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Home My WebLink About8.1 Second Reading and Approval of AN ORDINANCE AUTHORIZING THE LEVY AND COLLECTION OF TAXES FOR THE CORPORATE AND MUNICIPAL PURPOSES OF THE VILLAGE OF MOUNT PROSPECT FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2024, AND ENDING DECEMBER 31, 2024M+awn �'xytlts=e Item Cover Page Subject Second Reading and Approval of AN ORDINANCE AUTHORIZING THE LEVY AND COLLECTION OF TAXES FOR THE CORPORATE AND MUNICIPAL PURPOSES OF THE VILLAGE OF MOUNT PROSPECT FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2024, AND ENDING DECEMBER 31, 2024 Meeting November 6, 2024 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD Fiscal Impact (Y/N) Dollar Amount Budget Source Category OLD BUSINESS Type Ordinance Information The Village must file its 2024 tax levy ordinance with Cook County prior to December. The filing includes the corporate tax levy and abatement ordinances. The Village will receive proceeds from the 2024 tax levy in 2025. This agenda item covers the second reading and approval of the tax levy ordinance. The first reading of this ordinance occurred on October 15, 2024. The Finance Commission met on October 24, 2024, and recommended approval of the levy for the year 2024 as presented. This second reading and final approval is the final step after the public hearing. Discussion The proposed 2024 property tax levy for the Village (payable in 2025) is $18.2 million, reflecting a reduction of $1.2 million or 6.3 percent from the 2023 level. The Police Protection levy is $4,346,500, the same as last year. The Fire Protection levy is $4,049,574, reflecting a reduction of $1.0 million compared to last year's amount. This reduction is the result of a new $1.0 Million abatement, provided by the special service area taxes payable by the unincorporated area residents and businesses, previously served by the Elk Grove Rural Fire Protection District. The Police Pension levy will be $5,126,944. This amount is after a $1.0 million abatement from the Pension Stabilization Fund. The annual police pension cost is increasing by $497,877 or 8.8 percent. The Fire Pension levy will be $4,133,242. Similar to the Police Pension levy, the Fire Pension levy is also after an $1.0 million abatement from the Pension Stabilization Fund. The annual fire pension cost is increasing by $306,049 or 6.3 percent. The Village also approves and reports the annual levy for the Mount Prospect Library to Cook County. The Mount Prospect Library will have an annual levy of $11,292,085, which shows a 2.0 percent increase over the 2023 extended taxes payable in 2024. PoIllice Protection 4,346,500 - 4,346i, 500 86i,930 4,433,430 4,433,430 0 00% Nre protection 5,049,574 1,000,000 4,049,574 W,991 4,130,565 5,150,5 65 � 1,020,000] -19 80% PoLice Pension IFund 6i,126i,944 1,000,000 5,126i,944 102,639 6,229,483 4,721,648 507,835 10 76% Pirefighters'Penslion IFund 5,133,242 1,000,000 4,133,242 82,666 4,2116,907 3,903,737 170 8 00% Total Operational IINFAVWMr�A'l��11��r011 Total Debt Service LevyK r�y�A Total Village Levy Mount Prospect Public Library Total Village and Library Combined it N f' NOW The Village's levy totals $18.2 million, the lowest in the last ten years. The Village is abating a total of $6.4 million from various sources to achieve the above levy. • $1,000,000 — Abatement from the EDRF SSA Taxes paid by Unincorporated Area Residents and Businesses. • $1,000,000 --- Police Pension Abatements • $1,000,000 — Fire Pension Abatements • $114441250 — Series 20188 Police and Fire HQ Bonds Abatements • $1,655,183 — Series 2016E Bonds Abatements • $300,000 —"Video Gaming Tax • $23,000 — Debt Service Fund Interest Income The Village has used the additional revenue from the sales tax (General Fund) to provide property tax abatements totaling $5.1 million. Out of this amount, $2.0 million will be allocated to the Police Pension Fund and Fire Pension Fund. The remaining $3.1 million is taken from the General Fund to fulfill various G.O. Bonds debt