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Home My WebLink About10.1 1st Quarter 2026 - Financial ReviewSubject Meeting Fiscal Impact (Y/N) Dollar Amount Budget Source Category Type Information Item Cover Page 1st Quarter 2026 - Financial Review April 21, 2026 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD COMMITTEE OF THE WHOLE - JOINT VILLAGE BOARD AND FINANCE COMMISSION WORKSHOP Presentation The Finance Department prepares and presents a quarterly financial review and analysis each quarter. This item discusses the unaudited financial results for the year 2025 and financial activities that took place in Q1-2026. Discussion The Village of Mount Prospect remains in a strong and sustainable financial position entering fiscal year 2026. This First Quarter Financial Review highlights solid year-end 2025 results, healthy General Fund reserves, strong Police and Fire Pension Fund investment performance, and stable first-quarter 2026 operations despite the temporary impact of delayed property tax receipts. Fiscal year 2025 closed with particularly strong revenue performance. Operating revenues exceeded budget by $16.2 million, driven largely by exceptional intergovernmental revenue growth and favorable performance across several major revenue categories. The Village collected $44.2 million in state sales tax, an increase of 17.2% over 2024, reflecting a resilient local economy, a strong retail and business base, and the Village's strategic location. Income tax revenues reached $10.3 million, up 6.2%, while home -rule sales tax also posted significant growth. Legislative changes requiring out-of-state vendors to remit destination - based local sales taxes also contributed to a shift from use tax to sales tax revenue. In addition, investment income materially exceeded expectations, reaching $5.9 million versus an original budget of $3.9 million, as anticipated rate cuts did not occur as quickly as forecast. At the same time, expenditures remained well controlled. The Village's final amended 2025 expenditure budget totaled $183.9 million, while actual spending was $145.0 million, or 78.8% of the approved budget. All departments operated within their authorized spending limits. Project timing, supply chain delays, grant -dependent capital schedules, and the accounting treatment of certain enterprise fund capital costs all contributed to expenditure levels coming in below budget. Personnel, contractual services, and commodity spending generally tracked appropriately, while major debt service and interfund transfer obligations were completed in accordance with financial plans. The General Fund ended 2025 in a notably strong position. Actual General Fund revenue totaled $92.6 million, while expenditures totaled $79.2 million, producing a substantial year- end surplus. As of December 31, 2025, General Fund balance totaled $59.7 million, equivalent to 69.7% of the 2025 annual budget. After accounting for receivables and restricted or encumbered amounts, the Village's spendable General Fund balance was approximately $33.6 million, or 39.1% of the 2026 annual budget. This level of reserve continues to support the Village's long-term financial flexibility and stability. erverlUes - Un3llcfilled 83 654,388 9°2 979 988 92 63 22 E x p en s e s- u n a LI d iiii1i t e.d 3 9654,9388) 91 9497 9679) 9224, 12o N etlM o"11101 lySllu rpItisal(D ef i cit') IM 1482309 13 4 13 794 M n C I ICI d es p rolip oils eda i d n �. n,, b d olipted nli n Ap iiIi 1 21 °2 °2 6 t ' s a i r Irv: �� , , ""'' V � �l � �� t.