HomeMy WebLinkAbout2010-11-22 Minutesr.
I. Village President Dan Staackmann called the meeting to order at 7:00 p.m. After leading the
assemblage in the Pledge of Allegiance, he directed the Village Clerk to call the roll.
II. Village Clerk Tony Kalogerakos called the roll. Present were: Trustees Larry Gomberg, Bil
Grear, Shel Marcus, John Thill, and Maria Toth, Trustee DiMaria was absent with notice.
III.
a. Regarding the Minutes of the November 8, 2010 Regular Meeting, Trustee Toth moved,
seconded by Trustee Grear, to accept the Minutes as presented. There was no discussion.
Motion passed unanimously via voice vote.
b. Regarding the Minutes of the Special Meeting of November 8, 2010, Trustee Grear moved
to accept the Minutes as presented, seconded by Trustee Thill. There was no discussion.
Motion passed unanimously via voice vote.
c. Regarding the Minutes of the Special (Budget) Meeting of November 9, 2010, Trustee Thill
moved, seconded by Trustee Marcus, to accept the Minutes as presented. There was no
discussion. Motion passed unanimously via voice vote.
IV. PUBLIC HEARING
V. SPECIAL REPORTS
1. Presentation of Fire Department Poster Contest Winners
a. Mayor Staackmann thanked everyone for coming out on this wet, cold evening.
Fire Chief Tom Friel introduced himself and stated that the poster contest is now in its 18th
year. It was the brainchild of Captain Bill Porter and coincides annually with Fire Prevention
Week. Captain Porter goes to every school in the community to teach children about fire
safety. All the schools are invited to participate in the poster contest. This year, 188 entries
were submitted.
_ Minutes of November '22, 2010 Board Meeting
V. SPECIAL REPORTS (continued)
b. Captain Porter noted that the Firefighters Association reviewed every poster and judged them
based on how correct they were, how clear the message was, and the artwork. He said it was
very difficult to choose this year because so many excellent posters were turned in. The Fire-
fighters Association also sponsors the awards.
c. Captain Porter said the winners in each category will receive two awards: a Ben Franklin
50 -cent piece (because of Ben Franklin's contribution to fire safety) and a plaque with a
digitized photo of their poster on it.
d. The winners were as follows:
Kindergarten: Neel Patel, Jerusalem Lutheran
• First Grade: Mariam Ahmed, MCC Full -Time School
• Second Grade: Olivia Phillips, Hynes School
• Third Grade: Madison Precht, Hynes School (a three -time winner!)
« Fourth Grade: Terrel Tesorero, Hynes School
• Fifth Grade: Farheen Shethwala, MCC Full -Time School
• Sixth Grade: Rachel Albers, Golf Middle School (first winner EVER from Golf School!)
Sixth Grade: Sam Conkle, Park View School
• Seventh Grade: Sara Grosse, Jerusalem Lutheran
b' Eighth Grade: Erin Naumann, Jerusalem Lutheran (also a previous winner)
• Overall Winner: Renata Epple, Jerusalem Lutheran
A plaque was also presented to Principal Naumann of Jerusalem Lutheran in recognition of
his school's being the Overall Winner of the poster contest.
V1. RESIDENTS' COMMENTS (Agenda Items Only'
Tony Kovacs, 8302 Austin. Mr. Kovacs said he appreciates the Board's work on the 2011
Budget in trying to keep taxes low without doing any service cuts, but felt they had missed an
opportunity to enhance fees. He suggested that the discounted rate for vehicle stickers for
seniors be eliminated. Mr. Kovacs said that it's not necessarily the case that seniors are the
poorest segment of the population. It's true that seniors are not receiving a cost of living in-
crease in Social Security next year, but there are many non - senior households not getting a
paycheck at all. He said it's difficult to justify reduced rates for vehicle stickers given the
Village's economic condition. He felt that eliminating the $30 discount would give the Village
about $3,000 for every 100 seniors or $30,000 for every 1 000 seniors. He said that since he
wasn't sure how many stickers were sold at reduced rates, these numbers were illustrative.
