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HomeMy WebLinkAbout2007-11-01 Budget Workshop MinutesMINUTES OF THE NOVEMBER 1, 2007, SPECIAL MEETING - 2008 BUDGET WORKSHOP OF THE BOARD OF TRUSTEES OF THE VILLAGE OF MORTON GROVE RICHARD T. FLICKINGER MUNICIPAL CENTER -COUNCIL CHAMBERS MORTON GROVE, ILLINOIS 60053 Pursuant to proper notice in accordance with the Illinois Open Meetings Act, the Special Meeting was called to order at 7:01 pm by Mayor Richard Krier who led the assemblage in the pledge of allegiance. Corporation Counsel Teresa Hoffman Liston called the roll In attendance were: Elected Officials: Mayor Richard Krier, Trustee Georgianne Brunner, Trustee Shel Marcus, Trustee Rita Minx, Trustee Dan Staackmann, Trustee John Thill Absent: Trustee Roy Kogstad, Clerk Carol A. Fritzshall Village Staff: Village Administrator Joseph F. Wade, Corporation Counsel Teresa Hoffman Liston, Finance Director Daniela Partipilo, Fire Chief Tom Friel, Family and Senior Services Director Jackie Walker O'Keefe, Police Chief Paul Tasch Also Present: Several members of the public and the press President Krier announced the purpose of this fourth Budget Workshop was to address issues previously raised by the Board and answer any additional questions the Board may have concerning the budget. Mr. Wade then summarized his position on the use of fund balances. Mr. Wade stated he did not advise the use of fund balances for reoccurring expenses. Ms. Partipilo reported on a recent study from the Illinois Municipal League on refuse collection fees. She stated according to the report, approximately 54% of municipalities in the state have their residents pay a flat monthly fee for garbage pick-up. The Chicago average for collection costs is $16.11 per month compared with Morton Grove's charge of $9.61 per month. Yard waste stickers in Morton Grove cost $1.65 compared to an average cost of $2.02 per sticker. She further noted in 2002, the Village's solid waste costs were $1,303,800 compared to today's cost of $1,637,009. Today the Village assumes approximately 50% of that cost and the residents pay the balance directly to Groot. If the Village were to assume an additional $265,000 of this cost, the Village's cost for solid waste related expenses would increase to $944,000 (59% of total cost and the resident's share would decrease to approximately 41%). Ms. Partipilo then gave a summary on fund balance. The GFOA recommends governments maintain a fund balance of 5% to 15% of its General Fund revenue or one to two months of expenditure costs; however, the GFOA notes the fund balance is a matter of choice and most village managers recommend a fund balance of 25%. She cautioned the Board to consider additional factors such as the imposition of a storage tax, tax levy adjustments, additional budget reductions, the implementation of GASB 45, future infrastructure costs, and capital equipment replacements. Mayor Krier advised the Board during the first three months of 2008 he had asked staff to propose resolutions dealing with revenue enhancements. Trustee Minx stated the budget workshops are the first opportunity elected officials have to give input to the budget. Prior to that, the budget is the product of staff and the Mayor. Trustee Minx stated she believed the garbage fee is a nuisance bill and in time she would like it gradually moved back to the property tax rolls. Trustee Staackmann stated he was concerned about using a fund balance to support additional garbage subsidies. He pointed out a healthy fund balance generates interest and is needed for infrastructure. He also noted the Village's current Groot contract does not have a fuel escalation clause and the future contract would include those expenses. Trustee Brunner noted Trustee Minx had good intentions but she agreed with Trustee Staackmann. Her recollection is the large levy increase of 2006 was to build up reserves for future infrastructure expenses. She would be in favor of using additional revenue to pay deferred expenses and budget requests from staff. Trustee Marcus concurred with Trustee Staackmann and Brunner and felt it was his job to maintain fiscal responsibility to keep services excellent within the Village. He did, however, have empathy for the aggravation associated with the garbage bill. President Krier called for a motion to take Trustee Minx's prior motion to increase the Village's subsidy for solid waste collection costs from $235,000 to $500,000. The motion was approved unanimously. There being no further discussion on the motion, Mayor Krier called for the question. The motion failed. All Trustees voted no with the exception of Trustee Minx. Trustee Minx then asked that a committee be established to review other revenue enhancement options. Mayor Krier stated the Village's priority after January was to focus on examining the Village's revenue stream. Trustee Staackmann asked the Village designate certain revenues toward certain expenses and the discussion on this topic ensued. Trustee Staackmann then asked Ms. Partipilo for explanations on various budget items. President Krier asked for resident comments: Resident Eric Poders thanked Trustee Minx for her motion, questioned the status of the Village's Fagade Improvement Program and recommended the Village focus on storage and sales offices for electronic investments. He further stated the Village should be more proactive with its zoning. Mayor Krier explained the Village's recent efforts to amend its Zoning Code for that very reason. Resident William Luksha stated the Village's tax rate was twice the rate of Lincolnwood and Skokie. Mayor Krier pointed out Skokie and Lincolnwood had larger tax bases and received much more sales tax revenue. Trustee Minx stated these communities have larger parcels for shopping centers which Morton Grove does not. Trustee Thill noted the Village's recent successful bond sale is an indication the Village is moving in the right direction. There being no further business, Trustee Marcus moved to adjourn the special meeting. The motion was seconded by Trustee Minx and approved unanimously pursuant to a voice vote at 7:53 pm. Minutes by: Teresa Hoffman Liston, Corporation Counsel PASSED THIS 12a' day of November 2007. Trustee Brunner Trustee Kogstad Trustee Marcus Trustee Minx Trustee Staackmann Trustee Thill APPROVED BY ME THIS 12a' day of November 2007 Richard Krier, Village President Village of Morton Grove Cook County, Illinois ATTESTED and FILED in my office This 13a' day of November 2007 Susan Lattanzi, Deputy Village Clerk Village of Morton Grove Cook County, Illinois