� �i �� W, �� w,� ��, �N �� ,�� iu �� a �«� � � �� . � ��,�� m y�4 a �� . �, I � �� ,� � �� l� � � � I� , Police and Fire Pension Fund performance was also very favorable in 2025. Both funds reported average investment returns of approximately 17.5%, significantly exceeding the benchmark assumption of 7.25%. This strong performance supports the Village's continued pension funding progress and enhances long-term financial sustainability. ContriblItions, late n' i ployees Total GontrobUtions Interest Investmetit Income , Dividendis Net Chaing , in Fro IT Va t u e Totial IInvestMeirit Income, Less nvestmentExpenses Net lnves,tm�ent Income Exit ii n s i o ° Pension Benefts Refunvds Total I ens o ° en 4"ts & Refunds Total Expendit"Ures, 13tO15,802 ,834 77�924 93,372 II, 1,620 08 9 �588 41,8 85,308,692 For the quarter ended March 31, 2026, total recognized revenues were $19.8 million, or 10.6% of the annual budget. This was $11.5 million lower than the same period in 2025, but the decline is primarily attributable to a timing issue rather than an operational concern. Due to Cook County's delay associated with technological upgrades, the Village received only $1.1 million in property tax revenue through the end of the first quarter, compared to $12.5 million received during the same period last year. Property tax payments began arriving in April 2026, and the issue is expected to normalize in the second quarter. p le XNr iN 25,537,577 ,r o065,29 Wr^ ° k.. ,PI fl"Iw9 (111423l,779) w� N5, the a tis 4. 5010 17ry� �42 ,4 : Y I;16 1,031,735, ',45 W ;4 K N e r" I eI lu W nW tI ':MIm it , ev Ri, XI U , , / 76,740,509 3,272 � (2 % 3,470,719 (909 ) -5 M1 errnits 72 210059,752 3d3 VU y uM 286,32 N uWYmIieM'i i Ul es, V 4' f i s � I � AMM 2 5,0 157 o ' 7 2 XX. , % 138,738 18m , 3 u1 IN 6% Investment hficomile, 3,�25o1 1 II 1,0117,984 31.2% 1,280,499(26205 5) N�II V .. � 'M1nAM itll Nes, 14 tll W i JM' N IPp,. P' ' Mw ,. I aw u, ^�ni, 52,502, ni �N u2� �2 IINI��V L ,11 �N 4iI�'''''" Revenue 4„W�NN AImNr,� 2,947� 168 �, ryN' N' ". � ,19 �ii1 pN,Wu;�ry"gyp X�in 2.91 ��^�6 �'�'yp' '.' �u ,I, elm I 3' m4, �- M f M ll� � Wyk W�' s i�� U� VI64 0 I , U 114,536 5 N: ��U r 441,429 '+3 .8, 2 J�p� ��r , N �". Jr(W l (111,503,274) Aside from the property tax delay, first-quarter revenues were generally stable or favorable. Other taxes were modestly ahead of the prior year, license and permit revenues increased significantly, charges for services remained steady, and fines and forfeitures were up from the prior year. Intergovernmental revenues were slightly below the prior year due to normal State remittance timing and continued shifts in the composition of use tax and sales tax collections. Investment income remained strong at $1.0 million, although slightly below the unusually high level reported in the first quarter of 2025. First-quarter 2026 expenditures totaled $27.4 million, or 13.1% of the annual budget, and were 3.8% lower than the same period last year. Personnel costs were lower primarily because pension -related property tax receipts and related payments were delayed. Contractual services trended modestly higher due to timing and several large recurring operating costs, while commodity spending increased because of higher salt purchases and inflationary pressures. Capital spending remained limited in the first quarter, as most projects are still in planning or early implementation and are expected to accelerate during the summer and fall construction season. e nnel 6 ,5 2 �; � 12,E I � � ,9li,i 16,026,307 2�. ilmodi ies & Supplies2,966,760 8,07,3412 N20,4 4,70,818 ,361 52 N 5CI It � I � �� I G SIN, IDy Totat Expenditures, s 208,83k285 2 AM22 31% 2 , " tI 7 3J49) 3. General Fund reserves remain particularly strong as of March 31, 2026. Unaudited data shows unrestricted reserves of approximately $45.0 million, equal to 49.6% of the annual budget, with an equivalent level of available cash on hand. Had property tax receipts been received on their normal schedule, the reserve ratio would have been closer to 57.9%. In addition, the Economic Emergency Fund reported a balance of $14.46 million at quarter -end, including $13.0 million in principal contributions and $1.46 million in accumulated interest earnings. This dedicated reserve further strengthens the Village's capacity to respond to economic uncertainty. Overall, the Village enters 2026 from a position of considerable financial strength. Revenues remain resilient, expenditures are well managed, reserves are healthy, and pension performance has been favorable. Although first-quarter results reflect temporary timing distortions from delayed property tax collections, the Village's underlying fiscal condition remains sound. The Village is therefore well positioned to continue delivering high -quality services, maintain tax stability, support its strategic priorities, and prepare for its planned 2026 bond issuance and pursuit of an AAA credit rating. A reporting containing Ql-2026 financial review in detail is attached herewith. AItprnativp- 1. Village staff to discuss Ql-2026 financial review with the Finance Commission and the Village Board. 