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HomeMy WebLinkAbout6.1 Monthly Financial Report - December 2021Mr�GauC �'d'+rt;�iect Item Cover Page Subject -poDecember 2020 Meeting March 1, 2022 - 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 December 2021. Alternatives 1. Accept the Monthly Financial Report for December 2021 2. Action at the discretion of the Village Board Staff Recommendation Accept the Monthly Financial Report for December 2021 ATTACHMENTS: Monthly Report Dec 2021.pdf 12 December Board Reports for Upload .pdf 1 VILLAGE OF MOUNT PROSPECT MONTHLY FINANCIAL REPORT December 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: FEBRUARY 21, 2022 SUBJECT: MONTHLY FINANCIAL REPORT FOR THE MONTH OF DECEMBER 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 December 1, 2021, the beginning Cash and Cash Equivalents totaled $58.4 million. During the month of December, the Village had cash receipts totaling $8.3 million. The investment income for the month totaled $37,766. The payroll cost for the month was $1.8 million, and accounts payable were paid in the amount of $6.2 million. The inter -fund activity increased the cash position by $708, while other disbursements totaled $14,986. As of December 31, 2021, the Village's Cash and Cash Equivalents totaled $59.7 million. GOVERNMENTAL AND, ENTERPRISE FUNDS Cash and Cash Equiivallents Ballance at December 1, 2021 $, 58 393,458 Cash ireceupts Investment uncome Transfers from iinvestments to cash Transfers to, iinvestments from cash Ilnteifund actiiv4y Diisbuirsements:. Accounts payable Payirolll Other 8,279,788 37,766 997,300 708 (6,168,473) (1,,814,773) (14,,986) Total Cash and Investments Investments $ 16,847,624 $, 75,241,082 8,279-,788 (32,742) 5„024 (997 300) - - 708 - (6„168„473) - (1,814,773) _ (14x9`86) Ballance at IDecembeir 31, 2021 $, 59,,710,789 $ 15,,817,,582 $, 75,528,371 As of December 31, the Village has a total of $15.8 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 December 31, 2021. 2 The below table summarizes the Cash and Cash Equivalents by Fund type as of December 31, 2021 Fund Details Arno unt General Fund $ 23„958„785 Special Revenue Funds 6,740, 430 Debt. Service Funds 1„787,662 Capital Projects Funds 5,,423„144 Enterprise Funds 16„639„812 Internal Service Funds 4,181,776 Total Cash and Cash Equivalents $ 59,710,789 In addition to the funds summarized above, the Village of Mount Prospect has $931,755 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 Dec 2021. Property Taxes, Other Taxes Rntergovernmentall Revenue Licenses, Permits &Dees Charges ILor Services Fines & IForfeiits Investment (Income Other IFinanciing Sources Other Revenue Reimbursements Total Revenues 20,565,258, 20,308,093 '98.7 J1%9,69, 13 1 338P96f2 13,,300,GG R 13,,M3,P650 1,05.2% 12,259P7^999 1P733,P8.51 43,756,P343 4%353P577 112.8,% 37P999P553 11,454r,023 3,067,GGO 3,144,95`8, 102.5% 3,048,180 96f,778, 35,925r46,8, 36,97%127 1,02.9% 35,20337.52 1.N77,Or37.5 453,5.00 629,613 137.3% 415,209 214,404 450,501 (6.5,5,23) -14.6% 447,26,9 (513,,G92) 16,940,POGG 4,912,r91,5 29.'G% 5,175r5,01 (262,r5`5,6) 2,,269P920 2,,2366939 98.5% 2,875,745 (63'8,µ'810) 5rGGO 372,,145 ,53.6 493,,127 (1200981) 1371177P990 1311965P195 96.1% 117P79i2P271 14?072?9124 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 January 2021 and later. Additionally, during the month of December 2021, the Village received the following revenues from the State, which relate to a period prior to December 2021. These amounts are distributed after the State administrative fee deductions of $10,338. State Sales Tax Sep -21. Dec -271 Dec -21 2,526,788 Home Rule Salles7 Sep -21. Dec�-21. Dec�-21 595,728, Business District T Sep -21. Dec -21. Dec -21. 30,,208 Auto Rental Tax Sep -21 Dec -21 Dec -21 2,676, Telecom Tax .................................................................................................................................................................................................................................................................................................................................................... Sep -21 Dec' -271 Dec' -211 1.08,µ767 Total Revenues $ 3,2,68? 167 3 The actual year-to-date revenue received by the Village is $131.9 million. This amount represents 96.1 percent of the annual budget. The collected amount is tracking higher by $14.1 million compared to the 2020 collections for the same period. During the first quarter of the year 2022, remaining revenues for the 2021 will be collected; the same revenue amounts will be booked as receivable as of December 31, 2021. So the revenues presented above are not the final revenues for the year 2021. The final revenue amounts are expected to exceed the original budgeted revenues for the year 2021. 