HomeMy WebLinkAbout6.2 Waive the Rules Requiring Two Reading of An Ordinance and ADOPT AN ORDINANCE MAKING CERTAIN AMENDMENTS TO THE ANNUAL BUDGET ADOPTED FOR THE FISCAL YEAR COMMENCING JANUARY 1, 2022 AND ENDING DECEMBER 31, 2022.Mr�GauC �'d'+rt;�iect
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Subject- the Rules Requiring Two Reading of
Ordinance and ADOPT AN ORDINANCE MAKING
CERTAIN AMENDMENTS • THE ANNUAL BUDGET
ADOPTED F•R THE FISCAL YEARCOMMENCING
JANUARY 1, 2022 AND ENDING DECEMBER 31,
2022.
Meeting October1 " MEETING OF •
PROSPECT . BOARD
Fiscal Impact
Dollar Amount
Budget Source
Category CONSENT AGENDA
Type Consent
Information
The attached ordinance provides for three amendments to the adopted budget for
the fiscal year 2022.
Employee io Incentive: As discussed previously at the second quarter
financial review, current inflation is at 8.3%. Inflation touched a 40 -year high
mark in June 2022 at 9.10%. Inflation rate as of January 1, 2022 was 7.5%.
Actual non-union employee wage increases included a cost of living adjustment of
3.0% and an additional wage increase up to 1.2% based on individual
performance. Non-union employees do not receive step increases, unlike union
employees that have step increases. Pay increases effective January 1st were not
in line with inflation and it has created a reduction in real wages. At the same
time, the private sector job market has become very lucrative and is offering
higher wages and other compensation that the Village can't afford to offer. It is
important for the Village to retain its talent pool and provide competitive wages so
that employees can be retained for a long time, which allows the Village to
maintain high quality services.
Village staff is proposing a one-time 2.0% retention incentive to all non-union
employees. Providing one-time bonus does not increase the base salary and
therefore, the Village can save from this compounding effect in the future. The
total cost of 2.0% retention incentive along with applicable taxes and IMRF is
$271,122. The attached amendment adds the same amount to the 2022 budget
and will allow Village Administration to provide a one-time 2.0% bonus to its non-
union employees, which is believed to be a great investment in the Village's talent
pool.
Position - Director of Marketing & Public Relations
Village Administration is seeking approval to add a Director of Marketing & Public
Relations position to its staff. Currently, there is an approved part-time Branding
Coordinator position in the 2022 budget. The assigned tasks to this position
require a dedicated and qualified full-time employee. In addition, the 2022-2023
strategic plan recommends improved village communication and marketing
efforts. The proposed position will allow the Village to carryout action items
identified by the Strategic Plan and will allow to elevate marketing and branding
efforts. The part-time Branding coordinator position will be eliminated, and
eventually allow the Village to reduce (though not entirely eliminate) some of the
costs currently incurred by using third -party consultants for marketing and
branding. Village Administration is hopeful to publish and hire the position as soon
as possible. The overall annual salary for this position is estimated to be around
$110,000. The total cost may reach up to $148,824 with applicable taxes and
benefits. The proposed budget amendment amends the 2022 budget with three
months worth of salary, benefits and taxes totaling $37,206.
The Village Vehicle Maintenance Fund is expected to go over budget for its fuel
(unleaded & diesel) budget due to high inflation and high gas prices. The current
budget is $400,000, which is expected to fall short by $100,000. The proposed
amendment is increasing the fuel budget for the Vehicle Maintenance Fund by
$100,000 and the budget will be increased from $400,000 to $500,000.
The current Cash and Fund Balance are sufficient enough to accommodate the
above listed budget amendments. Staff recommends approval of the proposed
budget amendment attached herewith.
Alternatives
1. Approve the attached ordinance amending budget for the fiscal year
commencing on January 1, 2022 and ending on December 31, 2022.
2. Action at the discretion of the Village Board.
Staff Recommendation
Approve the attached Ordinance amending budget for the fiscal year commencing
on January 1, 2022 and Ending on December 31, 2022.
ATTACHMENTS:
2022 Budget Amendment 3.pdf