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HomeMy WebLinkAbout3.1 MinutesJOINT VILLAGE BOARD AND FINANCE COMMISSION SPECIAL WORKSHOP — 6:00 PM (Tuesday, October 13, 2020) 1. Roll Call 1.1 Village Board 1.2 Finance Commission Mayor Juracek called the Joint Village Board and Finance Commission Workshop to order at 6:02p.m. via remote video conference. Village Manager Michael Cassady was physically present at Village Hall, 50 S. Emerson Street, Mount Prospect, Illinois. Upon roll call by the Village Clerk, the following members of the Mount Prospect Village Board and Finance Commission were present by via video remote meeting platform, GoToMeeting: Mayor Arlene A. Juracek, Trustee William A. Grossi, Trustee Eleni Hatzis, Trustee Paul Wm. Hoefert, Trustee Richard F. Rogers, Trustee Colleen E. Saccotelli, Trustee Michael A. Zadel, Commissioner Kenneth Arndt, Commissioner Pam Bazan, Commissioner Yulia Bjekic, Commission Chair Trisha Chokshi, Commissioner Vincent Grochocinski, and Commissioner Tom Pekras. Commissioner Don Ocwieja was absent. 2. Approval of Minutes - September 8, 2020 Committee of the Whole Motion by Michael Zadel, seconded by Trustee William Grossi to approve the minutes of the September 8, 2020 Committee of the Whole meeting. Aye: William Grossi, Eleni Hatzis, Paul Hoefert, Richard Rogers, Colleen Saccotelli, Michael Zadel Nay: None 3. Citizens to be Heard The public were given the opportunity to submit public comment forms prior to the meeting. Mayor Juracek stated no public comment forms were received. 4. Discussion Items Proposed 2021 Operating Budget Presentation Village Manager Michael Cassady introduced the evening's discussion and thanked the Finance Commission and the Village leadership team for collaborating to produce an adaptive and balanced budget. Director of Finance Amit Thakkar led the presentation and discussion on the proposed 2021 Operating Budget for the Village of Mount Prospect. The proposed budget for 2021 totals $132,525,890, representing a decrease of $21,400,000 from the amended 2020 budget. The decrease is due to the completion of major capital projects in 2020 including the Police and Fire Headquarters, the Maple Street Parking Deck, and Levee 37 Phase I project at Burning Trails Park. Mr. Thakkar discussed budget challenges staff faced when developing the 2021 budget. The estimated loss due to the COVID-19 outbreak in 2020 is $4.9 million. Mr. Thakkar estimates the loss in 2021 to be $1.2 million. Other challenges include outpacing operating 2 expenditures versus revenue growth, unfunded Pension Liabilities, aging infrastructures, CIP funding and state deficits. Staff was committed to ensuring a balanced budget without increasing taxes. Mr. Thakkar presented highlights of the 2021 proposed budget that begin with a proposed zero percent property tax increase. To achieve the zero percent levy increase, the General Fund will be subsidizing the Police and Fire Pension levies by $491,497 and will lower the current Fire Protection levy by $203,792. Other details include planned use of Fund Balance for the Levee 37 Project, avoided balloon payment levy for the library bonds no new tax or charges and no interruptions or reduction in service levels. Mr. Thakkar noted the water/sewer rates will increase in 2021 based on the planned rate increases in the 2017 Water Rate Study. In addition, refuse rates will increase for the first time since 2016 by 8%. Mr. Thakkar provided additional details on the 2021 proposed budget that projects $137.2 million in total revenue and other sources representing an increase of $21.8 million or 18.9%. Mr. Thakkar discussed revenue sources including 15% from property taxes and 31.9% from intergovernmental revenues, representing the largest source. Mr. Thakkar provided details on property tax distribution based on an average home value of $300,000. The state sales tax accounts for 16.7% of the total Village revenues. Mr. Thakkar stated losses due to state sales tax are considerable, amounting to an estimated $1.4 million. The 2021 budget includes a 2.5% loss compared to 2020 original budget. Mr. Thakkar provided details on Home Rule Sales Tax, accounting for 3.9% of total Village revenues and represents a 2021 budget estimated 5.6% loss compared to the 2020 original budget. Mr. Thakkar stated Home -rule Sales Tax are divided into four areas: 1) General Fund 2) Capital Projects 3) Street Construction and 4) Flood Control. Mr. Thakkar provided details on other sources of revenue including license and permit fees, local taxes and fines and forfeitures. Mr. Thakkar provided information regarding COVID-19's financial impact on sales tax, revenues and residual impact on the 2021 proposed budget. Mr. Thakkar indicated which revenues categories are on track with expected losses and some performing better than anticipated. Overall losses are estimated at $4.9 million. Mr. Thakkar discussed the 2021 budget expenditures estimated at $132.7 million. This includes the Village Operating Budget (58%), Community Investment Program (22%) Internal Service Funds (9%) and Debt Services Budget (7%). The total expenditures estimated for 2020 is $153,889.400; the 2021 budget expenditure projection is $132,709,390 representing a decrease of $21,108,011 or 13.8%. Mr. Thakkar provided details regarding the operating budget including major categories; Personnel, Benefits and other employee costs (64%), Contractual Services (32%), Commodities and Supplies (2%) Utilities and Other Expenditures (2%). Mr. Thakkar provided details on each Village department's operating budget and key updates. Mr. Thakkar presented details on the Aspen Trails Park Flood Control Project. The cost estimate for the project is $9.4 million. Staff is investigating cost-effective alternatives that could account for $7.6 million that includes an awarded grant (amount is yet unknown) from MWRD, application for a $5 million Rebuild Illinois Grant, loan from the General Fund and a reallocation of Home -rule Sales Tax. 3 Mr. Thakkar presented highlights of the 2021 proposed budget