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HomeMy WebLinkAbout6. NEW BUSINESS 12/02/2008 MouotProspcct Village of Mount Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM PURPOSE: To obtain approval of the attached two ordinances related to the tax levies of the Village, the Mount Prospect Public Library, and the Village's special service area. TO: MICHAEL E. JANONIS, VILLAGE MANAGER FROM: DIRECTOR OF FINANCE DATE: NOVEMBER 25, 2008 SUBJECT: 2008 GENERAL CORPORATE AND SPECIAL SERVICE AREA PROP ORDINANCES BACKGROUND: Prior to December 23, 2008 the Village must have on file with the County Clerk its 2008 tax levy ordinances. The Village will receive proceeds from the 2008 tax levy in 2009. The Village Board first discussed the proposed 2008 tax levy at its October 28th Committee of the Whole meeting. Staff recommends a net Village tax levy of $13,956,467, a decrease of 0.42% from the prior year. ~~<:7).l;J!i:~J:''fR;'"~,,,,,,,,'''-'w'"j,,W''')~~.rrt'll~_.._---- ' ,,-,,,,,,,,,,,,,,w,,,,;S The Mount Prospect Library Board approved their tax levy request at its meeting on October 16, 2008. They are asking for a total levy, inclusive of a 2% provision for loss and cost, of $8,726,308. This represents an increase of 6.50% over the 2007 levy. DISCUSSION: The following table compares the proposed 2008 levy to the 2007 levy for the Village and Library. The amounts presented in the table are net of abatements and are inclusive of the 2% provision for loss and cost. 2007 Levy 2008 Levv $ Increase % Chanae VILLAGE General 7,772,448 7,772,448 0 0.00% Refuse 2,066,597 1,785,000 (281,597) (13.63%) Debt Service 1,321,572 1,316,461 (5,111 ) (0.39%) Police Pension 1,436,591 1,551,518 114,927 8.00% Fire Pension 1,417,630 1,531,040 113,410 8.00% << Total Village 14,014,838 13,956,467 (58,371) (0.42%) LIBRARY Operations 6,621,497 7,063,775 442,278 6.68% Debt Service 1,572,453 1,662,533 90,080 5.73% Total Library 8,193,950 8,726,308 532,358 6.50% TOTAL 22.208.788 22.682.775 473.987 2.13% A detailed spreadsheet of all proposed levies, including detailed levies for each outstanding bond issue, is also attached. D~E 2008 Property Tax Levy November 25, 2008 Page 2 The Village's 2007 equalized assessed valuation (EA V) is $1,870,325,316. Our 2008 EA V is estimated to increase approximately 5.1 % from the prior year based on historical trends dating back to 1993. Obviously this projection is subject to change based on recent events in the housing sector causing a significant drop in home values. The final 2008 EA V will not be available until August 2009. The Village's 2008 tax rate is expected to decrease to $0.710 from the 2007 rate of $0.749. This is due to the decrease in the levy from the prior year and projected growth in Village EA V for 2008. The Library's 2008 tax rate is estimated at $0.444, compared to the 2007 rate of $0.438. For illustration purposes only, a home with an EA V of $1 01,000 (a market value of approximately $372,000) in 2008 will pay taxes of $513 to the Village of Mount Prospect and $321 to the Library for the levy extended in 2008. This represents a decrease in the Village levy of $2 and an increase in the Library levy of $20 from the levy extended in 2007. These amounts will vary based on eligible tax reductions for homeowner or senior exemptions or senior assessment freezes. Special Service Area NO.5 was created in the mid-eighties to help fund the delivery of Lake Michigan water to the Village's water system. It is recommended the 2008 levy remain the same as the 2007 levy ($1,545,773). The resulting tax rate is estimated to be $0.956. The Village Board is being asked to consider two ordinances related to the 2008 tax levy. These ordinances establish the initial levy ofthe Village (including the Library) and the Village's special service area. The proposed levy ordinances reflect numbers as presented in the amended 2008 budget. RECOMMENDATION: It is recommended the Village Board approve the attached 2008 property tax levy ordinances. .J~~. ~ DAVID O. ERB DIRECTOR OF FINANCE Attachment DOE/ 1:\Property Taxes\2008 Levy\Levy and Abatement Ordinance Cover Memo to Board - 2008.doc VILLAGE OF MOUNT PROSPECT AND THE MOUNT PROSPECT PUBLIC LIBRARY SUMMARY OF 2008 PROPERTY TAX LEVY 2% Net Provision Total 2008 2008 Loss and 2008 ~ Abatement ~ Costs Extension VILLAGE OF MOUNT PROSPECT General Corporate Fund 7,620,047 0 7,620,047 152,401 7,772,448 Refuse Fund 1,750,000 0 1,750,000 35,000 1,785,000 Police Pension Fund 1,521,096 0 1,521,096 30,422 1,551,518 Firefighters' Pension Fund 1,501,020 0 1,501,020 30,020 1,531,040 Debt Service Funds Series 2001 (Ord. 5212) 380,740 0 380,740 7,615 388,355 Series 2003 (Ord. 5301) 909,908 0 909,908 18,198 928,106 Total Village 13,682,811 0 13,682,811 273,656 13,956,467 MOUNT PROSPECT PUBLIC LIBRARY Library Operations 6,925,270 0 6,925,270 138,505 7,063,775 Library Debt Service 1,629,934 0 1,629,934 32,599 1,662,533 Total Library 8,555,204 0 8,555,204 171,104 8,726,308 TOTAL - VILLAGE OF MOUNT PROSPECT AND PUBLIC LIBRARY 22,238,015 0 22,238,015 444,760 22,682,775 SPECIAL SERVICE AREA NO.5 1,515,464 0 1,515,464 30,309 1,545,773 ------------------~-------_. ........ CEOF PROPOSED PROPERTY TAX LEVY . .......FCJR THE VILLAGE OF MOUNT PROSPECT A public hearing to approve a proposed prop- erty tax levy for the Village of Mount Pros- pect for the fiscal year beginning January 1, 2008 and ending December 31 , 2008 will be held on December 2, 2008 at 7:00 p.m. at the Mount Prospect Village Board Room, 50 South Emerson Street, Mount Prospect, Illi- nois. Any person desiring to appear at the public hearing and present testimony to the taxing district may contact D.avid O. Erb, Di- rector of Finance, 50 South Emerson Street, Mount Prospect, Illinois (847) 392-6000. The corporate and special purpose property taxes extended or abated for the fiscal year beginning January 1, 2007 and ended De- cember 31, 2007 were $19,314,763. The proposed corporate and special purpose property taxes to be levied for the fiscal year beginning January 1, 2008 and ending Decem- ber 31 , 2008 are $19,703,781. This represents a 2.01 % increase over the previous year. 111. The property taxes extended for debt service for the fiscal year beginning January 1, 2007 and , ended December 31, 2007 were $2,894,025. The estimated property taxes to be levied for debt service for the fiscal year begin~ ning January 1, 2008 and ending December 31, 2008 are $2,978,994. This represents a 2.94% increase from the previous year. The total property taxes extended or abated f or the fiscal year beginning January 1, 2007 and ended December 31, 2007 were $22,208,788. . The estimated total property taxes to be lev- ied for the fiscal year beginning January 1, 2008 and ending December 31, 2008 are $22,682,745. This represents a 2.13% in- crease over the previous year. Dated this 20th day of November 2008. Is/ M. Lisa Angell Village Clerk 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 1,2008 AND ENDING DECEMBER 31, 2008 PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES the day of ,2008 Published in pamphlet form by authority of the corporate authorities of the Village of Mount Prospect, Illinois the day of ,2008. 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, 2008 AND ENDING DECEMBER 31,2008 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-Two Million Two Hundred Thirty-Eight Thousand and Fifteen Dollars ($22,238,015), 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, 2008 and ending December 31, 2008 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 2008. 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. 5672 at a meeting hereof regularly convened and held in said Village of Mount Prospect, Illinois, on the 18th day of December, 2007, and as amended by Ordinance No. 5697 passed and approved on the 3rd day of June, 2008, and further amended by Ordinance passed and approved on the 2nd day of December, 2008 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 VII. VILLAGE OF MOUNT PROSPECT, ILLINOIS 2008 TAX LEVY VILLAGE OF MOUNT PROSPECT, ILLINOIS 2008 TAX LEVY Amount Amount Budgeted Levied 04 Management Information Systems Personal Services 3 I 0,206 0 Employee Benefits 115,021 0 Other Employee Costs 6,000 0 Contractual Services 569,252 0 Utilities 4,340 0 Commodities & Supplies 4,150 0 Office Equipment 27,800 0 Other Equipment 1,600 0 Total Management Information Systems 1,038,369 0 05 Public Information Personal Services 53,525 0 Employee Benefits 2 I ,603 0 Other Employee Costs 2,800 0 Contractual Services 136,625 0 Utilities 520 0 Commodities & Supplies 3,700 0 Total Public Information 218,773 0 Total Village Administration 2,787,444 0 ]2 Television Services Division 02 Cable TV Operations Personal Services 76,592 0 Employee Benefits 3 I ,445 0 Other Employee Costs 2,850 0 Contractual Services 10,589 0 Utilities 1,600 0 Commodities & Supplies 4,550 0 Other Equipment 7,500 0 Total Cable TV Operations 135,126 0 04 Intergovernmental Programming Personal Services 29,332 0 Employee Benefits 10,457 0 Other Employee Costs 4,249 0 Commodities & Supplies 1,500 0 Other Equipment 2,500 0 Total Intergovernmental Programming 48,038 0 Total Television Services Division 183,164 0 3 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2008 TAX LEVY Amount Amount Budgeted Levied 14 Village Clerk's Office 02 Village Clerk's Office Personal Services 119,672 0 Employee Benefits 45,221 0 Other Employee Costs 2,705 0 Contractual Services 34,926 0 Utilities 1,700 0 Commodities & Supplies 5,275 0 Total Village Clerk's Office 209,499 0 17 Finance Department 01 Finance Administration Personal Services 194,578 0 Employee Benefits 44,826 0 Other Employee Costs 12,970 0 Contractual Services 173,925 0 Utilities 6,200 0 Commodities & Supplies 1 7, 100 0 Office Equipment 1,800 0 Total Finance Administration 45 I ,399 0 02 Accounting Personal Services 322,205 0 Employee Benefits 129,597 0 Contractual Services 4,900 0 Commodities 2,100 0 Total Accounting 458,802 0 05 Insurance Program Personal Services 55,293 0 Employee Benefits 18,356 0 Insurance 234,037 0 Total Insurance Program 307,686 0 06 Customer Services Personal Services 26 1,872 0 Employee Benefits 97,336 0 Contractual Services 49,000 0 Commodities & Supplies 8,445 0 Total Customer Services 416,653 0 4 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2008 TAX LEVY Amount Amount Budgeted Levied 07 Cash Management Personal Services 38,610 0 Employee Benefits 12,736 0 Total Cash Management 51 ,346 0 Total Finance Department 1,685,886 0 21 Community Development Department 01 Community Development Administration Personal Services 180,730 0 Employee Benefits 68,352 0 Other Employee Costs 3,810 0 Contractual Services 88,000 Utilities 3,051 0 Commodities & Supplies 1,010 0 Total Community Development Administration 344,953 0 02 Planning & Zoning Personal Services 163,568 0 Employee Benefits 62,654 0 Other Employee Costs 8,832 0 Contractual Services 148,250 0 Utilities 2,622 0 Commodities & Supplies 3,886 0 Total Planning & Zoning 389,812 0 03 Economic Development Personal Services 54,756 0 Employee Benefits 15,080 0 Other Employee Costs 2,356 0 Contractual Services 91,300 0 Total Economic Development 163,492 0 05 Building Inspections Personal Services 526,793 0 Employee Benefits 213,609 0 Other Employee Costs 16,328 0 Contractual Services 127,840 0 Utilities 8,491 0 Commodities & Supplies 10,874 0 Total Building Inspections 903,935 0 5 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2008 TAX LEVY Amount Amount Budgeted Levied 06 Housing Inspections Personal Services 322,484 0 Employee Benefits 125,141 0 Other Employee Costs 6,781 0 Contractual Services 59,646 0 Utilities 3,155 0 Commodities & Supplies 6,092 0 Computer Equipment 22,000 0 Total Housing Inspections 545,299 0 07 Health Inspections Personal Services 79,712 0 Employee Benefits 29,072 0 Other Employee Costs 1,412 0 Contractual Services 8,745 0 Utilities 1,955 0 Commodities & Supplies 2,513 0 Total Health Inspections 123,409 0 Total Community Development Dept. 2,470,900 0 31 Human Services Department 01 Human Services Administration Personal Services 113,313 0 Employee Benefits 41,431 0 Other Employee Costs 1,600 0 Contractual Services 12,478 0 Utilities 10,000 0 Commodities & Supplies 74,680 0 Office Equipment 1,000 0 Total Human Services Administration 254,502 0 02 Social Services Personal Services 260,971 0 Employee Benefits 91,017 0 Other Employee Costs 1,650 0 Commodities & Supplies 2,500 0 Total Social Services 356,138 0 6 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2008 TAX LEVY Amount Amount Budgeted Levied 03 Nursing/Health Services Personal Services 100,87 I 0 Employee Benefits 35,702 0 Other Employee Costs 500 0 Contractual Services 31,650 0 Commodities & Supplies 32,786 0 Total Nursing/Health Services 20 1,509 0 04 Senior Center Leisure Programs Personal Services 25,307 0 Employee Benefits 8,291 0 Contractual Services 12,000 0 Commodities & Supplies 700 0 Total Senior Programs 46,298 0 Total Human Services Department 858,447 0 41 Police Department 01 Police Administration Personal Services 1,048,202 0 Employee Benefits 1,898, I 45 0 Other Employee Costs 147,200 0 Contractual Services 113,850 0 Utilities 44,700 0 Commodities & Supplies 22,820 0 Office Equipment 1,400 0 Total Police Administration 3,276,3 I 7 0 02 Patrol and Traffic Enforcement Personal Services 6,725,060 4,023,385 Employee Benefits 1,226,723 0 Contractual Services 503,850 0 Commodities & Supplies 75,450 0 Office Equipment 5,500 0 Other Equipment 12,300 0 Total Patrol and Traffic Enforcement 8,548,883 4,023,385 03 Crime Prevention & Public Services Personal Services 287,230 0 Employee Benefits 60,902 0 Other Employee Costs 5,300 0 Contractual Services 3,500 0 Commodities & Supplies 9,650 0 Total Crime Prevention & Public Services 366,582 0 7 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2008 TAX LEVY Amount Amount Budgeted Levied 04 Investigative and Juvenile Program Personal Services 1,051,350 0 Employee Benefits 174,358 0 Contractual Services 39,300 0 Commodities & Supplies 4,550 0 Office Equipment 400 Other Equipment 500 Total Investigative and Juvenile Program 1,270,458 0 05 Crossing Guards Personal Services 28,100 0 Employee Benefits 2,160 0 Commodities & Supplies 150 0 Total Crossing Guards 30,410 0 06 Equipment Maintenance & Operations Contractual Services 763,903 0 Commodities & Supplies 13,900 0 Other Equipment 12,200 0 Total Equipment Maintenance & Operations 790,003 0 Total Police Department 14,282,653 4,023,385 42 Fire Department 01 Fire Administration Personal Services 552,138 0 Employee Benefits 1,707,098 0 Other Employee Costs 73,600 0 Contractual Services 33,200 0 Commodities & Supplies 11,200 0 Office Equipment 2,150 0 Other Equipment 7,000 0 Total Fire Administration 2,386,386 0 02 Fire Department Operations Personal Services 6,098,032 3,596,662 Employee Benefits 954,125 0 Other Employee Costs 60,200 0 Contractual Services 148,755 0 Commodities & Supplies 27,750 0 Building Improvements 3,800 0 Other Equipment 156,100 0 Total Fire Department Operations 7,448,762 3,596,662 8 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2008 TAX LEVY Amount Amount Budgeted Levied 03 Fire Training Academy Personal Services 9,000 0 Employee Benefits 131 0 Commodities & Supplies 5,000 0 Total Fire Training Academy 14,131 0 04 Fire Prevention Personal Services 426,548 0 Employee Benefits 146,290 0 Other Employee Costs 7,325 0 Contractual Services 1,900 0 Commodities & Supplies 11,800 0 Other Equipment 800 0 Total Fire Prevention 594,663 0 05 Fire Communications Contractual Services 14,300 0 Utilities 44,200 0 Commodities & Supplies 3,500 0 Other Equipment 2,500 0 Total Fire Communications 64,500 0 06 Equipment Maintenance Personal Services 127,345 0 Employee Benefits 46,470 0 Other Employee Costs 1,500 0 Contractual Services 228,900 0 Commodities & Supplies 91,750 0 Other Equipment 500 0 Total Equipment Maintenance 496,465 0 07 Emergency Preparedness Personal Services 20,699 0 Employee Benefits 3,409 0 Other Employee Costs 1,800 0 Contractual Services 5,510 0 Commodities & Supplies 17,085 0 Total Emergency Preparedness 48,503 0 9 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2008 TAX LEVY Amount Amount Budgeted Levied 08 Paid-an-Call Program Personal Services 22,960 0 Employee Benefits 1,758 0 Other Employee Costs 12,085 0 Other Equipment 1,060 0 Total Paid-an-Call Program 37,863 0 Total Fire Department 11,091,273 3,596,662 50 Public Works - Administration 01 Public Works Administration Personal Services 248,300 0 Employee Benefits 150,511 0 Other Employee Costs 34,452 0 Contractual Services 781,810 0 Utilities 20,837 0 Commodities & Supplies 14,909 0 Office Equipment 1,123 0 Other Equipment 623 0 Total Public Works Administration 1,252,565 0 51 Public Works - Streets/Bldgs/Parking 01 Street Division Administration Personal Services 117,625 0 Employee Benefits 31,625 0 Total Street Division Administration 149,250 0 02 Maintenance of Public Buildings Personal Services 392,192 0 Employee Benefits 127,081 0 Contractual Services 309,770 0 Utilities 78,193 0 Commodities & Supplies 87,511 0 Total Maintenance of Public Buildings 994,747 0 04 Street Maintenance Personal Services 182,702 0 Employee Benefits 49,820 0 Contractual Services 15,552 0 Commodities & Supplies 29,444 0 Infrastructure 169,866 0 Total Street Maintenance 447,384 0 10 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2008 TAX LEVY Amount Amount Budgeted Levied 05 Snow Removal Personal Services 398,003 0 Employee Benefits 53,792 0 Contractual Services 117,176 0 Commodities & Supplies 10,188 0 Other Equipment 18,770 0 Total Snow Removal 597,929 0 07 Storm Sewer and Basin Maintenance Personal Services 122,378 0 Employee Benefits 41,891 0 Contractual Services 11,670 0 Commodities & Supplies 7,231 0 Total Storm Sewer and Basin Maintenance 183,170 0 08 Maintenance of State Highways Personal Services 35,194 0 Employee Benefits 7,743 0 Contractual Services 17,644 0 Commodities & Supplies 30,829 0 Total Maintenance of State Highways 91,410 0 09 Traffic Sign Maintenance Personal Services 77,769 0 Employee Benefits 25,030 0 Commodities & Supplies 21,993 0 Total Traffic Sign Maintenance 124,792 0 12 Flood Control Personal Services 65,000 0 Employee Benefits 9,500 0 Contractual Services 115,000 0 Commodities & Supplies 5,000 0 Total Flood control 194,500 0 Total Public Works - Streets/Bldgs/Parking 2,783,182 0 52 Public Works - Forestry/Grounds 01 Forestry Division Administration Personal Services 168,246 0 Employee Benefits 52,810 0 Total Forestry Division Administration 22 I ,056 0 I I VILLAGE OF MOUNT PROSPECT, ILLINOIS 2008 TAX LEVY Amount Amount Budgeted Levied 02 Maintenance of Grounds Personal Services 258,331 0 Employee Benefits 78,203 0 Contractual Services 190,936 0 Commodities & Supplies 8,656 0 Other Equipment 44,247 0 Total Maintenance of Grounds 580,373 0 03 Forestry Program Personal Services 275,726 0 Employee Benefits 93,473 0 Other Employee Costs 3,662 0 Contractual Services 740,893 0 Commodities & Supplies 10,702 0 Total Forestry Program 1,124,456 0 04 Public Grounds Beautification Personal Services 24,847 0 Employee Benefits 7,937 0 Contractual Services 14,234 0 Commodities & Supplies 53,236 0 Total Public Grounds Beautification 100,254 0 Total Public Works - Forestry/Grounds 2,026,139 0 52 Public Works - Engineering 01 Engineering Services Personal Services 554,546 0 Employee Benefits 166,086 0 Other Employee Costs 5,552 0 Contractual Services 62,943 0 Commodities & Supplies 7,105 0 Office Equipment 546 0 Other Equipment 1,638 0 Total Engineering Services 798,416 0 05 Traffic Control & Street Lighting Personal Services 90,704 0 Employee Benefits 28,999 0 Contractual Services 5,307 0 Utilities 90,000 0 Commodities & Supplies 25,750 0 Total Traffic Signals & Street Lighting 240,760 0 Total Public Works - Engineering 1,039,176 0 12 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2008 TAX LEVY Amount Amount Budgeted Levied 61 Community Service Programs 01 Community Groups & Misc. Contractual Services 115,100 0 Other Expenditures 11,000 0 Total Community Groups & Misc. 126,100 0 03 4th of July & Civic Events, Etc. Personal Services 85,000 0 Employee Benefits 13,992 0 Contractual Services 52,070 0 Commodities & Supplies 16,555 0 Total 4th of July & Civic Events, Etc. 167,617 0 04 Holiday Decorations Personal Services 6,694 0 Employee Benefits 2,381 0 Contractual Services 70,970 0 Commodities & Supplies 14,832 0 Total Holiday Decorations 94,877 0 05 Blood Donor Program Personal Services 1,920 0 Employee Benefits 147 0 Commodities & Supplies 840 0 Total Blood Donor Program 2,907 0 Total Community Service Programs 391,501 0 82 Retiree Pensions 01 Miscellaneous Pensions Pension Benefits 45,600 0 Total Miscellaneous Pensions 45,600 0 Total Retiree Pensions 45,600 0 13 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2008 TAX LEVY 89 Non-Departmental 01 Contingencies Interfund Transfers Total Contingencies Total Non-Departmental TOTAL GENERAL FUND TOTAL BUDGET FOR GENERAL FUND AMOUNT TO BE RAISED BY TAX LEVY ADD 2% FOR LOSS & COST OF COLLECTION TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR GENERAL FUND ARTICLE II - REFUSE DISPOSAL FUND 56 Public Works - Refuse Disposal o I Refuse Disposal Program Personal Services Employee Benefits Other Employee Costs Contractual Services Utilities Insurance Commodities & Supplies Total Refuse Disposal Program 2 Refuse Leaf Removal Program Personal Services Employee Benefits Commodities & Supplies Total Leaf Removal Program TOTAL REFUSE DISPOSAL FUND TOTAL BUDGET FOR REFUSE DISPOSAL FUND AMOUNT TO BE RAISED BY TAX LEVY ADD 2% FOR LOSS & COST OF COLLECTION TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR REFUSE DISPOSAL FUND 14 Amount Budgeted Amount Levied 721,000 721,000 721,000 o o o 42,002,355 7,620,047 42,002,355 7,620,047 152,401 7,772,448 87,657 0 28,399 0 1,835 0 3,766,799 1,750,000 610 0 31,010 0 15,260 0 3,931,570 1,750,000 150,040 0 43,896 0 16,025 0 209,961 0 4,141,531 1,750,000 4,141,531 1,750,000 35,000 1,785,000 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2008 TAX LEVY ARTICLE III - SERIES 2001 DEBT SERVICE FUND, PUBLIC BUILDINGS 81 Debt Service 02 G.O.Bonds - Property Taxes Bond Principal Interest Expense Bank and Fiscal Fees Total G.O.Bonds - Property Taxes Total Debt Service TOTAL SERIES 2001 DEBT SERVICE FUND TOTAL BUDGET FOR SERIES 2001 DEBT SERVICE FUND, PUBLIC BUILDINGS AMOUNT TO BE RAISED BY TAX LEVY ADD 2% FOR LOSS & COST OF COLLECTION TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR SERIES 2001 DEBT SERVICE FUND, PUBLIC BUILDINGS ARTICLE IV - SERIES 2003 DEBT SERVICE FUND, PUBLIC BUILDINGS 81 Debt Service 02 G.O.Bonds - Property Taxes Bond Principal Interest Expense Bank and Fiscal Fees Total G.O.Bonds - Property Taxes Total Debt Service TOTAL SERIES 2001 DEBT SERVICE FUND TOTAL BUDGET FOR SERIES 2003 DEBT SERVICE FUND, PUBLIC BUILDINGS AMOUNT TO BE RAISED BY TAX LEVY ADD 2% FOR LOSS & COST OF COLLECTION TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR SERIES 2003 DEBT SERVICE FUND, PUBLIC BUILDINGS 15 Amount Budgeted Amount Levied 215,000 215,000 165,740 165,740 600 0 381,340 380,740 381,340 380,740 381,340 380,740 381,340 380,740 7,615 388,355 510,000 510,000 399,908 399,908 600 0 910,508 909,908 910,508 909,908 910,508 909,908 910,508 909,908 18,198 928, I 06 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2008 TAX LEVY ARTICLE V - POLICE PENSION FUND 82 Retiree Pensions 02 Police Pensions Pension Benefits Contractual Services Commodities and Supplies Total Police Pensions Total Retiree Pensions TOTAL POLICE PENSION FUND TOTAL BUDGET FOR POLICE PENSION FUND AMOUNT TO BE RAISED BY TAX LEVY ADD 2% FOR LOSS & COST OF COLLECTION TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR POLICE PENSION FUND ARTICLE VI - FIREFIGHTERS' PENSION FUND 82 Retiree Pensions 03 Firefighters' Pensions Pension Benefits Contractual Services Other Supplies Total Firefighters' Pensions Total Retiree Pensions TOT AL FIREFIGHTERS' PENSION FUND TOTAL BUDGET FOR FIREFIGHTERS' PENSION FUND AMOUNT TO BE RAISED BY TAX LEVY ADD 2% FOR LOSS & COST OF COLLECTION TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR FIREFIGHTERS' PENSION FUND 16 Amount Budgeted Amount Levied 2,900,500 1,521,096 2,300 0 250 0 2,903,050 1,521,096 2,903,050 1,521,096 2,903,050 1,521,096 2,903,050 1,521,096 30,422 1,551,518 2,802,750 1,50 1,020 1,500 0 250 0 2,804,500 1,50 1,020 2,804,500 1,501,020 2,804,500 1,501,020 2,804,500 1,501,020 30,020 1,531,040 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2008 TAX LEVY ARTICLE VII - MOUNT PROSPECT LIBRARY FUND 95 Mount Prospect Library 02 Library Services Component Unit Expenditures Bond Principal Interest Expense Total Library Services TOTAL MOUNT PROSPECT LIBRARY FUND TOTAL BUDGET FOR MOUNT PROSPECT LIBRARY FUND AMOUNT TO BE RAISED BY TAX LEVY - Component Unit Expenditures AMOUNT TO BE RAISED BY TAX LEVY - Bond Principal and Interest ADD 2% FOR LOSS & COST OF COLLECTION TOT AL AMOUNT TO BE RAISED BY TAX LEVY FOR MOUNT PROSPECT LIBRARY FUND 17 Amount Budgeted Amount Levied 7,103,880 6,925,270 734,934 734,934 895,000 895,000 8,733,8 I 4 8,555,204 8,733,814 8,555,204 8,733,814 6,925,270 1,629,934 171,104 8,726,308 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2008 TAX LEVY SUMMARY Amount Total to be Raised Amount Tax Levy Amount by for Loss lncl. Loss Article Fund Budgeted Tax Levy and Cost and Cost I General $ 42,002,355 7,620,047 152,401 7,772,448 II Refuse Disposal 4,141,531 1,750,000 35,000 1,785,000 III Series 200 I Debt Service, Public Bldgs 381,340 380,740 7,615 388,355 IV Series 2003 Debt Service, Public Bldgs. 910,508 909,908 18,198 928,106 V Police Pension Fund 2,903,050 1,521,096 30,422 1 ,551 ,518 VI Firefighters' Pension Fund 2,804,500 1,501,020 30,020 1,531,040 Village Totals 53,143,284 13,682,811 273,656 13,956,467 VII Mount Prospect Library Library Services 7,103,880 6,925,270 138,505 7,063,775 Library Debt Service 1,629,934 1,629,934 32,599 1,662,533 Library Totals 8,733,814 8,555,204 171,104 8,726,308 Village and Library Totals 61,877 ,098 22,238,015 444,760 22,682,775 18 Section 3: The sum of $443,800 is estimated to be received from personal property replacement tax revenue during the fiscal year commencing January 1, 2008 and ending December 31, 2008 and has been included herein as funds to be derived from sources other than property taxes for general obligation bonds and interest, pensions, library services and general corporate purposes. 