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. Initially, the property tax collection was lagging behind due to the extension of due dates. However, by the end of December, the Village collected $20.3 million in property taxes, i.e., 98.7 percent of the annual budgeted amount. The Village property tax levy for the year is $19.4 million. The remaining amount represents increments for the Prospect & Main TIF district. 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 December are reported in January or later. The comparative total revenue amounts under this category are tracking higher by 1.7 million. The total year-to-date collection is $13.9 million and represents 105.2% of the annual budget. An outperformance of the Food and Beverage Tax and Real Estate Transfer Tax revenues has allowed the Village to record 105.2% revenue collection compared to the budgeted revenues. The final adjustment of Homerule sales tax and telecom tax as of December 31 will record even greater outperformance. A budget amendment will be presented in March 2022 and that will reconcile the outperforming revenues with the 2021 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 December 2021. Through December 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 $11.5 million compared to 2020 collections. Through December 2021, the Village has received $7.1 million in State Income Taxes, which represents 136 percent of the annual budget. Through December 2021, the Village has received $22.0 million in Use Taxes or 121 percent of the annual budget. The year-to-date Sales Tax collection is $23.8 million, which actually represents sales taxes from January to September as there is a three months lag in sales tax collection. The year-to-date sales tax collection is 103 percent of the annual budget. With three months worth of sales tax yet to come for the fiscal year, the Village is expected to collect an additional sales tax of $6 million compared to the 2021 annual budget. License & Permits: The Village has collected $3.1 million in License & Permit Fees through December 2021. The amount represents 102.5 percent of the annual budgeted amount. The Village has collected $1,451,051 in Vehicle Stickers, $1,061,796 in various non -business license fees, and $632,111 in various Business License Fees through December 2021. Charges for Services: The Village has received $36.9 million in Charges for Services. The amount includes water/sewer/refuse charges and also internal service payments, including vehicle 10 maintenance and vehicle replacement lease payments. The collected amount represents 102.9 percent of the 2021 annual budget, and the collection is $1.7 million higher compared to the 2020 collection at the same time last year. The Village also cnUootnd $2.3 million in ambulance billing fees compared hothe original budget amount nf$1.5million. Other Categories: All other revenue categories have collectively generated $81 million through December 2021 and include interfund transfers totaling $3.5 million. The Investment income is reporting a negative amount, which is merely an accounting adjustment. Per the GASB, premature withdrawal penalty is represented in the market value, and all investments are marked to market. These penalties would be realized only if the Village prematurely liquidates these investments. The Village has the intention and capacity to hold these investments until their maturity. c) Expenditures The below data recaps the expenditures incurred during the month of December 2021. 10 Public Representation 574,153 54,156, 456,854 79.6% 20 Village Administration 4,802°963 6,40937 4,143,484 86.396 30 Finance 2°230,348, 207,032 2,102°048 94.2% 40 Community Development 4,017,075 361,345 3,405668 84.8% 50 Human Services 1,223,840 131,748 1,174,380 9,6,.,G96 60 Police 20,811,857 1,523,684 20,256,858 97.396 7,0 Fire 18,532°811 1,72,0,7,01 18,452°852 99.6% S0 Public Works 6,1,33,7,998 4,761,358 47,014,287 76.6% O0 �N De p a rt�m e n�a U 23,994,0959% Total Expenditures, 137'?574,242 11,527�?465 121?220,7,60 89.1% 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 51,480J023 50,547158 98.3% Contractual Services 34,973,000 3 3,569,3 3 7 96.0% Supplies 2,330,9,01 1,8,87,8,63 91.0% Capital Improvements 32°701,458 20,265,522 62.096 DeM Service 10,297,668, 9\926,859, 96.5% Other Expenditures 5,981,192 5,023822 954% Total Expenditures 137Y5741242 121?22017�60 99.1% Personnel Costs: The year-to-date expenditures for Personnel Costs, including benefits,ane$505miUion or 98.3 percent of the annual budget. The overtime costs through December 2021 are $2.348.220, while the overtime costs at the same time last year were $1.824.132.