HomeMy WebLinkAbout2011-10-25 Special MinutesLVB :a ,.
MINUTES OF THE OCTOBER 25, 2011, SPECIAL MEETING
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 6:01 pro by Village President Daniel J. Staackmann who led the assemblage in
the pledge of allegiance. Corporation Counsel Liston called the roll, in attendance were:
Elected Officials: Mayor Daniel J. Staackrnann, Trustees Daniel DiMaria (arrived at
6:03 pm), Larry Gomberg, William Grear, Sheldon Marcus, John
Thill, and Trustee Toth
Absent: Village Clerk Tony S. Kalogerakos
Village Staff: Village Administrator Joseph F. Wade, Corporation Counsel
Teresa Hoffman Liston, Finance Director/Treasurer Ryan Horne,
IT Coordinator Boyle Wong, Community and Economic
Development Director John Said, Family and Senior Services
Director Jackie Walker O'Keefe, Public Works Director Any
DeMonte, Assistant Public Works Director Joseph Dahm,
Superintendent of Streets Paul Tobin. Fire Chief Tom Friel, Police
Chief Mark Erickson
Also Present: Finance Advisory Commission Chairperson Doug Steinman
Mr. Wade then introduced the evening's topic, which was the review of the Proposed Budget for
2012. Mr. Wade stated the budget is a working, planning document which is used as a snapshot
of the Village's current economic conditions. He stated he believes this is the best budget the
Village has experienced since he has been Village Administrator. When Mr. Wade 'first became
Village Administrator, the budget reflected borrowing for Police Squad Cars, inadequate pension
funding, and inadequate funding for infrastructure. The Village has also gone through the great
recession and has realigned and repositioned itself so its expenses match its revenues. Mr. Wade
believed the Village was in better economic shape today than it has been for awhile. Mr. Wade
complimented the Board for making good decisions and Village Stafffor working diligently to
"do more with less ".
Mr. Wade noted over the past several years there is now $1.2 million Tess paid out in salaries
which reflects a reduction in 16 to 17 full and part -time positions. This year's projected revenue
includes a slight increase without additional taxes or fee increases. Mr. Wade noted there were
two favorable areas where the Village can realize savings for 2012. First, the Village plans to
raise its deductible for its liability insurance. While this will result in substantial savings, Mr.
Wade did note there is a risk in a bad year an increased deductible will have a negative impact on
Richard T. Flickingfr Municipal Center
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the Village. However, this decision was made after a review of the Village's loss history over a
long period of time. Mr. Wade also stated due to state pension reform, the Village's required
contributions to employee pensions decreased by $200,000 for 2012. This compares favorably
to last year when there was a $300,000 increase in pension contributions.
Mr. Wade stated this budget also reflects capital purchases previously deferred including
equipment purchases such as salt spreaders, radio change outs which were mandated due to
frequency changes, and the replacement of Police Department and Public Works Department
vehicles. Mr. Wade also noted this year's budget included $250,000 for Police Department
building improvements. He recommended the Board approve a drawdown of $250,000 from the
Reserves to add to the Police Department building improvements. He believes $500,000 can
male a meaningful impact on the improvements to this buildimg which are badly needed.
Mr. Wade further stated the Fund Balance projected for December 31, 2011, was 26.63% of tile
Village's expenses. Even with drawing down $250,000, the Fund Balance Reserves would be
above the Village's targeted 251/o of expenses.
One concern in the budget is the anticipated water rate increases. The Village purchases its
water from the City of Chicago and the city has announced increases over the next four years of
25 %, 15 %, 15 %, and 15% respectively for a total increase of 70 %. This increase, according to
the City of Chicago, is considered necessary because it needs to make infrastructure
improvements. Mr. Wade stated the Village should consider three choices, purchasing water
from Evanston, Wilmette, or the Northwest Water Commission. The Village's contract with the
City of Chicago runs through 2018; however, ifthe Village decides to use a different source for
water, time will be needed to consider the appropriate studies and make the appropriate
infrastructure improvements.
