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HomeMy WebLinkAboutCOW Agenda Packet 07/10/2001 COMMITTEE OF THE WHOLE AGENDA Meeting Location: Meeting Date and Time: Mount Prospect Senior Center Tuesday, July 10, 2001 50 South Emerson Street 7:30 p.m. I. CALL TO ORDER - ROLL CALL Mayor Gerald L. Farley Trustee Timothy Corcoran Trustee Michaele Skowron Trustee Paul Hoefert Trustee Irvana Wilks Trustee Richard Lohrstorfer Trustee Michael Zadel II. ACCEPTANCE OF MINUTES OF APRIL 24, 2001 Ill. CITIZENS TO BE HEARD IV. 2002-2006 CAPITAL IMPROVEMENTS PLAN In 1997, the Village Board formally adopted its first comprehensive 5-year Capital Improvements Plan (CIP). In previous years, the Village used a number of separate documents in its capital projects planning. While each of these documents was useful in its own right, none offered an overall picture of the Village's capital needs. The establishment of a 5-year Capital Improvements Plan (CIP) provides a comprehensive view of the Village's capital needs for consecutive rolling five-year windows. The proposed 2002-2006 ClP is generally comprised of projects which involve the purchase or construction of long-lived, tangible assets at a cost of $25,000 or more. The total cost of all requests for all years included in the plan is approximately $55.1 million. Many ofthe requests in the plan are simply continuations of established projects. Others are projects not currently in progress but have been discussed by the Village Board on previous occasions. Some requests are being presented for the first time through the CIP. Given that the CIP is intended to afford a comprehensive view of the Village's capital needs, it is fitting that all of these project requests be included in the proposed plan. Ofthe $55.1 million of project requests included in the proposed CIP, about $31 million (or 56%) is for the continuation of established projects including approximately $16 million for street resurfacing. NOTE: ANY INDIVIDUAL WHO WOULD LIKE TO ATTEND THIS MEETING BUT BECAUSE OF A DISABILITY NEEDS SOME ACCOMMODATION TO PARTICIPATE, SHOULD CONTACT THE VILLAGE MANAGER'S OFFICE AT '100 SOUTH EMERSON, MOUNT PROSPECT, ILLINOIS 60056, 847/392-6000, EXTENSION 5327, TDD #847/392-6064. A project's inclusion in the CIP does not guarantee its funding and accomplishment. The CIP is a planning document. As such, it is subject to change. The CIP is reviewed and updated on an annual basis. The next CIP will cover the years 2003 through 2007. Special attention should be given to the projects requested for 2001. Those are the projects, which would potentially be included in the Village's next annual operating budget. Although the Village Board may decide not to fund a 2002 project request included in the final 2002-2006 CIP, the CIP should serve as a "pre-budget" for capital items. The 2002 project requests included in the proposed CIP amount to $21.7 million. Of this amount, $7.3 million (or 34%) is for the continuation of established projects including $3 million for the Street Program. The proposed 2002-2006 CIP was distributed on May 25, 2001 to the Finance Commission and on June 29 to the Village Board. The Finance Commission held a meeting on June 28 to review the proposed document. Copies of the draft minutes from the Commission's meetings will be provided separately. Once the Committee of the Whole completes its review of the proposed 2002-2006 CIP, it will be presented to the Village Board for formal acceptance on July 17, 2001. V. ANY OTHER BUSINESS VI. MANAGER'S REPORT VII. ADJOURNMENT H:\GEN\Cow~Agenda\071001COW CIP Agenda.doc MINUTES COMMITTEE OF THE WHOLE APRIL 24, 2001 I. ~ The meeting was called to order at 7:32 p.m. by Mayor Gerald Farley. Present at the meeting were: Trustees Timothy Corcoran, Paul Hoefert, Dennis Prikkel, Michaele Skowron and Irvana Wilks. Absent from the meeting was: Trustee Richard Lohrstorfer. Trustee-Elect Michael Zadel was also present. Staff members present included Village Manager Michael Janonis, Assistant Village Manager David Strahl, Community Development Director William Cooney, Deputy Community Development Director Michael Blue, Senior Planner Judy Connolly, Project Engineer Chuck Lindelof and Finance Director Doug EIIsworth. I1. APPROVAL OF MINUTES Approval of Minutes from April 10, 2001. Motion made by Trustee Hoefert and Seconded by Trustee Skowron to approve the Minutes. Minutes were approved. II1. CITIZENS TO BE HEARD None. IV. DEVELOPMENT CODE UPDATE Community Development Director Bill Cooney provided a general technical summary of the focus of the update. He stated they are looking at the policy applications of the Code by dividing it into three tiers for application purposes. The three tiers are Development, Site Improvement and Maintenance Code application or requirements. He provided an outline of the clarification of the Code requirements and the need to streamline the process to encourage improvements. He felt that by developing these three tiers, there would be encouragement for improvement depending on the level of activity contemplated by the property owner. General comments from the Village Board members included the following items: It was suggested that the process be tested out to see if it works before full implementation. There was also a question regarding the definition of expansion of development compared with site