service obligations. The debt service abatement includes $1.4 million for the Police and Fire HQ Bonds and $1.7 million for the series 2016 G.O. Bonds. The property tax levy would have shown a 27.3 percent increase over the 2023 amount without abatements totaling $5.1 million. This would have been the highest levy in the last ten years. The total levy in 2015 was $18.3 million. The 2024 levy will be the lowest in the past decade with the proposed abatements. This will be the second consecutive year that the Village has reduced its property tax levy. The 2023 tax levy payable in 2024 was reduced by 4.8 percent. Between the 2023 and 2024 tax levies, the Village has reduced its property tax levy by $2.2 million or 11 percent compared to the 2022 tax levy. Also, the Village levies only for public safety operations, pensions, and debt service. Year over year, the Village's debt service levy and the operating levy are shrinking while the pension levy is growing, and the trend is expected to continue for the next several years. With the above abatements and levy amounts, an average home with a value of $367,900 will see a reduction in the Village portion of the property tax bill by $65. Without the above -listed amendments, the property tax bill would have increased by $269. Overall, it reflects a swing of $334 for an average household, between scenarios of with and without abatements. Average Home Value 367,900 $ 36i7,900 367,900 Assessment - 0 0 36,790 ZMMEMEM= Village Villne Taxes 3.0163 $ 110,970 0.883% 3.0163 110,970 1.124 1.,262.73 0 0 3.0163 .. 110,970 $ .. 0.828% -0.296 918.72 $ 334.01 In November 2024, the Mount Prospect Park District and School District 57 are both running referendums during the general presidential election. Approval of these referendums can significantly increase the levy for an average resident and property owner. In response, the Village proposes to lower its levy to the maximum possible level without compromising its financial position, including fund balance, service levels, and personnel levels. Reduction in the levy by Village will offer some offset against the increased taxes for Mount Prospect Park District and School District 57. The Finance Commission met and discussed the budget, levy, and abatement on October 24, 2025, and recommended the approval of these items as presented. Alternatives 1. Second reading and approval the attached ordinance authorizing the levy and collection of 2024 property taxes payable in 2025, reflecting a decrease of 6.34 percent in the Village Levy and a 2.0 percent increase in the Mount Prospect Library Levy. 2. Action at the discretion of the Village. Staff Recommendation Staff recommends approval of the attached ordinance authorizing the levy and collection of 2024 property taxes payable in 2025, reflecting a decrease of 6.3 percent in the Village Levy and a 2.0 percent increase in the Mount Prospect Library Levy. Attachments 1. 2024 Levy Ordinance - Final 2. Budget Recommendation from the Finance Commission 2024-10-24 ORDINANCE NO. AN ORDINANCE AUTHORIZING THE LEVY AND COLLECTION OF TAXES FOR THE CORPORATE AND MUNICIPAL PURPOSES OF THE VILLAGE OF MOUNT PROSPECT FOR THE FISCAL YEAR BEGINNING JANUARY 1, 20241 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 AUTHORIZING THE LEVY AND COLLECTION OF TAXES FOR THE CORPORATE AND MUNICIPAL PURPOSES OF THE VILLAGE OF MOUNT PROSPECT FOR THE FISCAL YEAR BEGINNING JANUARY 1, 20249 AND ENDING DECEMBER 31, 2024 NOW, THEREFORE, BE IT ORDAINED BY THE President and Board of Trustees of the Village of Mount Prospect, Cook County, Illinois, as follows: Section 1: That the sum of Twenty Eight Million Nine Hundred Forty Seven Thousand Six Hundred Eighty Seven ($28,947,687), the same being the total amount to be levied of budget appropriations heretofore made for the corporate and municipal purposes for the fiscal year beginning January 1, 2024, and ending December 31, 2024, as approved by the President and Board of Trustees of the Village of Mount Prospect, be and the same is hereby levied