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HomeMy WebLinkAbout2012-11-07 Special MinutesMINUTES OF THE NOVEMBER 7, 20125 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 Meetin.. Budget Workshop was called to order at 6:00 pm by Village President Daniel I. Staackmann who led the assemblage in the pledge of allegiance. Clerk Kalogerakos called the roll. In attendance were: Elected Officials: Mayor Daniel J. Staackmann, Village Clerk Tony S. Kalogerakos, and Trustees Daniel DiMaria, Larry Gomberg, William Great, Sheldon Marcus, John ]'hill (arrived at 6:15 pm), and Maria Toth Absent: None Village Staff: Village Administrator Ryan J. Horne and Corporation Counsel Teresa Hoffinan Liston, Fire Chief Tom Friel, Police Chief Mark Erickson, Public Works Director Andy DeMonte, Assistant Public Works Director Joe Dahm, Street Superintendent Paul Tobin, Assistant to the Village Administrator Peter Falcone, Finance Director Remy Navarrete, Building Commissioner Pro Tern Bill Porter Also Present: None Finance Director /'Treasurer Navarrete stated one of the goals for the Village for 2013 was to receive the GFOA Distinguished Budget Award. In order to achieve this goal, the Village will be changing its budget format this year. Ms. Navarrete disseminated and then reviewed a sample format for the Board's consideration. The format included a profile of the Village and history of its local economy. The new budget will include an introductory letter which will explain the budget process. an overview and revenue assumptions, a flow chart showing the structure of all village funds, and a chart explaining a summary of all those funds and their history from 2011 to the present time. To receive the GFOA award, the budget must provide three years of historical data. ' Ms. Navarrete then gave an explanation of all taxes including general sales taxes, home rule sales taxes, property taxes, state shared income taxes, telecommunication tax, electric tax, and natural gas tax, an explanation of the various funds, the basis of budgeting and a flowchart showing the various departments and offices the Village. She then explained each department will have a section which will include a summary showing its description, achievements and goals, and a breakdown of revenue and expenditures by accounts. Richard T. Flickinger Municipal Center 6101 Capulina Avenue ® Morton Grove, Illinois 60053 -2985 Tel: (847) 965 -4I00 Fax: (847) 965 -4162 Mr. Horne then reviewed the budget timeline. He noted the budget ordinances would be placed on the Village Board's agenda on November 26 and December l0. The December 10 agenda will also include the resolutions for the tax levy abatements. He then read ,the previous and upcoming scheduled Budget meeting dates; October 22, November 7, November 12, November 20, November 26, November 27, December 5, and December 10. Mr. Horne noted the objective of the 2013 budget was to maintain appropriate fund balances, to address the long term sustainability of Village services, to meet the internal and external expectation of the Village's customers, and to continue to strive for quality services. Mr. Horne outlined the various funds of the Village and explained how they fall into three broad categories - Governmental Funds, Proprietary Funds and Fiduciary Funds. Governmental funds include activities supported by taxes, grants, and similar resources. These are the General Funds, -the Village's chief operating funds; Special Funds including MET, E91 1 and the Municipal Parking Lot Fund; Debt Service Fund; Capital Projects Fund, and fiduciary funds. Proprietary Funds are used to report business type activities such as utilities. They are classified into two types: Enterprise Funds, i.e., the Village's Water Fund ,and internal service funds. The Fiducuary Funds include Pensions and other Employee Benefit Trust Funds, Investment Trust Funds and Agency Funds such as Police Seizure Funds. Mr. Horne then reviewed the Village's bond rating of AA stable, an achievement for which all residents can he proud. Mr. Horne then stated the current projected revenue for 2013 was $24,792,088. Projected expenses were $24,746,917 for a projected surplus of $45,171.00. The Projected Fund Balance at the end o'12013 is anticipated to be 25,74% which is within the Village's guidelines. Mr. Horne then reviewed the General Fund Revenues for 2013. The major revenues which constitute 72.64% of projected revenue include a real estate tax levy of 34.52% for all revenue, and other taxes which constitutes 38.12% of revenue. By comparison, in the year 2009 Other Revenues made up 46.5% of all revenue. All other sources of revenue including permit fees and penalties total 27.36% of projected revenues. This compared favorably to fiscal year 2009 when other sources of revenue comprised 17.4 %. Mr. F lorne noted the 2013 Budget did not anticipate atax levy increase. Mr. Horne then reviewed the calculations of the 2012 tax levy. While it would be flat, there would be some changes to account for a greater allocation towards the Village's obligation to fund the Police and Firefighter Pensions. Mr. Horne also noted the amount of Village debt service paid by the tax levy was decreasing. He further noted the Levy calculations do not include the amount to be abated by resolution, and did not include the library's tax levy. To date, the Village has not received any indication from the library of its levy amount. Mr. Horne noted the Administration Budget would have a new department - media/eommunications. This department would include funding for a bi- monthly Village wide newsletter, and professional services and operational expenses for Morton Grove TV. This budget includes an increased request for professional services of $50,000. Mr. Horne then reviewed the Motor Fuel Tax Fund which showed a decrease in total revenue tess expenses of $41,000. The difference would be paid through the fund balance in the MFT account. He then reviewed the. E91 i Fund which anticipated total revenues less expenses in the amount of $18,243. This fund includes surcharge fees received for telephone and wireless phones of $245,000. This fund will in part pay the Village's Emergency Dispatching costs, the balance will be paid through the Police Department Budget. Mr. Home then reviewed the Commuter Parking Fund. In 2013, the Village anticipates incurring costs for paving the municipal METRA lot. The fund shows a total revenue less /expenses of $96,000, which would be paid from its fund balance. A general discussion then ensued. Trustee Gomberg asked what interest rate the Village received on its TIF Funds. Finance Director Navarrete stated approximately .4 %. The Village works hard to find the best rates that are available. Mayor Staackmann asked whether the Village received interest on its bank accounts. Mr. Horne stated any interest received was used to offset banking costs. A general discussion again ensued on the budgeted personnel service cost in the media/communication department. Trustee DiMaria and Clerk Kalogerakos noted that $50,000 seems high for website development. Mr. Horne stated this amount included more than the website and would fund the cost for MGTV, and the newly anticipated and reformatted Village bi- monthly newsletter. There being no further business, Trustee DiMaria moved to adjourn the special meeting /budget workshop. The motion was seconded by Trustee Toth and approved animously PU rsuant to a voice vote at 6:47 PM. s Minutes