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HomeMy WebLinkAbout6.1 Monthly Financial Report - December 2024Subject Meeting Fiscal Impact (Y/N) Dollar Amount Budget Source Category Type Information Discussion Item Cover Page Monthly Financial Report - December 2024 March 4, 2025 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD CONSENT AGENDA Action Item Attached is the Monthly Financial Report for December 2024. Alternatives 1. Accept the Monthly Financial Report for December 2024. 2. Action at the discretion of the Village Board. Staff Recommendation Staff recommends accepting the Monthly Financial Report for December 2024. Attachments 1. Monthly Financial Report December 2024 -1 2. 12 December Board Reports for Upload VILLAGE OF MOUNT PROSPECT MONTHLY FINANCIAL REPORT December 31, 2024 Prepared By Amit Thakkar, CPA Director of Finance TO: VILLAGE PRESIDENT, BOARD OF TRUSTEES, AND FINANCE COMMISSION FROM: AMIT THAKKAR, DIRECTOR OF FINANCE DATE: FEBRUARY 11, 2025 SUBJECT: MONTHLY FINANCIAL REPORT FOR THE MONTH OF DECEMBER 2024 In an effort to provide the most transparent and relevant financial information in a timely manner, we are submitting this report herewith. The report contains relevant data and analytical information for the Village's financial affairs. The report is prepared based on the most recent available financial information (internal and external). The report is divided into five sections, including a) Cash and Investments, b) Revenues, c) Expenses, d) Fund Balance Analysis, and e) Other Items that may contain relevant new issues and items representing and impacting the Village's financial interest and well-being. a) Cash and Investments The Village of Mount Prospect maintains a sufficient liquid cash balance at various banking and investment institutions for the smooth operation of the Village's day-to-day activities. The remainder of the cash assets are invested in multiple interest -earning accounts and investment options in accordance with the Village's Investment Policy. As of December 1, 2024, the beginning Cash and Cash Equivalents totaled $98.2 million. During the month, the Village collected cash receipts totaling $8.5 million. The investment income for the month totaled $357,212. The monthly payroll cost was $2.2 million, and accounts payable were paid in the amount of $6.7 million. The inter -fund activity increased the cash position by $2,347, while other disbursements totaled $16,494. During the month under review, investments totaling $2.8 million matured. As of December 31, 2024, the Village's Cash and Cash Equivalents totaled $100.9 million. eZejyi=I:i1►1&IZILII IFAIWAILIUIZILI1121;1:1;1 "1191~`'. Cash and Cash Total Cash and Equivalents Investments Investments Balance at December 1, 2024 $ 98,205,348 $ 32,664,093 $ 130,89,441 Cash ireceipts 8,527,111 - 8,527,111 Investment income 357,212 38,874 396,086 Transfers from investments to cash 2,817,350 (2,817,350) - Transfeirs to investments from cash - - - Interfund activity 2,347 - 2,347 Disbursements: Accounts Ipayable (6,703,335) - (6,703,335) Payroll (2,28,063) - (2,248,063) Other (16,494) - (16,494) Balance at Deemlber 31, 2024 $ 100,941,477 $ 29,885,617 $ 130,827,093 As of December 31, 2024, the Village has $29.9 million invested in long-term investments, including U.S. Treasury, AAA+ rated money-market funds, and FDIC -insured CDs. The Cash, Cash Equivalents, and Investments totaled $130.8 million as of December 31, 2024. 