The URL can be used to link to this page

Home My WebLink About8.3 Waive the rules requiring two readings of an Ordinance and adopt AN ORDINANCE MAKING CERTAIN AMENDMENTS TO THE ANNUAL BUDGET ADOPTED FOR THE FISCAL YEAR COMMENCING JANUARY 1, 2023 AND ENDING DECEMBER 31, 2023.Mr�GauC �'d'+rt;�iect Subject Waive the rules requiring tworeadingsof Ordinance and adopt AN ORDINANCE MAKING CERTAIN AMENDMENTS ADOPTED FO. THE FISCAL n JANUARY 1, 2023 2023. Meeting May 16, 2023 - REGULAR MEETING OF • PROSPECT : • Fiscal Impact Dollar Amount Budget Source Category NEW BUSINESS Type Ordinance Information The Village amends its annual budget from time to time as needed. Village staff is proposing following amendments to the adopted annual budget for fiscal year 2023. Expenditures - General Fund As discussed at the Q-1 financial review, staff is proposing to establish an Economic Emergency Fund and to have two months' worth of operating cash as its fund balance. Fiscal year 2022 reported a surplus of $13.5 million. Out of the reported surplus, $6.5 million is proposed to be transferred to the Economic Emergency Fund, which equates to one months' worth of cash. The proposed amendment increases the transfer out budget by $6.5 million, which will allow the Village to start and fund the Economic Emergency Fund. Revenues Staff recommends that fixed or semi -fixed revenue sources be used to fund operating expenditures while variable revenue sources be deployed towards funding capital/one-time project costs. Based on the current data and segment analysis, the Village should use certain portions of the state sales tax towards 1 funding capital projects. Currently, the Village is using home -rule sales tax to fund capital projects, while state sales tax is more suitable item for funding capital projects. • State Sales Tax o With the current data, it may be concluded that: ■ $15.7 million is fixed - 52.33% ■ $12.0 million is variable - 40.0% ■ $1.6 million is semi -variable - 7.67% • Home -rule Sales Tax o With the current data, it may be concluded that: ■ $5.3 million is fixed - 76.8% ■ $1.6 million is variable - 23.2% With the above data analysis, staff proposes to allocate 100% of the home -rule sales tax to the General Fund and to allocate $2.0 million in the state sales tax to each of the three capital project funds. The home -rule sales tax revenue is also trending $400,000 higher than budgeted, and this amendment includes an updated revenue forecast as well. General Fund As discussed above, the General Fund amendment includes an increase in the home -rule sales tax by $4.9 million and reduction in the state sales tax line by $6.0 million. After the approval of the amendment, the final home -rule sales tax budget will be $6.4 million and the state sales tax budget will be $22.5 million. Debt Service Fun The Debt Service fund gets $923,656 in home -rule sales tax allocation for the debt service of series 2013 bonds. With the new allocation, home -rule sales tax allocation is replaced with the state sales tax allocation. The amendment increases state sales tax allocation by $923,656 and eliminates home -rule sales tax allocation. Capital Improvement Fund The Capital Improvement Fund normally gets 1/4% of the total home -rule sales tax allocation. With the new allocation, home -rule sales tax allocation is replaced with the state sales tax allocation. The amendment increases state sales tax allocation by $2,000,000 and eliminates home -rule sales tax allocation of $1,500,000. 2 The Street Improvement Construction Fund normally gets 1/4% of the total home -rule sales tax allocation. With the new allocation, home -rule sales tax allocation is replaced with the state sales tax allocation. The amendment increases state sales tax allocation by $2,000,000 and eliminates home -rule sales tax allocation of $1,500,000. Flood Control Construction Fund The Flood Control Construction Fund normally gets 1/4% of the total home -rule sales tax allocation. With the new allocation, home -rule sales tax allocation is replaced with the state sales tax allocation. The total allocation will be $2.0 million. Out of $2.0 million, $923,656 will be used to pay for the debt service obligation and will be deposited in the Debt Service Fund, as discussed above. The remaining state sales tax amount of $1,076,344 will be deposited in the Flood Control Construction Fund. The amendment increases state sales tax allocation by $1,076,344 and eliminates home -rule sales tax allocation of $575,000. Alternatives 1. Approve the attached Ordinance making certain amendments to the adopted annual budget for the fiscal year 2023. 