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Home My WebLink AboutMinutes Budget Workshop 10-16-2023MINUTES OF THE OCTOBER 16, 2023 SPECIAL MEETING/ 2024 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. Clerk Eileen Scanlon Harford called the roll. In attendance were: Elected Mayor Daniel P. DiMaria, Clerk Eileen Scanlon Harford Trustees Janine Witko, Ashur Officials: Shiba, John Thill, Rita Minx, Connie Travis, and Saba Khan, Absent: None Village Staff : Village Administrator Ralph Czerwinski, Finance Director Hanna Sullivan, Assistant Village Administrator Tom Friel, Public Works Director Mike Lukich, Public Works Director of Operations Kevin Lochner, Village Engineer Chris Tomich, Police Chief Mike Simo, 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. He noted that. with inflation, the Village was facing tough times, but that "we will get through it." He then turned the meeting over to Village Administrator, Ralph Czerwinski. Mr. Czerwinski noted that tonight's presentation would include an overview of the Village and the Library's 2024 Budget, and recommendations to increase certain taxes. He then distributed additional documents that summarized the background and pages of the Budget. The elected officials have been provided budget books which contain detailed information and narratives about the budget. Mr. Czerwinski stated tonight's presentation, as in past Budget Workshops would include projected revenues and expenditures estimated in the General Fund, Enterprise Funds, TIF Funds, Fiduciary Funds, and other Funds. Village expenditures are comprised of three major components, personnel, contractual and commodities. The 2024 Proposed Budget totals $84,130,000.00 which is a $5,900,000.00 increase or 7.66% from 2023 Budget of $78,140,000.00.14. The major increases are funds budgeted for the Lincoln Lehigh TIF projects ($2.9 Million), General Fund increase ($2.46 Million) which are pension fund increases, health insurance increases and increased personnel costs to make the Village competitive for its staffing needs. We also have increased infrastructure and capital projects costs mainly for new watermains and sewers in the amount of $500,000. Mr. Czerwinski characterized the budget as a "Reactionary Managed Budget", as the Village needs to react to increased costs due to inflation, increased health insurance costs which are fixed costs the Village must pay. He listed the following Funding Priorities: bond rating stabilization, capital projects development, appropriate personnel costs, addressing inflationary pressures, market impacts and recruitment. We also need to address the maintenance of public facilities, and the systematic replacement of operational equipment. The proposed General Fund budget (the Village's normal, everyday operating costs) of $37,570,000.00 represents a $2,465,000.00 Increase (7.02%) from the 2023 Budget of $35,1100,000.00. These increases are attributed to pension contribution increases of $654,000.00, healthcare insurance increase of $400,000.00, personnel cost increases budgeted in the amount of $950,000.00, technology cost increases to upgrade Village software to be cloud based which will make us more efficient in the long run, and increased software licensing costs totaling $150,000.00 and street improvements and public buildings cost increases in the amount of $200,000.00. Due to these increased costs, Mr. Czerwinski is recommending a 7.5% Property Tax increase which will generate $868,000. Mr. Czerwinski noted that the impact of the proposed property