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10/16/2013COMMITTEE OF THE WHOLE – Minutes of Meeting October 16, 2013 The Village Board met as a Committee of the Whole in the Council Chambers of the Village Hall at 3:00 p.m. on Wednesday, October 16, 2013. In attendance were: PRESENT: Village Board Staff Harriet Rosenthal, Mayor Kent Street, Village Manager Robert Benton, Trustee Andrew Lichterman, Asst. to the Village Manager Thomas Jester, Trustee David Fitzgerald, Management Analyst Robert Nadler, Trustee Barbara Little, Director of PW and Engineering William Seiden, Trustee Robert Phillips, Assistant Village Engineer Barbara Struthers, Trustee Eric Burk, Finance Director John Sliozis, Police Chief Matthew Weiss, Computer Systems Coordinator Robert Phillips, Asst. Director of PW and Eng. Eric Oscarson, Asst. to the Director of PW Clint Case, Bld. and Code Enforcement Supervisor Jeffery Ryckaert, Principal Planner ABSENT: Alan Farkas, Trustee Public Comment None FY 2014 Budget Overview Trustee Seiden noted that he was very impressed with the budget and the smooth transition of the shortened fiscal year. He asked Finance Director Burk to clarify the fiscal year change affects the tax levy. Director Burk reported he just received notice that the FY 2013A budget won the GFOA Award. He noted that the tax levy passed in November 2013 will be collected in 2014 and will also fund that fiscal year. This will align cash flow, revenue recognition and accounting. He provided an overview of the FY 2014 budget and highlighted the changes to the Capital Improvement Plan due to the postponement of Deerfield Road. Director Burk stated the 2013 proposed tax levy includes a 4%, or $84,560 increase for the general fund and a 2.5%, or $22,640, increase for the refuse fund to keep pace with contractual increases and personnel costs. It also includes abatements for all non- treatment plant related debt and for Federal Government rebates for Build American Bonds and Qualified Energy Conservation Bonds. He presented an abatement analysis. Trustee Struthers inquired what would happen if these items were not abated. Director Burk noted an additional $831,850 would be placed on the property tax levy without an abatement. Director Burk reported the general fund is projected to end FY 2013A with a $1.4 million reduction in fund balance. This is significantly better than the $2.8 million dollar Page 3 C.O.W - October 16, 2013 reduction that was originally budgeted. The difference is due to approximately $250,000 more in projected income and approximately $1,150,000 less in projected expenditures than originally budgeted. Excluding the planned abatements, the general fund shows an operating surplus of $84,688. Director Burk reported the proposed budget includes a 2.5% increase in both water and sewer user rates. He reported that staff met with representatives of Highland Park and that Highland Park staff is recommending a 2.5 percent increase in the wholesale rate. Manager Street reported the Highland Park Water Treatment Plant upgrades are on schedule. Mayor Rosenthal inquired when the Highland Park figures would be finalized. Manager Street stated that Highland Park is on a similar budget time table as Deerfield and is expected to be approved by their City Council at an upcoming meeting. Director Burk noted that the sewer fund is experiencing the reduction of one employee due to efficiencies realized with the new plant. He reported that the Refuse Fund includes a 2.5% increase in the user rate to offset the waste hauler’s increase and personnel costs of leaf collection. Mayor Rosenthal inquired if the electricity tax revenues were projected to be lower due to the electric aggregation program. Director Burk stated that the tax is based on number of kilowatt hours used and not the total bill amount so there should be no affect. Trustee Nadler noted that he was pleased that permit fees for the AMLI and Woodview apartment buildings were not included like other revenues due to their one-time nature. He inquired what the permits will total. Manager Street noted that each building will experience about $500,000 in permit fees. Director Burk then discussed the infrastructure replacement fund and the capital improvement program (CIP). He noted that funding will need to be discussed due to the delay in the Deerfield Road project and the changes to the proposed CIP. He noted that borrowing may be required in 2015 or 2016 to maintain the proposed level of projects. He stated that he wanted to gauge the Board’s comfort level with increasing the levy to fund capital projects. Trustee Jester stated that he would prefer to reallocate the levy to more clearly show what portion goes to infrastructure instead of transferring money from the general fund into the infrastructure fund every year. He noted that his proposal would clarify to residents how their property tax dollars were being spent. Trustee Benton inquired if Trustee Jester’s proposal would impact the Village’s bond rating. Manager Street noted that ratings agencies may frown on frequently transferring money between funds without a strategy in place. Mayor Rosenthal asked that staff put together a list of pros and cons regarding Trustee Jester’s proposal. Mayor Rosenthal inquired about staff’s proposed CIP, noting that the levy increased by 15% last year and that a 4% increase this year is too high. Trustee Struthers stated she wants the levy to be lower without requiring borrowing and without hurting Page 4 C.O.W - October 