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HomeMy WebLinkAboutIII. COW Agenda Item 2009 Mid-Year Review and Update of the 2010 Budget Forecast Mount Prosp<::ct INTEROFFICE MEMORANDUM Village of Mount Prospect Mount Prospect, Illinois TO: MICHAEL E. JANONIS, VILLAGE MANAGER FROM: FINANCE DIRECTOR, DAVID O. ERB DATE: AUGUST 6, 2009 SUBJECT: 2009 MID-YEAR REVIEW AND UPDATE OF THE 2010 BUDGET FORECAST Each year, the Finance Department prepares for the Village Board and Finance Commission a mid-year review of the financial status of the current year's budget and a forecast for the upcoming year. The Finance Department also holds a joint workshop with the Village Board and Finance Commission earlier in the year to present a first-quarter review that includes a wrap-up of the prior year's activity and insight into early trends for the current fiscal year. This practice provides a solid foundation for preparation of the upcoming annual budget. This memorandum is intended to supplement the June 30, 2009 Budget Revenue and Expenditure Summaries that were submitted to the Commission and Board previously. The principal focus of this memorandum is on the General Fund, since it is the main operating fund of the Village. Also discussed to a lesser degree are a few of the more material operating and capital project funds. It should be pointed out that the current estimates of revenues and expenditures for 2009 are fluid and may change during the remaining six months of the fiscal year. 2009 MID-YEAR REVIEW GENERAL FUND The 2009 General Fund as approved by the Village Board in December 2008 totaled $41,635,000. This was a balanced budget. The General Fund budget was amended in April to account for carry-over items from the prior year's budget. Amendments to revenues included reductions in the General Village property tax as well as the property tax allocated to the Police and Fire Pension fund. Total revenues were adjusted downward by $175,000 bringing total General Fund revenues to $41,460,000. Adjustments to General Fund expenses were made in various areas totaling $319,900 bringing total General Fund expenditures to $41,954,900. After these changes, the amended budget now reflects a deficit of $494,900. Mid-Year Budget Review August 6, 2009 Page 2 As part of the mid-year review, we looked at all revenue and expenditure accounts to determine if any material variances were likely. We now expect total General Fund revenues to come in at $39,970,000. This is a decrease of $1,490,000 under the amended budget. Noticing a decline in overall revenues due to the slowing economy, staff was asked to identify $491 ,000 in budget cuts in their General Fund budget as an interim step to dealing with the anticipated shortfall. After taking into consideration these budget cuts, total expenditures are now estimated to come in at $41,463,209. The projected deficit at the end of 2009 is $1,493,209. Exhibit 1 presents a summary of our current projections of revenues and expenditures, with a comparison to the amended budget. General Fund Revenues: General Fund revenues at June 30,2009 were $15,570,676. This accounts for 37.6% of the amended budget. Being below 50% at mid-year itself should not be a concern as receipt of several significant revenue sources by the Village lag one to three months. These revenue sources include sales tax, income tax, utility taxes and other intergovernmental revenues. General Fund Revenue Collections as a Percent of Annual Budget 100% - 80% t: Q) 60% (.) .... 40% Q) a.. 20% 0% 00 00 ,,'li-'<' ,,'li-'<' ~:\ 0' 0 o'S' ,oq ~ 00 <<.'0 ~. 00 0<::- ..:;;-'3 ~ ~ ,;::-0 ,,<:- ",0 o 0''0 ,~ 00 ~'0 0~ ,0 >;\? 