2. Action at the discretion of the Village Board. Staff Recommendation Staff recommends discussion and financial review of Q1-2026. Attachments 1. Q1-2026 Financial Review - 04162026 Village of Mount Prospect Finance Department First Quarter Financial Review For the Quarter Ended March 31, 2026 Prepared By: Amit Thakkar, CPA Director of Finance 1�� i�rl d u It rqV' uWlll , t 1I1 r- The Finance Department prepares and presents a review of the financial activities for the most recently ended quarter. This report summarizes the financial activities of the Village of Mount Prospect for the first quarter of the fiscal year 2026. The report begins with summarized and unaudited financial results from the fiscal year 2025, followed by an analysis of General Fund reserves and Police and Fire Pension Funds' funding reports. Further, the report contains revenues and expenditure analysis for the quarter ended March 31, 2026. 2 0 2 5 U i�N w,i d IIIIII li a ul III a1�� s Throughout 2025, and during the first quarter of 2026, Illinois local governments continued to navigate a shifting fiscal environment shaped by legislative and economic developments at the state level. Most notably, the State's elimination of the 1% grocery tax became effective January 1, 2026; however, enabling legislation authorized municipalities to adopt a local replacement grocery tax by ordinance to preserve this historically significant municipal revenue source. As a result, many communities across Illinois (including the Village of Mount Prospect) acted proactively to mitigate potential revenue losses and maintain essential local funding streams. Municipal leaders also continue to monitor Springfield closely for legislative proposals, including Senate Bill 1937 and other pension- and revenue -related initiatives, that may carry long-term fiscal implications for local governments. Against this evolving backdrop, the Village of Mount Prospect remains in a strong financial position, supported by prudent fiscal management, healthy reserves, and disciplined budgeting practices that continue to prioritize long-term financial sustainability, exceptional service delivery, and tax stability for residents. Despite ongoing challenges, the Village achieved record -breaking intergovernmental revenues and outperformed budget expectations across multiple revenue categories. Operating revenues exceeded projections by $16.2 million, and a budget amendment recognizing these favorable variances has been added to the Village Board agenda for April 21, 2026. The Village collected $44.2 million in state sales tax, representing a 17.2% increase over 2024 collections of $37.7 million. The Village's robust local economy, strategic proximity to major highways, and pro -business environment continue to support business retention, expansion, and attraction efforts, contributing to exceptional growth in revenues generated by the business community. In addition, income tax revenues increased 6.2%, while home rule sales tax revenues grew 18.4%. Recent statutory changes requiring out-of-state vendors to collect and remit local sales tax on a destination basis have also impacted revenue composition. Under prior law, these transactions were generally subject to use tax; accordingly, the Village has experienced a corresponding shift from use tax revenues to sales tax revenues. Property T rxes 24,1813962799 , 1 108 . ' I 24,13821279 21551,353 1 . % O herr Tayxes 15,554,9350 1794871227 11 .4%, 15,72514,77 11761,750 11.2%, III nterr overrn m enta L RevenU e 54,18579954, 9 1 1 11 .9% 591823J46 3J9513203 Licenses, IlPermits & Fees 119129000 19625,966 8.I 21029,196 (4,03,229) -19. 