In conclusion, Mr. Wade stated the Village's greatest assets were its employees, especially the
employees and Department Directors in this room; they truly add value to the Village's
operation.
Mr. Horne spoke next, he reviewed the 2012 Budget Objectives which were to maintain an
appropriate fund balance, plan for long term sustainability, meet expectations both internal and
external, and provide a high quality of service.
Mr. Horne noted the first read of the budget document (ordinance) would take place at the
November 28, 2011, Village Board meeting. This would also be a first read for the 2011 Tax
Levy Ordinance to be collected in 2012. At the December 12, 2011. Board meeting, the Board
would have a second reading on the Budget and Tax Levy Ordinances and pass its traditional
Tax Levy Abatements.
Mr. Horne then reviewed the Village's funds including the Village's General Fund, which is its
Chief Operating Fund, the Special Revenue Funds which include the Motor Fuel Tax Fund, the
E911 Fund, and the Commuter Parking Lot Fund. The Village also has a Debt Service Fund, and
a Capital Projects Fund. The Proprietary Funds include the Village's Water Funds. There are
also Fiduciary Funds which include the Pension Funds (Fire, Police, and General). Mr. Horne
noted the Village currently has a "AA" Bond rating which was granted to the Village because of
prudent fiscal management and its ability to have a balanced budget and maintain available
reserves with a low overall debt burden. Mr. Horne stated the 2012 Proposed Budget projects
revenue in the amount of $23,684,313 with budget expenses in the amount of $23,564,433 which
should provide a surplus of $119,880 and maintain a fund balance of approximately 27 %. Mr.
Horne then gave a historical analysis of the General Fund and noted the General Fund revenues
in 2008 were in the amount of $23,124,032. This amount dips significantly in 2009 to
$21,400,066. Mr. Horne then noted the Village had realigned its revenue sources. In fiscal year
2009, 82% of the Village's revenue came from its tax levy's sales taxes, state income tax,
telecommunication tax, and the electric consumption tax. In 2012, the Village expects to receive
72.54% of its total projected revenue from these same sources. The Village expects to receive
the balance from additional sources including licensing, permit fees, investment fees, and fines.
Mr. Horne then gave the following summary for the 2011 'Tax Levy calculation.
Villacre of Morton Grove
V 2011 Tax Lerj, Calculation r-o
For euv Float Fuel Pcr-
FUND Net &Coal EX1onded EMerxfad tentage
CODE FUND DESCRIPTION 2011 I evy in Collection 2011 Levy Levy Change
OPERATIONS -- - Levi
001 Corporate $4.756532 $142696 $4,899,228 $4524251 829%
001 IMRF 175,000 5,250 180,250 195468 -779%
001 C NA- 325,000 9.750 334,750 306,929 9.06%
065 Capital improvements 50000 1,500 51,500 103,000 - 5000%
006 Police Pension 1550,000 46,500 1596,500 1 ±07298 -649%
007 Fire Pension 1,750,000 _ 52,500 1802,500 1.899,518 -5.11%
Subtotal Operations 8.606532 258,196 8864728 8,736.464 1,47 ° ° /n
BONDS .SERIES
003 GO Bonds 2009 668.904 33,445 702 349 505 402 38 97%
003 G . Bonds 2010 383288 19,164 402.452 210000 0.00%
._ -- —__
__.
Subtotal Bnrde. .__1,052192 _ 52610 1104602 715,40] 5443%'.
PURCHASE AGREEMENTS /NOTES
027 [EPA -. -... - - 517,654 - 10000%
- 027 WKTIF - 1998A 16939 - 508 _ 17447 17,447 _ 0.00%
Subtoal Purchase Agreements 1(,939 506 /7,447 535,111 -9674%
-88_88_.— 8888._. _ _
Total Debt Sannce $1069,131 _ _$53,116 $1,122,249 $1250,5 3 - 1026%
— 8888 __
TOTAL VILLAGE TAX LEW 59675663 53113)4 S99Rf, 9]F co oRr; a]a nnnr
Mr. Horne reviewed the Village's budget department -by- department. He noted a new
department for the Morton Grove Days which is the July carnival the Village has undertaken. It
has a budget of $145,067 in expenses. Mr. Horne noted it is expected the event will generate
revenue to offset these expenses.
