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HomeMy WebLinkAbout03/20/1993 FC minutesMinutes BUDGET WORKSHOP March 20, 1993 The meeting was called to order at 9:10 a.m. Trustees present were Mark Busse, Leo Floros, Paul Hoefert and Irvana Wilks. Mayor Farley arrived at 9:15 a.m. and George Clowes arrived at 10:30 a.m. Trustee Tim Corcoran was absent. Also present were Village Manager Michael E. Janonis, Finance Director David C. Jepson, Assistant Finance Director, Carol Widmer, Public Works Director Herb Weeks, Planning Director David M. Clements, Inspection Services Director, Chuck Bencic, Human Services Director, Nancy Morgan, Fire Chief Edward Cavello and Police Chief Ron Pavlock. Additionally, Richard Hendricks, Michelle Skowron, Angela Volpe, Richard Bachhuber, about 25 staff and residents and two members of the press were in attendance. II 1993/94 Budget Presentation Village Manager Michael Janonis stated that this was the second Budget Workshop and that this workshop would focus on the individual departmental and division sections of the 1993/94 Budget. Mr. Janonis pointed out that the budget review process was different than in previous years and that it would be adjusted in the future as necessary. Mr. Janonis stated that the actual budget preparation started about seven months ago with the initial discussion with the Village Board regarding financial trends for the 1992/93 fiscal year. These discussions were continued in November and December 1992 within the framework of the Mount Prospect 2000 Plan. During those meetings, parameters were established that included: - No new revenue sources. - Minor service level reductions if necessary. - Spending reductions of approximately $435,000. - Use of one-time draw -downs of fund balances. - Maintenance of acceptable year-end fund balances in the General, Special Revenue and Water Funds. Mr. Janonis said that the proposed budget included a number of capital improvements and generally conformed to the established vehicle replacement program. There were three positions eliminated in the budget, however, there was a recommendation to add three additional police officers. On the revenue side, total revenues are expected to be $41.6 million. The expected revenues will be supplemented by the use of fund balances of $650,000 in the Water Fund, $330,000 in the General Fund, and some $4.0 million in the Capital Projects Funds. The proposed 1993/94 Budget totaled $46.5 million and represented an overall 2.68 % increase over the 1992/93 Budget. Mr. Janonis stated that the proposed budget meets all of the parameters set by the Mayor and Village Board. Mr. Janonis concluded his opening remarks with an expression of concern over the rising costs of insurance, medical insurance, pensions and other State and Federal mandates. The Village is especially concerned about the possibility of tax caps without some relief from costs which the Village cannot control. Trustee Floros asked if the Village was spending an inordinate amount of time on the budget process and if the Board was demanding too much information. Mr. Janonis responded that the process is probably the most important administrative responsibility that the staff and Board has. Although it is a long process, it is not unmanageable. Mr. Janonis explained that the goal of this workshop was to review the individual departmental and divisional budgets. The intention was to review the highlights of each service area and that the departmental directors and staff were available to respond to any questions. Village Administration This service area includes the Village Board, Village Manager's Office, Communications Division and the Village Clerk's Office. Mr. Janonis stated that the budget for the Mayor and Village Board was up some 2.9% and included salaries for the Mayor and Trustees, organizational memberships and a provision for special projects. Organizational memberships totaled $26,750 and included the Northwest Municipal Conference, Illinois Municipal League and the Northern Illinois Planning Commission. The provision for special projects ($10,000) was to be used at the discretion of the Mayor and Trustees during the year. The Village Manager's Office is down some 15.2% primarily due to the reduction of one position. Mr. Janonis said the priorities of the Village Manager's Office in 1993/94 were the implementation of the Mount Prospect 2000 Strategic Plan, Downtown Redevelopment and a review of legal costs. Under the Communications Division, the major emphasis will be the installation of a new phone system and the cable franchise renewal. Additionally, $27,440 has been included in the 1993/94 Budget for the continuation of equipment replacement. The Village Clerk's Office includes the operating costs of the Clerk's Office as well as costs for the Village Newsletter. The discussion of the Village Administration focused on legal fees. Trustee Floros asked what changes are being considered. Trustee Busse asked about the possibility of bidding legal services. Trustee Hoefert asked if it was cost effective to have an attorney at the Village Hall two days per week. Trustee Wilks said she has been concerned about the responses to certain questions and supported reviewing the area of how legal services are provided. Mayor Farley stated that the Village saves money by not having an attorney at Village Board meetings. Mr. Janonis responded that there is some duplication of service and that we try to maximize value by using specialists for 2 labor negotiations, land acquisition, and zoning issues. He will bring a recommendation back to the Village Board during the year. Human Services Devartment Mr. Janonis stated he is recommending that the organizational status of Human Services be changed from a division to a department. This change reflects a recognition of the scope of the services provided and the importance of the services to the community. The total budget is up less than 1 %. Mr. Janonis added that the services provided include some 7,400 hours provided by volunteers. Additionally, the Revenue section of the budget includes $15,200 in revenue expected from various Human Services programs, up $5,700 from 1992/93. Trustee WWW commented that the change to a departmental status provides a better identity and more recognition in the community. Mayor Farley stated that the department provides valuable service to the community. One example is the TAP, or Teens and Parents, Group. He said he would like to see more emphasis placed on young people in the community and to see a coordinated effort by the Village, Schools, Churches, the Library, Park Districts and residents. Trustee Hoefert said he agreed with Mayor Farley and had no problem with the budget as presented. Trustee Wilks said she was impressed with the work of the bi-lingual social worker, especially with some of the groups on the South side of the Village. Finance Department Mr. Janonis said the Finance Department budget is up about 3.2% and includes not only finance operations but also some insurance costs. Trustee Hoefert said he would like to see a