The elimination of the discount would cost seniors less than 580 a week. He said it's a fact
that seniors already enjoy tax reductions on property tax, extra exemptions on federal income
taxes, and free rides on CTA and Metra. For Village residents, senior discounts on vehicle
stickers and water bills means more cost for non - seniors, because the money has to come
from somewhere. Mr. Kovacs said he was soon to be eligible for senior discounts himself, but
nevertheless hoped that the Board would consider his suggestion. He said that "tough times
call for tough decisions," and the Board had to do what would be in the best interests of the
whole Village.
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Minutes; of November 22, 2010 Board Meeting;
• a 0 111
Joe Hedrick. Mr. Hedrick, representing American Legion Post 134, thanked the Board and
all the residents who have made it a "great year" for the Legion. He pointed out that there will
soon be a show on Channel 6 about what the Legion does and how it benefits Morton Grove.
The Village's local community staff also prepared a You Tube version. He said it's great to
have the Legion and the Village working together.
He thanked the Village for its donation to the Thanksgiving for sailors event and read a letter
to that effect, which he asked Clerk Kalogerakos to enter into the public record.
Mayor Staackmann asked Mr. Hedrick to provide some details about the Thanksgiving event.
He said they have a bus that goes up to Great Lakes Naval Station and brings down about
50 recruits. A full day is planned for them, including bowling, video games, entertainment,
the Veterans' display at the Historical Museum, a huge sit -down dinner served by volunteers
(including Village Board members), and an incredible sweet table. Best of all is the fact that
10 phone lines are made available to these recruits so they can call —free of charge- -
anywhere in the world, with no time restriction (other than being cognizant that many of their
colleagues also want to use the phones). Mr. Hedrick said that this Thanksgiving event is
really catching on, and more and more residents are supporting it by volunteering with
donations and helping to serve the food. He thanked the Board again for their cooperation
and significant contribution. Trustee Marcus commended Mr. Hedrick and his wife, Donna,
who is president of the Legion's Auxiliary, for all the work they do for this event. Mr. Hedrick
said the chairman of this is Casey Pocara, and he is the driving force behind this. Trustee
Marcus said he'd like to publicly acknowledge Casey for spearheading this great event.
REPORT Vi 1. PRESIDENT'S
2. Mayor Staackmann sought ILL three reappointments ' ! ` i Community
Commission- and Tony Kovacs. i moved,
seconded by Trustee Marcus. Motion passed unanimously via voice votie.
3. Mayor Staackmann wished everyone a safe and happy holiday.
Vlll,
1. Clerk Kalogerakos noted that any resident who wished to address the Board during residents'
comments should fill out a form found in the back of the room and bring it up.
2. Clerk Kalogerakos commented that last week saw the passing of beloved former Mayor Dan
Scanlon. He expressed his condolences to the Scanlon family.
R1
IX.
A. Village Administrator
1. Mr. Wade said that the 2011 Budget process has so far included three budget meetings and a
Budget Overview in October. All those meetings were taped and shown on television multiple
times. All were publicly announced, and all provided an opportunity for residents to comment.
He thanked Pioneer Press, Patch, and TribLocal for their significant coverage of the budget-
ing process.
a. Mr. Wade noted that the numbers for the Public Library have been updated for tonight's
presentation.
b. Mr. Wade said the budget process began last summer. He thanked the Village department
heads and staff for recognizing that we are still in a sluggish economy by minimizing
expenditures. Since 2008, $1.2 million dollars in personnel costs have been eliminated,
with other people picking up the work. The 2011 Budget calls for a 3.5% property tax
increase to support the General Fund. Water rates will increase 3% annually for the next
five years for capital project initiatives (such as the work done on the Dempster Street water
main, which cost $1.7 million). The Village's water utilities are under - appreciated —until
something goes wrong!