He also
noted a
new department
for Morton
Grove
Television. This
is a small budget of
$14,000
but Mr.
Horne believed
it should be
called
out separately.
Similarly, a new department was set up for Morton Grove Animal Control which was also has
a small budget of $16,200.
The Administrative/Legislative budget was expected to show an increase of $600. Similarly,
the Administrative budget was relatively flat showing an increase of $3,900. The Legal
budget decreased by $25,000 to reflect decreased cost averaged over the last several years. The
Economic Development budget also decreased by $31000.
The Finance Department budget increased by $91,000 to show additional costs for health
insurance including retiree health. The Budget also reflects a transfer from the Finance
Department Budget to Debt Service for the 2010 Bond Funds. Mr. Horne noted significant
emergency expenses and contingencies will now be paid directly from the Fund Balance as the
budget only includes $25,000 for unforeseen expenses.
The Information Technology budget decreased by $5,215; however, the Morton Grove
Television Budget which was formally part of this budget has been isolated and moved to a sub -
department of Administration.
The Police Department budget remained relatively flat in the amount of $8,596,679, showing
an increase of $79,280 which reflects pension contributions and increased costs for dispatch
services. This also reflects the purchase of squad cars and equipment replacement.
The Fire Department budget in the amount of $7,033,936 rose by $1 12,786 which is attributed
to dispatch service fees and increased pension costs.
The Public Works Street budget increased significantly by $336,035. This budget in the
amount of $2,226,810 includes an increase in construction services and the addition of a
streetscape maintenance budget. It also includes additional costs for Capital Equipment
Maintenance. The Engineering portion of the Public Works Budget decreased by $4,900 due to
a projected savings in personnel costs.
The Public Works Vehicle budget increased by $72,147 to reflect additional purchases relating
to the Village's fleet maintenance.
The Family and Senior Service budget showed a slight decrease in the amount of $575 due to
reductions in contractual and commodity expenditures. The Civic Center budget showed a
slight $5,275 increase attributed mainly to increased personnel costs. It should be noted this
budget includes an expense for carpet replacement. Also, the Director of Family and Senior
Services' salary has been divided between the Family and Senior Service and Civic Center
budgets.
The budget for Building and Inspectional Services decreased by $56,850. The Village has now
outsourced these services which resulted in a reduction in personnel costs in the amount of
$172,700 and an increase in contractual services of $115,850. The Municipal Buildings budget
increased by $358,000 and included capital expenditures to replace equipment which the Village
was no longer able to defer due to the age of this building.
The Motor Fuel Tax budget showed revenue Tess expenses in the amount of $83.458. Motor
Fuel Tax dollars are based on money allocated from the state on the per capita basis.
The E911 Fund is projected to show revenue, fewer expenses in the amount of $5,592
The Lehigh /Ferris TIF Fund is expected to show revenue Less expenses in the amount of
$635,775. The Finance Director noted the Village expected to repay the Site "B" note in 2011.
The Economic Development Fund is the fund which the Village uses to pay various economic
development agreements. It consists of revenue transferred from sales taxes in other
departments. The Finance Director projected expenses would exceed revenues by $62,094.
The Waukegan Road TIF Fund included total revenue in the amount of $815,750. The budget
included a capital cost for potential redevelopment expenses in the amount of $1,250,000,. and
also included a budgeted expense for debt repayment in the amount of $812,485.
The Commuter Parking Fund projected revenues in the amount of $140,250 and virtually
equal expenses.
The Debt Service Fund includes revenue from the Village's property taxes, home rule sales
taxes, interest income grants, and transfers from the General Fund. The expenses include
payment of bond and note redemption interest which is expected to become due in 2012. Total
revenue for this fund for 2012 is projected at $2,043,241 with total expenses budgeted at
$2,148,672.
