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HomeMy WebLinkAbout11/25/1997 COW minutes REVISED MINUTES COMMITTEE OF THE WHOLE NOVEMBER 25, 1997 I. CALL TO ORDER The meeting was called to order at 6:15 p.m. by Mayor Farley. Present at the meeting were: Trustees George Clowes, Timothy Corcoran, Richard Lohrstorfer, Daniel Nocchi and Irvana Wilks. Trustee Paul Hoefert arrived at 6:28 p.m. Staff present included' Village Manager Michael Janonis, Assistant Village Manager David Strahl, Finance Director Brian Caputo, Assistant Finance Director Carol Widmer, Public Works Director Glen Andler, Deputy Public Works Director Sean Dorsey, Solid Waste Coordinator Lisa Angell, Forestry Superintendent Sandy Clark, Water/Sewer Superintendent Rory O'Donovan, Street/Building Superintendent, Paul Bures, Administrative Aide Dawn Wucki, Village Engineer Jeff Wulbecker, Vehicle Maintenance Superintendent Jim Guenther, Fire Chief Michael Figolah, Fire Marshal Paul Valentine, Police Chief Ronald Pavlock, Deputy Police Chief Ronald Richardson, Human Services Director Nancy Morgan and Community Development Director William Cooney. J II. MINUTES Acceptance of Minutes of November 11, 1997. Motion made by Trustee Nocchi and Seconded by Trustee Corcoran to approve the Minutes. Minutes were approved unanimously. III. CITIZENS TO BE HEARD NOne. IV. 1998 BUDGET DISCUSSION Mayor Farley provided the introductory comments stating that this is the final meeting dedicated for Budget discussion for 1998 and the Finance Commission has forwarded their recommendations for consideration by the Board at this time. He suggested that the Board convene additional discussions for the 1999 Forecast Budget in the near future to address that situation. Public Works Department Discussion Public Works Director Glen Andler provided an overview of the 1997 accomplishments. Among the items he highlighted was the Tree City, U.S.A. Award. This year marks the tenth year in a row the Village has received the honor. He also stated that the Engineering Division is experimenting with new solutions including a different asphalt mix on one street to determine possible value in other areas of the community. He also stated the backlog of streets has been resolved by the Village Board providing the necessary funding through 2006. He also stated that work at Wells 4 and 11 has been completed. These Wells are essential as part of the back-up water system. He stated the Lake Briarwood Drive project is now completed. He stated that the Department has utilized contractual services for approximately 27% of the total budget. Deputy Public Works Director Sean Dorsey provided an overview of the Performance Measures for the Department which showed the Department as the lowest in the survey group in a number of different areas. Public Works Director Glen Andler provided an overview of the services within specific budget areas. Among the items he highlighted was the proposed work at the outlying Fire Stations and the necessary parking lot work at the Fire Station on Kensington. He also stated that there is a need to replace the entrance markers to the Village at major intersections which will be accomplished by replacing one per year over the next four years and the additional installation of smaller entrance markers at strategic locations throughout the Village. He also highlighted the fact that the street light poles in Kensington need to be replaced due to their deterioration. He stated that staff is reviewing the options within the existing Refuse Contract to address commercial hauling. He stated that recent initiatives to extend the life and defer replacement of vehicles has had a positive impact on the projected replacement schedule of vehicles in the future. One of the critical elements of the extended vehicle program is the use of squad cars as staff vehicles. 2 General questio ~ns from the Village Board members included the following items: There was a discussion concerning the reasoning behind transferring the Opticom costs from the Fire Department Budget into Public Works' Budget. There was also discussion concerning the proposed entrance marker replacement program. Board members also encouraged the Department to look for other opportunities to contract out services wherever prudent. Trustees were supportive of performance measures which show activity costs and encouraged other Departments to utilize this same basis for comparison. Finance Director Brian Caputo responded to one of the comments by stating that funds were transferred from Fire to Public Works in order'to account for all traffic- signal related costs. Non-Departmental Expenditures Finance Director Brian Caputo provided an overview of the Debt Service and the various types of debt still outstanding. He stated that after the Debt Issue for Flood Control this coming year, there will be no more capacity until 2002 for Flood Control- related debt. He also highlighted the repayment schedule for the Installment Loans from IEPA. He also provided an overview of the Village Insurance Program. He stated that he is in the process of rebidding all liability insurance, property, excess liability, Workers' Compensation, EMT, Surety and Faithful Performance Bond insurance. He stated that he will be coming to the Village Board for approval prior to January 1, 1998 with the results of this rebidding procedure. He stated that it is his intention to roll over the fixed asset inventory program costs