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: NA YES: ABSENT: PASSED and APPROVED this _ day of December, 2008. Irvana K. Wilks, Mayor ATTEST: M. Lisa Angell, Village Clerk 19 ORDINANCE NO. AN ORDINANCE AUTHORIZING THE LEVY AND COLLECTION OF TAXES FOR THE MUNICIPAL PURPOSES OF SPECIAL SERVICE AREA NUMBER FIVE OF THE VILLAGE OF MOUNT PROSPECT FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2008 AND ENDING DECEMBER 31, 2008 PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES the _ day of ,2008 Published in pamphlet form by authority of the corporate authorities of the Village of Mount Prospect, Illinois the _ day of , 2008. ORDINANCE NO. AN ORDINANCE AUTHORIZING THE LEVY AND COLLECTION OF TAXES FOR THE MUNICIPAL PURPOSES OF SPECIAL SERVICE AREA NUMBER FIVE OF THE VILLAGE OF MOUNT PROSPECT FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2008 AND ENDING DECEMBER 31,2008 NOW THEREFORE, BE IT ORDAINED BY THE President and Board of Trustees of the Village of Mount Prospect, Cook County, Illinois: Section 1: That the sum of One Million Five Hundred Fifteen Thousand Four Hundred Sixty- F our Dollars ($1,515,464), the same being the total amount to be levied of budget appropriations heretofore made for the municipal purposes for the fiscal year beginning January 1, 2008, and ending December 31,2008, 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 Special Service Area Number 5 of the Village of Mount Prospect according to the valuation of said property as is, or shall be, assessed or equalized by State and County purposes for the current year 2008. The budgetary appropriations having been made heretofore by the President and Board of Trustees ofthe Village of Mount Prospect were passed and approved by Ordinance No. 5672 at a meeting hereof regularly convened and held in said Village of Mount Prospect, Illinois on the 18th day of December, 2007, and as amended by Ordinance No. 5697 passed and approved on the 3 rd day of June, 2008 and further amended by Ordinance passed and approved on the 2nd day of December, 2008 and thereafter duly published according to law, the various objects and purposes for said budgetary appropriations were heretofore made are 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 Article I. Section 2: That the County Clerk is directed to add 2% to the requested tax levy as a provision for loss and cost. Section 3: 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 4: That, if any part of this Ordinance shall be held to be unconstitutional or otherwise invalid, such unconstitutionality 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 if they had known that such part or parts thereof would be declared unconstitutional or otherwise invalid. Section 5: 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: NAYS: ABSENT: PASSED and APPROVED this day of ,2008 Irvana K. Wilks, Mayor ATTEST: M. Lisa Angell, Village Clerk 2 ARTICLE 1 - SPECIAL SERVICE AREA NO.5 610 Lake Water Acquisition 6105512-540800 6105512-540815 SSA #5 JAWA Water SSA #5 JAWA Fixed Costs TOTAL APPROPRIATED FOR SPECIAL SERVICE AREA NO.5 LAKE WATER ACQUISITION AMOUNT TO BE RAISED BY TAX LEVY ADD 2% FOR LOSS AND COST OF COLLECTION TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR SPECIAL SERVICE AREA NO.5 SUMMARY Article Special Service Area NO.5 Amount Budaeted 3,565,000 Amount to be Levied 1,515,464 Amount Budgeted 2,448,000 1,117,000 3,565,000 Amount for Loss & Cost 30,309 Amount Levied 398,464 1,117,000 1,515,464 30,309 1,545,773 Total Tax Levy 1,545,773 Mount Prospt.>ct INTEROFFICE MEMORANDUM Village of Mount Prospect Mount Prospect, Illinois FROM: MICHAEL E. JANONIS, VILLAGE MANAGER DIRECTOR OF FINANCE ~.~ 1& &. O. TO: DATE: NOVEMBER 24, 2008 SUBJECT: 2008 BUDGET AMENDMENT NO.2 PURPOSE: Present a recommendation that the annual budget be amended for fiscal year beginning January 1, 2008 and ending December 31,2008. BACKGROUND: Ordinance 5672, adopted December 18, 2007, established the annual budget for the year ending December 31,2008. Ordinance 5697 adopted on June 3, 2008 provided for amendment #1 of the 2008 budget. DISCUSSION: Each year the Village prepares two separate amendments to the current year's budget. Amendment #1, prepared in Spring/Summer, amends the budget for carry-over items from the prior year's budget. These are typically construction or other contractual service type projects that are started in the previous year but not completed. Amendment #2, prepared in November or December, amends the budget to account for material variations in revenues and expenditures. Many times these are the result of fluctuations in the economy affecting revenues (either positively or negatively) or extraordinary or unanticipated charges for expenditures that occurred during the year. A proposed ordinance amending the 2008 annual budget is attached for the Board's consideration. In total, this amendment decreases revenue projections by $13,463,278 and increasing the budget for expenditures by $2,832,835. Amendments to the budget impacting revenues are made up of various adjustments to tax, fee and other intergovernmental revenue accounts, grant receipts, investment income and other reimbursements. Two significant revenue adjustments occurred in the Police and Fire Pension Funds related to investment income. Revenue in the Police Pension fund was decreased $5.8 million while revenue in the Fire Pension Fund was decreased $6.0 million due to losses in the investment portfolio. Other Financing Sources in the Downtown Redevelopment Construction Fund consisting of bond proceeds was reduced by $2.5 million. Bonds for redevelopment purposes were not issued as anticipated. Risk Management revenue consisting of charges for service was reduced by $714,000 reflecting lower than expected claims for 2008. Overall, General Fund revenues were increased $1,013,000. F 2008 Budget Amendment NO.2 November 24, 2008 Page 2 There are several notable budget adjustments related to expenditures. The first is a transfer from the General Fund to the Capital Improvement Fund. A total of $721,000 is being transferred in 2008 to cover the cost of a new phone system and for architectural services related to the construction of a replacement fire station #14, emergency operations center and public works expansion. The transfer for architectural services was anticipated, but not budgeted since it was unknown how much was going to be needed during the year. Additional expenses in the General Fund that were not anticipated are related to the storm event in September. The General Fund expense budget was increased $194,500 for expenditures for flood control. Finally, additional pension benefits in the Police and Fire Pension Funds totaling $344,000 are due to new retirements and creditable service transfers to other police departments. RECOMMENDATION: It is recommended the Village Board adopt the proposed budget amendment #2 for the 2008 annual budget. J~d7c~ DAVID O. ERB DIRECTOR OF FINANCE Copy: Finance Commission Department Directors DOE/ 1:\Budget 2008\Amendments\Board Memo Amendment #2 - November 2008.doc ORDINANCE NO. AN ORDINANCE MAKING CERTAIN AMENDMENTS TO THE ANNUAL BUDGET ADOPTED FOR THE FISCAL YEAR COMMENCING JANUARY 1,2008 AND ENDING DECEMBER 3 I, 2008 PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES the _ day of ,2008 Published in pamphlet form by authority of the corporate authorities of the Village of Mount Prospect, Illinois the _ day of ,2008. ORDINANCE NO. AN ORDINANCE MAKING CERTAIN AMENDMENTS TO THE ANNUAL BUDGET ADOPTED FOR THE FISCAL YEAR COMMENCING JANUARY 1,2008 AND ENDING DECEMBER 31, 2008 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, 2008 and ending December 31, 2008 was adopted through the passage of Ordinance No. 5672 approved by the Corporate Authorities of the Village of Mount Prospect on December 18,2007; and WHEREAS, the President and Board of Trustees of the Village of Mount Prospect have passed and approved Ordinance No. 5697 on June 3, 2008, amending the annual budget for the fiscal year commencing January 1, 2008 and ending December 31,2008; 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 1,2008 and ending December 31,2008; and WHEREAS, the President and Board of Trustees of the Village of Mount Prospect believe the changes, as specified on the attached January 1, 2008 through December 31, 2008 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 No.2, attached hereto. NOW THEREFORE BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS ACTING IN THE EXERCISE OF THEIR HOME RULE POWERS: SECTION ONE: That the fiscal year budget for January 1, 2008 through December 31, 2008 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: NA YES: ABSENT: PASSED and APPROVED this day of ,2008. Irvana K. Wilks Mayor ATTEST M. Lisa Angell Village Clerk VILLAGE OF MOUNT PROSPECT Budget Amendment No.2 Fiscal Year January 1, 2008 through December 31, 2008 Revenues Original Amended Revenue Increase Revenue Fund/Program/Classification Account # Account Description Estimate (Decrease) Estimate General Fund (001) Property Taxes 400200 Property Taxes - Prior 75,000 150,000 225,000 Property Taxes 400373 Property Taxes - Fire Pen 0 50,000 50,000 Other Taxes 410150 Home Rule Sales Tax 1,280,000 (30,000) 1,250,000 Other Taxes 410400 Food & Beverage Tax 798,500 (38,500) 760,000 Other Taxes 414000 Real Estate Transfer Tax 785,000 (25,000) 760,000 Other Taxes 415000 Hotel/Motel Tax 60,000 (15,000) 45,000 licenses, Permits & Fees 421100 Building Permits 433,000 (78,000) 355,000 Licenses, Permits & Fees 421600 Reinspection Fees 50,000 10,000 60,000 licenses, Permits & Fees 421900 Stormwater Detention Fee 80,000 (80,000) 0 Licenses, Permits & Fees 422500 Nuisance Abatement Fee 0 36,000 36,000 Licenses, Permits & Fees 422600 Utility Permit Fees 0 2,500 2,500 licenses, Permits & Fees 423000 LandlordlTenant Fees 212,000 28,000 240,000 Intergovernmental Revenues 430000 State Sales Tax 8,670,000 630,000 9,300,000 Intergovernmental Revenues 430100 Income Tax 5,126,000 174,000 5,300,000 Intergovernmental Revenues 430400 State Use Tax 710,000 40,500 750,500 Intergovernmental Revenues 431000 Replacement Tax - R&B 2,000 8,000 10,000 Intergovernmental Revenues 434400 IL Housing Authority Grant 0 32,000 32,000 Intergovernmental Revenues 434402 RT A Grant 125,000 (50,000) 75,000 Intergovernmental Revenues 434407 Dept. of Aging Grant 0 200,000 200,000 Intergovernmental Revenues 435900 Other Grants 40,000 73,000 113,000 Charges for Service 441200 Ambulance Billing Fees 927,000 (177,000) 750,000 Fines & Forfeits 450100 Parking Fines 260,000 40,000 300,000 Fines & Forfeits 450200 Local Ordinance Fines 7,500 17,500 25,000 Investment Income 460800 Bank Account Interest 17,000 47,000 64,000 Investment Income 460810 Sweep Account Interest 12,000 18,000 30,000 Investment Income 464001 IMET Interest 54,000 (53,000) 1,000 Other Revenue 486050 Sister City Events 0 3,000 3,000 19,724,000 1,013,000 20,737,000 All other General Fund accounts 19,653,831 0 19,653,831 Total General Fund 39,377,831 1,013,000 40,390,831 Motor Fuel Tax Fund (050) Intergovernmental Revenue 432000 State MFT 1,664,000 (96,000) 1,568,000 Investment Income 460100 Interest Income 14,000 6,000 20,000 Reimbursements 472100 MFT Projects 4,000 8,000 12,000 1,682,000 (82,000) 1,600,000 All other Motor Fuel Tax Fund accounts 3,000 0 3,000 Total Motor Fuel Tax Fund 1,685,000 (82,000) 1,603,000 IEPA Flood Control Loans (380) Other Taxes 410100 Home Rules Sales Tax 332,288 (30,000) 302,288 332,288 (30,000) 302,288 All other tEPA Flood Control Fund accounts 0 0 0 TotallEPA Flood Control Fund accounts 332,288 (30,000) 302,288 VILLAGE OF MOUNT PROSPECT Budget Amendment No.2 Fiscal Year January 1, 2008 through December 31,2008 Revenues Original Amended Revenue Increase Revenue F und/Program/Classification Account # Account Description Estimate ( Decrease) Estimate Capital Improvement Fund (510) Other Taxes 410250 Home Rules Sales Tax 1,180,000 (30,000) 1,150,000 Intergovernmental 434201 DCEO Grant 75,000 (56,250) 18,750 Intergovernmental 434305 FEMA Grant 164,800 (164,800) 0 Other Revenue 485000 Developer Donations 0 25,000 25,000 Other Financing Sources 490550 Transfer In 0 721,000 721,000 1,419,800 494,950 1,914,750 All other Capital Improvement Fund accounts 19,000 0 19,000 Total Capital Improvement Fund 1,438,800 494,950 1,933,750 Downtown Redevelopment Construction (550) Other Financing Sources 494100 Bond Proceeds 2,500,000 (2,500,000) 0 2,500,000 (2,500,000) 0 All other Downtown Redevelopment Fund accounts 1,421,500 0 1,421,500 Total Downtown Redevelopment Fund 3,921,500 (2,500,000) 1,421,500 Flood Control Construction Fund (590) Licenses, Permits & Fees 421900 Stormwater Retention 0 80,000 80,000 0 80,000 80,000 All other Flood Control Construction Fund accounts 10,000 0 10,000 Total Flood Control Construction Fund 10,000 80,000 90,000 Water & Sewer Fund (610) Investment Income 460100 Interest Income 145,000 45,000 190,000 Other Revenue 480900 Misc. Income 15,000 15,000 30,000 160,000 60,000 220,000 All other Water & Sewer Fund accounts 11,416,500 0 11,416,500 Total Water & Sewer Fund 11,576,500 60,000 11,636,500 Risk Management Fund (690) Charges