00 00 <<-$' ,;::-0 (;0 ,<:- ~ ,;::-0 ~ ~0 ,<::- <t- o'S' ",-q 0<:- 0<$' ,,0 '$)'::> 0~ ~ Revenue Type The preceding chart illustrates the percent of revenues received by the Village in several categories as of June 30th. The current year-end estimate for revenues is under 3.6% below the amended budget. Property tax revenues (for both the general and pension allocation) of $4,953,349 are running at 46.6% of budget. This is typical in that the first allotment of property taxes received is an estimate based on the prior year receipts while the second allotment, which comes in later in the year, captures the levy increase approved in the current tax year. Our H:IACCTIBUDGETIBudget 20091Quarterly & Mid-Year Reviewl2009 Mid-Year Review Memo - 8-11-09 COW.doc Mid-Year Budget Review August 6, 2009 Page 3 year-end estimate falls below the amended budget amount by 1.3%. The Village is beginning to experience a higher than usual number of refunds from current year taxes for residential and commercial property tax appeals. As a result, the percent of property taxes received as compared to the levy extension was lowered from 98% to 97%. Revenues classified as "Other Taxes" include such sources as the one-quarter cent home rule sales tax, food and beverage tax, real estate transfer tax, hotel/motel tax, telecommunications tax and the electric and gas utility taxes. In total, revenue collections from "Other Taxes" came to $2,265,471 as of June 30th, which is 29.8% of annual budget. Again, this is a category where there is a lag in receipt of two of the more significant revenues (home-rule sales tax and telecommunications tax). The Village's home rule sales tax is running 19.8% below budget through the first three months of the year. The drop in the home rule sales tax is the result of a slowing economy and the closing of the Walmart store for six months for a complete remodel and expansion of their retail store. Receipts from this revenue for the balance of the year (August- December) are expected to improve with the store's reopening. It is now expected that the home rule sales tax will come in 13.7% below budget for the year. The telecommunication tax is expected to come in above budget by $266,000 while other utility taxes (gas and electric) will fall short of budget by $207,000. By year-end, we expect to fall short of the budgeted amount for other taxes by $462,500. Collections from licenses and permit fees are at $2,216,158, or 58.7% of the $3.8 million budget. Vehicle license revenue of $1 ,223,634 is at 87.1 % of budget, which is expected given the timing for selling the 2009/2010 vehicle sticker. Activity for this revenue is coming in slightly higher than expected. As a result of this and other positive activity with building permits, revenue from licenses and permits is showing an increase from the budgeted amount of $38,000 for this revenue category. Intergovernmental revenues totaled $4,890,653 as of June 30th, which is 30.1 % of the $16.3 million annual budget. Intergovernmental revenues in the General Fund include the local share of the state sales tax, state income tax, use tax, replacement tax and other miscellaneous state and federal grants. Sales tax collections, which make up approximately 57% of the "Intergovernmental" category, are at $1 ,964,837. The current budget forecast for sales tax is $9,430,000. Our year-to-date collections are running 15% below the same period last year. Like the home rule sales tax, the state portion is being negatively impacted by the slowed economy and closing of Walmart for remodel and expansion. Walmart, which reopened August 5, will give our sales tax a much needed boost. Our year end projections have sales taxes falling 6.3% from the prior year rather than the budgeted 7%. Based on the updated forecast I have increased the estimate by $111,000 for 2009. I will continue to closely monitor this revenue through the end of the year for any significant changes. H:\ACCT\BUDGET\Budget 2009\Quarterly & Mid-Year Review\2009 Mid-Year Review Memo - 8-11-09 COW.doc Mid-Year Budget Review August 6, 2009 Page 4 Receipts from the State's distribution of the state income tax totaled $2,342,741 at June 30th. This represents a decrease of 13.7% from the prior year. The per capita estimate for this revenue has originally been anticipated at $96.40. It is now expected to come in at just $89.00. Currently we are expecting $416,000 under what was projected for 2009. Revenue from Fines totaled $209,984 for the first six months. This represents 30% of the $699,000 budgeted for the year. We expect this revenue to come in $58,000 below budget for 2009. Circuit court fines lag the 50% benchmark at June 30th as there is a two-month delay in receiving this money from Cook County. Investment income totaled just $43,228 for