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HomeMy WebLinkAboutTab 4: 2013 Proposed Property Tax LevyVillage of Mount Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: MICHAEL E. JANONIS, VILLAGE MANAGER FROM: FINANCE DIRECTOR DATE: APRIL 18, 2013 SUBJECT: PROPOSED 2013 PROPERTY TAX LEVY The Forecast Budget for 2014 included a projected amount for property taxes to be derived from the 2013 property tax levy. Included with this memo for your review is the proposed 2013 levy. Also included for reference are the final 2012 levy and a levy history for the period 2008 -2012. Below are a few points on each of these items to help facilitate discussion at the April 23 financial planning workshop. Final 2012 Levy Corporate Levy - The total extended levy for 2012 was $16,477,872. This represented an increase of $625,518, or 3.95% from the prior year. The levy is set for the purpose of funding refuse collection, debt service, police and fire pensions and general municipal services. The general portion of the levy increased by 4.4% while the refuse portion increased 3.0 %. The portions of the levy for police and fire pensions both increased by 5.1% while the debt service was essentially flat from the prior year. Increases to the tax levies for 2007 through 2011 are shown below. 2007 3.76% 2008 3.26% 2009 4.99% 2010 0.00% 2011 4.33% Special Service Area #5 Levy — The total extended levy for 2012 was $1,545,773. There was no increase in the special service levy from the prior year. This levy has remained at this level since before 1997. Proposed 2013 Levy Corporate Levy - This proposed levy for 2013 reflected in the 2014 Forecast Budget shows an increase of 4.74% from the 2012 levy and totals $17,258,573. This proposed levy is showing an adjustment for debt service based on the repayment schedule for each bond. The annual required contribution for public safety pensions are projected to increase by 7.0% so the levy amount is being increased accordingly. The refuse portion of the levy is increased by 3.0% while the general portion increased 4.7 %. The total rate increase of the proposed 2013 levy of 4.74% falls within the self- imposed limits of between 3.5% and 5.0 %. Special Service Area #5 Levy — The proposed levy for 2013 again will be $1,545,773. The final year of the levy for SSA #5 is 2017. Proposed 2012 Property Tax Levy April 18, 2013 Page 2 of 2 Property Tax Lew History A five -year history of the property tax levy is included with this memo that shows the total annual levy, proportional share of each component of the levy and percent increase in the levy, by component and in total. The average annual increase in the levy from 2008 -2012 is 3.31%, below the self- imposed limits of between 3.5% and 5.0 %. The portion of the levy allocated to general municipal services remains below 2009 levels. Increases to the required contribution for public safety pensions account for drop in the general allocation. This information should provide a good stepping -off point for discussion at the financial planning workshop on April 23. A more detailed presentation on the proposed property tax levy for 2013 will be made at that time. Let me know if you have any questions. David O. Erb Finance Director DOE/ I: \Property Taxes \2012 Levy\April 2013 Workshop - Proposed 2013 Levy.docx VILLAGE OF MOUNT PROSPECT FINAL 2012 PROPERTY TAX LEVY VILLAGE CORPORATE General Corporate Fund Refuse Fund Police Pension Fund Firefighters' Pension Fund Debt Service Funds Series 2009 Series 2009B Series 2009C Series 2011 B Series 2012 Total Village SPECIAL SERVICE AREA NO. 5 Net 2012 2012 Levy Abatement Levy 2% Provision Total Loss and 2012 Costs Extension 7,700,264 0 7,700,264 154,005 7,854,269 1,856,575 0 1,856,575 37,132 1,893,707 2,606,583 45,721 2,560,862 51,217 2,612,079 2,334,443 40,947 2,293,496 45,870 2,339,366 417,263 0 417,263 8,345 425,608 377,850 0 377,850 7,557 385,407 135,023 47,258 87,765 1,755 89,520 167,386 0 167,386 3,348 170,734 693,315 0 