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HomeMy WebLinkAbout0848_001VILLAGE OF MOUNT PROSPECT'"°"°° FINANCE DEPARTMENT INTEROFFICE MEMORANDUM TO: Michael E. Janonis, Village Manager FROM: David C. Jepson, Finance Director` DATE: December 17, 1992 SUBJECT: Amendment to Change the Plan Year for the Village's Cafeteria Plan One of the benefits that is offered to all full-time employees of the Village is the option of participating in a Flexible Compensation Plan, or Cafeteria Plan as authorized by IRS Section 125. Under a Flex -Comp Plan, an employee's medical insurance contributions, certain medical expenses and certain dependent care expenses can be paid with pre-tax dollars. The Village's Plan was originally adopted in July 1985 for medical insurance contributions and expanded to include. the other provisions on February 1, 1986. In the past, the Flex -Comp Plan has been administered on a calendar year basis. Because medical insurance premiums are calculated on the same basis as the Village's fiscal year (May 1 - April 30), and in anticipation of some possible changes in the Medical Insurance Program in early 1993, there would be an advantage in changing the Flex -Comp Plan Year to the Village's fiscal year. The attached resolution will provide for a "short year" to cover the period of January 1, 1993 - April 30, 1993, and then for subsequent plan years to coincide with the Village's fiscal year. DCJ/sm Enc RESOLUTION NO. RESOLUTION APPROVING AN AMENDMENT TO A CAFETERIA PLAN WHEREAS, the Village of Mount Prospect is a Home Rule Municipality exercising its Home rule powers pursuant to the Illinois Constitution of 1970; and WHEREAS, the Corporate Authorities have previously adopted a Village of Mount Prospect Flexible Compensation Plan (the "Plan") for its employees; and WHEREAS, the Corporate Authorities have determined that the Plan should be amended to change its plan year to coincide with the plan year of the health plan adopted by the Village of Mount Prospect. NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS, AS FOLLOWS: SECTION That the Amendment to the Village of Mount ONE: Prospect Flexible Compensation Plan, Health Care Reimbursement Plan and Dependent Care Assistance Plan, attached hereto as Exhibit A, be and is hereby approved and adopted to be effective as of December _, 1992. SECTION That the Finance Director of the Village of mount TWO: Prospect be appointed to take any and all such steps as may be required for the implementation of the Plan. SECTION That this Resolution shall be in full force and THREE: effect from and after its adoption and passage in the manner provided by law. AYES: NAYS: ABSENT: PASSED this _ day of A.D., 1992 APPROVED this day of A.D., 1992 VILLAGE PRESIDENT VILLAGE CLERK AMENDMENT TO THE VILLAGE OF MOUNT PROSPECT FLEXIBLE COMPENSATION PLAN, HEALTH CARE REIMBURSEMENT PLAN AND DEPENDENT CARE ASSISTANCE PLAN This Amendment is made this day of December, 1992 by the Village of Mount Prospect (the "Employer") for the Village of Mount Prosect Flexible Compensation Plan (the "Flexible compensation Plan"), the Village of Mount Prospect Health Care Reimbursement Plan (the "Health Care Reimbursement Plan") and the Village of Mount Prospect Dependent Care Assistance Plan (the "Dependent Care Assistance Plan" (collectively the "Plans"). R E C I T A L S The Employer has previously adopted the Plans. 2. The Health Care Reimbursement Plan and the Dependent Care Assistance Plan form a part of and are incorporated by the Flexible Compensation Plan. 3. The Employer desires to amend the Plans pursuant to the rights reserved to the Employer to amend the Plans as set forth in Section 7.1 of the Flexible Compensation Plan. NOW, THEREFORE, the following Amendments are hereby made to the Plans, effective as of the date of this Amendment. 1. Section 1.3(1) of the Flexible Compensation Plan is hereby amended to read as follows: (1) Plate: The twelve (12) month period beginning on May 1st and ending on April 30th; except there shall be a short Plan Year beginning on January 1, 1993 and ending on April 30, 1993. 2. The paragraph titled "Plan Year" at the bottom of page 1 of the Health Care Reimbursement Plan is hereby amended to read as follows: Plan Year: The twelve (12) month period beginning on May 1st and ending on April 30th; except there shall be a short Plan Year beginning on January 1, 1993 and ending on April 30, 1993. 3. The paragraph titled "Plan Year" at the bottom of page 1 of the Dependent Care Assistance Plan is hereby amended to read as follows: Plan Year: The twelve (12) May 1st and ending on April a short Plan Year beginning ending on April 30, 1993. month period beginning on 30th; except there shall be on January 1, 1993 and IN WITNESS WHEREOF, the Company has caused this Amendment to be executed as of the date and year first above written. VILLAGE OF MOUNT PROSPECT By Its AMENDMENT TO THE VILLAGE OF MOUNT PROSPECT FLEXIBLE COMPENSATION PLAN, HEALTH CARE REIMBURSEMENT PLAN AND DEPENDENT CARE ASSISTANCE PLAN This Amendment is made this day of December, 1992 by the Village of Mount Prospect (th�- �Employer") for the Village of Mount Prosect Flexible Compensation Plan (the "Flexible compensation Plan"), the Village of Mount Prospect Health Care Reimbursement Plan (the "Health Care Reimbursement Plan") and the Village of Mount Prospect Dependent Care Assistance Plan (the "Dependent Care Assistance Plan" (collectively the "Plans"). R E C I T A L S 1. The Employer has previously adopted the Plans. 