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Home My WebLink About11/16/1995 FC MinutesFINANCE COMMISSION Minutes of the Meeting November 16, 1995 Call to Order The meeting was called to order at 7:05 p.m. Commission Members present included Chairman Richard Bachhuber, and Commission Members Joe Etchingham, Newt Hallman, Jim Morrison and Ann Smilanic. Also present were Village Manager Michael Janonis, Finance Director David Jepson, Assistant Finance Director Carol Widmer, Public Works Director Glen Andler, and Deputy Public Works Director Sean Dorsey. Commission member Tom Pekras and one resident arrived at 7:25 p.m. Commission members John Engel, Vince Grochocinski and Frank Wolfinger were absent. II Accent Minutes of November 2, 1995 The minutes of November 2, 1995 were accepted as presented. III Presentation of 1996 Budget Public Works - Public Works Director Glen Andler and DQuty Public Works Director Sean Dorse Public Works Director Glen Andler presented the proposed 1996 Public Works Department budget of $14,947,335. As he began his remarks, Mr. Andler mentioned several noteworthy accomplish- ments of the Department that were achieved in 1995. During the year the Forestry Division received the Tree City USA Award for the 11th consecutive year as well as national accreditation from the Society of Municipal Arborists. Mount Prospect is one of only eight cities in the country to receive this accreditation. Also, a total of 13.3 miles of Village roads were totally reconstructed or resurfaced and the first phase of a three-phase project to replace all of the water mains in the Lake Briarwood area was completed. The Public Works Department consists of five divisions: Streets, Forestry, Engineering, Water and Sewer, and Vehicle Maintenance. In the Streets Division the 1996 proposed funding of $1,708,575 represents no significant changes. Projects such as inlet cleaning, storm sewer repairs, pavement marking and crack filling will continue at the same level as prior years. The Forestry Division has a 1996 proposed budget of $829,035. Included in the budget is $7,500 for a continuation of the Tree Hazard Identification Program. This program has proven very successful in detecting decaying trees and limbs and removing them before they cause injury or damage. In conjunction with the tree hazard identification program, the Division is requesting $15,000 for contractual tree removal services in order to remove the decayed trees and limbs. Mr. Andler discussed several major expenditures proposed for 1996 which can be found under the Capital Improvement section of the budget. Funding for the street resurfacing program will be the same level as 1994/95 or $1.3 million. This amount should resurface approximately seven miles of streets. Mr. Andler is also requesting that the $110,000 that was appropriated in 1995 to update the Village's aerial topo maps be re -appropriated in 1996. The aerial fly -over was scheduled to take place in late fall, but Mr. Andler was advised that spring would be a better time to fly -over and so the expenditure will take place in 1996 instead of 1995. There is also a request in the budget for $100,000 for Geo -Base System software. This software will enable the Village to tie all of its computer data bases to the new Topo maps. It would also be a major tool for maintaining information on Village infrastructure. In the Water/Sewer Division, infrastructure maintenance, improvement, and replacement are continually stressed. In the 1996 Budget $198,000 is being requested for Phase Two of the Lake Briarwood water main replacement project and $247,900 for repair and renovation of the one million gallon reservoir at Booster Station No. 11. The tank was last repaired in 1986. The Refuse Disposal Division is proposing an expanded waste reduction program to include commercial recycling as well as to provide increased opportunities for multi -family properties to reduce their solid waste costs. The total 1996 proposed budget for the division is $2,741,250. The Vehicle Maintenance Division, which is responsible for keeping all Village vehicles in good working condition, has a proposed 1996 budget of $915,470. Currently, the division maintains 15 pool vehicles, 33 police vehicles and 118 public works vehicles as well as pumps, compressors and other pieces of equipment. Mr. Andler noted that $653,800 is being requested in 1996 for replacement of several pieces of mobile equipment. However, prior to finalizing specifications for bidding, each piece of equipment will be evaluated as to its current condition, past operating costs and other factors in order to evaluate the need for replacement. Other projects scheduled for 1996 are the SeeGwun/Milburn and Maple/Berkshire sanitary sewer improvements at just over $2 million and $300,000 for continued development of Melas Park. The project is being undertaken through a joint agreement with the Arlington Heights Park District and the Mount Prospect Park District. The members of the Finance Commission asked about the on-going costs to maintain the Village's water backup system in case of an emergency and whether other alternatives such as a duplicate line would be more cost effective. Mr. Janonis explained that the cost of a duplicate line had been explored and was considered too costly. Additional questions regarding the Topo Maps and the GIS system were addressed by Mr. Andler. Deputy Public Works Director Sean Dorsey explained the status of the automatic telephone reading system in the Water Division. Mr. Dorsey stated that the program began with installation of phone reads for commercial and multi -family customers and has been expanded to include some residential customers as well. A total of 1,900 telephone modules have been installed to date. 2 Non -Departmental Budgets Mr. Jepson briefly reviewed the non -departmental budgets beginning with Community and Civic Services. The proposed 1996 Budget of $181,120 includes $47,600 for Community groups, $76,200 for the 4th of July and Civic Events and $57,320 for Holiday Decorations. The Capital Improvement Projects proposed budget for 1996 is $7,254,620 and includes Village improvements, flood control projects, motor equipment replacement and other construction projects. Many of these projects and purchases were discussed during departmental presentations. In 1996 the total amount budgeted for debt service is $3,434,510. Mr. Jepson explained that the Village pays for the outstanding debt in five ways: property tax, 1/4 home rule sales tax for flood projects, 1/4 home rule sales tax for street repairs, water revenues and special service areas. The pension fund portion of the budget reflects pension and disability payments that are made from three Village administered pension plans. They are the Police and Fire Pension Funds and payments to three retired firefighters who were members of the Forest River Fire Protection District when the Village took over the District in 1970. Under insurance and contingencies, casualty and property insurance is budgeted at $610,050. This represents a decrease of $101,694 from 1994/95 to 1996. However, the Medical Insurance Program is expected to increase from $1,952,059 in 1994/95 to $2,448,900 in 1996, an increase of 15.3%. Mr. Jepson noted that the increase in medical insurance costs continues to be an area of great concern. The members of the Finance Commission discussed how to address the significant issues in the proposed 1996 budget. The consensus of the members was to address longer term issues as well as the current budget. Some of the issues identified were medical insurance costs, the proposed renovation of Village Hall, a long-term solution to funding capital improvements and a plan to formalize the decision-making process in determining when to replace vehicles and other equipment. It was decided that another meeting would be held on Monday, November 20 in order to allow all Commission members an opportunity to make recommendations on the budget and the larger issues facing the Village. IV Adjournment The meeting was adjourned at 9:40 p.m. The next meeting will be held at 7:30 p.m. on Monday, November 20, 1995. Respectfully submitted CLW/sm 3 Carol L. Widmer, Assistant Finance Director