the first six months, representing 10.8% of the $402,000 projected for the year. Significantly lower rates paid for short-term investments are causing this shortfall. The budget anticipated an earnings rate on surplus fund of 3.5%. Actual earnings are closer to 0.40%. Other Revenue, consisting of reimbursements and other revenues, totaled $222,646 as of June 30th. This is 43.5% of the $512,000 budgeted forthe year. We expect these revenues to fall short of our projections by $37,000 for 2009. General Fund Expenditures: The amended 2009 budget totals $41,463,209. As of June 30th the Village had recorded expenditures of $18,968,706. This represents 45.2% of budget and is consistent with previous years. Most of the departments are at or near the benchmark 50%. Only Public Representation and TV Services deviate significantly from the benchmark. The following chart illustrates General Fund expenditures as a percentage of annual budget at June 30. General Fund Expenditures as a Percent of Annual Budget Fire Public Representation Manager's Office Television Services E III C, e Cl. ., t: .. .e III c- .. C Clerk's Office Finance Comm. Dav. Human Services Police Public Works Comm & Civic Services/Misc. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Percent Public Representation expenditures totaled $82,807 through June 30th, representing 60.3% of budget. This budget is typically above the 50% benchmark as organizational memberships are paid in the beginning of the year. H:\ACCT\BUDGET\Budget 2009\Quarterly & Mid-Year Review\2009 Mid-Year Review Memo - 8-11-09 COW. doc Mid-Year Budget Review August6,2009 Page 5 Expenditures for Television Services are at 51.3% of their total budget for the year. The timing of some commodities and supplies purchases as well as contractual work caused the year to date spending to be higher than the 50% benchmark. For the past several years, total General Fund expenditures have come in anywhere from one to three percent under budget. Although we see no reason at this point to believe 2009 will be any different, to be conservative we have only reflected the amount of cuts identified by departments in the total for General Fund expenditures. The chart below shows budget to actual expenditures since 2004. A 1 % savings in expenditures for 2009 reduces the estimated deficit by over $400,000. Year Amended Budqet Actual Expenditures Variance 2004 $32,045,716 $31,835,052 0.66%) 2005 $34,269,738 $33,625,909 1.87%) 2006 $36,908,387 $36,282,681 1 .70% ) 2007 $39,470,568 $38,917,075 1 .40% ) 2008 $41,281,355 $40,534,554 1.80%) Additional discussion on several other operating and capital funds worth noting include the Capital Improvement Fund, Street Improvement Fund, and Water and Sewer Fund. CAPITAL IMPROVEMENT FUND The Capital Improvement Fund now has a dedicated revenue source (home rule sales tax) to support ongoing capital projects. In budgeting for 2009, several projects that had been deferred due to insufficient funds were reconsidered along with new projects. For the next 4 years, it was estimated that $1 million of this new revenue would go to support capital projects with the remainder going towards rebuilding fund balance. It is now projected that just $800,000 will be available in 2009 due to the drop in the home rule sales tax. The one- quarter percent home rule tax was originally budgeted to generate $1,250,000 annually. Due to slowing of the economy the home rule tax is expected to fall short of budget by $196,000. A shortfall in the home rule tax has required projects of lower priority to be deferred until the following year. STREET IMPROVEMENT CONSTRUCTION FUND This fund was created to account for the 1997 revenue enhancements that are earmarked for the street improvement program. Revenues of $1,530,000 were projected for 2009. Revenues actually received as of June 30th total $334,891, or 21.9% of budget. The entire amount of the one-quarter cent home rule sales tax earmarked for street improvement will be allocated to the street improvement construction fund. Up until 2005, a portion of the tax had been used to payoff debt service for street construction bonds. A total of $2,856,600 has been budgeted for street resurfacing and