C, The 2011 Budget will also see the gradual phase -out of the senior water discounts. The
discount is presently 50 %; it will be reduced to 40% in 2011, 30% in 2012, 20% in 2013, and
10% in 2014. This is because the water system cannot afford the $230,000 annual price tag
for the 50% discount. Mr. Wade commented that Morton Grove's water rate discount for
seniors is an anomaly. There are only two other communities that offer a water rate discount
(Palatine and Crystal Lake), and neither is anywhere close to 50 %.
c. The senior bus service, which costs $30,000 annually, will also be eliminated, Tree planting
and tree trimming programs will also be reduced, as will the card io-pu Imonary resuscitation
sessions offered by the Fire Department.
e. Mr. Horne went through a PowerPoint overview of the budget covering the Tax Levy, the
General Fund, and the Water Fund. He said the Village's objectives for the 2011 Budget
were to have a balanced budget with long -term sustainability. He said what residents pay on
their real estate tax bills depends on what township you live in and what school districts are in
your area. He pointed out a few taxes that are common to all property owners (such as the
Mosquito Abatement District, the Park District, the Forest Preserve District, etc.) The Village's
portion is 12% to 15% depending on where you live.
f. There were no increases in the property tax levy in 2008 or 2009, but a 3.5% is recommended
for 2010 (to be collected in 2011). That will amount to $337,724 of revenue for the Village.
9. Mr. Horne said, regarding the Village's Debt Service Fund, that a portion of the property tax
increase will be allocated to it in 2011 plus some of the home rule sales taxes.
h, Total tax levy includes the Public Library, whose tax levy this year is 15.62 %, for a combined
tax levy of 6.2 %. Because the total tax levy is over 5 %, a Public Hearing will be held on the
Tax Levy on December 10 at 7:00 p.m. (/Vote: Subsequently this Public Hearing was
changed to December 9, 2010 at 5:30 p..)
2
IX.
STAFF REPORTS (continued)
Minutes of November 22,2010 Board ,;00011:11
i. Mr. Horne said this is the first balanced budget since 2007. Fund balances are being
maintained at or near the Village's 25% standard.
j. He said the proposed tax increase will have an impact of about $30 on a $300,000 home
and $40 on a $400,000 home (before exemptions).
Trustee Toth asked if that impact was annually. Mr. Horne said it was.
Trustee Thill asked if that impact included the Library. Mr. Horne said it only reflected the
Village's portion. The combined total levy Is 6.2 %.
k. Trustee Marcus asked if the Library passes its own budget and sets its own levy and if the
Village can comment on it. Mayor Staackmann asked Corporation Counsel Liston to respond.
Ms. Liston explained that the Library passes its own budget, but does not have the ability to
pass a tax levy. That can only be done by the Village. The Library sends their budget and
levy request to the Village Board, and the Board is required to pass it as long as it's in
conformance with certain legal guidelines. Trustee Marcus asked if, as an elected official,
he could query that levy, or if the Board has no input into the Library's levy. Ms. Liston said
the Board has the right to ask questions of the Library's representatives. There will be two
Public Hearings and she hoped that the Executive Director would attend them to respond
to questions. If Trustee Marcus' question is, does the Village have the right to reduce the
Library's levy, the answer is no.
I. Mr. Horne then discussed the Water /Sewer Enterprise Fund. He explained that an enterprise
fund is one in which services are provided on a cost - recovery basis to parties outside the
government (I.e., residents and businesses are the customers). The Budget for 2011 shows
a $635,037 deficit in this fund. He said, for an enterprise fund, a better indicator of stability is
cash flow. Looking at cash flow statements, there will be a deficit at the end of 2010. By 2013,
the deficit could reach $1.2 million.
