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HomeMy WebLinkAbout01/28/1986 COW MinutesMINUTES COMMITTEE OF THE WHOLE FEBRUARY 11, 1986 I. ROLL CALL The meeting was called to order at 7:31 p.m. Present at the meeting were: Mayor Carolyn H. Krause; Trustees Ralph Arthur, Gerald Farley, Leo Floros, George Van Geem and Theodore Wattenberg. Absent from the meeting was Trustee Norma Murauskis. Also present at the meeting were: Village Manager Terrance Burghard, Assistant to the Village Manager Michael Janonis, Director of Finance David Jepson, and Administrative Intern Michael Steklac. Also present was one person from the print media. II. MINUTES The Minutes of the Committee of the Whole meeting of January 28, 1986 were accepted and filed. III. OPENING REMARKS Mayor Carolyn Krause addressed fellow Board members, those citizens present at the meeting and those watching the Budget Hearing on cable television as to the philosophy of the Board with regard to televising Budget Hearings and she also reviewed the- schedule for Budget meetings that would follow. 'At the request of Trustee Ralph Arthur, the Mayor explained the difference between the different functions of the Village Board when they meet as a Committee of the Whole as opposed to meeting as_ a regular Board. IV. CITIZENS TO BE HEARD There being no citizens present desiring to be heard, the Committee moved on to the next item of business. V. 1986-1987 BUDGET HEARING Village Manager Terrance Burghard reviewed with Committee membersthev1986-1987 Budget as a whole. Mr. Burghard stated that the proposed 1986-1987 Budget was $26,841,945 and represented a 4.17% increase over the prior year. With regard to- the prior year, 1985-1986, Mr. Burghard pointed out that the Village had realized a number of significant achievements. These included-: - Long-term supply of Lake water. - Significantly increased road repairs. - Dramatic downtown facade improvements. - Established Tax Increment Financing District. - Completion of a million dollar sewer repair program. - Modernization of our water control system: - Computerized Police and Fire dispatch records system. - Finalization of an area -wide refuse disposal plan. - Completion of the Opus annexation. - Establishment of the Arts Council of Mount Prospect. - Receipt of a Certificate of Financial Reporting - A continuing stable tax rate. In discussing revenues for the 1986-1987 Budget, Mr. Burghard recommended that additional revenues be sought from an increase in vehicle licenses, business and liquor licenses and the real estate tax. The proposed increases were modest and would result in Mount Prospect fees being at the average of surrounding communities. The proposed real estate tax rate for 1986-1987 represents a 2.2% increase over the 1983 rate and remains 15% below the 1975 tax rate. Mr. Burghard also reported that the Village would be seeking an increase in water and sewer rates to become effective in September, 1986. Major expenditures for the proposed 1986-1987 Budget include the addition of nine positions to the Village staff among which include three Firefighter/Paramedics, two Police Officers, two Community Service Officers, full-time maintenance position and the conversion of part-time positions in Finance and Human Services to full- time positions. Mr. Burghard pointed out that for the last eight years, the Village has operated with fewer full-time positions than were authorized in 1977. The increase in service calls to the community and the necessity to intensify maintenance on existing facilities and projects warrants such an increase. The other major expenditure in the proposed Budget was in the area of increase insurance costs. This is a result of the much publicized "liability insurance crisis" and has resulted in an increase of $255,000 in Risk Management costs and a corresponding reduction in limits of liability. Mr. Burghard reported that during the 1986-1987 fiscal year, continuing emphasis will be placed on such projects as Tax Increment Financing., downtown improvements, multi -family rehabilitation, landlord/tenant responsibilities, cable television and maintenance of public improve- ments. Mr. Burghard also expressed the need for the Village to better forecast future revenues and expenses in light of continued Federal financial cutbacks in such areas as Revenue Sharing and Block Grants. 2. Revenues. Mayor Krause announced that the Village of Mount prospect and its Finance Director David Jepson had been awarded a Certificate of Conformance for Financial Reporting from the Municipal Finance Officers Association of Canada and the United States. The Mayor noted that this is a very prestigious award and that a relatively small percentage of municipalities achieve such a Certificate. The Mayor and Board thanked Mr. Jepson for his excellent work in this area. Finance Director David Jepson reviewed with Committee members the expected Revenues for the 1986-1987 Budget year. Total Revenues for all Village funds, excluding the Librar, are expected to be $25,272,030 in 1986-1987 compared to last year's total of 23,798,170 for an overall increase of $1,473,860. -2- Sales Taxes, budgeted at $4,700,000, are the second largest source of revenue and makes up approximately 19% of total budget revenues. Mr. Jepson reported that an accurate comparison of 1986-1987 and 1985-1986 property taxes cannot be made due to a $611,166 abatement in the 1984 Tax Levy that reduced the 1985-1986 budgeted property taxes. Mr. Jepson pointed out that property taxes are budgeted on the basis of expected receipts not the amount levied. Intergovernmental revenues are anticipated to be $995,810 less in 1986-1987 than in the previous year as a result of decreased funding from the EPA Grant, Federal Revenue Sharing and Community Development Block Grant sources. Mr. Jepson stated that other expected revenue includes receipts from the sale of property, fines, shared -cost programs and miscellaneous sources. Revenues from fees are expected to increase $396,560 due largely to an expected increase in receipts from vehicle and business licenses as well as other licenses and permits. 