2 The table below summarizes the cash, cash equivalents, and investments by fund type as of December 31, 2024. Fund Details Amount General Fund $ 45,656,738 Special Revenue Funds 28,128,992 Debt Service Funds 1,435,266 Capital Projects Funds 18,454,569 Enterprise Funds 19,498,962 Internal Service Funds 17,652,567 Total Cash and Cash Equivalents $ 130,827,093 In addition to the funds summarized above, the Village of Mount Prospect has $1,191,417 in escrow accounts under the umbrella of Other Trust and Agency Funds. b) Revenues The data below summarizes the revenue recognized by the Village through December 2024. Property Taxes 22,022,359 24,393,144 110.8% 25,928,456, (1,535,312) - 5.9111A Other Taxes 14,6,89,GGG 14,476,,945 98.61% 15,017,323 1 540,3 78,) -3.6% Intergovernmentall Revenue 57,17%236, 54,244,347 94.95/a 5 2,K4,5 34 1,339,813 2.5% Licenses, lPermlits & IFees 2,037,GGG 2,029,156, 99.61% 2,100,734 171,538) -3.4% Charges IFor Services 42,255,770 41,770,274 HAI;% 42,315,803 546,,5 25-1.3% Fines, & IForfelits 470,955 6,04,8,00 128.4% 572,M, 32,781 5.7% Investment IIncome 1,818,245 6,,5 29, 106, 359.1% 5,612,876, 916,,230 16.3% Other 161inancing Sources 21,279,GGG 20,874,842 98.1% 14,3 17,9 14 6,,556,928, 45.8% dither Revenue 2,854,944 4,129,691 144.7% 2,6,27,257 1,5,02,434 5 7. 2/b Relimbursements 337,GGG 921,131 273.3% 783,280 137,851 17.6% Total Revenues 164,943,509 169,973P475 103.0% 162P 181P 1915 7j92P280 4.9% The above amounts do not represent all the revenues to be recognized for the period under review. Certain state taxes, such as sales tax, home rule sales tax, and a few other taxes, will be received by the Village January 2024 and later. Additionally, during December 2024, the Village received the following revenues from the State, which relate to a period prior to December 2024. These amounts are distributed after the State administrative fee deductions of $10,724. State Sales Tax Sep-24 Dec-24 Dec-24 3,055,141 Home Rule Sales Tax Sep-24 Dec-24 Dec-24 646,475 Business District Tax Sep-24 Dec-24 Dec-24 23,043 Auto Rental Tax Sep-24 Dec-24 Dec-24 2,223 Telecom Tax Sep-24 Dec-24 Dec-24 84,324 Total Revenues $ 3�,8111207 The actual revenue recognized by the Village totaled $169.9 million through December 2024, representing 103.0 percent of the annual budget. The overall recognized revenues are trending higher compared to the 3 2024 collection for the same period, except for a few categories as discussed below. Property Taxes: The Village's total levy for the year is $19,469,004. The total property tax budget, including TIF increments, is $22.0 million. The Village collected $24.4 million in property taxes through December 2024. The property taxes are due in two installments, one in March and one in August. This year, the Village received its second installment on time from Cook County Treasurer's Office. Last year, the County significantly delayed the second installment. The collected property taxes include higher -than -expected TIF increments for the Prospect & Main TIF district. Also, the 2023 amount is after all the yearend adjustments including deferred revenue adjustments, while the same is still pending for the year 2024. Overall, reduction in the levy by 4.8 percent is the main reason for a decrease in property taxes. Other Taxes: The category of Other Taxes includes all the taxes enacted per local ordinances, including Home Rule Sales Tax, Hotel/Motel, Food and Beverage, Municipal Motor Fuel Tax, Utility Taxes, etc. As the State collects some of these taxes, there is a three-month lag between the actual sales and the tax remittance. In addition, all the local economic activities for December are reported in January or later. The YTD tax collection under this category totals $14.5 million. Currently, the unadjusted amount shows a decrease of $540,378 or 3.6 percent compared to last year's collection. With yearend adjustments and accruals, the amount to be reported under this category is expected to surpass last year's collection by 6% or more. The Village collected $1,736,309 in Food & Beverage Taxes and $1,016,083 in Real Estate Transfer Taxes through December 2024. The same was $1,605,888 and $956,954 last year, respectively. The Food & Beverage Tax reflects an increase of 8.1 percent over last year's collection, while the Real Estate Transfer Tax reflects an increase of 6.2 percent over last year's collection. Intergovernmental Revenue: This category includes all the State shared taxes, including State Sales Tax, Income Tax, Use Tax, Motor