Mr. Horne noted that the Village is losing approximately 10% revenue annually due to aging
and ineffective water meters. Mayor Staackmann pointed out that it could be seen as a "lost
expense" too, because the Village is paying the City of Chicago for water and the Village is
not recouping r of due to r ineffective water meters. r. • capital • r • including
upgrade/replacement a water meter this
year.
n. Mr. Horne said that the Village hired the Municipal & Financial Services Group (MFSG) in
2007 to provide a cost of service study, a cost of service analysis, and develop a rate model
for water sales and sewer usage to ensure the Village's water and sewer rates are recovering
the cost of these proportionately among users. According to their findings, presented in
March 2008, the Village's sewer rates do not produce sufficient cash revenue to cover cash
requirements —in fact, cash revenue is roughly 49% less than what is required. Also, the
Village has a significant amount of water and sewer infrastructure that has exceeded its useful
life. Other findings note that the Village is equitable in distributing the costs among the users
of the system, the Village's senior citizen discount for water service is "very generous ", and
the Village does not charge new customers a capital connection fee for buying into its water
and sewer systems.
R
u
IX. STAFF REPORTS (continued)
o. The study's conclusions are that (1) the Village needs to increase water and sewer rates
over the next five years to keep revenues in line with expenses and to fund necessary capital
projects; (2) the Village should plan to invest "significantly" in its aging water and sewer
systems over the next 10 to 20 years in order to continue to provide reliable water and sewer
service to its customers; and (3) the Village should adopt a capital connection fee so that
current customers are not subsidizing the cost of serving new customers.
p. The MFSG recommended that the Village formally establish reserves for operating and
maintenance of water systems and for repair, renewal, and rehabilitation of them. They
also recommended that the Village invest, at a minimum, $1 million annually in its water
distribution system and $.45 million annually in its sewer system. They further recommended
the elimination of the senior discount and recommended a meter replacement program
charge so that the water meters could be replaced every 15 to 20 years without issuing
bonds.
q. Mr. Horne said that the recommendations for the 2011 Budget include a 3% increase in water
and sewer rates, a meter replacement fee, a capacity fee for new services, and the beginning
of the elimination of the senior discount. The Finance Advisory Committee, which was
established, in part, to "advise the Corporate Authorities regarding the general long -term and
strategic financial direction of the Village", reviewed all these recommendations and agrees
that they are necessary. The impact on the average user of the meter replacement fee and
the 3% increase is about $0.65 more each bill. The impact on a user currently receiving the
senior discount would be about $8.09 more each bill. Implementing these changes will help
reduce the projected 2013 deficit from $1.2 million to only about $106,000.
Trustee Grear thanked the Finance Advisory • ► .. o for establishing
about He said it was immensely helpful to him to have another commission review this data and
comment
X.
A. Trustee DiMaria:
Trustee DiMaria was absent —no report.
B. Trustee Gomberq:
A
Minutes
of
November
22,
2010
Board
Meeting;
IX. STAFF REPORTS (continued)
o. The study's conclusions are that (1) the Village needs to increase water and sewer rates
over the next five years to keep revenues in line with expenses and to fund necessary capital
projects; (2) the Village should plan to invest "significantly" in its aging water and sewer
systems over the next 10 to 20 years in order to continue to provide reliable water and sewer
service to its customers; and (3) the Village should adopt a capital connection fee so that
current customers are not subsidizing the cost of serving new customers.
p. The MFSG recommended that the Village formally establish reserves for operating and
maintenance of water systems and for repair, renewal, and rehabilitation of them. They
also recommended that the Village invest, at a minimum, $1 million annually in its water
distribution system and $.45 million annually in its sewer system. They further recommended
the elimination of the senior discount and recommended a meter replacement program
charge so that the water meters could be replaced every 15 to 20 years without issuing
bonds.
q. Mr. Horne said that the recommendations for the 2011 Budget include a 3% increase in water
and sewer rates, a meter replacement fee, a capacity fee for new services, and the beginning
of the elimination of the senior discount. The Finance Advisory Committee, which was
established, in part, to "advise the Corporate Authorities regarding the general long -term and
strategic financial direction of the Village", reviewed all these recommendations and agrees
that they are necessary. The impact on the average user of the meter replacement fee and
the 3% increase is about $0.65 more each bill. The impact on a user currently receiving the
senior discount would be about $8.09 more each bill. Implementing these changes will help
reduce the projected 2013 deficit from $1.2 million to only about $106,000.
