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HomeMy WebLinkAbout03/18/1993 FC minutesFINANCE COMMISSION Minutes of the Meeting March 18, 1993 Call to Order The meeting was called to order at 7:30 p.m. Present were Chairman Richard Bachhuber, Commissioners Paul Davies, John Engel, Vince Grochocinski, Newt Hallman, James Morrison, Tom Pekras, Ann Smilanic, and Earl Sutter. Also present were Village Trustees Mark Busse and Irvana Wilks, Village Manager Michael Janonis, Finance Director David Jepson, Assistant Finance Director Carol Widmer, Public Works Director Herb Weeks, Deputy Public Works Director Glen Andler, Police Chief Ron Pavlock, Deputy Police Chief Ron Richardson, Deputy Fire Chiefs Del Ulreich and Lonnie Jackson, Human Services Director Nancy Morgan, Assistant Human Services Director Jan Abernethy, Inspection Services Director Chuck Bencic, Engineering Coordinator Jeff Wulbecker, and Health Coordinator Bob Roels, and one member of the press. Fire Chief Ed Cavello arrived at 8:35 p.m. II Approval of Minutes The minutes of the March 11, 1993 meeting were approved as amended. III 1993/94 Budget Review Village Manager Michael Janonis began the meeting with a review of his remarks to the Finance Commission at the first budget meeting which was held on March 11, 1993. At that meeting Mr. Janonis stated that the proposed budget was the result of parameters established during discussions of the Mount Prospect 2000 Plan. The parameters included no new revenue sources, minor service level reductions, spending reductions of approximately $435,000, use of one-time draw -downs of fund balances, and maintenance of acceptable year-end balances in the General, Special Revenue, and Water Funds. The proposed 1993/94 Budget totals $46.5 million and represented an overall 2.68% increase over the 1992/93 Budget. This budget meets all of the parameters set by the Mayor and the Village Board. Mr. Janonis explained that this meeting would focus on the individual department and divisional budgets. Village Administration This area includes the Village Board, Village Manager's Office, Communications Division and the Village Clerk's Office. The budget for the Mayor and Village Board is up 2.9% and includes salaries for the Mayor and Trustees, organizational memberships and a provision for special projects. The Village Manager's Office is down 15.2% primarily due to the reduction of one full-time position. The priorities for the Village Manager's Office in 1993/94 will be implementation of the Mount Prospect 2000 Strategic Plan, Downtown Redevelopment, and a review of legal services. The budget for the Communications Division is up 3.1 % and includes $30,000 for the franchise renewal process which begins three years before it comes up. Installation of a new telephone system will also be a priority. The Village Clerk's budget is up 2.2 % and includes operating costs as well as the Village Newsletter. The members of the Finance Commission requested information on how many residents actually have Cable TV and of those how many actually watch Village meetings. Mr. Jepson indicated that there were plans to survey the residents as part of the upcoming franchise renewal process. Human Services Department Mr. Janonis reported that he is recommending a change in status from division to department for Human Services in recognition of the scope and importance of the services provided to the Community. Due to a change in the fee structure approximately $5,700 will be added to revenues from the Human Services Department in 1993/94 while the total budget will increase less than 1 %. In response to an inquiry from Finance Commissioner Newt Hallman, Nancy Morgan explained some of the proactive approaches being taken to get to the root of problems in the Community. The STEP -Teen program and a VISIONS program have been formed to more adequately address social, economic, and financial issues of residents. Finance Department The Finance Department, as all Village Departments, is committed to excellence in operations. During the past year the Finance Department achieved a 99.99% collection ratio for water and sewer bills, a 99.8% collection ratio for business licenses and an additional $30,000 through the Vehicle License Follow -Up Program. Members of the Finance Commission asked if there could be savings to the Village in both time and money if a Purchasing Agent were hired. Both Mr. Janonis and Mr. Jepson agreed that there would be increased efficiency with a Purchasing Agent as well as savings in time spent in the bid process. However, Mr. Janonis stated that the current focus was to put people on the front line rather than in support services such as purchasing. Inspection Services Department The proposed 1993/94 budget for this department is down 2.86% mainly due to the elimination of one full-time position, the traffic technician. The emphasis in Inspection Services has shifted from new development to home improvements and to property maintenance. The Village is committed to maintaining the housing stock and enforcing the property maintenance code. The Engineering Division is performing road design in-house and overseeing the $1.2 million road resurfacing and reconstruction projects. 