VILLAGE OF MAYWOOD FINANCE DEPARTMENT 40 MADISON STREET, MAYWOOD, ILLINOIS 60153, 708-450-6320 (WATER BILLING) 708-450-6310 (FINANCE DEPT.) To: ie Norfleet, Village Manager FROM: _ Lanya Satchell, Director of Finance DATE: November 15, 2018 RE: 2018 Property Tax Levy In preparation of the recommendation for the 2018 Tax Levy, consideration was given to the level of service necessary to successfully operate, equalized assessed evaluation, and residents ability to pay. Committed to improving the level of service throughout the Village, a 5% Increase to the 2018 Tax Levy is necessary to adequately fund the Fiscal Year 2020 Operating Budget (May 1, 2019 - April 30, 2020). Resulting from an increased equalized assessed evaluation of over 13%, the 5% proposed increase will not result in an increase to resident’s tax bill thus affording them the ability to pay. In addition to these factors, a more detailed outline has been provided to further illustrate the need for an increase to the Tax Levy. Based on all these combined, it’s recommended that the Corporate Fund portion of the tax levy be increased by 5% ($628,018). Items that impacted my recommendation for an increase to the 2018 Tax Levy are as follows: © Collective bargaining agreements, automatic wage increases payable to over 90% of the Village employees are required and account for a little less than 50% of the recommended 5%. ‘* Due to the Volume of claims, over the past year the Village can a to medical insurance/benefits. * Machinery, Vehicle and Equipment costs, both the Police and Fire Departments need additional equipment to efficiently operate the departments. The Police Department is requesting eight patrol vehicles and the fire Department is requesting a ladder truck both requests combined total more than the 5% increase to the 2018 Property Tax Levy. © Infrastructure — Local Share, the Village continues to apply for grants to assist with infrastructure improvements throughout the Village. Once awarded, the Village must be prepared to pay a portion of the grant (local share). In many cases these grants have a 60/40 split whereby the Village is required to pay 40% of the total project. ipate an increase* Fred Hampton Aquatic Center, having experienced tremendous support from the residents with the use of the pool there is a need to make improvements to the center. ‘* Fund Deficit Reductions, over the past several years all Funds have been operating with a deficit fund balance. This deficit is the result of having accrued more expenses during the fiscal year than revenues received. * Cash Flow, in an effort to pay bills more timely we need additional revenue to match the expenses. ‘As stated, the items outlined are only a few of the issues and concerns throughout the Village; in an effort to begin to address these concerns an increase to the 2018 Tax Levy by 5% i required. While the 5% increase does not fully fund the items listed, discussion will be had during the budget cycle to determine what adjustments will be made to fund the balance of the projects previously mentioned. Other Funds that impact the tax levy are the Recreation Fund, Fire Pension Fund, and Police Pension Fund. It's my recommendation that the Recreation Fund receive an increase of $67,500 for a total of $150,000. This recommendation is based on the utility of the Fund which is primarily for the maintenance and operation of the pool. Recommended levies for the Police and Fire Pension Funds are impacted by actuarial studies in accordance with the Illinois Pension Code. As such, current actuarial studies for both Police and Fire Pensions are included for your review. The Village’s Tax Levy Requirements for the Fire Pension has increased $248,665 from the prior year and the Tax Levy Requirement for Police Pension has decreased $147,831 from the prior year. These requirements are based on the unfunded liability, which represents monies that should've been in the fund and demographic factors that have changed to include the hiring of new employees, employees retiring or becoming disabled and salary increases. The table below provides detail on the recommended Tax Levy for 2018: Fund Name Tax Levy - 2017 Tax Levy — 2018 Corporate Fund $ 12,560,363.00 $ 13,188,381.00 Recreation Fund $ 82,500.00 $ 150,000.00 Police Pension Fund $ 4,136,079.00 $ 3,988,248.00 Fire Pension Fund $_2,691,888.00 $ 2,940,553.00 TOTAL $19,470,830.00 $ 20,267,182.00 In a separate levy, the estimated property taxes for debt service and public building commission leases for 2018 are $2,752,000 down $1,200 from previous year.Ooz‘vo'ez_$ _LES'TZS‘Ec_$ EG6'SGE'EC $ GBE‘OLZ'EC $ _9BL'vHT'EC $ ZBT'eTO'EZ _$ _OER'Szz‘zz$ (000'¢sz'z, (000°2s¢Z (000°ZS2'% 000'2sL'z 000°2sz'z 000'7sL'z oor'pse'z oor'ses‘oz $ Les‘eac'oz$ ~=Eas'eva'or $ «= aBE'BTS‘OZ $ gac'tee‘oz $ zat‘c9z‘oz ~~ $ | OFB‘OLH‘GTS essovez? $ ESSOVeZ $ ESSOrEZ § ESSOrEZ $ ESSOVEZ $ EGSOVET S| s88‘Teo'7 Breese =—$ ) BHz'BRO'E = SS RHT'BBG'E «—$ | BHZ'BRO'E «$= Bbt'BBG'E «—$ ~— Bbe'sRE'E S| 6L0'9ET'y 000‘0sT $ 000'0ST $ o00‘0st S$ 000‘0ST S$ 000'0ST $ 000‘0ST $ | oos'z8 G6e'OTS'ET $ 96L'069'EL $ ZEr'sOS'ET $ BBG‘GED'er $ sRG‘eTE’Er $ 8e‘set'er $| E9e‘O9S'zT geo'ssz't =$ «CEDOETT «6$ —GzB'DOO'T «$= (Szz'6l8 $ Teo'ese $ sto'e79 $ | cto ANTI XVL 9607 %6. 48 96. %9. %S. 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