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HomeMy WebLinkAboutII. COW Agenda Item Draft Minutes 08/11/2009 l;;;~!isiI8~~ ~ //"~N~90 \ /.f/! ,~ 'Ii:. ""~;lnll.IY"(!I"Il.IJltdSl'.d ;/' '~; ,~ , ~,~ -'- COMMITTEE OF THE WHOLE AUGUST 11,2009 I. CALL TO ORDER The meeting was called to order at 7: 1 0 p.m. in the Village Board Room of Village Hall, 50 South Emerson Street, by Mayor Wilks. Present at the meeting were: Trustees Paul Hoefert, Arlene Juracek, John Korn, John Matuszak, Steven Polit and Michael Zade!. Staff present included Village Manager Michael Janonis, Assistant Village Manager David Strahl, Finance Director David Erb, Community Development Director William Cooney, Public Works Director Glen Andler, Public Works Deputy Director Sean Dorsey, Fire Chief Michael Figolah, Police Chief John Dahlberg, Deputy Police Chief Michael Semkiu and Commander Timothy Janowick. II. ACCEPTANCE OF MINUTES OF THE COMMITTEE OF THE WHOLE MEETING OF JULY 14. 2009. Motion made by Trustee Zadel seconded by Trustee Juracek to approve the minutes. Trustee Matuszak requested a correction to the minutes regarding a typo on page three. Minutes were approved with modification. Trustee Hoefert and Mayor Wilks abstained. III. CITIZENS TO BE HEARD None IV. 2009 MID-YEAR REVIEW AND UPDATE OF THE 2010 BUDGET FORECAST Finance Director David Erb provided a quarterly review to the Village Board regarding the Village's finances as to date. He provided a review of the General Fund for 2009 and other funds within the Village budget. He also provided a review of the 2010 General Fund forecast and the potential impact of the General Fund regarding fund balance and property tax scenarios. He highlighted the areas to address for the 2010-2011 budgets. He stated that revenues from most sources are down and the General Fund fund balance is currently projected at 26.8% for the end of 2009. He stated there is an assumption based on finances that a $998,309 deficit will be present by the end of 2009 of expenditures over revenue. He listed the revenue sources that have decreased for 2009. One of the major decreases is the Income Tax receipts which is down $416,000, Investment Income is down $338,000, Real Estate Transfer Tax is down $271,000 and other Utility Taxes are down $207,000 however; Telecom revenues are up $266,000. He stated the Sales Tax receipts were estimated to be down approximately 6.3% and that they have come in slightly less than that to date. However, with the reopening of Walmart, the projection should be relatively close to actuality by the end of the year. He stated that License and Permit fees are slightly above the budgeted amounts that were projected for the year. He stated staff has already undertaken $491,000 in budget cuts to date with additional reductions of approximately $460,000 currently being made by staff. He anticipated a hiring freeze for the remainder of the year unless the position is critical for operations and then will be evaluated on an individual basis by the Village Manager and planed into the 2010 budget process. He stated the CIP funding has been reduced due to limited funds available through the decline in the Home Rule Sales Tax to date, therefore; a number of Capital Improvement Committee of the Whole Page 1 of 3 8/11/09 Projects will likely be deferred. He also stated that staff is in the process of putting together an option for a carryover of some fund balance to cover some projects and to reprioritize projects as necessary with Village Board approval. He stated among the reductions that would likely be recommended are street improvements which will be limited to only base line projects. He also stated the water and sewer fund is currently in decent shape due to the reserves. Water sales were down due to the mild weather and their sufficient cash reserves on hand to get through the current financial situation. He is also lowering some revenue projections for the remainder of the year. He stated the 2010 Budget will likely reflect expenditures based on the original forecast from 2009 with very little increase built in. He stated that the property tax receipts percentage will likely be reduced from 98% to 97% due to the number of foreclosures within the community. He also stated that departments have recently submitted their budgets using the 2009 funding level minus $900,000 for the 2010 budget initial submittal. There will likely be a recommendation for some fund balance drawdown, but that is anticipated to be minimal. He provided a summary of the fund balance projections through 2010 and 2011. He also highlighted the increase in property tax assuming no legislative relief occurs for public safety pensions which would require a 9.89% increase in property taxes for 2010 however, with property tax relief legislation, the public safety pensions would be capped at a 10% increase for the year which would only impact the property tax increase to the tune of 4.19%. Some options that are currently being evaluated include a short term deficit reduction in the General Fund through fund balance utilization, reduction or postponement of capital projects, unless directly supported by revenue, and an overall evaluation of the public safety pension impact upon the budget. General comments from the Village Board members included the following items: . Board members were appreciative that staff has undertaken a number of initiatives to address the decline in revenues and has worked to decrease the gap between revenues and expenditures. . There was also a suggestion that a consideration be clearly explored regarding the possibility of the reduction of the General Fund balance below 25%. . It was also noted that the Village should be careful in terms of reprioritizing Capital Improvement Projects so that the deferrals do not increase the overall cost of the project in the future when it is undertaken. Finance Director Erb stated that he will provide another quarterly update in October and at the time the budget discussions for 2010 are underway. V. VILLAGE MANAGER'S REPORT Village Manager Janonis wanted to provide a status report on the numerous strategic goals that the Village Board had listed for 2009. Community Development Director William Cooney provided an update regarding the Randhurst construction and leasing. Police Chief Dahlberg provided an update regarding the crime and gang efforts that his department has initiated in various areas throughout the community. He also highlighted the value of the Crime Free Housing program and its direct impact on a 12% reduction of calls for service from last year. He highlighted the fact that due to some creative shift work he has been able to put some additional patrol in the Boxwood area on Friday and Saturday nights to address their unique issues. Committee of the Whole Page 2 of 3 8/11/09 Fire Chief Figolah provided highlights of the Emergency Preparedness Effort of the Village staff and a construction update of the Fire Station and the EOC. Human Services Director Nancy Morgan provided an update regarding the Citizen Integration efforts and the recent opening of the Community Connection Center. Manager Janonis stated the Village Board has had some discussion already on Jurisdictional Transfer policy and staff is currently working with lOOT regarding Kensington Road. He also stated the Village has applied for an Energy Efficiency Policy Grant and is currently in the process of bringing on a consultant to assist in that effort. Fire Station 14 has been designed as a LEEDS GOLD facility and the zoning code has been updated to address green initiatives as recommended by the Village Board as part of their goals. He stated there has been no further discussions on Boards and Commissions. He also stated the Levee 37 construction project is currently underway and is anticipated to be completed by the end of 2010. Community Development Director William Cooney stated that staff has undertaken an annexation analysis to evaluate the annexation options on the South end of Mount Prospect. He expects the annexation of the ARC disposal site to come before the Village Board by the end of the year. VI. ANY OTHER BUSINESS Mayor Wilks provided some highlights and details regarding the positive feedback from the participants in the 3 Day Cancer walk that passed through the Village over the weekend. VII. ADJOURNMENT Meeting adjourned at 8:48p.m. :;;;ycu:J sttf DA VI 0 STRAHL Assistant Village Manager H:\VILM\Cow\2009\Minutes\8-11-09 COW Minutes.doc Committee of the Whole Page 3 of 3 8/11/09