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HomeMy WebLinkAbout11/04/2010 FC MinutesFINANCE COMMISSION MINUTES OF THE MEETING NOVEMBER 4, 2010 EMERGENCY OPERATIONS CENTER CALL TO ORDER The meeting was called to order at 6:10 p.m. Those present included Chairman Vince Grochocinski and Commissioners Pam Bazan, Wayne Gardner (arrived at 6:15), John Kellerhals, Don Ocwieja, Tom Pekras and Ann Smilanic. Also present were Village Manager Michael Janonis, Assistant Village Manager Dave Strahl, Director of Public Works Glen Andler, Deputy Director of Public Works Sean Dorsey, Finance Director David Erb, Deputy Finance Director Lynn Jarog and Finance Administrative Assistant Lisa Burkemper. Also present were Village employees Sal Castellanos, Andy Ramel and Mark Pope. II. APPROVAL OF MINUTES Commissioner John Kellerhals motioned to approve the minutes of October 21, 2010. Commissioner Tom Pekras seconded the motion. With all members in favor, the minutes were accepted with the exception of one typographical error. III. REVIEW OF THE PROPOSED 2011 VILLAGE BUDGET Public Works Mr. Andler began the discussion by stating the 2011 Proposed Public Works Operating Budget totals $24,384,076, which is a decrease of 8.97% from the previous budget. Mr. Andler highlighted several of the significant projects in the Public Works budget. In order to accomplish the reduction three full - time and nine seasonal positions were eliminated and $210,000 in general fund cuts were made. There was an increase of $422,000 in the vehicle replacement fund due to vehicle lease payments and maintenance being added back into the budget after a freeze in 2010. Mr. Andler advised the biggest impact to the loss of employees will be to emergency response activities and snow removal operations. There will also be reductions made to tree trimming and fire hydrant valve work. Under the streets division two full -time and five seasonal maintenance positions were eliminated, all new sidewalks were eliminated and the sidewalk cost share program was also eliminated. In 2011 the parking lot pay stations are set to be replaced at a cost of $160,000. The new machines will accept credit cards, debit cards and will likely have the option to pay by phone. The cost for replacement will be funded by the parking fund. Under the forestry division two seasonal positions were eliminated. There were reductions in contractual services, plantings, share cost tree planting, tree trimming, tree /stump removal and contractual sprayings. Minutes of the Finance Commission Page I of 3 November 4, 2010 Under the engineering division there were two seasonal positions eliminated. All expenses were held to 2010 levels and $11,000 in vehicle lease payments were added back into the budget. Under the water and sewer division several projects are slated to begin in 2011. The Automated Meter Reading (AMR) system is proposed to be replaced. The project was supposed to begin in 2010 but was postponed to 2011. Costs of $465,000 included in the 2010 budget have been moved to 2011. The 2011 budget includes an additional $100,000 for the project. Sewer improvements are scheduled for the Lake Briarwood area sanitary sewer. Phase I includes $611,000 in 2011 and Phase 2 includes $325,000 in 2012. Capital projects proposed for 2011 total $3,311,000; some projects include $150,000 for the police and fire building roof, $45,000 for replacement of two HVAC units at police and fire, $75,000 for repairs to the police and fire parking facility ramp, $1,000,000 in combined sewer /read yard drainage improvements. Commissioner Tom Pekras asked why nearly 1,000 street signs were proposed to be replaced or repaired in 2011. Mr. Andler advised there are new requirements for intensity and signs must meet the new standards by 2013 -2014. Non - Departmental The 2011 Proposed Non - Departmental Budget reflects a 4.7% decrease from the 2010 Budget. Mr. Janonis provided a handout that outlined the special events costs as prepared by Public Works. The decrease of 4.7% is due primarily to the elimination of the winter festival parade. Debt Service The Debit Service Proposed Budget totals $2,416,548 and is a 3.9% increase from the 2010 Budget. Mr. Erb discussed the possibility of an advanced refunding of the 2002 Library and 2003 Village Hall Parking Deck bonds. Mr. Erb also advised there is no new debt planned for 2011. Total Village and Library debt is $42.6 million, of which $15.6 is Library debt. Debt as a percentage of Equalized Assessed Value (EAV) is just 1.9 %, and all existing debt will be paid in 2029. Insurance and Contingences Mr. Erb stated the Proposed Casualty and Property Insurance Budget is $879,700, which is a 5.2% decrease from 2010. Life insurance and health insurance Proposed Budget totals $5,907,643. This remains flat from 2010 because of the elimination of the full -time positions in the Proposed 2011 Budget. Pen.cinn.c The 2011 Proposed Pension Budget is $6.9 million, which is a 7.5% increase from the 2010 Budget. The Fire Pension budget totals $3,269,073, which is a 4.7% increase from the previous year. The fire pension 2010 property tax levy increased 23.5% to $2.2 million. Pension payouts account for $3.1 million of the total fire pension budget. The 2011 Proposed Police Pension budget is $3,577,000, which is a 10.3% increase from the 2010 budget. The police pension 2010 property tax levy increased 22.4% to $2.5 million. Minutes of the Finance Commission Page 2 of 3 November 4, 2010 Village of Mount Prospect Library The Library Proposed Budget was not available when the Village's Proposed Budget document was prepared. Their total Proposed Budget for 2011 is $9,801,109, which is an increase of .9% from the previous year. Debt Service accounts for $1.6 million or 16.6% of their total budget. The proposed tax levy is $9.3 million, which is a 2.9% increase from the previous year. IV. CHAIRMAN'S REPORT There was nothing to report. V. FINANCE DIRECTOR'S REPORT There was nothing to report. VI. OTHER BUSINESS Commissioner John Kellerhals wanted to thank staff for all the work that was done to put this budget together. All the members in attendance concurred. VII. NEXT MEETING: NOVEMBER 11, 2010 Commissioner Tom Pekras motioned to adjourn which Commissioner Pam Bazan seconded. The meeting was adjourned at 9:14 p.m. The next meeting will be November 11, 2010. Respectfully submitted, Lisa Burkemper Administrative Assistant Finance Department Minutes of the Finance Commission Page 3 of 3 November 4, 2010