2. The Health Care Reimbursement Plan and the Dependent Care Assistance Plan form a part of and are incorporated by the Flexible Compensation Plan. 3. The Employer desires to amend the Plans pursuant to the rights reserved to the Employer to amend the Plans as set forth in Section 7.1 of the Flexible Compensation Plan. NOW, THEREFORE, the following Amendments are hereby made to the Plans, effective as of the date of this Amendment. 1. Section 1.3(1) of the Flexible Compensation Plan is hereby amended to read as follows: (1) Plan Year: The twelve (12) month period beginning on May 1st and ending on April 30th; except there shall be a short Plan Year beginning on January 1, 1993 and ending on April 30, 1993. 2. The paragraph titled "Plan Year" at the bottom of page 1 of the Health Care Reimbursement Plan is hereby amended to read as follows: Plan Year: The twelve (12) month period beginning on May 1st and ending on April 30th; except there shall be a short Plan Year beginning on January 1, 1993 and ending on April 30, 1993. 3. The paragraph titled "Plan Yeas" at the bottom of page 1 of the Dependent Care Assistance Plan is hereby amended to read as follows: Plan Year: The twelve (12) month period beginning on May 1st and ending on April 30th; except there shall be a short Plan Year beginning on January 1, 1993 and ending on April 30, 1993. IN WITNESS WHEREOF, the Company has caused this Amendment to be executed as of the date and year first above written. VILLAGE OF MOUNT PROSPECT By_ Its - 2 - VILLAGE OF MOUNT PROSPECT FINANCE DEPARTMENT INTEROFFICE MEMORANDUM TO: Michael E. Janonis, Village Manager FROM: David C. Jepson, Finance Director DATE: December 17, 1992 SUBJECT: IMRF Omitted Service Credit for Carolyn Weiland Carolyn Weiland started working for the Village on September 6, 1988 as a part-time secretary in Public Works. When she was hired it was expected that she would work an average of 16 hours per week or 832 hours per year. Because Carolyn was not scheduled to work at least 1,000 hours per year, she was not eligible to participate in the IMRF Pension Plan. Carolyn's schedule was changed in August 1989 to an average of 20 hours per week, or 1,040 hours per year. At that time, she should have been added to the IMRF Plan. This oversight was recently discovered and Carolyn has requested that she be granted omitted service credits from September 1, 1989 - December 31, 1991. Carolyn will be responsible for paying her share of the contribution rate for the past credits, and the Village's share will be paid through future rate calculations. Attached is a resolution authorizing the omitted service credits. DCJ/sm Enc TTR ILLINOIS MUNICIPAL RETIREMENT FUND 100 South Wacker Drive - Chicago, Illinois 60606 312/346-6722 1 5 OMITTED SERVICE CREDIT AUTHORIZATION (See instructions on reverse side) (Name of Applicant Social Security Number CAROLYN M. WEIAND 343-42-2775 Address Of Applicant Street or Route City, State, Zip Code 614 MEIER ROAD MT. PROSPECT IL 60056 Name of Current Retirement System Current Position Date began Participation in IMRF P/T SECRETARY Current System 9/7/89 EVo or for Whom Service Was Rendered Omitted position Employer Number ( State SSA No. VILLAGE OF MOUNT PROSPECT P/T SECRETARY 694333 1 1 5 Anticipated retirement date: CERTIFICATION BY ALF17HORIZATION AGENT I certify that the following statement of earnings for the above applicant are in agreement with the governmental unit's payroll records and represents the entire qualifying employment period determined by the governing body. Calendar Year Earnings Months of Creditable Service With Without Calendar Earninas Earninas' Year Earnin s Months of Creditable Service With Without Eaminos Earninas' 1989 $2,847.73 4 1990 $8,430.27 12 1991 $8,382.28 12 y 7 'SE - (seasonal leave explained on reverse side) Q ' nATr Sir -MATT Jor M Al rT"nc117cn Al cArr RESOLUTION BY GOVERNING BODY I WHEREAS. the apphcant named heren for the period indicated above28 months should have been but was not reported to the Illinois Mur4dpal Retirement Fund for membership. RESOLVED, that it is the finding of this that: NAME OF OOVERNING DOOV; 1. The applicant worked in a position which qualified him or her for membership in IMRF during the years and months shown above, 2. None of the service of the applicant during these years and ffwft was in a probationary position of four months or less. 3. The applicant is currently employed in a qualifying position under IMRF or system that has reciprocity with IMRF. FURTHER RESOLVED, that the governing body agrees to accept the, obligation due IMRF for the omitted service employer contributions