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Home My WebLink About10-05-2020 Budget Workshop Approved MINUTES OF THE OCTOBER 5, 2020 SPECIAL MEETING/ BUDGET WORKSHOP OF THE BOARD OF TRUSTEES RICHARD T. FLICKINGER CENTER 6101 CAPULINA MORTON GROVE, ILLINOIS 60053 Pursuant to proper notice in accordance with the Open Meetings Act, the special meeting was called to order at 6:00 p.m. by Mayor DiMaria who led the assemblage in the Pledge of Allegiance and called the roll. In attendance were: Elected Officials: Mayor Daniel P. DiMaria. Clerk Eileen Scanlon Harford, Trustees Bill Grear, John Thill, Rita Minx, Connie Travis, Janine Witko and Ed Ramos. Absent: none Village Staff : Village Administrator Ralph Czerwinski. Finance Director Hanna Sullivan, Assistant to the Village Administrator Tom Friel, Corporation Counsel Teresa Hoffman Liston, Public Works Director Joe Dahm, Village Engineer Chris Tomich, Police Chief Mike Simo, Fire Chief Frank Rodgers, Manager of Building and Inspectional Services Jim English, Land Use Planner/Coordinator Zoe Heidorn, and IT Manager Boyle Wong. Guests: Joann Rapp, Matt Flink Mayor DiMaria introduced Village Administrator Ralph Czerwinski who noted that tonight's presentation would include an overview of general fund revenues and expenses. The proposed total 2021 budget is in the amount of $76,120,000.00 which is a 5.26% increase from the 2020 total budget of $72,320,000.00 and includes the following expenses: • $3,200,000.00 for the Sawmill Station Bonds. • $5,100,000.00 for the Capri/Emerson Sewer Separation Project, • $1,700,000.00 to design and install a redundant water supply connection with the Northwest Water Commission, and • $1,800,000.00 for the Austin Ave. to Lincoln Ave. contingent on the Village receiving grant funds for the majority of this work. Without these capital and bond expenses, the 2021 Budget would be $64,320,000, a 1.00% decrease from the prior year. The focus of the 2021 budget is to maintain core services with the following funding priorities: • Maintain bond rating stabilization, • Establish a redundant water supply project. • Continue capital projects to maintain roads and services, • Invest in economic development, to continue to move the Village forward, • Maintain public facilities, • Provide for the systematic replacement of operational equipment, and • Provide community support during these unusual times. The 2021 proposed General Fund Budget is $32,580.000.00 which represents a 1.69% increase from the 2020 General Fund Budget of$32,040,000.00 but includes replacing one of the Village's three fire engines (a 1999 Fire Engine) at a cost of $650,000 and providing $60.000 in increased funds for social services and senior support. Without these two expenses, the 2021 General Fund Budget would be $31,870,000.00, a 0.50% decrease from 2020. The 2021 projected revenue was summarized as follows: Source FY 2020 FY 2021 Difference % Change All Taxes $24,792,268 $24,844,480 $52,212 0.21% Licenses & Permit Fees $2,201,500 $2,201,500 $0.00 0.00% Fines $816,500 $816,500 $0.00 0.0% Charges for Services $848,350 $833,650 ($14,700) (1.73%) Grants $40,000 $40,000 $0.00 0.0% Investment/Rental $110,000 $110,000 $0.00 0.0% Transfers $2,627,285 $3,127,285 $500,000 19.03% Miscellaneous $599,500 $604,500 $5,000 0.83% Total $32,035,403 $32,577,915 $542,512 1.69% Despite a substantial loss of revenue due to the COVID pandemic, the 2021 budget reflects no property tax increase. Village staff will review and propose minor modifications to fees charged for services which will be passed along to the end user and a potential 1% vehicle rental tax which would produce an additional $10,000/year. Staff also will continue to control expenditures. The Village expects to receive additional funds from the state due to the restoration of the Local Government Distribution Funds, but the Village will continue to be charged a sales tax administrative fee of approximately $52,575. Finance Director Hanna Sullivan indicated many of the Village revenues have started to come back from the impact of COVID 19, which is subject to review if the economy relapses. Mr. Czerwinski then advised the Board that the first reading for the Budget & Tax Levy Ordinances was expected to take place on November 9, 2020 with the second reading and public hearing for the budget to take place on November 23, 2020. Mr. Czerwinski provided the following spreadsheet of the departmental budgets to show how the 2021 budget compared to 2020: 2020 2021 $ Difference % Difference GENERAL FUND Legislative $ 121,000 $ 121,000 $ - 0.00% Media/ Communicatio ns $ 39,440 $ 39,440 $ - 0.00% Administration $666,825 $664,425 $ (2,400) -0.36% Legal $ 324,500 $ 349,500 $25,000 7.70% Codification Service Community & Economic Development $215,650 $237,750 $ 22,100 10.25% Additional staffing Finance $2,806,031 $ 2,806,144 $ 113 0.00% Management Information Reduction in equipment and Services $ 722,861 $ 713,782 $ (9,079) -1.26% programming and software fees Reserves Reduction in reserves for $274,856 $ 198,000 $ (76,856) -27.96% salaries Police Pensions, Vehicles &$25K Department Additional training and $ 11,290,284 $ 11,567,656 $277,372 2.46% continued education. 