693,315 13,866 707,181 16,288,702 133,926 16,154,776 323,096 16,477,872 SSA #5 1,515,464 0 1,515,464 30,309 1,545,773 INCREASE /(DECREASE) FROM PRIOR YEAR 2011 2012 % Change Village Corporate 15,852,354 16,477,872 3.95% Special Service Area No. 5 1,545,773 1,545,773 0.00% Total 17,398,127 18,023,645 3.60% H:\ACCT\BUDGET\Budget 2013 \Q1 and Mid -Year Review \Q1 \Proposed 2013 Levy.xlsx VILLAGE OF MOUNT PROSPECT PROPOSED 2013 PROPERTY TAX LEVY VILLAGE CORPORATE General Corporate Fund Refuse Fund Police Pension Fund Firefighters' Pension Fund Debt Service Funds Series 2009 Series 2009B Series 2009C Series 2011 B Series 2012 Total Village SPECIAL SERVICE AREA NO. 5 SSA #5 Net 2013 2013 Levy Abatement Levy 2% Provision Total Loss and 2013 Costs Extension 8,058,547 0 8,058,547 161,171 8,219,718 1,912,272 0 1,912,272 38,245 1,950,517 2,789,044 46,832 2,742,212 54,844 2,797,056 2,497,854 41,942 2,455,912 49,118 2,505,030 417,263 0 417,263 8,345 425,608 380,725 0 380,725 7,615 388,340 160,023 47,258 112,765 2,255 115,020 786,378 0 786,378 15,728 802,106 54,095 0 54,095 1,082 55,177 17,056,201 136,032 16,920,169 338,404 17,258,573 1,51 5,464 0 1,51 5,464 30,309 1,545,773 INCREASE /(DECREASE) FROM PRIOR YEAR Village Corporate Special Service Area No. 5 Total 2012 2013 % Change 16,477,872 17,258,573 4.74% 1,545,773 1,545,773 0.00% 18,023,645 18,804,346 4.33% H:\ACCT \BUDGET\Budget 2013 \Q1 and Mid -Year Review \Q1 \Proposed 2013 Levy.xlsx Village of Mount Prospect Property Tax Levy History 2008-2012 Average Increase in Total Levy - 2008 -2012 Year by Year Increase to Tax Levy 5.50% - -- -- - -- - - -- - - - -- -- -- -- - 5.00% -- - - - - -- - - -- - - - -- - -- 4.50% - - - - -- - - - - - - - - - - - -- -- - -. -.._ 4.00% - - -- - - -- - - - -- - -- -- - - - -- - - -- 3.50% - - - - - -- - -- -- - - - - -- - - -- - - - - - -- - -- -- 3.00% -- - -- -- - - - -- - ---- 2.50% - - - -- - - - -- -- - - -- -- - -- 2.00% - - - -- - -- - - -- - -- 1.50% - -- - - -. - - -- .. - -- - -- -- - -- - - - - -- - - - -- 1.00% .._ _- - - - - -- -- - 0.50% - - - -- - - -- - - - - -- -- - - - - -- -- - -- 0.00% - -- - - -- -- - - -- _ -- --- - 2012 3.31% H:WCCT \BUDGET\Budget 2013 \Q1 and Mid -Year Review \Q1 \Proposed 2013 Levy.xlsx 2008 2009 2010 2011 Increase to Tax Levy 2008 2009 2010 2011 2012 Total Annual Levy General Corporate 7,772,448 8,044,484 6,921,545 7,521,422 7,854,269 Refuse 1,785,000 1,785,000 1,785,000 1,838,550 1,893,707 Police Pension 1,551,518 2,055,987 2,516,878 2,484,780 2,612,079 Fire Pension 1,531,040 1,767,533 2,183,477 2,225,356 2,339,366 Debt Service 1,832,263 1,541,634 1,787,738 1,782,246 1,778,451 Total 14,472,269 15,194,638 15,194,638 15,852,354 16,477,872 % of Total Levy General Corporate 53.7% 52.9% 45.6% 47.4% 47.7% Refuse 12.3% 11.7% 11.7% 11.6% 11.5% Police Pension 10.7% 13.5% 16.6% 15.7% 15.9% Fire Pension 10.6% 11.6% 14.4% 14.0% 14.2% Debt Service 12.7% 10.1% 11.8% 11.2% 10.8% Total 100.0% 100.0% 100.0% 100.0% 100.0% % Increase from PY General Corporate 0.0% 3.5% - 14.0% 8.7% 4.4% Refuse -13.6% 0.0% 0.0% 3.0% 3.0% Police Pension 8.0% 32.5% 22.4% -1.3% 5.1% Fire Pension 8.0% 15.4% 23.5% 1.9% 5.1% Debt Service 38.6% -15.9% 16.0% -0.3% -0.2% Total 3.26% 4.99% 0.00% 4.33% 3.95% Average Increase in Total Levy - 2008 -2012 Year by Year Increase to Tax Levy 5.50% - -- -- - -- - - -- - - - -- -- -- -- - 5.00% -- - - - - -- - - -- - - - -- - -- 4.50% - - - - -- - - - - - - - - - - - -- -- - -. -.._ 4.00% - - -- - - -- - - - -- - -- -- - - - -- - - -- 3.50% - - - - - -- - -- -- - - - - -- - - -- - - - - - -- - -- -- 3.00% -- - -- -- - - - -- - ---- 2.50% - - - -- - - - -- -- - - -- -- - -- 2.00% - - - -- - -- - - -- - -- 1.50% - -- - - -. - - -- .. - -- - -- -- - -- - - - - -- - - - -- 1.00% .._ _- - - - - -- -- - 0.50% - - - -- - - -- - - - - -- -- - - - - -- -- - -- 0.00% - -- - - -- -- - - -- _ -- --- - 2012 3.31% H:WCCT \BUDGET\Budget 2013 \Q1 and Mid -Year Review \Q1 \Proposed 2013 Levy.xlsx 2008 2009 2010 2011 Increase to Tax Levy