tax increase on a $400,000 home was approximately $95.90. He is also recommending a 1% increase in Food & Beverage Tax which is expected to produce $600,000. Many nearby communities have a 2% food and beverage tax. He recommends that this increase not be applied to catering facilities. He further requests a $0.01/gallon increase in the local gas tax 1 which will result in $100,000.00 of additional revenue. This additional revenue will help offset Pension Contribution Increases of 9.7% and increased Health Insurance Cost of 10.35%. Mr. Czerwinski summarized the anticipated 2024 General Fund revenues as follows: Source FY 2023 FY 2024 Difference % Change All Taxes $27,272,675 $29,275,534 $2,002,859 7.34% Licenses & Permit Fees $2,201,500 $1,956,500 ($245,000) (11.13%) Fines $816,500 $816,500 $0 0.00% Charges for Services $833,650 $1,123,650 $290,000 34.79% Grants $302,000 $302,000 $0 0.00% Investment/Rental $110,000 $110,000 $0 0.00% Transfers $2,066,000 $2,306,000 $240,000 11.62% Miscellaneous $604,500 $594,500 ($10,000) (1.65%) American Rescue Plan Act (ABPA) $900,000 $1,088,000 $188,000 20.89% Total $35,106,825 $37,572,684 $2,465,859 7.02% General Fund Expenditures were summarized as follows: Media/Communications $39,310 $57,840 $18,530 47.14% Information Technology $764,442 $906,859 $142,417 18.63% Reserves $154,868 $1,112,860 $957,992 618.59% Police Department $12,112,857 $12,509,956 $397,099 3.28% Fire Department $10,311,909 $10,973,931 $662,022 6.42% PW Streets $3,558,015 $3,660,200 $102,185 2.87% PW Municipal Buildings $1,048,135 $1,121,525 $73,390 7.00% 1 Trustee Thill asked if any of these expenditures were for the new Village Hall. Mr. Czerwinski stated that those expenses would be reflected in the 2025 budget, except for some architectural fees. Ms. Sullivan also noted that pension increases were due in part to poor performance by the market and investments. Mr. Czerwinski then reviewed the legislative schedule for the budget process. He expected a public hearing on the Budget, along with a first reading of the Budget and Levy ordinances to be held at the November 14, 2023, meeting, and a Truth in Taxation public hearing on the levy and the second reading of the budget and levy ordinances to occur on November 28. He then asked the Board for questions. Mr. Czerwinski reviewed the following chart with the Board on a line -by-line basis: 2 3 Page# 2023 2024 $ Difference 4TDifference Background GENERAL FUND Legislative 3 5 122,750 $ 122,750 , $• 0.00% Media tommunicatloris 6 5 39,310 5 57.840 $ 18,530 47.14% 1nereasedAdvertising/Com municatlon Administration 8 5 686,105 5 738,705 5 52,600 7.67% Personnel Costs Legal 11 5 384.200 5 373,150 $ (11.050) -2.88% ReductloninMuni Code software Corn munity & Economic Development 14 $ 300,318 5 309,275 $ 8,957 2.98% Personnel Costs Finance 17 5 2,903878 5 2,881,043 5 (22,835) -0.79% Reduced transfer to debt service InformatlonTec hnology 19 $ 764.442 5 914.009 5 149,567 19.57% I ncreased Licensing Fees Reserves 22 5 154,858 5 673000 $ 518,132 334.56% CollectiveBargaining &Unanticipated Police Department 24 5 12,112,857 5 12,686,821 5 573964 4.74% Pension Expense, Personnel Costs Fire Department 27 $ 10,311,909 11,160931 5 849,022 8.23% Pension Expense, Personnel Costs - public Work- Administration 30 `5 $ 95,020 5 95,020 Reclassiflcationofexpensesfrom(Abel PW Depa rtments Public Works- Streets 32 5 3,558,015 5 3.780,350 5 222335 6.25%, I ncrease in Conc rete Work Public Works- Englneerihg 35 5 518971 5 567,545 5 48,574 9,36% Specialized Engineering