03/01/2007MINUTES
COMMITTEE OF THE WHOLE
March 1, 2007
The village board met in the conference room of the village hall at 2:00 p.m. on Thursday, March
1, 2007. In attendance were:
Village Board Staff
Robert Benton, Trustee Robert D. Franz, Village Manager
Michelle Feldman, Trustee Philip Kiraly, Asst. Village Manager
Harriet Rosenthal, Trustee Robert Fialkowski, Director of Finance
William Seiden, Trustee Barbara Little, Director of Public Works and Engineering
Barbara Struthers, Trustee Frank Cisek, WRF Superintendent
2007-08 BUDGET
Staff discussed with the village board the proposed budget for fiscal year 2007-08, emphasizing
that:
• It presents a financial plan for more than one year.
• There will be little change in basic operations, reflecting only inflationary adjustments.
• It proposes a very aggressive capital improvement plan for next year and beyond.
• Decisions must be made regarding improvements to the wastewater reclamation plant.
• It is time to consider the issuance of debt to fund infrastructure projects, along with a
funding source to service the debt.
Bob Fialkowski presented an overview of revenue projections and proposed expenditures. The
General Fund forecasts a 4% increase in revenue, including a slight increase in the property tax
levy and a 3% increase in sales tax. Expenditures show a budget to budget increase of 8% due to
overall personnel costs, health insurance increases and furnishings for the new village hall. A
deficit is projected in the General Fund for fiscal 2007-08, which would be made up from
reserves.
There was discussion regarding fund balances. Recommended is a transfer of $4 million from
the General Fund reserve to pay for capital projects. Staff stressed the point, and the board
agreed, that reducing reserves for capital projects is prudent, but using reserves to fund
operations is not.
Another water rate increase will be needed to offset a rate increase from Highland Park, which
will become effective on May 1st. A 2.5% increase ($3.20 to $3.28 per 100 cubic feet) is
proposed. Because cash reserves in this fund will be depleted, future capital costs will require an
alternative source of funding. It was also noted that an additional employee is requested for
water meter reading to meet the customer service demands of that operation.
The board discussed sewer revenues as they related to last year’s rate increase and, particularly,
the summer quarter. There were several complaints received then about its impact on those who
were heavy outside water users. Alternative means of billing for sanitary sewer service were
discussed, but the consensus was to make no adjustments to the current rate structure.
Several sewer projects are currently being designed and will be under construction in the next
fiscal year. As part of this budget, the board must decide the future of the treatment plant, which
has been under review and discussion since the Stanley Engineering report completed in
February 2005. After some discussion, it was agreed that staff should pursue costs to inspect the
abandoned transmission line on Lake Cook Road. It is owned by the North Shore Sanitary
District and could be used to pipe sanitary waste to Lake County’s Pekara Plant should the
village seek a regional approach to treating its sewage. The cost to acquire and renovate the line
must be added to Lake County’s connection fees to better evaluate this option. The overall
preference of the board, however, is to continue controlling this service and its operations at the
municipal level.
The board also acknowledged the need to make interim improvements at the treatment plant
while implementing the more long term improvements. It was noted that, in addition to keeping
the plant operating, there will be costs to assure the safety of sewer division employees working
there.
In reviewing the Capital Improvements Program, the board indicated its support for funding the
recommended projects as opposed to deferring them to spread out the costs. The water, sewer
and infrastructure replacement funds are approximately $10-$11 million short for the year. Even
with a transfer from reserves, bonds must be sold. Bob Fialkowski is recommending an issue of
$5.0 million in late summer of this year, to be serviced entirely with property taxes. The village
currently has no debt supported by real estate taxes.
There was brief discussion on alternative revenue sources, with the idea proffered of a real estate
transfer tax. Staff reminded the board that such a tax requires a referendum. The board asked
for more information on this and other funding alternatives.
It was noted that the budget includes several sidewalk improvements that were initiated by the
Walkability Task Force. While many of these include outside funding, there are substantial local
costs as well. Staff questioned the necessity for all of them and asked the board to review them
further.
The board agreed to schedule the next budget meeting after the March 19th regular meeting. If
that time does not work, those in attendance said they would be available to meet on Thursday
evening, March 22nd.
The meeting adjourned at 4:20 p.m.
Minutes prepared by:
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ROBERT D. FRANZ, Village Manager