HomeMy WebLinkAbout2d. 2010 Property Tax Scenarios
INTEROFFICE MEMORANDUM
Village of Mount Prospect
Mount Prospect, Illinois
TO:
MICHAEL E. JANONIS, VILLAGE MANAGER
FROM:
FINANCE DIRECTOR
DATE:
APRIL 23, 2010
SUBJECT:
2010 PROPERTY TAX LEVY SCENARIOS
Included with this memo are several scenarios for the 2010 property tax levy that will be used to
facilitate discussion at our April 27th workshop. Also included for reference is the actual 2009 tax
levy summary. As mentioned in the workshop cover memo, these scenarios are not intended to be
all-inclusive for consideration for the levy, but only meant to be used to kick off discussion. Below
are just a few points on each levy scenario with a more detailed explanation to be provided at the
meeting.
2009 Actual Levv
The total extended levy for 2009 was $15,194,638. The increase from the prior year was $722,367,
or 4.99%. Initially, the total proposed 2009 levy increase as originally presented was 9.89%,
primarily due to projected increases to the public safety pension levies. Several actions were taken
to bring the levy down to its final approved amount. First, a refunding of the 2001 debt was done to
take advantage of the low market interest rates. Savings that resulted from the refunding were front
loaded providing for a reduction of $316,000 in the 2009 levy. Also, the levy for public safety
pensions was lowered a combined $383,000 by using General Fund reserves to meet the
contribution requirements. Finally, the levies for the General and Refuse Funds were held flat from
the prior year keeping $328,000 off the final tax levy.
2010 Levv - Scenario One
This scenario for the 2010 levy limits the increase from the prior year to 5.0%. The total levy
resulting from this scenario is $15,954,362. The levy is adjusted for the debt service and public
safety pensions as required. The Refuse Fund portion of the levy is held flat while the General
Fund portion of the levy is reduced by $170,800. The reduction in the General Fund levy was
necessary to account for growth in the other areas of the levy. The impact to the 2011 General
Fund budget as a result of this scenario is a reduction in revenue of $171 ,000.
2010 Levv - Scenario Two
This scenario for the 2010 levy provides for the increase in the public safety pension and debt
service levies, but holds flat the levies for the General and Refuse Funds. The percent increase
from the prior year is 6.15% with the total levy becoming $16,128,578. The two-year impact to the
General Fund from holding the levy flat for a second year is roughly $516,000. This amount is
cumulative each subsequent levy year.
2010 Property Tax Levy Scenarios
April 23, 2010
Page 2 of 2
2010 Levv - Scenario Three
This scenario for the 2010 levy provides for typical increases to all areas of the levy. The General
and Refuse Fund portions of the levy are permitted to increase by 3.5% and 3.0% respectively while
the public safety pension and debt service levies increase their required amounts. The percent
increase from the prior year resulting from this scenario is 8.36% with the total levy becoming
$16,465,164. The figures represented in the 2011 General Fund forecast budget utilize this
scenario.
Obviously there will be other factors to consider before arriving at the final levy amount for 201 O. I
feel these scenarios provide a good stepping-off point for our discussion on the 27th. Let me know
if you have any questions.
0b~cY cc.
David O. Erb
Finance Director
DOE/
1:\Property Taxes\2010 Levy\April Workshop - Scenarios.doc
2009 Final Property Tax Levy
VILLAGE OF MOUNT PROSPECT AND THE
MOUNT PROSPECT PUBLIC LIBRARY
SUMMARY OF 2009 PROPERTY TAX LEVY
2%
Net Provision Total
2009 2009 Loss and 2009
Levy Abatement Levv Costs Extension
VILLAGE OF MOUNT PROSPECT
General Corporate Fund 7,886,749 0 7,886,749 157,735 8,044,484
Refuse Fund 1,750,000 0 1,750,000 35,000 1,785,000
Police Pension Fund 2,015,674 0 2,015,674 40,313 2,055,987
Firefighters' Pension Fund 1,732,875 0 1,732,875 34,658 1,767,533
Debt Service Funds
Series 2003 (Ord. 5301) 912,058 0 912,058 18,241 930,299