payable through future employer contribution rates and to accept the charges for employer and employee soda) security taxes it such taxes have not been paid on the omitted service earnings. FURTHER RESOLVED, that the authorized agent is hereby authorized and directed to file a certified copy of this resolution and all other pertinent forms and documents with the Illinois Municipal Retirement Fund. CERTIFICATION BY CLERK OR SECRETARY OF GOVERNING BODY I, the Of NAME CLERK OR ETAW THE VILLAGE OF MOUNT PROSPECT do hereby certify that I am the keeper of its NAME OF GOVEAWMEWAL Ukrr records and that the foregoing is a true and correct Copy of a resolution duty adopted by its governing body at a meeting held on the _day of '19 —. DATE CLERK OR SECRETARY ScAlATURE CERTIFICATION BY MEMBER I fully understand that under the Illinois Pension Code I have the right to establish the entire qualifying period. This is to car* that I was employed and received the above earnings from the above governmental unit from through — and ; that I Q agree, or 0 disagree ( please send letter of explanation) with the period approved by the governmental unit's governing body. DATE SIGNATURE OF APPLICANT IM RF FORM 6.06 (RE V.3188) VILLAGE OF MOUNT PROSPECT FINANCE DEPARTMENT INTEROFFICE MEMORANDUM TO: Michael E. Janonis, Village Manager FROM: David C. Jepson, Finance Director` DATE: December 17, 1992 SUBJECT: 1993 Insurance Proposals During the past two weeks, the Village has received insurance renewal proposals from Arthur J. Gallagher and Company and the Hobbs group. These are the same two brokers that we have been working with for the last several years and each broker submitted proposals from three or four insurance companies. The proposals were quite favorable to the Village and included a number of options that have not been available over the last five years. Because of the complexities and variety of municipal operations, the various insurance proposals are not always comparable. Although the general coverage may be for the same stated purpose; i.e., police liability, there are often numerous exclusions to the basic policies. We use an insurance consultant, Bill Leinheiser, to help us properly evaluate these proposals and to ensure that the Village will actually be getting the expected coverage. This year, I have included Mr. Leinheiser in our discussions with the brokers and he has followed up directly on each of the questions raised. Mr. Leinheiser's tentative recommendations follow: T,yi)g of Coverage Property Public Officials Workers' Comp EMT Malpractice General, Auto and Police Liability 1992 1993 Policy Premium Premium Limits Broker $ 30,346 $ 23,024 $37,210,000 Hobbs 17,010 22,600 1,000,000 Hobbs 39,500 42,873 1,000,000 Hobbs 5,390 5,489 1,000,000 Hobbs Totals 171 07 =&A 750,000 Gallagher Michael E. Janonis December 17, 1992 1993 Insurance Proposals Mr. L.einheiser is still trying to resolve one of the questions that came up regarding an alternate liability proposal that was about $10,000 less than the amount quoted above. If those questions can be resolved, the alternate company would be recommended. Mr. L.einheiser's recommendations are attached. I am requesting authority to request binders for the above coverage, or the alternate still under consideration, prior to December 31, 1992. The specific contract amounts will be presented for formal approval at the January 5, 1993 Village Board meeting. Mr. Leinheiser will be present at the December 22, 1992 meeting to answer any ,questions. DCJ/sm Enc 'D 708 4490235 RISK RESOURCES P02 SK mm -Ts RESOURCES 1n*pv*aW MO Mvwwff4V4 Cowftants kilmnat Wsom December 17, 1992 David Jepson Director of Finance Village of Mount Prospect 100 S. Emerson Mt, Prospect, IL 60056 D= Dave: RE: INSURAMU RENEWAL We !rave completed the negotiations with the Arthur J. Gallagher & Company and Hobbs Group for the Village's upcoming January 1, 1,993 insurance renewals. Bot brokers offered a number of alternatives to the existing insurance program and the existing insurers. We are recommending you renew the insurances on the following basis. Pn=.my,pamage Insurano We recommend the coverage be renewed with the ArkwTigbt Insurance Company at an annual premium of $23,024. This compares to the expiring premium of $30,346. 'I'lie, major reason for the reduction in premium is our r000mmen4ation to increase the deductible from $5,000 per loss to $25,000 per loss. pAblig,_Qftals EmQrj & omissions liability We suggest you renew the coverage with a $1,000,Wo limit of liability and $250,000 Sdf-inS%ITCd retention with International Surplus Lines insurance Company. This is a change from the existing insurer, The annual premium proposed is $21,907 however, this is subject to a surplus lines tax which will increase the premium to approximately $22,600. This compares to the expiring premium of $17,010, The expiring insurer (International Insurance Company) also proposed renewing, the coverage at the same $17,010 Premum. Two Westbrook corporate: Center * Wolf Road at 22nd Street Suite $40 - Westchester. Itt'no's 