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HomeMy WebLinkAbout3. COW Minutes 08/14/2012COMMITTEE OF THE WHOLE MINUTES August 14, 2012 I. CALL TO ORDER — ROLL CALL The meeting was called to order at 7:13 p.m. in the Village Board Room of the Village Hall, 50 South Emerson Street, by Mayor Irvana Wilks. Trustees present included Paul Hoefert, John Korn, Arlene Juracek, John Matuszak, Steven Polit and Michael Zadel. Staff present included Village Manager Michael Janonis, Assistant Village Manager David Strahl, Fire Chief John Malcolm, Police Chief Michael Semkiu, Deputy Police Chief John Wagner, IT Director Joan Middleton, Public Works Director Sean Dorsey, Deputy Public Works Deputy Director Jason Leib, Finance Director David Erb, Community Development Director William Cooney, Human Services Director Nancy Morgan and Human Services Deputy Director Jan Abernethy. II. APPROVAL OF COMMITTEE OF THE WHOLE MINUTES FOR MAY 22, 2012 Motion made by Trustee Hoefert seconded by Trustee Korn. Minutes were approved. Trustee's Juracek and Zadel abstained APPROVAL OF COMMITTEE OF THE WHOLE MINUTES FOR JULY 10, 2012 Motion made by Trustee Hoefert second by Trustee Polit to defer the minutes to September 11, 2012, deferral was approved. III. CITIZENS TO BE HEARD "00A IV. 2012 MID -YEAR REVIEW AND UPDATE OF THE 2013 BUDGET FORECAST Finance Director David Erb provided a general overview of the General Fund to date for 2012. He stated telecommunication, income tax, licenses and permit revenue has increased slightly. However, he stated the food and beverage, fines and forfeits, and utility taxes have decreased. He said the projected fund balance for the General Fund at the end of 2012 is 25.2% with that percentage projected to fall to 22.6% by the end of 2013, assuming the budgeted deficit is absorbed into the fund balance. He stated the Village did lose a significant sales tax remitter in July of 2012 along with reductions in food and beverage, fines and forfeits, and other utility taxes combined to reduce revenues by $388,000. He has projected an increase in the telecommunication tax to $705,000 primarily due to a one -time catch -up payment from prior years with the annual revenue level expected to return to normal levels. He is projecting permit fees to increase by $131,000 based on the recent building permit activity. He also is projecting a slight increase in income taxes of $70,000 which is the first increase in several years. Committee of the Whole Page 1 of 3 8/14/12 He stated based on the first budget amendment, the 2012 Budget is currently projected to have a slight surplus of $122,000. He stated the General Fund balance needs to have an additional $700,000 to remain at 25% for the coming year. 2013 Budget Preview: The 2013 Budget projections had a preliminary deficit of $900,000 which has been revised to a current projected deficit of $766,000 based on where we stand today with the 2012 budget. The preliminary 2012 Property Tax Levy is recommended at a 3.95% increase of that the general portion projected to increase 3.25 %, the refuse portion projected to increase by 3 %, the debt service portion projected to decrease by .2 %, and the police and fire pension contributions both projected to increase by 7 %. The refuse portion has not increased for several years and is in need of additional funding to maintain current funding obligations. He stated there are a couple of items that need to be considered as we enter the 2013 budget season. One is the projected deficit in the budget and potential impact on the General Fund, the Capital funding alternatives suggested by the Finance Commission and the expiring contracts for the public safety bargaining groups. The Finance Commission recommendations for Capital funding were included in a memorandum from the Commission to the Village Board this evening. The funding for Capital projects comes from the Home Rule Sales Tax allocation of 1 % of sales taxes distributed among several projects. That 1 % is divided among flood control, streets, general fund, and the capital improvement fund at .25% for each portion. Of the money for street improvement, the one quarter cent sales tax plus the local motor fuel tax and the state motor fuel tax provides the funding for street improvements. Even with this funding the Village has fallen behind in maintaining streets on the previously agreed to schedule primarily due to reductions in revenue sources and increases in expenses for materials. The one quarter cent sales tax that provides funding for flood control projects amounts to approximately $1.2 million per year, just over half allocated for debt service for IEPA loans and the remaining amount for projects. Based on potential additional flood control projects that have been in discussion, there is not enough revenue to cover the increased number of projects based on the current revenue stream. The final one quarter cent of the sales tax covers capital funding for midrange projects which are discussed annually as part of the capital improvement fund discussion and those items are prioritized based on need and funding availability. V. CAPITAL FUNDING - FINANCE COMMISSION RECOMMENDATION Vince Grochocinski, Chairman of the Finance Commission, provided an overview of the Finance Commission recommendations for capital projects. The commission recommended an increase in the sewer construction fund from $5.00 per month to $7.00 per month which would generate approximatly Committee of the Whole Page 2 of 3 H: \VILM \Cow\2012 \Minutes \Cow Minutes 8- 14- 12.docx $320,000 for private improvements for flood control purposes. They also recommended the creation of a special service area to support separate combined and storm sewer improvements that would be considered public improvements amounting to approximately $1.2 million. The Commission also recommends an increase in the local motor fuel tax from two cents per gallon to five cents per gallon which would generate approximately $510,000, increase the vehicle sticker fee from $36 to $50 which would generate an additional $539,000, and reallocate a portion of the home rule sales tax from flood to street improvements in the amount of approximately $250,000 for the first year. The Commission presented no formal recommendation for EAB eradication nor the installation of AMR devices. General comments from the Village Board members included the following items: • There was a general discussion regarding the variance in the food and beverage tax receipts based on the increase of business at Randhurst Village. As explained that while Randhurst Village is increasing its food and beverage tax the rest of the Village has been reduced due to economic conditions. • There was also a general discussion about the State funding delays and its impact on the Village Budget. VI. MANAGER'S REPORT None VII. ANY OTHER BUSINESS Trustee Korn voiced some concerns regarding notification to a resident regarding a zoning change and the process for notification. VIII. ADJOURNMENT Meeting adjourned at 9:35 PM DAVID STRAHL Assistant Village Manager Committee of the Whole Page 3 of 3 H: \VILM \Cow\2012 \Minutes \Cow Minutes 8- 14- 12.docx