report on collection of vehicle licenses and suggested that the Village look into a direct deposit system for the Village payroll. Mr. Jepson responded that he will provide information on a direct deposit system. IIna=tion Services Department Mr. Janonis said the overall budget for Inspection Services is down 2.86%, primarily due to the reduction of one position. He said that new construction has slowed down but that the number of permits is about the same as it has been. He explained that there are more permits for remodeling and smaller jobs. Trustee Hoefert asked if Inspection Services provides information to homeowners regarding building projects and if residents knew if they needed final permits. Mr. Bencic responded that they help with life -safety issues and structural questions. Mayor Farley said he would like to see a continued emphasis on food service inspections. Trustee Wilks asked who will pick up the work of the position that was eliminated. Mr. Bencic stated that the duties had been shifted to personnel in the Engineering Division. Trustee Floros asked about the number of permits in comparison to 3 the number of inspections. Mr. Bencic responded that permits for smaller jobs do not require as many inspections as permits for new commercial or industrial buildings. Police Department Mr. Janonis stated that the budget for the Police Department is up 4.07% from 1992/93. This amount is for existing operations and does not include the provision for the three additional officers that have been recommended. Mr. Janonis ex-'ained that if the Mayor and Trustees supported the recommendation, funds would be transferred rom the contingency amount in the budget. Mr. Janonis added that he had been supplying the Board with various reports which documented the need for the additional officers. He said that the recommendation to add the officers is a measured response to problems that have been developing. Police Chief Pavlock stated that there is a gang presence in Mount Prospect and that the three new officers will allow the Village to develop a unit to address the problem. He also explained that it would free up time to expand the Walk and Talk Program and the Neighborhood Watch Program. Trustee Hoefert said he supported the three new officers and that we should address the source rather than the symptoms of the problems. Mayor Farley said there is no correlation between the number of police officers and reduced crime. However, the presence of an officer provides a perception of safety. He added that we must balance security and safety with affordability. Trustee Floros said he agreed with the decision to concentrate on the highest crime areas and that he supported the three new officers. Trustee Busse said he does not want the crime problem to get out of hand and he supports the three new officers. Trustee Wilks said she supported the three new officers but that she was concerned with the apparent de -emphasis on D.U.I. enforcement. Trustee Clowes said he supported the three new officers but that he was concerned about how they will be funded in future years. Public Works Department Mr. Janonis stated that the Public Works Department included budgets for the Street Division, Water and Sewer, Parking and Refuse Disposal. Additionally, the flood control projects were the responsibility of Public Works. The Streets and Public Property Division budget was down 2.46% due to the reduction of one position and a decrease of 10% in certain street maintenance projects. The Water Division was up 3.57% and included $507,400 for the renovation of the Downtown Water Tank. The Refuse Disposal Program is up 6.52% and reflects an 8% increase in the Arc Disposal contract effective August 1, 1993. Mr. Janonis stated that yesterday afternoon, the Village was notified that the Prospect Mead- ows/North Main flood control project was eligible for IEPA funding. The funding for this $3.8 million project will be available at 3.36% and should result in a savings of about $65,000 in interest costs the first year and up to $800,000 over the life of the project. Mr. Janonis also stated that there is a provision in the budget for initial work on the Linneman Road Project. 4 Trustee Hoefert said he would like to see an emphasis on extending the life of Village vehicles. He also said the Village should look at outsourcing services in all departments. Trustee Busse said he is concerned about falling behind in street resurfacing. Trustee Clowes said he was concerned over the potholes on major highways and that he could not justify renting vehicles for summer help. Mayor Farley said he also was concerned about the condition of Village streets and the importance of maintaining all the infrastructure. Fire Department Mr. Janonis said that the Fire Department budget for 1993/94 is up 5.2% with the higher than average increase due to personnel costs, pension costs, insurance costs, and the vehicle lease payment. Mr. Janonis added that the Fire Chief has proposed a rethinking of the Fire Department's capital purchases in an effort to address staffing deficiencies at the North station. A pumper which had been scheduled for replacement in 1993/94 has been deferred in favor of purchasing a "quint" during the 94/95 fiscal year. The quint will allow staffing flexibility that isn't available with the current pumper/ladder truck arrangement. Additionally, the replacement of Fire Prevention Inspectors vehicles with less expensive vehicles will free up additional revenue for operational costs. Trustee Busse asked for an explanation of a quint. Fire Chief Cavello stated it is a combination of a ladder truck and a pumper in one vehicle. The quint will allow one Firefighter stationed on Northwest Highway to be shifted to the station on Kensington. This will help to overcome some of the additional staffing requirements imposed by OSHA and NFPA. The Mayor and Trustees accepted the Fire Department budget as presented. Planning Department Mr. Janonis stated that the Planning Department budget includes Planning, Economic Development, Downtown Redevelopment and Community Development Block Grant (CDBG) Projects. The CDBG portion of the budget is up some $50,000 and the Downtown Redevelopment portion is down $38,000 for an overall increase of less than I %. Mayor Farley said he would like to see an increase in Economic Development activity. Trustees Floros and Busse commented that the Facade Program has been very positive and they would like to see it continued. Additionally, Trustee Busse said he thought the Business Visitation Program was a good start in improving communications with the business community. Trustee Hoefert commented that reduced requirements for variations in the Zoning Ordinance should help to reduce overall activity in the Planning Department. Mr. Janonis stated that Non -Departmental Expenditures would be reviewed at the March 23, 1993 Committee of the Whole meeting along with a conclusion of the budget review process. 5 III Adjournment The meeting adjourned at 11:50 a.m. DCJ/sm 0 Respectfully Submitted -41 David C. Jepson, Finance Director