60 154 Telephone (708) 449-010* - Feu (7061440-0235 1M 708 4490235 RISK RESOURCES P03 December 17, 1992 Page 2 David Jepson The significant difference, in t' e two policies involves defending suits. With the intemational Surplus Lines Insurance Company, the insurance company defends suits and the cost of such deferiw is borne by the insurance company and is not subject to the retention nor is it a part of the limit of liability. Under the, expiring program, the Village defends suits covered by the policy and the cost of such defense is in addition W the gAr-insured retention. For the additional premium of approximately $5,600, the insurance company instead of the Village will be absorbing the cost of defending such suits, Normally, suits covered by public officials errors & QMi33iQA3 liability Policies are vigorously defendM and the cost of such defense represents a significant part of any loss. We believe the change to the insurance company paying for defense costs instead of the Village to be a significant improvement in coverage and well worth the additional $5,600 annual premium. We recommend the coverage be renewed with the current insurer at the current $300,000 self-insured retention level. The estimated renewal premium is $42,873. This compares to the expiring estimated premium of $39,500. We suggest the coverage be renewed with the current insurer at an annual premium of $5,489. All terms of coverage will be identical to the expiring. This cullivares to the current premium of $5,390. At the present time, we recommend the coverage be renewed with the existing insurer (United National Insurance Company) through Arthur 1. Gallagher & Company for the sante premium as expiring ($78,830) and the same coverages as expiring. We have several alternative quviaLions offered at approximately $10,000 less in premium however, we have been unable to negotiate having the coverage provided on terms as broad as the current policy. The Major difference in the coverage proposed at the lower premium involves coverage for police deliartment activities. The proposed coverage limits claims to those arising out of the use of rw5goahir, force to protect persons or property. The current policy does not have a similar restriction. It , covers any actual or alleged act, error, omission, neglect of breach of duty by the insured and arising out of your law enforcement activities. We are continuing our discussions with the proposed insurer (1'ransamerica) to see if they will auiiend their policy wording. They have. ttimed us do" once. We do not believe the lesser coverage offered is worth saving $10,000. December 17, 1992 David Jepson Q 708 4490235 RISK RESOURCES PO4 Page 3 In conclusion, the recommended renewal insurance program has an estimated annual premium of $172,816. This compares to the expiring premium of approximately $171,076. 'rhe recommended renewal iiisufance program has at least one major improvement in overage involving the public officials errors & omissions liability as mentioned above. This is worth the slight additional premium increase for the year. There is still a slight possibility we can convince ' Transamerica Insurance Company to change dir. wording in their policy regarding the use of reasonable forep.. if they are agreeable. the above total will be reduced by about $10,000. Very truly yours, 15William WU kk Minutes COMMITTEE OF THE WHOLE December 8, 1992 1, ROLL CALL The Meeting was called to order by Mayor Gerald L. Farley at 7:35 p.m. Trustees present were Mark Busse, George Clowes, Timothy Corcoran, Leo Floros, Paul Hoefert, and Irvana Wilks. Also present were: Village Manager Michael E. Janonis, Inspection Services Director Chuck Bencic, Fire Chief Edward M. Cavello, Planning Director David Clements, Finance Director David C. Jepson, Human Services Administrator Nancy Morgan, Communications Division Administrator Cheryl L. Pasalic, Chief of Police Ronald Pavlock, Personnel Coordinator Donna Russell and Public Wdrks Director Herbert L. Weeks. In addition Mr. Allen Saunders, Housing Consultant for Catholic Charities, Mr. Fidel Lopez representing Broadacre. Valerie Alexander, Mr. Ken Westlake, Chairman of the Solid Waste Commission, Mr. Richard Bachhuber, Chairman of the Finance Commission, Dennis Saviano representing School District #57 along with four members of the print media in attendance. H. MINUTES OF NOVEMBER 24, 1992 The minutes of the November 24, 1992 were accepted as corrected and filed Five (5) trustees voted to accept minutes and there was one (1) abstention. III. CITIZENS TO BE HEARD No citizens appeared before the Village Board. IV. DOWNTOWN REDEVELOPMENT - BROADACRE AND CATHOLIC CHARITIES Mayor Farley introduced the continuation of the discussion held at the last Committee of the Whole Meeting on November 24, 1992, which had to do with the merits, advantages and disadvantages of incorporating into our downtown redevelopment project a facility that would house income eligible senior citizens and be built by Catholic Charities. Village Manager Michael E. Janonis stated that