The Capital Projects Fund likewise projected revenue from property taxes, home rule sales
taxes, personal property replacement tax grants and state highway reimbursements in the amount
of $911,500. It showed expenses for engineering services, street improvements, LAPP projects
and expenses forwarded from the previous year in the amount of $4,236,000.
Mr. Horne then gave a review of the Village's Enterprise Funds. The Water Sewer Fund
projected increased revenue in the amount of $7,712,484, an increase of $2,040,480 due in large
part for projected increases in the rate charged by the City of Chicago for water. It also included
proceeds from the 2010 Bond Funds which are shown as a revenue expense for budgeting
purposes. The grand total of revenue for 2012 therefore was projected to be $8,972,984.
Expenses from the Water Department are budgeted for 2012 in the amount of $6,438,728, a
decrease of $2,330,495 primarily due to a decrease in capital expenses. The Sewer Fund
showed increased expenses in the amount of $743.500, an increase of $41,089 due primarily to
additional commodity costs. The Water /Sewer Fund Administration account includes
contractual obligations for the Flood Control Program and increased funding contribution to the
Municipal Employees Retirement Fund (MERF). The total revenue less expenses for 2012 was
projected to be $705,406, an increase from the previous year in the amount of $1,137,443. Mr.
Horne then provided a budget summary for the Water /Sewer Fund totals which projected an
unrestricted fund balance as of December 31, 2012, in the amount of $699,608 or 12.21 % of total
operation and maintenance for this fund.
Mr. Horne then asked the assemblage whether or not there were any questions
Mayor Staackmann then led the assemblage in a discussion of the Village's decision to charge
the Park District a surcharge to cover some of the costs of the Village's equipment replacement
for its fuel stations. A 10% surcharge would cost the Park District $2,300 in 2012. It is the
consensus of the Board such a surcharge seemed fair and reasonable.
Boyle Wong then gave a short presentation regarding the Village's Information Technology
Department, Mr. Wong stated the department had entered a stability phase and he was looking
to provide a second intereet connectivity line to enable additional band width for services like
videoconfereneing. He also noted he was investigating an electronic document management
system. Mr. Wong explained the trend was a cost shifting from hardware to software. He stated
software costs typically require a higher outlay but less maintenance and support costs. Mr.
Wong also noted the Village had seen a considerable increase in visits to its website, e-
newsletter, u -tube videos, and the Web Q &A Citizen Support Center located on the Village's
website.
John Said presented a review of the Economic Development Department. He noted substantial
development projects and business growth was underway including Culver's, Essex, Fear City,
North Grove Manor, Terrace Gardens, Produce World, Work -In Gear, Land of Nod. new
restaurants and retailers, and industrial businesses. Certain projects were in the planning stage
including a new Pequods' Restaurant, improvements to the Prairie View Shopping Center, a new
Safelite Retail Store, and potential redevelopments at Sites "J" and "B" within the Lehigh /Ferris
TIF District. Mr. Said then reviewed marketing and complimented the Village's Economic
Development Commission. Fie stated it was a pleasure to work with this commission who had
planned car shows, a health expo, and a pet adoption get together. Additional programs were
being planned. Mr. Said discussed plans to continue streamlining the building and plan review
processes and enhancing customer service in 2012. Cases before the Plan Commission had
increased as had applications before the Appearance Commission. In general, Mr. Said stated
even with reduced staff and a flat budget, the department was taking on more projects with
increased business activity and investment.
Jackie Walker O'Keefe gave a review of the Family and Senior Services Department and
Civic Center. She noted Civic Center revenue to date was $95,030, an increase of 20%
compared to 2011. She also recommended the Board consider moderate increases for the Civic
Center rental fees for 2012 and provided a proposal to this effect. She noted 73 individuals and
families had come in for 294 counseling sessions so far in 2011 and she has fielded over 526
phone calls. The budget for the Civic Center includes needed replacement of the Main Hall
carpeting. She also asked security deposits for rentals be increased and evening rental time be
reduced from midnight to 11:00 pin. Trustee Marcus suggested rental times on Saturdays may
be extended for an additional fee.
