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HomeMy WebLinkAbout6.1 Monthly Financial Report - July 2021Mr�GauC �'d'+rt;�iect Item Cover Page Subject -2021 Meeting September 21, 2021 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD - Fiscal Impact Dollar Amount Budget Source Category CONSENT AGENDA Type Consent Information Attached is the Monthly Financial Report for July 2021. Alternatives 1. Accept the Monthly Financial Report for July 2021. 2. Action at the discretion of the Village Board. Staff Recommendation Accept the Monthly Financial Report for July 2021. ATTACHMENTS: Monthly—Report _July_2021. pdf 07 July Board Reports for Upload .pdf 1 VILLAGE OF MOUNT PROSPECT MONTHLY FINANCIAL REPORT July 31, 2021 Prepared By Amit Thakkar, CPA Director of Finance TO: VILLAGE PRESIDENT, BOARD OF TRUSTEES, AND FINANCE COMMISSION FROM: AMIT THAKKAR, DIRECTOR OF FINANCE DATE: SEPTEMBER 5, 2021 SUBJECT: MONTHLY FINANCIAL REPORT FOR THE MONTH OF JULY 2021 In our effort to provide the most transparent and relevant financial information in a timely manner, we are submitting this report herewith. The report contains relevant data with analytical information for the Village's current financial affairs. The report is prepared based on the most recent available financial information (internal and external). The report is divided into five sections, including a) Cash and Investments, b) Revenues, c) Expenses, d) Fund Balance Analysis, and e) Other items that may contain relevant new issues and items representing and impacting the Village's financial interest and well-being. a) Cash and Investments The Village of Mount Prospect maintains a sufficient liquid cash balance at various banking and investment institutions for the smooth operation of the Village's day-to-day activities. The remainder of the cash assets are invested in multiple interest-earning accounts and investment options in accordance with the Village's Investment Policy. As of July 1, 2021, the beginning Cash and Cash Equivalents totaled $57.7 million. During the month of June, the Village had cash receipts totaling $7.7 million. The investment income for the month totaled $1,081. The payroll cost for the month was $1.7 million, and accounts payable were paid in the amount of $5.2 million. The inter -fund activity increased the cash position by $3,908, while other disbursements totaled $17,189. As of July 31, 2021, the Village's Cash and Cash Equivalents totaled $58.5 million. GOVERNMENTAL, AND ENTERPRISE FUND'S Balance at July 1,, 2021 Cash receipts Investment income Transfers from investments to cash Transfers to investments from cash Interfund activity Disbursements:. Accounts payable Payroll Other Balance at July.. 31.,, 2021 Cash and Cash Total Cash and Equivalents Investments Investments $ 57.,1098.,1995 $ 10.,,932,800 $ 74,10,31.,1794 7.,1711.,1283 - 7.,1711.,1283 1.,1081 19,,815 20.,1896 3,9,08 3,9,08 (5x.,,19°0.,,011) (5.,1190.,,611) (1.,16,68.,1888) (1,16E,8,1888), (17.,1189) (17.,1189) $ 58.,1538.,1578 $ 16,,952,,014 $ 75.,1491.,1193 As of July 31, the Village has a total of $17.0 million invested in long-term investment options, including U.S. Treasuries, AAA+ rated money market Funds, and FDIC insured CDs. The Cash, Cash Equivalents, and Investments totaled $75.5 million as of July 30, 2021. 2 The below table summarizes the Cash and Cash Equivalents by Fund type. Fund Details Amount General Fund $ 20,543,826 Special Revenue Funds 6,691,566 Debt Service Funds 4,395,879 Capital P'roj�ects Funds 6,290,942 Enterprise Funds 16,684„891 Internal Service Funds 3.932.486 Total Cash and Cash Equivalents $ 68,638,678 In addition to the funds summarized above, the Village of Mount Prospect has $1.0 million in the Escrow Accounts under the umbrella of Other Trust and Agency Funds. b) Revenues The below data summarizes the revenue recognized by the Village through July 2021. Property Taxes OtherTexes lntergovernmentell Revenue Licenses, IPermits &bees Charges Icor Services Fines & Forfeits Investment (Income Either Financing Sources OtherRRevenue Reimbursements Total Revenues 20,565,258, 10,8005,1440 52.5% 13,0445,509 (2,2440,368) 13,,300,,000 5,3446�,8,96f 440.2% 44,661,001 68,5,3944 443,,756f,3443 21,,4471,975 449.1% 144,1066,4452 7,4405,513 