for Service General Fund Charge 833,132 (211,132) 622,000 Charges for Service Water Fund Charge 129,146 (24,146) 105,000 Charges for Service General Fund Charge-Med 3,587,148 (442,148) 3,145,000 Charges for Service Water Fund Charge-Med 304,802 (36,802) 268,000 4,854,228 (714,228) 4,140,000 All other Risk Management Fund accounts 1,894,043 0 1,894,043 Total Risk Management Fund 6,748,271 (714,228) 6,034,043 Police Pension (710) Investment Income 462040 Realized Gains/Losses-C 20,000 (105,000) (85,000) Investment Income 463016 Unrealized Gain/Loss-C 100,000 (190,000) (90,000) Investment Income 463017 Unrealized Gain/Loss-S 200,000 (340,000) (140,000) Investment Income 464000 Market Gain on Equities 1,120,000 (5,120,000) (4,000,000) 1,440,000 (5,755,000) (4,315,000) All other Police Pension Fund accounts 3,343,500 0 3,343,500 Total Police Pension Fund 4,783,500 (5,755,000) (971,500) 2 F und/Program/Classification Fire Pension (720) Investment Income Investment Income Investment Income Investment Income All other Fire Pension Fund Accounts Total Fire Pension Fund Total Estimated Revenues Funds being changed All other Village Budget accounts Total Estimated Revenues After Changes VILLAGE OF MOUNT PROSPECT Budget Amendment No.2 Fiscal Year January 1, 2008 through December 31, 2008 Account # 462040 463016 463017 464000 Revenues Account Description Realized Gains/Losses-C Unrealized Gain/Loss-C Unrealized Gain/Loss-S Market Gain on Equities 3 Original Amended Revenue Increase Revenue Estimate (Decrease) Estimate 20,000 (125,000) (105,000) 150,000 (310,000) (160,000) 200,000 (375,000) (175,000) 1,120,000 (5,220,000) (4,100,000) 1,490,000 (6,030,000) (4,540,000) 3,286,300 0 3,286,300 4,776,300 (6,030,000) (1,253,700) 74,649,990 13,712,115 88,362,105 (13,463,278) o 61,186,712 13,712,115 ( 13,463,278) 74,898,827 VILLAGE OF MOUNT PROSPECT Budget Amendment No.2 Fiscal Year January 1, 2008 through December 31, 2008 Expenditures Current Amended Budget Increase Budget Fund/Program/Classification Account # Account Description Amount (Decrease) Amount General Fund (001) Public Representation - Mayor and Board of Trustees Contractual Services 0010102-540185 Special Projects 4250 42,750 47,000 VMO - Legal Contractual Services 0011102-540085 Legal - General Counsel 385,000 100,000 485,000 Contractual Services 0011102-540215 Postage 0 1,000 1,000 VMO - Public Information Contractual Services 0011105-540110 Other Professional Services 38,525 12,000 50,525 Finance Department - Administration Personal Services 0011701-500650 Sick Leave Incentive 0 2,000 2,000 Contractual Services 0011701-540225 Other Services 16,500 23,500 40,000 Contractual Services 0011701-540226 Bank Processing Fees 7,500 42,500 50,000 Commodities & Supplies 0011701-570090 Paper & Supplies 6,375 2,625 9,000 Finance Department - Insurance Insurance 0011705-560102 Liability Insurance 264,533 (37,533) 227,000 Community Development - Administration Contractual Services 0012101-540262 Neighborhood Resource Center 25,000 43,000 68,000 Community Development - Planning & Zoning Contractual Services 0012102-540282 First Time Homeowners 22,000 10,000 32,000 Contractual Services 0012102-540284 RT AP Grant 150,000 (60,000) 90,000 Community Development - Economic Development Contractual Services 0012103-540249 Randhurst Economic Development 0 42,000 42,000 Human Services - Administration Commodities & Supplies 0013101-570080 Other Supplies 1,500 68,500 70,000 Police Department - Administration Personal Services 0014101-500000 Full-Time Earnings 731,960 64,040 796,000 Personal Services 0014101-500700 Vacation/Personal Incentive 45,000 65,000 110,000 Personal Services 0014101-500750 Retiree Sick Incentive 63,800 6,200 70,000 Fire Department - Operations Personal Services 0014202-500300 Overtime 332,150 117,850 450,000 Other Equipment 0014202-670014 Paramedic Equipment 20,000 70,000 90,000 Fire Department - Equipment Maintenance Commodities & Supplies 0014206-570635 Vehicle Fuel- Gas 44,200 22,800 67,000 Public Works - Streets Personal Services 0015102-500300 Overtime 36,266 8,734 45,000 Utilities 0015102-550100 Natural Gas/Heat 100,000 (25,000) 75,000 Public Works - Street Maintenance Personal Services 0015104-500300 Overtime 40,151 9,849 50,000 Contractual Services 0015104-540705 Refuse Disposal 5,624 4,376 10,000 Public Works - Snow Removal Personal Services 0015105-500300 Overtime 125,000 180,000 305,000 Contractual Services 0015105-540555 Snow Removal - Contractual 50,000 50,000 100,000 Public Works - Maintenance of State Highways Personal Services 0015108-500300 Overtime 3,502 11,498 15,000 Public Works - Flood Control Personal Services 0015112-500300 Overtime 0 65,000 65,000 Employee Benefits 0015112-510000 Social Security 0 3,500 3,500 Employee Benefits 0015112-510100 Medicare 0 1,000 1,000 Employee Benefits 0015112-510200 IMRF 0 5,000 5,000 Contractual Services 0015112-540225 Other Services 0 115,000 115,000 Commodities & Supplies 0015112-570080 Other Supplies 0 5,000 5,000 VILLAGE OF MOUNT PROSPECT Budget Amendment No.2 Fiscal Year January 1, 2008 through December 31, 2008 Expenditures Current Amended Budget Increase Budget F und/Program/Classification Account # Account Description Amount ( Decrease) Amount General Fund (001) (cont.) Public Works - Forestry Personal Services 0015202-500300 Overtime 18,530 5,470 24,000 Community Service Programs Contractual Services 0016103-540225 Other Services 925 3,075 4,000 Contractual Services 0016103-540960 Street Banner Installation 4,500 3,000 7,500 Contractual Services 0016103-540965 Fireworks/Lions Club 3,500 16,000 19,500 Commodities & Supplies 0016103-570810 Supplies for Parade/Block Party 7,900 2,100 10,000 Non-Departmental Interfund Transfers 0018901-800230 Transfer Out 0 721,000 721,000 2,554,191 1,822,834 4,377,025 All other General Fund accounts 37,625,330 0 37,625,330 Total General Fund 40,179,521 1,822,834 42,002,355 Refuse Fund (030) Refuse Disposal Commodities & Supplies 0305601-570775 Recycling Supplies 5,700 6,300 12,000 5,700 6,300 12,000 All other Refuse Fund accounts 4,129,531 0 4,129,531 Total Refuse Fund 4,135,231 6,300 4,141,531 Motor Fuel Tax Fund (050) Streets/Buildings Commodities & Supplies 0505105-570540 Salt/Calcium Chloride 150,000 110,000 260,000 150,000 110,000 260,000 All other Motor Fuel Tax Fund accounts 1,687,002 0 1,687,002 Total Motor Fuel Tax Fund 1,837,002 110,000 1,947,002 Asset Seizure Fund (080) Other Employee Costs 08041 04-520000 Training 0 8,000 8,000 Other Equipment 08041 04-670151 Other Equipment 1,000 19,000 20,000 1,000 27,000 28,000 All other Asset Seizure Fund accounts 0 0 0 Total Asset Seizure Fund 1,000 27,000 28,000 DEA Shared Funds Fund (085) Other Equipment 0854102-670151 Other Equipment 1,000 34,000 35,000 1,000 34,000 35,000 All other DEA Shared Funds Fund accounts 0 0 0 Total DEA Shared Funds Fund 1,000 34,000 35,000 DW Fine Fund (086) Other Employee Costs 0864102-520000 Training 500 9,500 10,000 Other Equipment 0864102-670151 Other Equipment 1,000 24,000 25,000 1,500 33,500 35,000 All other DUI Fine Fund accounts 0 0 0 Total DUI Fine Fund 1,500 33,500 35,000 5 6 VILLAGE OF MOUNT PROSPECT Budget Amendment No.2 Fiscal Year January 1, 2008 through December 31, 2008 Expenditures Current Amended Budget Increase Budget F und/Program/Classification Account # Account Description Amount (Decrease) Amount Vehicle Maintenance Fund (660) Personal Services 6605702-500300 Overtime 61,740 8,260 70,000 Contractual Services 6605702-540615 Equipment Maintenance 72,456 12,544 85,000 Commodities & Supplies 6605702-570645 Vehicle Maintenance Supplies 160,000 30,000 190,000 Commodities & Supplies 6605702-570635 Vehicle Fuel - Gas 315,000 100,000 415,000 609,196 150,804 760,000 All other Vehicle Maintenance Fund accounts 963,932 0 963,932 Total Vehicle Maintenance Fund 1,573,128 150,804 1,723,932 Risk Management Fund (690) Insurance 6908501-560204 Workers' Compensation Claims 600,000 100,000 700,000 Insurance 6908502-560112 Medical HMO 1,478,584 (148,584) 1,330,000 Insurance 6908501-560204 Workers' Compensation Claims 3,807,829 (383,829) 3,424,000 5,886,413 (432,413) 5,454,000 All other Risk Management Fund accounts 881,558 0 881,558 Total Risk Management Fund 6,767,971 (432,413) 6,335,558 Police Pension Fund (710) Pension Benefits 7108202-530100 Retirement Pensions 1,935,000 175,000 2,110,000 Pension Benefits 7108202-530200 Disability Pensions 226,000 114,000 340,000 Pension Benefits 7108202-530911 Pension Portability Expense 0 34,000 34,000 2,161,000 323,000 2,484,000 All other Police Pension accounts 419,050 0 419,050 Total Police Pension Fund 2,580,050 323,000 2,903,050 Fire Pensions (720) Pension Benefits 7208203-530100 Retirement Pensions 1,829,000 21,000 1,850,000 1,829,000 21,000 1,850,000 All other Police Pension accounts 954,500 0 954,500 Total Police Pension Fund 2,783,500 21,000 2,804,500 Total Village Budget Funds being changed 80,409,790 2,832,835 83,242,625 All other Village Budget Accounts 10,215,679 0 10,215,679 Total Village Budget after Changes 90,625,469 2,832,835 93,458,304 7 Mount Prospect INTEROFFICE MEMORANDUM Village of Mount Prospect Mount Prospect, Illinois TO: MICHAEL JANONIS, VILLAGE MANAGER ~\). ~J~'-9 z.\'Z. 06 FROM: DIRECTOR OF FINANCE DATE: NOVEMBER 21, 2008 PROPOSED 2009 BUDGET SUBJECT: PURPOSE: To present for the Village Board's consideration an ordinance adopting the annual budget for t beginning January 1, 2009 and ending December 31, 2009. BACKGROUND: The Village Manager released his proposed budget on October 3, 2008. Over the past two months th Finance Commission met four times to review the document. The Village Board, meeting as a Committee 0 the Whole, reviewed the document on October 28th and November 11th. DISCUSSION: Attached hereto are changes to the proposed 2009 budget that resulted from the above-mentioned meetings held with the Village Board and Finance Commission. Changes to the 2009 Proposed Budget Total Village revenues were decreased $125,000 from $101,681,933 to $101,556,933 while total Village expenditures decreased $110,000 from $97,239,446 to $97,129,446. These figures do not include the budget for the Mount Prospect Public Library. Included with this memo is a spreadsheet detailing the changes from the proposed budget for total Village revenues and expenditures. Refuse Fund: Property Taxes were reduced $275,000 while revenue from the new commercial refuse contract is estimated to generate $150,000. The $125,000 net decrease in revenue for 2009 will be made up using surplus fund balance. The current fund balance for the Refuse Fund is above the 25% benchmark. Guidelines from the Village's Fund Balance Policy permit the use of excess fund balance to support ongoing operations, reduce that portion of the property tax levy, or defer future rate increases. Flood Control Construction Fund: Expenditures for Private Property Drainage Solutions were decreased $50,000. These expenditures are supported by revenue from the Stormwater Retention Fee that went into effect in 2008. Revenue generated from the fee for 2008 and 2009 could not support the original budget request. As a result, the budget amount was lowered. Water & Sewer Fund: The budget for Lift Station Emergency Generators was increased $410,000 from $225,000 to $635,000. Funds that were budgeted for the installation of Emergency Generators at the Wells ($470,000) were eliminated to accommodate this change. The net effect was a decrease in expenses of $60,000. Library Fund: At the time the proposed budget was prepared and distributed, the Mount Prospect Public Library budget, included in the Village's budget as a component unit, was not yet available. The Library's budget for 2009 reflects revenues and expenditures of $9,450,626. Included in their budget is $1,630,934 for debt service on the Library's Series 2002 G.O. and Series 2006 Refunding bonds the Village issued on their behalf. A copy of the Library's 2009 budget and 2008 tax levy as approved by the Library Board is attached for your review. ~ 2009 Proposed Budget November 21,2008 Page 2 Chanaes to 2009 Forecast Budaet Total Village revenues increased $125,000 from the forecast budget amount. Property Taxes for the Refuse Fund were reduced $275,000 while revenue from the commercial refuse contract is estimated to generate $150,000. Total Village expenditures increased $50,000 related to the purchases of Emergency Generators for the Wells ($290,000 increase) and elimination of Lift Station Generators ($240,000 decrease). Summary With the aforementioned changes, the proposed 2009 budget for the Village totals $106,580,072 (including the Library). This represents a 7.3% increase from the current 2008 budget. Projected revenues for the Village in 2009 are $111,007,559. This is an increase of 14.4%. A public hearing on the proposed budget has been scheduled for December 16th. Notice of the public hearing will be published in the Daily Herald on December 4, 2008. The proposed ordinance attached will officially adopt the budget for the Village of Mount Prospect. Once the ordinance is passed, the Finance Department will revise the budget document to incorporate the approved changes. We expect to have the approved budget document produced no later than January 16th. RECOMMENDATION: It