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HomeMy WebLinkAbout10/28/2003 COW minutes EVISED I1. III. IV. MINUTES COMMITTEE OF THE WHOLE OCTOBER 28, 2003 CALL TO ORDER The meeting was called to order at 7:04 p.m., in the Boardroom of the Mt. Prospect Park District Community Center, 1000 West Central Road, by Mayor Gerald Farley. Present at the meeting were: Trustees Timothy Corcoran, Paul Hoefert, Richard Lohrstorfer, Michaele Skowron, Irvana Wilks and Michael Zadel. Staff members present included Village Manager Michael Janonis, Assistant Village Manager David Strahl, Finance Director Dave Erb, Deputy Finance Director Carol Widmer, Human Services Director Nancy Morgan and Deputy Human Services Director Jan Abernethy. APPROVAL OF MINUTES Approval of Board Workshop Minutes of September 9, 2003. Motion made by Trustee Zadel and Seconded by Trustee Skowron to approve the Minutes. Trustee Corcoran abstained. Minutes were approved. Approval of Minutes of October 14, 2003. Motion made by Trustee Skowron and Seconded by Trustee Zadel to approve the Minutes. Minutes were approved. Trustees Lohrstorfer and Wilks abstained. CITIZENS TO BE HEARD No citizens were present wishing to address the Village Board. Mayor Farley wanted to acknowledge the Community Band from Sevres, France that are currently visiting Mount Prospect. 2004 BUDGET DISCUSSIONS Opening Remarks Mayor Farley provided a general overview of the Budget process and the involvement and advising component from the Finance Commission. He stated this is a difficult Budget due to the recommended cuts and the revenue enhancements that were approved in May of 2003 have just left the Village treading water. Bud.qet Overview Village Manager Janonis stated the economic circumstances have put the Village in this position. He stated the Board spent the balance of the early part of the year addressing the 2004 needs but based on recent revenue issues, the Village sees itself in the same position in 2005. He provided a summary of the 2003 revenue initiatives. He stated the staff is recommending additional drawdown from reserves due to the drop in the Home Rule Sales Tax receipts. This is required for the balancing of the 2003 Budget. He stated Costco should be underway and the tax benefits should occur in 2005. He stated the downtown redevelopment is nearly completed. Other budget highlights include: · The total 2004 Budget is $74,964,286. This is a 13.7% reduction from 2003. · The Operating Budget is $45,401,000; a .22% increase from 2003. · General Fund expenditures are reduced by $744,000. · $1.6 million in Capital Improvement Projects deferred. · No new staffing, programs or initiatives are forecast for 2004. · No General Fund transfer to Capital Improvement Fund. · $92,000 General Fund deficit. · $795,078 drawdown of General Fund surplus. Increases in the Budget are driven by wages, health insurance and pension expenses. Staff was told to reduce the Budget by $500,000 and staff is recommending cuts in the area of $744,000. He stated the General Fund transfer to the CIP as previously anticipated will not occur in 2004 due to revenue issues. He also is recommending that the Board allow staff to hold three full-time vacant positions open and not fill those for the foreseeable future until revenues are improved. He highlighted several of the changes for the 2004 Budget which include the re-allocation of the Leaf Program and the computer maintenance expenses from the General Fund. Other staff initiated budget cuts include: · Winter Festival Parade $ 26,500 · Historical Society Grant 3,000 · Holiday Lights/Decorations 8,620 · Long-Range Planner 88,464 · Fire Information Officer 66,944 · Public Works Maintenance worker 71,692 · Newsletter frequency 14,250 · Village Hall night/weekend hours 5,000 · Tree Replacement Programs 41,235 · Other miscellaneous cuts 164,855 · Leaf Program 171,480 · Computer Maintenance 82,000 He provided a Fund Balance usage history over the last several years. He stated the Village was able to utilize General Fund balance in the previous years and not have to rely on Property Tax increases to make up the difference. However, it is getting to the point that the previous commitments from the General Fund for Debt Service and the other revenues to cover debt service are in such shape that there may be a need to revisit the revenue mix again next year. He stated that due to pending transfers from Reserves, the General Fund reserve could drop to below 20% for 2005. Bud.qet Revenues/Expenditures Finance Director Dave Erb provided an overview of the Budget process and concept to allocate resources through the Budget process. He also highlighted the fact that the Village uses Budget cost centers to assign cost of services. He stated that 61% of the Budget is personnel related and 80% of the General Fund is personnel related expenses for wages and benefits. He stated the Village is currently carrying a debt level of 2.5% of EAV without the Library debt, the total debt level is significantly below the limit allowed by law. He highlighted the projected in growth of expenses for Police and Fire pensions. He also stated that based on the projected Property Tax increase for 2004, a typical $250,000 valued home would increase $21. He provided a summary of the revenue changes implemented for 2003. Human Services Department Human Services Director Nancy Morgan provided a summary of the services provided. She highlighted the fact there is a great deal of Interdepartmental cooperation that allows her Department to provide the services necessary to the community. She stated the only increases to her Budget are related to personnel related expenses and relocation expenses. Villa.qe ManaRer's Office Village Manager Michael Janonis provided a summary of the Public Representation budget along with the general Manager's Office, Personnel, IT, Public Information and Village Clerk budget. He stated the increases in the Manager's Office Budget is directly related to wages and benefits. Finance Department Finance Director Dave Department operations. increases. Erb provided a summary of the costs related to Finance Increases are directly related to wages, benefits and pension Finance Commission Comments John Korn, Finance Commission Chairman, stated that the Budget for 2003 and the proposed Budget for 2004 are maintenance Budgets and it is becoming evident that some cuts will soon be affecting services due to poor revenue performance. He stated the expenses of employees are increasing and taking a larger portion of the Budget. He stated this challenge has been accepted by the staff and Village Board and compliments the staff on its recommendations. Trustee Irvana Wilks stated that the State Legislative impacts have affected revenues due to unfunded mandates. I. DS/fcc ANY OTHER BUSINESS Trustee Wilks pointed out that there is a music CD available of the Sevres Community Band performance if anyone is interested in purchasing. ADJOURNMENT There being no further business, the Committee of the Whole meeting adjourned at 8:35 p.m. Respectfully submitted, _ DAVID STRAHL Assistant Village Manager