Police Chief Mark Erickson then presented the Police Department budget. He noted the sworn
personnel workload included almost 38,000 activities in 2008 including 26,634 911 calls for
police response and 11,000 patrols proactively initiated. He noted the department processed 647
misdemeanor and felony arrests, issued 8,323 ordinance citations and 4,595 traffic citations. The
department conducted 317 detective investigations. The department continued its emphasis on
training and safety especially high risk, high liability training. He reviewed the various
intergovernmental organizations in which the department participates. This is a cost effective
manner to get the best possible services to the residents from highly trained sworn personnel
throughout the area. He noted the Village was successful in sharing resources with other
municipalities including aninnal control with Glenview. Ile thanked Public Works for their
cooperation enabling the department to acquire a used pick -up truck. Chief Erickson reviewed a
history of police squad cars over the past 25 years and noted the department, in cooperation with
Public Works had inspected and reviewed replacement options for the discontinued Ford Crown
Victoria. It was the unanimous opinion of the Public Works staff and the majority of the Police
Officers for the Village to select Dodge Chargers for new patrol vehicles and possibly Tahoes or
Expeditions for command vehicles. Chief Erickson noted the Village, through its grant writer,
was successful in obtaining grants in 2011 totaling approximately $100,000. The Village also
has a pending grant between $100,000 and $250,000 from the Safe Routes to School Program.
Chief Erickson made a request the Board consider making the Animal Control position, a full -
time position which would require an additional $25,000 to $30,000 in increased salary and
benefits.
Fire Chief Tom Friel then presented the Fire Department budget. He noted in 2011, the
department handled am estimated 3,468 alarm activity calls, 65% to 70% of these activities are
emergency medical service alarms. Budget changes for 2012 included a slight increase in
overtime due to historical data trends, a reduction in operation, janitorial, and office supplies, and
an increase in firefighter eligibility testing which had been deferred from the previous year. The
budget also included a deferment of a new generator for Station 44 which reduced the 2012
budget by $38,000. In 2011, the department started a migration of at least some subscribers for a
Village owned fire alarm system. Approximately 80 subscribers were in the process of being
migrated from a private network to a Village owned network. The net result of this is a faster
alarm response, better network maintenance and reliability, and estimated revenue to the Village
in 2012 in the amount of $60,000. Chief Friel then reviewed the age and planned replacement of
the major department apparatuses and noted the planned replacement of Engine #5 in 2015 at an
expected cost of $450,000. A discussion then ensued regarding the creation of a fund where
annual deposits would be made so funding was available when large Fire Department purchase
were required. Mr. Horne stated the most recent ambulance purchase was financed as part of the
2010 Bond issue. Chief Friel then answered questions regarding the purchase of stock fire .
department engines versus engines that had been customized to meet the department's needs.
Andy DeMonte then presented a summary of activities and budget items within the various
Public Works Departmental budgets. He noted the Public Works Department included the
Street Department, Vehicle Maintenance Division, the Engineering Division, and the
Water /Sewer Division. Funds to support these activities come from the General Fund, Motor
Fuel Tax Fund, the Commuter Parking Lot Fund, the Enterprise Fund, and the Capital Project
Fund. Mr. DeMonte noted the total budget request for all Public Works budgets for 2012 totaled
$17,131,338 which was a significant increase over the previous year because the Village was
now able to budget funds for much needed capital purchases and installations. The budget
included a 10% increase in vehicle maintenance costs to replace aging fleet equipment. The
average age of all Public Works equipment was 13 years with the oldest piece of equipment
being a 1973 Mack semi - truck. The budget noted a removal of funds from tree planting, but an
increase of a budget amount of $35,000 for tree trimming. The budget also has a cost for
outsourcing concrete work in the amount of $80,000 and a new sub -fund of $73,300 for
streetscape maintenance. Mr. DeMonte noted with the improvements on Dempster Street,
Waukegan Road, Lincoln Avenue, and Ferris Avenue, the Village should budget for the
maintenance and replacement of the new light poles, furniture. and furnishings. Mr. DeMonte
noted the Village partnered with other municipalities to get better costs for sewer lining and
crack sealing, material hauling, and other expenses. He them reviewed the Motor Fuel Tax Fund.
