HomeMy WebLinkAboutCOW Agenda Packet 07/10/2001 COMMITTEE OF THE WHOLE
AGENDA
Meeting Location: Meeting Date and Time:
Mount Prospect Senior Center Tuesday, July 10, 2001
50 South Emerson Street 7:30 p.m.
I. CALL TO ORDER - ROLL CALL
Mayor Gerald L. Farley
Trustee Timothy Corcoran Trustee Michaele Skowron
Trustee Paul Hoefert Trustee Irvana Wilks
Trustee Richard Lohrstorfer Trustee Michael Zadel
II. ACCEPTANCE OF MINUTES OF APRIL 24, 2001
Ill. CITIZENS TO BE HEARD
IV. 2002-2006 CAPITAL IMPROVEMENTS PLAN
In 1997, the Village Board formally adopted its first comprehensive 5-year Capital Improvements Plan
(CIP). In previous years, the Village used a number of separate documents in its capital projects
planning. While each of these documents was useful in its own right, none offered an overall picture
of the Village's capital needs. The establishment of a 5-year Capital Improvements Plan (CIP)
provides a comprehensive view of the Village's capital needs for consecutive rolling five-year
windows.
The proposed 2002-2006 ClP is generally comprised of projects which involve the purchase or
construction of long-lived, tangible assets at a cost of $25,000 or more. The total cost of all requests
for all years included in the plan is approximately $55.1 million.
Many ofthe requests in the plan are simply continuations of established projects. Others are projects
not currently in progress but have been discussed by the Village Board on previous occasions. Some
requests are being presented for the first time through the CIP. Given that the CIP is intended to
afford a comprehensive view of the Village's capital needs, it is fitting that all of these project requests
be included in the proposed plan. Ofthe $55.1 million of project requests included in the proposed
CIP, about $31 million (or 56%) is for the continuation of established projects including approximately
$16 million for street resurfacing.
NOTE: ANY INDIVIDUAL WHO WOULD LIKE TO ATTEND THIS MEETING BUT BECAUSE OF A
DISABILITY NEEDS SOME ACCOMMODATION TO PARTICIPATE, SHOULD CONTACT THE
VILLAGE MANAGER'S OFFICE AT '100 SOUTH EMERSON, MOUNT PROSPECT, ILLINOIS
60056, 847/392-6000, EXTENSION 5327, TDD #847/392-6064.
A project's inclusion in the CIP does not guarantee its funding and accomplishment. The CIP is a
planning document. As such, it is subject to change. The CIP is reviewed and updated on an annual
basis. The next CIP will cover the years 2003 through 2007.
Special attention should be given to the projects requested for 2001. Those are the projects, which
would potentially be included in the Village's next annual operating budget. Although the Village
Board may decide not to fund a 2002 project request included in the final 2002-2006 CIP, the CIP
should serve as a "pre-budget" for capital items. The 2002 project requests included in the proposed
CIP amount to $21.7 million. Of this amount, $7.3 million (or 34%) is for the continuation of
established projects including $3 million for the Street Program.
The proposed 2002-2006 CIP was distributed on May 25, 2001 to the Finance Commission and on
June 29 to the Village Board. The Finance Commission held a meeting on June 28 to review the
proposed document. Copies of the draft minutes from the Commission's meetings will be provided
separately. Once the Committee of the Whole completes its review of the proposed 2002-2006 CIP,
it will be presented to the Village Board for formal acceptance on July 17, 2001.
V. ANY OTHER BUSINESS
VI. MANAGER'S REPORT
VII. ADJOURNMENT
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MINUTES
COMMITTEE OF THE WHOLE
APRIL 24, 2001
I. ~
The meeting was called to order at 7:32 p.m. by Mayor Gerald Farley. Present at
the meeting were: Trustees Timothy Corcoran, Paul Hoefert, Dennis Prikkel,
Michaele Skowron and Irvana Wilks. Absent from the meeting was: Trustee
Richard Lohrstorfer. Trustee-Elect Michael Zadel was also present. Staff
members present included Village Manager Michael Janonis, Assistant Village
Manager David Strahl, Community Development Director William Cooney,
Deputy Community Development Director Michael Blue, Senior Planner Judy
Connolly, Project Engineer Chuck Lindelof and Finance Director Doug EIIsworth.
I1. APPROVAL OF MINUTES
Approval of Minutes from April 10, 2001. Motion made by Trustee Hoefert and
Seconded by Trustee Skowron to approve the Minutes. Minutes were approved.
II1. CITIZENS TO BE HEARD
None.
IV. DEVELOPMENT CODE UPDATE
Community Development Director Bill Cooney provided a general technical
summary of the focus of the update. He stated they are looking at the policy
applications of the Code by dividing it into three tiers for application purposes.
The three tiers are Development, Site Improvement and Maintenance Code
application or requirements. He provided an outline of the clarification of the
Code requirements and the need to streamline the process to encourage
improvements. He felt that by developing these three tiers, there would be
encouragement for improvement depending on the level of activity contemplated
by the property owner.