Fuel Tax, and Grants. The Village is vigilantly tracking all intergovernmental revenues. As most of these taxes are collected by the State, there is a three- month lag between the actual sales and the tax remittance. The Village recognized $54.2 million in intergovernmental revenues through December 2024. The amount does not represent the total revenues to be recognized during the month, as significant revenues will be reported and collected after December 2024. The overall recognized revenues are trending higher by $1.3 million, or 2.5 percent, compared to the amount recognized last year for the same period. The 2023 amount reflects the final audited amount while 2024 amount is unadjusted and subject to accruals and yearend adjustments. The State income tax revenue is recognized on a cash basis in the month of receipt and represents a 6.3 percent growth compared to the 2023 collections. The sales tax amount for 2024 represents sales tax from January to November 2024. The December sales tax revenue and data will be available in March 2025 and the yearend adjustments will be performed once received. State SalIesTax 34,,224,,947 34,,8,8,2,,458, 657,,511j -1.9% State (Income Tax 9,654,627 9,080,365 574,262 6.3%" State Motor FuelI Tax 2 527,,0S0 2,,453,,817 73,,264 3.10 State Use Tax 2,040,366, 2,,250,,11.1. 2 ,746), -9.3" Video GarniingTax 345,021 293,51.3 51.,508, 1.7.5 Cannabis Education (Fund 91.,597 86,048, 5,549 6.4% Municipal Cannabis Tax 82,678, 80,937 1.,,741 2.2 % Licenses & Permits: The Village collected $2.0 million in license and permit fees through December 2024. This amount is trending lower by $71,538, or 3.4 percent, compared to last year's 12 collection. The overall collection represents S8.8percent nfthe annual budget for the category. Liquor Licenses 194,500 182,519 11,98,1 0.6% Business Licenses 102203 1,52,8,24 9,439 0.2% Comt�ract�orLUcemses 135,2,00 115,400 15,D00 13.2% 8amnUmgTermnUmaU�Fees 112°000 98"O00 14,000 14.3% Alarm Licenses 42°438, 44,2,00 (1,709) -4.0% Elevator Licenses 20,555 20,410 145 0.5% Utility Permit �Fee 4,2,00 0,400 (2°2O0) 34.4% Gamine AooUUcatUoms 600 9100 �3001 33.3% Building Permit 1"008"OO8 1,021,541 (12,532) -1.2% LamdUmrd/RemtaUPenmit 322,301 312j,03 i0j9s, 3.3% Village Impact �Fees 2,0,130 130,100 (110,030) -85.2% Charges for Services: The VU|ogo md|enb*d $41.8 million in charges for services through December 2024. The amount represents 98.9 percent of the annual budget for the oab*gory, and it is trending lower by$54G.520. or 1.3 poroant, compared to last year's collection. The expected collection for the category was initially higher. Howewar, due to timing issues with the ambulance billing fees, especially for the GEMT (Ground Emergency Medical Transport), the amount reported is significantly lower compared to the 2023 collection. This timing issue is expected to be resolved inthe near future. Investment Income: The Village earned $6J5 million in investment income through Oaoambor 2024.which represents 350.1 percent ufthe oategor/aannual budget. The recognized revenue io trending higher by $916,230 or 16.3 percent, compared to last year's amount. Other Categories: All other revenue categories have collectively generated $26.5 million through December 2024. The amount mainly includes $604,800 in fines and forfeitures, $4.1 million in other navenuea.$y2l.131 in neimburaemento, and$20.A million inOther Finance Sources (intar-fund transfers and other misc. items). The Village executed various budgeted inter -fund transfers through December 2U24aabelow. GeneraUiFumd lPemsliom8tabiUUzatliomIFumd 2J000J000 GemeraUiFumd Economic Emergency IFumd G,580,800 GeneraUIFumd Debt SeryUceIFumd 2,140,000 GeneraUiFumd Debt SerxUceIFumd 31°800 GemeraUIFwmd CapUtaUUmnproyemnemt IFwmd 2°8168800 GeneraUiFumd Hood Control iFwnd 265,800 GeneraUiFumd Street ComstructUomIFumd 2°000800 GeneraUiFumd Water -Sevier IFumd(Gravity Sewer) 9D0,1000 GemeraUiFumd Water -Sevier IFumd(Northwest Interconnect) 3,940,417 General IFd Village Parking � c) Expenditures The data below recaps the expenditures incurred through December 2024. 