Trustee Grear thanked the Finance Advisory • ► .. o for establishing
about He said it was immensely helpful to him to have another commission review this data and
comment
X.
A. Trustee DiMaria:
Trustee DiMaria was absent —no report.
B. Trustee Gomberq:
A
X. TRUSTEES' REPORTS (continued)
B. Trustee Gomberg:
a. Trustee Gomberg said that the figures in the Ordinance currently are not correct in that the
packets were delivered to the Trustees on Thursday, but the Library's figures were not
received by the Village until late Friday.
b. Trustee Gomberg said he would read the most up -to -date and accurate figures and the Board
would be provided with up -to -date copies this week. The Budget will be available for inspec-
tion at the Village Administrator's office and the Public Library, and is posted on the Village's
website. A Public Hearing on the Budget will be held on December 13, 2010, in conjunction
with the Village's regularly - scheduled Board Meeting.
c. Trustee Gomberg said that the Village's total budget is $56,979,243 and the Library's total
budget is $3,165,848, for a combined grand total of $60,145,091. He invited the Public to re-
view the budget at the venues mentioned previously.
d. Mayor Staackmann asked Mr. Wade if residents who have questions regarding the Library's
budget and levy should address their questions to him. He said he could coordinate the ques-
tions and get them to the Library so the Library can respond. Trustee Marcus noted that there
would be a Public Hearing so that residents and the Board could get answers to their ques-
tions. Mayor Staackmann agreed that that would present an opportunity as well.
He explained that, pursuant to the recommendations of the Municipal Financial Service
Group, this ordinance provides for a 3% annual rate increase for a five -year period and the
phasing -out of the senior water rate discount program. This will ensure sustainability for
the Water /Sewer Fund. This amendment is expected to provide a net increase to Water Fund
revenue of $203,360 in fiscal year 2011.
VA
Minutes of November 22, 2010 Board Meeting]
X. TRUSTEES' REPORTS (continued)
C. Trustee Grear:
1. Trustee Grear asked for a moment of silence to remember former trustee and former Mayor
Dan Scanlon.
He said that, in May of 2010, the fire department had received notice that it received a federal
Assistance to Firefighters Grant in the amount of $27,200. This grant had been applied for
with the Village of Niles for the purchase of innovative, interactive proprietary simulator train-
ing software and computer hardware known as the "Flame -Sim 4 Station Mobile Center."
This will fund 8 computers with associated software /hardware to be deployed between Morton
Grove and Niles fire stations. The grant requires a 20% match from both Villages in the
amount of $5,440. The Village will remit the whole 20% match and will invoice the Village of
Niles for its portion of the match, which is $2,720.
Trustee Grear thanked District Chief Frank Rogers and Captain Bill Porter for their efforts in
obtaining this grant.
D. Trustee Marcus:
• • .. .. • •
IWM
a. Trustee Marcus said there had been some discussion since this ordinance was first intro-
duced, that the ordinance should be amended to be more fitting to this particular location. He
therefore moved to amend Section 5 -9 -9 C by adding the following sentence: "Any vehicle
parked in the municipal parking lot located at 8550 Lehigh without displaying a parking permit
for said parking zone shall be considered an unlawful vehicle and, in addition to any other pe-
nalty, shall be subject to towing pursuant to Chapter 7 of this title." Trustee Thill seconded the
motion.
b. Trustee Grear asked for an explanation. Trustee Marcus asked Ms. Liston to clarify. She said
this suggestion came from the Police Department. This particular parking lot is "permit only ".
Permits must be purchased before anyone can park there. If someone parks there who didn't
pay for a permit, they are depriving someone who did pay from having a space. The Police
Department felt that, under those circumstances, the penalty should be more than just a park-
ing ticket. This amendment gives them the authority to tow such cars as "unlawful vehicles ".