9% Other Ili liiii rr-r n c�-r iiiii n, _ ,SO�L,r rr 1 9 9 3 698931885 41.9% 1 1 3� 1 �639 181 - 4.7%, R.&I m b U rs em tints 1 1086 9500 19900,304, 17 .9% 920�907 9791398 106.4% Tot�a L Reve n a a s uir . ' a s (1,2629128) - . ' The above -listed revenue sources are analyzed below: 1) r"- i nn it ,, a Property tax is one of the most reliable revenue sources. The Village's total 2024 levy payable in 2025 was $18.2 million, which includes 2.0% for losses and costs. The Village was expected to collect 98.5 percent of the 2024 levy, payable in 2025. The property tax collection for 2024 (collected in 2025) totaled $26.9 million, or 108.5 percent of the original budget. The original property tax budget for the year also included $6.6 million for the Tax Increment Financing District (TIF). The actual collection for the TI F was recorded at $7.8 million. The final 2025 budget is being revised to reflect the above outperformance. oI Iill", mlWb axes Other taxes include locally enacted taxes, such as home rule sales tax, food & beverage tax, real estate transfer tax, municipal motor fuel tax, utility taxes, hotel/motel taxes, and cable franchise fees. . 11• � :1„ � Calendar Calendar Caler i d a r Calendar Calendar CaIlIendar Caleidar The 2025 collection totals $17.5 million, $1.7 million, or 10.6 percent higher than 2024, mainly due to increased home -rule sales tax collections. The home -rule sales tax collection totaled $9.3 million, an increase of $1.5 million or 18.9 % compared to the 2024 collection. The Village collected $2.8 million in utility taxes, $4.5 million in various use taxes, $517,942 in franchise fees, and $375,125 in business district tax. The Village collected $1.2 million in real estate transfer taxes in 2025, an increase of $163,595 or 16.1 percent compared to the 2024 collections. The intergovernmental revenues include revenues from other governmental units and agencies, mainly from the State of Illinois. The Village has recognized intergovernmental revenues totaling $63.0 million for 2025, an increase of $3.2 million or 5.3 percent compared to 2024 intergovernmental revenues. The most significant revenue source under this category is the state sales tax. The State of Illinois shares 1% of all general merchandise sales within the jurisdiction of the Village of Mount Prospect with the Village. ,1, 1; 000 $4.42 billion in total sales was recorded for 2025, and the Village received a total sales tax collection of $44.2 million. The 2025 state sales tax amount is higher by $6.5 million, or 17.2 percent, compared to 2024 revenues. The table below shows the performance of major intergovernmental items in comparison to 2024 amounts. 4, - u � es T 449228� 9 48 �1 �480 9560 17 ° % 006 - Vliiiii d eo Gaa ni iiiI ng Tax M389 � 133 345�021 911 12 a,&% 007 - Caannaaiiil IIE I Li tiiii o III Und 86 �439 91�59791 - a, `%,. 008 - M U iii1i bl p a L Ca n n a b iI s Tax 78 �5 2 90 � 1198 ' -1 .1% T ot a 1 St a t a Ta X e s 58,4689417, a , .` Furthermore, the Village's income tax budget was initially set at $9.5 million for 2025, but the actual collection at the State level was much higher. The income tax revenue is shared as a per capita item, and the State shares 6.6% of the income tax collection with all local governments based on population. The total collection for 2025 is recorded at $10.3 million, an increase of $598,309 or 6.2 percent compared to the prior year's collection. 21 9 20202021 22.2 2023 224 22 icenses & I�Ieii�'nefts The Village collected $1.6 million in license and permit fees, which is $403,229 lower or 19.9 percent lower than in 2024. The amount collected reflects 85.0 percent of the annual budget. The amount includes $682,309 in business licenses and permits and $943,657 in non -business licenses and permits, including building permits. Overall building permit revenues are lower due to the high -interest -rate environment, which has contributed to a slowdown in construction activity. 