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Item Cover Page
Subject 2024 Proposed Annual Budget - Joint Village Board and
Finance Commission Workshop
Meeting October 10, 2023 - MEETING OF THE MOUNT PROSPECT
COMMITTEE OF THE WHOLE
Fiscal Impact
Dollar Amount
Budget Source
Category DISCUSSION ITEMS
Type Presentation
Information
This Joint Workshop of Village Board and the Finance Commission will be held for a review of
the 2024 Proposed Annual Budget. The spending plan being presented is a responsible and
transparent financial plan that incorporates key policies and priorities established by the
Mayor and Board of Trustees.
During 2023, the Village worked to recapture some of its lost workforce from the 2009-10
economic downturn. The Village recently added six (6) firefighters and five (5) sworn police
officers to the 2023 budget to improve critical public safety related service levels. After a
careful analysis, the Village will further be adding a second police sergeant to its
Investigations division. The Village will have a total of 89 sworn police officers, up from 83 at
the beginning of 2022, with this proposed hiring. This brings the total headcount for the
Village to a full-time equivalent of 334.5, which was 329.0 at the beginning of 2023. The
Village also placed a fourth ambulance into service full time in June 2023 at Station 12 in
south Mount Prospect. The newly added six (6) firefighters/paramedics and an additional
ambulance allow for service level and response time improvements throughout the Village.
The Village has experienced a tremendous amount of growth in its state shared sales tax
revenues over the past two (2) years. The state shared sales tax revenue is a variable
revenue source, and it is the largest revenue source for the Village. The products that are
generating a majority of the sales tax are non -elastic and are not impacted by economic ups
and downs. The Village is expected to collect $31.0 million in sales tax revenue. Of this
amount, $6.0 million is allocated between three (3) capital project funds. It is recommended
to use a variable revenue source for one-time projects and capital assets. The Village started
allocating $6.0 million to capital project funds starting in the fiscal year (FY) 2023 and the
same has been continued for the year 2024. The outperforming sales tax revenues allowed
the Village to suspend its vehicle sticker program in FY 2023. Since the recently added sales
tax revenues have proven their consistency, month over month, staff recommends
eliminating the vehicle sticker program. The Finance Commission voted in favor of eliminating
the Vehicle Sticker, and the proposed budget eliminates the vehicle sticker program for FY
2024 and onwards.
The added sales tax revenue has allowed the Village to fund property tax abatements totaling
$4.4 million. Of this amount, $2.0 million will be abated for the Police Pension Fund and Fire
Pension Fund. The remaining $2.4 million is deployed from the General Fund towards various
G.O. Bonds debt service obligations. The debt service abatement includes $1.4 million for the
Police and Fire HQ Bonds, $894,500 for the 2009 Refunding Bonds, and $75,425 for the 2016
G.O. Bonds. In the absence of the above abatements totaling $4.4 million, the Property Tax
levy would reflect an increase of 17.3 percent over the 2022 levy amount. These abatements
will bring the levy back to 2020 levy amount, which was at $19.4 million. The 2023 property
tax levy is proposed at $19.4 million, a reduction of $974,673 or 4.77 percent. The proposed
levy rolls back 5.0 percent added to the 2022 levy payable in 2023, which equates to 4.77
percent of the current levy amount.
The 2024 revenue budget totals $157.1 million, an increase of $7.0 million or 4.7 percent. FY
2024 budget includes various one-time grant revenues, including recognition of the American
Rescue Plan, Surface Transportation Program Grant (STP), Congestion Mitigation and Air
Quality Grant (CMAQ), and a few other one-time grants have resulted in an increase of $6.9
million or 13.9 percent in the Intergovernmental Revenues.
Property 'Taxes
2 ,0 2 ` ,3 59,
2Z,393,921
(3'71,562),
-1.7 %,
Other 'Taxes
14.,689.,'0'00
14.144.100
544.1500
3.8°-.