on all taxable property within the Village of Mount Prospect according to the valuation of said property as is, or shall be assessed or equalized by the State and County purposes for the current year 2024. Section 2: The budgetary appropriations having been made by the President and Board of Trustees of the Village of Mount Prospect were passed and approved by Ordinance No. 6708 at a meeting hereof regularly convened and held in said Village of Mount Prospect, Illinois, on the 7" day of November, 2023, and amended by Ordinance No. 6731 on the 19th day of March, 2024, by Ordinance No. 6745 on July 9, 2024, and thereafter duly published according to law, the various objects and purposes for said budgetary appropriations are heretofore made and set forth under the column entitled "Amount Budgeted", and the specific amount herein levied for each object and purpose is set forth under the column entitled "Amount Levied", in Articles I through VI. VILLAGE OF MOUNT PROSPECT, ILLINOIS 2024 Tax Levy ARTICLE 1 - POLICE PROTECTION Amount Budgeted Amount Levi ed Personal Services 13,537,134 4,346,500 Employee Benefits 2,143,691 0 Other Employee Costs 191,680 0 Contractual Services 1,928,184 0 Utilities 13,500 0 Insurance 228,446 0 Commodities & Supplies 241,990 0 Office Equipment 26,145 0 Other Equipment 15,775 0 Total Police Department 18,326,545 4,346,500 TOTAL BUDGET FOR POLICE PROTECTION 18,326,545 AMOUNT TO BE RAISED BY TAX LEVY 4,346,500 ADD 2% FOR LOSS & COST OF COLLECTION 86,930 TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR POLICE PROTECTION 4,433,430 ARTICLE 11 - FIRE PROTECTION Personal Services 11,276,566 4,049,574 Employee Benefits 2,023,074 0 Other Employee Costs 154,812 0 Contractual Services 1,871,871 0 Utilities 14,000 0 Insurance 201,236 0 Commodities & Supplies 82,700 0 Building Improvements 2,500 0 Office Equipment 1,000 0 Other Equipment 182,875 0 Total Fire Department 15,810,634 4,049,574 TOTAL BUDGET FOR FIRE PROTECTION AMOUNT TO BE RAISED BY TAX LEVY ADD 2% FOR LOSS & COST OF COLLECTION TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR FIRE PROTECTION ARTICLE III - DEBT SERVICE 00 Debt Service 00 00 518 G.O. Bonds - Series 2016 Bond Principal Interest Expense Bank and Fiscal Fees Total G.O. Bonds - Series 2016 15,810,634 4,049,574 80,991 4,130,565 1,740,000 221,367 218,550 0 0 0 1,958,550 221,367 ARTICLE III - DEBT SERVICE (continued) 00 00 565 G.O. Bonds - Series 2017 - TIF Bond Principal 200,000 Interest Expense 133,369 Bank and Fiscal Fees 0 Total G.O. Bonds - Series 2017 333,369 00 00 565 G.O. Bonds - Series 2017 - Water Bond Principal 205,000 Interest Expense 123,531 Bank and Fiscal Fees 0 Total G.O. Bonds - Series 2017 328,531 00 00 566 G.O. Bonds - Series 2018A - TIF Bond Principal 280,000 Interest Expense 230,369 Bank and Fiscal Fees 0 Total G.O. Bonds - Series 2018A - TIF 510,369 00 00 566 G.O. Bonds - Series 2018A - Water Bond Principal 190,000 Interest Expense 143,750 Bank and Fiscal Fees 0 Total G.O. Bonds - Series 2018A - Water 333,750 00 00 519 G.O. Bonds - Series 2018B - New Bond Principal 0 Interest Expense 1,444,250 Bank and Fiscal Fees 0 Total G.O. Bonds - Series 2018B - New 1,444,250 00 00 519 G.O. Bonds - Series 2018B - Refi Bond Principal 155,000 Interest Expense 86,000 Bank and Fiscal Fees 0 Total G.O. Bonds - Series 2018B - Refi 241,000 00 00 565 G.O. Bonds - Series 2019A - Water Bond Principal 345,000 Interest Expense 282,300 Bank and Fiscal Fees 0 Total G.O. Bonds - Series 2017 627,300 00 00 565 G.O. Bonds - Series 2019B - TIF Bond Principal 260,000 Interest Expense 243,100 Bank and Fiscal Fees 0 Total G.O. Bonds - Series 2017 503,100 00 00 G.O. Bomds - Series 2022 - Water/Sewer Bond Principal 255,000 Interest Expense 294,050 Bank and Fiscal Fees 0 Total G.O. Bonds - Series 2022 549,050 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ARTICLE III - DEBT SERVICE (continued) 00 00 G.O. Bomds - Series 2022B - Flood Control 6,126,944 5,126,944 Total Police Pensions Bond Principal 685,000 0 Interest Expense 193,480 0 Bank and