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Home My WebLink About10/28/1997 COW minutes ('"'% ; ~ MINUTES :' '~ : COMMITTEE OF THE WHOLE ~ ~ ~ ~ '~ ' ' OCTOBER 28, 1997 ' I. CALL TO ORDER ~ ' ~ ~ The meeting was CElled to' order at 6:09 p.m. by Mayor Farley. ? Present at the meeting were: Trustees George Clowes, Timothy Corcoran,~Paul H~efert, Richard Lohrstorfer, Daniel Nocchi and Irvana Wilks. Staff present included: Village Manager' Michael Janonis, Assistant Village Manager ~ David Strahl; Finance %' Director Brian Caputo,~ Assistant~Finance Director Carol Widmer and Human Services Director Nancy~Morgan. ~' '.. II. MINUTES ~' . ~' AcceptanCe of Minutes of OctOber: 14, 1997.'Motion made by Trustee Hoefert and ~ Seconded by Trustee Corcoran to approve the Minutes. Minutes were approved unanimously. '~ " ~'~ III.' CITIZENS TO BE HEARD'~ '~ None. "" ~ IV;"' 61998 BUDGET DISCUSSION' ' ~ ~' Mayor Farley opened the discussion by providing a general overview of the Budget ', process. He stated tl~ere will be two additional Committee of the Whole meetings '. to discuss the proposed Budget for ir~put from citizens. '~ Viliage Manager Janonis provided a'ger~erai overview Outlining the 1998 Budget ' process. He also Suggested that the Board conSide? discussing the 1999 forecast at the lastc0mmittee of the Whole meeting on No~,ember 25. He felt it would be . easier to address the'1999 items'at th'e end of the process because it may take ~ additional time to discus~ the"1999 prop0~als. 'He alscJ outlined some of the changes in the business conditions within the communit~ywith the cha'nge in major revenue producers.~ ' ~ He also provided a general overview of how the Internal Service Fund charges are allotted to each Department. He stated that programs which have offsetting revenues are marked in the Budget along with items that are carryovers and Capital Improvement Projects that were discussed during the CIP process earlier in the year. He stated that the Vehicle Replacement Fund, when it was started in 1990, received no infusion of funds to begin purchasing vehicles at that time, therefore, all purchases for vehicles since then have been on a pay-as-you-go basis. The Vehicle Replacement Fund has an unfunded liability of approximately $4.5 million and extending the life and use of the vehicles has reduced the liability by $750,000. In this Budget, he is requesting a one-time transfer from the Risk Management Fund to the Vehicle Replacement Fund of $750,000 to assist in reducing the unfunded liability, howe, ver., this wil! ~not eliminate the total projected ,deficit in the Vehicle Replacement Fund. ~ ',! ~T '~ '~'.~ ,',~ He stated tl~at one of the, n,ew items that the Board ~vill not~i ,c9 i.n the B'udg~t proposal ~is the u~se of effi(:Jiency measures~within each Department s.howing .input/output and the comparison with other' c(~mmunities. He stated,that the next Iogi.cal step in efficiency measures would be to survey citizens to determine input of service needs to assist in future Budget preparation. He stated that a recent suggestion has been forwarded to the Northwest Municipal Conference to standardize data accumulation aqd diss.em!nation,of,~effic!encY.meas,ur, es for all Conference participants. j~ was' assumed during the Mid'Year Budget, Review for Th~ p~o cted defi~;it ihat ' '" ~ ~" 1998 has been avoided due to spending controls and additi(~nal Revenue sources, most notably the Infrastructure Maintenance Fee,. which the~Board recently approved. He also stated that lower than expected me~dical insurance costs have reduced expenses for 1998. He stated that another item worth bringing to the attention of the Board at this time is the fact that the Capital Improvement Fund will be exhausted at the end of 1998 and there is a need ,to address a ,regular fund!ng source to handle mid-range Capital Improvement Projects. , dget',is ~'~'"" ,~ The 1998 ,B~ . . pr, ojected to increase` by,,6%,~ . however, if the'recommended $1 million for downtown r.e~eyelopment is, removed from., the ,Budget, .the Budget increase would be reduced to 4% for the coming year. He stated that TIF Projects ,covering downtown,r, edevelopme, nt do not impa¢t the General Fund levels. He ,highlighted Revenue increases of a 'ProPerty Tax in~;rease of 4%~-a Water Rate increase~ of,4%,.a Refuse Sticker increase of 25¢ per sticker, and Infrastructure Maintenar~ce. Fee 'revepue' Of apl~.r°ximately $200,000 an~n, uall~,: .The projected ,_,st?eet reconstruction, amount for 1998 is.$4.,2 ..mill!an with $2 million of that amount ?"'~ coming ~om a Bond sale~ The p~ojecte,d General Fund increase is less than 1%. This Budge~'aiso reflects no new positions and assumes a 3.5% wage increase for employees. As previously stated, the Capital Improvement Fund is in the need of a regular funding source and it would be necessary to allot approximately $500,000- $750,000 in annual funding to handle the mid-range capital items. He stated the 1999 projected deficit in the General Fund is $400,000. Staff has reviewed their respective Budgets and has been able to balance the BUdget for 1999 with numerous cuts.