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