reconstruction. As of June 30th $655,337, or 23.0%, has been expended. The balance of the street resurfacing program will be completed during the second half of the year. Like the projects planned for the capital H:\ACCT\BUDGET\Budget 2009\Quarterly & Mid-Year Review\2009 Mid-Year Review Memo - 8-11-09 COW. doc Mid-Year Budget Review August 6, 2009 Page 6 improvement fund, the street program has been scaled back to a level that can be supported by the current revenue stream. WATER AND SEWER FUND Revenues through June 30th total $4,850,053, representing 38.8% of the $12.5 million budget. This is typical, as water consumption increases during the summer months. In addition, there is a two-month lag for residential billing and one-month lag for commercial properties. A milder than expected summer has reduced water sales, but strong reserves in this fund will be alble to handle the shortfall in the near term so no planned work is impacted. The amended budget for the Water and Sewer Fund for 2009 is $12.5 million. After six months, actual expenditures have totaled $3,710,666, or 29.6% of budget. Expenditures appear to be low because of capital improvements planned for later in the year. There are no material variances in expenditures expected between now and the end of the year. 2010 FORECAST The 2009 Annual Budget included a forecast budget for the year 2010 for each operating and capital project fund. The purpose of this portion of this memorandum is to bring forward any material variances in revenues/expenditures now expected for the year 2010. GENERAL FUND Exhibit 2 has been prepared to compare the original forecast numbers to our most recent estimates. The original forecast budget showed an operating deficit of $628,635 on revenues of $42,392,500 and expenditures totaling $43,021,135. Our more recent estimates now show that the deficit has increased to $2,022,135. A drop in state income tax, investment income and other economy driven revenues account for the additional shortfall. Revenues are now projected to come in at $40,938,000, $1,454,500 lower than the original forecast budget. General Fund Revenues: State Income Tax receipts are expected to come in below the original 2010 forecast by $521,000. This is based on the per capita share used for estimating this revenue falling from $99.28 to $90.00. Income taxes could be a drag on the budget in the next couple years as these revenues tend to lag behind the actual economic recovery. Investment income was reduced by $370,000 for 2010 due to lower returns on invested surplus funds. The 2010 forecast originally anticipated returns of 4.5%. Returns on the surplus funds are now estimated to be just 1.5%. The forecast for Utility Taxes for gas and electric have been lowered $221,000, from $2,124,000 to $1 ,903,000 based on the reduced estimate for 2009. We did anticipate a 3% H:\ACCTIBUDGETIBudget 20091Quarterly & Mid-Year Reviewl2009 Mid-Year Review Memo - 8-11-09 COW.doc Mid-Year Budget Review August 6, 2009 Page 7 growth to these revenues in 2010. In spite of the anticipated growth, there was still a 10% decline from the original forecast. As mentioned earlier, the Village is beginning to experience a higher than usual number of refunds from current year taxes for residential and commercial property tax appeals. As a result, the percent of Property Taxes received as compared to the levy extension was lowered from 98% to 97%. Property tax receipts have been lowered from the original 201 0 forecast by $143,000 as a result of this change. General Fund Expenditures: Except for the adjustment made to Police and Fire contributions due to the lowering of the property tax estimate, we assumed expenditures to remain consistent with the original forecast. The deficit as it stands will be addressed during the budget process set for later this fall. Directives have already gone out to the departments on the level of spending expected for 2010 that will work to lower the 2010 forecast deficit. BUDGET CALENDAR Attached as Exhibit 3 is the 2010 budget calendar as presented in the current 2009 budget document. We will anticipate moving forward with the 2010 budget process according to this calendar. If this schedule presents any conflicts, please