10 1 Representation 708,940 6.544,4744 92.3% 561,712 92,762 16.5® 20 'Vill1la8e Administration 6,306,1445 5,21344,955 82.5% 4,978,390 226,566 44.6% 3,01 3,095,094 2,8744,559 92.9% 3,481,1.18 (606,559) -1.7.4% 40 Community 09evellopment 5,803,453 44,265,,0446 73.5% 5,180,817 (915,771,) -1,7.7% 50 Human Services 1,91,6,802 1,,494,,671, 78.0% 1,,397,1,71 97,,501 7.0% 601 25,1,68,755 244,0414,,570 95.5% 22,,3944,5448 1,650,022 7.ela 70lFiIre 25,9449,331 22,255,062 85.9% 21,3644,522 920,540 44.3° SO I Works 7%218,309 61,222,750 77.3% 414,370,783 1.6,851,967 38.0° 0j01Non-0epartmentall 442,177,797 441,079,4461 97.44% 33,726,318 7,353,1443 21.8% Total Expenditures 190,344,626 163,125,548 85.7% 137,455,379 25,6701,169, 18.7 The above amounts do not include the expenditures for the Pension Funds, as they are separate entities. The above amounts are unaudited and subject to change with accrual/audit adjustments. personn6l 61,997,706 5%32,0,453 95.7% Contractual Seruiices 40,536,0414 37,9447,575, 93.5° Commodities & Supplliies 2,692 173 2,182 293 81.1% C.apidt4llImproverments 49,980,008 30,945,219 61.9% Debt Service 9,392,309 8,620,210 91.8% Other Expenditures 25,696,,381 24,105,79,6, 93.8% Total Expenditures 190,344,1626 163J251548 85.7 56,519,960 2,&00,4493 5.,G% 37,6,64,407 283,1,71, 2,100,835 81,457 3.9°% 12,451,184 15,,44919,035 1448,.6% 8,,6+94,,849 (74,,639) -0.9;% 20,0244,1414 44,081, 6.52 20.44% 137,4551379 25116701,1169 18.7 Personnel Costs: The year-to-date expenditures for Personnel Costs, including benefits, are $59.3 million, or 95.7 percent of the annual budget for the category. The amount is trending higher by $2.8 million or 5 percent compared to last year's amount, mainly due to higher pension contributions for the year and cost - of -living adjustments for wages. The overtime expense through December 2024 totaled $3.5 million, while at the same time last year, it totaled $2.7 million. The Village is staffing the Fire Station 11 engine on an overtime basis. Additionally, an increased number of worker's compensation claims has resulted in higher overtime for the year. The above amount is before the yearend and audit adjustments. The yearend accruals and adjustments will increase the reported amount and will bring it close to 98% of the budget. Contractual Services: This category covers most contractual services, including some large line items, such as JAWA water purchases, budgeted and grant -funded engineering studies, and other contracts. The Village incurred $37.9 million in contractual services, equating to 93.5 percent of the annual budgeted amount for the category. The expenditure amount is trending higher by $283,171 or 0.8 percent, mainly due to inflationary and timing issues. Supplies: Through December 2024, the Village spent $2.2 million on supplies, which totaled 81.1 percent of the annual budget. The commodities and supplies are on track as expected and marginally trending higher by $81,457 or 3.9 percent, mainly due to inflationary adjustments. Capital Improvements: The Village initially had $36.0 million in approved capital improvement projects for 6 2024. In March 2024, the Village Board approved a budget amendment to carry over $13.8 million in unfinished projects from 2023 to 2024. The Village has spent $30.9 million on capital improvement projects through December 2024. The remaining budget amount is expected to be carried over to 2025 for unfinished projects and projects with timing issues. Debt Service: Per the established debt service schedules, the Village's bond payments are due on June 1 and December 1. The Village processes these debt service payments a few days before due dates and keeps sufficient funds to execute them. The Village has paid $8.6 million in debt service expenditures through December 2024. Other Expenditure: The Other Expenditure category includes expenditures not categorized above. The