the critical issue is to determine the status of Catholic Charities with respect to the Pine/Wille Redevelopment Plan that has been proposed by Broadacre. Mr. Janonis reviewed information that was distributed at the meeting of the 24th. This information highlighted the; impact the Pine/Wille Development proposal had on that block. It was expected that a three fold increase in Equalized Assessed Evaluation (EAV) from ;preslent levels would be realized through the Broadacre development in the Pine / Wille block. There was approxiinately $400,000 anticipatedlose in EAV if the Catholic Charities component was included in the Redevelopment scheme. He continued that there was additional information contained in this evening's packet. This information is based on questions raised at the previous meeting and during the week. Mayor Farley asked for comments by residents in attendance. Mr. Dennis Saviano, a member of the Zoning Board of Appeals and a recent appointee to the School Board of District #57, expressed concern about the Catholic Charities Senior Housing Development because of the effect that additional tax exempt property could have on District #57. Mr.-Saviano commented that taking a property off the tax roles was in direct conflict with the purpose of a TIF District. Discussion continued on the concerns of District #57. Mayor Farley stated the Board was very cognizant of the impact on District #57 and would factor District -57's concerns into their deliberations. Mr. Saviano clarified his position by stating hisconcern was not so much for a TIF District, but for additional tax exempt property within the TIF District. Valerie Alexander of 501 West Lincoln stated her understanding was that Catholic Charities would be using HUD funds. She questioned how eligibility could be restricted solely to Mount Prospect residents. Mayor Farley stated that Mount Prospect residents would have preference. Trustee Corcoran stated that he supports senior' citizen housing and Catholic Charities and heinitially supported the Pine / Wille location, but after reviewing all the material and listening to the comments, it is now his opinion that this is the - wrong location and that we ought` to be looking at property that is already tax exempt. Trustee Clowes supports senior housing at the Pine/Wille location. His reasoning is that based on best estimates the difference . in EAV with the senior housing vs without the senior housing, would be approximately $400,000. Trustee Clowes later stated that Catholic Charities is expected to pay $300,000 for the property they use. 'The Village will get significantly more revenue from the sale of this property than they would from the incremental revenue if they didn't build serlor'housing. 'Trustee Clowes concluded by stating that he supports senior housing in the downtown area. He ,stated that he :does not necessarily support the Tax Increment Financing District (TIF). Mayor Farley' commented that the Village has not negotiated a dollar figure. The figure was simply utilized by staff to give the Board some projection of the revenue in that area of the TIF District. There has not been any negotiation with Catholic Charities toward the price of the land. Trustee Floros asked if we were to consider the sale of the property to a private developer or to HUD, would the price of the land be the same? Planning Director David Clements responded in the affirmative. Trustee Floros also inquired if it is possible that there could be private developers around who would be interested in that property to do there what was done at Centennial. Mr. Clements stated that he did not think there would be that kind of interest in today's market. Mr. Fidel Lopez representing Broadacre supported the comments made by Mr. Clements stating that if there had been private developers who could make a profit from such a senior development they would have already been knocking on the Village's door. Trustee Busse commented that he thinks that this is a very valuable piece of property and should be on the tax role He feels that we have made a commitment in the past to have the property return to tax producing status and thinks we should fulfill that commitment. Trustee Busse stated he is sensitive to seniors and supports Catholic Charities through his business on an annual basis. However, it is just too valuable a piece of property to be tax exempt. Trustee Hoefert expressed his reservations about the Catholic Charities portion of the development because of comments that say Broadacre has downsized their units and they now do not have the amenities required to someday be converted to condominiums. Trustee Hoefert restated his position by saying that we need senior housing in this town and that the Pine/ Wille site was a good place for it. Mr. Lopez stated that at this time even if Catholic Charities is not built the size of the Broadacre units would stay the same. Mr. Lopez concluded his statement by explaining the difference in rental apartments and condominiums and how they are designed. Trustee Hoefert concluded