notify me so we could revise it accordingly. Additional background information on the 2009 budget and 2010 forecast will be provided to the Board at the August 11 Committee of the Whole meeting. Please contact me if you have any questions prior to the meeting. d~C'd-- DAVID O. ERB FINANCE DIRECTOR H:\ACCT\BUDGET\Budget 2009\Quarterly & Mid-Year Review\2009 Mid-Year Review Memo - 8-11-09 cow. doc Exhibit 1 Village of Mount Prospect, Illinois General Fund - Revenues and Expenditures 2009 Mid-Year Review (a) (b) (c) (d) (e) Budget 2009 YTD Actual 2009 Variance- 2008 Amended 01101/09- Current Favorable Actual Budget 6/30/2009 Estimate (Unfavorable) Notes Revenues: Property Taxes 10,346,986 10,637,000 4,953,349 10,503,500 (133,500) A Sales Taxes - ROT Portion 10,066,919 9,319,000 1,964,837 9,430,000 111,000 B Sales Taxes - HMR Portion 1,221,967 1,250,000 218,323 1,054,000 (196,000) C Food and Beverage Tax 776,268 760,000 293,022 714,000 (46,000) Real Estate Transfer Tax 643,082 760,000 164,377 489,000 (271,000) D Telecommunications Tax 2,770,473 2,630,000 687,484 2,896,000 266,000 E Other Utility Taxes 1,987,506 2,052,000 842,891 1,845,000 (207,000) F Other Taxes 151,679 142,000 59,374 133,500 (8,500) Vehicle Licenses 1,403,190 1,405,000 1,223,634 1,405,000 0 Other Licenses, Permits, Fees 1,691,638 2,370,000 992,524 2,408,000 38,000 State Income Tax 5,326,270 5,424,000 2,342,7 41 5,008,000 (416,000) G Other Intergovernmental 1,803,622 1,507,500 583,075 1,329,000 (178,500) H Charges for Services 1,511,172 1,590,500 769,187 1,575,000 (15,500) Fines and Forfeits 720,351 699,000 209,984 641,000 (58,000) Investment Income 256,845 402,000 43,228 64,000 (338,000) Other Revenue 405,090 512,000 222,646 475,000 (37,000) Total Revenues 41,083,058 41,460,000 15,570,676 39,970,000 (1,490,000) Expenditures Public Representation 163,821 137,304 82,807 133,574 3,730 Village Manager's Office 2,828,498 2,875,216 1,356,773 2,849,168 26,048 Television Services Division 193,430 191,413 98,147 187,192 4,221 Village Clerk's Office 198,860 217,076 94,032 212,482 4,594 Finance Department 1 ,584,722 1,594,795 762,546 1,578,803 15,992 Community Development Dept. 2,170,474 2,503,720 1,023,375 2,471,083 32,637 Human Services Dept. 838,999 1,210,291 416,375 1,205,860 4,431 Police Department 13,883,560 14,383,522 6,717,219 14,317,226 66,296 Fire Department 11,068,222 11,379,031 5,233,250 11,324,216 54,815 Public Works Department 6,981,997 6,981,652 3,043,177 6,7 43,278 238,374 PW - Storm Expenses 194,622 0 0 0 0 Community and Civic Services 381,889 434,380 118,210 393,827 40,553 Miscellaneous 45,460 46,500 22,795 46,500 0 Total Expenditures 40,534,554 41,954,900 18,968,706 41,463,209 491,691 J Excess of Revenues over Expend. 548,504 ( 494,900) (3,398,030) (1,493,209) (998,309) Other Financing Sources/Uses Transfers In 0 0 0 0 0 Transfers Out (822,274) 0 0 0 0 Total Other Financing Uses (822,274) 0 0 0 0 Excess of Revenues over Expend. and Other Financing Uses: (273,770) (494,900) (3,398,030) (1,493,209) (998,309) K 1 of 2 Mid-Year Review - 2009 Exhibit 1 Village of Mount Prospect, Illinois General Fund - Revenues and Expenditures 2009 Mid-Year Review Notes A Property taxes are being impacted by residential and commercial assessment appeals. Prior year appeals are deducted from current year taxes due to the timing of when the appeals case is settled. We have lowered estimated receipts for property taxes in future years from 98% to 97% based on this new trend. B Although the 1 % state portion sales tax shows an increase from budget, receipts are actually anticipated to drop 6.3% from the prior year due to the slowing economy. C The home rule sales tax is expected to drop 13.8% from the prior year. This is a greater percent drop than for the state portion sales tax as the home rule tax is not applicable to food, drugs or titled vehicles. D The housing slump continues to be a drag on this revenue source. Activity in both the commercial and residential sectors have been impacted by the housing market and tight credit. E The telecommunication tax has been volatile over the past couple years since the State of Illinois has taken over the responsibility for collecting and distributing this tax. The original 