The Illinois Municipal League estimates the municipality's per capita share of Motor Fuel Tax
Funds in 2012 would be $23.75 or a total to the Village in the amount of $552,662. Motor Fuel
Tax Funds are used for snow removal material, purchase of asphalt and concrete, maintenance of
street lights and traffic signals, and reimbursement to the General Fund for labor costs. Mr.
DeMonte noted Motor Fuel Tax per capita dollars have steadily decreased. In 2008, the per
capita payment was $28.07 - almost $4.33 less per person than the current estimated amount.
Mr. DeMonte noted the Enterprise Fund planned significant capital improvements including the
elimination of dead end sections of the water main system, a replacement of a 12" and 20" water
maul crossings at Caldwell Avenue, a SCADA system hardware upgrade, motor replacements at
the north pumping station, tuck pointing at the north pumping station, and enhancements to the
sewer lining program. Mr. DeMonte stated the City of Chicago was raising its water rates for
2012 by 25 %. He understands Chicago needs to make significant investments to their
infrastructure as does the Village of Morton Grove. The Village currently has 98 miles of water
mains. 9% of the mains were installed before 1920. 32% were installed during the 1920s, and
40% were installed in the 1950s. Mr. DeMonte stated five of the water main crossings are under
the Metra tracks and four are under the Edens Expressway. He is aware of five miles of
deteriorated water main and recommends the Village replace 5.000 feet of that water main per
year. Mr. DeMonte stated 65% of the water mains are undersized for today's needs.
Replacement of water mains is not supported by tax dollars, only fees charged for water and
sewer costs. The Street Department had a capital improvement budget in the amount of
$4,236,000. More than half of this was a tarty -over from previous years as the Village was
waiting for the Illinois Department of Transportation to close -out and bill for the Dempster Street
and Harlem Avenue projects. Mr. DeMonte then answered questions from the assemblage.
Mr. Horne then reviewed the Village's Debt Service Fund. He noted beginning in 2011 through
2014 projected expenses would exceed revenue allotted to the Debt Service Fund, In 2012, the
ending fund balance for this fund was projected to be $364,794. Mr. Horne then reviewed the
ratio of outstanding Village debt. He noted total debt as of December 3 L. 2010, was estimated at
$47,353,096, which compared favorably to the actual debt ten years earlier, December 31, 2001,
in the amount of $65,426,874. This debt represented a per capita obligation of $1,640.16 per
Village resident. Mr. Horne then gave a summary of the Villages General Bond Debt which
through December 31, 2010, was project to be $27,286,495 which compared favorably to the
same total ten years prior which was then in the amount of $28,723,047. Mr. Horne stated this
debt was 2.65% of the estimated actual taxable value of property.
Mr. Horne then asked ifthere were any questions.
Village Administrator Joseph Wade led a discussion regarding possible improvements to the
Prairie View Shopping Center. The center planned on investing approximately $60 million to
improve this site but could only do so if they received support from the Village in the amount of
$10 million. The Village is using S.B. Friedman to review these numbers. Mr. Wade stated it
would be possible to use some tax increment from the Lehigh /Ferris TIT Project to jumpstart
these improvements. He also recommended the Village consider establishing a new TIF District.
Mr. Wade stated the Lehigh /Ferris TIF was very successful and a model when it came to TIF
cash flow management. Currently this TIF District is producing $2.4 million to $2.5 million in
income per year. Mr. Wade noted the district planned on making significant improvements
within the area including improvements to the train station but recommended some ofthis money
be diverted to improve the Village's main shopping center.
There being no further business, Trustee Thill moved to adjourn the special meeting. The
motion was seconded by Trustee Marcus and approved unanimously pursuant to a voice vote at
8:57 pm.
Minutes by: Teresa *iaiston, Corporation Counsel