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HomeMy WebLinkAbout11/07/2002 FC minutes I. DRAFT FINANCE COMMISSION MINUTES OF THE MEETING NOVEMBER 7, 2002 PUBLIC WORKS BUILDING DRAFT CALL TO ORDER The meeting was called to order at 7:00 p.m. Those present included Chairman John Korn and Commissioners Charles Bennett, Vince Grochocinski, Ann Hull and Ann Smilanic. Also present were Village Manager Michael Janonis, Director of Public Works Glen Andler, Deputy Director of Public Works Sean Dorsey, Director of Finance Douglas Ellsworth, Deputy Director of Finance Carol Widmer and Finance Admimstrative Assistant Lisa Burkemper. Commissioners George Busse and Tom Pekras were absent. APPROVAL OF MINUTES Commissioner Charles Bennett motioned to approve the minutes of October 17, 2002. Commissioner Ann Hull seconded the motion and the minutes were accepted as presented. Commissioner Charles Bennett motioned to approve the minutes of October 24, 2002. Commissioner Vince Grochocinski seconded the motion and the minutes were accepted as presented. III. REVIEW OF THE PROPOSED 2003 VILLAGE BUDGET PUBLIC WORKS Director of Public Works Glen Andler began his presentation by outlining some of the department's 2002 accomplishments. Mr. Andler then stated that the Public Works Proposed Budget for 2003 totals $18,720,272, which is down 4.73% over 2002. Mr. Andler presented a brief overview of each category under the 2003 Proposed Budget for Public Works and highlighted several significant accounts. Streets/Buildings/Parking Brick Sidewalk Maintenance account showed an increase of 460%, rising from $4,345 to $20,000. The increase is attributed to the cost of applying a sealant to the surface of the brick sidewalks throughout the Village. Sidewalk Improvement Program account showed a decrease of 100%, from $63,000 to $0. The trip hazard program has been incorporated into the Street Improvement Program. The new program allows for sidewalks to be fixed in conjunction with resurfacing of the street. Engineering · Right of Way Restoration account showed a decrease of 24%, from $16,560 to $5,000. Last year showed greater compliance from the utility companies. It is anticipated that the utility companies will continue to comply therefore the village will spend less money restoring the areas excavation by the utility companies. Water/Sewer J.U.L.I.E. Management System account is created with a budgeted amount of $20,000. These funds are needed to purchase computer hardware and software developed by J.U.L.I.E. to electronically receive requests for utility locates. Currently Public Works receives over 3,500 utility locate requests per year. The new system will reduce the time spent on these locates as well as reduce the amount of time spent on bookkeeping. · Water Mains Replacement account budgeted at $300,000, which is a Capital Improvement Project. The project will replace water mains in the Prospect Meadows subdivision that are deteriorated. · Combined Sewer Improvement account budgeted at $750,000, which is also a Capital Improvement Project. Public Works recently solicited for proposals for the inspection part of the project. Capital Improvements Residential Streelights account budgeted at $678,697. This project will allow for installation of streetlights in the Busse/Algonquin/Dempster intersections, as well as completion of streetlights in the Route 83 and Central Road area. Funds are also needed for replacement of damaged poles in the Kensington Business Center. Nearly all the money needed for these projects will be offset by revenue from grants, monies received from Arlington Heights and developer contributions. · Bridge Rehabilitation account budgeted at $100,000. This item is a carry over from the 2002 budget. Since the project was not completed during 2002 it has been rescheduled for 2003. Chairman John Korn asked who was responsible for planting the trees along Rand Road across from the Menards Store. He said they appear to be planted right under the power lines. Mr. Andler stated that the Village was responsible for these trees. Furthermore, he stated that the species of trees are small and would not reach the power lines. Commissioner Charles Bennett asked if the Village intends to seal coat the old bricks from Phase I of the redevelopment. Mr. Andler stated that the Village would apply the seal coat after the new bricks have been coated. Commissioner Ann Smilanic stated that a lot of the computer expenses for Public Works has been switched in the budget to the newly developed IT Division, however the Public Works budget still contains a lot of computer software. Mr. Andler stated that some of the software Public Works uses is not network wide and is only used within Public Works. The Public Works department will therefore maintain this in house themselves. Commissioner Ann Smilanic asked why under contractual services there is a line item for General Store Property Taxes. Why does the Village pay property taxes? Director of Finance Douglas Ellsworth stated that because the building is a commercial use property the Village is required to pay property taxes. Furthermore, the lease provides that the Village pays the taxes. Commissioner Ann Smilanic asked why cleaning services and grounds maintenance figures did not decrease due to the Senior Center building closed. Mr. Dorsey stated that the temporary location for Human Services is now being cleaned instead of the Senior Center, also the budget figure represents an adjusted rate increase for services. Mr. Andler stated that grounds maintenance doesn't include buildings only, it includes the mowing of right of ways and area along public roadways. Commissioner Ann Smilanic asked for an explanation of a traffic-calming project. Village Manager Michael Janonis stated that it is a project that creates an obstacle for drivers to slow