into 1998 to continue that program. He stated the medical insurance program is self-funded and a major review of the program has been underway to address costs. He stated the HMO increase is projected to be 4.5% which would reflect the first increase in three years. The Risk Management Fund is an internal service fund which has a projected surplus of $2.2 million at the end of 1997 and a request to transfer $750,000 to vehicle replacement from this fund has been recommended. General comments from the Village Board members included the following items: Some Board members asked whether the current level of Bonded Debt has any impact on future interest rates or other'Debt Issues which may be contemplated. There was also a discussion concerning the Debt capacity'of the Village. Finance Director Brian Caputo responded to a number of the comments by stating that the Village's experience with health insurance and Workers' Compensation has been relatively good for a group this size and has been involved recently in trying to obtain multi-year insurance quotes. 3 Overview of Finance Commission Recommendations Ann Smilanic, Acting Chairperson for the Finance Commission, spoke. She reviewed the Finance Commission recommendations: 1. The Finance Commission supports a $750,000 fund balance transfer from ~ the Risk Management Fund to the Vehicle Replacement Fund. 2. The Finance Commission supports the Village policy of maintaining the Special Service Area #5 (SSA #5) tax levy at approximately the same level as the Village's obligation to the Joint Action Water Agency (JAWA) for fixed costs for debt service. 3. The Finance Commission opposes designating the amount of $300,000 in the Village's General fund balance (that amount in addition to the recommended level of 15% of expenditures) for a disaster contingency fund. 4. The Finance Commission supports transferring a total of $1 million in "excess" fund balance from the General Fund to the Capital Improvement Fund as reimbursement for monies taken from the Capital Improvement Fund to pay for the Street Improvement Program. ~ 5. The Finance Commission supports reducing the amount to be paid to the Historical Society in 1998 from $35,000 to $17,500 and recommends consideration of additional reductions in the future. 6. The Finance Commission recommends that the number of issues of the Village Newsletter be reduced from six to four per year. 7. The Finance Commission recommends that the merit bonus plan be retained in the proposed 1998 Budget. 8. The Finance Commission recommends limiting the programs on Cable TV to just the Village Board meetings and the ZBA hearings. 9. The Finance Commission recommends eliminating Village-sponsored holiday lighting from all locations except the train station. 10. The Finance Commission recommends that a joint meeting be held with the Village Board to discuss.the 1999 Forecast Budget. Village Manager Michael Janonis suggested that the Village Board consider the first four items of the Finance Commission recommendations before addressing the balance of the remaining recommendations. 4 ,,-,,, 1. Finance Commission supports the $750,000 Fund Balance transfer from the Risk Management Fund to the Vehicle Replacement Fund. General consensus of the Village Board for this item was to accept the recommendation. , ~ 2. Finance Commission supports the Village policy of maintaining Sp. ecial Service Area #5 Tax Levy at approximately the same level as the Village's obligation to the Joint Action Water Agency for fixed costs for debt service. Consensus of the Village Board was to support this recommendation. 3. Finance Commission opposes designating the amount of $300,000 in the Village's General Fund balance for disaster contingency. Consensus of the Village Board was to maintain a contingency fund of approximately $300,000. 4. Finance Commission supports transferring a total of $1 million in "excess" fund balance from the General Fund to the Capital Improvement Fund as reimbursement for monies taken from the Capital Improvement Fund to pay for Street Improvement Program. ~ Consensus of the Village Board was to transfer $700,000 from the General Fund to the Capital Improvement Fund because of the previous consensus concerning the Contingency Fund establishment of $300,00O. 5. Finance Commission supports reducing the amount to be paid to the Historical Society in 1998 from $35,000 to $17,500 and recommends consideration of additional reductions in the future. Consensus of the Village Board was to maintain the funding level at $35,000 for '1998. General comments from Village Board members included the following items: Some members felt it was important to provide funding because it is necessary to provide a link to the past. One Board member felt that it was important to reduce the funding level. 6. Finance Commission recommends that the number of issues of the Village Newsletter be reduced from six to four per year. ( ~ Consensus of the Village Board was to maintain the number of issues per year at 6. 5 General comments from the Village Board included the following items: Board members felt it was critical that the Village communicate with the residents and the Newsletter is a critical element in that communication. Some Trustees also raised the question as to when the format of the Newsletter will be changed to improve readability. 