, current year budget and estimated
amounts, the proposed budget amounts and forecast amounts for the next year. More
specific summary information is provided in a similar format for Revenues and Other Sources
and Budget Expenditures. Additionally, similar schedules are presented for Revenues By
Fund, Expenditures By Fund, and Available Fund Balances at the start and at the end of the
budget year and the forecast year.
This section also provides supplemental information regarding Authorized Positions, Personal
Services, Property Taxes, Long -Term Debt, the results of the Park Ridge Survey of the cost
of Municipal Services, and finally, a profile of the Village of Mount Prospect.
Revenues - This section provides an explanation of revenue sources expected to finance the
Budget along with a summary of revenues by category and a summary of revenues by fund.
These summaries are followed by detail line -items that are totaled by category within a fund.
The summary pages in this section are the same as the summary pages in the Budget
Summaries Section.
Departmental Expenditures - This section of the Budget contains specific information
regarding each operating department, division and/or program. Each sub -section contains
an organization chart, mission statement, accomplishments, objectives for the budget year,
departmental activity, detail line -items totaled by expenditure classifications within a
program, and supplemental summary information regarding the number of authorized
employee positions, personal service costs, and capital expenditures.
The specific pages are color -coded to help identify the information: blue is used for general
information, black for budget line -items and brown for supplemental information. Each sub-
section is complete in itself and the totals for each sub -section provide the basis for the totals
in the Budget Summaries Section.
Non -Departmental Expenditures - Expenditures which are not associated with an
operating department or division are included in this section of the Budget. Capital
Improvements, Debt Service, Pensions, Insurance and Contingencies and the Mount Prospect
Library, a component unit, are the specific sub -sections included under Non -Departmental
Expenditures. Generally the information in this section is similar to what is provided under
Departmental Expenditures with the exception of the organization charts.
Appendix - This section includes a copy of the Budget Ordinance and a Glossary of fiscal
terminology that is unique to governmental finance and budgeting. For example, the terms
XX
revenues, expenditures, General Fund and available fund balance, along with many other
fiscal terms are included in the Glossary.
A user of the Budget who is looking for an overview or a general picture of the Village's pians for
the coming year can usually find this information in the Introduction or the Budget Summaries
sections of the Budget. A user who is interested in a more comprehensive picture, would be directed
to the Revenue, Departmental Expenditures and/or Non -Departmental Expenditures sections along
with the appropriate summary and supplemental information. Terminology in the Budget that may
not be clear, generally will be found in the Glossary in the Appendix section of the Budget.
After almost six months of planning and critical review, the Budget becomes the Fiscal Plan for the
new budget year. However, just as other plans are subject to change the Village's fiscal plan
(Budget) is subject to change during the year. Emergency situations, emerging needs, new
opportunities and unforeseen obstacles may require a change in plans during the year. When these
circumstances arise, appropriate action will be taken. If the change involves reassigning priorities
within a fund, Village management is authorized to make these changes. If the change requires an
expenditure that will exceed the amount appropriated for a specific fund, the Village Board will be
requested to amend the budget.
Thus the Budget is a dynamic plan that fulfills its purpose of providing the fiscal framework for
providing services to Village residents during the budget year and serves as a basis to plan for the
future.
Introduction of a Capital Improvements Plan
The Village of Mount Prospect will expand its 1998 budget process to include the formulation of a
Capital Improvements Plan (CIP). The CIP will be the Village's multi-year, prioritized plan for
meeting its needs for replacement, upgrade, and expansion of infrastructure and certain other long-
lived, high-cost assets. Development of the CIP will precede work on the annual operating budget.
Projects programmed for the first year of the CIP will be given special consideration for inclusion
in the upcoming year's operating budget.
