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HomeMy WebLinkAbout08/09/2011 COW Minutes COMMITTEE OF THE WHOLE MINUTES August 9, 2011 I.CALL TO ORDER–ROLL CALL The meeting was called to order at 7:10p.m. in the Village Board Room of the Village Hall, 50 South EmersonStreet, by Mayor Irvana Wilks. Present at the meeting were TrusteesArlene Juracek, John Korn, John Matuszak, Steven Polit andMichael Zadel.Staff present included Village Manager Michael Janonis, Assistant Village Manager David Strahl, Finance Director David Erb, Human Services Director Nancy Morgan, Deputy Director Jan Abernathy, Police Chief John Dahlberg, Deputy Chief Mike Semkiu, Sergeant Tim Griffin and Commander John Wagner. II.APPROVAL OF MINUTES FORJOINT SPECIAL TRAFFIC WORKSHOP JUNE 13, 2011 Motion made by Trustee Polit seconded by Trustee Zadel.Minutes were approved.Abstaining was Trustee Korn and Trustee Matuszak. CITIZENS TO BE HEARD III. None IV.2011 MID-YEAR BUDGET REVIEW AND UPDATE FOR THE 2012 BUDGET FORECAST Finance Director David Erb stated that the Village ended 2010 in reasonably good shape due to the cut backs in staff reductions heading into 2011. He had seen some slight increases in sales tax. The projected deficit for 2011 and 2012 could be closed if reserves are used exclusively, however;that would reduce the reserve level below 19%. He stated the Village had to spend approximately $765,000 out of reserves due to storm expenses during this season which has impacted the projected deficit. He stated sales tax has increased approximately $266,000 with Home Rule Sales Tax up approximately $20,000. Intergovernmental reimbursement from the storm expenses was approximately $144,000. Real Estate Transfer Tax is down another $100,000from last year. He also stated the Income Tax distribution money from the State has decreased $82,500 due to the decrease in population from the recent census. He also stated that the Telecommunication Tax is down $315,000in addition to the Investment Income down $64,500. He stated the reduction in Motor Fuel Tax has resulted in a shortfall of $572,000 per year and created a backlog of approximately $3.5 million worth of resurfacing which has caused the program to be scaled back over the last several years. He stated there is approximately $500,000 in variable debt proceeds for flood control projects and that debt is projected to be paid off by 2019. He stated the Water and Sewer Fund is a self supporting fund and there are a number of large ticket items that are on the horizon. He also stated that he intends to undertake a water rate study in the fall to determine if the current rates are comparable to surrounding communities. He stated the 2012 forecast has an estimated deficit of $1,097,199. That is an increase over a previous estimate by$120,000. He statedusing reserves in 2011 to close the deficit would drop reserve percentage to 22.7% and using the reserves again in 2012 would drop the reserves to 19.6%.He also stated he has analyzed a preliminary tax levy of 4.3% with a general portion increasing by 4% with refuse remaining and the same debt increasing 2.5% with Police and Fire pension increasing 6.9%. He stated there still needs to be adiscussion regarding deficit reduction of General Fund and that he could explore additional Property Tax alternatives. 8/9/11 Committee of the Whole Page 1of 2 He stated there are a number of things on the horizon that could impact the overall Budget including the labor contracts that are expiring next year and there is need to monitor Capital Funding and address operating budget savings.He did state that the decrease in population has not reducedthe service demand levels. He indicatedthere may be a need to reconsider prioritization of sewer projects based on the recent storms. He also stated that personnel reductions may not be a variable option as part of a balanced2012 Budget based on the service level that is currently provided. He is concerned about the backlog of Streets and the Resurfacing Program because as the backlog continues to increase the cost for resurfacingmay shift to reconstruction due to the deterioration of the streets. He also has concerns about reserves droppingbelow 20% and there are very few options for new revenues available to consider. Michaele Skowronrepresentative of the Board of Fire and Police Commission spoke. She wanted to thank the Village Board for making the tough decisions over the years and feels that the Village is competing for quality candidates throughout the region and the nation and there is a need to restore theranks withthese quality people before they are hiredby other agencies. Manager Janonisstated that he would anticipate a water rate increase in 2011. He also stated there has been no increase in fees since 2004 and there was no Property Tax increase last year. Heis recommending a joint committee discussion including the Finance Commission in early September. V.VILLAGE MANAGER’S REPORT ManagerJanonisstated that Coffee with Council will be held on August 13 from 9:00 a.m.to 11:00 a.m. at the Village Hall. ANY OTHER BUSINESS VI. None VII.ADJOURNAMENT Meeting adjourned at 8:34p.m. DAVID STRAHL Assistant Village Manager 8/9/11 Committee of the Whole Page 2of 2 H:\VILM\Cow\2011\MINUTES\COW Minutes 8-9-11.docx