4,09 - Li iiiiii III IILicenses & IIP er iiii � �756 4,1553.7 1 IINonbLlsilness Licenses IIP ,rni liiiii 9 � 1 � 1 � 4 � -30.2% Tota I BLI S in e s s Licenses & Pe rini a6259966 2 a029 a1, a Imllu IIII aNm ipI I es fur S nInI r IIIIces The Village collected $49.6 million in charges for services for the year 2025. The amount is higher by $6.1 million, or 13.8 percent, compared to 2024 collections. The charges for services include water and sewer fees, refuse fees, ambulance billing fees, parking fees, internal service insurance payments, and vehicle lease payments. The increases in the charges for services are mainly due to planned increases in water, sewer, and refuse fees. The category includes $16.2 million in internal service payments for risk management premiums, vehicle and computer replacement leases, building improvement, and vehicle maintenance internal service charges. 0 n � I!!!!!:0 �°. I * a liii, III�� The Village collected $679,417 in fines and forfeitures during the year 2025. This amount is higher by $74,617, or 12.3 percent, compared to the 2024 collection. The amount collected reflects 111.7 percent of the annual budget. I r"imI.eou gut io UUe nt I ri 14rooUU m IIU ml The original budget for investment income for 2025 was $3.9 million, as rate cuts were expected during 2025. However, rate reductions did not occur as fast and to the extent expected, resulting in the investment income totaling $5.9 million. Of this amount, the General Fund investment income totaled $2.2 million, against the original budget of $2.1 million. i°II III,,,, I�i°"I Revenues III IIII Iu All other revenue sources include inter -fund transfers, reimbursements, and other miscellaneous revenues. The budget was revised several times during the year, and the final inter -fund transfer amount was set at $16.5 million. Not all the budgeted transfers are executed. The Village executed inter -fund transfers totaling $15.6 million. However, transfer of $8.7 million from the General Fund to the Prospect & Main Fund is treated as a receivable item, rather than an expense item. Per the plan, the Prospect & Main Fund will reimburse this amount with 4% interest from 2028 to 2033. The Village also collected other revenues totaling $3.1 million and reimbursement amounts totaling $1.9 million. 2025 Exp (Ulrmudi9ted) The original Expenditure Budget for FY 2025 was $165.4 million. The budget was revised several times during 2025 and finally settled at $183.9 million, but the actual spending for the year was $145.0 million. Due to timing issues of projects, original budgets were revised and increased/decreased with carryover items from time to time. The tables below recap the annual budget and actual spending for 2025 by department and by expenditure category. 10 IIILabi.iiiI c R epresentation779,620 72791909 .3% 6299503 971687 1 .5% 616821559 9893 9668 88.2% 591 9 9022 7",164,6 1 .5% 50 Ili U -i a nServi ces 1178514,65 1974,59356 9 .8%, 1 94,97 928 1 2 48 10 7 5 1 .' 60 Ilio Lliii c e, 2811161292 9 9 4,%, 24,9223 9658 213821564,9„ % IliiiiIr e 2513681238 24,9673 9058 9 .3% 22 9 38 9540 11934,1518 8. 80 IlP U b I Ic Works14 18 15 51904,19523,8% 45 94,78 9048 1 1 1 .2% 00 III D 37,64,11104, 22 9847 9484, 60.7% 35 92 18 9 (12,370,722) -35.,1% Totat Expenditures 183a982911731,4590299949 .8 1,4792529070 a a, - 1.5%, IIPersoinnel 64,969794,74, 63J58�061 .` x , 58 � �308 4,9757�753 8.,1181 De tier iiilce 99735924.9 1 1897 58.'% 1 1 1 , (63,517) -1.11 Oth er III p err r] iiiItU res 119578 9596 714,011684, 63.9% 91 14 , 92 , 91 - 3.4%, III nterfLi n d Tra n sfears 16 9 " 9 �864,433 41,71%, 19 � " � 12 (12 9 �8 - 4,'% All the Village Departments have performed within the stipulated budget limits for the year 2025. The Village has spent $145.0 million in expenditures for the year 2025, which equates to 78.8 percent of the total approved budget. The Public Works Department is responsible for various capital projects. Some of these projects are either delayed due to supply chain issues or are grant -funded, and the grant amounts have not yet been received to conduct the projects. The expenditure by category (as mentioned in the second table) shows that the Village has spent 97.6 percent of the budgeted personnel costs, 93.9 percent of the budgeted contractual services, and 82.9 percent of the budgeted supplies and