Budget Award
The Government Finance Officers Association of the United States and Canada (GFOA) presented
an award for Distinguished Budget Presentation to the Village of Mount Prospect for its annual
budget for the fiscal year beginning January 1, 1996. In order to receive this award a governmental
unit must publish a budget document that meets program criteria as a policy document, as an
operations guide, as a financial plan and as a communication device. The award is valid for a period
of one year only. We believe our budget continues to conform to program requirements, and we
are submitting it to the Government Finance Officers Association to determine its eligibility for
another award.
xxi
n7
GOVERNMENT FINANCE OFFICERS ASSOCIATION
i►
Budget Presentat w*n
Award
PRESENTED TO
Village of Mt. Prospect,
Illinois
For the Fiscal Year Beginning
January 1, 1996
Presi"t YExecutive Director
Presentation Outline
* Department Functions
• 1996 Accomplishments
• 1997 Objectives
Overall Department Budget
Department Structure and Personnel
• Village -Wide Computer Training
Other Professional Services
• New Accounting Software
Finance Department
1 i 1
Functions
• Recording and Reporting All Financial Transactions
• Billing and Collecting Monies Due the Village
• Cash Management
• Preparing the Annual Municipal Budget
• Preparing the Annual Financial Report
• Financial Forecasting
• Debt Administration
• Managing the Insurance Program
• Pension and Benefits Administration
• Data Processing
19966� 11111111111111111111111111111111111111111111
Accomplishments
GFOA distinguished Budget Presentation
Award
Coordinated $3,150,000 Bond Issue
Developed Methodology for a Computer :Replacement
Fund
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VILLAGE OF MOUNT PROSPECT
FINANCE DEPARTMENT
Village Manager
Finance Director
Risk Executive
Management Secretary
Assistant Finance
Director
Data Processing
Accounting
Cuafbme[ So '-
Division
Division
Division
Data Processing
Accounting
Customer Service
Supervisor
Supervisor
Supervisor
Data Entry
Accountant
Account Clerks
Operator
(2)
PC Specialist
Account Clerks
Switchborad
Part Time
(2)
Part Time
(2)
Clerical
Part Time
(3)
Deficiencies of Current Accounting Software
• Running Errors
• Poor Technical Support
• Design Flaws
• Unforgiving
• Not User Friendly
• Poor Documentation
• Reports and Forms
Report Writer is Difficult to Use
• Limited Multi -Tasking
• Not Compatible With G.I.S.
• Accounting Limitations
1. barl r
.. 3 LIZ=
Presentation Outline
6 ;Budget Concept
Is Budget Process
• Revenues
- Overall
- Property Taxes
- Sales Taxes
- Home Rule Sales Taxes
- Utility Taxes
- Licenses, Permits, and Fees
- State Income Tax
- Motor Fuel Tax
- Water & Sewer Charges
- Internal Service Fees
- Investment Income
- Interfund Transfers
- Bond Proceeds
• Expenditures
- Overall
• Disaster Response Contingency
Capital Improvements Flan
Ill
�` '" /`
Budget Process
1. Distribution of Worksheets
2. Departments Submit Budget Requests
3. Village Manager Reviews and Revises
4. Village Manager Submits Proposed Budget
5. Proposed Budget Discussed by Finance
Commission and Committee of the Whole
6. Village Board Adopts Budget
7. Budget Published
�Revenues &' I!urc
—1
Where Property Taxes Go
VILLAGE OF MOUNT PROSPECT
SALES TAX REVENUE
1987- 1997
VILLAGE OF MOUNT PROSPECT
STATE INCOME TAX REVENUE
1987- 1997
Computer Replacement Fund
Provide for Replacement of Computer
Hardware
• pease Payments
• Useful Lives
- PCs - 5 years
- Monitors - 5 years
- Printers - 7 years
• Seed Money
Expenditures
COST OF MUNICIPAL SERVICES PER RESIDENT
CITY OF PARK RIDGE SURVEY
Average
Cost
COST OF MUNICIPAL SERVICES PER RESIDENT
CITY OF PARK RIDGE SURVEY
January 1996 1
Expenditures
Rank Municipality Per Capita
I
Winnetka
$1,577
2
Wilmette
1,464
3
Niles
1,158
4
Northbrook
1,104
5
Elmhurst
1,089
6
Skokie
1,017
7
Oak Park
1,015
8
Naperville
1,014
9
Schaumburg
1,004
10
Glenview
999
11
Arlington Heights
994
12
Downers Grove
936
13
Des Plaines
826
14
Park Ridge
766
15
Mount Prospect
757
IMEAN 1,048 �j
Disaster Response Contingency
1. Allow the contingency to remain in
General Fund fund balance.
2. Create a separate fund.
3. "designate" a portion of General Fund
fund balance.
Capital Improvements Plan
Multi -Year, Prioritized flan
Infrastructure and Other Long -Lived, High -Cost
Assets
C 1P Development Will Precede AnnualBudget Work