the discussion by stating that he would support the Catholic Charities proposal because it's something that the community needs. The Village has a good location in the Pine/ Wille area and it would a mistake to forego the opportunity to bring additional senior housing to the Village. Mr. Allen Saunders, Housing Consultant for Catholic Charities, made brief comments about the program and the benefits other communities have derived from it. Trustee Wilks asked Mr. Saunders what would happen to his time table if the Village said to you tonight that we have reservations about the tax 3 exempt issues in our TIF District. Can the clock still be ticking for Catholic Charities, can we still apply and will you do another project in Mount Prospect for senior housing in another location? Mr. Saunders replied that we would have to be given some assurance what the time table would be, Trustee Wilks stated that she supports senior housing and Catholic Charities. She stated that she carne to the meeting to support putting the Catholic Charities in this area, but if we have some time, we can ask staff to investigate other locations. Trustee Wilks stated that she would hate to see the Village give away all of its options on downtown development. However, Trustee Wilks saw some merit in a brief delay which would enable staff to investigate other locations. Trustee Wilks concluded her comments by stating it is important for the Village to keep the tax base whole especially in this downtown area. The only way she would be able to support a tax exempt project for 40 years is if the Board made certain that the other development in the area carried its own weight and that the senior housing component added to the attractiveness of the overall project, Mr., Hal Predovich Chairman of the Business District. Development/ Redevelopment Commission stressed the importance of getting something started in the downtown. He stated that the Village can maintain its commitment to senior housing and get something going. Trustee Leo Floros after some discussion on the matter stated that he would support the request for senior citizens housing with Catholic Charities and appealed to the Board not to delay any longer. Trustee Floros stressed the importance of getting something .started downtown. Trustee Clowes, in reviewing the list of options prcvided by staff stated that there are .no other good alternatives. He stated that this .project would start the process moving and that this is a plan that can -work and does get the project moving. Trustee Corcoran brought the board back to his original issue that there are numerous properties that are tax exempt; such as Village owned parking lots in the downtown area. He proposed that with the right investment the area over these parking lots could be better utilized. At this point Mayor Farley polled the board to see if there was a consensus to let Catholic Charities build on that location. Mayor Farley polled the Board and there was consensus for further exploration of potential, sitesas suggested by Trustee Corcoran, Mr. Janonis after some discussion on the matter stated that he will bring the information back to; the Board meeting of December 15th. 4 V. MOUNT PROSPECT 2000 - REVENUE/ EXPENDITURE PLAN Mayor Farley in his opening comments stated to the Board that he thought it was prudent to prepare for something less than the possible economic turnaround. The Mayor stated that he would like the Board to arrive at a consensus this evening. Since the last meeting it was stated that information was provided that enabled the Board to do an analysis and make some computation on their own so that we can expedite this and move it forward rather quickly. Village Manager Michael E. Jannis began the discussion by identifying three important issues that needed to be resolved. One is that we need to determine what the 1992 tax levy will be. He continued that at the meeting of the 15th, there would be a public hearing as well as the second -reading of the Tax Levy Ordinance. Secondly, the deficit reduction plan for 1993/94. Hopefully decisions made for FY93/94 would set the tone for 94/95 and 95/96 and so on. The final item tonight for your consideration is to look at a revised schedule for the budget preparation. Mr. Richard Bachhuber Chairman of the Finance Commission addressed the Board by reading the report that was prepared by the Finance Commission at their last meeting. Mr. Ken Westlake Chairman of the Solid Waste Commission began his discussion with the review of the various issues pertaining to solid waste disposal. He summarized by stating that the solid waste commission comes down pretty strongly on the side of increased reliance on user fees. Trustee Hoefert could not see the wisdom of returning only a portion of the taxes from a sticker system. Trustee Hoefert stated he could support the transferrin the Water Fund and the ambulance fee. Trustee Hoefert commented that the Village Manager said he could find an additional $70,000 in reductions. Mr. Hoefert stated that if his calculations were correct