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Home My WebLink About10-11-2022 - Budget WorkshopMINUTES OF THE OCTOBER 11, 2022 SPECIAL MEETING/ 2023 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 Daniel P. DiMaria who led the assemblage in the pledge of allegiance. Corporation Counsel Liston called the roll. In attendance were: Elected Trustees Janine Witko, John Thill, Rita Minx, Connie Travis, and Saba Khan, Officials: Absent: Clerk Eileen Scanlon Harford Village Staff : Village Administrator Ralph Czerwinski (via phone), Finance Director Hanna Sullivan, Assistant Village Administrator Tom Friel, Corporation Counsel Teresa Hoffman Liston, Public Works Director Joe Dahm, Water and Sewer Superintendent Kevin Lochner, Streets Superintendent Johnny Mitchell, Deputy Police Chief Brian Fennelly, Fire Chief Ralph Ensign, Manager of Building and Inspectional Services Jim English, Community Development Administrator, Zoe Heidorn, and IT Manager Boyle Wong, Guests: None Mayor DiMaria thanked staff for their efforts in putting tonight's budget presentation together, and turned the meeting over to Assistant Village Administrator, Tom Friel. Mr. Friel noted that tonight's presentation would include an overview of the Village 2023 Budget proposed by the Village Administrator including projected revenues and expenditures estimated and requested by staff in the General Fund, Enterprise Funds, TIF Funds, Fiduciary Funds and other Funds. The elected officials have been provided budget books which contain detailed information and narratives about the budget. The first three pages of the budget book contain the Village Administrator's transmittal letter which is a synopsis of the budget. Elected officials have also been given a spreadsheet showing how various budgets within each fund have changed from the 2022 Village Budget and why. The total amount of the proposed Budget is $78,014,684.00 which represent a $4,087,368.00 increase (5.53%) from the 2022 Budget of $73,927,316.00. Significant changes from the 2022 Budget include a decrease of $3,200,000 relating to bonds that were scheduled to be issued for the Sawmill Station TIF. However, since the Developer did not achieve certain benchmarks, it is no longer necessary for the Village to issue these bonds. Also removed from the 2023 budget was $1,700,000.00 for a redundant water supply connection, which has been deferred pending new funding sources. The 2023 budget includes the issuance of $6,500,000.00 for potential Lincoln Lehigh TIF revenue bonds for projects in that TIF including planned improvements to the Metra station. The 2023 budget also includes funding for the purchase of a new fire engine in the amount of $900,000 (which will be paid for in part with ARPA funds), watermain installations and public building improvements. Quoting from the Village Administrator's transmittal letter, the 2023 Budget can be described as a "Managed Budget." Budget priorities include stabilizing and improving the Village's bond rating by continuing to properly fund pension obligations, decrease debt, and increase reserves. In order to meet these obligations, the Village Administrator has proposed a 2% increase to the Village levy ($227,300.00) which is projected to add approximately $37.00 to the property tax bill for an average single-family home in Morton Grove. Mr. Friel then reviewed the operating budgets within the General Fund in the amount of $35,106,825, a $1,785,583 or 5.36% increase over the 2022 General Fund Budget. Mr. Friel reviewed the following chart with the Board on a line -by-line basis: Page % 2022 2023 $ Difference Difference Background GENERAL FUND Legislative 3 $121,750 $122,750 $1,000 0.82% Program Costs - Community Relations Media/Communic 6 $41,940 $39,310 ($2,630) -6.27% Projector purchased 2022 ations Administration 8 $672,044 $679,074 $7,030 1.05% Personnel Costs 1 Legal Community & Economic Development Finance Information Technology Reserves Police Department Fire Department Emergency Management Public Works - Streets Public Works - Engineering Public Works - Vehicle Maintenance Public Works - Municipal Bldg. Family & Senior Services / Civic Center Bldg. & inspectional Services Total General Fund