HomeMy WebLinkAbout10/28/2003 COW minutes EVISED
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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.
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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