there would be a $59,000 deficit remaining and he thought it would be easy enough to identify $60,000 in service reductions. This would total $200,000 in reductions. He could not support the increase in sales tax or the gas tax. His plan would also utilize the General Fund Balance, Trustee Corcoran began his discussion by agreeing with many of the positions stated by Trustee Hoefert on garbage collection adding that there is a lot to be absorbed by households. He identified that some households are more resistant than others. His second point was that there are no secondary markets developed for the recycled materials to speak of. Trustee Corcoran began identifying the other options he would support. First would be the reductions totaling $139,900, the Water 9 Fund transfer of $500.000 and unlike Trustee Hoefert, he supported the 1/4% sales tax increase rather than ambulance fee. He proposed that the sales tax be capped for three years. The General Fund transfer is something that should be considered. Given all those factors, Trustee Corcoran carne up with a $69,600 deficit. Trustee Wilks began by taking the position to wait until 1994 for the new contract on garbage collection to make changes. In respect to Vision 2400, Trustee Wilks stated that this vision should be multi -faceted. Trustee Wills stated that the Board has only discussed ,one side of the issue. She stated the Board has not been given the opportunity to see how the Village delivers services and that if the Board were to explore every possible option, tax payers will see that the Board is doing its best to cut unnecessary expenditures. On the other issues, Trustee Wilks stated she would support the Water Fund transfer, not the sales tax increase or the ambulance fee or the gas tax. At this point it has not been proven that it is necessary. Trustee Wilks finalized by supporting using excess General Fund balance, At this point, Mr. Janonis offered that if we can garner some direction based on this discussion the Board will see the reductions as part of the budget presentations and they will become very specific: Mr. Jepson offered that Trustee Wilks' reductions left a deficit of $179,600 Trustee' Busse stated that he was happy with ,the refuse disposal as it exists. He supported the Water Fund transfer and was opposed to the property tax increase, as well as the, sales :tax increase. He also did not support he ambulance ;fee or the gas tax. Trustee Busse supported the General Fund and challenged, staff to find ways to cut. The amount to be recovered was the same as Trustee Wilks, $179,600, Trustee Clowes began by addressing the tax levy. He supported the recommendation to exclude debt service from the maximum increase of 5%. However, he said the maximum should not exceed inflation, or 3%. This approach would result in a 1992 tax levy increase- of 6.1%. He would support going to the refuse ;disposal system of one bag because it is a fairer system to all; business and residents. Trustee Clowes said he supported the Water Fund transfer, but that it should be spread over two years. He supported the amount of $270,000 for 93194 and $230,000 for 94/95. He supported an ambulance fee and the General Fund transfer of $143,850 in 93 / 94 and $143;850 in 94 / 95. He does not support the imposition of the 1/4% sales tax unless there is a quid pro quo. This proposal identifies a negative $71,450. Trustee-Floros supported the expenditure reduction of $139,900. He was also reluctant to make changes in the refuse disposal at this time. He supported the Water Fund transfer, but was opposed to the ambulance A fee, the 1 / 4% sales tax increase and the gas tax. He stated he had no problem with the General Fund transfer. Trustee Floros' plan left the same deficit as Trustees Busse and Wilks and that was $179,600. Discussion followed on the various differences and options that were presented. Based on Board comment a consensus was reached that the 1992 Tax Levy be limited to a 5% increase including debt service. Lengthy discussion followed. This discussion included comments about methods for reducing the deficit further, about giving direction to staff by looking at the situation long term because the problem gets worse in a few years. If not resolved, Trustee Corcoran stated it would neccesitate a change in the way the Village does business. Drastic cuts would need to be made in every department affecting even essential services. Trustee Hoefert suggested that the discussion focus on 94/95. The basis of this discussion pertained to refuse disposal and reducing the deficit. Trustee Wilks, asked Mayor Farley where he stood on the issues of gas tax, sales tax and other revenue. Mayor Farley stated he could support a change in the sales tax, however he was not in favor of the gas tax or ambulance fee. Mr. Janonis offered his analysis of the situation and the direction given by the Board. He stated that he thought that service cuts would be necessary. He requested the Board review the schedule for the budget process because staff will need more time. Mayor