7. Finance Commission recommends that the merit bonus plan be retained in the 1998 proposed Budget. Consensus of the Village Board was to maintain the funding as recommended in the 1998 Budget, 8. Finance Commission recommends limiting the programs on Cable TV to just Village Board meetings and ZBA hearings. Consensus of the Village Board was to retain the current programming schedule, General comments from the Village Board members included the concern that a reduction in programming would reduce outreach and information provided to the residents. Board members felt that cable TV programming provided good programs which are of interest to the citizens. 9. Finance Commission recommends eliminating the Village-sponsored holiday lighting from all locations except the train station. Consensus of the Village Board Was to retain the holiday lighting program as budgeted for 1998. General comments from the Village Board members included the following items: Board members felt the holiday lighting creates an identity for the downtown and also provides an image for the community, One Board member felt that reducing the amount of funding by one-half would be adequate to retain the identity of the downtown. 10. Finance Commission recommends that a joint meeting be held with the Village Board to discuss the 1999 Forecast Budget. Consensus of the Village Board was to support the convening of this meeting in the near future, 6 General comments from the Village Board members included the following items: Board members thought it was critical to increase the communication between the Board and the Finance Commission in addressing the proposed 1999 deficit. One Board member felt that the Commission should bring forward recommendations for the Village Board to consider reducing the proposed deficit at which time the Village Board would have the opportunity to discuss the impact of these recommendations. Dick Bachhauber, Chairman of the Finance Commission, requested a copy of the Minutes for this meeting for the Finance Commission to review and possibly respond to Village Board comments. Ann Smilanic spoke. She stated that the recommendations from the Finance Commission concerning the Historical Society funding was based on a survey of other Historical Societies in area communities. Mayor Farley stated he felt the Historical Society funding was modest as part of the overall budget for the Historical Society. Trustee Clowes stated that building maintenance costs are not part of the annual funding provided to the Historical Society. Therefore, the additional maintenance costs would be added to the overall funding level to determine total commitment. He felt that the survey provided by the Finance Commission was quite interesting in terms of funding levels in other communities. Trustee Hoefert stated that the dues structure for the Historical Society was similar to other communities. He would recommend the Historical Society personnel do a comparison with other towns to determine an appropriate service and funding level. He also stated that it is difficult to find fat when the budget is quite lean as it is, therefore, any cuts will, undoubtedly, impact service delivery. He recommended that the ambulance fee for non-residents should be increased to be more in line with the actual cost of providing the service, therefore, he would recommend increasing the non-resident ambulance fee to $200. He also recommended that the Blood Donor Program be eliminated. He recommended these items be effective for 1998 Budget. · There was consensus of the Village Board to increase the non-resident Ambulance Fee to $200 for 1998. There was not a consensus to establish a resident ambulance fee of $'100. There was a consensus of the Village Board to eliminate the Blood Donor Program for 1998. Discussion Concernincj the Balance of the 1998Bud~let General consensus of the Village Board was to support the balance of the '1998 Budget as presented by staff. 7 General comments by Village Board members included the following items: There was some concern regarding the $750,000 transfer to cover a portion of the vehicle replacement deficit. This concern was based on possible impact in other areas which may be disproportionately by the transfer. Board members were also quite supportive of the Performance Measures which had been created by individual Departments. They supported extending to reduce the also the life of the vehicles vehicle replacement deficit. Trustee Clowes requested reconsideration for a resident ambulance fee and suggested further discussion take place on that topic. Village Manager Janonis clarified the $750,000 transfer to the vehicle replacement fund. He stated the intention is to move from 32% to 45% of the necessary funding level to meet the vehicle replacement needs in the future. He stated there'is a need to address this deficit in the vehicle replacement fund sooner or later and this is only one of the steps necessary to address the shortfall. 