that begin with a proposed zero percent property tax increase. To achieve the zero percent levy increase, the General Fund will be subsidizing the Police and Fire Pension levies by $491,497 and will lower the current Fire Protection levy by $203,792. Other details include planned use of Fund Balance for the Levee 37 Project, avoided balloon payment levy for the library bonds no new tax or charges and no interruptions or reduction in service levels. Mr. Thakkar noted the water/sewer rates will increase in 2021 based on the planned rate increases in the 2017 Water Rate Study. In addition, refuse rates will increase for the first time since 2016 by 8%. Mr. Thakkar provided additional details on the 2021 proposed budget that projects $137.2 million in total revenue and other sources representing an increase of $21.8 million or 18.9%. Mr. Thakkar discussed revenue sources including 15% from property taxes and 31.9% from intergovernmental revenues, representing the largest source. Mr. Thakkar provided details on property tax distribution based on an average home value of $300,000. The state sales tax accounts for 16.7% of the total Village revenues. Mr. Thakkar stated losses due to state sales tax are considerable, amounting to an estimated $1.4 million. The 2021 budget includes a 2.5% loss compared to 2020 original budget. Mr. Thakkar provided details on Home Rule Sales Tax, accounting for 3.9% of total Village revenues and represents a 2021 budget estimated 5.6% loss compared to the 2020 original budget. Mr. Thakkar stated Home -rule Sales Tax are divided into four areas: 1) General Fund 2) Capital Projects 3) Street Construction and 4) Flood Control. Mr. Thakkar provided details on other sources of revenue including license and permit fees, local taxes and fines and forfeitures. Mr. Thakkar provided information regarding COVID-19's financial impact on sales tax, revenues and residual impact on the 2021 proposed budget. Mr. Thakkar indicated which revenues categories are on track with expected losses and some performing better than anticipated. Overall losses are estimated at $4.9 million. Mr. Thakkar discussed the 2021 budget expenditures estimated at $132.7 million. This includes the Village Operating Budget (58%), Community Investment Program (22%) Internal Service Funds (9%) and Debt Services Budget (7%). The total expenditures estimated for 2020 is $153,889.400; the 2021 budget expenditure projection is $132,709,390 representing a decrease of $21,108,011 or 13.8%. Mr. Thakkar provided details regarding the operating budget including major categories; Personnel, Benefits and other employee costs (64%), Contractual Services (32%), Commodities and Supplies (2%) Utilities and Other Expenditures (2%). Mr. Thakkar provided details on each Village department's operating budget and key updates. Mr. Thakkar presented details on the Aspen Trails Park Flood Control Project. The cost estimate for the project is $9.4 million. Staff is investigating cost-effective alternatives that could account for $7.6 million that includes an awarded grant (amount is yet unknown) from MWRD, application for a $5 million Rebuild Illinois Grant, loan from the General Fund and a reallocation of Home -rule Sales Tax. Mr. Thakkar provided the following in response to questions from the Board and Finance C;nmmi_q_qinn- • Greystar's Block 56 proposal project will be presented to the Board in late 2020 or early 2021 Ell • Training expenditures for the Police Department are categorized under "other employee costs;" the Village -wide Diversity, Equity and Inclusion Training came from the Human Resources training budget • Village vehicle sticker program generates $1.5 million in revenue; staff has not found a viable replacement revenue source should this program be eliminated • First time a budget contingency fund is included in the budget; will be utilized for unplanned expenses that will be subject to Board approval • South Mount Prospect Plan will be presented to the Planning and Zoning Commission in October; will be presented to Village Board for final approval • Water/sewer rates will increase $6.18 per month for the average user; refuse will increase by approximately $18 per year for the average user • The Block 56 development proposal is not included in the 2021 budget • Revenue the Village receives from the sale of medical marijuana is approximately 1 %; the sale of recreational marijuana (currently not permitted in the Village) has potential to be a substantial source of revenue • Trip hazards on sidewalks will be repaired; scheduled sidewalk maintenance is deferred for one year. Public Works Director Sean Dorsey added that repair of damaged brick pavers will be performed timely and brick sidewalks are surveyed every year for repairs Board and Commission comments: • Village staff were commended for producing a realistic budget • Village should consider how usage fees impact renters in our community • Important to keep the Board informed regarding status of grant funding In a response to a question from a commissioner, Village Manager Michael Cassady stated the collaboration with D214 Career Pathways Program is on hold until the pandemic calms and hopes to restart the successful program in the future. Mr. Thakkar stated the public hearing and first reading of the budget ordinance will take place on November 4, 2020. The second reading and approval will take place at the November 17, 2020 Village Board meeting and will include the public hearing for the tax levy. 5. Any Other Business None 6. Adjournment There being no further business to discuss, Mayor Juracek asked for a motion to adjourn. Trustee Rogers, seconded by Trustee Zadel motioned to adjourn the meeting. Upon roll call each member acknowledged they were able to hear and participate in the meeting's presentation and discussion in its entirety. Aye: Trustee Grossi, Trustee Hatzis, Trustee Hoefert, Trustee Rogers, Trustee Saccotelli, and Trustee Zadel. Nay: None. The Joint Village Board and Finance Commission Workshop of October 13, 2020 adjourned at 8:09pm.