2009 budget was a conservative estimate based on the uncertainty of the flow of tax receipts. We continue to monitor this revenue source. F The other utility taxes consist of the gross receipts gas and electric tax and the gas use tax. Each are showing a drop from prior year through the first five months of 2009. The mild summer will likely continue to impact the receipt of these taxes moving forward. G State income taxes are having the largest impact to the General Fund revenues in 2009. The original budget was based on Illinois Municipal League estimates of $96.40 per capita. The revised estimate is now $89.00. This is a drop of 7.7%. The IML last updated the per capita income tax figure in April 2009. H Other intergovernmental revenues include the use tax and personal property replacement tax. The Illinois Municipal League estimate for both of these have been lowered from the original projection made in late 2008. The second largest impact to General Fund revenues comes from declines in interest income receipts. It was estimated that the Village would earn 3.5% on reserves invested in short-term CD's and money market funds. In 2009, the Village is earning just 0.4%. The rate of return is not expected to improve much by year's end. J Departments have identified over $491,000 in cuts from their 2009 budget based on year end projections made earlier this year. These were based on a decline in General Fund revenue. Since that time, revenues have fallen further resulting in the current budget deficit. K The total deficit for 2009 is projected to be $1.49 million. Of this amount, $998,000 is due to current year adjustments to revenues and expenditures. Prior year carry-overs of $495,000 account for the balance of the deficit. The carry-over amount is a planned drawdown on fund balance for items carried over from the prior year. 2 of 2 Mid-Year Review - 2009 Exhibit 2 Village of Mount Prospect, Illinois General Fund - Revenues and Expenditures 2010 Forecast (a) (b) (c) (d) (e) 2009 2010 Forecast Current Original Current Increase Percent Projections Forecast Forecast (Decrease) Change Notes Revenues: Property Taxes 10,503,500 11,235,000 11,092,000 (143,000) (1.27) A Sales Taxes - ROT Portion 9,430,000 9,575,000 9,620,000 45,000 0.47 Sales Taxes - HMR Portion 1,054,000 1,265,000 1,246,000 ( 19,000) (1.50) Food and Beverage Tax 714,000 790,000 728,000 (62,000) (7.85) Real Estate Transfer Tax 489,000 800,000 650,000 (150,000) (18.75) B Telecommunications Tax 2,896,000 2,640,000 2,900,000 260,000 9.85 C Utility Taxes 1,845,000 2,124,000 1,903,000 (221,000) (10.40) D Other Taxes 133,500 146,000 139,000 (7,000) (4.79) Vehicle Licenses 1,405,000 1,405,000 1,405,000 0 0.00 Other Licenses, Permits, Fees 2,408,000 2,101,000 1,985,000 (116,000) (5.52) State Income Tax 5,008,000 5,586,000 5,065,000 (521,000) (9.33) E Other Intergovernmental 1,329,000 1,424,500 1,345,000 (79,500) (5.58) Charges for Services 1,575,000 1,616,000 1,602,000 (14,000) (0.87) Fines and Forfeits 641,000 699,000 642,000 (57,000) (8.15) Investment Income 64,000 500,000 130,000 (370,000) (74.00) F Other Revenue 475,000 486,000 486,000 0 0.00 Total Revenues 39,970,000 42,392,500 40,938,000 (1,454,500) (3.43) Expenditures Public Representation 133,574 137,599 137,599 0 0.00 Village Manager's Office 2,849,168 2,858,352 2,858,352 0 0.00 Television Services Division 187,192 197,551 197,551 0 0.00 Village Clerk's Office 212,482 218,774 218,774 0 0.00 Finance Department 1,578,803 1,625,945 1,625,945 0 0.00 Community Development Dept. 2,471,083 2,336,234 2,336,234 0 0.00 Human Services Dept. 1,205,860 1,163,427 1,163,427 0 0.00 Police Department 14,317,226 14,963,006 14,932,006 (31,000) (0.21) G Fire Department 11,324,216 11,843,097 11,813,097 (30,000) (0.25) G Public Works Department 6,743,278 7,203,622 7,203,622 0 0.00 Community and Civic Services 393,827 426,528 426,528 0 0.00 Miscellaneous 46,500 47,000 47,000 0 0.00 Total Expenditures 41,463,209 43,021,135 42,960,135 (61,000) (0.14) Excess of Revenues over Expend. (1,493,209) (628,635) (2,022,135) (1,393,500) Other Financing Sources/Uses Transfers In 0 0 0 0 Transfers Out 0 0 0 0 Total Other Financing Uses 0 0 0 0 Excess of Revenues over Expend. and Other Financing Uses: (1,493,209) (628,635) (2,022,135) (1,393,500) H 1 of 2 General Fund Forecast 2010 - Mid-Year Review Exhibit 2 Village of Mount Prospect, Illinois General Fund - Revenues and Expenditures 2010 Forecast Notes A Prior year property taxes were reduced based on credits being given on property tax appeals. Estimated receipts were lowered from 98% to 97% of the levy extension amount. S Projection anticipates an improving housing and commercial market in 2010, but still falling below the original estimate for 2010 by 19.0%. C Projection based on 2009 estimate. No growth anticipated in 2010. D Projection based on 2009 estimate. 