Intergovermnental Renu
a6',,598,,663
49,:,,689, 008
6,,,9°09 6, a a
13-91%,
Licenses., Permits & Fe!e!s2.,037:,000
1959:500
77:500
0%,
Charges For Senices
42:240.404
40,,837,177°
1.402:,632
3 4�,
]Fines & Forfefts
47'0:'9,5 5
53'0,,140
(59',185)'
-11_2°- ,
Incl=estmenf Income
1,818, 245
278,µ2e6,
1,,.539,.9,79,
553_4%,
Other Rei, enr<ue
2.,854.944
2.166.1550
688.394
3 L8�,�
Reimbursements
33p7.'000g
,��-g'03_,000
3-1.,0100
6@6'_'0%
Total 1' eocc`ur ung 1hevenue
1"�i3,06: ,5 0,
1
1 2,,2A..,2,657
1 q1,
1 ,865 , 1
8.2%
Other® ]Financing Sources
1=.1029. '0'0'0
17'850::000
i(3,,821,000)'
21.4�,�
Total 1'k evenues
1
15 ,09 ,,570,
1
150,,0, 2,, '57
7,044,913 '1
Yr.7%
The below chart summarizes various revenue categories with 2022 Actual, 2023 Amended
Budget, 2023 Projection, 2024 Budget, and a preliminary forecast for the year 2025.
Revenues
1 8(:-), (:.)()t:), (:)t:)(:.)
1.60,O(K),(:)(:)(:) 1=�r,:willrrrl.au..urr.sr,:wuy : n,t:r
1..40,(.)(..)(.),(.)i.)(:) 1 4..y1 hie r" F(uveni u€'
1 (::)cher F1n ancing Sources
Vn v estlrm. nt Vn, (,)ura,
,,.._.
IIIIIIIIL F1nt...e s a F..ar(..,ur
'(I y 1111 (., �' F:, s .-�r . t� f:, 4O.F:,s
1 � s � 111111111. h�-arw.....� h..ar ..�.. r�,u,.,...,
a' 4,(.)0(),0(,.)(:) � % � l I � I.ua,.censes, Permur.s & Fe(z.-s
a/r nrlrr,r,Dry rn,urr�llta:�ll F=everl,ue
Nolo Or. h(z,r Taxes
2022 A(,Ju.ua 111 2023 I31u+h;eIl 1()2:? 1024I31.Jdoel 1(V 110 Prr,:al:aertur f :uxr,s
Fr(,)J e,t(,)n, Forecast
The Village is actively working to reduce the burden of property taxes. The overall property
tax levy for the year is proposed at $19.5 million, a 4.77 percent reduction compared to the
2022 levy payable in 2023. The above property tax amount includes a property tax levy
totaling $19.5 million as well as tax increments to be received under two of the Village's Tax
Increment Financing Districts totaling $2.9 million.
6.()0%,
MMO
lllllaige ll::Iroplerty rayl x I1....ev
...
M0% e, u"uauUcr�ioiiiiiiiac,
The investment income of the Village has increased due to increases in interest rates. The
2023 projection shows the investment income totaling $2.7 million against the original budget
of $278,266. The rates are expected to fall in 2024, while at the same time, due to committed
investments in various investment instruments, the Village is expected to earn $1.8 million in
investment income.
The other financing sources mainly include planned inter -fund transfers from the General
Fund to various funds. The below -listed transfers will be recognized as income to the receiving
funds.
aterSe°er (Fund from ARP
5,300,000
Debit Service (Fund
2,171,000
Capital IProject Fund
2,11,5,,,000
Street Improvement Construction (Fund
2,000,000
Pension Stablillliia.atiion (Fund
2,,000,000
Flood Control construction (Fund
265,000
Village Parking System (Fund
175,000
PIIIul
1
I
� uI
17,,8,50,,000
luZ
-21.4%
� I
i,,II
au au
The above transfers will support the Village in achieving various strategic goals, conducting
various capital projects, and abating the property tax levies.