General comments from the Village Board members included the following items:
It was suggested that the process be tested out to see if it works before full
implementation. There was also a question regarding the definition of expansion
of development compared with site improvements and the need to clarify
definitions. It was also pointed out that if there is an opportunity to streamline the
timeframe for approval, such improvement should be considered.
Community Director Bill Cooney stated that the proposal has been reviewed
with ZBA and Plan Commission and would consider a test mode for the process.
General consensus of the Village Board was to consider the Development
Code modifications as presented in the near future.
V. MULTIPLE BOND RATING~
Finance Director Doug Ellsworth outlined the options that the Village could
undertake to obtain an additional Bond rating beyond the current rating that it
enjoys at this time. Benefits include a second review and provides a second look
at the finances, however, the cost of the second rating is based on the size of the
Bond issue and the Bond consultant the Village uses feels that the additional
cost which would be incurred by obtaining a second rating would not likely
outweigh any possible savings from a more favorable rating. He also pointed out
that the typical objective of lenders is to review the ability to repay the loan and
they formally look at such things as fund balance against the ability to repay the
loan. He also stated that the Bond consultant does not recommend alternating
between agencies due to local acceptance in the Bond market for a specific
Bond rater. He stated it may be worth it to review finances at the time of the
potential Bond sale to determine whether the Village would be in the process of
requesting a review to get an approved rating.
Consensus of the Village Board was to retain the current rating and not
consider a second Bond rating at this time.
VI. ACCEPTANCE OF CREDIT CARDS FOR MUNICIPAL PAYMENT,~
Finance Director EIIsworth brought this forward because this is a policy
question as to whether the Village should accept credit cards or debit cards for
payment of Village bills. He stated the Village would pay a fee based on the
volume which could range anywhere from 2-3% fee per credit card transaction.
He stated therefore the Village would only receive 97-98% of the actual payment.
He stated that this is a convenience to the customers and would cause the cash
customers to underwrite the convenience provided to the credit card customers.
He stated a recent survey by the Northwest Municipal Conference showed that
48% of the communities accept credit cards. He stated that it would cost the
Village approximately $5,000 as a one-time set-up fee to begin accepting credit
cards.
General comments from the Village Board members included the following items:
A question was raised regarding a user convenience fee to help recover the
portion of the credit card payment that the Village would lose for the
convenience. There was also a concern regarding the loss of revenue and
security of the use of credit cards.
Finance Director EIIsworth responded by stating that it would require a third
party to collect payments to cover additional costs which is typically referred to as
a user convenience fee. He suggested that he monitor the use of credit and
debit cards and report back to the Village Board in a couple of years to see if the
fee level has changed.
General consensus of the Village Board was to continue the current
process of only accepting a check or cash for payment of Village bills and
not accept credit cards or debit cards at this time.
VII. First Quarter Financial Re_Port
Finance Director EIIsworth provided a summary of the Budget for the first three
months of 2001. He stated that there are some trends which may be beginning
to show regarding revenue flow during the first several months of the year. He
also pointed out any substantial changes that he has noticed in revenue and
expenditures during the first three months. He pointed out that the Infrastructure
Maintenance Fee revenue will be an issue in the very near future since the ruling
by the Illinois Supreme Court. The Village has the potential of losing revenue
which has previously been paid by wireless companies. He also stated that the
health insurance costs to the Village are going to increase 15% as of July 1 and
the Police pension enhancements that were required by State law have impacted
the expenditures for 2001. He also stated that there will be an increase to the
Northwest Central Dispatch for the cost of services which was not built into the
Budget.
This information was provided for general information purposes only and
required no Board action at this time.
VIII. VILLAGE MANAGER'S REPORT
Village Manager Janonis reminded everyone that Arbor Day is coming up on
April 27 and the Welcome New Resident is scheduled for April 28. He also
stated that May 1 would be the swear-in for the new Board member and swear-in
for the re-elected Board members and the Mayor which will include a reception
that will start at 6:15 p.m.
IX. ANY OTHER BUSINESS
Trustee Prikkel asked that the Village Board look at doing something about the
southeast corner of Busse and Golf to improve the appearance of the site.
Trustee Skowron suggested a discussion in the near future regarding the
Village Disclosure Statement required by the Village.
X. ~l~
Since there was no further business, the meeting was adjourned at 9:'14 p.m.
Respectfully submitted,
DAVID STRAHL
DS/rcc Assistant Village Manager
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Village of Mount Prospect
Mount Prospect, Illinois ·
INTEROFFICE MEMORANDUM
TO: VILLAGE BOARD AND FINANCE COMMISSION
FROM: DIRECTOR OF FINANCE
DATE: MAY 25, 2001
SUBJECT: PROPOSED CIP: 2002-2006
Attached hereto is the proposed 2002-2006 Capital Improvements Program (CIP).
The projects being considered for the year 2002 total $21,748,107. The five-year total for all projects
is $55,109,091.
