HomeMy WebLinkAbout2. COW Minutes 08/09/2011
COMMITTEE OF THE WHOLE MINUTES
August 9, 2011
I.CALL TO ORDER–ROLL CALL
The meeting was called to order at 7:10p.m. in the Village Board Room of the Village Hall, 50
South EmersonStreet, by Mayor Irvana Wilks. Present at the meeting were TrusteesArlene
Juracek, John Korn, John Matuszak, Steven Polit andMichael Zadel.Staff present included
Village Manager Michael Janonis, Assistant Village Manager David Strahl, Finance Director
David Erb, Human Services Director Nancy Morgan, Deputy Director Jan Abernathy, Police Chief
John Dahlberg, Deputy Chief Mike Semkiu, Sergeant Tim Griffin and Commander John Wagner.
II.APPROVAL OF MINUTES FORJOINT SPECIAL TRAFFIC WORKSHOP JUNE 13, 2011
Motion made by Trustee Polit seconded by Trustee Zadel.Minutes were approved.Abstaining
was Trustee Korn and Trustee Matuszak.
CITIZENS TO BE HEARD
III.
None
IV.2011 MID-YEAR BUDGET REVIEW AND UPDATE FOR THE 2012 BUDGET FORECAST
Finance Director David Erb stated that the Village ended 2010 in reasonably good shape due to
the cut backs in staff reductions heading into 2011. He had seen some slight increases in sales
tax. The projected deficit for 2011 and 2012 could be closed if reserves are used exclusively,
however;that would reduce the reserve level below 19%. He stated the Village had to spend
approximately $765,000 out of reserves due to storm expenses during this season which has
impacted the projected deficit. He stated sales tax has increased approximately $266,000 with
Home Rule Sales Tax up approximately $20,000.
Intergovernmental reimbursement from the storm expenses was approximately $144,000. Real
Estate Transfer Tax is down another $100,000from last year. He also stated the Income Tax
distribution money from the State has decreased $82,500 due to the decrease in population from
the recent census. He also stated that the Telecommunication Tax is down $315,000in addition
to the Investment Income down $64,500. He stated the reduction in Motor Fuel Tax has resulted
in a shortfall of $572,000 per year and created a backlog of approximately $3.5 million worth of
resurfacing which has caused the program to be scaled back over the last several years.
He stated there is approximately $500,000 in variable debt proceeds for flood control projects and
that debt is projected to be paid off by 2019. He stated the Water and Sewer Fund is a self
supporting fund and there are a number of large ticket items that are on the horizon. He also
stated that he intends to undertake a water rate study in the fall to determine if the current rates
are comparable to surrounding communities.
He stated the 2012 forecast has an estimated deficit of $1,097,199. That is an increase over a
previous estimate by$120,000. He statedusing reserves in 2011 to close the deficit would drop
reserve percentage to 22.7% and using the reserves again in 2012 would drop the reserves to
19.6%.He also stated he has analyzed a preliminary tax levy of 4.3% with a general portion
increasing by 4% with refuse remaining and the same debt increasing 2.5% with Police and Fire
pension increasing 6.9%. He stated there still needs to be adiscussion regarding deficit reduction
of General Fund and that he could explore additional Property Tax alternatives.
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He stated there are a number of things on the horizon that could impact the overall Budget
including the labor contracts that are expiring next year and there is need to monitor Capital
Funding and address operating budget savings.He did state that the decrease in population has
not reducedthe service demand levels. He indicatedthere may be a need to reconsider
prioritization of sewer projects based on the recent storms. He also stated that personnel
reductions may not be a variable option as part of a balanced2012 Budget based on the service
level that is currently provided.
He is concerned about the backlog of Streets and the Resurfacing Program because as the
backlog continues to increase the cost for resurfacingmay shift to reconstruction due to the
deterioration of the streets. He also has concerns about reserves droppingbelow 20% and there
are very few options for new revenues available to consider.
Michaele Skowronrepresentative of the Board of Fire and Police Commission spoke. She
wanted to thank the Village Board for making the tough decisions over the years and feels that
the Village is competing for quality candidates throughout the region and the nation and there is a
need to restore theranks withthese quality people before they are hiredby other agencies.
Manager Janonisstated that he would anticipate a water rate increase in 2011. He also stated
there has been no increase in fees since 2004 and there was no Property Tax increase last year.
Heis recommending a joint committee discussion including the Finance Commission in early
September.
V.VILLAGE MANAGER’S REPORT
ManagerJanonisstated that Coffee with Council will be held on August 13 from 9:00 a.m.to
11:00 a.m. at the Village Hall.
ANY OTHER BUSINESS
VI.
None
VII.ADJOURNAMENT
Meeting adjourned at 8:34p.m.
DAVID STRAHL
Assistant Village Manager
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