improvements and the need to clarify definitions. It was also pointed out that if there is an opportunity to streamline the timeframe for approval, such improvement should be considered. Community Director Bill Cooney stated that the proposal has been reviewed with ZBA and Plan Commission and would consider a test mode for the process. General consensus of the Village Board was to consider the Development Code modifications as presented in the near future. V. MULTIPLE BOND RATING~ Finance Director Doug Ellsworth outlined the options that the Village could undertake to obtain an additional Bond rating beyond the current rating that it enjoys at this time. Benefits include a second review and provides a second look at the finances, however, the cost of the second rating is based on the size of the Bond issue and the Bond consultant the Village uses feels that the additional cost which would be incurred by obtaining a second rating would not likely outweigh any possible savings from a more favorable rating. He also pointed out that the typical objective of lenders is to review the ability to repay the loan and they formally look at such things as fund balance against the ability to repay the loan. He also stated that the Bond consultant does not recommend alternating between agencies due to local acceptance in the Bond market for a specific Bond rater. He stated it may be worth it to review finances at the time of the potential Bond sale to determine whether the Village would be in the process of requesting a review to get an approved rating. Consensus of the Village Board was to retain the current rating and not consider a second Bond rating at this time. VI. ACCEPTANCE OF CREDIT CARDS FOR MUNICIPAL PAYMENT,~ Finance Director EIIsworth brought this forward because this is a policy question as to whether the Village should accept credit cards or debit cards for payment of Village bills. He stated the Village would pay a fee based on the volume which could range anywhere from 2-3% fee per credit card transaction. He stated therefore the Village would only receive 97-98% of the actual payment. He stated that this is a convenience to the customers and would cause the cash customers to underwrite the convenience provided to the credit card customers. He stated a recent survey by the Northwest Municipal Conference showed that 48% of the communities accept credit cards. He stated that it would cost the Village approximately $5,000 as a one-time set-up fee to begin accepting credit cards. General comments from the Village Board members included the following items: A question was raised regarding a user convenience fee to help recover the portion of the credit card payment that the Village would lose for the convenience. There was also a concern regarding the loss of revenue and security of the use of credit cards. Finance Director EIIsworth responded by stating that it would require a third party to collect payments to cover additional costs which is typically referred to as a user convenience fee. He suggested that he monitor the use of credit and debit cards and report back to the Village Board in a couple of years to see if the fee level has changed. General consensus of the Village Board was to continue the current process of only accepting a check or cash for payment of Village bills and not accept credit cards or debit cards at this time. VII. First Quarter Financial Re_Port Finance Director EIIsworth provided a summary of the Budget for the first three months of 2001. He stated that there are some trends which may be beginning to show regarding revenue flow during the first several months of the year. He also pointed out any substantial changes that he has noticed in revenue and expenditures during the first three months. He pointed out that the Infrastructure Maintenance Fee revenue will be an issue in the very near future since the ruling by the Illinois Supreme Court. The Village has the potential of losing revenue which has previously been paid by wireless companies. He also stated that the health insurance costs to the Village are going to increase 15% as of July 1 and the Police pension enhancements that were required by State law have impacted the expenditures for 2001. He also stated that there will be an increase to the Northwest Central Dispatch for the cost of services which was not built into the Budget. This information was provided for general information purposes only and required no Board action at this time. VIII. VILLAGE MANAGER'S REPORT Village Manager Janonis reminded everyone that Arbor Day is coming up on April 27 and the Welcome New Resident is scheduled for April 28. He also stated that May 1 would be the swear-in for the new Board member and swear-in for the re-elected Board members and the Mayor which will include a reception that will start at 6:15 p.m. IX. ANY OTHER BUSINESS Trustee Prikkel asked that the Village Board look at doing something about the southeast corner of Busse and Golf to improve the appearance of the site. Trustee Skowron suggested a discussion in the near future regarding the Village Disclosure Statement required by the Village. X. ~l~ Since there was no further business, the meeting was adjourned at 9:'14 p.m. Respectfully submitted, DAVID STRAHL DS/rcc Assistant Village Manager H:\GEl~Cow~linutes\031301 COW Minutes.doc Village of Mount Prospect Mount