2 Police Department The budget proposed for the Police Department is 4.07% higher than the 1992/93 budget. This amount is for current operations and does not include a provision for the three additional officers being recommended by Mr. Janonis. Mr. Janonis further stated that if the Village Board supported the addition of the officers then funding of $120,000 for the first year would come from contingency funds currently in the budget. The Village Board would, however, have to provide a permanent source of funding in subsequent years. The Finance Commission asked for additional information on the need for the officers and Mr. Janonis recommended that a future meeting be devoted to a presentation from Chief Pavlock regarding the depth and breadth of gang problems in Mount Prospect. Chief Pavlock went on to explain that the addition of three officers would enable the Department to focus on status offenses such as youth drinking and allow for more surveillance tactics. This focus would emphasize zero tolerance of gang activity in Mount Prospect. Fire Department Mr. Janonis stated that the 1993/94 budget for the Fire Department is up 5.2%. The increase is due to fixed costs such as personnel costs, pension costs, insurance costs and the vehicle lease payment. The Fire Department is seeking to maintain its Class II Fire Rating and will be looking at some staffing needs at the North Station. The Fire Chief has proposed deferring the purchase of a pumper which had been scheduled for replacement in 1993/94 and instead purchase a "quint" in the 1994/95 fiscal year. Fire Chief Cavello explained that the quint is a combination of a ladder truck and a pumper in one vehicle. This vehicle will allow the shift of one firefighter from Northwest Highway to the Kensington Station to help meet OSHA and NFPA staffing requirements. There was some discussion of workers compensation costs. In response to an inquiry from Earl Sutter, Chief Cavello stated that the Fire Department emphasizes educational programs and proper lifting methods as a way to try to keep costs down. Ann Smilanic asked about incentive pay. Chief Cavello explained that incentives are fixed amounts paid for specialty education and training. These amounts are negotiated during the collective bargaining process. Mr. Jepson said information on Fire Department incentives will be provided at a future meeting. Planning_ Department The Planning Department budget for 1993/94 will increase less than 1 %. The CDBG portion of the budget is up $50,000 and the Downtown Redevelopment portion is down $38,000. The department's functions including Planning, Economic Development, Downtown Redevelopment and Community Development Block Grant (CDBG) Projects. In the discussion of the Planning Department's activities, Dave Clements reported that the revised Zoning Code has been drafted and will be presented to the Village Board within the next 90 days. 3 Public Works Department Mr. Janonis stated that the Public Works Department included budgets for the Street Division, Water and Sewer, Parking and Refuse Disposal. Also, the flood control construction projects are the responsibility of Public Works. The Street Division budget is down 2.46% due to the reduction of one position and a decrease in certain street maintenance projects. The Water Division budget is up 3.57 % and includes $500,000 for renovation of the Downtown Water Tank. The Refuse Disposal Program is up 6.52% and reflects the 8 % increase in the Arc Disposal contract effective August 1, 1993. Comments from members of the Finance Commission centered on the concern for maintaining the streets in the Village. Non -Departmental Expenditures David Jepson briefly reviewed the non -departmental portion of the budget. Mr. Jepson explained that the Village will be undertaking a position classification study this year and some monies have been set aside in the Manager's budget for salary adjustments which may be recommended as a result of the study. The capital improvements planned for this budget year include completion of the Police and Fire Building, Flood control projects covering the North Main/Prospect Manor Sewer Project and the Hatlen Heights and Fairview Gardens Sanitary Sewer Projects to be financed by the Illinois EPA Loan Fund. Under the Debt Service section of the Budget, Mr. Jepson reported that the total Debt Service expenditures for 1993/94 of $2,973,065 are made up of $2,883,605 for General Obligation Debt and $89,460 for Special Service Area Debt. Pensions and Insurance are also showing increases. Total insurance costs are expected to be $2,700,000 in 1993/94 compared to budgeted costs of $2,512,000 in 1992/93. Members of the Finance Commission unanimously approved the proposed budget subject to recommendations presented to the Village Board prior to the final budget hearing. A copy of those recommendations is attached. The meeting was adjourned at 12:30 p.m. The regular Finance Commission meeting scheduled for March 25, 1993 was cancelled. CLW/sm Enclosures 4 Respectfully submitted Carol L. Widmer Assistant Finance Director