3,067,000 2,,570,,786, 83.8% 2,233,167 337,619 35,925,4468, 21,,123,919 58,.8;% 1%1.31,886f 1,992,,033 4458,µ500 3442,,027 744.6% 182,000 160,,1027 4450,,501 15,5609 3.5 3644,6044 X3449,035) 16f,9440,,000 3,,10116944 18,.3% 3,4423,157 43 21,,4463) 2,,269,920 1,,296,4487 57.1% 1„4420,205 123,,715) 44445,000 18'3'2G9 441.2% 205, 357 (22,149) 137117719190 66r, 257, 700 49.1'% 5,91 73.3, 348 7152413,53 The above amounts do not represent all the revenues to be recognized for the period under review. There are certain state taxes, such as sales tax, home rule sales tax, and a few other taxes, that will be received by the Village in August 2021 and later. Additionally, during the month of July 2021, the Village received the following revenues from the State, which relate to a period prior to June 2021. These amounts are distributed after the State administrative fee deductions of $8,921. 3 �State S,alIes Tax ;fpr -21 Jul -21 gull -21. 2,,379,1.67 (dome Rule Sales, Tax Apr -21.. Jull-21 Julll-21.. 51.2,572 8usiiness DlistrliicltTax Apr -21 July -21 Julll-21. 25,,47,00 Auto Rental Tax Apr -21 July -21 Julll-21. 2,,854 Telecom Tax Apr -21. July -21 Julll-21. io%wo ................................................................................................................................................................................................................................................................................................................... Total Revenues 5 x,02911863 The actual year-to-date revenue received by the Village is $66.3 million. This amount represents 48.3 percent of the annual budget. The collected amount is tracking higher by $7.5 million compared to the 2020 collections for the same period. Property Taxes: The Village's total levy for the year is $19,469,004. The total property tax revenue budget, including TIF revenues, is $20.6 million. The first installment was due at the County in March 2021, but Cook County granted an extension to May 3. Due to the extension, the property tax collection was lagging behind until May 2021. The Village has collected $10.8 million through July 2021. The amount collected represents 52.5 percent of the 2021 annual budget. The second installment due date is also extended to October 2021. The extension resulted in lower collections for July 2021, as the second installment payment will be extended in October and November. The YTD property tax collection is lagging behind by $2.2 million due to the extension. Other Taxes: The category of Other Taxes includes all the taxes enacted per local ordinances and includes Home Rule Sales Tax, Hotel/Motel, Food and Beverage, Municipal Motor Fuel Tax, Utility Taxes, etc. As some of these taxes are collected by the State, there is a three-month lag between the actual sales and the remittance of the tax. In addition, all the local economic activities for the month of July are reported in August or later. The comparative total revenue amounts under this category are tracking higher by $685,894. The total year-to-date collection is $5.3 million and represents 40.2% of the annual budget. Intergovernmental Revenue: This category includes all the State shared taxes, including State Sales Tax, Income Tax, Use Tax, Motor Fuel Tax, and Grants. The Village is vigilantly tracking all the intergovernmental revenues. Recently, the LGDF (Local Government Distributive Fund) and the Local Use Tax have performed beyond the Village's expectations. Both of these items are distributed as per capita items. In spite of COVID-19, the State Income Tax collection has outperformed previous years' collections, and Local Use Tax has outperformed due to increased online sales. The Village received both installments of the Rebuild Illinois Grant ($1,189,940) through July 2021. Through July 2021, the Village also received $3.5 million from the U.S. Treasury under the American Rescue Plan. Additionally, increased income tax, use tax, and sales tax collection contributed to an overall increase of $7.4 million compared to 2020 collections. Through July 2021, the Village has received $4.7 million in State Income Taxes, which represents 89.3 percent of the annual budget. Through July 2021, the Village has received $1.2 million in Use Taxes, or 65.8 percent of the annual budget. The year-to-date Sales Tax collection is $8.8 million, which actually represents sales taxes from January to April as there is a three months lag in sales tax collection. The year-to-date sales tax collection is 38.2 percent of the annual budget. License & Permits: The Village has collected $2.6 million in License & Permit Fees through July 2021. The amount represents 83.8 percent of the annual budgeted amount. The Village has collected $1,387,675 in Vehicle Stickers, $611,492 in various non -business license fees, and $571,619 in various Business License Fees through July 2021. 