HomeMy WebLinkAbout13.1 2022 BUDGET AND COMMUNITY INVESTMENT PLAN - JOINT VILLAGE BOARD AND FINANCE COMMISSION SECOND WORKSHOPMr�GauC �'d'+rt;�iect
Item Cover Page
Subject•COMMUNITY
JOINTPLAN - BOARD
COMMISSION SECOND• •
MeetingOctober 19, 2021 - REGULAR MEETING OF •
PROSPECT.BOARD
Fiscal Impact
Dollar Amount
Budget Source
Category 2022
JOINT•A'D AND FINANCE COMMISSION
SECO 1 �► ■'
Type
Discussion Item
Information
This is the second Joint Workshop with the Village Board and the Finance Commission for a
review of the overall proposed 2022 Budget and Five -Year Community Investment Plan
(CIP). The first workshop was held on October 12, 2021. The second workshop will cover
the operating budget for Community Development, Police and Fire as well as analysis of
Village's Operating Budget.
The spending plan being presented is a responsible and transparent financial plan that
incorporates key policies and priorities established by the Mayor, Board of Trustees and
Finance Commission. The Proposed Budget for 2022 expenditures totals $155,196,933, an
increase of $17.7 million, or 12.8% from the amended 2021 Budget. The increase is
primarily the result of increased investments in water and sewer projects including $6.9
million in Rand -Central -MP Road Intersection Improvements and $5.5 million in Emergency
Water Interconnect.
Expenditure
Category
2022 Budget
2021 Budget Increase
/ (Decrease)
percent Change
Village Operating
Budget
79,152,546
77,377,150 1,775,390
2.9%
Community
Investment
45,560,681
33,560,368 12,000,313
35.8%
Program
1
Debt Service
2022 Budget
2021 Budget Increase /
percent Change
Budget
8,707,111
8,903,318 (196,207)
-2.2%
Internal Service
11,979,095
11,919,615 59,480
0.5%
Funds
13,304,500
13,300,000 4,500
0.00/0
Business District
1,285,500
1,390,000 (104,500)
-7.5%
Fund
Prospect/Main TIF
737,000
237,000 500,000
0.00/0
Dist. Other
Transfer Out
7.775,000
4,14U, 000 3,635 000
87.8%
Total
155,196,933
137,527,451 17,669,482
12.8%
Expenditures
541,000
458,5001 82,500
18.0%
The operating budget will see an increase of $1.8 million or 2.3% from the 2021 Budget.
The 2022 operating budget also includes $143,697 for any unknown contingency and will
be spent subject to Village Board approval. The 5 -year Community Investment Plan
includes CIP spending for the year 2022 totaling $45.6 million. The total CIP spending will
be $12.0 million higher compared to 2021 amended budget. The total debt service
payments for FY 2022 will be $8.7 million. During FY 2022, a total of $5.1 million will be
repaid in outstanding principal debt, while the total interest payment will be $3.6 million.
The current plan also includes the issuance of $10.0 million in new debt/bonds for the
Water/Sewer fund per the approved 2017 rate study. The 2022 bond issuance will be the
last of its current series and will help the Village in bringing the critical water system
infrastructure replacement cycle from 600 years to 120 years. Increases of $500,000 in the
TIF expenditures are for payments to be made per the existing redevelopment agreements
and reduced revenue of $104,500 for the Business District Fund due to the Novel
Coronavirus (COVID-19) is resulting in lower interest payment on the business district
note.
The 2022 revenue budget totals at $154,130,092, an increase of $16,952,102 or 12.4
percent. The increase was primarily the result of increased intergovernmental revenues
due to project grants. The 2022 budget includes various capital project grants totaling
$15.5 million from the American Rescue Plan, Surface Transportation Program Grant (STP),
Congestion Mitigation and Air Quality Grant (CMAQ), and other State Grants.
Revenue
2022 Budget
2021 Budget Increase /
percent Change
Category
(Decrease)
Property Taxes
20,873,259
20,565,258 308,001
1.5%
Other Taxes
13,304,500
13,300,000 4,500
0.00/0
Intergovernmental
54,713,145
43,756,343 10,956,802
25.0%
Revenue
Licenses, Permits
3,008,000
3,067,000 (59,000)
-1.9%
& Fees
Charges for
38,333,258
35,925,468 2,407,790
6.7%
Services
Fines & Forfeits
541,000
458,5001 82,500
18.0%
2
Investment
Income
118,070
450,501 (332,431)
-73.8%
Other Revenue
2,261,860
2,269,920 (8,060)
-0.4%
Reimbursement
397,000
445,000 (48,000)
-10.8%
Other Financing
20,580,000
16,940,000 3.640,000
21.5%
Sources
Grand Total
154,130,092
137,177,990 16,952,102
12.4%
The most recent census data has shown an encouraging growth in the population. The
official Village population increased from 54,167 in 2010 to 56,852. The State of Illinois
distributes Income Tax, Motor -fuel Tax and State Use Tax on a per capita basis. The Village
is expected to gain $300,000 in additional revenues in the above-mentioned per capita
items. Recently, the Village has seen an unusual increase in the Income Tax and Use Tax
revenues. The 2022 budget has also captured the growth in both of these revenue sources
after confirming their stability in the 2020 and 2021 actual amounts.