Prospect, Illinois · INTEROFFICE MEMORANDUM TO: VILLAGE BOARD AND FINANCE COMMISSION FROM: DIRECTOR OF FINANCE DATE: MAY 25, 2001 SUBJECT: PROPOSED CIP: 2002-2006 Attached hereto is the proposed 2002-2006 Capital Improvements Program (CIP). The projects being considered for the year 2002 total $21,748,107. The five-year total for all projects is $55,109,091. We encourage you to read the Manager's transmittal letter beginning on page ii. This correspondence describes the purpose of the CIP, highlights some of the more significant projects, and reviews project funding. To help you evaluate our ability to fund the requested projects we updated the five-year financial forecasts for the major operating and capital projects funds that provide funding for the CIP. We have included these forecasts in the CIP document this year (see Section G). In general, both the number and magnitude of the projects being presented directly relate to the monies expected to be available. However, from reviewing the CIP requests in conjunction with the five-year financial forecasts you will find three areas of potential concern. General Fund Projects The CIP is showing projects totaling an average of $313,000 as being paid from General Fund revenues. This in itself appears reasonable given the fact we have funded in excess of $300,000 of capital expenditures out of the General Fund for the past several years. However, the five-year financial forecast for the General Fund is showing significant operating deficits beginning in 2002 and continuing through 2006 (see page G-2). What this means is that we could find it difficult to cover these projects and continue the annual operating transfer of $564,000 to the Capital Improvements Fund. As we get into the 2001 mid-year review and the actual budget process we should have a better handle on our revenue picture. We do take a very conservative approach to estimating revenues for the financial forecasts. It is very likely the operating deficits will be much smaller than those projected. Proposed CIP 2002-2006 May 25, 2001 Downtown Redevelopment Fund Based on the capital projects being recommended the Downtown Redevelopment Fund will see negative fund balances in years 2002 through 2006 (see page G-10). The Fund should return to a positive fund balance position in year 2007. The negative fund balance is projected to be at its peak in the year 2003, when it is at a negative $1.2 million. If the Village wants to continue the redevelopment efforts the General Fund would have to front the monies to the Redevelopment Fund until the year 2007. Of course, we could set it up so that the General Fund is repaid with interest. The following table summarizes the financial status of the Downtown Redevelopment Fund if the proposed CIP projects are included as expenditures: Downtown Redevelopment Fund 'rojected Fund Balance 2002 ' 2003 2004 2005 2006 Beginning Balance $331,736 $(791,524) $(1,232~694) $(1,069,125) i$(591,578) Revenues 6,000 357,466 496,755 680,462 754,332 Expenditures (1,129,260) (798,636) (333,186) (202,915) (217,882) Excess (Deficiency) (1,123,260) (441,170) 163,569 477,547 536,450 Ending Balance (791,524) (1,232,694) (1,069,125) (591,578) (55,128) Water and Sewer Fund The proposed CIP for 2002-2006 includes the start of a combined sewer system improvement program at an approximate cost of $750,000 per year. This new program results in significant operating deficits in the Water and Sewer Fund as can be seen in the five-year financial forecast (pages G-13 through G- 15): The deficits range from $793,000 to $I.1 million. The drafr CIP is showing five projects valued at $17.1 million as being funded through the issuance of general obligation bonds. Two of these projects are the construction ora new Village Hall/Community Center and a multi-level parking structure, which account for $12.6 million of the total amount. Staff looks forward to discussing the draft CIP with you in the very near future. DOUGLAS R. ELLSWORTH, CPA \~DP01\V01\USERS~DELLSWOR\CIP\02-06\Correspondenee~vlemo to Bd.doe Copy: Michael Janonis, Village Manager Dave Strahl, Assistant Village Manager Department Directors Mount Prospect. PUblic Works OspBrtment 1700 W. Oentral Road, MoUnt Peoapeot, Illinoia 60058-2228 Phone 847/870:5640 Fax 847/253-9377 TDO 847/382-1235 NOTI C £ THE: JULY g~ 2001 ME:E:TING OF THE: SAI~E:Ty CDMMISSIOhl HAS BE:E:N CANCE:LLE:D. THE; NE:XT i~E:GULAR ME:E:T]HG IS SCHE:DULE:CI I~OR MONDAY~ AUGUST 13~ ~-rl01 AT 7:30 F=.M. AN AGE:NDA OR CANCE:LLATION NOTICE: WILL BE: SE:NT PRIOR TO THIS ME:E:TING, Recycled Paper - Printed with_ Soy Ink VILLAGE OF MOUNT PROSECT TAX INCREMENT FINANCING DISTRICT NO. 1 JOINT REVIEW BOARD ORDER OF BUSINESS SPECIAL MEETING Meeting Location: Meeting Date and Time: Mount Prospect Village Hall Thursday, July 19, 2001 100 South Emerson Street 3:30 P.M. Second Floor Conference Room Mount Prospect, Illinois 60056 I. Call to Order II. Roll Call III. Selection of Chairperson IV. Update on the Downtown Redevelopment Project V. Discussion Regarding the 2000 Annual TIF Report VI. Discussion Regarding the Current TIF Financial Pro-Forma VII. Other Business VIII. Adjournment Any individual with a disability who would like to attend this meeting should contact the Village's Director of Finance at 100 South Emerson St., (847) 392-6000, TDD (847) 392-6064. I:~TIF~dminXJRB~200 l~Agenda.doc