is recommended the Village Board pass the accompanying draft ordinance adopting the 2009 annual budget. J~t:P~ DAVID O. ERB DIRECTOR OF FINANCE DOE/ Attachment 1:\Budget 2009\Ordinance Cover Memo - 2009 Budget.doc RESOLUTION NO. 2008 A RESOLUTION APPROVING AND CERTIFYING THE 2009 BUDGET AND 2008 TAX LEVY DETERMINATION WHEREAS, heretofore the Board of Trustees of the Mount Prospect Public Library, Mount Prospect, Illinois, at open and public meetings have considered the financing requirements of the Mount Prospect Library for the year commencing January 1, 2009; and WHEREAS, the Board of Trustees of the Mount Prospect Public Library has determined the financial requirements of the Mount Prospect Public Library for the ensuing year and has caused to be made, a statement thereof, a copy of which is attached hereto and marked "Exhibit A," for inclusion in the 2009 budget of the Village of Mount Prospect; and WHEREAS, the Board of Trustees of the Mount Prospect Public Library has further determined the amount of money which in its judgment, it will be necessary to levy for library purposes in the 2008 tax levy ordinance to be adopted by the President and Board of Trustees of the Village of Mount Prospect; WHEREAS, expenditures from the LIBRARY FUND shall be under the direction of the Board of Trustees of the Mount Prospect Public Library. WHEREAS, that the amount of money hereby determined by the Board of Trustees of the Mount Prospect Public Library to be necessary for library purposes and to be included in the 2008 Tax Levy Ordinance of the Village of Mount Prospect (taking into consideration other income from accumulations from the prior year, anticipated tax shrinkage, fines, non-resident fees, and maintenance, repairs, and alterations of library buildings and equipment) and for the collection and deposit to the LIBRARY FUND, which includes funds for the Illinois Municipal Retirement Fund pursuant to Section 5/7-171, Chapter 40 of the Illinois Compiled Statutes; and for the maintenance repairs, and alterations of the library buildings and equipment, pursuant to Section 5/3-4 of Chapter 75 of the Illinois Compiled Statutes; and for insurance and audit fees pursuant to Section 5/4-14 of Chapter 75 of the Illinois Compiled Statutes. WHEREAS, in accordance with Chapter 75, Section 5/3-5 of the Illinois Compiled Statutes it is requested that the amount so determined be levied and collected in like manner with the other general taxes of the Village of Mount Prospect and that such taxes be paid directly by the County Collector to the Library fund. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE MOUNT PROSPECT PUBLIC LIBRARY, VILLAGE OF MOUNT PROSPECT: SECTION ONE: That the financial requirements for library purposes of the Mount Prospect Public Library require the budget for the year commencing January 1, 2009, and ending December 31, 2009, the sum of $9,450,626 such to be included within the 2009 Budget of the Village of Mount Prospect, Illinois. SECTION TWO: That the amount of money hereby determined by the Board of Trustees of the Mount Prospect Public Library to be necessary for library purposes and to be included in the 2008 tax levy and to be levied and collected in like manner with the other general taxes of the Village of Mount Prospect and that such taxes to be paid directly by the. County Collector to the Library Fund: $8,555,204. Expenditures from the Library Fund shall be under the direction of the Board of Trustees of the Mount Prospect Public Library. SECTION THREE: That the Secretary of the Board of Trustees of the Mount Prospect Public Library file a copy of this Resolution, with the Village Clerk of the Village of Mount Prospect, for transmittal to the President and Board of Trustees of the Village of Mount Prospect. SECTION FOUR: That if any part or parts of this Resolution shall be held to be unconstitutional, such unconstitutionality shall not affect the validity of the remaining parts of this Resolution. The Board of Trustees of the Mount Prospect Public Library hereby declares that it would have passed the remaining parts of this Resolution if it had known that such part or parts thereof would be declared unconstitutional. SECTION FIVE: That this Resolution shall be in full force and effect as of October 16, 2008. AYES: NAYS: Dale Draznin, Jane Everett, Sylvia Haas, Jackie Hinaber, Dick Tani, Bill Walters, John Zulaski None ABSENT: None PASSED THIS 16th day of October, 2008. The undersigned, President of the Board of Trustees of the Mount Prospect Public Library, Village of Mount Prospect, Illinois, does certify that the foregoing Resolution was duly adopted by the vote specified at a legally convened meeting of the Board of Trustees of the Mount Prospect Public Library held at the Mount Prospect Public Library building on the 16th day of October, 2008. O~D. a-- Dale Barbara Draznin, President MOUNT PROSPECT PUBLIC LIBRARY EXHIBIT A 2009 Budget and 2008 Tax Levy 2009 Budget 2008 Tax Levy Fund Amount Request LIBRARY GENERAL FUND Salaries & Benefits 4110 Salaries $ 4,326,877 $ 4,270,000 4120 I M R F Pension 302,257 250,000 4130 FICA&M/C 331,006 300,000 4140 Medical Insurance 510,950 425,000 4150 Unemployment Comp 5,000 5,000 Totals $ 5,476,090 $ 5,250,000 Management Expense 4210 Audit $ 3,800 $ 3,500 4220 Legal Fees 20,000 15,000 4230 Printing 48,700 45,000 4240 Community Services 80,344 70,000 4250 Programs 32,480 25,000 4260 Professional Dues 6,693 6,500 4270 Board 4,000 3,000 4280 Human Resources 60,611 50,000 4290 Other Operating Expense 5,000 2,000 Totals $ 261,628 $ 220,000 Operating Expenses 4310 Telecommunications $ 33,800 $ 30,000 4320 Insurance 85,000 80,000 4340 Office Supplies 31,500 30,000 4350 Library Supplies 29,000 25,000 4360 Postage 21,950 20,000 4370 Consultant Services 5,000 5,000 4380 Contract Services 18,225 15,000 4390 Computer Services 35,496 35,000 Totals $ 259,971 $ 240,000 Building Maintenance Costs 4410 Building Maintenance $ 74,850 $ 70,000 4420 Equipment Maintenance 64,550 60,000 4430 Equipment Rental 27,308 25,000 4440 Janitorial 52,736 50,000 4450 Equipment 133,771 130,000 4460 Utilities 126,000 125,000 Totals $ 479,215 $ 460,000 (Continued On the Next Page) MOUNT PROSPECT PUBLIC LIBRARY EXHIBIT A 2009 Budget and 2008 TflX Levy 2009 Budget 2008 Tax Levy Fund Amount Request LIBRARY GENERAL FUND (Continued) Library Materials 4610 Adult Print $ 245,500 $ 240,000 4620 Adult A V 102,300 100,000 4630 Youth Print 151,000 145,000 4640 YouthAV 54,000 50,000 4650 Subscriptions 23,100 20,000 4660 Electronic Resources 127,272 125,000 4661 Electronic Media 7,560 5,000 4662 Electronic Services 13,156 10,000 4670 Microform 22,700 20,000 4680 Processing Supplies 46,200 40,270 Totals $ 792,788 $ 755,270 GENERAL FUND TOTALS $ 7,269,692 $ 6,925,270 DEBT SERVICE FUND 3701 Interest Payments $ 734,934 734,934 3711 Principal Payments 895,000 895,000 3800 Fiscal Agent Fees 1,000 DEBT SERVICE FUND TOTALS $ 1,630,934 $ 1,629,934 BUILDING & EQUIPMENT FUND 7705 Building and Grounds $ $ 7730 Library Equipment 217,100 7735 Library Furnishing 37,000 7750 Other Building Projecs 70,900 7760 Trans To Library Operating Fund 125,000 BUILDING FUND TOTALS $ 450,000 $ GIFT FUND 8740 Library Special Projects $ 60,000 $ 8990 Contingencies 40,000 GIFT FUND TOTALS $ 100,000 $ ALL FUNDS - TOTALS $ 9,450,626 $ 8,555,204 TOTAL LIBRARY TAX LEVY 2008 TAX LEVY SUMMARY Levy Total Request 2% Loss Tax Levy $ 6,925,270 $ 138,505 $ 7,063,775 1,629,934 32,599 1,662,533 $ 8,555,204 $ 171,104 $ 8,726,308 Library Fund Levy Library Bonds & Interest Levy ORDINANCE NO. AN ORDINANCE ADOPTING AN ANNUAL BUDGET FOR THE VILLAGE OF MOUNT PROSPECT FOR THE FISCAL YEAR COMMENCING JANUARY 1,2009 AND ENDING DECEMBER 31,2009 IN LIEU OF PASSAGE OF AN APPROPRIATION ORDINANCE PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES the _ day of ,2008 Published in pamphlet fonn by authority of the corporate authorities of the Village of Mount Prospect, Illinois the _ day of , 2008. ORDINANCE NO. AN ORDINANCE ADOPTING AN ANNUAL BUDGET FOR THE VILLAGE OF MOUNT PROSPECT FOR THE FISCAL YEAR COMMENCING JANUARY 1, 2009 AND ENDING DECEMBER 31, 2009 IN LIEU OF PASSAGE OF AN APPROPRIATION ORDINANCE WHEREAS, the President and Board of Trustees of the Village of Mount Prospect in accordance with State Statutes, have provided for the preparation and adoption of an Annual Budget in lieu of passage of an Appropriation Ordinance; and WHEREAS, the tentative Annual Budget for the Village of Mount Prospect for the fiscal year beginning January 1,2009 and ending December 31, 2009, as prepared by the Budget Officer for the Village and submitted to the President and Board of Trustees, was placed on file in the Office of the Village Clerk on October 3,2008 for public inspection, as provided by Statute; and WHEREAS, pursuant to notice duly published on December 4, 2008, a public hearing was held by the President and Board of Trustees on said tentative annual budget on December 16, 2008, as provided by Statute; and WHEREAS, following said public hearing, said tentative Annual Budget was reviewed by the President and Board of Trustees and a copy of said tentative Annual Budget is attached hereto and hereby made a part hereof. NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION ONE: The Annual Budget for the Village of Mount Prospect for the fiscal year beginning January 1,2009 and ending December 31,2009, a copy of which is attached hereto and made a part hereof, is hereby approved and adopted as the Annual Budget for the Village of Mount Prospect for said fiscal year. SECTION TWO: Within thirty (30) days following the adoption of this Ordinance there shall be filed with the County Clerk of Cook County a copy thereof duly certified by the Village Clerk and Estimate of Revenues by source anticipated to be received by the Village in the fiscal year beginning January 1,2009 and ending December 31,2009, duly certified by the Chief Fiscal Office SECTION THREE: This Ordinance shall be in full force and effect from and after its passage, approval and publication in pamphlet form in the manner provided by law. AYES: NAYS: ABSENT: PASSED AND APPROVED this day of ,2008. ATTEST: Irvana K. Wilks, Mayor M. Lisa Angell, Village Clerk VILLAGE OF MOUNT PROSPECT 2009 BUDGET SUMMARY TOTAL VILLAGE BUDGET 2007 Actual 2008 Budget 2008 Es too ate 2009 Budget 2010 Forecast REVENUES AND OTHER SOURCES Property Taxes 13,121,933 13,873,756 14,002,000 13,923,000 14,349,000 Other Taxes 14,843,058 15,725,500 15,534,031 15,803,000 16,139,416 Licenses, Pennits & Fees 3,469,781 3,283,900 3,242,000 3,857,000 3,588,000 Intergovernmental Revenue 17,750,586 17,776,476 18,306,622 18,986,414 18,835,201 Charges for Service 20,885,081 22,086,337 21,174,408 22,435,567 23,244,397 Fines and Forfeits 753,906 598,500 706,028 730,000 730,000 Investrnentlncome 8,751,595 6,702,250 (5, II 0,930) 6,839,000 7,169,000 Reimbursements 269,012 220,000 300,455 401,000 488,000 Other Revenue 5,182,236 5,535,386 5,467,656 5,958,952 6,373,031 Interfund Transfers 221,792 - 721,000 1,139,000 - Other Financing Sources 58,473 2,560,000 61,000 11,484,000 60,000 Village Revenues and Other Sources 85,307,453 88,362,105 74,404,270 10 1,556,933 90,976,045 Mount Prospect Library Revenues 7,703,168 8,645,501 8,645,501 9,450,626 (a) Total Revenues and Other Sources 93,010,621 97,007,606 83,049,771 111,007,559 90,976,045 BUDGET EXPENDITURES Village Operating Budget 53,303,655 58,746,648 59,377,250 58,659,976 61,312,106 Village Capital Budget 5,270,500 13,475,175 11,003,505 22,228,250 10,455,600 Debt Service Budget 4,250,579 4,664,639 4,664,939 1,905,202 1,908,216 Pension Systems Budget 5,233,602 5,409,150 5,760,500 5,991,500 6,166,000 Internal Services Budget (b) 7,177,808 8,329,857 7,524,906 8,344,518 8,785,867 Total Village Expenditures 75,236,144 90,625,469 88,331,100 97,129,446 88,627,789 Mount Prospect Library Budget 7,738,662 8,645,501 8,645,501 9,450,626 (a) Tota] Expenditures (d) 82,974,806 99,270,970 96,976,601 106,580,072 88,627,789 CHANGES IN FUND BALANCES (d) Excess (Deficiency) of Revenues & Other Sources Over Expenditures 10,035,815 (2,263,364 ) (13,926,830) 4,427,487 2,348,256 Fund Balances Start of Budget Year 119,885,445 129,921,260 129,921 ,260 115,994,430 120,421,917 End of Budget Year ] 29,921 ,260 ]27,657,896 115,994,430 120,421,9]7 122,770,173 Less: Pension Fund Balances ( c) (85,993,366) (80,584,216) (78,354,136) (82,355,936) (86,812,736) Availab]e Fund Balances 43,927,894 47,073,680 37,640,294 38,065,98] 35,957,437 (a) Not available as of December 16, 2008. (b) Internal Services Budget includes Vehicle Maintenance Fund and Risk Management Fund. The Equipment Replacement Fund and Computer Replacement Fund are included in the Village Capital Budget. (c) Pension Fund Balances are reserved for pension benefits and not available for appropriation. (d) Does not include the results of operation of the Mount Prospect Library for 2010 Forecast. VILLAGE OF MOUNT PROSPECT 2009 BUDGET SUMMARY REVENUES AND OTHER SOURCES BY REVENUE TYPE 2007 2008 2008 2009 2010 Actual Budget Estimate Budget Forecast PROPERTY TAXES 13,121,933 13,873,756 14,002,000 13,923,000 14,349,000 OTHER TAXES Home Rule Sales Tax 3,962,295 5,120,000 5,013,031 5,000,000 5,060,416 Food & Beverage Tax 797,730 798,500 760,000 760,000 790,000 Special Service Area Taxes 1,504,501 1,508,500 1,514,000 1,509,000 1,509,000 Property Tax Increment 2,617,155 2,480,000 2,403,500 2,640,000 2,760,000 Real Estate Transfer Tax 789,912 785,000 760,000 760,000 800,000 Utility Taxes 4,620,255 4,474,500 4,633,000 4,682,000 4,764,000 Municipal Motor Fuel Tax 354,141 363,500 270,000 270,000 270,000 Other Taxes 197,069 195,500 180,500 182,000 186,000 14,843,058 15,725,500 15,534,031 15,803,000 16,139,416 LICENSES, PERMITS & FEES Vehicle Licenses 1,396,941 1,405,000 1,405,000 1,405,000 1,405,000 Other Licenses 372,191 355,500 366,000 366,000 366,000 Permit Fees 625,815 568,500 486,000 1,035,000 739,000 Franchise Fee 476,540 491,000 504,000 530,000 556,000 Other Fees 598,294 463,900 481,000 521,000 522,000 3,469,781 3,283,900 3,242,000 3,857,000 3,588,000 INTERGOVERNMENTAL REVENUE State Sales Tax 8,811,400 8,670,000 9,211,000 9,319,000 9,575,000 State Income Tax 4,980,054 5,126,000 5,266,000 5,424,000 5,586,000 State Motor Fuel Tax 1,634,252 1,664,000 1,568,000 1,568,000 1,568,000 Other State Taxes 1,146,777 1,192,000 1,204,000 1,201,000 1,227,000 Community Devl Block Grant 361,094 666,976 520,000 745,604 509,081 Other Grants 817,009 457,500 537,622 728,810 370,120 17,750,586 17,776,476 18,306,622 18,986,414 18,835,201 CHARGES FOR SERVICE Water & Sewer Charges 8,848,225 9,780,000 9,876,000 10,236,000 10,611,000 Parking Charges 201,215 190,000 212,000 213,000 213,000 Refuse Disposal Charges 2,148,817 2,278,000 2,165,000 2,230,000 2,310,000 Internal Service Fund Charges 8,055,187 8,107,712 7,359,234 8,166,067 8,494,397 Other Service Charges 1,631,637 1,730,625 1,562,174 1,590,500 1,616,000 20,885,081 22,086,337 21,174,408 22,435,567 23,244,397 FINES AND FORFEITS 753,906 598,500 706,028 730,000 730,000 INVESTMENT INCOME General Fund 479,705 270,000 255,500 402,000 500,000 Pension Funds 7,062,887 5,372,000 (6,050,030) 5,557,000 5,861,000 Other Funds 1,209,003 1,060,250 683,600 880,000 808,000 8,751,595 6,702,250 (5,110,930) 6,839,000 7,169,000 VILLAGE OF MOUNT PROSPECT 2009 BUDGET SUMMARY REVENUES AND OTHER SOURCES BY REVENUE TYPE 2007 2008 2008 2009 2010 Actual Budget Estimate Budget Forecast REIMBURSEMENTS 269,012 220,000 300,455 401,000 488,000 OTHER REVENUE Village Police & Firj: Pension Contributions 2,682,501 2,970,800 2,891,800 3, I 12,800 3,392,800 Developer Donations 14,391 Employee & Retiree Contributions 2,127,363 2,306,086 2,323,425 2,446, I 52 2,594,23 I Other Revenue 357,981 258,500 252,431 400,000 386,000 5, I 82,236 5,535,386 5,467,656 5,958,952 6,373,031 TOTAL VILLAGE REVENUES 85,027,188 85,802,105 73,622,270 88,933,933 90,916,045 INTERFUND TRANSFERS 221,792 721,000 1,139,000 OTHER FINANCING SOURCES Bond Proceeds 2,500,000 11,424,000 Sale of Property 58,473 60,000 61,000 60,000 60,000 58,473 2,560,000 61,000 I 1,484,000 60,000 CHANGES IN FUND BALANCES (b) Total Revenues & Other Sources 93,010,621 97,007,606 83,049,771 1 I 1,007,559 90,976,045 Total Expenditures 84,939,306 99,270,970 96,976,601 106,580,072 88,627,789 Additions to <Use of> Fund Balances 8,071,315 (2,263,364) (13,926,830) 4,427,487 2,348,256 ANALYSIS OF CHANGES IN FUND BALANCES (b) Additions to Pension Fund Balances 5,741,834 (5,363,550) (5,714,000) (5,945,000) (6,119,000) Additions to Other Fund Balances <Use of> Other Fund Balances 2,329,481 3,100,186 (8,212,830) 10,372,487 8,467,256 8,071,315 (2,263,364) (13,926,830) 4,427,487 2,348,256 (a) Figures not available as of December 16, 2008. (b) Does not include the Mount Prospect Library for 2010 Forecast. VILLAGE OF MOUNT PROSPECT 2009 BUDGET SUMMARY BUDGET EXPENDITURES 2007 2008 2008 2009 2010 Actual Budget Estimate Budget Forecast VILLAGE OPERATING BUDGET PUBLIC REPRESENT A nON 123,985 131,176 179,315 137,304 137,599 VILLAGE ADMINISTRA nON ViI\age Manager's Office 2,442,227 2,674,444 2,723,367 2,749,216 2,858,352 Television Services Division 164,810 183,164 189,557 191,413 197,551 Village Clerk's Office 196,055 209,499 204,612 212,076 218,774 Finance Department 1,732,616 1,652,794 1,624,339 1,594,795 1,625,945 Totals 4,535,708 4,719,901 4,741,875 4,747,500 4,900,622 COMMUNITY DEVELOPMENT Community Development 2,011,852 2,436,850 2,396,143 2,369,720 2,337,234 Community Development/CDBG 575,176 771,976 551,891 785,604 549,081 Totals 2,587,028 3,208,826 2,948,034 3,155,324 2,886,315 HUMAN SERVICES DEPARTMENT 752,837 789,947 835,773 1,200,391 1,163,427 PUBLIC SAFETY AND PROTECTION Police Department 13,372,899 14,151,913 13,893,816 14,413,022 14,967,506 Fire Department 10,559,619 10,891,123 10,824,207 11,418,531 11,858,597 Totals 23,932,518 25,043,036 24,718,023 25,831,553 26,826,103 PUBLIC WORKS DEPARTMENT Administration 1,256,587 1,252,565 1,224,643 1,390,732 1,467,456 Streets/BldgslParking 3,959,021 2,863,090 3,346,221 3,029,108 3,159,178 Forestry 1,813,546 2,031,911 2,005,315 1,985,371 2,054,826 Engineering 1,212,041 1,351,046 1,327,114 1,523,016 1,641,411 Water/Sewer 8,852,971 12,852,593 12,841,087 11,034,305 12,335,244 Refuse Disposal 3,982,774 4,135,231 4,100,869 4,196,092 4,313,397 Totals 21,076,940 24,486,436 24,845,249 23,158,624 24,971,512 COMMUNITY & CIVIC SERVICES 281,737 367,326 387,981 429,280 426,528 CONTINGENCIES & EQUITY TRANSFERS 12,902 721,000 53,303,655 VILLAGE OF MOUNT PROSPECT 2009 BUDGET SUMMARY BUDGET EXPENDITURES 2007 2008 2008 2009 2010 Actual Budget Es tim ate Budget Forecast VILLAGE CAPITAL BUDGET Village Improvements & Equip 566,127 1,464,575 1,470,200 1,181,750 1,757,500 Community Improvement Projects 90,000 90,000 163,200 471,400 Downtown Redevelopment Constr 695,463 5,394,000 3,217,000 1,921,250 2,736,000 Flood Control Projects 64,979 515,000 597,305 235,000 495,150 Street Improvement Projects 2,887,386 4,315,200 4,198,200 3,871,000 3,173,000 Motor Equipment Replacement 867,481 1,557,900 1,300,800 2,018,900 1,585,800 Computer Replacement 189,064 138,500 130,000 188,150 236,750 Station 14 8,378,000 Emergency Operation Center 2,034,000 Public Works Expansion 2,237,000 Totals 5,270,500 13,475,175 11 ,003,505 22,228,250 10,455,600 DEBT SERVICE BUDGET Debt Service - Property Tax 1,736,469 1,296,859 1,296,859 1,291,848 1,294,860 Debt Service - Tax Increment 1,069,675 1,754,900 1,754,900 Debt Service - Home Rule Sales Tax I 1,430,265 1,612,880 1,613,180 613,354 613,356 Special Service Area Bonds 14,170 Totals 4,250,579 4,664,639 4,664,939 1,905,202 1,908,216 PENSION SYSTEMS BUDGET Miscellaneous Pensions 44,533 45,600 46,500 46,500 47,000 Police Pensions 2,519,3 I 9 2,580,050 2,900,500 2,993,500 3,066,500 Fire Pensions 2,669,750 2,783,500 2,813,500 2,951,500 3,052,500 Totals 5,233,602 5,409,150 5,760,500 5,991,500 6,166,000 VILLAGE INTERNAL SERVICES BUDGET Vehicle Maintenance Services 1,446,570 1,573,128 1,724,955 1,671,682 1,734,898 Risk Management Casualty and Property Insurance 724,849 1,182,700 898,700 967,700 949,200 Medical Insurance 5,006,389 5,574,029 4,901,251 5,705,136 6,101,769 Totals 7,177,808 8,329,857 7,524,906 8,344,518 8,785,867 MOUNT PROSPECT LIBRARY BUDGET 7,738,662 8,645,50 I 8,645,501 9,450,626 (a) (a) Figures not available as of December 16, 2008. (b) Does not include the Mount Prospect Library for 2010 Forecast. VILLAGE OF MOUNT PROSPECT 2009 BUDGET SUMMARY REVENUES AND OTHER SOURCES BY FUND 2007 Actual 2008 Budget 2008 Estimate 2009 Budget 2010 Forecast GENERAL FUND 39,942,025 39,377,831 40,346,021 41,635,000 42,392,500 SPECIAL REVENUE FUNDS Refuse Disposal Fund 4,166,124 4,438,000 4,286,000 4,216,000 4,306,000 Motor Fuel Tax Fund 1,705,334 1,685,000 1,646,455 1 ,812,000 1,749,000 Law Enforcement Block Grant 612 1,000 Community Dev. Block Gmt 575,176 746,976 560,000 785,604 549,081 Asset Seizure Fund 16,133 3,000 3,087 12,000 13,000 DEA Shared Funds Fund 1,486 2,500 28,941 2,000 2,000 DUl Fine Fund 21,382 21,250 16,000 21,000 21,000 Foreign Fire Tax Board Fund 38,106 42,500 41,000 41,000 41,000 6,524,353 6,940,226 6,581,483 6,889,604 6,681,081 DEBT SERVICES FUNDS G.O. Bonds - Property Taxes 1,341,130 1,324,500 1,336,100 1,323,000 1,329,000 G.O. Bonds - Tax Increment 1,167,799 1,208,500 1,153,500 G.O. Bonds - Home Rule Sales Tax 1 1,355,887 1,285,000 1,269,031 1,250,000 898,416 Special Service Area Bonds 795 500 3,865,611 3,818,000 3,759,131 2,573,000 2,227,416 CAPITAL PROJECTS FUNDS Capital Improvement Fund 52,244 1,438,800 1,916,250 1,374,810 1,324,120 Series 2009 Const Fund 12,784,000 Downtown Redevlpmnt Const 1,564,428 3,921,500 1,305,000 2,675,000 2,784,000 Street Improv Const Fund 1,753,704 1,693,500 1,560,414 1,530,000 1,540,000 Flood Control Const Fund 32,430 10,000 95,000 108,500 474,500 3,402,806 7,063,800 4,876,664 18,472,310 6,122,620 ENTERPRISE FUNDS Water And Sewer Fund Village Parking System Fund Parking System Revenue Fund 10,661,260 111,957 101,800 10,875,017 11,576,500 144,150 156,000 11,876,650 11,588,342 163,000 161,000 11,912,342 11,983,000 161,000 161,000 12,305,000 12,408,000 161,000 161,000 12,730,000 INTERNAL SERVICE FUNDS Vehicle Maintenance Fund 1,579,764 1,568,128 1,558,128 1,671,682 1,734,898 Vehicle Replacement Fund 1,396,167 1,212,700 1,117,700 1,159,700 1,219,700 Computer Replacement Fund 197,455 196,699 187,699 220,281 229,446 Risk Management Fund 6,593,352 6,748,271 5,990,332 6,683,556 7,062,584 9,766,738 9,725,798 8,853,859 9,735,219 10,246,628 VILLAGE OF MOUNT PROSPECT 2009 BUDGET SUMMARY REVENUES AND OTHER SOURCES BY FUND 2007 2008 2008 2009 2010 Actual Budget Estimate Budget Forecast FIDUCIARY FUNDS Police Pension Fund 5,397,857 4,783,500 (902,500) 4,966,500 5,278,500 Fire Pension Fund 5,533,046 4,776,300 (1,022,730) 4,980,300 5,297,300 10,930,903 9,559,800 (1,925,230) 9,946,800 10,575,800 MOUNT PROSPECT LIBRARY FUND 7,703,168 8,645,501 8,645,501 9,450,626 (a) (a) Figures not available as of December 16,2008. (b) Does not include the Mount Prospect Library for 2010 Forecast. VILLAGE OF MOUNT PROSPECT 2009 BUDGET SUMMARY EXPENDITURES BY FUND 2007 2008 2008 2009 2010 Actual Budget Estimate Budget Forecast GENERAL FUND 38,930,210 40,179,521 40,891,260 41,635,000 43,021,135 SPECIAL REVENUE FUNDS Refuse Disposal Fund 3,982,774 4,135,231 4,100,869 4,196,092 4,313,397 Motor Fuel Tax Fund 1,905,490 1,837,002 1,947,002 2,066,302 2,262,391 Local Law Enforcement Block Grant 775 1,000 Community Development Block Grant 575,176 77 I ,976 551,891 785,604 549,081 Asset Seizure Fund 13,582 1,000 17,000 2,000 2,000 DEA Shared Funds Fund 13,302 1,000 11,338 1,000 1,000 DUI Fine Fund 26,912 1,500 28,000 1,500 1,500 Foreign Fire Tax Board Fund 9,767 10,500 30,500 15,500 15,500 Totals 6,527,778 6,759,209 6,686,600 7,067,998 7,144,869 DEBT SERVICE FUNDS G.O. Bonds - Property Taxes 1,736,469 1,296,859 1,296,859 1,291,848 1,294,860 G.O. Bonds - Tax Increment 1,069,675 1,754,900 1,754,900 G.O. Bonds - Home Rule Sales Tax 1 1,430,265 1,6 I 2,880 1,613,180 613,354 613,356 Special Service Area Bonds 14,170 Totals 4,250,579 4,664,639 4,664,939 1,905,202 1,908,216 CAPITAL PROJECTS FUNDS Capital Improvement Fund 566,127 1,654,575 1,560,200 1,209,950 2,228,900 Series 2009 Const Fund 12,784,000 Downtown Redevelop Const Fund 696,363 5,394,950 3,2 I 7,950 1,922,250 2,737,000 Street Improvement Const Fund 1,652,866 2,939,500 2,922,500 2,561,000 1,743,000 Flood Control Const Fund 64,979 515,000 597,305 235,000 495,150 Totals 2,980,335 10,504,025 8,297,955 18,712,200 7,204,050 ENTERPRISE FUNDS Water and Sewer Fund Village Parking System Revenue Fund Parking System Revenue Fund Totals 8,852,971 91,634 167,800 9,112,405 12,852,593 122,269 142,164 13,117,026 12,841,087 123,776 144,277 13,109,140 11,034,305 123,654 143,019 11,300,978 12,335,244 127,471 147,387 12,610,102 INTERNAL SERVICE FUNDS Vehicle Maintenance Fund 1,446,570 1,573, I 28 1,724,955 1,671 ,682 1,734,898 Vehicle Replacement Fund 867,481 1,557,900 1,300,800 2,018,900 1,585,800 Computer Replacement 189,064 138,500 130,000 188,150 236,750 Risk Management Fund 5,742,653 6,767,971 5,811,451 6,684,336 7,062,969 Totals 8,245,768 10,037,499 8,967,206 10,563,068 10,620,417 VILLAGE OF MOUNT PROSPECT 2009 BUDGET SUMMARY EXPENDITURES BY FUND 2007 Actua I 2008 Budget 2008 Estimate 2009 Budget 2010 Forecast FIDUCIARY FUNDS Police Pension Fund Fire Pension Fund Totals 2,519,319 2,669,750 5,189,069 2,580,050 2,783,500 5,363,550 2,900,500 2,813,500 5,714,000 2,993,500 2,951,500 5,945,000 3,066,500 3,052,500 6,119,000 MOUNT PROSPECT LIBRARY BUDGET 7,738,662 8,645,501 8,645,501 9,450,626 (a) (a) Figures not available as of December 16,2008. (b) Does not include the Mount Prospect Library for 2010 Forecast. VILLAGE OF MOUNT PROSPECT 2009 BUDGET SUMMARY AVAILABLE FUND BALANCES 12-31-2009 Estimated Balance 1-1-09 2009 Budget Revenues 2009 Bud get Expenditures Estimated Balance 12-31-09 GENERAL FUND 12,269,674 41,635,000 41,635,000 12,269,674 SPECIAL REVENUE FUNDS Refuse Disposal Fund 2,349,257 4,216,000 4,196,092 2,369,165 Motor Fuel Tax Fund 36,600 1,812,000 2,066,302 (217,702) Local Law Enf Block Grant Community Development Block Gmt 8,109 785,604 785,604 8,109 Asset Seizure Fund 63,407 12,000 2,000 73,407 DEA Shared Funds Fund 55,280 2,000 1,000 56,280 DUI Fine Fund 18,245 21,000 1,500 37,745 Foreign Fire Tax Board Fund 91,372 41,000 15,500 116,872 TOTAL 2,622,270 6,889,604 7,067,998 2,443,876 DEBT SERVICES FUNDS G.O. Bonds - Property Taxes 167,473 