An increase to the combined water and sewer rate of 8.0 percent is also included in this
Proposed Budget to fund an expanded water/sewer main replacement program. These
increases are required in the 2017 water rate study and subsequently approved by
ordinances. The plan also includes a 3.5 percent increase in the refuse rates.
Through this budget, a new Storm Sewer Utility Fee is being introduced. The Storm Sewer
Utility fee of $5.00 each month per customer will provide an approximate funding source of
$1.0 million. This fee will be paid by all the residents and businesses of the Village,
irrespective of the fact that if they are on the Village's current water and sewer system or
not. The collected amount will provide much needed funding for storm sewer and flood
control projects. Currently, the Village assigns one-quarter of one percent of the collected
sales tax revenue to the Flood Control Fund, but the major part of this funding is tied to
debt service payments until 2033. The remaining revenue sources are not significant and
the Village has used $6.7 million from the General Fund reserves to fund critical flood
control projects. The use of reserves for the flood control and storm sewer project is not
sustainable in the long run and there is a severe need to establish a dedicated funding
source.
The General Fund operating expenses are budgeted at $59.1 million, an increase of $2.1
million from the amended 2021 budget of $57.0 million. Of the $2.1 million, $1.5 million is
due to hiring of six firefighters, an additional Social Case Worker, and wage increases for
both union and non-union employees. The remaining amount represents inflationary
/market rate adjustments for supplies, contractual services and other items. The General
Fund non-operating expenditures includes Community Investment Program items totaling
$2.3 million and various transfers out totaling $7.78 million. The transfer out from the
General Fund supports various capital projects for the year 2022. The transfer out also
includes $5.0 million from the American Rescue Plan to the Capital Improvement Fund for
qualified items.
The financial position of the Village remains very strong. Reserve levels in recent times
KI
have continued to exceed our expectations as a result of revenue growth and responsible
spending plans. Total available balances (excluding pensions) at December 31, 2021 are
projected to be $61.9 million. Of this amount, $24.4 million are reserve balances in the
General Fund, the Village's main operating budget. The General Fund reserves as a percent
of 2022 expenditures is 35.0 percent. It is important to note that not all the fund balance is
in liquid form. Some portion of the fund balance is occupied by the accounts receivables
and it is not available immediately. At 35 percent of accounting fund balance, the Village
normally have a cash balance, which may equate to 25% of the annual expenditures. The
Village's fund balance policy calls for the General Fund to maintain a reserve level of
between 20.0 and 30.0 percent. Strong reserves and annual budgets that are balanced are
two factors contributing to the strong bond rating assigned to Village debt.
The Community Investment Plan (CIP) for 2022-2026 totals at $151,978,841. Of this
amount, $45,560,681 will be invested in 2022. CIP plan is posted on the Village's website
along with the other budget items.
Program
2022
2023
2024
2025
2026
Total
Water System
12,435,000
4,565,000
6,350,000
7,970,000
7,385,000
38,705,000
Sanitary System
1,620,000
2,505,000
1,000,000
1,000,000
1,000,000
7,125,000
Flood Control
3,520,000
270,000
470,000
220,000
220,000
4,700,000
Storm Sewer
900,000
2,948,000
1,505,000
1,180,000
800,000
7,333,000
Street Const.
and Reconst.
9,024,000
1,300,000
9,750,000
350,000
350,000
20,774,000
Resurfacing/
Curbs & Sidewalks
5,974 960
8,093,731
6 262 537
11,896,580
11,255,659
43,483,467
Improvement to
Public Buildings
7,555,000
1,215,000
1,175,000
350,000
3,555,000
13,850,000
Computer
Hardware/Software
276,500
644,000
409,000
224,000
229,000
1,782,500
Vehicles/Automotive
Equip.
3,223,000
1,408,000
3,252,000
875,000
683,000
9,441,000
Non -Automotive
Equip.
283,000
839,000
600,000
-
-
1,722,000
Miscellaneous
749,221
683,805
578,481
493,251
558,116
3,062,874
Grand Total
45,560,681
24,471,536
31,352,018
24,558,831
26,035,775151,978,841
After the workshop, the first reading of the property tax levy, debt service abatement and
budget will be held on November 2, 2021. The second reading and final approval will held
on November 16, 2021. Public hearings will be held on these dates to provide additional
opportunities for discussion and public input.
The 2022 preliminary budget and Community Investment Plan can be accessed by clicking
below link. Copies are also available at the Mount Prospect Library, 10 S. Emerson Street
and Village Clerk's Office, 50 S. Emerson Street. The Proposed 2022 Budget as well as
previous years' adopted budgets are also available online at mountprospect.org/budget.
Alternatives
1. Village Board and Finance Commission Discussion on the 2022 Budget and
4
Community Investment Plan.
2. Action at the discretion of the Village Board.
Staff Recommendation
Village Board and Finance Commission Discussion on the 2022 Budget and
Community Investment Plan
ATTACHMENTS:
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