Enterprise - Water Enterprise - Sewer Enterprise - Administration Fire Alarm Capital Projects Debt Service Motor Fuel Tax Fund Emergency 911 Fund 11 $371,977 $380,677 $8,700 2.34% Village Prosecutors & Court Reporters 14 $268,110 $294,668 $26,558 9.91% Personnel Costs 17 $3,143,570 $2,833,878 ($309,692) -9.85% Reduced transfer to debt service 19 $717,987 $759,393 $41,406 5.77% Security cameras and increase in GIS costs 22 $109,625 $495,613 Increase in reserve for salaries. Once the Board approves salary increases for 2023, $385,988 352.10% part of these funds will be moved from reserves to the appropriate department budgets. Funds for Vehicles re -budgeted due to lack of availability in 2022 New Fire Engine purchased with ARPA funds 24 $12,053,871 $11,982,357 ($71,514) 28 $9,552,087 $10,288,379 $736,292 28 $5,715 ($5,715) 32 $3,138,203 $3,497,683 $359,480 35 $432,899 $505,315 $72,416 38 $948,010 $1,008,897 $60,887 40 $584,258 $1,048,135 $463,877 43 $290,744 $290,744 -0.59% 7.71% 100.00% 11.45% 16.73% 6.42% Combined with fire department budget Street patching, equipment replacement funding Hiring additional engineer (part charged to water admin) Increase in cost of fuel, repair parts and services 79.40'°04 Fire Station improvements, replace vehicle lift, new roof on pumping station 0.00% 46 $868,452 $879,952 $11,500 1.32% Microfilming services $33,321,242 $35,106,825 $1,785,583 5.36% 48 $9,617,345 $8,122,216 ($1,495,129) -15.55% Redundant connection postponed for funding options 52 $1,905,376 $1,624,538 ($280,838) 14.74% Less sewer lining work to be performed, Austin Ave. sewer replacement Hiring additional engineer (part charged 54 $1,757,629 $1,634,829 ($122,800) -6.99% to engineering), reduced transfer to General 74 $348,600 56 $1,520,000 58 $1,579,799 68 $2,959,000 $305,100 $1,360,000 $663,963 $2,919,000 70 $420,000 $420,000 ($43,500) ($160,000) ($915,837) ($40,000) -12.48% -10.53% -57.97% -1.35% 0.00% Panel upgraded in 2022 Oakton Street - no longer lead agency 2015 Bonds paid off in 2022 Reduced scope of work for street resurfacing 2 Solid Waste Funds 72 $2,066,332 $2,100,775 74 $35,300 $30,200 Seizure Fund 74 $326,000 $312,000 74 $5,900 74 $145,000 $160,000 Commuter Parking Fund Municipal Parking Fund Morton Grove Days $34,443 1.67% Increase in collection costs ($5,100) -14.45% ($14,000) -4.29% Decrease in budgeted qualified expenses - ($5,900) $15,000 10.34% Increase in operational cost Operating expenses reduced due to less use of the lot 100.00% Fund Closed - Merged with commuter parking Total Other Funds $22,686,281 $19,652,621 ($3,033,661) -13.37% Total General Operations $56,007,523 $54,759,446 ($1,248,078) -2.23% TIF & Economic Development Lehigh/Ferris TIF 60 $3,222,110 $3,222,110 0.00% Sawmill Station TIF 62 $3,300,000 $1,814,632 ($1,485,368) -45.01% Lincoln/Lehigh TIF 64 $6,470,000 $6,470,000 Economic 68 Development Fund TIF & Economic Development Pensions No second bond issue New TIF Fund - Train station & developer support Revenue Sharing - increased sales tax $1,133,383 $1,148,396 $15,013 1.32% revenue generated $7,655,493 $12,655,138 $4,999,645 65.31% General Employees' 82 $1,326,000 $1,326,000 $ 0.00% Pension Firefighters' Pension Police Pension 82 $4,257,200 $4,443,000 $185,800 4.36% Increase reflects actual pensions 82 $4,681,100 $4,831,100 $150,000 3.20% Increase reflects actual pensions Total Pensions $10,264,300 $10,600,100 $335,800 3.27% A general discussion then ensued. Mr. Friel then noted the Budget Ordinance was expected to be presented at the November 14, 2022, Village Board meeting for a first reading and the November 28, 2022, meeting for final approval and adoption. Mayor DiMaria thanked the assemblage and reiterated his confidence in Village staff Trustee Minx then moved to adjourn to executive session for deliberations concerning salary schedules for one or more classes of employees. The motion was seconded by Trustee Witko and approved unanimously pursuant to a roll call vote. At the conclusion of the executive session, Trustee Minx moved to adjourn the special meeting. The motion was seconded by Trustee Witko and approved unanimously pursuant to a voice vote at 7:05 PM. Minutes by Teresa Hoffman Liston Corporation Counsel 3