16, 2013 infrastructure. Mayor Rosenthal asked that staff develop a proposal with a levy increase of no more than 3%. Operations Manager Street noted that the proposed budget includes a 1.5 % cost of living adjustment for staff. He stated that contracts will need to be negotiated with the police and public works unions, as they expire on April 30, 2014. Manager Street requested that Chief Sliozis review the proposed Police Department budget. Police Department Chief Sliozis provided a review of the proposed FY 2014 budget for the Police Department. He noted that the department is not proposing any major changes for the year. He reported that the department has one additional officer due to the new school resource officer at Deerfield High School. He noted that 75% of this position is funded through the high school. He also reported that the department started providing dispatch services for the Village of Riverwoods, which accounts for the increase in budgeted revenues. Trustee Struthers asked if the new police vehicles are in service. Chief Sliozis stated that they are in, but are awaiting the installation of equipment. Community Development Building and Code Enforcement Supervisor Case provided a review of the proposed FY 2014 budget for the Community Development Department. Mayor Rosenthal inquired about the increase in contractual services. Mr. Case noted that this will not impact the budget, as fees for the services will pay for the increase in expenses and that the Village serves as a pass through for these services. He reported that the department continues to support itself with permit fees. He noted that 20 homes are currently under construction and that 12 more are awaiting review. Mr. Case presented a personnel request to increase a part-time administrative assistant position to full time. He noted that the department has enough work to keep two full-time administrative assistants busy. Principal Planner Ryckaert noted that the staff will be hit especially hard with the AMIL and Woodview developments breaking ground soon. Mayor Rosenthal inquired if hiring a second part-time position would be cheaper. Mr. Case noted that there would be a learning curve for a new hire and the current secretary has a demonstrated aptitude. Trustee Struthers noted that a full-time employee could get more done than two part-time employees. Manager Street stated that staff would perform a cost/benefit analysis. Public Works Director Little provided a review of the proposed FY 2014 budget for the Department of Public Works and Engineering. She highlighted the cost of removing and replacing trees due to the Emerald Ash Borer. $35,000 is budgeted for tree replacement in the proposed budget. Trustee Nadler inquired about the percentage of trees replaced currently. Assistant Oscarson noted that about 75 % of the trees removed have been replaced. Director Little estimated that staff would require another three years to deal with EAB infestation in the community. Page 5 C.O.W - October 16, 2013 Director Little noted that the Engineering Division has budgeted about $100,000 for professional services related to the AMIL and Woodview projects, but noted that those costs would be reimbursed by the developers. Mayor Rosenthal inquired about the inventory control recommendations from the Village’s auditors. Director Little reported that a time clock system is being implemented that uses a hand scan feature. She also reported that staff is working on an inventory management module in the Munis system. Both of these items were included in the previous budget cycle. Deerfield Road Director Little reported that the Deerfield Road project is being pushed back by one year because of delays with right of way acquisition, which is required for federal grant funding. She noted that postponing the project until 2015 will allow for the water main work, roadway work and sidewalk project to all be completed under one contract in the same season. She noted that all grant funding will remain available in 2015. Trustee Struthers inquired if the change would result in fewer lane reductions. Director Little noted the project would be much smoother. Trustee Jester asked if staff was also going to delay discussions with Lake County regarding a jurisdictional transfer of the road. Manager Street stated that he is still working with the Lake County on a memorandum of understanding and hopes to have it completed shortly. Manager Street also clarified that the jurisdictional transfer will be only for the portion of Deerfield Road from the Metra underpass to the eastern Village limit. The western portion of Deerfield Road will be defined as a “municipal extension of a County highway” without any jurisdictional transfer because no capital improvements will be completed on this portion of the roadway. Director Little noted that right of way acquisitions are still required for portions of the accompanying sidewalk project. Director Little proceeded to review the leaf pick-up costs in the refuse fund and commuter parking lot funds. Trustees Struthers and Jester both noted that Waste Management provides superior service to residents. Adjournment Manager Street noted that the next Committee of the Whole will be on Monday, Oct 28 and staff will be prepared to discuss Finance, Administration and the Capital Improvement Program. Trustee Nadler made a motion to adjourn. The motion was seconded by Trustee Jester. The meeting adjourned at 5:03 p.m. Respectfully Submitted, David Fitzgerald, Management Analyst