budget for this category includes $21.3 million in inter -fund transfers and $4.4 million in other expenditures. The Village has incurred $24.1 million in expenditures under this category through December 2024. The expenditures include $20.8 million in inter -fund transfers and $3.3 million in other expenditures. d) Fund Balance Analysis: The fund balance is an essential tool to check the fiscal health of any governmental organization. The data below summarizes the Village's monthly unassigned/unrestricted general fund reserves. The fund balance data is unaudited. Revenues- Unaudlited 82,613,435 15,38,8,054) 16,337,235 23,3,29,96,7 27,136,42883,191,680 Expenses - Unaudited (78,,29,9,452) (17,405,Il44) (14,290,567) (27,8,18,50) (27,606,060) �37,110,772) Net Monthly SurplusJ(C9efkit) 4,313,983 (2,017,6195) 2,5561268 (3,988,574) (4691632) (3,9191032) As % of Gener@ll Fund Budget 48 45% 48% % 43% 43° As % of General) Fund Budget 35% 45% 48% % 37% 37% * Fund Balance is unaudited, and subject to yearend adjustments and other changes. Includes only unrestricted fund balance for the General Fund. The above fund balance analysis is not audited and is subject to change. As of December 31, 2024, the unrestricted fund balance is estimated at $39.7 million, which equates to 43 percent of the annual budget. Not all revenues and expenditures for the fiscal period are recognized, and the above amount will change as and when yearend accruals and adjustments are added. The yearend accruals and adjustments will further improve the ending unrestricted fund balance. The year-to-date financial activities have resulted in a deficit of $3.9 million. In 2023, the Village revised its Fund Balance Policy, and the new target is set to maintain the fund balance between 30 and 50 percent. Besides that, an Economic Emergency Fund was established in 2023, and a transfer of $6.5 million was executed as initial funding from the General Fund reserves. The Village funded the second installment of $6.5 million for the Economic Emergency Fund in July 2024 from the 2023 audited surplus (General Fund), reducing the overall fund balance starting in July 2024. Economic Emergency Fund The Village Board authorized the creation of a new Economic Emergency Fund in May 2023 and approved a budget amendment funding $6.5 million from the General Fund reserves as an initial funding amount. This transfer was executed in May 2023 and invested in June 2023 in a AAA -rated I -prime account. The table below summarizes the Economic Emergency Fund activities for the month. During July 2024, the Village funded the second installment of $6.5 million. Also, the Economic Emergency Fund earned an 7 interest income of $51,513 during December 2024. As of December 31, 2024, the Economic Emergency Fund reported an ending fund balance of $13.7 million, which comprises $13.0 million in Village Contributions from the General Fund and $691,635 in interest income. Fundungfrom the General (Fund 6,5,DG,000 - - - - 6,500,000 - 13,000,000 Interest (Income 21,5241 8.5,792 88,3741 8,7,9.74 88,4161 159,128, 166,536 691,635 6,521,5241 8.5,792 88,3741 87,8.79 88,401 6,659,128 160,536 13,691,635 Expenditures - - - - - - - - Net Monthly Surplus/Deficit 6,521,524 85,792 88,374 87,874 88,401 6,659,128 160,536 13,691,635 e) Other Items: a. During December 2024, the Village issued 70 real estate transfer tax stamps, of which 36 were exempt and 34 were non-exempt. During the month under review, the Village collected $48,639 in real estate transfer taxes. The average selling price for real estate was $476,802. At the same time last year (December 2023), the Village sold 85 transfer tax stamps, of which 40 were exempt and 45 were non-exempt. In the same month last year, the Village collected real estate transfer tax totaling $67,512, and the average selling price was $500,024. Respectfully Submitted, Amit Thakkar Director of Finance N N M A � w U A w M, a 31 d -0Z ca C f1l d I. 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