commodities. The Village budgeted a total of $34.7 million for the capital projects during 2025. However, due to accounting rules for the enterprise funds, all the capital projects for the water and sewer funds are capitalized and removed from the expenditure categories. The remaining amount of governmental projects total $18.2 million. During the year, the Village paid $9.7 million in debt service. It includes $7.1 million in bond principal and interest payments and $2.6 million in developer's note payments. The Village had executed $15.5 million in interfund transfers, reported under other expenditures above. Of this amount, $8.7 million is treated as loan payments to the TI F and moved to the General Fund's Balance Sheet as receivable from the Prospect & Main TIF. General Fund 83�654,388 92 �9 9 988 92 �63 �922 D 8 0` �k I n C I LI d es p roip ois ed a ni en d rn ent to, b e a d opted on Ap rlil 1 21, °2 °26 The original 2025 General Fund budget was a balanced budget. The total General Fund revenue budget and expenditure budget for 2025 was $83.7 million. The expenditure budget was revised to $91.5 million. The actual recognized revenue for the General Fund totaled $92.6 million, while the expenditure totaled $79.2 million. As mentioned earlier, a few outperforming intergovernmental revenues, including state sales tax, income tax, and home -rule sales tax, are the main reasons for the surplus for the year. The actual cash expenditure for the year is $87.9 million. However, $8.7 million in transfers are treated as loans receivable from the Prospect & Main TIF and moved to the balance sheet. i ng Urn re,stricted Re,sie rve,si, 461,34,81,799 4 1 17 4 1,7,1, 17 44,1,5461,260 591,7621,5931,7 1 _..End B g. Unencumbler,ed c aish Balance 34,1,2391,750411697 1104, 4 1 1,1,94 44,1,5461,260 33157217,19157 17,1 �t iiOrm mmt &IT �9ii . � i i �9,eM�eIo�W ii. „.iM��IIII �W As mentioned in the above table, the General Fund started the fiscal year 2025 with $46.3 million in the unrestricted fund balance, while the actual spendable fund balance as of January 1, 2025, was $34.3 million. The net accounting surplus of $13.4 million (from 2025 activities) is added to the unrestricted fund balance. As of December 31, 2025, the fund balance is 69.7 percent of the 2025 annual budget and totals $59.7 million. Some portion of $59.7 million is not readily available for spending, and it is occupied by taxes and other receivables totaling $26.2 million, which leaves the Village with a spendable fund balance of $33.6 million, which equates to 39.1 percent of the 2026 annual budget. The unrestricted fund balance is further lowered by $5.0 million in loans to the Prospect & Main TIF. The actual loan payments are $8.7 million, of this amount $3.7 million was previously reported as committed fund balance, which is now considered restricted fund balance until collected back from the TIF. The new loan of $5.0 million to acquire 111 E Busse property is being encumbered on the fund balance and reduces the unrestricted fund balance accordingly. �p°I�Ii�roe �iiiiiiiiiiiii iil�l� mm Ui��riatjdl��[ted Overall, the fiscal year 2025 was a positive year for the Police and Fire Pension funds, and both funds reported an average investment income of 17.5% for the year, against the benchmarked rate of 7.25%. eve n Cointrll b Li liiiiii Oirl - V�i� Ile , �2 7 1 4,814,127 - Eip I Oy e 1j9 1�004,104, Tolta I c ol ntro,b Lit! 01111 S 6 �882 � 1 � 1 �2 1 Investment ofm Tolta I Investnienti 1� 1 � 195 14,78%493 Less Investnient E.xpenses (95 �36 1) (188 �230) Expe n i ti re s d ni iiiI n iI aiiiiii on 77 �92 93�372 Penslioin Benefits� 121 �2 Tolta I Pen iil oii n Bene filts & R e'f Li n d s 8J26�51 7 �899 Tolta I E p en r1 IllItLi re �2 , �992 Qua i��rtei��rp 1, 20,26 Q1 -2026 reflects total recognized revenues of $19.8 million, representing 10.6 percent of the annual budgeted revenues. At the same time last year, the total collection was $31.3 million. The reported revenue reflects lower collection by $11.5 million or 36.7 percent, mainly due to delayed property tax payments. III ro, p erty Taxes 25,537,577 11065,291 4,21%, 1214891070 (1114,23,779) -91.,51% Other Taxes 17,194,1500 1�4201194, 831%, 1�0311735 388 14,59 3731% I nteirgolvern m enta I &jen U e 76,74,01509 32721023 4,31%, 34701719 (198 1696) -5.71% Licenses, Peirmits & Fees 21059,752 8361238 4,161%, 54,91908 2861329 52.11% Charges Foir Sei,Nltes 491996 1827 112691140 22.5%, 11J881336 80 1804, 0.7% Fines & Foirfelits 54,11250 157,675 2911%, 138 1738 18 1937 1161% Investment IIIncof 31257 1800 110171984, 31.2%, 1128014,99 (262,515) -20.,5% Other Financing,SO,Lirces 8 175 1 1000 - 0.0%, 52,502 (52,502) -100.,0% Other .erg Li 2194,71168 675,291 22,9% 6,88 17 10 (13,419) -1.,9,% R.