X
D. Trustee Marcus:
TRUSTEES' REPORTS (continued)
Minutes of November 22, 2010 Board Meetin ' `
c. There being no further discussion, Mayor Staackmann called for the vote on the motion to
amend Ordinance 10 -21. Motion passed: 5 ayes, 0 nays.
Tr. DiMaria absent Tr. Gornberg a)e Tr. Grear aae
Tr. Marcus avee Tr. Thill Ue Tr. Toth 2e
d, Trustee Marcus then moved to adopt Ordinance 10-21 as amended, seconded by Trustee
Toth, Motion passed.w 5 ayes, 0 nays.
Marcus r d e Tr. Thill aye aye
2. Trustee Marcus extended his sympathies to the Scanlon family, noting that Dan was truly a
hero to them and to Morton Grove. He said it was unique that the former mayor passed away
on Veterans' Day. Dan will be sorely missed but he left some wonderful memories.
3. Trustee Marcus wished everyone a happy Thanksgiving, and, to his Jewish friends and
neighbors, a Happy Chanukka.
E. Trustee Thill
F. Trustee Toth:
_- , • -.•;
OTHER X. BUSINESS
Q0
XI. WARRANTS
Trustee Gomberg presented the Warrant Register for November 22 2010 in the amount of
$1,164,227.65. He moved to accept the Warrants, seconded by Trustee Thill.
a. Trustee Thill had a question about a check for $2,600 listed on page 3 of the Warrants, paya-
ble to the Cook County Treasurer for "property on Narragansett." Mr. Horne said that was the
property tax payment, the Village has applied for an exemption for it. The Village will not pay
that invoice, pending revised figures.
P
xl.
WARRANTS (continued)
Minutes of Novomber -22, 2010 Board Meetin
b. Trustee Thill had a question on page 5 of the Warrants regarding "Field Testing for Water Me-
ters". He said he thought that was done in- house. Public Works Superintendent Paul Tobin
responded that the Village only has the capability to test 2" or smaller in diameter water me-
ters in- house; the larger ones have to be sent out.
C,
There being no further discussion, Mayor Staackmann called for the vote. Motion passed.
5 ayes, 0 nays.
Tr. DiMaria absent Tr. Gomberg ave Tr. Grear ave
Tr. Marcus ave Tr. Thill ave Tr. Toth awe
d.
XII. RESIDENTS' COMMENTS
i• •, ! !- •- • • . s - 1. • • r �• • ! - •
i ` • ` ! ! �- a # a r a s i r. a • r • r ! a r a a i
WE
Ms. Davis said, in conclusion, the library seems low on computer space, which could be alle-
viated by making better use of the reference area. Staff areas are beautiful, and the library
should look to a future with a very stable Village population. Residents are very happy with the
current library and the programs offered. With the inter- library system, residents have access
to other libraries, should they need to. Therefore, a new library building, which would increase
the already -heavy tax burden to residents, does not seem necessary, especially in light of a
15.6% proposed tax levy for the Library's 2011 Budget.
W]
Minutes of November 22, ,2010 Board Meeting'
ADJOURNMENT/EXECUTIVE
Trustee Thill moved to adjourn the meeting. Trustee Marcus seconded the motion.
Motion passed unanimously via voice vote. The meeting adjourned at 8:29 p.m.
PASSED this 13th day of December, 2010.
Trustee
Trustee
Trustee
Trustee
Trustee
Trustee
DiMaria
Gomberg
Grear
Marcus
Thill
Toth
�y rye this 13th day of December, 2010.
Daniel, /Jv Staackmann, Village President
Board of Trustees, Morton Grove, Illinois
APPROVED and FILED in my office this 14th day of December, 2010.
Tony S. Kalogee.,akosl Village Clerk
Village of Morton Grove, Cook County, Illinois
Minutes by Teresa Cousar
17E