HomeMy WebLinkAbout08/14/2007 COW agenda
COMMITTEE OF THE WHOLE
AGENDA
Meeting Location:
Mount Prospect Village Hall
50 South Emerson Street
Meeting Date and Time:
Tuesday, August 14,2007
7:00 p.m.
I. CALL TO ORDER - ROLL CALL
Mayor Irvana K. Wilks
Trustee Timothy Corcoran Trustee John Korn
Trustee Paul Hoefert Trustee Richard Lohrstorfer
Trustee Arlene Juracek Trustee Michael Zadel
II. ACCEPTANCE OF MINUTES OF COMMITTEE OF THE WHOLE MEETING OF JULY 24, 2007
III. CITIZENS TO BE HEARD
IV. 2007 MID-YEAR REVIEW AND UPDATE OF THE 2008 BUDGET FORECAST
Each year, the Village Board engages in a mid-year review of the current budget as a means of
monitoring the revenue and expenditure levels contained therein. In addition, the Village Board also
engages in a pre-budget workshop, specifically designed to look forward to the upcoming budget year
with the idea of setting fiscal parameters and giving staff direction for preparation of next year's
budget.
With the close of June financial activity, staff is in position to present mid-year financial data for 2007
as well as review the 2008 forecast budget. Except for the declining housing market, the Village
continues to feel the effect of an improving economy. State shared revenues such as Income, Use,
and Replacement taxes are up from the prior year. Sales taxes are also up from the prior year and
are expected to exceed current year projections. The Real Estate Transfer Tax has been negatively
impacted by the downturn in the housing market. The balance of general revenues are at or above
budget projections. We expect the General Fund to end 2007 with a surplus of $387,442. This is
based on projected revenues of $38,580,426 and projected expenditures of $38,192,984. The
Village's 2008 budget forecast for the General Fund shows a slight deficit of $239,286. It is expected
that this deficit will be reduced during the budget process for 2008. Discussion will also focus on
significant items in other Village Funds.
Staff has prepared a comprehensive memorandum detailing the Village's financial condition for both
the balance of 2007 and forecast of 2008. Staff will also share its current budget preparation strategy
and look to the Village Board for direction regarding the upcoming budget. Appropriate staff will be on
hand to answer questions and facilitate discussion
NOTE: ANY INDIVIDUAL WHO WOULD LIKE TO ATTEND THIS MEETING BUT BECAUSE OF A
DISABILITY NEEDS SOME ACCOMMODATION TO PARTICIPATE, SHOULD CONTACT THE
VILLAGE MANAGER'S OFFICE AT 50 SOUTH EMERSON, MOUNT PROSPECT, ILLINOIS 60056,
847/392-600 EXTENSION 5327, TOO #847/392-6064
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V. FUND BALANCE POLICY
In 1999 the Village Board adopted a resolution establishing a fund balance/reserve policy for the
Village of Mount Prospect. The policy established reserve levels for all general, special revenue, debt
service, enterprise, internal service and trust funds managed by the Village. General guidance on
utilization of reserves was included at that time as well.
Over the past six years fund balances for many operating and capital funds have fluctuated greatly as
a result of the economic downturn and subsequent recovery. While the overall fiscal condition of the
Village remained strong throughout this time, it became clear that additional direction as to the
management of fund balance would be beneficial for the Village Board and staff. Reserve levels for
each major fund and fund type are included in the updated policy. These reserve levels did not
change from what they were originally set at in 1999. Expanded upon in the updated policy are
detailed action steps for when reserves fall below or exceed the recommended level. Of primary
importance are the General and Capital Improvement Funds. The General Fund is the Village's main
operating fund while the Capital Improvement Fund has been dependent upon operating transfers to
support ongoing capital project requests.
Included in this packet is a draft fund balance policy which builds off of the existing policy and an
analysis of fund balances estimated for December 2007. Staff will present recommendations for the
comprehensive fund balance policy and will be available to answer questions and facilitate discussion.
VI. PERMANENT FUNDING SOURCE FOR CAPITAL PROJECTS
Prior to 2002, the Village transferred surplus funds annually from the General Fund to the Capital
Improvement Fund to support mid-range capital projects. Mid-range projects paid for from the Capital
Improvement Fund are those too costly to be paid for out of the operating budget, but not of sufficient
size to warrant or justify the cost of a bond issue. Since it does not appear that annual transfers from
the General Fund will resume and considering existing fund balance in the Capital Improvement Fund
is almost depleted, a permanent funding source is needed. It is estimated that between $750,000 and
$1 million of annual funding is required to support mid-range capital projects of the Village. The need
for a permanent revenue source had first been brought before the Village Board and Finance
Commission during 2006 budget process.
Staff has included in the agenda packet a comprehensive memo providing alternatives for the
permanent funding source for capital projects. Staff has prepared a presentation to discuss these
alternatives and will be available to answer questions and facilitate discussion.
VII. MARKETING PLAN PROPOSAL
As the redevelopment of Downtown Mount Prospect progresses and plans for changes at Randhurst
Shopping Center take shape, the Village is poised to enter a new era of community vitality. The need
is greater than ever for the Village of Mount Prospect to establish itself as an attractive, exciting and
vibrant community for both businesses and consumers.
To maximize Village resources and staff effectiveness, an interdepartmental marketing plan is
proposed. A marketing plan would draw efforts together to create materials with a cohesive message
and image in a professional and attractive package. To take advantage ofthese exciting changes, the
Village's assets should be identified and capitalized on so that once new developments are in place
new and existing businesses can be promoted to a larger customer base.
It is the recommendation of staff that a Marketing Plan for the Village be developed. The time to take
action is now so that the marketing plan is in place over the next few years as redevelopment projects
come on line. These elements should be included in the budget planning cycle for 2008 and beyond.
Staff will be on hand to answer questions and facilitate discussion.
VIII. ANY OTHER BUSINESS
IX. ADJOURNMENT