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HomeMy WebLinkAbout10/11/2016 Joint Financial Planning workshop FINANCIAL PLANNING WORKSHOP MINUTES JOINT MEETING with VILLAGE BOARD and FINANCE COMMISSION October 11, 2016 I. CALL TO ORDER The meeting was called to order at 6:34 p.m. in the Village Board Room of the Village Hall, 50 South Emerson Street, by Mayor Arlene Juracek. II. ROLL CALL Trustees present included Paul Hoefert, Steven Polit, Richard Rogers, Colleen Saccotelli, and Michael Zadel. Finance Commission members present included Commission Chair John Kellerhals, Pam Bazan, Trisha Chokski, Vince Grochocinski, Thomas Pekras and Mary Rath. Staff present included Village Manager Michael Cassady, Assistant to the Village Manager Nellie Beckner, Community Development Director William Cooney, Public Works Director Sean Dorsey, Finance Director David Erb, Police Chief Timothy Janowick, Human Services Director Julie Kane, Fire Chief Brian Lambel, Chief Technology and Innovation Officer Andrew Schaeffer, Human Services Deputy Director Jan Abernethy, Fire Deputy Chief John Dolan, Finance Deputy Director Lynn Jarog, CCC Coordinator Victoria Bran, Fire Marshal Brian Loomis, Fire Administrative Coordinator Sarah Gonet and Administrative Analyst Alexander Bertolucci. III. APPROVAL OF MINUTES FOR JOINT FINANCIAL WORKSHOP OF JULY 12, 2016 Village Board: Motion made by Trustee Hoefert seconded by Trustee Polit. Minutes were approved. Finance Commission: Motion made by Commissioner Grochocinski seconded by Commissioner Chokski. Minute were approved. IV. CITIZENS TO BE HEARD None V. 2017 BUDGET DISCUSSION 1) Opening Remarks Mayor Juracek provided welcoming remarks and stated this is the first of two financial planning workshops to discuss the 2017 budget. 2) Budget Overview Finance Director Erb provided a general overview of the budget. He stated the General Fund is anticipated to end 2016 with a surplus of $830,000. Tax levy increase for the 2017 budget is lower than initially proposed since revenue growth can cover the 1% required to fund the SAFER grant. Mr. Erb also reviewed utility rates of which the water/sewer rate increases 4% and the forecasted Refuse Collection fee increase of $15 will not be required for 2017. He stated the general fund balance is in a position to 10/11/16 Committee of the Whole Page 1 of 4 transfer $500,000 to support mid-range capital projects. He also stated updated actuarial information has required increases to public safety pensions. These increases will be supported by using current revenues. He reviewed budget document th enhancements, that the Village received GOFA Distinguished Budget Award for the 25 year, and the Village’s “AA+” Standard and Poor’s rating was confirmed in 2016. Finance Director Erb presented the preliminary results of the 2016 Budget and provided the following in response to questions from the Village Board and Finance Commission. Expect revenue adjustment with next budget amendment. December 31 fund balance expected to be at 33.9%. The Village’s Fund Balance Policy outlines procedures to manage reserves when they reach above the 30% and 50% fund balance levels. Water billing revenue is decreasing. Automatic Meter Readers, system efficiency improvements and conservation measures are contributing factors to the decrease in water consumption. New revenues generated at Randhurst Village are returned to the Village. Revenue Bonds: the Village is not at risk to pull money to make payments. He summarized the 2017 proposed budget. Total budgeted revenues increase 1.6% from 2016 amended budget. Intergovernmental revenues increase 14.4% due to sales taxes and state income and use taxes experiencing growth. He reviewed revenues by source and their percentage of total revenue (e.g. 25.7% Charges for Service, 24.9% Intergovernmental Revenue, 17.2% Property Taxes). He also presented that 2017 expenditures decreased by 4% from 2016 amended budget due to timing and completion of capital projects. The budget incorporates a 2.27% property tax increase for a total levy of $18,727,573. Staff has and will continue to maintain a multistep plan to respond to potential impacts from the State budget impasse. Finance Director Erb provided the following in response to questions from the Village Board and Finance Commission. Pension payments include liability costs. Contributing factors to the decrease in the capital budget is timing and completion of recent larger than average projects. State income: there were a few onetime events that caused larger payments and should not expect that to continue in the future. 2016, 2017, and 2018 shows the structural budget imbalance has been eliminated. Provided background on the upcoming refunding of the 2009 series bonds. He also provided an overview of the forecast budget for 2018 and reviewed the proposed 2016 tax levy of 2.27% or for a home with an EAV of $95,386 (Property Value of $350,000) a $27 increase. General comments from the Village Board and Finance Commission members included the following items: Good fiscal news and continue conservative approach. There was general discussion regarding the fund balance for the general fund. There was a question regarding the difference between the previous forecasted 2016 property tax levy (3.27%) and the current proposed 2016 property tax levy (2.27%) or $80,000. 