The budget for 2024 expenditures totals $164.6 million, a decrease of $3.7 million, or 2.2%,
from the amended 2023 Budget. The decrease in spending is mainly attributable to a
reduction in scheduled inter -fund transfers from the General Fund. FY 2023 includes $17.9
million in inter -fund transfers. Of this amount, $6.5 million is transferred from the General
Fund to the Economic Emergency Fund. This is a one-time transfer and is not expected to be
repeated on an annual basis. It is the intention of the Administration to fund a second transfer
of $6.5 million from the General Fund surplus (if any for the year 2023) to the Economic
Emergency Fund. However, currently, no such transfer is anticipated.
Operating, Budget
90,,927,,623
Cormrnuniiity IRnvestrment IPIIan
35,425,6,22
Debt Service
7,,545,734
Internal Service (Fund
13,,372,5.56,
Special Revenue Business District
1„750,000
Special Revenue TIF
1„497,600
Initerfund Transfer
14,029,000
56,066,909
4,5=60,7 ,5
5.6
41,697,,152
�6�,271„530)
-1.5.0%
7,,620,,325
25,,409
0.3”
12,552,222
19,20,,334
6.5%
1„421„500
328,,500
23.1%
1,169,100
328,500
31.3
17,,8,50,,000
13,,8,21„000)
-21.4%
Grarnd Total 16w4, „115 168377,207 13,,729,072) -2.2%
Operating Budget
The Village's operating budget reflects the anticipated spending for all departments during the
upcoming year on items such as public safety, planning and development, social services, and
other municipal programs and services.
In 2024, the total operating budget is $90.9 million. This is an increase of $4.9 million or 5.6
percent from the amended 2023 budget. Funding to support the operating budget comes from
the General Fund, Capital Project Funds, Special Revenue Funds, and Enterprise Funds.
The graph below reflects a breakdown of the operating budget Fund Type.
OPERATING ET
II' t ofc il: Special �e Ilwwa
Itl"rd.:s, Fund,
^�,a"0��,i1,.i ��,.N;r�� 9,�2�20,388,,00,
1�0%
The increase in the operating budget is primarily attributable to the increase in pension costs,
cost of living adjustments, and inflationary adjustments for contractual services. Recent
inflation is recorded at a 40 -year high and resulted in an unusual inflationary increase for the
Village's operating budget. The General Fund operating budget for FY 2024 is $66.1 million,
an increase of $2.2 million from the amended 2023 budget, and a major portion of this
amount is attributable to agreed contractual increases in personnel costs.
$90,000,000
$86,066,909
$85,000,000 II $83,878.,459
$80,000,000 $77,103,203
$70,000,000
$65,000,000
$90,927,623
2022.Aac,tuall 202:3 Gudgel 202:3 2024 Gudgel 202 5 Forecast.
Pro.iac6or-u
Capital Budget
The Village capital budget is a prioritized plan for the acquisition and replacement of capital
assets, which are resources that have an expected lifetime that extends beyond the
acquisition year. The basis of the annual capital budget is drawn from the five-year
Community Investment Program (CIP). The CIP addresses capital expenditures of $25,000 or
more and all proposed additions to the motor vehicle fleet and computer inventory. Funding
for the capital budget comes from dedicated revenue sources such as the home rule sales tax,
license fees and bond proceeds. Bond funding for capital projects is for larger projects,
buildings, and infrastructure that cannot be supported on a pay-as-you-go basis.
$50,000,000
$45,000,000
$40,000,000
$35,0$30,000,000
00,000/ppipi/p
y+..... 0,000, 000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
Capita] BUdget
$41,697,152
$29,047,909
$35,425,622.
$44,758,124
$9,607,027
2022..Achialll 2023.Budget 2023 2024.Gu dg t 202`, Forecast.
Projeckr-o
In 2024, the total capital budget is projected to be $35.4 million, a decrease of $6.3 million or
15.0 percent from the amended 2023 CIP budget. There are several unfinished projects
totaling $12.0 million, carried forward to 2023 from 2022, which have resulted in a higher -
than -normal CIP budget for 2023.
Debt Service Budget
The Debt Service section of the budget contains the provision for current debt obligations of
the Village. Current debt obligations include General Obligation Bonds issued for various
capital projects.
