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09/24/2015C.O.W – September 24, 2015 COMMITTEE OF THE WHOLE – Minutes of Meeting September 24, 2015 The Village Board met as a Committee of the Whole in the Council Chambers of the Village Hall at 3:00 p.m. on Thursday, September 24, 2015. In attendance were: Village Board Staff Harriet Rosenthal, Mayor Kent Street, Village Manager Thomas Jester, Trustee Andrew Lichterman, Asst. to the Village Manager Robert Nadler, Trustee Barbara Little, Director of Public Works and Engineering William Seiden, Trustee Eric Burk, Finance Director Barbara Struthers, Trustee David Fitzgerald, Management Analyst Robert Phillips, Asst. Director of Public Works and Eng. Justin Keenan, Public Works Analyst John Sliozis, Police Chief Tom Keane, Deputy Police Chief Clint Case, Code Enforcement Supervisor Jeff Hansen, Asst. Code Enforcement Supervisor Public Comment None 2016 Budget Overview Finance Director Burk provided an outline of the budget preparation. He noted that a copy of the proposed budget is available at the Village Hall for review and inspection by the public. A Public Hearing for the 2016 budget is scheduled for November 2. Mr. Burk reported that the proposed property tax levy of approximately $7.5 million would be used entirely to fund capital projects and the scavenger fund. Mayor Rosenthal stated that no funding source is safe due to the budget impasse in Springfield. Mayor Rosenthal asked about the possible property tax freeze that is being discussed in Springfield. Mr. Burk noted that the proposal would freeze the 2016 rates, which would start to impact local governments in 2017 and 2018. Mayor Rosenthal stated that she had heard that there may be exemptions in the property tax freeze for debt service and public safety. She suggested moving the infrastructure fund levy into the general fund to provide more options to the Village should a property tax freeze be enacted. Trustee Struthers noted that this was the practice in the past and she would prefer to have more flexibility in the future. The Board concurred and requested that the non-debt-service portions of the property tax levy be moved to the general fund for public safety purposes and then transfers be made to the infrastructure fund and scavenger fund. Mayor Rosenthal noted that a clearer picture of what the State may do should come in January. C.O.W – September 24, 2015 Mayor Rosenthal noted that the Northwest Municipal Conference has indicated that Motor Fuel Tax funds and 9-1-1 funds may also both be swept by the State and not remitted to local governments. Mr. Burk reported that the sewer fund is recovering from its previous negative balance due to efficiencies at the treatment plant and a reduction in treatment plant personnel from two years ago. He noted that sewer rates are proposed to increase by 2.5 percent in 2016. He noted that the water fund still has a large negative balance. Manager Street noted that wholesale water rates from the City of Highland Park will be known next week, but early indications are to expect a 5 percent wholesale increase. The Village is proposing a 4 percent increase to offset the increased wholesale rate and reduce the negative balance in the fund. Trustee Jester inquired about the significance of the negative fund balance and asked why the sewer fund shows debt service. Mr. Burk noted that the audit requires the debt service to be listed in the sewer fund. He clarified that the sewer rate covers sewer operating costs and that property taxes cover the WRF debt service. Trustee Jester noted that he was pleased to see that the Village is projecting a $25 million increase in the equalized assessed value of property in the Village. He stated it was nice to see the EAV growing again and in such a significant amount. Mr. Burk reported that there is no proposed increase in the refuse rates this year, as the Village negotiated a rate freeze with Waste Management this year. Capital Projects Mr. Burk noted the proposed 2016 and 2017 capital projects are consistent with the $10 million bond issuance that was approved as part of last year’s budget. The Village will need more money if the number of capital projects is increased. Assistant Director of Public Works and Engineering Phillips provided an overview of capital projects proposed in 2016, including street rehabilitation, the Deerfield Road reconstruction project and other projects totaling $6.6 million from the infrastructure replacement fund. Manager Street noted that the North Avenue project with Bannockburn would be the easiest project to push back depending on what happens with State funding. Mr. Philips also reviewed capital projects for the Water Reclamation Facility and water and sanitary sewer system, including a mandate from the Illinois Environmental Protection Agency that will reduce the amount of phosphorous that can be released from the facility. Trustee Jester stated this would only be a trivial reduction in the amount of phosphorous, but would come at a significant cost in capital and operating expenses. Other projects include water pump repairs, sewer lining and energy efficiency upgrades. The Board was favorable to moving forward with capital projects in 2016 as presented in the three-year capital plan. Trustee Struthers excused herself from the meeting at 4:13 p.m. Police Department C.O.W – September 24, 2015 Police Chief Sliozis provided a review of the Police Department’s proposed 2016 budget, which reflected an overall increase of 0.27 percent. Mayor Rosenthal asked when overtime will start to go down. Chief Sliozis stated that the Department will be fully staffed shortly, which will cut down on the amount of overtime. Chief Sliozis noted that new State regulations regarding 9-1-1 and dispatch may require consolidation and may impact funding. He noted the Village would appeal any consolidation decision. He noted that Department morale was good and that they are holding a sergeant test next month. He noted department budget includes the promotion of commanders and a deputy chief to fill out the approved structure. Trustee Nadler joined the meeting at 4:24 p.m. Community Development Code Enforcement Supervisor Case provided an overview of the Community Development Department’s proposed 2016 budget, which reflected an overall increase of 1.15 percent. Mayor Rosenthal inquired about the turn-around time for permits. Assistant Code Enforcement Officer Hansen stated it is three weeks if the contractor follows through. Trustee Nadler inquired if any building fees were proposed to be raised. Mr. Case noted that the fees are comparable to neighboring municipalities and that no changes are proposed at this time. He noted that a comprehensive review of the fee schedule was conducted three years ago. Manager Street noted that some fees are based on the value of the construction, so as construction prices rise, revenues increase. Administration Assistant Lichterman provided an overview of the proposed budget for Administration, which reflected an overall increase of 5.4 percent. He noted that the budget was up by about $84,000 due to three big projects: $30,000 for upgrades to the Board Room AV equipment, $45,000 for a new Village website including enhanced communication tools, and $10,000 in funds to promote downtown businesses during the Deerfield Road reconstruction. Mayor Rosenthal noted that Village’s taxi subsidy program is becoming more expensive. She noted that the program is very important to some disabled and senior residents. She asked that those who can afford to get around without the subsidy to do so to keep the program affordable for those who rely on it. She would like to prohibit use of taxi coupons on rides to or from O’Hare Airport. She noted the program is intended to help people, not be a personal chauffer. Manager Street noted that additional information on the taxi subsidy program will be provided at the next COW meeting. Mayor Rosenthal questioned if the Village receives any value from its membership in the Lake County Municipal League. Mayor Rosenthal thanked staff for their preparation of the budget. The next budget COW meeting is scheduled for Monday, Oct. 5, immediately following the regularly scheduled Board meeting. Trustee Seiden made a motion to adjourn. Trustee Nadler seconded the motion. C.O.W – September 24, 2015 The meeting adjourned at 5:09 p.m. Respectfully submitted, David Fitzgerald, Management Analyst