HomeMy WebLinkAbout08/10/2010 COW minutes (special) JOINT FINANCIAL PLANNING WORKSHOP
MINUTES OF THE MEETING
AUGUST 10, 2010
FIRE STATION #14
I. CALL TO ORDER
The meeting was called to order at 6:36 p.m. by Mayor Irvana Wilks. Village Board members present at the
meeting were: Mayor Irvana Wilks and Trustees Paul Hoefert, Arlene Juracek, John Korn, John Matuszak,
Steven Polit and Michael Zadel. Finance Commission members present at the meeting were: Chairman Vince
Grochocinski and Commissioners Pam Bazan, Wayne Gardner (arrived at 6:45), John Kellerhals, Tom Pekras
and Ann Smilanic. Staff members present were: Assistant Village Manager Dave Strahl, Finance Director
David Erb, Administrative Assistant Lisa Burkemper, Human Services Director Nancy Morgan, Human
Services Deputy DirectorJan Abernathy, Chief of Police John Dahlberg, Deputy Chief of Administration Mike
Semkiu, Operations Commander John Wagner, Commander Tim Janowick, Sergeant Tim Griffin, Fire Chief
Mike Figolah, Deputy Fire Chief John Malcolm, Acting Fire Marshall Brian Loomis, Community
Development Director Bill Cooney, Community Development Deputy Director Brian Simmons, Public Works
Director Glen Andler and Public Works Deputy Director Sean Dorsey. Also present were reporters Richard
Mayer of the Mount Prospect Journal and Sheila Ahern of the Daily Herald. Absent were Village Manager
Michael Janonis, Finance Commission member Don Ocwieja and Deputy Finance Director Lynn Jarog.
II. ROLL CALL
Mayor Irvana Wilks took roll call of all Village Board and Finance Commission members.
III. WORKSHOP TO DISCUSS 2010 MID -YEAR REVIEW AND UPDATE OF THE 2011 BUDGET FORECAST
Mayor Wilks welcomed everyone and began the meeting with opening remarks regarding the 2010 Budget and
the 2011 Forecast Budget. Assistant Village Manager Dave Strahl provided some general remarks regarding
the 2010 Budget and the 2011 Forecast Budget. Mr. Strahl stated the Village anticipated there would be a
deficit going into 2011. However, since there appears to be no long -term improvements in the economy
changes are needed to deal with the 2011 deficit as well as future years. This budget crisis is like no other the
Village has dealt with before.
Finance Director David Erb outlined mid -year budget figures and reviewed the general fund revenues and
expenditures. Significant reductions in revenue are projected in home rule sales tax, real estate transfer tax
and investment income. One area expected to exceed budget is property taxes, which are expected to surpass
the budget by $175,000. This is due to a higher than anticipated collection rate.
Mr. Erb mentioned several other funds that show variances from the 2010 Budget. The Capital Improvement
Fund will have less money available due to a decline in the home rule sales tax. The Street Improvement
Construction Fund will be short because of a decline in home rule sales tax and the state motor fuel tax. This
shortage will force an adjustment to the street program, allowing only baseline projects to be completed.
Mr. Erb provided a brief overview of the 2011 Forecast Budget at mid -year. The original 2011 forecast
included a $2.5 million deficit. That deficit has now grown to just over $3.1 million. The variance of about
$567,000 is based on what is happening in 2010 and the adjustments to the revenue projections. Mr. Erb
mentioned that no assumptions for Randhurst have been added to revenue projections for 2011.
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Mr. Erb presented three options related to the property tax levy for discussion purposes. The three scenarios
included a 5 %, 6.14% and 8.34% increase in the property tax levy. A discussion followed that included
various options on where the levy should fall. Trustee Juracek added she would like to see how it would affect
the budget numbers if the Village chose to freeze the 2010 levy at the 2009 levy amount. Discussion followed
on reducing expenses through the elimination or scaling back of services, and looking at potential revenue
enhancements to address the budget deficit.
Trustee Zadel added the Board would like to see what service cuts staff suggests, so the Trustees can present
items to the residents for feedback. There was a consensus that the Board would like to show residents that the
Village is looking at service cuts as well as staffing cuts to reduce the deficit instead of looking directly to
property taxes or other revenue enhancements to reduce the deficit.
The Board directed staff to make recommendations on service and /or staffing cuts and to come up with various
scenarios to address the deficit and bring the items back to the Board for discussion.
Mayor Wilks thanked department staff for their hard work and dedication, adding that the Village is facing
difficult times with difficult decisions that need to be made.
IV. ADJOURNMENT
There was a motion to adjourn by Trustee Paul Hoefert and seconded by Trustee Michael Zadel. There was a
motion to adjourn by Finance Commission member Tom Pekras and seconded by Commissioner Ann
Smilanic. With all in favor, the meeting was adjourned at 8:30 p.m.
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