1,323,000 1,291,848 198,625 G.O. Bonds - Tax Increment (71,406) (71,406) G.O. Bonds - Home Rule Sales Tax I (907,977) 1,250,000 613,354 (271,331) Special Service Area Bonds 3,955 3,955 TOTAL (807,955) 2,573,000 1,905,202 (140,157) CAPITAL PROJECTS FUNDS Capital Improvement Fund 767,855 1,374,810 1,209,950 932,715 Series 2009 Const Fund 12,784,000 12,784,000 Downtown Redevelop Const Fund 402,184 2,675,000 1,922,250 1,154,934 Street Improvement Const Fund 167,659 1,530,000 2,561,000 (863,341 ) Flood Control Const Fund 91,544 108,500 235,000 (34,956) TOTAL 1,429,242 18,472,310 18,712,200 1,189,352 ENTERPRISE FUNDS Water and Sewer Fund (a) 3,089,707 11,983,000 11,034,305 4,038,402 Village Parking System Fund (a) 143,367 161,000 123,654 180,713 Parking System Revenue Fund (a) 16,723 161,000 143,019 34,704 TOTAL 3,249,797 12,305,000 11,300,978 4,253,819 (a) Estimated balances reflect cash and investment balance, not fund equity. VILLAGE OF MOUNT PROSPECT 2009 BUDGET SUMMARY AVAILABLE FUND BALANCES 12-31-2009 Estimated 2009 2009 Estimated Balance Budget Budget Balance 1-1-09 Revenues Expenditures 12-31-09 INTERNAL SERVICE FUNDS (b) Vehicle Maintenance Fund 601,748 1,671,682 1,671,682 601,748 Vehicle Replacement Fund 10,430,794 1,159,700 2,018,900 9,571,594 Computer Replacement Fund 767,775 220,281 188,150 799,906 Risk Management Fund 2,746,104 6,683,556 6,684,336 2,745,324 TOTAL 14,546,421 9,735,219 10,563,068 13,718,572 PENSION FUNDS (c) Police Pension Fund 39,160,185 4,966,500 2,993,500 41,133,185 Fire Pension Fund 39,193,951 4,980,300 2,951,500 41,222,751 TOTAL 78,354,136 9,946,800 5,945,000 82,355,936 Totals - Village Funds 111,663,585 101,556,933 97,129,446 116,091,072 . Less: Pension Funds (c) (78,3 54, 136) (9,946,800) (5,945,000) (82,355,936) (b) Estimated balances for Internal Service Funds reflect unrestricted net assets only. (c) Pension Funds are restricted for future pension benefits and do not constitute "Available Fund Balances." RESOLUTION NO. A RESOLUTION APPOINTING A DIRECTOR AND ALTERNATE DIRECTORS TO THE SOLID WASTE AGENCY OF NORTHERN COOK COUNTY BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS ACTING IN THE EXERCISE OF THEIR HOME RULE POWERS: SECTION ONE: The Village of Mount Prospect is a member of the Solid Waste Agency of Northern Cook County (the "Agency") and, pursuant to the Agency Agreement establishing the Agency, is entitled to appoint a Director and one or more Alternate Directors to the Board of Directors of the Agency. SECTION TWO: The President and Board of Trustees of the Village appoint Trustee Paul Wm. Hoefert as the Village's Director on the Board of Directors of the Agency, and Trustee Michael A. ladel and Mayor Irvana K. Wilks as Alternate Directors, in each case for a term expiring May 2009, or until a successor is appointed. SECTION THREE: This Resolution shall be in full force and effect upon its passage and approval in the manner provided by law. AYES: NAYS: ABSENT: PASSED and APPROVED this 2nd day of December, 2008. Irvana K. Wilks Mayor ATTEST: M. Lisa Angell Village Clerk H\CLKO\WIN\RESOLUTION\SWANCC reps dec2008.doc /I INTEROFFICE MEMORANDUM Village of Mount Prospect Mount Prospect, Illinois FROM: MICHAEL E. JANONIS, VILLAGE MANAGER DIRECTOR OF FINANCE "8'0. W~O , -z-I'Z.IOS TO: DATE: NOVEMBER 25, 2008 SUBJECT: IDENTITY THEFT PROGRAM AND RED FLAG RULES RESOLUTI PURPOSE: To present for the Board's consideration a resolution establishing policies and procedures to prevent and mitigate the impact of identity theft. BACKGROUND: The Fair and Accurate Credit Transactions (FACT) Act of 2003 requires that creditors implement policies and procedures to detect, prevent, and mitigate the impact of identity theft. The Village is considered a creditor under the law as water, sewer and refuse utility services are provided by the Village before a customer pays for these items. As a result, the Finance Department was required to evaluate utility billing operations and develop procedures and a reasonable system of safeguards that complies with the new law. The proposed policy addresses all applicable requirements of the Fair and Accurate Credit Transactions Act and the associated "Red Flag" rules promulgated by the Federal Trade Commission requiring certain municipal utilities and departments to enact certain policies and procedures regarding Identity Theft Red Flags and Prevention. DISCUSSION: Finance staff met with Corporation Counsel George Wagner, to discuss the requirements of FACT and request assistance in drafting an identity theft program and prevention policy. A copy of the memorandum from Mr. Wagner outlining the proposed program is attached. Staff also reviewed the law's requirements against internal procedures to determine the necessary changes for compliance. The safeguards included in the program are designed to provide reasonable assurance in preventing an individual from establishing, accessing, or modifying a Village account for the purpose of perpetrating a fraudulent identity. Under the new law, the Village is required to have reasonable assurance that the per~on requesting service or accessing the account is authorized to do so. Included with the memorandum from Mr. Wagner, is the proposed Identity Theft Program and Prevention Policy, Identity Theft Resolution and Required Customer Information Checklist to be used by Customer Service staff in establishing and maintaining utility accounts. :c Identity Theft and Red Flag Rules Resolution November 25, 2008 Page 2 Training of Customer Service staff on the new Checklist will begin after approval by the Board of the identity theft program. As soon as all the procedures are in place we will roll out the new program to the public. The Village is not proposing to capture confidential personal information, such as social security numbers of customers. Periodical review of the policy will occur to maintain the soundness of the program. RECOMMENDATION: It is recommended the Village Board approve the attached resolution and the identity theft program and prevention policy with an effective date of no later than May 1, 2009. ~d7- GC- DAVID O. ERB DIRECTOR OF FINANCE DOE/ Copy: Finance Commission Audit Committee Department Directors H:\CUST\Red Flags\Red Flag Memo to Board.doc 20 N. Wacker Orive. Ste ISSO Chicago. Illinois SOSOS-2903 T 312 984 S40D F 312 984 S444 15010 S. Ravinia Avenue. Ste 10 Drland Park. Illinois S04S2-5353 T 708 349 3888 F 708 349 150S KLEIN. THORPE & JENKINS. LTD. Attorneys at Law www.ktjlaw.com MEMORANDUM TD: FROM: DATE: RE: Dave Erb. Finance Director. Village of Mount Prospect George A. Wagner October 31. 20D8 Identity Theft Program and Prevention Policy Via e-mail only Enclosed please find draft versions of the following documents for your review and for approval by the President and Board of Trustees: I. A RESOlUTION APPROVING AN IDENTITY THEFT PROGRAM AND PREVENTION POLICY 2. The Village of Mount Prospect Identity Theft Program and Prevention Policy (Exhibit "I" to the above Resolution). As know. the Village is required to comply with the Identity Theft Red Flag Rule (the "Rule"). which was issued by the Federal Trade Commission (FTC) effective January I. 2008. and adopt and implement an "Identity Theft Program and Prevention Policy". The Rule initially required that the theft prevention programs be in place by November I. 2008. but that requirement has since been suspended until May I. 2008. to give creditors and financial institutions additional time in which to develop and implement identify those programs. The Fair and Accurate Credit Transactions Act of 2003. an amendment to the Fair Credit Reporting Act. requires compliance with the Rule in order that covered entities implement identity theft protections. Based on our review of the FTC regulations and related information. the Village is covered by the Rule because it operates certain enterprise funds (e.g.. water fund) and. therefore. should comply with the Rule. The Rule is intended to minimize incidents of identity theft and fraud in the opening and maintenance of covered accounts by financial institutions and creditors. as well as addressing issues of address discrepancies by users of consumer reports. "Covered Accounts" and "Creditor" are defined broadly in the Rule. and in both cases include utility accounts and utility companies. The FTC. the regulatory agency that is overseeing the implementation of this Rule. has confirmed that municipalities that defer payments by their utility customers (Le.. water. sewer. etc.) are considered Creditors under the Rule. and that the only way to escape coverage would be to bill the customer prior to providing the monthly utility service. Therefore. because of the Village's water and sewer service operations. and its current water and sewer billing system (billing based upon actual water usage post-delivery). it is considered a Creditor and covered by the Rule. The premise of the Rule is for covered Creditors to implement a written Identity Theft Program and Prevention Policy (the "Policy") to identify a pattern. practice or specific activity. Le. "red flags." that indicate the possible existence of identity theft in connection with the opening of a new account or the maintenance of an existing account. Such a Policy must include reasonable policies and procedures to detect. prevent and mitigate identity theft. such as the following: . Identify relevant red flags and incorporate them into the Policy o Alerts. notifications. or other warnings received from consumer reporting agencies or service providers o Presentation of suspicious documents o Presentation of suspicious personal identifying information o Unusual use of. or other suspicious activity related to a covered account o Notice from customers. victims of identify theft. or law enforcement authorities · Detect red flags that are part of the Policy o Verify identity o Authenticate customers o Monitor transactions o Verify validity of address changes · Respond appropriately to any red flags that are detected o Monitor accounts o Contact customer o Change passwords o Close and reopen account o Refuse to open account o Don't collect on or sell account o Notify law enforcement o No response · Ensure the Policy is updated periodically to address changing risks o Experience with identity theft o Changes in methods of identity theft o Changes in methods to detect. prevent and mitigate identity theft o Changes in types of accounts offered o Changes in business arrangements The Rule requires the Policy to be approved and implemented by the governing board with the operational responsibilities handled by senior management. In addition. annual reporting on significant events and recommendations for Policy changes is required. All key personnel (those that will deal with any customer accounts. such as the Finance Department) must be trained as well. In addition to the Policy requirements noted above, the Rule also requires a user of consumer reports to take action when it receives a notice of address discrepancy from a nationwide consumer reporting agency (this occurs when the address provided by the user conflicts with the address in the reporting agency's files). The Rule requires the user to have reasonable polices and procedures to establish a reasonable belief that the consumer report relates to the consumer about whom the report was requested (such as verifying the information in the consumer report with the consumer). as well as reasonable policies and procedures to furnish a confirmed address for the consumer to the reporting agency. In summary. under the Rule. the Village is required to develop and implement a written Identity Theft Program and Prevention Policy in accordance with the guidance noted above. Since the Village may also use consumer reports, such a Policy needs to include the concerns relating to address discrepancies noted in the preceding paragraph. Such a Policy must be approved by the Board of Trustees and reviewed annually. The enclosed Identity Theft Program and Prevention Policy has been drafted to comply with the current version of the Rule. If you have any questions. please contact me. Enclosure cc: Michael Janonis. Village Manager (w/enclosure via e-mail) Everette M. Hill. Jr.. Village Attorney (w/enclosure) iManage:222636_1 2 RESOLUTION NO. A RESOLUTION APPROVING AN IDENTITY THEFT PROGRAM AND PREVENTION POLICY WHEREAS, the Fair and Accurate Credit Transactions Act of 2003, an amendment to the Fair Credit Reporting Act, requires that rules regarding identity theft protection be promulgated by covered entities; and WHEREAS, those rules, which were intended to become effective November 1, 2008, and have been suspended until May 1, 2009, require municipal utilities and other departments to adopt and implement an identity theft program and prevention policy; and WHEREAS, the Corporate Authorities of the Village of Mount Prospect have considered an Identity Theft Program and Prevention Policy, a copy of which is attached hereto and made a part hereof as Exhibit "1" (the "Policy"), and have determined that said Policy is in the best interest of the Village of Mount Prospect and its residents and complies with the aforementioned federal rules; NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS, AS