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Home My WebLink About8.1 1st reading 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, 2023Mr�GauC �'d'+rt;�iect Item Cover Page Subject Ist reading of an ordinance and adopt AN ORDINANCE MAKING CERTAIN AMENDMENTS TO ANNUALTHE r ADOPTED FOR YEAR COMMENCING ENDING DECEMBER Meeting June 6, 2023 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD - Fiscal Impact true Dollar Amount Budget Source Category NEW BUSINESS Type Ordinance The Village amends its annual budget from time to time as needed. Village staff is proposing the following amendments to the adopted annual budget for the fiscal year 2023. The Village of Mount Prospect provided all non-union employees a 2% Employee Retention Incentive during the fiscal year 2022. The 2% retention incentive was given due to high inflation during the fiscal year 2022. Inflation during June 2022 was at a 40 -year high mark - 9.1% (CPI -U). The most recent inflation index is marked at 4.9%. The current collective bargaining agreement with the Fire Union runs from 2022 to 2024. The bargaining agreement gave fire union members 2.5% increases in 2022, 20231 and 2024. The wage increases provided in the bargaining agreement are not at par with the recent rate of inflation, and due to higher inflationary pressure, staff is recommending a 2% one-time retention incentive for the members of the fire union. The 2% bonus is based on the fire union member's salary as of October 1, 2022. The cost of the 2% bonus is $145,000, and the applicable payroll tax (Medicare - 1.45%) will be approximately 1 $2,102. The 2% bonus amount is not pensionable and will not have any impact on the annual pension costs. The present amendment increases the General Fund budget by $147,102, and staff recommends approval of the same. The Village has received an Illinois Transportation Enhancement Program (ITEP) grant in the amount of $3,000,000 for the design and construction of the Melas/Meadows Bridge. The grant is reimbursable. The Melas/Meadows bridge project was not funded initially and was not included in the 2023 budget. The Village was awarded this grant in 2023, and staff recommends starting Phase II design engineering in 2023. The proposed amendment in the amount of $500,000 will allow the Village to start working on Phase II engineering, and staff recommends approval of the same. Effective January 1, 2022, the Lead Service Line Replacement and Notification Act (LSLRNA) (Public Act 102-0613) replaced the former lead materials inventory requirements found in the Illinois Environmental Protection Act at 415 ILCS 5/17.11. The first purpose of the LSLRNA is to require owners and operators of community water supplies to develop, implement, and maintain a comprehensive water service line material inventory and replacement plan. The Village is working on this item diligently. While at the same time, the Village is also running a program where a resident can submit an application to replace their lead service lines, and the Village can pay 66% of the cost up to $10,000. The Village has reallocated $50,000 from its overhead sewer program, and $43,907 from the allocated $50,000 is already consumed during the first five months of the year. While at the same time, the Village already has seven pending applications, and the Public Works Department has already had 30+ inquiries since January 2023. In light of the above, the staff is proposing an amendment to increase the Lead Service Line Replacement Program budget by $100,000. The above three amendments will increase the total budget from $167,475,005 to $168,222,107, an increase of $747,102. The current Village revenue levels and cash balances are enough to cover the added expenditures. Alternatives 2 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: Final - 2023 Budget Amendment 3.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 passed and approved Ordinance No. 6680 on May 16, 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. 3 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 three, 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. 3 attached hereto. 5 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. AYES: NAPES: ABSENT: PASSED and APPROVED this day of , 2023. Paul Wm. Hoefert Mayor ATTEST Karen Agoranos Village Clerk 6 Village of Mount Prospect Budget Amendment No. 3 Fiscal Year January 1, 2023 to December 31, 2023 Expenditures 023 Street Ilrnlpirovernernt Cornstruc (Fund Amendments 023.80.90.00.1.704.678.009 - Streets Street Reconstruction 2,341,004 500,000 2,841,004 ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Amendments Total 2,341,004 500,000 2,841,004 ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Other Budgeted Accounts for the Fund 3,490,000 3,490,000 ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 02.3 Street Ilirnlprovernernt Cornstruc IFuirnd Totall 5,8371,004 500,000 6,331,004 ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 050 Water and Sewer IFund Amendments 050.80.90.00.1.702.672.008 - Sewer System Lead Service Line Rebate Program 50,000 100,000 150,000 ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Amendments Total 50,000 100,000 150,000 ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Other Budgeted Accounts for the Fund 35,129,910 - 35,129,910 ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 050 Water and Sewer IFund To -tall 35,179,911.0 7100,000 35,279,910 ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Amended Funds Total 125,510,364 747,102 126,257,466 AIIII Otheu°'lflllage Budgeted Accounts 41,964„642 41,964,642. Total All Funds 167,475,005 747,102 168,222,107 Current Budget Budget Amended Fund/Account Number Amount Amendment Budget Aimnended IFunds 0071. Oernerall IFund Amendments 001.20.23.00.0.000.513.014 - Other Employee Benefits Retention Incentive - 145,000 145,000 001.70.71.00.0.000.511.002 - Social Security Contributions Medicare ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 133,922 2,102 136,024 Amendments Total ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 133,922 147,102 281,024 Other Budgeted Accounts for the Fund ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 84,365,528 - 84,365,528 001. OenerA Fuund'TotA 84,499,450 147,102 84y646y552 023 Street Ilrnlpirovernernt Cornstruc (Fund Amendments 023.80.90.00.1.704.678.009 - Streets Street Reconstruction 2,341,004 500,000 2,841,004 ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Amendments Total 2,341,004 500,000 2,841,004 ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Other Budgeted Accounts for the Fund 3,490,000 3,490,000 ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 02.3 Street Ilirnlprovernernt Cornstruc IFuirnd Totall 5,8371,004 500,000 6,331,004 ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 050 Water and Sewer IFund Amendments 050.80.90.00.1.702.672.008 - Sewer System Lead Service Line Rebate Program 50,000 100,000 150,000 ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Amendments Total 50,000 100,000 150,000 ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Other Budgeted Accounts for the Fund 35,129,910 - 35,129,910 ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 050 Water and Sewer IFund To -tall 35,179,911.0 7100,000 35,279,910 ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Amended Funds Total 125,510,364 747,102 126,257,466 AIIII Otheu°'lflllage Budgeted Accounts 41,964„642 41,964,642. Total All Funds 167,475,005 747,102 168,222,107