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Home My WebLink About8.2 Motion to 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, 2024, AND ENDING DECEMBER 31, 2024.M+awn �'xytlts=e Item Cover Page Subject Motion to 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, 2024, AND ENDING DECEMBER 31, 2024. Meeting July 9, 2024 - /COMMITTEE OF THE WHOLE OF THE MOUNT PROSPECT VILLAGE BOARD Category NEW BUSINESS Type Ordinance Information The Village amends its annual budget as needed from time to time. Village staff are proposing the following amendment to the adopted annual budget for the fiscal year 2024. Discussion The proposed amendment includes the following items: General Fund The General Fund's current budget is $84,378,260. The staff is proposing an amendment totaling $7,345,207 to the General Fund Budget, as discussed below. 1. Economic Emergency Fund: The Village Board authorized the creation and funding of an Economic Emergency Fund in 2023. The Village funded $6.5 million from the 2022 audited General Fund surplus of $13.4 million. The initial plan included two months' worth of operating cash to be funded in the Economic Emergency Fund. The Village funded the first installment in 2023. Staff is now recommending funding the second and final installment of $6.5 million from the 2023 surplus. The audited financial statements reported a $4.3 million surplus. The actual surplus for the General Fund is $14.8 million. Items funded from the 2022 surplus are recorded as an expense for accounting purposes for 2023, lowering the reported accounting surplus from $14.8 million to $4.3 million. The current fund balance for the General Fund is $44.4 million, which equates to 53 percent of the General Fund expenditures. The Village's fund balance policy requires maintaining a fund balance between 30 and 50 percent of the General Fund expenditures. After funding the second installment of $6.5 million, the fund balance will drop to $37.8 million, equating to 45.3 percent of the annual expenditures, and the Village will still comply with the Fund Balance Policy after this transfer. This item was also discussed at the Finance Commission meeting on June 10, 2024, and the Finance Commission is in concurrence with the staff recommendation. The Economic Emergency Fund has earned $342,677 in interest in the last 12 months. After the proposed funding of the second installment, the fund will stand at $13,342,677. This step will also help the Village in achieving AAA credit ratings at the next available opportunity. 2. Property Acquisition: The Village recently authorized the acquisition of the property at 310 W. Northwest Highway for $775,000. This was not initially budgeted in the original budget for the year 2024. The amendment adds $775,000 to the property acquisition line for the General Fund. 3. School Resource Officer for District 59: School District 59 requested a School Resource Officer from the Village and is willing to pay 75 percent of the annual salary and benefits for the position. This position will be working with the School District at Holmes Junior High for 9 months a year. The total cost for salaries and benefits (including pension) is $205,799. Since we are adding this position midyear, the budget impact is 50% of the annual amount. No immediate pension contribution is needed for this position, as pension costs are determined by an actuarial analysis at the end of the year. The amendment increases the annual salary and benefits budget by $70,207 for 2024. Capital Project Fund: The Capital Project fund will handle phase II engineering for the Melas-Meadows Bridge. This is a federally funded project. The original budget did not include phase II engineering in 2024. With the grant amounts in place, the Village is in a position to move forward with the project, and the Village will be required to have a budget of $725,716. Of this amount, $580,573 (80%) will be funded by a Federal Grant. The proposed amendment increases the expenditure budget by $725,715 and the grant revenue budget by $580,573. Water and Sewer Fund: The Village has been asked to provide new meters for the rowhomes south of the railroad tracks near Maple Street. This is not a Village expenditure, the rowhomes developer will reimburse the village for the cost of these meters. This item is not budgeted in the 2024 budget. The proposed amendment will increase the meter supply expenditure and water meter fee revenue lines by $15,366. Alternatives 1. Waive the rules requiring two readings of an ordinance and adopt the attached ordinance making certain amendments to the 2024 annual budget. 2. Action at the discretion of the Village Board. Staff Recommendation Staff recommends waiving the rules requiring two readings of an ordinance and adopting the attached ordinance, making certain amendments to the 2024 annual budget. Attachments Ordinance - 2024 Budget Amendment 2 ORDINANCE NO. AN ORDINANCE MAKING CERTAIN AMENDMENTS TO THE ANNUAL BUDGET ADOPTED FOR THE FISCAL YEAR COMMENCING JANUARY 1, 2024 AND ENDING DECEMBER 31, 2024 PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES the day of , 2024 Published in pamphlet form by authority of the corporate authorities of the Village of Mount Prospect, Illinois the day of , 2024. ORDINANCE NO. AN ORDINANCE MAKING CERTAIN AMENDMENTS TO THE ANNUAL BUDGET ADOPTED FOR THE FISCAL YEAR COMMENCING JANUARY 1, 2024 AND ENDING DECEMBER 31, 2024 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, 2024, and ending December 31, 2024, was adopted through the passage of Ordinance No. 6708 approved by the Corporate Authorities of the Village of Mount Prospect on November 7, 2023; and WHEREAS, the President and Board of Trustees of the Village of Mount Prospect have passed and approved Ordinance No. 6731 on March 19, 2024 amending the annual budget for the fiscal year commencing January 1, 2024 and ending December 31, 2024; 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, 2024, and ending December 31, 2024, and WHEREAS, the President and Board of Trustees of the Village of Mount Prospect believe the changes, as specified on the attached January 1, 2024, through December 31, 2024, 