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HomeMy WebLinkAbout08/14/2007 COW minutes COMMITTEE OF THE WHOLE MINUTES August 14,2007 I. CALL TO ORDER The meeting was called to order at 7:08 p.m. in the Village Board Room of Village Hall, 50 South Emerson Street, by Mayor Irvana Wilks. Present at the meeting were: Trustees Paul Hoefert, Arlene Juracek, John Korn and Michael ladel. Staff present was Village Manager Michael Janonis, Assistant Manager David Strahl, Police Chief John Dahlberg, Deputy Chief Michael Semkiu, Fire Chief Michael Figolah, Finance Director Dave Erb, Community Development Director William Cooney, Human Services Director Nancy Morgan, Public Works Director Glen Andler and Public Information Officer Maura EI Metennani. II. MINUTES Approval of Minutes of July 24, 2007. Motion made by Trustee Korn and seconded by Trustee ladel. Minutes were approved. Trustee Hoefert abstained. III. CITIZENS TO BE HEARD Mr. Frank Cory, Treasurer of Mount Prospect Historical Society and resident of 705 South Louis spoke. He requested financial assistance for relocation of the Central School from its existing location to a site adjacent to the Historical Society. The Historical Society requested assistance in the amount of $40,000 to assist in this endeavor. He stated the Historical Society has raised $111,000.00 of the $190,000.00 necessary for the Phase I work of the school. Gavin Kleespies, Executive Director of the Mount Prospect Historical Society spoke. He described the extensive fund raising efforts undertaken by the Historical Society members and the pending February 28 deadline to move the school. Deb Rittlen, 100 S. Elm spoke. She has developed a curriculum based on old time, one room school house education. She will use her professional teaching experience at the school once it has been moved and available for use to simulate what it was like to be in a one room school house. She stated there are very few one room school houses still available in the state of Illinois. Leo Flores, of 111 N. Emerson spoke. He stated he supports the Mount Prospect Historical Society funding effort. He also stated this is a very special request to preserve the history of Mount Prospect and the Village did set a precedent when it assisted in moving and redeveloping of the General Store. Gerald Farley, 116 N. Emerson spoke. He stated he is supportive of the funding request even though he has not been supportive of previous funding requests by the Mount Prospect Historical Society. Julie Vowinkel, 1711 Pheasant spoke. Ms. Vowinkel is a teacher in the area and her students have been heavily involved in the fundraising efforts to relocate the school; it would be very disappointing to them for the building not to be moved after all the work the students have put in. David Toeppen, 409 S. Hi Lusi spoke. He stated the building has served nine different purposes in its lifetime for the Village of Mount Prospect and its citizens. He also stated the building has been part of the community since the beginning and should be preserved. Manager Janonis stated that while there is an existing deadline, would the likelihood of funds being secured impact the timing or deadline of the move. For example, he stated that discussions at this point are for the 2008 Budget and based on the timing of the move it may be necessary to utilize surplus monies or 2007 unexpended funds to get the project moving compared to waiting until next year. This could be accomplished through a budget amendment. General comments from the Village Board members included the following items: (1) The Historical Society and its members have undertaken aggressive fundraising and have only considered coming to the Village Board after a significant effort on their part. (2) Consensus of the Village Board was to consider the funding request at the August 21 Village Board meeting. Trustee Hoefert stated he and Trustee Juracek have been advised not to comment or vote on the funding request since they are members of the Historical Society Board of Directors. IV. 2007 MID-YEAR REVIEW AND UPDATE OF THE 2008 BUDGE FORECAST Finance Director, David Erb provided an overview of the current fiscal position of the Village. He stated the Village is in a good financial position at this time. He noted that the sales tax estimate for 2007 is expected to be approximately $330,000 above original estimates; however, the Real Estate Transfer Tax which has generated $1.5 million in 2005 is estimated to only bring in $700,000 for 2007, which is reflective of the current real estate market. He also stated the Utility Taxes have decreased through the shift to satellite service and over internet phone service. He noted ambulance transportation fees are above estimates primarily due to the timing of reimbursement compared to the point when the fees were imposed. He stated intergovernmental revenue continues to be a strong performer as is the interest income the Village is realizing through better market returns and a higher fund balance. He provided an overview of the various funds and fund balances which make up the Village Budget. The 2008 Forecast He stated the Village is in pretty good shape heading into 2008; however, there are several significant items which will have a budgetary impact. The Capital Improvement Fund (CIP) funding source is at a critical discussion point and needs to be addressed if the Village is to continue with a CIP fund for the mid sized capital projects. He also stated the eventual construction of Fire Station 14, the expansion of the Public Works facility and the construction of an Emergency Operations Center will also need to be addressed