2 Fire Department $ 9,341,824 $ 9,962,380 $620,556 6.64% New Fire Engine Emergency Management $ 5,715 $ 5,715 $ - 0.00% Public Works- Streets $2,804,250 $2,772,100 $ (32,150) -1.15% Reduction in personnel costs Public Works- Engineering $421,975 $425,225 $ 3,250 0.77% Increase in operating costs Public Works- Vehicle Maint. $ 913,800 $ 923,530 $ 9,730 1.06% Public Works - Municipal Bldg. $ 739,189 $613,615 $ (125,574) -16.99% Fewer capital projects budgeted Civic Center $260,030 $ 320,670 $ 60,640 23.32% Additional Social Services Bldg. & inspectional Less additional Staffing Support Services $ 1,086,950 $ 856,800 $ (230,150) -21.17% -Sawmill Station, offset by fees Total General Fund $ 32,035,180 $ 32,577,732 $ 542,552 1.69% Reduction in cost of water ($1,000,000)Increase for water Enterprise- tower painting and equipment Water $ 9,615,347 $ 9,287,854 $ (327,494) -3.41% purchases Capri Emerson sewer Enterprise - separation, offset by grant Sewer $ 1,711,395 $ 7,073,790 $ 5,362,395 313.33% revenues of$4.1 M Enterprise- Administration $ 1,718,310 $ 1,757,529 $ 39,219 2.28% Increase in pension contribution Fire Alarm $ 349,000 $ 393,100 $44,100 12.64% Upgrade radios and EOC Beckwith Bridge project moved Capital to MFT- Rebuild IL, part of Projects $ 2,260,000 $ 1,517,500 $ (742,500) -32.85% Austin Ave moved to 2022 Reduction in required bond Debt Service $ 1,891,913 $ 1,727,755 $ (164,158) -8.68% payments, 2019 refunding Motor Fuel Beckwith Bridge, offset by Tax Fund $ 1,232,850 $ 1,469,000 $236,150 19.15% Rebuild IL allotments Emergency Larger portion of Central 911 Fund $ 345,000 $ 400,000 $ 55,000 15.94% Dispatch expense allocated Solid Waste Funds $2,094,237 $ 2,047,698 $ (46,539) -2.22% Decrease in collection costs Commuter Parking Fund $ 58,400 $44,900 $ (13,500) -23.12% Reduced use of commuter lot Seizure Fund $ 326,000 $ 326,000 $ - 0.00% Municipal Parking Fund $ 83,200 $ 5,900 $ (77,300) -92.91% Decrease in transfer to General Morton Grove Days $ 145,000 $ 145,000 $ - 0.00% Total Other Funds $21,830,652 $ 26,196,026 $4,365,374 20.00% Total General Operations $ 53,865,832 $ 58,773,758 $4,907,926 9.11% TIF & Economic Development 3 Lehigh/Ferris TIF $ 3,707,110 $ 3,314,110 $ (393,000) -10.60% Less Project Funding Sawmill Station TIF $4,540,000 $ 3,300,000 $ (1,240,000) -27.31% Remainder of Project Economic Development Revenue Sharing - increased Fund $ 1,004,759 $ 1,098,842 $ 94,083 9.36% sales tax revenue generated TIF & Economic Development $9,251,869 $ 7,712,952 $ (1,538,917) -16.63% Pensions General Employees' Pension $ 1,326,000 $ 1,326,000 $ - 0.00% Firefighters' Increase reflects actual Pension $ 3,773,000 $ 3,869,400 $ 96,400 2.55% pensions Increase reflects actual Police Pension $4,099,600 $ 4,434,800 $ 335,200 8.18% pensions Total Pensions $ 9,198,600 $ 9,630,200 $431,600 4.69% TOTAL ALL FUNDS $ 72,316,301 $ 76,116,910 $ 3,800,609 5.26% He then reviewed select pages in the budget binder with the Board as follows: • The Legislative budget (Page 5) supports the actions of the Village boards and commissions and was unchanged. • The Media/Communications budget (Page 8) also remained unchanged. • The Administration budget (Page 10) decreased by $2,400. • The Legal budget (Page 13) increased by $25,000 to include costs for an outside service to manage the Village's Code. This cost is largely a one-time set up fee. Staff that used to manage the Code will be reassigned. • The Community & Economic Development budget (Page 16) increase by $22,100 to add needed staff to support plan review and free up time for the Village Planner to focus on economic development issues. • The Finance department budget (Page 19) was increased by $113.00 to replace a retired clerk with an assistant Finance Director. The increased costs will be off-set by eliminating outsourced accounting service so the net effect is virtually flat. • The Management Information Services (Information Technologies) budget (Page 22) was reduced by $9,079. Staff who previously managed the Village's in-house code service will be reutilized to review all Village communication resources including its phone system. • The Reserves budget (Page 25) was reduced by $76,856. • The Police Department budget (Page 27) increase by $277,372 to meet mandatory pension obligations and includes the systematic replacement of squad cars, and additional training. • The Fire Department budget (Page 31) increase by $620,556 for purchase of new fire engine, pickup truck and increased pension obligations. • The Public Works — Streets Department (Page 37) decreased by $32,150 due to reduced personnel costs. • The Public Works — Engineering budget (Page 41) had a minor increase of$3,200 due to a slight increase in outsourcing fees. • The Public Works - Vehicle Maintenance budget (Page 44) increased by $9,730 due to an increase for outside services. • The Family & Senior Services and Civic Center budget (Page 46) increase by $60,640 to provide for additional social service expenses. Staff will review the potential for interactions with surrounding communities to provide enhanced services. Mather has discontinued on-site programing for seniors; the village is considering other options. 