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HomeMy WebLinkAbout2. COW Minutes 10/28/2014 COMMITTEE OF THE WHOLE MINUTES October 28, 2014 I.CALL TO ORDER–ROLL CALL The meeting was called to order at 7:05p.m. in the Village Board Room of the Village Hall, 50 South Emerson Street, by MayorArlene Juracek.Trustees present included Paul Hoefert, John Korn, John Matuszak, Steven Polit,RichardRogersand Michael Zadel.Staff present included Village Manager Michael Janonis, Assistant Village Manager David Strahl, Finance Director David Erb, Deputy Finance Director Lynn Jarog, Community Development Director Bill Cooney, Human Services Director Julie Kane, Deputy Director Jan Abernathy, and Administrative Intern Alex Bertolucci. II.APPROVAL OF MINUTES OF THE COMMITTEE OF THE WHOLE OCTOBER 14, 2014 Motion made by Trustee Politseconded by Trustee Rogers. Minutes were approved.Trustee John Korn abstained. III.CITIZENS TO BE HEARD None IV. 2015 BUDGET DISCUSSION Mayor Juracek provided opening remarks regarding the budget process and the dates of the meetings that will take place to formulate the 2015 Budget in addition to call-in and e-mail information for citizens to participate in the discussion and pose questions to the Village Board. Finance Director David Erb provided the projected results for the 2014 Budget, the proposed 2015 Budget and the projected 2016 preliminary Budget. He stated the 2014 amended revenue budget was $108.9 million which is $97,171 higher than the original budget. He stated the projected expenditures for 2014 were $108.3 million. He stated the main change to the projected expenditures for 2014 was a deferral of $9.4 million in flood projects. He stated there is a projected general fund surplus of $160,311 and the general fund reserves for the end of 2014 are projected to be 25.5% which is in line with the village board reserve policy. Finance Director Erb also provided general information regarding the 2015 Budget. He stated the projected revenues are $108.7 million which is a 0.2% decrease over the 2014 amended budget. He stated the proposed expenditures for 2015 are $116.3 million which is a 3.3% decrease from the 2014 amended budget. He stated the operating budget is $64.9 million which is an increase of 4% from the 2014 amended budget and includes a 2% adjustment for salaries. He stated the capital budget is slated to decrease22% or $27.6 million while the pension expense is expected to increase by 10.6% for a total of $9.1 million. The general fund budget is balanced as proposed and amounts to $47.1 million which is a 2.4% increase from the 2014 amended budget. The budget includes a proposed property tax levy increase of 4.2% which would amount to an average household increase of approximately $44. The average home in Mount Prospect pays approximately $1111 and with the proposed property tax levy increase that amount would increase to $1155.He stated the projected property tax increase included in the budget is 4.42%. 10/28/14 Committee of the Whole Page 1of 3 Generalcomments from the Village Board members includedthe following items: There was a suggestion to consider running some scenarios regarding lowering the property tax levy increase percentage to 0%, 1%, 2%, and 3% so the VillageBoard members could see the potential impact on revenues using those percentage increases as samples. It was also suggested that with the change in refuse and vehicle stickers’charges some relief could be considered as part of the property tax increase. It was also noted that for every 1% change in property tax levy equates to $175,000 in revenue. Community Development Department Budget Discussion: Community Development Director Bill Cooney provided information to the Village Board summarizing his department’s budget increasing 0.16%. He also noted that the department has increased its economic development efforts over the past year including additional outreach to residents through the Experience Mount Prospect and the Entrepreneurial Café. He also stated the department continues to be diligent inenforcing property maintenance regulations. He stated building permits have increased during the past year and the department anticipates utilizing funds to create downtown way findingsignage. He also stated that the department will be working with a corridor development grant from the RTA. Human Services Budget Discussion : Human Services Director Julie Kane spoke. She provided a summary of the services provided by the department including social services mission services and senior services. She provided an overview of the 2014 accomplishments including the implementation of a service tracking program and electronic record-keeping system. She anticipates putting together a client satisfaction survey for the upcoming year. She said her budget has decreased 2.5% and the operational changes in the department budget relate to the reassignment ofa village pool vehicle for departmental use. She stated the department continues to work with other agencies to find the necessary services for residents. Village Administration Budget Discussion: Administrative Intern Alex Bertolucci spoke. He provided a summary of accomplishments for 2014 including upgrades of the phone system and network upgrades with additional security standards. He also stated that the department responded to 740 freedom of information requestswhich resulted in 1850 hours of staff time to respond. He also highlighted the television awards and expanded wellness program in addition to the work underway to implement the Affordable Health Care Act regulations. He stated that 2015 goals include a security assessment and an upgrade to the Village Hall building access system. He also highlighted the Public Representation portion of the budget hadincreased 1.4% which is a result of adjustmentfor overtime of employee assisting in set-up and take down for civic eventsandtheincreased funding for the Centennial Commission.He highlighted the increase inthe Village Manager's office is inclusive of an increase in personnelservices relating to the conversion of the Administrative Intern to a full-time Administrative Analyst position and the addition of anIT network position. General comments from Village Board members include the following items: There wasa request to the provided the job description for the administrative analyst position. 10/28/14 Committee of the Whole Page 2of 3 H:\\VILM\\Cow\\2014\\MINUTES\\10-28-2014 Cow minutes.docx It was also noted that the funding for the IT position is a shift in existing personnel funds from the Police Department to IT. Finance Department Budget Discussion: Finance Director David Erb provided a summary of the departmental activities for 2014 which included a revised policy and procedures review that included the petty cash and fund balance policy updates. He also stated the department continues to develop the ERP system. He stated the budget shows an increase of 6%,but without the contractualservicesthe budget is only increased by 2.5%. He said the contractualservices increase isdue to bank fees and ambulancebilling cost increases. He also stated that there is no increase in the liability premium related to the recent settlement. Non-Departmental Budget Discussion: Finance Director David Erb provided a summary of the Villages debt service which currently stands at $51.1 million of which the library constitutes $11.4 million of that debt. He stated the Village has only 2.9% of EAV attributed to debt. He stated the Village could levy debt up to well over $100 million if it so chose to. He stated the existing debt would be paid off in 2033. He stated the pension increase is10.6% overall with the police pension increasing 13.5% and is funded at 59.9% while the firepension increase is 7.8% and is funded at 64.2%. He stated the risk management is an internal service fund and is slated to increase 3.1%. He also stated the Village is a member of the IPBC health insurance pool which has minimized the health insurance increases over the years.He also mentioned funds are allocated for a workout facility build out in the basement of the village hall with all funds coming from reserves in the health insurance funds and a refund from our insurance broker from 2007.He statedthe library has proposed a 4.3% increase with a budget of $10.8 million which constitutes a property tax increase of 2% over the prior year. General comments on the Village Board members include the following items: There is a request of staff to provide a general survey of wages and fringe benefits of area elected officials. There is also direction forstaff to have a discussion regarding village vehicle assignments and costs. V. MANAGER’S REPORT Village Manager Janonis stated the next Committeethe Whole meeting to discuss the Budget will be November 11, 2014 starting at 7:00 p.m. He also stated the next Village Board meeting is November 5 due to the election on November 4. Leaf collection is currently underway and thetree lighting ceremony is scheduled for November 26. VI.ANY OTHER BUSINESS None VII.ADJOURNMENT The meeting adjourned at 10:31p.m. DAVID STRAHL Assistant Village Manager 10/28/14 Committee of the Whole Page 3of 3 H:\\VILM\\Cow\\2014\\MINUTES\\10-28-2014 Cow minutes.docx