&I m b U rs ens tints 730 1800 114,1536 15.71%, 44,114,29 (326 1892) -74,11% Told a i Rieve 11 Lij e s 1,87 ,757 , 1,83 1%828,372 10.61% 31,331,646 (11,503,274) -3631%11 • The Village normally receives its first installment of property taxes in March. Due to technological upgrades, property tax payments are delayed. The Village received only $1.1 million in property taxes through March 2026. At the same time last year, the Village had collected $12.5 million in property taxes. The Village started receiving property taxes in April 2026. This timing issue is expected to be resolved in Q2-2026. • Other Taxes encompass locally enacted taxes, including home rule sales tax, food & beverage tax, hotel/motel tax, municipal motor fuel tax, real estate transfer tax, and a few more. The collection is higher by $388,459, totaling $1,420,194. The above amount is not final, as the home rule sales tax for Q1 - 2026 will be recognized in April 2026 and beyond. The Village collected higher gas tax and real-estate transfer tax during Q1-2026 compared to last year, resulting in an overall higher reported revenue. • Intergovernmental revenues totaling $3.3 million were collected during Q1- 2026. The collected amount is lower by $198,696 or 5.7 percent. The revenues for Q1-2026 will be received in Q2-2026, as the State taxes lag by three months. The amount for Q1 includes state income tax—$2.5 million, use tax $86,526, motor fuel tax—$440,756, and a few other miscellaneous taxes. Last year, the Village was still collecting higher use taxes. Due to recent changes in the law, starting April 2025, the Village started collecting higher sales tax and lower use tax. During Q1-2025, the Village collected $413,602 in use taxes, while in Q1 -2026, the Village collected only $86,526 in use taxes. • License and permit fees totaling $836,238 were collected during Q1 -2026. The collected amount is higher by $286,329, or 52.1 percent, compared to 2025 collections. • Charges for Services: A total of $11.3 million is recognized for Q1-2026 as charges for services. This amount is marginally higher by $80,804, or 0.7 percent, compared to 2025 revenues. • The Village collected $157,675 in fines and forfeitures during the quarter under review. The amount is higher by $18,937, or 13.6 percent, compared to last year. • Investment income totaling $1.0 million was recognized during Q1-2026. Investment income is lower by $262,515 or 20.5 percent compared to 2025 revenues, mainly due to a marginal rate reduction and timing issues with specific investment maturities. • All other revenue sources collectively account for $789,827. The amounts under these categories fluctuate from year to year. 2025 �of moo �u mi Q1-2026 expenditures totaled $27.4 million or 13.1 percent of the annual budget. The total expenditure is lower by $1.1 million, or 3.8 percent compared to Q1-2025. 10 Pgibi.iii1i e ntatiion 79914,07 172,616 1a % 94,1662 779954, 8. 20 Viiiiillage Ad iliiiinI t l tli!on 614,19,190 11133,903 17.% 111601844, 994 - 3% 50 IIH L,l Mac y n lI 1174,11760 17 a1% 9905) -8 3 80 IIIgibIiiiI c Wo rks 96,501,267 814,60,544, 71904,1696 5559848 ,N Tot I:Expendit re a838 a285 27 a393 a 1,22 1111% 2894769871, (19083a749)-." D Departments -t 2026 2026ft UN2025 I" I Personnel 68 953214,27 12,300 1081 1 a,9"% 16,026,307 9726 9225) - 3„3 Coinimoldities &SUpp[IJIes99 ,760 8071341 a2% 4,70 18 18 3369523 1 „ Capiltaa[ Improlveliments 19 % �7 �303 6.,0% 2�005J85 197189119 8.7 , III nterfLi n d Tra n sf ers 8 975 11 - a'01% - - + Tort I Expe 11 d rtLr re a838 a285 27 a393 a 1,22 .