4 • The Building & Inspectional Services budget (Page 50) decrease by $230,150 due to decreased staffing for the Sawmill Station Project. Any additional expenses will be off-set by permit fees. • The Public Works - Municipal Building budget (Page 53) decreased by $125,574 due to the reduction in capital improvement expenses. The Village Administrator then asked for questions. In response to questions from Trustee Grear, Ms. Sullivan stated that the final budget would include the Library's budget which she expected to receive in mid-October. Mr. Czerwinski stated the budget calendar was parallel to last year's calendar. She also stated that the process to hire an Assistant Finance Director would begin next month. Trustee Grear also complimented staff for creating more online submission forms for permits which are helpful for residents especially during the COVID pandemic. Mr. Czerwinski stated that the employee who previously managed the code would also use his additional time for creating these forms. In response to Trustee Travis' question, Mr. Czerwinski confirmed that the social worker's salary is under the police budget, but funds allocated to enhanced social services were under the Family and Senior Service's budget. In response to Trustee Thill's questions, Ms. Sullivan noted that COVID related revenue losses are projected at $1,300,000.00 but Department Heads had done a good job deferring projects and cutting costs so that only $775,000 would need to be taken from the reserves. Mr. Czerwinski explained that no additional revenue was projected in 2021 from the Sawmill Station project because the RDA required the Developer to provide for the continuation of sales tax revenue to the Village during construction in 2020 and 2021 revenue was conservatively projected to be flat. Mr. Friel indicated the Village currently had 175 total full-time employees. The Village Administrator next presented the following Enterprise Fund Budget: • The Enterprise — Water budget (Page 56) was reduced by $327,494 due to lower costs for the purchase of water of approximately $1,000,000 with increased expenses to paint the water tower and equipment purchases. and the replacement of pump #4. Mayor DiMaria noted the lower costs for water directly related to the Village's formation of the MGNWC and the purchase of water from Evanston; he was pleased these savings were being invested back into our system. • The Enterprise — Sewer budget (Page 60) increased by $5.362.395 to budget for the Emerson/Capri Capital Project which would separate the combined sewer which has difficulty taking care of rainwater causing flooding in the area. This project is contingent on the Village receiving grant revenues of $4,100,000. If the grant is not approved, the Village will have the design ready and prepare for a phased program. The streets will not be paved until the new sewer has been put in. Trustee Thill recommended advising the public about this project the Village Administrator noted that the Village Engineer was preparing a one-page fact sheet to keep neighbors advised without over-promising. • The Enterprise —Administration budget (Page 60) had a $39,219 increase due to increased pension contribution. The Mayor then asked for questions. Trustee Grear wanted residents to know that Village staff is constantly looking at additional revenue sources. Mayor DiMaria added that the budget reflected good fiscal planning and responsibility. We are fortunate our numbers are improving, and the Village was in remarkable shape considering the difficulties of the past year kudos to staff. The Mayor asked for audience comments. In response to JoAnn Rapp's questions, the Mayor stated her questions are typically limited to three minutes, but that time can be extended, the workshop was not videotaped, and the budget is available online. Trustee Minx then moved to adjourn the meeting. The motion was seconded by Trustee Thill and passed unanimously by a voice vote at 7:04 pm. PASSED this 12th day of October 2020. 5 Trustee Grear Trustee Minx Trustee Ramos (1 Trustee Thill Trustee Travis Trustee Witko APPROVED by me this 12th day of October 2020 Daniel P. DiMaria, Village President Board of Trustees, Morton Grove, Illinois APPROVED and FILED in my office this 12th day of October 2020 Eileen Scanlon Harford, Village Clerk Village of Morton Grove, Cook County, Illinois Minutes By Teresa Hoffman Liston Corporation Counsel 6