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03/17/2008Approved 3-17-08 COW Page 1 of 2 MINUTES COMMITTEE OF THE WHOLE March 17, 2008 The Village Board met in the community conference room of the Village Hall at 5:45 p.m. on Monday, March 17, 2008. In attendance were: Village Board Staff Steven Harris, Mayor Kent Street, Village Manager Robert Benton, Trustee Phil Kiraly, Assistant Village Manager Michelle Feldman, Trustee Robert Fialkowski, Director of Finance Thomas Jester, Trustee John Sliozis, Chief of Police Harriet Rosenthal, Trustee Barbara Little, Director of Public Works and Engineering William Seiden, Trustee Clint Case, Code Enforcement Supervisor Barbara Struthers, Trustee Eric Burk, Assistant Finance Director Jim Bernahl, Assistant Village Engineer Brad Fink, Assistant Director of Public Works 2008-09 BUDGET Mayor Harris noted that this meeting was intended to give staff the opportunity to describe its preparation of the preliminary 08-09 budget and board discussion of specific items would be held at subsequent meetings prior to budget presentation at the public hearing. Mr. Street reviewed the direction given to the staff for modest increases and limited personnel changes. Revenues will be further reviewed by Finance Director Fialkowski and each Department’s staff is available to discuss proposed expenses. Major capital issues to address in 08-09 include: the WRF design and pumping station replacements; Street rehabilitation program and the use of MFT funds; Comprehensive infrastructure repair and replacement areas; and Village Center aesthetic/character upgrades. Items not specifically addressed in the budget, but likely to be 08-09 work matters include: NW Quadrant redevelopment, Baxter annexation, workforce/affordable housing, sustainability and environmentally sensitive policies, as well as ComEd improvements. In addition to this meeting, budget discussion is scheduled for March 24th with the budget public hearing on April 7th and final approval of the budget and pay plan April 21st. Director Fialkowski reviewed his February 28, 2008 report with the Board. General Fund revenues, given the slowing economy, are proposed to increase 1.5% on a budget to budget basis. Operating expenses are proposed to increase by 6.5% and the only request for additional staff is a part time clerk in the Community Development Department. Overall, total expenses are proposed to decrease 8% from the 07-08 budget. He reviewed personnel cost increases due to collective bargaining and market rate adjustments to salaries and health insurance costs, increased economic incentive costs for Walgreens, added maintenance service costs for the Village Hall and several items in the Street Division, from Snow and Ice Control to capital projects. The Police Department budget is proposed to increase 3.3%. This year, no transfer from the General Fund fund balance to the Infrastructure fund is proposed. Water and Sewer Approved 3-17-08 COW Page 2 of 2 Fund Rate increases are being proposed to off-set increasing operational costs. Several major capital projects were highlighted. He anticipates the Village issuing $5 million in bonds for capital improvements and the general fund will also receive the final reimbursement from the downtown TIF District prior to district closure in December of 2008. Director Fialkowski highlighted major budget issues including: deciding on a course of action and funding mechanism for the WRF and the Sewer Fund; Capital project funding in the Infrastructure Replacement Fund and Water Fund; the 2008 property tax levy and the growing discrepancy between stagnant revenues and increasing expenditures in the General Fund while fund balances continue to shrink. Given the minimal fund balances in the other funds, the General Fund balance projected for the end of FY 2009 is just over 30% of combined annual operating expenses and that is the minimum recommended. Mr. Kiraly summarized proposed budget items for the Administrative Department. Mr. Case summarized proposed budget items for the Community Development Department. In response to a question from Trustee Struthers, he expressed his view that given his experience level and that of Mr. Ryckaert, both Building and Planning Divisions could continue to operate well without filling the Director of Community Development position. Chief Sliozis summarized proposed budget items for the Police Department. Director Little summarized proposed budget items for the Public Works and Engineering Departments. The meeting adjourned at 7:15 p.m. following unanimous approval of the motion to adjourn made by Trustee Benton and a second by Trustee Jester. Minutes prepared by: _________________________________________ KENT S. STREET, Village Manager