1999 Budget Discussion Trustee Corcoran Stated that the Performance Measures and bench marking obviously show efficiency and economical dissemination of services. He stated the Village Board has added services without increasing revenues in the past. Staff has been quite creative to meet service needs without requesting additional revenue. He stated that the issues that are before the Board concern funding not service issues. He stated that when services are provided by people, it is difficult to assess costs which will have to be reduced without impacting actual services. He stated that the Board cannot wait and attempt to address the 1999 shortfall without starting the process now beginning in 1998, He recommends the Village Board consider raising the Property Tax Levy by 6.5% instead of the previously recommended increase of 4%. He stated that he would look for staff to determine other production improvements to cover part of the remaining difference. Trustee Hoefert stated that he did not agree with all items recommended for reduction; primarily the reduction in training will cause problems in the future as the employee population continues to turn over. He also stated that he is concerned that some items may be cut to the bone which would impact the specific level of service demanded by the residents. He suggested the Board look at other revenues. Trustee Clowes stated that he felt that government organizations were no different than business organizations in terms of addressing the cost of operations. He stated that it is the responsibility of the Board to ensure the operation is lean before going out to find other revenue. He stated that he is not supportive of the Property Tax Increase. 8 Trustee Wilks stated that she Would like to have an additional meeting to discuss the options of service delivery before eliminating services. Trustee Nocchi stated that it is important that there is a re-definition of core services. He suggested that the Board look at the multi-family housing fee to cover the actual cost of providing the service. Trustee Lohrstorfer stated that the Performance Measures provided by the Departments bear out the Iow cost of service already and is concerned about how much lower the service costs can go without impacting services. There may be a need to look at revenues. Trustee Corcoran stated that it is not always equal to compare government services to businesses because governments cannot operate exactly as a business. He stated that bench marking and performance measures show value because the added services are not always covered totally by the revenue generated. He stated that it is important the Board make a decision on the Property Tax this month in order to ensure receipt of the monies in 1999 when the deficit is projected. Finance Director Brian Caputo stated that the Tax Levy for 1998 needs to go out for publication on November 26. The impact on residents from 4% to 6.5% is approximately $7.00. The example of property taxes on a $180,000 home amount to approximately $250.00 to the Village; a 4% increase will bring those taxes to $260.00 and an increase of 6.5% will brin{] the total to $267.00. Trustee Hoefert suggested raising fees for multi-family inspections to $31.00 over a period of time to cover the actual staff cost and consider increasing the fee on a periodic basis to cover the staff cost. Trustee Clowes felt that it was unfair to increase the multi-family license fee at this time without comparing the Property Tax impact on multi-family compared to single- family. He stated that the tax structure is different for these two types of properties, therefore, the amount paid is drastically different. He felt that the Manager and various Departments could be more efficient and the Village could bid out services like any other contractor. A general discussion ensued concerning the multi-family license fee. Trustees felt that programs should be self-supporting if possible. There was also discussion as to who is responsible for paying the annual license fee. There was also discussion referring back to the most recent annual license fee increase from $7.00 to $14.00 to cover the cost of an additional Interior Housing Inspector. Trustees also · suggested a review of operations before automatically jumping to revenue increases. Consensus of the Village Board was to increase the, annual multi-family license fee from $14.00 to $20.00 for 1998; consider a future increase to $31.00 per year for 1999 when that Budget is discussed. Consensus of the Village Board was also to increase the Property Tax by 5% for 1998 instead of the projected 4%. Trustee Clowes felt that the Board should not try to rush through these increases without additional discussion and cuts in programs should be thoroughly discussed before increasing revenues. He felt that raising revenues is not a good first step to address the budget shortfall. Trustee Wilks opposed both the multi-family license fee and Property Tax increase from 4% to 5%. She felt that the Board should take the proposed Property Tax increase to the Finance Commission for their input. V. ANY OTHER BUSINESS Trustee Clowes recommended that all correspondence including agendas and minutes be on 8% x 11 size paper instead of legal size for some documents and letter size for other documents. Consensus of the Village Board was to support all documents be forwarded to the Village Board on 8Y2 x 11 size paper. CLOSED SESSION Motion made by Trustee Wilks and Seconded by Trustee Hoefert to move into Closed Session at 10:16 p.m. for the purpose of discussing Land Acquisition and Personnel. VI. ADJOURNMENT The Committee of the Whole reconvened in Open Session at 10:34 p.m. On a Motion by Trustee Wilks, seconded by Trustee Clowes, Board members accepted Closed Session Minutes of November 18, 1997 by unanimous vote. There was no other business transacted in open session. Mayor Farley called the meeting adjourned at 10:35 p.m. Respe.ctfully submitted, / DAVID STRAHL DS/rcc Assistant Village Manager 10