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, 2024, through December 31, 2024, 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. AYES: NAYES: ABSENT: PASSED and APPROVED this day of 12024. Paul Wm. Hoefert Mayor ATTEST Karen Agoranos Village Clerk Village of Mount Prospect Budget Amendment No. 2 Fiscal Year January 1, 2024 to December 31, 2024 Revenues Current Increase / Amended Fund/Account Number Budget (Decrease) Budget Anieunded IFunds - 124,264,870 124,264,870 .............................................................................................................................................................................................................................. - 124,264,870 020 ... Calpiitall Ilrnpiroveirnemt IFund 124,264y870 124,264,870 - 124,264,870 Amended Accounts 020.418.006 - STP Grant ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 580,573 580,573 Amended Accounts Total ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 580,573 580,573 Other Other Budgeted Accounts for the Fund ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 6,567,252 6,567,252 Other Total ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 6,567,252 6,567,252 020 ... Calpiitall Ilirnlpirovernent IFund Total ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 6,567y252 580,573 7,147„825 038... II®conourniic IErnreirgency (Fund Amended Accounts 038.487.001 - Transfer In ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 6,500,000 6,500,000 Amended Accounts Total ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 6,500,000 6,500,000 Other Other Budgeted Accounts for the Fund ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ Other Total ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 038 IEconomic IErneirgeirncy Fund "V"otaI ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 6,500,000 6,500,000 0.50 ... Water and Sewer Fund Amended Accounts 050.80.84.87.0.000.446.004 - Water Meter Fees 29,998 15,366 45,364 ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ Amended Accounts Total ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 29,998 15,366 45,364 Other Other Budgeted Accounts for the Fund ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 26,725,450 - 26,725,450 Other Total ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 26,725,450 - 26,725,450 050 -Water and Sewer Fund TotaI ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 26,755,448 15,366 26,770,814 Amended Funds Total 33,322,700 7,095,939 40,418,639 124,264,870 .............................................................................................................................................................................................................................. - 124,264,870 124,264,870 .............................................................................................................................................................................................................................. - 124,264,870 124,264,870 .............................................................................................................................................................................................................................. 124,264y870 124,264,870 - 124,264,870 Total All Funds 157,587,570 7,095,939 164,683,509 Village of Mount Prospect Budget Amendment No. 2 Fiscal Year January 1, 2024 to December 31, 2024 Expenditures Increase / Fund/Account Number Current Budget (Decrease) Amended Budget Amended Funds 001- General (Fund Amended Accounts 001.00.00.00.0.000.697.001 - Transfer Out 14,779,000 6,500,000 21,279,000 001.00.00.00.0.000.636.004 - Property Acquisition - 775,000 775,000 001.60.61.65.0.000.500.001 - Full -Time Earnings 8,791,941 56,369 8,848,310 001.60.61.65.0.000.510.001 - Medical Insurance 1,324,032 13,020 1,337,052 001.60.61.65.0.000.511.002 - Medicare .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 138,036 818 138,854 Amended Accounts Total .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 25,033,009 7,345,207 32,378,216 Other Other Budgeted Accounts for the Fund .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 59,345,251 59,345,251 Other Total .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 59,345,251 59,345,251 001... General Fund Total .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 84,378,260 7,345,207 91,723,467 020 - Capital Improvement IFund Amended Accounts 020.80.90.00.1.705.679.002 - Ped Bridge - Melas/Mead .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 14,952 725,716 740,668 Amended Accounts Total .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 14,952 725,716 740,668 Other Other Budgeted Accounts for the Fund .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 8,737,218 8,737,218 Other Tota l .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 8,737,218 8,737,218 020 - Capital Improvement (Fund "IFotall .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 8,752,170 725,716 9,477,886 050 - Water and Sewer Fund Amended Accounts 050.80.84.87.0.381.665.050 - Water Meters .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 72,441 15,366 87,807 Amended Accounts Total .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 72,441 15,366 87,807 Other Other Budgeted Accounts for the Fund .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 36,595,971 36,595,971 Other Tota l .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 36,595,971 36,595,971 050... Water and Sewer Fund total .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 36,668,462 15,366 36,683,777 Amended Funds Total .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 129,798,842 8,086,289 137,885,131 Otlheir IFunds Other IFunds Other Other Budgeted Accounts for the Fund .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 50,291,041 50,291,041 Other Total .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 50,291,041 50,291,041 Offieir IFunds "IFotall 50,291,04.1 50,291,041 .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Other Funds Total .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 50,291,041 50,291,041 Total All Funds 180,089,883 8,086,289 188,176,171