10/11/16 Committee of the Whole Page 2 of 4 3) Human Services Department Human Services Director Julie Kane provided an overview of the Human Services budget and highlighted services provided by the Department. The department’s budget increased 2.2% ($24,293) from 2016. Some 2017 initiatives to highlight include the addition of a part-time/as needed Public Health Nurse position, Health Insurance Portability and Accountability Act (HIPAA) Risk Assessment, contracting with a language and sign interpreter service, and implementation of case management software. She stated projected 2016 revenues total $49,850 which is collected through various service fees, grants, agreements and donations. She also reviewed some 2016 accomplishments and 2017 department objectives. Human Services Director Kane provided the following in response to questions from the Village Board and Finance Commission: Staff plans to continue the American Red Cross Shelter Operations training with developing a shelter plan and conducting hands on training to set up a shelter. The department is looking to host parenting education classes designed as couple programs available in Spanish and English. Reviewed Food Pantry program and required financial assessments prior to distribution. The legacy case management software and how new software would provide secure remote access. State budget cuts have impacted the department indirectly. It is becoming increasingly difficult to link people to the appropriate resources and service providers due to limited state funding. Reviewed the referral process between police, fire, community development and human services for crisis situations or situations where a crisis is pending but with intervention can be averted. 4) Community Development Department Community Development Director William Cooney provided a general overview of the department’s 2017 Budget, Strategic Plan Accomplishments and 2017 Initiatives. The department’s budget increased 0.4% ($9,954) from 2016 and contributing factors are reorganization and personnel changes. The budget also reflects a $15,000 increase in the Economic Development Program. This allocation would provide funding for the Village to participate in Next Level Northwest which is a partnership of eight northwest suburban communities to establish a regional business accelerator partnership to assist stage 2 companies. He provided an overview of recent annexations, the demolition of central plaza and preparing the site for new development, zoning code and sign code updates, and initiating the Comprehensive Plan update. He highlighted that vacancy in Kensington Business Center is down to 9% and industrial vacancy throughout the Village down to 4%. Community Development Director Cooney provided the following in response to questions from the Village Board and Finance Commission: Expanded monitoring of property maintenance standards throughout the Village by changing a part-time inspector to full-time. Explained the trends in work load measures relating to changes in planning and zoning activity. Provided updates on several developments and businesses in the Village. 10/11/16 Committee of the Whole Page 3 of 4 Discussed the Rand Road Corridor Study and initial concept changes to the Rand Rd, Kensington Rd, and Elmhurst Rd (Rt 83) intersections to improve traffic movement in the least impactful way. The Village’s economic development initiatives and resources are shared through multiple department budgets. 5) Fire Department Fire Chief Brian Lambel provided an overview of the Fire Department budget. The proposed budget amount for 2017 is $15,044,830 and reflects a 4.4% increase. A significant amount of the increase is related to pension increases. The department continues to maintain its high emphasis on departmental training, safety, succession planning and intergovernmental agreements. Chief Lambel summarized 2017 significant budget increases. He also reviewed 2016 accomplishments. 2017 department initiatives include implementing Target Solutions software to consolidate training documents into one program that would also assist with State Fire Marshal audits. Other primary initiatives are to expand the fire safety education program and join the Northeastern Illinois Public Safety Training Academy (NIPSTA) to access additional training opportunities. Fire Chief Brian Lambel provided the following in response to questions from the Village Board and Finance Commission: Budget increases to the fire safety education program are to pay for materials and printing costs associated with providing the program in multiple languages. Current self-contained breathing apparatus (SCBA) equipment is two regulations behind current standards and this necessitates that new equipment be purchased all at once. Discussed the residential sprinkler program and its successes. Provided information regarding the SCBA grant the department applied for the past two years. Explained that the changes in the emergency preparedness budget are related to department restructuring planned for 2017 and changing the Fire Marshal position to a Deputy Chief of Administration. Reviewed auto and mutual aid agreements with neighboring municipalities. VI. ANY OTHER BUSINESS None. VII. ADJOURNMENT The meeting adjourned at 9:53 p.m. ALEXANDER BERTOLUCCI Administrative Analyst 10/11/16 Committee of the Whole Page 4 of 4