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HomeMy WebLinkAbout04/22/2003 COW minutes EVISED 5/14/03 II./ III. IV. MINUTES COMMITTEE OF THE WHOLE APRIL 22, 2003 CALL TO ORDER The meeting was called to order at 7:03 p.m. by Mayor Gerald Farley, in the Mt. Prospect Park District Community Center, 1000 West Central Road. Present at the meeting were: Trustees Timothy Corcoran, Paul Hoefert, Richard Lohrstorfer, Michaele Skowron, Irvana Wilks and Michael Zadel. Staff members present included: Village Manager Michael Janonis, Assistant Village Manager David Strahl, Finance Director Doug EIIsworth, Deputy Finance Director Carol Widmer, Fire Chief Michael Figolah, Public Works Director Glen Andler, Deputy Public Works Director Sean Dorsey, Community Development William Cooney, Human Services Director Nancy Morgan, Deputy Human Services Director Jan Abernethy, Police Chief Richard Eddington, Deputy Police Chiefs Ronald Richardson and John Dahlberg. APPROVAL OF MINUTES Approval of minutes from April 9, 2003. Motion was made by Trustee Zadel and Seconded by Trustee Lohrstorfer. Minutes were approved. CITIZENS TO BE HEARD None. LONG-RANGE FINANCIAL PLAN DISCUSSION Mayor Farley introduced the topic by stating the Board has had several Workshops and a preliminary meeting of April 9 to initially discuss the Plan as proposed. He stated the ultimate decision on what mix of revenues and possible expenditure cuts will be difficult for all members involved. He said there are many interests that have to be considered and the Village has benefited greatly from a conservative fiscal management philosophy in the past and the solution to this issue will, no doubt, follow that philosophy. He also wanted to point out that Property Tax Assessments vary between residential and commercial properties substantially. Village Manager Janonis provided a summary of the presentation from the previous Committee of the Whole meeting of April 9. He stated that the economic downturn has caused the loss of revenue and while it is easy to point to opportunities for possible service cuts, the service demand does not necessarily decrease as revenues decrease. He stated many times the requests for services increase due to needs of residents during times like these. He stated 80% of the Budget is related to employee costs and while fund balance has been used in the past, it is impossible to utilize fund balance indefinitely to resolve the issue of revenue shortfalls. The Village Board did review the various services provided by the Village and some non-essential services were recommended for elimination. The Village Board also tentatively directed staff to cut $500,000 from the 2004 Budget as part of a Financing Plan. Finance Director EIIsworth provided a review of the tentative consensus Financial Plan that had been formulated by the Village Board. He stated the Plan includes retaining existing revenues and eliminating previous sunset provisions. There were several tax increases and decreases. Among those changes is a Property Tax increase reduction, an increase in Home Rule Sales Tax and a shift of the refuse collection costs from property tax to direct pay. Another item was to eliminate the vehicle sticker. He stated the possible impact of the tentative Financing Plan as a general net cost estimate would be an increase of $129 per year for the average resident. Finance Commission Chairman John Korn spoke. He provided an overview of the Finance Commission duties in terms of its recommendation responsibilities to the Village Board. He stated the Finance Commission plan eliminates revenue sunsets and increases the Telecommunication Tax along with direct billing for refuse collection. The Commission recommends elimination of the vehicle sticker and transferring money to the CIP with reduction in the Corridor Improvement Plans. They also recommended expenditure reductions in Forestry, overtime and community and civic events expenses by 10%, thereby, a projected surplus of approximately $59,000 could be realized. Chamber of Commerce Executive Director Jim Uszler spoke. He stated the majority of the members of the Chamber are small business owners in the community and are concerned about a Sales Tax increase. He stated Illinois has an excessive tax structure, as it is that burdens business with State and local taxes. He stated generally business taxes have increased while business revenues have gone down. He feels a Sales Tax increase would adversely impact businesses and supports the Finance Commission proposal. He stated a growing economy is more likely to increase revenues than a projected Plan for increased revenues. Don Maxwell, 632 South Edward, spoke. He stated that he is concerned about being taxed out of Mount Prospect and it is not just the Village component that concerns him. It is the overall tax impact on the average resident. He stated Property Tax increases have a cumulative impact that must be addressed. He stated there are three ways to balance the Budget; spend less, take in more money or a combination of both. He suggested a citizen survey on the water bills to ask residents what they would like to have cut from the service mix provided by the Village. He suggested the Village raise fines and permit fees and retain the vehicle sticker. He is concerned about the change in the garbage collection system. He also asked where the Village might be in the Park Ridge Survey if these increases as recommended were put into place. Charlie McNulty, Eight North Waverly, spoke. He suggested the Board retain the vehicle stickers due to the break seniors receive for the stickers. He feels the garbage should remain on the Property Tax and felt the Sales Tax increase should be similar to what other surrounding towns charge so that Mount Prospect is not higher than surrounding communities. Frank Vlasny, 2103 Jody Court, spoke. He felt that the Village should undertake discussions with other communities to consolidate services that are being provided similarly in other towns. He is concerned about the garbage collection cost not being able to be deductible any longer and would suggest it remain on the Property Tax. 2 Doug Lattner, 631 South Albert, spoke. He opposes the direct bill for garbage and is concerned about the possible impact on the recycling program and leaf program. He also felt that the elimination of the vehicle sticker