3.0% growth from prior year results in 10.4% decrease in the forecast. E Estimate the per capita tax to be $90.00, up from the projected 2009 amount of $89.00. This is an increase of 1 % from the prior year, but still a 9.3% decrease in the forecast. F Estimate that earnings on general Village reserves will increase from 0.4% to 1.5% for 2010. The 2010 forecast anticipated returns of 4.5%. G Contributions to the Police and Fire pension funds are based on property tax receipts expected during the year. Since the prior year property taxes were reduced for the Police and Fire pension by $31,000 and $30,000 respectively, an equal amount was reduced from the contribution expense. H Typically annual savings from the annual budget range from 1-2%. To be conservative, no assumption were made for the 2010 forecast except for Police and Fire pension contributions. If the Village were to come in 1.5% below budget, there would be a savings of $645,000. It is expected that this deficit will be addressed through adjustments made during the 2010 budget review process 2 of 2 General Fund Forecast 2010 - Mid-Year Review Exhibit 3 VILLAGE OF MOUNT PROSPECT BUDGET CALENDARS 2009 and 2010 2009 2010 DATE ACTION DATE 3/7/08 Capital Improvement Plan (CIP) Worksheets forwarded to Department 3/6/09 Directors 3/21/08 Completed Computer CIP Worksheets returned to Finance Department 3/20/09 4/4/08 Remaining CIP Worksheets returned to Finance Department 4/3/09 4/29/08 Prior Year Budget Wrap-up and Preliminary Q1 Review 4/28/09 5/12/08 Department CIP reviews with Village Manger and Finance Director 5/11/09 to 5/16/08 to 5/15/09 5/23/08 Complete Proposed CIP Amounts 5/22/08 6/6/08 Deliver Proposed CIP to Village Board and Finance Commission 6/5/09 6/26/08 Review Proposed CIP with Finance Commission 6/25/09 7/8/08 Committee of the Whole - CIP Review Session 7/14/09 7/15/08 Acceptance of Proposed CIP at Village Board Meeting 7/21/09 7/18/08 Budget Kickoff Meeting (Staff) and Budget Worksheets forwarded to 7/10/09 Department Directors 7/31/08 Departmental Staffing Request Submittals Due to Village Manager 7/17/09 8/12/08 Committee of the Whole - Mid-Year Budget Review and Pre-Budget 8/11/09 Workshop 8/8/08 CIP available for distribution 8/7/09 8/8/08 Completed Budget Worksheets returned to Finance Department 8/7/09 Exhibit 3 VILLAGE OF MOUNT PROSPECT BUDGET CALENDARS 2009 and 2010 2009 DATE ACTION 2010 DATE 8/8/08 Revenue Estimates completed by Finance Department 8/7109 Personnel Budget Review 8127/09 9/2108 to 9/5/08 Department Budget reviews with Village Manager and Finance Director 8/31/09 to 9103/09 9/12108 Complete Proposed Budget Amounts 9/16/09 10/3/08 Deliver Proposed Budget to Village Board and Finance Commission 1019109 10/3/08 Proposed Budget available for public inspection at the Village Clerk's 1019109 Office and the Mount Prospect Public Library 1019108 Review of Proposed Budget with the Finance Commission 10/15/09 10/16/08 10/22/09 10/23/08 10/29109 10/28/08 Committee of the Whole - First Budget Hearing (7:00pm - 10:00pm) 10/27/09 Overview, Departmental Presentations 11/11108 Committee ofthe Whole - Second Budget Hearing (7:00pm - 10:00pm) 11/10109 Departmental Presentations 11/25/08 Committee of the Whole - Third Budget Hearing (7:00pm - 10:00pm) 11/24/09 (If Necessary) 12/2/08 Truth in Taxation Public Hearing 12/1 109 12/2/08 First Reading of Proposed Budget Ordinance at Village Board Meeting 12/1 109 12/16/08 Public Hearing and Second Reading of Proposed Budget Ordinance at 12/15/09 Village Board Meeting 1/16/09 Approved Budget available for distribution 1/15/1 0