% 28 a476 a a a - . • The Village has spent $12.3 million from its personnel budget during Q1-2026. The amount represents 17.9 percent of the annual budget, and the expenditure reported are lower by $3.7 million, mainly due to lower pension contributions. The Police and Fire Pension property tax levies are delayed by Cook County, resulting in delayed payment to the pension funds. • Contractual Services totaled $10.2 million during Q1-2026. The expenditures amount to 22.1 percent of the annual budget and they are trending higher by $483,200 or 5.0% compared to last year, mainly due to timing issues. This category includes various big ticket line items, including water purchase from JAWA, software costs, and insurance services. • The Village has spent $807,341 in commodities and supplies, 27.2 percent of the annual budget. The Village's spending is higher for the year compared to last year by $336,523 or 71.5 percent, mainly due to higher salt purchase compared to last year, and recent inflationary increases. • The Q1-2026 capital improvement spending totaled $3.7 million, representing 6.0 percent of the annual budget. Most of the capital projects are under a planning phase and have not yet started for the year. The major costs are expected to be paid during the summer and fall. • The major debt service payments are due on June 1 and December 1. There are no major debt service payments made in Q1-2026. An interest accrual of $54,206 incurred for the business district note. • The Village incurred $350,552 in Other Expenditures during Q1-2026, which represents 3.2 percent of the annual other expenditures budget. • The current budget includes $8.7 million in interfund transfers. These transfers are normally carried out between July and December each year. Geirilier"I'al llesermvesfl, Expenses - g IaLldlted � � 755) �5 1 330)�7 , � °.. ' 1 ,, ., ,, 47 1 iY iX + 208 + iX + 19 2 iX iX Enrd I n; Un.........restricted ales,) vi, 54, 5 52 553789 49 134,448 45,...p, , 5,.. 5 p 5,.. ( of. IIIind III g , AsGeneral V V V [Unencumbpered,,Gasib i lanIi :. 33 5 .1 ,phi ........ 42 �759,699 6",� 358 14,... 4,.... p 5 ...... 45 p 5As IIIind III i of General The above unaudited data shows that the General Fund unrestricted reserves stood close to $45.0 million as of March 31, 2026, which equates to 49.6 percent of the annual budget. The available cash on hand also stood at $45.0 million, which equals 49.6 percent of the annual expenditure. Property tax payments are delayed by Cook County. The Village had received $12.0 million in property taxes at this time last year. Of this amount, $9 million belongs to the General Fund. If property tax payments would have been received on time, the above fund balance would have been around 57.9 percent of the annual budget. The Village's economic emergency fund reported a fund balance of $14,455,811, as of March 31, 2026. The amount includes $13.0 million in principal contribution from the Village's General Fund surplus and $1,455,811 in interest income. The Fund earned $184,372 in interest income in Q1-2026. Viiiiii I I age con rliI Li liil of IIInvestnient III of i � � 19 �690 � � - 49 �9", 5791 - 1 184,372 1 �4 �8 11 o"11th ty " ti rit i Cif 696959690 699959944a a372 1,494559811, The Village remains in strong and sustainable fiscal health, with the capacity to consistently deliver high -quality governmental services to residents and businesses, supported by a solid financial foundation. Performance through 2025 and continuing into early 2026 demonstrates a resilient and robust local economy. Looking ahead, the Village is well -positioned for its upcoming bond issuance in 2026 and is actively working toward achieving an AAA credit rating. Recent initiatives, including the establishment of an Economic Emergency Fund and updates to the fund balance policy reflect a proactive and disciplined financial strategy. These efforts are intended to support the Village Board's strategic goals efficiently, economically, and with long-term stability in mind. Respectfully Submitted, Amit Thakkar, Director of Finance