seems inconsistent since the V !lage needs the revenue. Wes Pinchot, 474 Whitegate, spoke. He also questioned why eliminate the vehicle sticker since it is a use tax. He also questioned what refuse rates multi-family residents pay. He also would like to keep the garbage on the Property Tax and feels that Sales Tax increase is a general pass through to the consumer and does not necessarily impact businesses. Rodger Kruse, 515 South Louis, spoke. He stated that he has been a resident since 1933 and would suggest the Village retain the vehicle sticker and he would be willing to pay the previously anticipated 4.8% increase in the Property Tax if it meant retaining the current service package. Eric Krieg, 319 North Russel, spoke. He stated that where he works, 10% of the workforce has been laid off and he has gone two years without a wage increase and sees no reason why the same circumstances cannot be considered by the Village. If 80% of the cost is personnel related, there is a need to look at the productivity of the employees. He thought the garbage cost should remain on the Property Tax and the Village should be more aggressive in getting development into the community. He also thought that building inspectors are too tough and some savings could be realized by cutting back the number of inspectors. Linda Mosca, 102 North Wille, spoke. She felt that the best way to increase revenue was to grow through economic development. She is concerned about the general impact of the Property Tax abatement through the Class 6. She felt that garbage should be based on the actual usage and make sure the system is equitable. She also felt that the vehicle sticker should be retained as a revenue source. Larry Mueller, 22 HiLusi, spoke. He felt that the refuse should remain on the Property Tax because it can be claimed on Federal taxes as deductible. He also suggested retaining the vehicle sticker and stated the Village needs a better mix of businesses in order for increased revenues. George Clowes, 604 South Elm, spoke. He stated he recalls his previous recommendations in December of 1988 and, again, when he was a member of the Board regarding reduction in expenditure growth should be looked at otherwise the Village will always be looking for additional revenue. He felt that since the Board had previously committed to sunsetting certain revenue sources, they should follow through. He felt that the Village should retain the vehicle sticker. He stated it is critical to reduce expenditures and make sure the percentage increase in expenditures do not exceed the revenue increases annually. He stated that based on his projections and analysis, the Village has grown an average of 2.5 people per year and has gotten away from the controls built in to control expenditures in the 1990s. He stated based on his analysis, $24 million is spent for personnel, he equates this amount to an average salary of $54,000 per employee. With benefits added, that brings it up to $74,000 per employee. He feels the Village employees should suffer like the rest of the population regarding salaries and benefit reductions. Erin Brodzik, 105 Horner, spoke. She stated if the Village changed the current garbage system, it would force people to manage their garbage in order to reduce costs. Don Harmon, 16 North William, spoke. He felt the garbage should be retained on the Property Tax bill. He also felt that it should be the Park District to provide youth services and funding to the YMCA and not the Village. Bill Lynch, 207 South Louis, spoke. He stated he is against the change in the garbage being removed from the Property Tax. He also stated that based on his analysis, the assessed land value differs between Elk Grove Township and Wheeling Township is very significant in the community. Carol Tortorello, 223 South Elmhurst Avenue, spoke. She would like the Village Board to retain the vehicle sticker and leave the garbage alone assuming some equity in usage can be maintained. General comments of the Village Board members included the following items: Mount Prospect is a diverse community in terms of how the property tax deduction applies. The Federal Tax deduction only applies to approximately 30% of the population, therefore, the so-called deduction is less critical. It is estimated that there is a $36.00 net loss per resident if the garbage is not written off the Property Tax bill. The refuse bill is significantly underwritten by businesses due to the difference in assessments between businesses and residents. The tax structure is based on single- family residences but there 30% of the housing units in the community are multi-family units. The Village has been very aggressive in contracting out for services and increasing fines does not necessarily impact revenue. There is not always a direct correlation. The enforcement of vehicle stickers is expensive, therefore, the cost of collection is an issue. He stated the garbage cost is based on the value of the home and not on the volume. Even though this is a tentative consensus plan, there are dissenters to the plan. There was also a comment made regarding the timing of the change in the refuse contract to coincide with the next negotiation session or contract renewal period. It was also mentioned there is a need to address the equitability of taxes and revenues and be aware of the business impact. Sales Tax may be an incentive or disincentive depending on the individual community. It was also stated that the head count within the Village has a direct correlation on the level of services that are provided. It was suggested that staff review the comments from the audience in terms of possible impact on revenues and cost out those options as an opportunity to determine impact of these suggestions. VILLAGE MANAGER'S REPORT Village Manager Janonis stated that April 26 is Welcome New Resident from 9:00 a.m. until 10:30 a.m. at Central Community Center. He also stated that the Relay for Life at Arlington Park is April 25. I. VIE ANY OTHER BUSINESS Several Trustees mentioned their appreciation for the service that Finance Director EIIsworth has provided to the Village over the past five years and all wished him well in this new position in Schaumburg. ADJOURNMENT There being no further business, the meeting adjourned at 10:05 p.m. Respectfully submitted, DAVID STRAHL Assistant Village Manager DS/rcc 5