We encourage you to read the Manager's transmittal letter beginning on page ii. This correspondence
describes the purpose of the CIP, highlights some of the more significant projects, and reviews project
funding.
To help you evaluate our ability to fund the requested projects we updated the five-year financial
forecasts for the major operating and capital projects funds that provide funding for the CIP. We have
included these forecasts in the CIP document this year (see Section G).
In general, both the number and magnitude of the projects being presented directly relate to the monies
expected to be available. However, from reviewing the CIP requests in conjunction with the five-year
financial forecasts you will find three areas of potential concern.
General Fund Projects
The CIP is showing projects totaling an average of $313,000 as being paid from General Fund
revenues. This in itself appears reasonable given the fact we have funded in excess of $300,000 of
capital expenditures out of the General Fund for the past several years.
However, the five-year financial forecast for the General Fund is showing significant operating deficits
beginning in 2002 and continuing through 2006 (see page G-2). What this means is that we could find
it difficult to cover these projects and continue the annual operating transfer of $564,000 to the Capital
Improvements Fund.
As we get into the 2001 mid-year review and the actual budget process we should have a better handle
on our revenue picture. We do take a very conservative approach to estimating revenues for the
financial forecasts. It is very likely the operating deficits will be much smaller than those projected.
Proposed CIP 2002-2006
May 25, 2001
Downtown Redevelopment Fund
Based on the capital projects being recommended the Downtown Redevelopment Fund will see
negative fund balances in years 2002 through 2006 (see page G-10). The Fund should return to a
positive fund balance position in year 2007. The negative fund balance is projected to be at its peak in
the year 2003, when it is at a negative $1.2 million. If the Village wants to continue the redevelopment
efforts the General Fund would have to front the monies to the Redevelopment Fund until the year
2007. Of course, we could set it up so that the General Fund is repaid with interest.
The following table summarizes the financial status of the Downtown Redevelopment Fund if the
proposed CIP projects are included as expenditures:
Downtown Redevelopment Fund
'rojected Fund Balance
2002 ' 2003 2004 2005 2006
Beginning Balance $331,736 $(791,524) $(1,232~694) $(1,069,125) i$(591,578)
Revenues 6,000 357,466 496,755 680,462 754,332
Expenditures (1,129,260) (798,636) (333,186) (202,915) (217,882)
Excess (Deficiency) (1,123,260) (441,170) 163,569 477,547 536,450
Ending Balance (791,524) (1,232,694) (1,069,125) (591,578) (55,128)
Water and Sewer Fund
The proposed CIP for 2002-2006 includes the start of a combined sewer system improvement program
at an approximate cost of $750,000 per year. This new program results in significant operating deficits
in the Water and Sewer Fund as can be seen in the five-year financial forecast (pages G-13 through G-
15): The deficits range from $793,000 to $I.1 million.
The drafr CIP is showing five projects valued at $17.1 million as being funded through the issuance of
general obligation bonds. Two of these projects are the construction ora new Village Hall/Community
Center and a multi-level parking structure, which account for $12.6 million of the total amount.
Staff looks forward to discussing the draft CIP with you in the very near future.
DOUGLAS R. ELLSWORTH, CPA
\~DP01\V01\USERS~DELLSWOR\CIP\02-06\Correspondenee~vlemo to Bd.doe
Copy: Michael Janonis, Village Manager
Dave Strahl, Assistant Village Manager
Department Directors
Mount Prospect. PUblic Works OspBrtment
1700 W. Oentral Road, MoUnt Peoapeot, Illinoia 60058-2228
Phone 847/870:5640 Fax 847/253-9377 TDO 847/382-1235
NOTI C £
THE: JULY g~ 2001 ME:E:TING OF THE: SAI~E:Ty CDMMISSIOhl HAS
BE:E:N CANCE:LLE:D. THE; NE:XT i~E:GULAR ME:E:T]HG IS SCHE:DULE:CI
I~OR MONDAY~ AUGUST 13~ ~-rl01 AT 7:30 F=.M. AN AGE:NDA OR
CANCE:LLATION NOTICE: WILL BE: SE:NT PRIOR TO THIS ME:E:TING,
Recycled Paper - Printed with_ Soy Ink
VILLAGE OF MOUNT PROSECT
TAX INCREMENT FINANCING DISTRICT NO. 1
JOINT REVIEW BOARD
ORDER OF BUSINESS
SPECIAL MEETING
Meeting Location: Meeting Date and Time:
Mount Prospect Village Hall Thursday, July 19, 2001
100 South Emerson Street 3:30 P.M.
Second Floor Conference Room
Mount Prospect, Illinois 60056
I. Call to Order
II. Roll Call
III. Selection of Chairperson
IV. Update on the Downtown Redevelopment Project
V. Discussion Regarding the 2000 Annual TIF Report
VI. Discussion Regarding the Current TIF Financial Pro-Forma
VII. Other Business
VIII. Adjournment
Any individual with a disability who would like to attend this meeting should contact the
Village's Director of Finance at 100 South Emerson St., (847) 392-6000, TDD (847) 392-6064.
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