2. Action at the discretion of the Village Board. Staff Recommendation Approve the attached Ordinance making certain amendments to the adopted annual budget for the fiscal year 2023. ATTACHMENTS: 2023 Budget Amendment 2 - Final.pdf KI ORDINANCE NO. AN ORDINANCE MAKING CERTAIN AMENDMENTS TO THE ANNUAL BUDGET ADOPTED FOR THE FISCAL YEAR COMMENCING JANUARY 1, 2023 AND ENDING DECEMBER 31, 2023 PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES the day of , 2023 Published in pamphlet form by authority of the corporate authorities of the Village of Mount Prospect, Illinois the day of , 2023. 4 ORDINANCE NO. AN ORDINANCE MAKING CERTAIN AMENDMENTS TO THE ANNUAL BUDGET ADOPTED FOR THE FISCAL YEAR COMMENCING JANUARY 1, 2023 AND ENDING DECEMBER 31, 2023 WHEREAS, the President and Board of Trustees of the Village of Mount Prospect have passed and approved Ordinance No. 2342 which sets the finances of the Village under the "Budget Officer System"; and WHEREAS, pursuant to the aforesaid Ordinance and the Statutes of the State of Illinois an annual budget for the fiscal year commencing January 1, 2023, and ending December 31, 2023 was adopted through the passage of Ordinance No. 6649 approved by the Corporate Authorities of the Village of Mount Prospect on November 01, 2022; and WHEREAS, the President and Board of Trustees of the Village of Mount Prospect have passed and approved Ordinance No. 6671 on March 21, 2023 amending the annual budget for the fiscal year commencing January 1, 2023 and ending December 31, 2023; and WHEREAS, the President and Board of Trustees of the Village of Mount Prospect have further reviewed certain additions and changes to the aforesaid budget for the fiscal year beginning January 1, 2023, and ending December 31, 2023; and WHEREAS, the President and Board of Trustees of the Village of Mount Prospect believe the changes, as specified on the attached January 1, 2023, through December 31, 2023, Budget Amendment No. 2 to be in the best interest of the Village of Mount Prospect; and WHEREAS, the Village has now revised the revenue projections or has reserves in each of the Funds in which the budget is being increased adequate in amount to cover the budget changes reflected in Budget Amendment Number two, attached hereto. NOW THEREFORE BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION ONE: That the fiscal year budget for January 1, 2023, through December 31, 2023, for the Village of Mount Prospect is hereby amended, as detailed on Budget Amendment No. 2 attached hereto. SECTION TWO: That this ordinance shall be in full force and effect from and after its passage, approval and publication in pamphlet form as provided by law. 5 AYES: NAYES: ABSENT: PASSED and APPROVED this day of , 2023. Paul Wm. Hoefert Mayor ATTEST Karen Agoranos Village Clerk Village of Mount Prospect Budget Amendment No. 2 Fiscal Year January 1, 2022 to December 31, 2022 Revenues 020 Calp6taV lmlprovernent Fund Amendments 020.403.004 - Home Rule Sales Tax HR Sales Tax -4th 020.415.004 - State Taxes State Sales Tax 1,500,000 (1,500,000) - - 2,000,000 2,000,000 Amendments Total 1,500,000 500,000 2,000,000 .............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. Other Budgeted Accounts for the Fund 1,008,000 - 1,008,000 .............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 020 Calpiitall lmlproveirwient Il::und'ToW 2,508,000 500„000 3,008,000 023 Street lmlproveirneint Construc Il::und Amendments 023.403.002 - Home Rule Sales Tax HR Sales Tax -2nd 023.415.004 - State Taxes State Sales Tax 1,500,000 (1,500,000) - - 2,000,000 2,000,000 Amendments Total 1,500,000 500,000 2,000,000 .............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. Other Budgeted Accounts for the Fund 2,623,000 - 2,623,000 .............