~ He s~ated the proposed cuts' from staff maintain core services and civic ~un'ding and the projected impact is outlined in ~orrespondence ~from the vadous Departments and is available ~for discussion at the end of the 1998 Budget discussion so the Board is familiar with what the impacts of such cuts would have. ~ Finance Director Brian CapUto provided a g(~neral overview as t° the proposed Revenues expected for 1998. He stated that cost centers are used wherever possible to provide an accurate illustration as to the cost of a specific service. He provided an overvieWof the Revenue history for~1997'and ~rojected for 1998. He stated that the Village has experienced good health insurance history over the last two years and highlighted the ten-year Budget Forecast which illustrates projected deficits. He stated that the Budget reserve of the~15% tar~iet remains in place for this coming Budget. He stated that there is a preliminary projection of $700,000 surplus in the General Fund for 1998 and would recommend using a portion of that funding for Capital Improvement, funding ,with, $300,000 reserved ,for disaster response needs. Village Admihistration Ovei-vi~ew '~ ' '~ *' ~ ' ~ AsSistant village Manager David Strahl Provided a generai ~vei*View*of the Public RePresentation, Village Manager's office, Vi!lage Clerk, Cable TV and the MIS Budgets. He stated that there has been some reordering of line items into other Divisions to accurately illustrate the cost of services. For example, there has been an additional Shift of personnel costs into the Public Represer~tation Budget to represent the clerical assistance provided to the Mayor and Village Board in addition to the ~various Special projects which~ are undertaken by the Manager',s office clerical staff. There is also a shift in line items from the per§onnel cost center into the general Village Manager's Office ~cost center to accurately reflect costs associated 'with general operation and not n~cessarily personnel-related ~expense§. *The MIS Division funding was primarily taken from the Cable TV Division and the costs associated with the Cable Production Coordinator have generally been reordered into the MIS Division. Therefore, there is a limited impact showing in the general Manager's office Budget since~these costs were previously allocated in the Cable TV Division. The Village Clerk'~ Budget is generally Unremarkable. Village Manager Janonis highlighted the fact that the Village is experiencing a large number of retirements due to a generational turnover. He stated that some of the need of management training is to instill a general management philosophy due to this generational change. He also highlighted the fact that he is proposing to shift a currently vacant pad-time position from Public Works into the Village Manager's office to assist in citizen communication efforts including Newsletter preparation. He also provided an overview of personnel staffing comparison in the Manager's office compared to other comparable communities. Human Services Department Overview Human S~rvices Director Nancy Morgan provided an ovei-view ofth~ services '~"~ic~-.,. ..... ' ' ~ ' produc~'revbnue for the Human Services Department. she also provided an overview of the services whi~:h a~'e gene~'ally defined as social services, health ;"~'s~ices~and senior programs.,, She',hig~hlighted the' performance measures c~'~paring the sei~ices provided ~by the Village to other communities. General comments from the Village Board members included the fo~!owing items: There was some discos~ion concerning the proposed 1'9~9 cu~. There~was also ~a~question c6~cerning the costi'n~rbase of ihe Senior Taxi P~o'gram. Finance Director' Brian Caputo ~tated'tha~ the proposed 1999 cuts are not reflected in ~he, ~ 999 p~ojec~o Fin c De ent Ove~iew F~nance Directo~ Brian:~pbto p~o~ided a general tire.iow of the. Finance Depadment function in addition to the 1997 accomplishmehts and'the 1998 objectives. He stated that it is anticipated that a majority of the effo~ in the Finance Depadment will be the installation o'f {~ new financial ~s0~ar~ and related expenses. He also stated that he is requesting some funding to prepare one to ~o Food a~d Beverage A~dits per year 0f selected ~restaurants to ensure that reposing is accurate. He also ~rovided an ove~iew Of the'performance measures. * ~ '~ u~ e following ~tems: General comments of the V~ila Boa?d ~inCl~ded th The~~ W~s ~, question'condernin~ how full-tim~ equivalents,or FTEs We?~ calculated for companson purPo, ses.',Board members~ also stated th~ were suppo~ive of the poffo[mance~mo~sur~s or bench ~arki~ with Other communitios to determine ,where the V~llage stands in terms of se~ice~deli~e~and co~t'to provide such se~ice ~:'~,v~.. OTHER BUSINESS Viilage ;Manag~ oanonis Stated that the;next ~inance commission meeting is scheduled O~obe~ 30.' for VI. ADJOURNMENT ~' There being no further business, the meeting was adjourned at 9:00 p.m. Respectfully submitted, DAVID STRAHL DS/rcc Assistant Village Manager 5