Review, Personnel Costs Publlc Warks -Vehicle Ma Int. 38 5 1,003,897 $ 1,041305 5 32,408 3.21% I re cease Incost of fuel, repair parts and services .rblic Works- Municipal Bldg. 45 $ 1,043,135 5 1,121,525 5 73,390 7.00% Fire Dept Generator PW roofs Family & Senior Services / Civic Center 40 5 300570 $ 295275 5 15395! -1.79% Personnel Costs Reclassified 31dg,&inspecbona ISem ices 42 5 891,500 5 923.140 5 31,640 3,55% Enhanced Code Enforcement Tote1GeneralFund $ 35,106,825 $ 37,741,684 $ 2,634,859 7..51% Enterprise -Water 47 5 8,122,216 5 8,253.896 5 131,680 1.62% Water Mains Enterprise -Sewer 50 5 1,624538 5 1,888,285 5 263,747 16,24% Austin sewer replacement increased Enterprise -Administration 52 $ 1,634829 5 1.773,933 5 139,104 8,51% Pension Expense, costs reallocated Fire Alarm 72 5 305,100 5 320300 5 15.700 5.15% I nc rease In S ha re of RED Center Capital Pr0lects 54 5 1,360,000 5 1,803.000 $ 443.E+0D 32,57% PW Remodel. Austin Ave, .Oakton Debt Service 56 5 663963 5 664,213 5 251 0.04% Motor Fuel Tax Fund 66 5 3,049,000 $ 2,209.000 5 (840,000) -27.55% Street resurfacing completed in 2023 Emergency 911 Fund 68 5 420,000 5 443,38.4 5 23,384 5.57% Increase in Centre IDrspachcosts Solid Waste Funds 70 S 2,100,775 $ 2,177910 5 77,135 3.67% Increase incollection and disposa1costs Equiment Replacement Fu 72 5 300,000 5 300,000 Equipment purchases Liability lnsuranceFund 72 5 100000 $ 100.000 New Fund- track lRMAc!aims Commuter Park ingFund 72 $ 30,200 5 30,200 $- 0.00% Seizure Fund 72 5 312,000 5 300,500 $ (11,500) -3.69% Workstation purchased2023 MortonGrove Days 72 $ 160,000 5 170,000 5 10900 6.25% I ncrease in operatianalcost Total Other Funds 5 19,782,621 $ 20,435,121 5 652,501 3.3096 TotaIlGenerafOperations 5 54,389,446 5 58,176805 5 3,287.360 5,99% T1 F & Economic Development Lehigh/FerrlsTIF 58 5 3,222,110 5 2,088,810 5 (1,133300) -35,17% Final year of the TIF Sawmill Station TlF 60 5 1314,632 $ 2,539,632 5 725.000 39,95% New economic developmentsuppert Linc olr,telig hTIF 62 5 6,470,000 5 9.370,000 5 2,900,000 , 44.82% NewTIF Fund -Train station& developersupport Economic Development Fur 64 5 1,148,396 $ 1,163397 $ 15,501 1.35% Revenue Sharing Inc reased sa les tax revenue generated F & Econommic Devebpm ere 5 12,655,138 $ 15,162,339 $ 007,201 19.81% Pensions General Employees' Pension 81 5 1.326,000 $ 1,426,000 5 100,000 7.54% Increase reflects actuaIpenslons Flrefr&hters'Pension 81 5 4443,000 5 4,529,500 5 86,500 1.95% Increase ref lectsaetualpensians PolicePensbn 81 5 4,831,100 5 5043,100 5 177,000 3.66% Increase reflects actualpensbns Tota4Pensions S 10,600,100 $ 10,963,600 $ 363,500, 3.43% , TOTAL ALL FUNDS $ 78.144.684 5 84302 744 5 6,158,061 7.38% 3 In response to questions, Ms. Sullivan and Mayor DiMaria explained that the impact on the increased taxes and fees amount to approximately $130.00/year or 10.00/month per household. He asked to remind residents that the Village receives only 12-13% of the total property tax bill. Mayor DiMaria then thanked staff for their hard work. Trustee Minx moved to adjourn the special meeting. The motion was seconded by Trustee Witko and approved unanimously pursuant to a voice vote at 7:37 PM. Minutes by Teresa Hoffman Liston Corporation Counsel 4 Passed this 14th day of November 2023. Trustee Khan Trustee Minx Trustee Shiba Trustee Thill Trustee Travis Trustee Witko ►1'P Approved by me this 14th day of November 2023. Daniel P. DiMaria, Village President Approved and Filed in my office this 14th day of November 2023. • Eileen Scanlon Harford, Village Cler 1 i