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 023 Street lmlprovement Construc Fund Total 4,123,000 500,000 4,613,000 .............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 7 Current Budget Increase/ Amended Fund/Account Number Amount (Decrease) Budget Amended Il:::unds 001 GeneirA Il::und Amendments 001.403.003 - Home Rule Sales Tax HR Sales Tax -3rd 1,500,000 4,900,000 6,400,000 001.415.004 - State Taxes State Sales Tax .............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 28,500,000 (6,000,000) 22,500,000 Amendments Total .............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 30,000,000 (1,100,000) 28,900,000 Other Budgeted Accounts for the Fund .............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 46,454,329 - 46,454,329 001 GeneiraV II::und'ToW .............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 76,454,329 (1,100,000) 75,354,329 002 Debt .SeirOce Fund Amendments 002.00.00.00.2.516.403.001 - Home Rule Sales Tax HR Sales Tax -1st 923,656 (923,656) - 002.00.00.00.2.516.415.004 - State Taxes State Sales Tax .............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. - 923,656 923,656 Amendments Total .............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 923,656 - 923,656 Other Budgeted Accounts for the Fund .............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 3,758,250 - 3,758,250 002 Debt 5ervuce Fund Total 4,681,906 4,681,906 020 Calp6taV lmlprovernent Fund Amendments 020.403.004 - Home Rule Sales Tax HR Sales Tax -4th 020.415.004 - State Taxes State Sales Tax 1,500,000 (1,500,000) - - 2,000,000 2,000,000 Amendments Total 1,500,000 500,000 2,000,000 .............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. Other Budgeted Accounts for the Fund 1,008,000 - 1,008,000 .............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 020 Calpiitall lmlproveirwient Il::und'ToW 2,508,000 500„000 3,008,000 023 Street lmlproveirneint Construc Il::und Amendments 023.403.002 - Home Rule Sales Tax HR Sales Tax -2nd 023.415.004 - State Taxes State Sales Tax 1,500,000 (1,500,000) - - 2,000,000 2,000,000 Amendments Total 1,500,000 500,000 2,000,000 .............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. Other Budgeted Accounts for the Fund 2,623,000 - 2,623,000 .............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 023 Street lmlprovement Construc Fund Total 4,123,000 500,000 4,613,000 .............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 7 Village of Mount Prospect Budget Amendment No. 2 Fiscal Year January 1, 2022 to December 31, 2022 Revenues Current Budget Increase/ Amended Fund/Account Number Amount (Decrease) Budget 024 11ood Control Construction Fund Amendments 024.403.001 - Home Rule Sales Tax HR Sales Tax -1st 575,000 (575,000) - 024.415.004 - State Taxes State Sales Tax .............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. - 1,076,344 1,076,344 Amendments Total .............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 575,000 501,344 1,076,344 Other Budgeted Accounts for the Fund .............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 1,815,000 - 1,815,000 024 11ood Cointroll Construactllon Fund TotA .............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 2,390,000 501,344 2,891,344 .............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. Amended Funds Total .............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 90,157,235 401,344 90,558,579 AIV u0l.lver Wage Budgeted Accounts 52,678,978 - 52.,678,978 Total All Funds 142,836,213 401,344 143,237,557 0 Village of Mount Prospect Budget Amendment No. 2 Fiscal Year January 1, 2023 to December 31, 2023 Expenditures Current Budget Budget Amended Fund/Account Number Amount Amendment Budget Amended Fuinds 001 GeneirallIFund 77,999,450 6,500,000 84,499,450 ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ Amended Funds Total ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 77,999,450 6,500,000 84,499,450 AIIII OtherVHHage Budgeted Accounts 82,975,555 87,97S,°w5!.: Total All Funds 160,975,005 6,500,000 167,475,005 M