down traffic. Some examples axe speed bumps or bump out curbs. Commissioner Ann Hull asked if we anticipated future costs when the Village decided to install brick sidewalks. Mr. Janonis stated that the Village built in maintenance costs associated with the bricks, however they did not anticipate the seal coating. Furthermore, all future projects will provide for sealing at the time of installation for a cost savings. Commissioner Ann Hull asked if once the new J.U.L.I.E. software is up and running will the Village benefit in the future. Mr. Dorsey stated that the system we currently use is a fax/printer and once we receive a request there is a person who has to keep records of the project. With the new computerize system all records will be kept electronically and managed through the computer. This would free up a few hundred hours of time spent mmually on record keeping currently done by a foreman. NON-DEPARTMENTAL Debt Service Director of Finance Douglas Ellsworth began his presentation by stating the 2003 Proposed Debt Service Budget totals $5,858,792 that represents an increase of 6.8% over last years budget. Furthermore, the Village has outstanding debt totaling $47,364,220, of which $20,500,000 belongs to the Library. Chairman John Korn stated that it is healthy to have debt, but what is the rule of thumb for the amount that is considered acceptable. Mr. Ellsworth stated that the Village's last Moody's report put the Village at average debt outstanding, although in years past the Village was usually considered low. Pensions Mr. Ellsworth stated that the actual pensions to Police and Fire showed a slight increase of 4.1%. The total 2003 Proposed Budget totals $4,113,425. The majority of the increase is attributable to a 3% adjustment to Pension amounts on January lSt,which is set by state law. Commissioner Ann Hull asked what the Miscellaneous Pension amounts represented. Mr. Ellsworth stated they were pensions acquired when the Village took over a fire protection district. Commissioner Charles Bennett asked if we make pension payment through the Village payroll system. Mr. Ellsworth stated that pension checks are rrm through our regular payroll system. Risk Management Mr. Ellsworth stated that the 2003 Proposed Risk Management and Insurance Budget of $4,633,096 shows an increase of 19.7% over last years budget. This is due to the rising costs of health insurance costs. Mr. Ellsworth mentioned that in 2002 the Village projected a 10% increase in health care costs, however the actual figure is in excess of 20%. The Human Resource Department has projected an 18% increase for 2003 as well as ann 18% increase for 2004. IV. CHAIRMAN'S REPORT There was nothing to report. V. FINANCE DIRECTOR'S REPORT There was nothing to report VI. OTHER BUSINESS Chairman John Korn led a discussion regarding recommendations to the Village Board regarding any of the department's budgets. Commissioner Ann Smilanic motioned to recommend the Village Board pass ann ordinance to no longer have the vehicle license and to recoup the lost revenue by increasing the utility/telecommunications taxes at a rate to be determined by the Finance Director. Commissioner Charles Bennett seconded the motion. Following the motion the Commissioners had a lengthy discussion on the topic. Commissioner Ann Hull asked what year Commissioner Ann Smilanic wanted the ordinance to take effect. Commissioner Ann Smilanic stated that she would like to see it in effect 2003. She expressed concern that if it did not take place in 2003 she felt it will never take place. Chairman John Korn stated that he would like to see the vehicle sticker elimination as part of a whole package in next year's budget process. Commissioner Vince Grochocinski agreed with Chairman Korn and stated he wanted to put off until the next budget process the elimination of the sticker. Commissioner Ann Hull added she was concemed that the Village wasn't looking at doing something now and why not boost revenues before the Village really needs to ake hard budget decisions. Concluding the discussion the motion was defeated with Chairman John Kom and Commissioners Ann Hull and Vince Grochocinski voting against the motion. Commissioner Charles Bennett mentioned he thought the Finance Commission should make a general statement to the Village Board as part of the budget review process. Commissioner Bennett stated that while it may be necessary to use reserve funds to balance the next budget the Village should not make this a practice or trend to balance future budgets. Commissioner Vince Grochocinski added that staff should be commended for the work they have done to present their budgets. Commissioner Bennett added that he was pleased with how staff has come in with a limited budget. There was a discussion initiated by Commissioner Ann Smilanic on whether to cancel the next meeting scheduled for November 14, 2002. Commissioner Ann Hull motioned to cancel the November 14, 2002 meeting, which was seconded by Ann Smilanic. Chairman John Kom and Commissioners Vince Grochocinski and Chaa:les Bennett voted against the motion and it was defeated. Commissioner Charles Bennett mentioned that by having a meeting on November 14th it would give Commissioners Tom Pekras and George Busse an opportunity to make any recommendations on the 2003 Proposed Budget, since they were not in attendance at the last two meetings. Commissioner Bennett also suggested that the commission look at the list of 21 Possible Budget Reductions that was complied at the September 26th meeting. VII. NEXT MEETING: NOVEMBER 14, 2002 Commissioner Vince Grochocinski motioned to adjourn which Commissioner Charles Bennett seconded. The meeting was adjourned at 9:45 p.m. The next meeting is scheduled for November 14, 2002. Respectfully submitted, Lisa Burkemper Administrative Assistant Finance Department