02/02/2004MINUTES
COMMITTEE OF THE WHOLE
February 2, 2004
The village board met as a committee of the whole in the board room of the village hall at 9:32 p.m. on
Monday, February 2, 2004. In attendance were:
Village Board
Steven Harris, Mayor
Robert Benton, Trustee
Jerry Kayne, Trustee
Harriet Rosenthal, Trustee
William Seiden, Trustee
Vernon Swanson, Trustee
Matthew Wylie, Trustee
Auditor's Management Letter
Staff
Robert D. Franz, Village Manager
John Sliozis, Chief of Police
Barbara Little, Director of Public Works/Engineering
Robert Fialkowski, Director of Finance
Diane Mikula, Assistant to the Village Manager
Bob Fialkowski reviewed with the board the Recommendations for Improvement filed by Sikich
Gardner & Co. as part of the April 30, 2003 annual audit. Most of the issues raised have been
addressed. There were no questions from the board, but it was suggested that, in the future, the auditor
meet directly with the board to discuss the management letter.
Preliminary 2004-05 Budget
The board discussed the proposed budget calendar and agreed to schedule a separate meeting on the
budget at 7:30 p.m. on Monday, March Sth and that another meeting would be held after the March 15t'
board meeting.
Bob Fialkowski then gave a brief overview of the 04/05 budget with preliminary projections on
revenues and expenditures for the various funds. Revenues are expected to remain flat. _ However, the
revenue picture will be helped by the elimination of the property tax levy for the 2002 refinancing
issue and moving that levy to the general fund. Also proposed are modest increases in the overall levy
as described in the finance director's report distributed to the board as part of last December's tax levy.
The board was asked to consider implementing a new home rule sales tax at the rate of 0.25%. In
doing so, the village could eliminate the vehicle license fee ($30 per sticker) which would result in a
net increase to the general fund of approximately $275,000. Some board members expressed the
opinion that, if the sales tax was increased, it ought to be 0.50% so that there would be more revenue to
apply to much needed capital projects. It was noted that most every neighboring community has this
additional tax, which offers the added benefit of collecting revenue from non -Deerfield residents.
Rate increases are anticipated in both the water and sewer funds. Highland Park has confirmed that
our rate will increase on May 0 from $1.35 to $1.39 per 100 cubic ft. While it appears that the water
fund can handle a moderate level of capital improvements, the sewer fund cannot. This fund has a
stagnant revenue base and increasing operating and capital expenditures, primarily at the sewage
treatment plant. Staff continues to explore options, including the possibility of Deerfield connecting to
an existing regional sanitary district.
Committee of the Whole
February 2, 2004
Page 2
The capital budget is generally in good shape and will cover the improvements planned in the street
and streetscape areas for the near future. However, staff reminded the board that there are a number of
potentially expensive projects in the draft comprehensive plan for which there is no funding available.
There was no specific direction given to staff regarding the preparation of the proposed budget. It was
requested that public works attempt to quantify the impact of not having filled two maintenance
positions in the current budget.
The meeting adjourned at 10:12 p.m.
Minutes prepared by:
SAM
Robert D. Franz, Village Mana !--