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HomeMy WebLinkAbout2009-09-23 Special MinutesMINUTES OF THE SEPTEMBER 23, 2009, SPECIAL MEETING — BUDGET WORKSHOP OF THE BOARD OF TRUSTEES RICHARD T. FLICKINGER MUNICIPAL CENTER 6101 CAPULINA AVENUE MORTON GROVE, ILLINOIS 60053 Pursuant to proper notice in accordance with the Open Meetings Act, the special meeting was called to order at 7:02 pm by Mayor Daniel J. Staackmann who led the assemblage in the pledge of allegiance. Clerk Kalogerakos called the roll. In attendance were: Elected Officials: President Daniel Staackmann, Trustees Dan DiMaria, Larry Gomberg, William Great, Sheldon Marcus, John Thill, and Maria Toth, and Village Clerk Tony Kalogerakos Village Staff: Village Administrator Joseph F. Wade, Corporation Counsel Teresa Hoffman Liston, Finance Director /Treasurer Ryan Horne, Community and Economic Development Director Bill Neuendorf, Public Works Director Andy DeMonte, Police Chief Mark Erickson, Police Commander Brian Fennelly, Police Commander Norman Stromberg, Family and Senior Services Director Jackie Walker O'Keefe, Network Administrator Boyle Wong, Family and Senior Services Coordinator Bud Swanson, Building Commissioner Ed Hildebrandt, and Fire Chief Tom Friel Also Present: Members of the press and public President Staackmann introduced Mr. Wade to the assemblage who stated this is the first of a series of workshops for the 2010 budget. Mr. Wade noted this is a long process and thanked staff for their hard work and efforts. Mr. Wade noted Morton Grove, like many municipalities, was wrestling with the current recession in order to meet escalating costs coupled with shrinking revenues. The Village has taken a series of cost saving steps that include not filling the following staff positions the human resource manager, a police officer, a pumping station operator, an account intern, part -time social worker, part-time custodian, and a receptionist at the senior center. The Village had also deferred filling the finance director, a mechanic's position, assistant finance director, and two community service officers positions. Capital items have also been deferred. The 2010 budget, as prepared to date by staff, is in draft form and subject to revision at the direction of the Village Board. The current budget is based on a 0% cost -of -living increase for non - represented employees; however, all 2010 pension contributions will be fully funded. The Village will continue to defer capital items such as streets, water mains, and alley improvements. The administration recognizes these items need attention but due to the dire economy they are again being deferred. Mr. Wade then introduced Finance Director /Treasurer Ryan Horne. Mr. Horne stated this is the first of a series of budget workshops with the last to be conducted on October 19, 2009. He noted all the data being provided today must be considered within context. Mr. Horne stated in 2009 the projected revenues were calculated at $21,765,674. However, budgeted operating expenses were estimated at $24,554,480 for a deficit in 2009 of $3 million which will be made up by a withdrawal from the Village's fund balance. This $3 million deficit is caused in part by declining revenues. The projected 2009 revenue is approximately $315,000 less than 2008 revenues, $1,400,000 less than 2007 revenues, and $1,300,000 from 2006 revenues. This is attributed to declining real estate transfer taxes, sales taxes, and income taxes. During the same period of time, the Village has also faced increasing expenses due to escalating pension costs, increased costs for commodities, and personnel costs. Mr. Horne was pleased in both March and September of 2009 the Village's bond ratings remained stable at Aa3. This rating, assessed by Moody's remains stable despite the Village's financial state due to prudent fiscal management, and available reserves. The Village currently has a reserve policy of 25% of operating budget. In order to reach short term solutions to the financial crisis, the Village has, as Mr. Wade stated, not filled or deferred staff positions and deferred capital expenses. Mr. Home noted such deferrals could not continue indefinitely and it was important for the Village to focus on its priorities. Mr. Horne then introduced the Administrative Budget. The Administrative Budget is broken into four distinct departments, Legislative (which are expenses related to elected officials, boards and commissions, and village functions), Legal, Administration, and Economic Development. The 2010 Legislative Budget is requested at $107,900, a $30,180 or 22% decrease which can be attributed in part to the elimination of Family Fest, and certain professional services. The Administration Budget for 2010 requested in the amount of $387,210 is $16,127 less than the 2009 or a 4% decrease which is attributed to the elimination of the Village's Administrative Intern. Mr. Horne noted the 2009 Budget represented a significant decrease from previous years because the Village did not fill the human resource manager's position for a savings of $85,146. The Village's Legal Budget for 2010 requested in the amount of $408,000 was unchanged from previous years. Mr. Horne stated in fiscal economic times litigation expenses are expected to increase. Corporation Counsel Liston noted the Village was expected to go to arbitration with respect to its FOP and IAFF contracts. Mr. Horne then introduced the Economic Development Budget. The 2010 request in the amount of $124,150 remained virtually unchanged from previous years. The Economic Development Fund (Fund 16) was requested for 2010 in the amount of $272,625 or a decrease of $79,148 from previous years. This fund's decrease is due in large part because the Village has paid off its obligations under certain economic development agreements including the McGrath Acura Agreement and the Menard's Agreement, as well as the St. Paul Federal Agreement. The Village was also eliminating the Facade Improvement Program for 2010. 