|n202O.the Village did not have any major � public sponsored events due to COVID-19 restrictions, and it resulted in lower overtime costs than in any given normal year. 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 $33.6 million, and the Village has spent 96.0 percent of the budgeted amount through December 2021. Supplies: The Village has spent $1,887,863 in supplies through December 2021. The spending totals approximately 81.0 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 worth projects carried over from 2021. Through December 2021, the Village has worked on various approved projects and has paid $20.3 million or 62.0 percent of the approved budget in Capital Improvement costs. There were supply chain issues with materials and many projects will be carried over from 2021 to 2022. In early 2022, the capital budget totaling $5.3 million will be carried over from 2021 to 2022. 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 $9.9 million through December 2021. The remainder of the payments are due in December 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 already executed and reported in the year-to-date expenditures totaling $4.5 million. The other misc. expenditures totaling $479,103 are included in the Other Expenditure category. 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- Unaudoted 11,598,037 1.,188,133 2,6255,464 7,074,858 5,230,902 &,600,638 4,048,827 4,313,983 4,225,144 6,676,560 8,928,042 4,689,072 8,901.,796 Expenses- Unauduted M382,749) Q2,487,218) 0,566,468) 86,202,319) 85,190,997; 84,155,701) 84,330,123) 86,278,458) 84,577,429) 86,260,585) 85,676,374) 84,718,819) 85,846,989) Net Monthly Surplus/(OefleR) 3,215,299 (1,249,084) (1,441.003) 872,545 34,905 4,464,937 (281,246) (1,464,475) (352,285) 415,974 3.251,658 (29,747) 3.054.956 9egiin lig Unrest—ted&Deserves 20,27,191 23,892,469 22,243,395 20,302,382 29,174,926 29,214,892 22,165,834 21,884,538 28,221,063 21,867,778 22,283, est 29,685,420 29,505,672 As % of G.—A Fund 0udget 3796 35916 32% 34% 34% 35% 35% 35% 35% 35% 40% 40% 45% As Wry of GenerA F 0udget 23% 25%6 2896 34% 34% 35% 35% 35% 35% 35% 409E 40% 38% (Unaudited and Subject to Change) The above fund balance analysis is not audited and it is subject to change. The unrestricted fund balance as of December 2021 is estimated at $28.5 million. Not all the revenues and expenses for the 2021 are recognized as a few of the intergovernmental revenue item details will become available by March 2022. The above analysis will be finalized upon completion of the 2021 audit. Overall, 2021 has been a very strong fiscal year for the Village of Mount Prospect. The Village has outperformed on many of the revenue line items and it is reflected here in the fund balance. There are certain challenges that the Village is facing currently and one of the major threats is the inflation. The current inflation rate of 7.5% is going to increase the operating and capital costs for the Village for coming months and years. The recent surpluses in revenue will help the Village in mitigating some of the cost increases due to inflation. The Village is actively working on its financial plan to optimize the fund balance as well as invest the Village funds in crucial projects, infrastructure and community needs. 0 e) Other Items: During December 2021, the Village issued 123 real estate transfer tax stamps, of which 39 were exempt stamps and 84 were non-exempt. During December 2021, the Village collected $304,236 in real estate transfer taxes. The amount is higher compared to other months due to a few large value commercial transactions. The average selling price for the real estate (excluding large transactions) was $331,670. At the same time last year, the Village sold 121 transfer tax stamps, of which 41 were exempt and 80 were non- exempt. The Village collected real estate transfer taxes of $88,593 in December 2020, and the average selling price was $369,029. b. The Village issued water and sewer bonds in January 2022. The Village went through a credit rating call on January 8, 2022. The Village was able to obtain affirmation on AA+ stable outlook rating from S&P. The bonds were closed on January 28 and the Village was able to get an effective rate of 2.14% c. The Village will be presenting the American Rescue Plan to the Finance Commission on February 24, 2022 and the same will be presented to the Village Board in March 2022. d. The Village will be presenting budget amendments to carryover budgets for certain projects from the year 2021 to 2022 in March 2022. The carryover items are expected to be around $5.2 million. The amendment will reduce the budget for 2021 and increase the budget for 2022 by the exact amount. 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