3. Public Representation and Administration. Village Manager Terrance Burghard discussed briefly the Public Representation Budget which includes expenses related to the activities of the Mayor and the Village Board as well as other Boards and Commissions serving the Village of Mount Prospect. The Manager reported that there had not been significant changes in the Budget for Public Representation over the prior year but did note that 520,000 had been budgeted in anticipation of the need to test for new Fire and Police recruits through the Board of Fire and Police Commissioners. Mr. Burghard then reviewed with Committee members the Village Manager's Budget which reflects a decrease of $67,110 over the 1985-1986 Budget. The net decrease is due mainly to the completion of Capital Equipment purchases in the Cable Television Division. The Manager reported that other costs such as legal services, training and office supplies remained relatively stable. Mr. Burghard also noted that the Manager's Budget currently contains a line item for salary adjustments in the amount of $190,000. He explained that this amount was ,for general salary adjustments for employees not currently under Collective Bargaining Agreements including the Fire Department. Those Departments with Collective Bargaining Agreements had wage increases already included in their particular budgets. Once salary adjustments were made, the proper amounts would be reflected in the individual Department Budgets. The Committee of the Whole questioned the Assistant to the Village Manager in depth regarding the progress of the Landlord/Tenant Ordinance. Mike Janonis stated that the program had been successful in several areas including basic code enforcement, security deposits and mediating specific landlord/tenant conflicts. Mr. Janonis noted, however, that the program was not effective in educating or organizing tenants in terms of their rights and obligations and the exercise of those rights. It was the opinion of Mr. Janonis that additional help was needed in this latter area and that this could be accomplished through the contracting of the services of an independent tenant association. The Mayor and the Committee members were supportive of such an idea and asked that the concept be studied and a proposal worked up. -3- 4. Finance DeI artment and Village Clerk's Office. Finance Director David Jepson reviewed with Committee members the Budget for the Finance Department and Village Clerk's Office. Mr. Jepson pointed out that the Department's Budget of $1,435,825 indicates an increase of $187,375 over the 1985-1986 Budget. Mr. Jepson pointed out that the overall increase is due to higher costs for insurance, data processing and employee benefits. Significant requests in the Finance Department's Budget included the conversion of one part-time clerk's position to a full-time position to handle the increased volume of activity in the Department of Finance with regard to both customer service and billing demands. Also included in the Budget was $10,000 for a proposed study to evaluate the Village's computer needs. Capital Expenditures for 1986-1987 included an MICR encoding machine, a word processing printer, check signer, form bursters and telephone equipment. Committee members generally praised Mr. Jepson for his work in the Finance Department and his achievements over the past two years. Trustee Leo Floros along with Trustee Skip Farley did, however, express concern regarding the request for additional staff members and that they be allowed to reserve approval of all increased staffing equests until the entire Budget had been reviewed. VI. MANAGER'S REPORT Village Manager Terrance Burghard reported that the southern interconnection with the JAWA system had been opened and that the Village was receiving approxi- mately 65 of its water from Lake Michigan. Mr. Burghard warned that because of changes in flows within some of the larger water mains that residents could possibly experience problems with rust and quality water. Mr. Burghard stated that this was a temporary problem and that within a few days the rust and cloudiness would dissipate. Mr. Burghard also reported that negotiations continued for property acquisition in the TAX INCREMENT FINANCING DISTRICT. Mr. Burghard indicated that he would be developing a status report on the TIF project and would be presenting some of his concerns to the Board for their consultation and direction. VII. ANY OTHER BUSINESS There being no other business to discuss before the Committee of the Whole, the Committee moved on to the next item of business. VIII. ADJOURNMENT There being no further business to come before the Committee of the Whole,_ the meeting was adjourned at 9:45 p.m. MEJ/rcw Respectfully submitted, MICHAEL E. JANONIS Assistant to the, Village Manager IL41