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Home My WebLink About1b. Joint Financial Planning Workshop Agenda 07/09/2013pi 4 -NOTE TIME AND LOCATION- ORDER OF BUSINESS JOINT FINANCIAL PLANNING WORKSHOP Meeting Location: Mount Prospect Village Hall Community Center 50 S. Emerson Street Mount Prospect, Illinois 60056 Meeting Date and Time: Tuesday, July 9, 2013 6:30 P.M. CALL TO ORDER II. ROLL CALL VILLAGE BOARD Mayor Arlene Juracek Trustee Paul Hoefert Trustee Steven Polit Trustee John Korn Trustee Richard Rogers Trustee John Matuszak Trustee Michael Zadel ROLL CALL FINANCE COMMISSION Chair - Vincent Grochocinski John Kellerhals Pam Bazan Thomas Pekras James Gregory Don Ocwieja Ill. 2014 -2018 CAPITAL IMPROVEMENTS PLAN In 1997, the Village Board formally adopted its first comprehensive 5 -year Capital Improvements Plan (CIP). The establishment of a formal 5 -year CIP provides a comprehensive view of the Village's capital needs for consecutive rolling five - year windows. The CIP also addresses the Government Finance Officers Association best practice recommendation for preparing and adopting a multi- year capital planning strategy. The proposed 2014 -2018 CIP is generally comprised of projects that involve the purchase or construction of long - lived, tangible assets at a cost of $25,000 or more. The total cost of all requests for all years included in the plan is $56.9 million. Many of the requests in the plan are simply continuations of established projects. Others are projects not currently in progress but have been discussed by the Village Board and Finance Commission on previous occasions. Some requests are being presented for the first time through the CIP. Given that the CIP is intended to afford a comprehensive view of the Village's capital needs, it is fitting that all of these project requests be included in the proposed plan. Of the $56.9 million of project requests included in the proposed CIP, $40.5 million, or 71.2 %, is for the continuation of established projects including approximately $19.6 million for street resurfacing. 1 2014 project requests included in the proposed CIP amount to $9.7 million. This amount reflects a decrease of $1.7 million from first -year projects in the 2013- 2017 CIP. First -year projects include the ongoing street program, improvements to the water and sewer system infrastructure, flood control projects, and tree replacement program. A project's inclusion in the CIP does not guarantee its funding and accomplishment. The CIP is a planning document. As such, it is subject to change. The CIP is reviewed and updated on an annual basis. The next CIP will cover the years 2015 -2019. The proposed 2014 -2018 CIP was distributed on July 3, 2013 to the Finance Commission and the Village Board. Once the Village Board and Finance Commission complete its review of the proposed CIP, it will go before the Village Board for formal acceptance on July 16, 2013. Staff will make a presentation on the projects included in the five -year plan and will be on hand to answer questions and facilitate discussion. IV. CLASS 613 EXTENTION REQUESTS DISCUSSION The Village has granted several Cook County Class 6b tax incentives over the past two decades to attract and retain businesses. The 6b incentive reduces the assessment level for qualified manufacturing and warehouse /distribution facilities from 25% to 10% for the first 10 years, 15% for year 11 and 20% in year 12. After year 12, the assessment level returns to the full 25% for the benefitting property. The 6b incentive can also be renewed for additional 12 year terms if supported by the Village. The Village has supported the renewal of six of these incentives in recent years. The owner of the 451 Kingston Court building recently approached the Village requesting a second extension of their 6b incentive to benefit their current tenant, White Way Signs. This is the first request for a second extension and the Village's decision on whether to grant the request will likely set a precedent for any future requests by other 6b beneficiaries. Cook County permits multiple extensions of the 6b incentive so long as the Village approves an inducement resolution supporting such requests Appropriate staff will be on hand to answer questions and facilitate discussion. V. DISCUSSION ON CAPITAL FLOODING AND STREET CONTROL Revenue shortfalls in the street program have resulted in a reduced number of miles being resurfaced on an annual basis. There is currently a backlog of approximately 10 miles of resurfacing deferred due to lack of funding. In addition, infrastructure improvements to the storm sewer system are needed in various areas of the village to address flood control issues. Recommendations 2 for improvements to the storm sewer system were generated from the comprehensive stormwater study completed in late 2011. Additional revenue sources are needed to support these two important capital programs. The funding issue was first discussed at the annual financial planning workshop held April 2012 and revisited at the workshop held in 2013. The Finance Commission was asked to prepare a recommendation to address the funding needs. Alternatives for new revenue will be presented along with the Finance Commission recommendation to bolster funding the street resurfacing program and address the public and private improvements to the storm sewer system. Staff will make a presentation on capital funding needs and will be on hand to answer questions and facilitate discussion. VI. MANAGER'S REPORT Status VII. ANY OTHER BUSINESS VII. ADJOURNMENT NOTE: ANY INDIVIDUAL WHO WOULD LIKE TO ATTEND THIS MEETING BUT BECAUSE OF A DISABILITY NEEDS SOME ACCOMMODATION TO PARTICIPATE, SHOULD CONTACT THE VILLAGE MANAGER'S OFFICE AT 50 SOUTH EMERSON, MOUNT PROSPECT, ILLINOIS 60056, 8471392 -6000, EXTENSION 5327, TDD #8471392 -6064 HAVILM\Cow\2013WGENDAWgenda - Financial Workshop 7- 9- 2013.docx