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HomeMy WebLinkAbout6. MEETING NOTICES 10/15/02VILLAGE OF MOUNT PROSPECT FINANCE COMMISSION AGENDA Thursday, October 17, 2002 7:00 p.m. Village Hall Building 100 South Emerson Street 2nd Floor Conference Room I Call to Order II Approval of Minutes - June 27, 2002 September 26, 2002 III Review of the Proposed 2003 Village Budget (Overview, Village Administration, Finance and Human Services) IV Chairman's Report V Finance Director's Report VI Other Business VII Next Meeting: Thursday, October 24, 2002, 7:00 p.m. VIII Adjournment NOTE: Any individual who would like to attend this meeting but because of a disability needs some accommodation to participate should contact the Finance Director's Office at 100 South Emerson Street, Mount Prospect, (847) 392-6000, ext. 5277, TDD (847) 392-6064. DRAFT FINANCE COMMISSION Mr~aJTES OF THE 1M_EETING SEPTEMBER 26, 2002 VILLAGE HALL BUILDING DRAFT I. CALL TO ORDER The meeting was called to order at 7:05 p.m. Those present included Chairman John Korn and Commissioners Charles Bennett, Ann Hull and Tom Pekras. Also present were Village Manager Michael Janonis, Assistant Village Manager Dave Strahl, Director of Finance Doug Ellsworth, Deputy Director of Finance Carol Widmer and Finance Administrative Assistant Lisa Burkemper. Commissioner George Busse arrived at 7:55 and Commissioners Vince Grochocinski and Ann Smilanic were absent. Pat Krochmal of the Mount Prospect Times was also present. II. APPROVAL OF MINUTES Commissioner Tom Pekras motioned to approve the minutes of August 29, 2002. Commissioner Charles Bennett seconded the motion and the minutes were accepted as presented. The minutes of June 27, 2002 were deferred until the October 17, 2002 meeting. III. CHAIRMAN'S REPORT Chairman John Korn highlighted the topics discussed at the board meetings that have taken place recently. Chairman John Korn stated the Village Board has discussed the budget over the last few weeks and has given staff direction on how they might proceed with the budget. The board has recommended that staff proceed with the $600,000 already cut from the budget and draw down $600,000 from fund balance. Commissioner Ann Hull asked if the $600,000 in cuts that the Village Board discussed, included any items on the Finance Commissions list of possible deficit reduction actions. Director of Finance Douglas Ellsworth stated that none of the items the commission had identified are included and that the figure represents budget cuts made by staff. IV. REVIEW OF POSSIBLE DEFICIT REDUCTION ACTIONS Chairman John Korn stated he would like to discuss the 21 possible deficit reduction actions one by one and get a consensus from the members of their views of each action. Mr. Korn further stated that the discussion should be very preliminary with no formal voting. He said he would like to get indications of what each members thoughts are on the various actions. Commissioner Ann Hull stated she wanted to make a brief statement reflect'rog her thoughts on the possible solutions to the deficit. Ms. Hull stated that she felt money in reserves should be used for emergency type situations only and not for daily operating expenses. Commissioner Charles Bennett asked how much money is currently in the 25 % reserve? Finance Director Doug Ellsworth stated that there is approximately $8,800,000 in the reserve fund. Mr. Bennett then stated that while the draw down may be necessary this budget process he does not want to see it continue in future budgets. Commissioner George Busse stated he would like to see each department reduce their budget across the board, furthermore each department must then choose which line items need to be modified or eliminated. Mr. Busse also stated that the Finance Commission can give staff guidance on how much to cut and staff can then choose how they will accomplish that. The following is a list of the 21 items discussed along with the general consensus on each topic: Possible Budget Reductions 1. Direct charge for refuse service. Most members did not agree with this action. 2. Eliminate leaf program. All members agree to keep program as is. 3. Eliminate non-municipal funding. Some members agreed to reduce the funding while others suggesting eliminating all non-municipal funding. 4. Make Building Division a profit Most members agreed that there is room to make changes and center, this topic should be looked at further. 5. Reduce Human Services budget 25%. Most members agree that 25% is not necessary but some programs could be eliminated or reduced in some way. 6. Extend all infrastructure maintenance No discussion on the matter since there where no numbers to cycles, look at presently. 7. Extend vehicle replacement schedule. All members agree that it would be easy to do and should be accomplished on a case-by-case basis. Although, members agreed they would probably have to exclude police squad cars. 8. Eliminate non-essential community/ Most members agree that a 25% reduction in all services civic services, would be appropriate. 9. Eliminate/Modify shared cost Most members agree to a partial reduction of services. programs. I0. Index salary increases to inflation. Half the members agree a ¥~ reduction would be appropriate, while the other half do not agree with a reduction. 11. Extend computer replacement Members were divided on this action. Half agree to an schedule, extension the other half were not if favor of an extension. 12. Modify/reduce forestry program. Two members were not in favor of modifying or reducing the program. Four members agreed to either cut the program by 10% or cut temporarily. 13. Eliminate corridor improvement Most members agree that the program should be reduced or program, delayed for a period of time but not eliminated. 14. Impose hiring freeze. There was a consensus by the members to implement a partial hiring freeze. Some non-essential positions could be eliminated or hiring could be deferred if a position becomes vacant. Essential positions in police, fire or management would need to be filled. 15. Reduce overtime expenditures. The members agreed that this should be the responsibility of the various departments and that they should be monitoring overtime levels and reducing levels whenever possible. 16. Eliminate accrued sick time and Most of the members agreed that this program should be vacation buy-back program, eliminated over a period of time. There would need to be time to negotiate with union etc. 17. Eliminate cable television services. Most of the members agree the services should not be cut, as long as the program serves its purpose and is able to cover its costs. 2 Possible Revenue Increases 18. Increase telecommunications and Most of the members agree that an increase in the tax would be utility taxes, beneficial over a period of time. For example, adding a ¥2 %or less annually for a period of two years. 19. Eliminate vehicle sticker; replace All members were in favor of eliminating the sticker as long as revenue with other source, the elimination is coupled with a revenue source that generates an equivalent amount of money. 20. Impose ambulance fee for residents2 Most of the members were not in favor of a charge to residents. 21. Increase home rule sales tax. Three of the members agree that this should be addressed mid year through the budget process. The other members feel that it would be a last resort and is not favorable. Commissioner George Busse stated that he felt that in order to balance the budget the village should first focus on possible reductions in expenses and then look at revenue increases as a last alternative. There was a brief discussion on the process of reducing the deficit. The Finance Commission members all agreed that as they review the budget for 2003 they could revisit in more detail the 21 items discussed tonight. This process will help the Finance Commission members prepare for the 2004 budget as well as subsequent budgets. FINANCE DIRECTOR'S REPORT There was nothing to report VI. OTHER BUSINESS Chairman John Korn suggested that the commission member's look at the Police Annual Report if they haven't done so already. Chairman John Korn also advised the commission members that Commissioner Vince Grochocinski sent a written response to Mr. O'Meara, the residenI who sent a letter to the commissioners regarding proposed real estate property tax relief. VII. Next Meeting: October 17, 2002 Commissioner Tom Pekras motioned to adjourn which Commissioner Ann Hull seconded. The meeting was adjourned at 9:43 p.m. The next meeting will be October 17, 2002. Respectfully submitted, Lisa Burkemper Administrative Assistant 3