10 Charges for Services: The Village has received $21.1 million in Charges for Services. The amount includes water/sewer/refuse charges and also internal service payments, including vehicle maintenance and vehicle replacement lease payments. The collected amount represents 58.8 percent of the 2021 annual budget, and the collection is $2.0 million higher compared to the 2020 collection at the same time last year. Other Categories: All other revenue categories have collectively generated $1.8 million through July 2021. c) Expenditures The below data recaps the expenditures incurred during the month of July 2021 10 IpubIliic (Representation 574,,1,53 1.1.3,199 284,,395 49.5% 20 Village Administration 4,,8+02,963 343,,016, 2,,232,,108 46.5% 30 IFinance 2,,230,,348, 166,335 1„070,,898 48,.0% 40 Community Development 4,01.7,,07.5 231.,,847 1„�8168,412 46.5 50 Human Services 1„223,,840 95,,100 648,,992 53.0% 6O IPolice 20, 78,0,,066 1,291,658, 11,227,850 .54.0% 70 IFire 18,532,,011 1„079,,6,32 %878,313 53.3” SO IPublic Works 61„372,,8:99 3,,763,,541 24,,432,,661 39.9% OO INon-Departmental .......................................................................................................................................................................................................................................................................................................................................................................................... 23,994,,096, 3,,615,,879 1.1.,,245,245 46.9% Total Expenditures 137?527'?451 lOP70OP208 62„888,„826 45.7 The above amounts do not include the expenditures for the Pension Funds as they are separate entities. The above amounts are unaudited and subject to change with accrual/audit adjustments Personnel 51„396,130 27,,674,525 53.8% Contractual Services 34,944,000 19,31.4,239 55.3% Supplies, 2,,333,,901 1„217,,206 52.2% Capit'aIIlImprovements 32,,684,,560 9,,420,,32,5 28.8% Debt', Service 10,, 287,, 668, 2,296,744 22.3a Other Expenditures 5,981„192 2,965,837 50.4% Total Expenditures 1371527,451 62,1888,P876 45.7% Personnel Costs: The year-to-date expenditures for Personnel Costs, including benefits, are $27.7 million or 53.8 percent of the annual budget. The overtime costs through July 2021 are $1,261,018, while the overtime costs at the same time last year were $983,406. In 2020, the Village did not have any major public sponsored events due to COVID-19 restrictions in 2020, and it resulted in lower overtime costs than in any given normal year. 5 Services: - This category covers the majority of the contractual services that include some large line items, including JAWA water purchases, budgeted and grant -funded engineering studies, and other contracts. The year-to-date expenditure is $19.3 million, and the Village has spent 55.3 percent of the budgeted amount through July 2021. Supplies: The Village has spent $1,217,206 in supplies through July 2021. The spending totals approximately 52.2 percent of the approved budget. Capital Improvements: The Village has $32.7 million in approved capital improvement projects for the year 2021. The amount includes $4.6 million of carried over projects from 2020. Through July 2021, the Village has started working on various approved projects and has paid $9.4 million or 28.8 percent of the approved budget in Capital Improvement costs. Debt Service: Per the established debt service schedules, the Village's bond payments are due on June 1 and December 1. The Village has processed debt service payments totaling $2.3 million through July 2021. The remainder of the payments are due on December 1 and the Village will be processing those payments a few days before the established due dates. Other Expenditure: The Other Expenditure category includes interfund transfers and a few miscellaneous items. The interfund transfers are expected to be executed during the third quarter of 2021. d) Fund Balance Analysis: The fund balance is an essential tool to check the fiscal health of any governmental organization. The below data summarizes the Village's monthly unassigned/unrestricted General fund reserves. The fund balance data is unaudited. Revenues - Unaudiited 11,598.,637 1,188.,133 2,625,464 7,074,858, 5,236,962 8.,666,638. 