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Home My WebLink About08/13/2019 Joint Village Board and Finance Commission Workship Minutes Mount Pax.417,7 JOINT VILLAGE BOARD AND FINANCE COMMISSON WORKSHOP MINUTES — August 13, 2019 — V Floor, Village Board Room Village Hall, 50 S. Emerson Street 1. ROLL CALL— CALL TO ORDER The meeting was called to order at 6:05 p.m. in the Village Board Room of the Village Hall, 50 South Emerson Street, by Mayor Arlene Juracek. Trustees present included William Grossi, Eleni Hatzis, Paul Hoefert, Richard Rogers, Colleen Saccotelli and Michael Zadel. Finance Commission members present included Chair John Kellerhals, Trisha Chokshi, Vince Grochocinski, Don Ocwieja, Tom Pekras and Yulia Bjekic. Pam Bazan was absent. Staff present included Village Manager Michael Cassady, Assistant Village Manger Nellie Beckner, Village Clerk Karen Agoranos, Director of Public Works Sean Dorsey, Director of Community Development Bill Cooney, Director of Finance Amit Thakkar, Deputy Chief of Police Mike Eterno, Director of Building and Inspection Services Bill Schroeder, Director of Human Services Julie Kane, Fire Chief Brian Lambel, Deputy Director of Public Works Jason Leib, Deputy Chief of Police Administration Tim Griffin, Deputy Fire Chief John Dolan, Deputy Director of Finance Lynn Jarog, Chief Technology and Innovation Officer Andy Schaeffer, Deputy Director of Building and Inspections Mary Rysavy and Management Analyst Alexander Bertolucci. 2. APPROVAL OF MINUTES Trustee Zadel, seconded by Trustee Rogers moved to approve the minutes of the Committee of the Whole meeting of July 8, 2019. The minutes were approved by unanimous voice vote. 3. CITIZENS TO BE HEARD None 4. DISCUSSION ITEMS 4.12020-2024 Community Investment Program (Preliminary) Director of Finance Amit Thakkar provided an overview of the 2020-2024 Community Investment Program (CIP). Mr. Thakkar stated the projects are categorized in the following manner: • Water/Sanitary Sewer projects • Flood Control and related projects • Street and related projects • Public buildings • Equipment Mr. Thakkar stated the CIP will be incorporated into the annual budget document. Mr. Thakkar reviewed the CIP Development process and provided an overview of funding for the major projects. Projects total $138.0 million over the five-year period and first year projects total $30.4 million. Committee of the Whole Page 1 of 4 5/14/2019 • Water/sewer fund is the largest funding source accounting for $46.0 million over the next five years. These projects are funding through bonds and other user charges. • Street improvements estimate is $29.0 million. Projects funded through vehicle stickers, sales tax, state motor fuel tax and municipal motor fuel tax • Capital improvement fund ($24 million) — projects funded through sales tax and surplus transfer from General Fund • Flood Control ($14.0 million)—funded through sales tax and transfers. Mr. Thakkar noted that Public Works is the largest contributor to the CIP ($124.7 million). Projects estimated at less than $100,000 are deemed small projects and include Economic Development projects, Planning and Zoning projects, and improvements to Information Technology. Mr. Thakkar discussed other Public Works projects that are recurring and account for just over $6.0 million in the CIP. The presentation of important projects in 2020 followed. Deputy Director of Building and Inspections Mark Rysavy presented the 2020 Community Investment Program update on the Police/Fire Headquarters project. Mr. Rysavy summarized the Police Headquarters project: • Demo began in March 2019 • New Construction began in April 2019 • Construction Completion scheduled for April 2020 Mr. Rysavy added the project is on pace to reach the project goals on time. Mr. Rysavy provided details on the project budget stating the approved construction budget is $21,900,000 and is currently trending under budget. Mr. Rysavy reviewed the Fire Headquarters project, providing the following details: • Demolition began in April 2019 • New Construction began in May 2019 • Construction completion scheduled for April 2020 Mr. Rysavy stated this project is also on target to be completed on time and is currently under budget. The approved construction budget is $7.9 million. A discussion followed regarding the ongoing issues with the Illinois Department of Transportation (IDOT)and their lack of responsiveness to the Village's requests for action. Village Manager Michael Cassady stated there is a need to escalate the situation to our legislators and requested the Mayor to intervene on behalf of the Village. It was noted that issues with IDOT are not exclusive to Mount Prospect and other municipalities are experiencing similar issues. Director of Public Works Sean Dorsey presented project highlights including big budget projects. Mr. Dorsey provided details on the following project highlights: Train Platform Extension • Inbound commuter trains to stop further east; less interruptions and better traffic flow Committee of the Whole Page 2 of 4 5/14/2019 • Funding from House Bill 62 in 2020 Bike Path Improvements - $670,000 Increase access to safe bike routes Rand/Central/Mt. Prospect Rd • Phase II Engineering Design and Construction and Construction Engineering to improve traffic flow through the triangle intersection 2021 Construction- $5.6 million and 2021 Construction Engineering- $450,000 Busse Road Reconstruction Installation of street lighting and shared use paths Cook County to complete reconstruction of roadway Levee 37 Storm Sewer Improvements • Design improvements for Burning Bush and Aspen Trails Park Storm Sewer Inspection Deep Well 4 & 11 Rehabilitation • Funding from House Bill 62 A discussion followed regarding the project summaries that were presented. Discussion included the future existence of wells in the Village. 4.2 2019 Second Quarter Review Finance Director Amit Thakkar presented the second quarter review that provides an update of the fiscal condition of the Village. This review of the Village's financial positon will also provide direction as the Finance Department prepares the 2020 budget. Mr. Thakkar provided details on the 2018 year-end results stating a surplus of$3.7 million in the General Fund. Additional items of discussion included 2019 Investment Income Update, major capital projects and planned use of Fund balance, and Economy Stabilization Fund and Pension Stabilization Fund. Mr. Thakkar identified key items pertinent to the Village. Mr. Thakkar stated the financial position of the Village remains strong adding the Village has retained its strong bond rating. The Village's fund balance also remains strong; the General Fund reserves are at $23 million. The Village maintains strong sales and use taxes and noted property taxes are no longer the Village's largest single source. In addition, the Village has gained momentum from development throughout the Village. Mr.Thakkar's discussion continued with a presentation of the Village's 2019 financial results. The original budget for total Village revenues was $144.9 million. Mr. Thakkar discussed a budget amendment that increased the total budgeted expenses and adjustments for carry-over items across multiple funds. Mr. Thakkar further discussed expenditure estimates for 2019 and stated sufficient funds are available to cover additional spending from budgeted amount. Mr. Thakkar provided details regarding the General fund and future planned uses of the fund balance that include the Levee 37 Project. Committee of the Whole Page 3 of 4 5/14/2019 Mr. Thakkar discussed options for sales tax revenue surplus over budgeted revenues through the creation of an Economy Stabilization Fund which would support improvement and maintenance projects and a Pension Stabilization Fund that would support smoothing the pension levy to avoid unexpected increases in the property tax levy. Mr. Thakkar stated future funding strategies need to be developed for Street Construction Fund, Capital Project Fund, Flood Control. Mr. Thakkar stated the 2019 property tax levy will be discussed as part of the Operating Budget later this year. 5. MANAGER'S REPORT No report 6. ANY OTHER BUSINESS None 7. ADJOURNMENT The meeting adjourned at 8:17 p.m. Respectfully submitted, Karen Agoranos Village Clerk Committee of the Whole Page 4 of 4 5/14/2019