during the upcoming year. 2 V. FUND BALANCE POLICY Finance Director, David Erb provided an overview of the proposed policy. . General Fund recommend a 25% fund balance level. . Capital Improvement Plan recommend a fund balance of 50% of the five year average for capital expenditures up to a maximum of $1 million. . Debt Service Fund recommend the balance be maintained by the level equal to the amount of the next interest payment. Any alternative revenues which are utilized to support debt service should be maintained at a level equal to 50% of next year's principal and interest payment or the debt. . Water and Sewer Fund recommend a fund balance of equal to 33% of the subsequent fiscal years expenditures. . Risk Management Fund balance recommendation set at a level equal to unpaid claims and liabilities plus 50% of the self insured retention level for auto and general liability claims plus 50% of the subsequent fiscal years expenditures for workers comp claims. . Internal Service Funds excluding Risk Management but including Vehicle Maintenance, Vehicle Replacement and Computer Replacement fund balance will be maintained at a level sufficient for ongoing maintenance of computer and motor vehicle machinery and equipment. . Refuse Disposal Fund balance maintain at a level equal to 25% of the subsequent fiscal years expenditure. . Parking Fund balance recommend to be maintain at a level equal to 25% of the subsequent fiscal years operating expenditures plus adequate funds to complete all projects in the most recent Capital Improvement Plan for the year in which they are budgeted. . Motor Fuel Tanks Fund balance maintained at a level equal to 25% of the subsequent year's fiscal expenditures. . Pension Fund balance maintain a level adequate to fully fund the Police and Firefighter pension funds by the date required by State Statutes and as monitored by annual actuarial studies. Within each fund there are procedures established for deviating from the fund balance with reporting responsibilities of the Finance Director to the Village Board for approval of fluctuations depending on the economic circumstances. General comments from the Board members included the following items: (1) It is recommended that there be some consideration undertaken to review fund balances if such balances reach a specific upper level that the balance is significantly above the established minimum level, therefore some benefit to the taxpayers could be considered. (2) Consensus of the Village Board was to bring the policy forward for Village Board approval. VI. PERMANENT FUNDING SOURCE FOR CAPITAL PROJECTS Finance Director, David Erb presented a proposal to establish permanent funding source for the CIP. He recommended a one-quarter cent sales tax increase instead of increasing the property tax levy. He stated the sales tax increase would be at a level equal to surrounding towns, and allow the funding burden to be shared by residents and non-residents compared to the property tax which would be absorbed by residents only. He added the Finance Commission also recommended this funding option in addition to utilizing some fund balance money. The first $1 million that would be generated from such a sales tax increase would be for Capital Projects. 3 If the Village Board supports the sales tax increase it would need to be approved and the Ordinance forwarded to the State of Illinois before October 1, 2007 in order to be effective by January 1, 2008. Chuck Bennett, Chairman of the Finance Commission spoke. He stated the Finance Commission has discussed many alternatives and believe the sales tax option the best solution. He stated the Commission is supportive of the Fire Department's proposal for the new station and the expansion of the Public Works facility, and urged Village Board action on moving forward with that project. General comments from the Village Board members included the following items: (1) It was suggested that staff look at other funding options available for the CIP funding including utilization of fund balances on a periodic basis and what impacts such fund balance utilization would have on the overall budget. (2) It was recommended that further discussion take place with staff and Trustees who have alternative suggestions prior to discussion of the possible sales tax increase before the Village Board. (3) Consensus of the Village Board was to consider the Sales Tax Increase Ordinance once it is presented to the Village Board prior to October 1, 2007. Manager Janonis stated there are approximately three meetings before the Village Board needs to consider the sales tax increase before the October 1 deadline. VII. MARKETING PLAN PROPOSAL Manager Janonis presented a marketing plan proposal that would coordinate with the Randhurst redevelopment and the use of branding opportunities for multi-year project required funding in 2007 and 2008. He stated this project would be primarily coordinated by the Public Information Officer with assistance from the Community Development department and funding for 2007 would be available through the use of fund surplus. General consensus of the Village Board is to support the marketing plan as presented and there is support to illustrate what the community has to offer and promote its strengths. It was also noted that the coordination and involvement of various entities in addition to the Village would make for a robust marketing effort. VIII. ANY OTHER BUSINESS Mayor Wilks commented on the recent Boxwood bash and the Cancer Walk that went through the community this past weekend. IX. ADJOURNMENT Meeting was adjourned at 9:30 p.m. ~ 5t-/JJ DAVID STRAHL Assistant Village Manager 4