De t Service
The total debt service budget for 2024 is $7.6 million, $25,409 or 0.3 percent higher than the
amended 2023 budget. A summary of annual debt service requirements and the annual
principal requirements for all outstanding issues are included as supplemental information in
the Debt Summary section of the budget document. The budget includes $3.5 million in
interest expenditures and $4.1 million in principal payments.
Internal Services Budget
The Internal Services budget is used to account for the financing of goods or services
provided by one department to another on a cost reimbursement basis. The Risk Management
Fund and Vehicle Maintenance Fund are included in this Budget.
Interna] Service BUd et
$1.4,000,000
$13,500,000 $13,358,2,50 $13,372,556
$ 1..3,000,000
512,552,2.2.2 512,4,51,6x2.2.
$12,500,000
E ��im I,—
$12,000,000
$11,500,000
$13,755,581
2.02.2Achialll 2.023Buxdgel 2023 2.024Buxdgel 202`, Forecast.
Projeckr-o
In 2024, the total internal service budget is projected at $13.4 million. This is an increase of
$820,334, or 6.5 percent, from the amended 2023 budget. The Risk Management Fund
accounted for $10.8 million of the total, while the Vehicle Maintenance Fund accounted for
$2.6 million. The Risk Management Fund reflects an increase of $795,861 or 8.0 percent in
the budgeted expenditure, mainly to account for the inflationary increases in the insurance
related expenditures. The Village recently negotiated a contract with the Public Works union
bringing all the Public Works union employees onto the Village's health insurance program.
This has resulted in a higher health insurance expenditure for the year 2024 that will be offset
by revenue from Public Works Union employee deductions.
Business District Fund
The Business District Fund (a Special Revenue Fund) was established to account for the
revenues and expenditures associated with the one Business District within the Village,
Randhurst Village. Total expenditures for the Business District Fund for 2024 are projected at
$1.75 million, an increase of $328,500 or 23.0 percent. Funding to support the expenditures
is generated from sales taxes above a certain threshold, hotel/motel, entertainment and food
& beverage taxes and a separate business district tax for retail establishments located within
the district itself. The budget is adjusted based on the recent revenues and expenditures
recognized by the Village.
Special Revenue TIF District Non -Operating Expenditures
The Prospect and Main TIF District Fund accounts for the resources to acquire and construct
certain improvements in the Prospect and Main Tax Increment Financing District. A total of
$1.5 million in non-operating expenditures are budgeted in this Fund for 2024. This is a
planned increase of $328,500 or 28.0 percent from the prior year due to redevelopment
agreements in place. Non-operating expenditures for the Prospect & Main TIF District Fund
include planned spending for developer incentives, corridor maintenance, other professional
services, and student impact fees to be shared with School Districts 314 and 57. These
expenditures are considered one-time ornon-recurring items and have been segregated from
the other TIF -related expenses of Capital and Debt Service.
View the 2024 Proposed Annual Budget document. It is also available in PDF on the Village's
Staff will provide a presentation at the meeting and will engage with the Village Board and the
Finance Commission to discuss the 2024 Proposed Annual Budget.
below:A primary time -line of the budget process is as
October 10, 2023 -
]o|ntVVorhshop with the Village Board and the Finance Commission
October 17, 2023 -
First Reading of the Budget Ordinance, Levy Ordinance and the Levy
Abatement Ordinance
October 26, 2033 -
Finance Commission Meeting (Recommendation for the Levy, Budget and
Abatement)
November 7, 2023
- Pub||c Hearing onthe 2O24 Budget and the 2023 Levy Ordinance
November 7, 2023
- Second Reading and Approval of the Budget Ord|OdOo8, Levy Ordinance
and the Levy Abatement
Ordinance
Discussion
Alternatives
1. Discuss the 2024 Proposed Annual Budget.
2. Action at the discretion of the Village Board.
Staff Recommendation
Discuss the 2024 Proposed Annual Budget.
Attachments
None