4,048.,8,27 4,313,98.3 Expenses- Unaudiited (8.,38.2,749) (2,437,218.) (4,56-6,468.) (6,262,313) (,5,196,997) (4,135-,761) (4,336,123) (6,278.,458.) Net Monthly surplus/(Deficit) 3,215,298 (1„249,684) (1„941,003) 872,545 39,965 4,464,937 (281„296) (1„964„475) Beginning Unrestricted Reserves 26,277,11811 23,492,469 22,243,385 26,362,38,2 211,1174,926 211,2114,8,32 22,116,5,8,34 211,994,538 K -K b o bex As % of General (Fund Budget 37% 35% 32% 34% 34% 35% 35% 35% As.. % of General (Fund Budget 23% 25% 28.:% 34% 34% 35% 35% 35% (Unaudited and Subject to Change) At the end of December 2020, the Village was carrying $14.6 million in unencumbered cash and cash equivalents, while the unrestricted reserve balance was $23.5 million. The unencumbered cash balance is the actual Cash Balance reduced by outstanding Accounts Payable at the end of the month. The gap between the Unassigned Fund Balance and the unencumbered cash balance narrows as the year progresses. In July 2021, the Village executed the interfund transfer of $2.3 million from the General Fund to Flood Control Construction Fund. The transfer resulted in a release of a restricted fund balance of $2.3 million. The Village received $3.5 million in May from the American Rescue Plan. The amount is treated as a restricted fund balance and is not included in the above -reported fund or cash balances. At the end of July 2021, Unrestricted Fund Balance and Unencumbered Cash Balance are $22.2 million and $22.4 million, respectively. The Village is in compliance with its fund balance policy, and good financial health is depicted by the reported fund and cash balances. 0 e) Other Items: a. During July 2021, the Village issued 148 real estate transfer tax stamps, of which 44 were issued as exempt stamps and 104 were non-exempt. During July 2021, the Village collected $116,028 in real estate transfer taxes, and the average selling price for the real estate was $371,745. At the same time last year, the Village sold 166 transfer tax stamps, of which 56 were exempt and 110 were non-exempt. The Village collected real estate transfer taxes of $139,752 in July 2020, and the average selling price was $423,423. b. Through the date of this report, the Village has seen an increased collection of the State Income Tax. The Village has collected $5,098,707 in the State Income Tax revenues against the budgeted amount of $5,254,200 for the year. The collection represents 97.0 percent of the annual budget. The Income tax revenue is expected to outperform and provides great support for the Village's operations, as well as in avoiding unusual property tax increases. c) The Village of Mount Prospect is in great fiscal health, and the financial figures are showing positive signs of recovery from the impact of the COVID-19. Added population per the most recent census is expected to bring additional per capita allocation for motor fuel tax, use tax, and income tax. d) Starting July 2021, the Adult Use Municipal Cannabis Tax became applicable. The first allocation for the Municipal Cannabis Tax will be received from the State in October 2021. e) The staff is currently working on the operating budget for the year 2022. The 2022 budget book will have an environment -friendly digital version of the budget book, which is being implemented currently. The budget book is expected to be available in the first week of October 2021. Respectfully Submitted, Amit Thakkar Director of Finance 7 RE 0 C�w�71 C ✓ik 1 IIII�� � u .'b W Wx0,.f C' I�,.�� rb ..... C II II.... trd YNF CNX ) �����. �w ��2��8 ... �........... WYy t od'7u C. 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