Fiscal Fees 0 0 Total G.O. Bonds - Series 2022 878,480 0 TOTAL BUDGET FOR DEBT SERVICE 7,707,749 11,070,060 AMOUNT TO BE RAISED BY TAX LEVY 221,367 ADD 2% FOR LOSS & COST OF COLLECTION 4,427 TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR DEBT SERVICE 225,794 ARTICLE IV - POLICE PENSION 00 Police Pensions Annual Pension Costs 6,126,944 5,126,944 Total Police Pensions 6,126,944 5,126,944 TOTAL BUDGET FOR POLICE PENSION 6,126,944 AMOUNT TO BE RAISED BY TAX LEVY 5,126,944 ADD 2% FOR LOSS & COST OF COLLECTION 102,539 TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR POLICE PENSION 5,229,483 ARTICLE V - FIREFIGHTERS' PENSION 00 Fire Pensions Annual Pension Costs 5,133,242 4,133,242 Total Firefighters' Pensions 5,133,242 4,133,242 TOTAL BUDGET FOR FIREFIGHTERS' PENSION 5,133,242 AMOUNT TO BE RAISED BY TAX LEVY 4,133,242 ADD 2% FOR LOSS & COST OF COLLECTION 82,665 TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR FIREFIGHTERS' PENSION 4,215,907 ARTICLE VI - MOUNT PROSPECT LIBRARY 90 Mount Prospect Library Library Expenditures 19,339,200 11,070,060 Bond Principal 0 0 Interest Expense/Fiscal Charges 0 0 Total Library Services 19,339,200 11,070,060 TOTAL BUDGET FOR MOUNT PROSPECT LIBRARY 19,339,200 AMOUNT TO BE RAISED BY TAX LEVY - Library Expenditures 11,070,060 AMOUNT TO BE RAISED BY TAX LEVY - Bond Principal and Interest 0 ADD 2% FOR LOSS & COST OF COLLECTION 221,401 TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR MOUNT PROSPECT LIBRARY 11,291,461 Total Levy w/o L&C 28,947,687 Total Levy w/ L&C 29,526,640 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2024 TAX LEVY SUMMARY Article Fund 221,401.00 I Police Protection 11 Fire Protection III Debt Service 1V Police Pension V Firefighters' Pension Tax Levy Village Totals VI Mount Prospect Library 4,346,500 Library Services 4,433,430 Library Debt Service 4,049,574 Library Totals 4,130,565 Village and Library Totals 19,339,200 Amount 221,401.00 Total 19,339,200 to be Raised Amount Tax Levy Amount by for Loss Incl. Loss Budgeted Tax Levy and Cost and Cost $ 18,326,545 4,346,500 86,930.00 4,433,430 15,810,634 4,049,574 80,991.00 4,130,565 7,707,749 221,367 4,427.00 225,794 6,126,944 5,126,944 102,539.00 5,229,483 5,133,242 4,133,242 82,665.00 4,215,907 53,105,114 17,877,627 357,552.00 18,235,179 19,339,200 11,070,060 221,401.00 11,291,461 19,339,200 11,070,060 221,401.00 11,291,461 S 72,444,314 28,947,687 578,953.00 29,526,640 Section 3: The sum of $932,750 is budgeted to be received from personal property replacement tax revenue during the fiscal year commencing January 1, 2024 and ending December 31, 2024 and has been included herein as funds to be derived from sources other than property taxes supporting expenses related to police and fire protection, general obligation bonds and interest, public safety pensions and library services. Section 4: That the County Clerk is directed to add 2% to the requested tax levy as a provision for loss and cost. Section 5: That the Village Clerk of the Village of Mount Prospect is hereby directed to certify a copy of this Ordinance and is hereby authorized and directed to file a copy of the same with the County Clerk of Cook County, Illinois, within the time specified by law. Section 6: That, if any part or parts of this Ordinance shall be held to be unconstitutional or otherwise invalid, such constitutionality or invalidity, shall not affect the validity of the remaining parts of this Ordinance. The President and Board of Trustees of the Village of Mount Prospect hereby declares that they would have passed the remaining parts of the Ordinance of they had known that such parts or parts thereof would be declared unconstitutional or otherwise invalid. Section 7: That this Ordinance shall be in full force and effect from and after its passage, approval, publication in pamphlet form and recording, as provided by law. AYES: NAPES: ABSENT: PASSED and APPROVED this day of November 2024. Paul Wm. Hoefert, Mayor ATTEST: Karen Agoranos, Village Clerk From: Finance Commission, Village of