'This budget expects slight increases to the Village's payment to District 70 and District 67. Mr. Home and Mr. Neuendorf then reported on the Village's Lehigh /Ferris TIF Fund (Fund 15). The revenue totals for 2010 were projected at $4,480,000, an increase of $469,500 due to increased valuations. Expenditures related to the 2007 Bond issue were requested at $9,288,800. Mr. Neuendorf stated unlike many other funds discussed during the budget process, the Lehigh/Ferris TIF fund was an independent account and not based on the assessment of property taxes from Village wide property owners. Tire revenue in this fund emanated from the bond proceeds, and incremental taxes which can only be spent within the TIF fund. Mr. Neuendorf stated capital projects expected within the district in 2010 included construction and realignment costs for Lincoln and Ferris Avenues (railroad realignment) the Dempster Street water main, and also marketing expenses which could be paid from the TIF Fund. Mr. Neuendorf then reported on the Waukegan Road TIF District (Fund 17). The 2009 projected revenue was expected at $727,500. Budget requests from this fund were expected to increase by $945,465 and included possible land acquisition costs. Mr. Horne then reported on the requested 2010 Finance Department Budget in the amount of $2,310,080. This amount reflected a decrease from the previous year in the amount of $135,499 or 6 %. This decrease was due to a change in personnel for a savings of $55,195, and the fact the Village paid off the loan for the 2006 ambulance. Retiree health insurance costs of $265,000 are included in the Finance Department's budget. Mr. Horne also noted the 2010 Finance Department Budget included Reserves in the amount of $333,000 which would be used to pay increased health insurance costs and any personnel increase cost required by Collective Bargaining Agreements which have not yet been finalized. Mr. Wong then introduced the Information Technology Budget. The 2010 budget request in the amount of $464,713 remained virtually unchanged from the previous year. Mr. Wong then noted the accomplishments from 2009 which included two major server refreshes, the increase in high availability workers (cell phones that can also provide data), and electronic document archiving. Mr. Wong had begun an e -mail archive and retention project as well. The 2010 informational technology goals include the establishment of citizen relationship management software which will help track and enhance customer service. Mr. Wong is also working on a microwave connectivity project which will eventually save the Village expenses for a phone wire cost to transfer data between Village Hall buildings. Mr. Wong also noted the 2010 budget includes a cost for server, hardware virtualization. The goal of information technology is to either increase service /productivity at no cost or maintain current levels of service and productivity at a cost savings. Mr. Hildebrandt introduced the Building and Inspectional Service Budget which was requested in 2010 in the amount of $513,150. This budget is virtually unchanged from previous years and Mr. Hildebrandt noted a reduction in the part-time inspectors is planned. Mr. Hildebrandt also noted the workload within the department had decreased due in large part to the declining permits being issued, for example, from 2003 — 2006 permits per year averaged 900. In 2008, there were 777 permits issued and as of September 30, 2009, only 372 permits have been issued. Mr. Hildebrandt also introduced the Municipal Buildings Budget which request for 2010 was $155,675 or a decrease from previous years in the amount of $150,350 (49 %). This decrease is due to the fact no maintenance projects are included in the proposed budget. Jackie Walker O'Keefe introduced the Family and Senior Service Budget requested for 2010 in the amount of $397,073 which is virtually unchanged from previous years. Ms. Walker O'Keefe summarized her department strives to provide high quality programs for residents and in 2009 successfully increased outreach efforts to seniors and disabled residents. Also in 2009, the Village received a grant in the amount of $57,714 to replace the 1999 senior bus. Ms. Walker O'Keefe noted the 2010 goats and objectives which included maintaining social services for seniors, and identified gaps in social services for non - seniors. Bud Swanson introduced the Civic Center Budget in the amount of $277,350 which represented a decrease of $9,346 or 3 %. In 2009 the senior center surpassed its revenue goals and received revenue in the amount of $140,180 which compares favorably to 2005 revenue in the amount of $57,762. He noted the Village takes great pride in keeping the building attractive and maintaining a high level of customer service which is why rentals seem to be very popular there. Mr. Swanson stated the department was considering a slight increase in rental rates. Mr. Swanson also noted the new roof expense has been completed in 2009 and in 2010 the department planned to rebuild the chimney. Mayor Staackmann asked for questions from the Board and there were none. He then asked for a questions from the audience and there none. There being no further business, Trustee Di Maria moved to adjourn the Special Meeting. The motion was seconded by Trustee Marcus and approved unanimously pursuant to a voice vote at 8:00 pm. — i 1 n ✓'+ S. Kalogerakos Special meeting minutes.09 -23 -09