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Home My WebLink About10/10/2017 COW Special Meeting Agenda10/11/2017 BoardDocs® Pro Tuesday, October 10, 2017 Special Meeting of the Committee of the Whole N Joint Village Board and Finance Commission Workshop- 6:30 P.M. Mount Prospect Village Hall 50 S. Emerson Mount Prospect, IL 6:30 p.m. 1. ROLL CALL Subject 1.1 Village Board of Trustees Meeting Oct 10, 2017 - Special Meeting of the Committee of the Whole — Joint Village Board and Finance Commission Workshop- 6:30 P.M. Category 1. ROLL CALL Type Procedural Subject 1.2 Finance Commission Meeting Oct 10, 2017 - Special Meeting of the Committee of the Whole — Joint Village Board and Finance Commission Workshop- 6:30 P.M. Category 1. ROLL CALL Type Procedural 2. APPROVAL OF COMMITTEE OF THE WHOLE MINUTES Subject 2.1 APPROVAL OF MINUTES FOR THE COMMITTEE OF THE WHOLE MEETING OF SEPTEMBER 12, 2017 Meeting Oct 10, 2017 - Special Meeting of the Committee of the Whole N Joint Village Board and Finance Commission Workshop- 6:30 P.M. Category 2. APPROVAL OF COMMITTEE OF THE WHOLE MINUTES Type Action File Attachments 09-12-2017 COW_Minutes.pdf (27 KB) 3. CITIZENS TO BE HEARD 4. DISCUSSION ITEMS http://www.boarddocs.com/il/vomp/Board.nsf/Public 1/3 10/11/2017 BoardDocs® Pro Subject 4.1 2018 Budget Discussion, 2018-2022 Community Investment Program Meeting Oct 10, 2017 - Special Meeting of the Committee of the Whole — Joint Village Board and Finance Commission Workshop- 6:30 P.M. Category 4. DISCUSSION ITEMS Type Discussion Goals Information The development of a formal five-year Community Investment Program (CIP) provides a comprehensive view of the Village's capital needs for consecutive rolling five-year windows. The CIP also addresses the Government Finance Officers Association (GFOA) best practice recommendation for preparing and adopting a multi-year capital planning strategy. The CIP is a plan for capital expenditures over the upcoming five years. Capital expenditures are generally defined as the purchase or construction of long-lived, high-cost, tangible assets. For Village purposes, "long-lived" implies a useful life in excess of one year. "High-cost" means that the project amounts to at least $25,000. "Tangible" assets exclude contractual services except those that are necessary for putting a tangible asset into service. The guidelines for capital expenditures have been relaxed in certain instances to include certain items in the CIP that otherwise would not meet our basic definition of a capital item. For the first instance, departments were asked to state any need for an addition to the Village's vehicle fleet as a CIP project request even if the cost of the vehicle concerned would be less than $25,000. This convention is used because the purchase of a vehicle represents a substantial commitment on the part of the Village. Once a vehicle is recognized as an operational need, lease payments to the Vehicle Replacement Fund (internal service fund charges) become necessary in the budget programs of the operating departments so as to provide for the replacement of the vehicle. In other words, the financial means to replace a vehicle is programmed in the budget the year following its purchase. Given the continuing financial implications of adding a vehicle to the Village fleet, proposals for additions to the fleet are closely scrutinized. In addition, Information Technology (IT) related projects are now part of the CIP. Many of these projects have costs that fall below the $25,000 threshold, but are being included to coordinate IT purchases among the different departments. This ensures that additions to the computer system are picked up in the computer replacement program, similar to the way replacement vehicle purchases are made using the vehicle replacement fund. The second instance of relaxation of the capital expenditure guidelines relates to certain high-cost projects that do not necessarily give rise to a tangible asset but are related to maintaining capital assets. This has been done simply to document the other large capital -related expenses that confront us. The best examples of such a project included in this CIP are the Street Resurfacing Program and Water/Sewer Main Replacements and Rehabilitation. A project's inclusion in the CIP does not, in and of itself, commit the Village to funding and accomplishing it. As stated above, the CIP identifies our capital needs. Available funds, taxing capacity, and debt capacity may require that some projects ultimately be deferred beyond the years in which they are initially programmed for accomplishment in the CIP. Even so, the CIP will have served its purpose as a planning tool. However, projects programmed for the first year of the CIP (the year 2018 in the case of this 2018-2022 document) take on special importance because they must be addressed in the Village operating budget. The CIP review process for 2018 ran concurrently with the development of the operating budget. For the 2018-2022 CIP, the operating departments submitted their project requests to the Finance Department. The Finance Department compiled the project requests. A review team consisting of staff from the Village Manager's Office and Finance Department then meet with each of the departments to discuss the requests. Based on feedback from the reviewers in the GFOA Distinguished Budget Award program, the CIP is now incorporated into the budget document rather than being published as a stand-alone document. Most of the project requests included in the 2017-2021 CIP appear again in the 2018-2022 document. In some cases, a project scheduled for a particular year has been accelerated or deferred based upon the staff's reassessment of Village needs. In other cases, the cost of a project may have changed due to our obtaining more complete information about it. Refinements such as these are an appropriate part of the capital projects planning process. The CIP remains a key working document in the management of Village Finances. http://www.boarddocs.com/il/vomp/Board.nsf/Public 2/3 10/11/2017 BoardDocs® Pro This document is updated annually based on needs of the community identified through the strategic planning process. The CIP document is organized by project category. Categories capture projects with similar function/purpose. An example of a category is Water System or Computer Hardware/Software. The total cost for all proposed projects in the 2018-2022 CIP is $116,757,309. Of the total $116.8 million budget for the 2018-2022 capital plan, Category 705 - Resurfacing - Curbs/Gutter/Sidewalks accounts for $34.4 million or 29.5 percent of the five-year total. Water System Improvements - Category 700, account for $29.9 million or 25.6 percent of the total. First year total projects (2018) are projected to be $18.6 million. The Proposed 2018 Budget document, which includes the complete 2018-2022 CIP, was distributed to the Finance Commission and Village Board on October 6, 2017. The document was also made available on the Village website and in the Village Clerk's Office. Departmental representatives will make a presentation on the projects included in the five-year plan and will be on hand to answer questions and facilitate discussion. Below is the link to the Proposed 2018 Budget Document; tab seven (7) contains the complete 2018-2022 Community Investment Program. Proposed 2018 Budget. Alternatives 1. Joint Village Board and Finance Commission discussion on the 2018-2022 Community Investment Program as part of the review process for the Proposed 2018 Budget. 2. Action at discretion of Village Board. Staff Recommendation Joint Village Board and Finance Commission discussion on the 2018-2022 Community Investment Program as part of the review process for the Proposed 2018 Budget. 5. MANAGER'S REPORT Subject 5.1 AS SUBMITTED Meeting Oct 10, 2017 - Special Meeting of the Committee of the Whole - Joint Village Board and Finance Commission Workshop- 6:30 P.M. Category 5. MANAGER'S REPORT Type 6. ANY OTHER BUSINESS 7. ADJOURNMENT ANY INDIVIDUALWHO WOULD LIKE TO ATTEND THIS MEETING BUT BECAUSE OF A DISABILITY OR NEEDS SOME ACCOMODATION TO PARTICIPATE, SHOULD CONTACT THE VILLAGE MANAGER'S OFFICE AT 847/392-6000, EXTENSION 5327 http://www.boarddocs.com/il/vomp/Board.nsf/Public 3/3