Mount Prospect To: Paul Wm. Hoefert — Mayor, and the Village Board of Trustees Date: October 24, 2024 Subject: Budget Recommendation from the Finance Commission The Finance Commission met at a regularly scheduled meeting on October 24, 2024. All four Commissioners were present at the meeting. The Finance Commission discussed the proposed property tax levy, abatements, and the 2025 budget. Director of Finance, Amit Thakkar gave a summary presentation for the budget, levy and the abatements. The Finance Commission first reviewed the budget presentation on September 26, 2024, at the Emergency Operation Center. After the summary presentation on October 24, 2024, the Finance Commission had a few questions and suggestions. a) It was suggested that the top part of the water bill message should be utilized to convey a short message that the water and sewer rates will be increasing by 6.75 percent and the reason for the increase. Staff concurred with the suggestion. Staff has utilized the top part of the water bill to notify customers of rate increases in the past. b) There was a request for the schools -related information within the Budget to be reviewed and updated. Staff mentioned that some portion of the information is derived automatically by the software provider, and staff does not have ability to control certain data inputs. However, the staff will take this under advisement. c) Finance Commission further mentioned that they would like to see a separate TIF section in the budget book. The current budget book includes a section for the Special Revenue Fund — Prospect & Main and South Mount Prospect Tax Increment Financing (TIF) Districts. The Commission acknowledged that the Village is doing a good job with sharing information about the TIFS, however, the budget book could also include a separate section regarding TIF. Staff took the comment under advisement and mentioned that these items are included in the TIF annual report at the TIF portal. Staff will try to include some meaningful information on TIFs in the future budget book. d) A brief discussion occurred about property tax numbers and abatements. Staff provided detailed analysis of each line of the property tax levy and abatements, totaling $6.4 million. e) The Finance Commission also inquired about the projected deficit totaling $1.7 million for the year 2024. Staff mentioned that the deficit is a result of an accounting adjustment and timing issues. The Village Board approved a transfer of $6.5 million from the General Fund to the Economic Emergency Fund. Technically, this is not an expense. However, for accounting purposes, this is a transfer out expense for the General Fund, paid from the 2023 audited surplus. Since it is treated as an accounting expense for 2024, it offsets against 2024 revenues and results in a deficit of $1.7 million. In absence of the $6.5 million transfer, the General Fund will have a surplus of $4.8 million. f) Staff and the Finance Commission discussed the operating budget and pension numbers and the future timeline for the budget. Finance Commission also conveyed that the budget book is a comprehensive and professional document with a great amount of information about the Village. g) After the discussion, following motions were made: a. Motion by Vince Grochocinski to recommend approval of the abatements as presented, seconded by Don Ocwieja. Motion was approved unanimously. b. Motion by Don Ocwieja to recommend approval of the property tax levy as presented, seconded by Ned Derfler. Motion was approved unanimously. c. Motion by Ned Derfler to recommend approval of the budget as presented by the staff, seconded by Vince Grochocinski. Motion was approved unanimously. h) After the above motions were approved, Director of Finance thanked the Village staff for working diligently on the budget. The Finance Commission concurred with staff. With that, we concluded our work plan for the fiscal year 2024. Please let us know if you have any questions or concerns. Respectfully Submitted Finance Commission