Farley commended Mr. Janonis for the work that was done by staff and his summary. VI. MANAGER'S REPORT Mr. Janonis did not have any items for his report. VII. ANY OTHER BUSINESS Motion made to enter into Executive Session at 11:20 p.m. Another motion was made to come out of Executive Session at 11:55 p.m. VIII. ADJOURNMENT The meeting adjourned at 11:55 p.m. Respectfully submitted, �� Edward M. Cavello Fire Chief 7 Village of Mauna Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: MAYOR GERALD L. FARLEY AND BOARD OF TRUSTEES FROM: VILLAGE MANAGER DATE: DECEMBER 18, 1992 SUBJECT: DISCUSSION REGARDING POTENTIAL CHANGES TO VILLAGE BOARD AGENDA FORMAT Over the past several months, elected officials have expressed a desire to review the Village Board Agenda format in an effort to: (1) Provide all interested adequate opportunity to speak on matters of interest and concern; (2) Reduce the number of times a petitioner (ZBA, Plan Commission, etc.) has to appear before the Village Board while also allowing interested parties to speak to such matters; and (3) To streamline the Agenda so that Village business is conducted in the most expeditious and efficient manner possible while still honoring the goals identified in points 1 and 2. This discussion may also be the right time to address the long Deferred Item of Voting Requirements. With two Trustees expected to be absent from this meeting, I do not anticipate that final consensus will be reached on any of the discussion items, however, the information provided can be reviewed and the discussion process at least begun. There are no time tables as such that we are working against so full discussion should be encouraged. Your information package includes, among other things: 1. Chapter 2 of Village Code. 2. A Memorandum from Everette Hill addressing threshold legal issues. 3. Trustee Clowes' memorandum regarding Proposed Changes to the Agenda. 4. Sample Agendas from other communities. Some of the items which have been raised for consideration include: 1. Change Invocation to Pledge of Allegiance. 2. Requiring citizens to sign in as a pre -condition to speaking under Citizens to be Heard. 3. Putting specific time limits on the length of an individual's comments. 4. Add a specific section for Trustee comments. 5. Rearranging order of Agenda items so persons receiving awards or recognition do not have to sit through sometimes lengthy discussions arising under Citizens to be Heard. 6. Dropping the concurrence/non-concurrence step of the ZBA and Plan Commission approval process. 7. Adopting the Consent Agenda procedure. 8. Establishing a "formal" time limit for the conduct of meetings; i.e., 11:00 p.m., that could be waived upon Motion and an affirmative vote by the Board. This is by no means an exhaustive list and since the subject is open for discussion, it could conceivably be appropriate to consider the size of the paper the Agenda is printed on. Attached to this memorandum is a sample copy of our current Agenda so that you can visualize potential changes. Also included in your package of material are sample Agendas from the Villages of Palatine and Hoffman Estates. These two communities were chosen particularly because they do have Consent Agendas. You will also notice that the style and format of those two Agendas are substantially different than that followed here in Mount Prospect. I believe the relevant point is that there is almost an infinite number of ways to format the Agenda. The format used in Mount Prospect has, by and large, proven workable and so I would not suggest the need for any wholesale changes. However, that does not mean that minor adjustments would not result in an improved product. One item that I would encourage Board members to consider is the desirability of standardizing the voting requirements for the multitude of different issues that come before you. Point #8 in Mr. Hill's memorandum indicates that the Board, under its home rule powers, can standardize voting requirements if it so chooses. Also attached to Mr. Hill's memorandum is a current list of the various voting requirements we currently operate under. I think we have all found those varying requirements to be somewhat confusing. As a suggestion, the Board may want to consider keeping the majority/super-majority distinction in certain cases but standardize the issue of whether the vote must come from corporate authorities or those present and voting or those elected and voting, etc. At this time, staff does not make any specific recommendations other than: (1) Consideration should be given to standardizing voting requirements as much as possible; (2) Looking for acceptable ways to streamline the ZBA/Plan Commission approval process and (3) Giving due consideration to the concept of a Consent Agenda as a means of disposing of routine non -controversial matters by way of an omnibus vote. It should also be remembered that any decisions made to change the current format of the Agenda can always be rethought if, in practice, they do not prove workable. MMICI-�IAE E. J N I NIS MEJ/rcc