Series 2009 (Ord. 5724) 417,263 0 417,263 8,345 425,608
2009B 99,440 0 99,440 1,989 101,429
2009C 127,146 44,501 82,645 1,653 84,298
Total Village 14,941,205 44,501 14,896,704 297,934 15,194,638
MOUNT PROSPECT PUBLIC LIBRARY
Library Operations 7,250,248 0 7,250,248 145,005 7,395,253
Library Debt Service 1,632,178 0 1,632,178 32,644 1,664,822
Total Library 8,882,426 0 8,882,426 177,649 9,060,075
TOTAL - VILLAGE OF MOUNT PROSPECT
AND PUBLIC LIBRARY 23,823,631 44,501 23,779,130 475,583 24,254,713
SPECIAL SERVICE AREA NO.5 1,515,464 0 1,515,464 30,309 1,545,773
Increase Over Prior Year
2008
14,472,271
2009
15,194,638
4.99%
Scenario One
2010 Property Tax Levy
5.0% Increase
VILLAGE OF MOUNT PROSPECT AND THE
MOUNT PROSPECT PUBLIC LIBRARY
SUMMARY OF 2010 PROPERTY TAX LEVY
VILLAGE OF MOUNT PROSPECT
General Corporate Fund
Refuse Fund
Police Pension Fund
Firefighters' Pension Fund
Debt Service Funds
Series 2003 (Ord. 5301)
Series 2009 (Ord. 5724)
2009B
2009C
Total Village
MOUNT PROSPECT PUBLIC LIBRARY
Library Operations
Library Debt Service
Total Library
TOTAL - VILLAGE OF MOUNT PROSPECT
AND PUBLIC LIBRARY
SPECIAL SERVICE AREA NO.5
2010
Levy
Abatement
Net
2010
Levv
o
o
o
o
7,715,949
1,750,000
2,362,746
2,060,151
2%
Provision
Loss and
Costs
154,319
35,000
47,255
41 ,203
18,241
8,345
6,712
1,755
312,830
o
o
o
312,830
30,309
Total
2010
Extension
7,870,268
1,785,000
2,410,001
2,101,354
930,299
425,608
342,312
89,520
15,954,362
o
o
o
o
o
o
7,715,949
1,750,000
2,362,746
2,060,151
912,058
417,263
335,600
135,023
15,688,789
o
o
o
47,258
47,258
912,058
417,263
335,600
87,765
15,641,532
o
o
o
15,641,532
o
1,515,464
15,954,362
1,545,773
o
o
o
15,688,789
47,258
1,515,464
Increase Over Prior Year
2009
15,194,638
2010
15,954,362
5.00%
VILLAGE OF MOUNT PROSPECT
General Corporate Fund
Refuse Fund
Police Pension Fund
Firefighters' Pension Fund
Debt Service Funds
Series 2003 (Ord. 5301)
Series 2009 (Ord. 5724)
2009B
2009C
Total Village
MOUNT PROSPECT PUBLIC LIBRARY
Library Operations
Library Debt Service
Total Library
Scenario Two
2010 Property Tax Levy
Adjustments to Pensions and Debt Service Only
VILLAGE OF MOUNT PROSPECT AND THE
MOUNT PROSPECT PUBLIC LIBRARY
SUMMARY OF 2010 PROPERTY TAX LEVY
2010
Levv
Abatement
7,886,749
1,750,000
2,362,746
2,060,151
912,058
417,263
335,600
135,023
15,859,589
o
o
o
47,258
47,258
o
o
o
TOTAL - VILLAGE OF MOUNT PROSPECT
AND PUBLIC LIBRARY
SPECIAL SERVICE AREA NO.5
15,859,589
47,258
1,515,464
Net
2010
Levv
o
o
o
o
7,886,749
1,750,000
2,362,746
2,060,151
2%
Provision
Loss and
Costs
157,735
35,000
47,255
41 ,203
18,241
8,345
6,712
1,755
316,246
o
o
o
316,246
30,309
Total
2010
Extension
8,044,484
1,785,000
2,410,001
2,101,354
930,299
425,608
342,312
89,520
16,128,578
o
o
o
o
o
o
912,058
417,263
335,600
87,765
15,812,332
o
o
o
15,812,332
o
1,515,464
16,128,578
1,545,773
Increase Over Prior Year
2009
15,194,638
2010
16,128,578
6.15%
Scenario Three
2010 Property Tax Levy
Normal Increases to General and Refuse Fund Levies,
Debt Service and Pensions
VILLAGE OF MOUNT PROSPECT AND THE
MOUNT PROSPECT PUBLIC LIBRARY
SUMMARY OF 2010 PROPERTY TAX LEVY
2010
Levv
Abatement
VILLAGE OF MOUNT PROSPECT
General Corporate Fund
Refuse Fund
Police Pension Fund
Firefighters' Pension Fund
Debt Service Funds
Series 2003 (Ord. 5301)
Series 2009 (Ord. 5724)
2009B
2009C
Total Village
8,162,785
1,802,500
2,362,746
2,060,151
913,508
417,263
335,600
135,023
16,189,576
o
o
o
47,258
47,258
MOUNT PROSPECT PUBLIC LIBRARY
Library Operations
Library Debt Service
Total Library
o
o
o
TOTAL - VILLAGE OF MOUNT PROSPECT
AND PUBLIC LIBRARY
16,189,576
47,258
SPECIAL SERVICE AREA NO.5
1,515,464
1,545,773
Increase Over Prior Year
Net
2010
Levy
o
o
o
o
8,162,785
1,802,500
2,362,746
2,060,151
913,508
417,263
335,600
87,765
16,142,318
o
o
o
16,142,318
o
1,515,464
2009
15,194,638
2%
Provision
Loss and
Costs
163,256
36,050
47,255
41 ,203
18,270
8,345
6,712
1,755
322,846
o
o
o
322,846
30,309
2010
16,465,164
Total
2010
Extension
8,326,041
1,838,550
2,410,001
2,101,354
931,778
425,608
342,312
89,520
16,465,164
o
o
o
o
o
o
16,465,164
8.36%