FOLLOWS: SECTION 1: The recitals as set forth above are incorporated herein by reference and made a part hereof as material and operative provisions of this Resolution. SECTION 2: The Policy attached hereto as Exhibit "1" and made part hereof is hereby adopted and approved. SECTION 3: The Village of Mount Prospect and all its officers and employees are subject to the provisions of the attached Policy and shall follow and abide by the provisions thereof. SECTION 4: The Village Clerk shall cause a copy of this Resolution and the attached Policy to be delivered to each officer and employee of the Village who is subject to the provisions of the Policy. SECTION 5: This Resolution shall be in full force and effect from and after its adoption and approval as provided by law. ADOPTED this _ day of follows: , 2008, pursuant to a roll call vote as AYES: NAYS: ABSENT: Irvana K. Wilks, Mayor ATTEST: M. Lisa Angell, Village Clerk Exhibit "1" VILLAGE OF MOUNT PROSPECT IDENTITY THEFT PROGRAM AND PREVENTION POLICY (see attached) VILLAGE OF MOUNT PROSPECT IDENTITY THEFT PROGRAM AND PREVENTION POLICY The following Identity Theft Program and Prevention Policy (the "Policy") is to implement the requirements of the Fair and Accurate Credit Transactions Act of 2003 and the associated final "Red Flag" rules promulgated by the Federal Trade Commission requiring certain municipal utilities and departments to enact certain policies and procedures regarding Identity Theft Red Flags and Prevention. Section 1: Background The risk to the Village. its employees and customers from data loss and identity theft is of significant concern to the Village and can be reduced only through the combined efforts of every employee and contractor. Section 2: Purpose A. The Village adopts this Policy to help protect employees. customers, contractors and the Village from damages related to the loss or misuse of sensitive information. This Policy will: 1. Define sensitive information; and 2. Place the Village in compliance with state and federal law regarding identity theft protection. B. This Policy enables the Village to protect existing customers, reducing risk from identity fraud, and minimize potential damage to the Village from fraudulent new accounts. The Policy will help the Village: 1. Identify risks that signify potentially fraudulent activity within new or existing covered accounts; 2. Detect risks when they occur in covered accounts; 3. Respond to risks to determine if fraudulent activity has occurred and act if fraud has been attempted or committed; and 4. Update the Policy periodically, including reviewing the accounts that are covered and the identified risks that are part of the Policy. Section 3: Scope This Policy applies to employees, contractors, consultants, temporary workers and other workers at the Village, including all personnel affiliated with third parties. Section 4: Sensitive Information Policy A. Definition of Sensitive Information: Sensitive Information includes the following items whether stored in electronic or printed format which could be used on its own or in conjunction with other information to commit identity theft: 1. Credit card information, including any of the following: a. Credit card number (in part or whole) b. Credit card expiration date c. Cardholder name d. Cardholder address Section 4: Sensitive Information Policy (cant.) 2. Other personal information belonging to any customer, employee or contractor, examples of which include: a. Names b. Address c. Phone numbers d. Date of birth e. Customer account number B. Village personnel are encouraged to use common sense judgment in securing Sensitive Information to the proper extent. Furthermore, this section should be read in conjunction with the Illinois Local Records Act and the Village's local records policy. If an employee is uncertain of the sensitivity of a particular piece of information, he/she should contact his/her supervisor. Section 5: Identity Theft Prevention Program A. Definition of a Covered Account: Any customer account that involves or is designed to permit multiple payments or transactions. Every new and existing account that meets the following criteria is a Covered Account and is covered by this Policy: 1. Business, personal and household accounts for which there is a reasonably foreseeable risk of identity theft; or 2. Business, personal and household accounts for which there is a reasonably foreseeable risk to the safety or soundness of the Village from identity theft, including financial, operational, compliance, reputation, or litigation risks. B. Definition of a Red Flag: Any potential indicators of fraud. Any time a Red Flag, or a situation closely resembling a Red Flag, is apparent, it should be investigated for verification. Examples of Red Flags include: 1. Alerts, notifications or warnings from a consumer reporting agency or service provider. 2. Suspicious documents, such as: a. Documents provided for identification that appear to have been altered or forged. b. The photograph or physical description on the identification is not consistent with the appearance of the applicant or customer presenting the identification. c. Other information on the identification is not consistent with information provided by the person opening a new covered account or customer presenting the identification. d. Other information on the identification is not consistent with readily accessible information that is on file with the Village. e. An application appears to have been altered or forged, or gives the appearance of having been destroyed and reassembled. 2 Section 5: Identity Theft Prevention Program (cont.) 3. Suspicious personal identifying information, such as: a. Personal identifying information provided is associated with known fraudulent activity as indicated by internal or third-party sources used by the Village. For example, the address on an application is the same as the address provided on a fraudulent application. b. Personal identifying information provided is of a type commonly associated with fraudulent activity as indicated by internal or third-party sources used by the Village. For example: (i) The address on an application is fictitious, a mail drop, or a prison. (ii) The phone number is invalid or is associated with a pager or answering service. c. The address or telephone number provided is the same as or similar to the address or telephone number submitted by an unusually large number of other customers or other persons opening accounts. d. The customer or the person opening the covered account fails to provide all required personal identifying information on an application or in response to notification that the application is incomplete. e. Personal identifying information provided is not consistent with personal identifying information that is on file with the Village. 4. Unusual use of, or suspicious activity related to, a Covered Account, such as: a. A new utility account is used in a manner commonly associated with known patterns of fraud patterns. For example, the customer fails to make the first payment or makes an initial payment but no subsequent payments. b. A covered account is used in a manner that is not consistent with established patterns of activity on the account. There is, for example: (i) Nonpayment when there is no history of late or missed payments. (ii) A material change in purchasing or usage patterns. c. Mail sent to the customer is returned repeatedly as undeliverable although transactions continue to be conducted in connection with the customer's covered account. d. The Village is notified that the customer is not receiving paper account statements. e. The Village is notified of unauthorized charges or transactions in connection with a customer's covered account. f. The Village receives notice from customers, victims of identity theft, law enforcement authorities, or other persons regarding possible identity theft in connection with covered accounts held by the Village. g. The Village is notified by a customer, a victim of identity theft, a law enforcement authority, or any other person that it has opened a fraudulent account for a person engaged in identity theft. Section 6: Responding to Red Flags A. Once potentially fraudulent activity is detected, an employee must act quickly as a rapid appropriate response can protect customers and the Village from potential damages and loss. B. Once potentially fraudulent activity is detected, the employee should gather all related documentation and write a description of the situation. This information should be presented to the designated authority for review, assessment and determination. 3 Section 6: Responding to Red Flags (cont.) C. The designated authority will complete additional investigation and authentication to determine whether the attempted transaction was fraudulent or authentic. D. If a transaction is determined to be fraudulent or an attempt at fraud, appropriate actions should be promptly taken including: 1. Continue to monitor an account for evidence of Identity Theft 2. Contact the customer 3. Not open a new account 4. Close an existing account 5. Reopen an account with a new number 6. Notify and cooperate with appropriate law enforcement 7. Determine that no response is warranted under the particular circumstances Section 7: Periodic Updates to Policy A: This Police will be reviewed and updated to reflect changes in risk to customers and the soundness of the Village from identity theft. If warranted, the Finance Department will update the Policy or present the Village Board and Village Manager's Office with recommended changes and the Village Board or Village Manager will make a determination of whether to accept, modify or reject those changes to the Program. B. Periodic reviews will include an assessment of which accounts are covered by the Policy and whether there are any new accounts. C. As part of the review, Red Flags may be revised, replaced or eliminated. Defining new Red Flags may also be appropriate. D. Actions to take in the event that fraudulent activity is discovered may also require revision to reduce potential damages or losses to the Village and its customers. Section 8: Policy Administration A. Involvement of Management 1 . This Policy shall be a separate program and operation and shall not be operated as an extension to existing fraud prevention programs, and its importance warrants the highest level of attention. 2. Implementation of this Policy is the responsibility of the corporate authorities of the Village and approval of the initial Policy is to be appropriately documented and maintained. 3. Operational responsibility for the Policy is delegated to the Finance Director. B. Staff Training 1. Staff training shall be conducted for all employees for whom it is reasonably foreseeable that they may come into contact with accounts or personally identifiable information that may constitute a risk to the Village or its customers. 2. The Finance Director is responsible for ensuring identity theft training for all requisite employees. 3. To ensure maximum effectiveness, employees may continue to receive additional training as changes to the Policy are made. 4 Section 8: Policy Administration (cont.) C. Oversight of Service Provider Arrangements 1 . It is the responsibility of the Village to ensure that the activities of all service providers are conducted in accordance with reasonable policies and procedures designed to detect, prevent, and mitigate the risk of identity theft. 2. The Village will require, by contract, that service providers have such policies and procedures in place. 3. The Village will require, by contract, that service providers review the Village's Program and report any Red Flags to the Program Administrator. 4. Any specific requirements should be specifically addressed in the appropriate contract arrangements. 5 Village of Mount Prospect Red Flag Required Customer Information Checklist Procedure for Openino New Account . New Utility Accounts may be opened in the following manners: o In Person Walk-in o Via Telephone . Information and Documentation Required for Walk-in Account Activations: o Driver's license or alternate government issued picture 10 (required) o Completed work order (required); copy of 10 to be attached to work order . Information and Documentation Required for Telephone Account Activations: o Submit via e-mail (scanning), fax, or mail a copy of a driver's license or government issued picture 10 (required) o Completed work order (required); copy of 10 to be attached to work order . Steps to be Taken by Customer Service Representative o Confirm that name on driver's license/alternate government issued identification matches that on new account o Review checklist of Red Flags; ensure no Red Flag issues are present o Make a photocopy of the driver's license or government issued 10 . Steps to be Taken by Customer Service Representative if 10 is Questionable o Tactfully advise applicant of the issue, if appropriate o Do not open account o Escalate to supervisor if situation with customer is unresolved o Management staff may allow a new account to be established based on extenuating circumstances, at their discretion