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Home My WebLink About2009-10-21 Special MinutesMINUTES OF THE OCTOBER 21, 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 7:00 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 Grear, Sheldon Marcus, John Thill, and Village Clerk Tony Kalogerakos Absent: Trustee Maria Toth 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, Public Works Division Superintendent Joe Dahm, Public Works Division Superintendent Paul Tobin, Village Engineer Chris Tomieh, 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, Building Commissioner Ed Hildebrandt, and Fire Chief Tom Friel Also Present: Members of the press and public Mr. Wade began the presentation by stating tonight's Budget Workshop would review various funds and revenue projections. Mr. Horne then introduced Andy DeMonte who explained the revenue and expenditure projections in the Village's Enterprise Fund. The Enterprise Fund is comprised of the Village's Water Division, Sewer Division, and Water /Sewer Administration Division. There are two projects scheduled for 2010. The painting of the North Station water tower, at a cost of $367,000 and replacing the water main on Dempster Street at a cost of $1,721,000. It was noted that $863,000 of the Dempster Street cost will be paid from the Lehigh/Ferris TIT Fund, and $858,000 would be paid from the Enterprise Fund. With these expenditures, the 2010 Enterprise Fund total expenditures will exceed total revenues by $1,427,768 resulting in the use of all the Enterprise Fund's cash reserves. If necessary to maintain fiscal solvency, Mr. DeMonte noted that the Enterprise Fund Budget could be reduced in the amount of $261,000 by deferring the purchase of water meters and transmitters, valve replacements, pick -up trucks, plows, and sewer line linings. Mr. DeMonte also noted the past two years have resulted in some of the lowest sales of water since records have been maintained in 1962 due to extremely wet springs and summers and moderate temperatures. Mr. DeMonte suggested the Village revisit the study performed in 2008 and consider rate increases and/or the issuance of bonds so needed capital improvements can be completed. Mr. DeMonte stated the Village's Capital Improvements would be limited to the Dempster Street streetscape and water main. Approximately $30,000 had been budgeted for repairs to the Beckwith Bridge as mandated by the State. Also, the Village will not outsource to fill potholes, instead Public Works employees will do this work. Responding to questions regarding the Five Year Capital Projects Plan, Mr. DeMonte and Mr. Wade stated while the plan is in place, there is not sufficient revenue to support this plan. Mr. DeMonte did note there are funds available to pay the Village's share of state projects which have or will soon be completed. Responding to additional questions, Mr. DeMonte stated the Dempster Street improvements are moving forward and the only question is when. He expected bids to be out in March and contracts to begin in May or June. Mr. Tomich noted the Village needed to acquire certain rights -of -way from private property owners. He also stated, even though the State has authorized quick take authority, the process may take seven (7) months. Mr. DeMonte then explained the Village's Motor Fuel Tax Fund. He provided historical context stating the Motor Fuel Tax was imposed throughout the state for operating motor vehicles on public highways and recreational watercraft on waterways in the State of Illinois. The tax is paid by distributors and suppliers who collect the tax from customers. Taxes are then redistributed to municipalities on a per capita basis. Based on estimates from the Illinois Municipal League, the Village of Morton Grove will receive $25.60 for each Village resident for 2010. Currently there are 22,451 which will result in a payment to the Village of $574,745.60. Trustee Thill noted this formula underscores the need to get everyone registered for the 2010 Census. The Village's Motor Fuel Tax Fund has dropped dramatically since 2007 when the Village received approximately $641,325 in Motor Fuel. Tax funds. Based on this, the Village will in 2010 receive approximately $66,000 less than it received in 2007. Because of this decline in revenue, the Village has reduced its transfer from the Motor Fuel Tax Fund to the General Fund by $89,500 and has eliminated the Outsourcing Patching Program. It has also reduced its purchase of concrete. During the last three years, the Motor Fuel Tax Fetid has operated at a deficit, mostly due to the cost of salt. In response to questions, Mr. DeMonte said the salt dome is full and he does not anticipate purchasing salt until January 2011, Ryan Horne then reviewed the Village's Projected Revenue. As of October 21, 2009, projected revenues for 2009 stand at $21,462.71. Projected expenses stand at $23,228,666, leaving a projected deficit of $1,7605,595. While this is not good hews, it is better than the Village's original $3 million projection. The Village's revenue has declined significantly over the past two years. In 2007, the Village received revenue in the amount of $25,307,000. In 2008, revenue was received in the amount of $23,194,000, The declining revenues come from three main sources decreased revenue from real estate transfer taxes and building permits, decreased sales tax income, and decreased income taxes. Mrs Wade stated in 2010, the Village expected to receive $1 million less from transfer taxes and building permits than it received in 2006. Likewise, the Village expected to receive sales taxes in 2010 in the amount of $3,700,000 compared to 2006 sales tax revenue in the amount of $4,395,000. The Village expected to receive its share of state income tax in the amount of $1,728,727 compared to $1,839,485. The total decline in sales tax and income tax is approximately $800,000. Mr. Florne then explained how revenue projections were calculated. Some information comes from estimates received from the Illinois Municipal League and some comes from trending five year averages. Based on revenue projections and budged expenses to date, the Village expects the deficit for 2010 to be $3,253,275. The Village's current unrestricted fund balance is projected to be as of January 1, 2010, in the amount of $6,736,330. With a deficit of $3,253,275 taken from the fund balance, the fund balance as of December 31, 2010 would be $3,483,055 or 14.13% of the Village's total General Corporate Operation and Maintenance Fund. The Village has a policy of maintaining a fund balance of 25 %. Mayor Staackmann asked for questions from the Board and there were none. I3e then asked for questions from the audience and there none. Thereafter, Trustee DiMaria moved to adjourn to Executive Session to discuss personnel issues, and the purchase and sale of Village owned real estate. The motion was seconded by Trustee Thill and approved unanimously pursuant to a roll call vote at 7:44 pm. At the close of the Executive Session, Trustee Di Maria moved to adjourn the Special Meeting. The motion was seconded by Trustee Gomberg and approved unanimously p rsuant to a voice vote at 10:11 pm. __„P_.__.w l� A by: 'Pony S. Kalogerakos Special meeting minutes.10 -21 -09