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03/14/2011 Page 1 of 3 COMMITTEE OF THE WHOLE – Minutes of Meeting March 14, 2011 The Village Board met as a Committee of the Whole in the Board Room of the Village Hall at 5:30 p.m. on Monday, March 14, 2011. In attendance were: Village Board Staff Harriet Rosenthal, Mayor Kent Street, Village Manager Robert Benton, Trustee Robert Fialkowski, Director of Finance Alan Farkas, Trustee John Sliozis, Police Chief Thomas Jester, Trustee Jenny Maltas, Asst. to the Village Manager Mary Oppenheim, Trustee Clint Case, Code Enforcement Supervisor William Seiden, Trustee Tom Keane, Deputy Police Chief Barbara Struthers, Trustee Rick Wilk, Deputy Police Chief Brad Fink, Asst. Director of Public Works Frank Cisek, Wastewater Superintendent Dan Busscher, Supt. of Streets & Utilities Bob Phillips, Assistant Village Engineer Jeff Ryckaert, Principal Planner Eric Burk, Assistant Finance Director Also present: DBR Chamber of Commerce Village Center Development Commission David Levitz, Chairman Janice Shaw, VCDC Member Martin Friedman, Treasurer Joan Reed, VCDC Member Victoria Case, Executive Director Lake County Convention and Visitors Bureau Maureen Reidy, President Michelle Feldman, Lake County Board Member Marty Rothchild, General Manager, Hyatt Deerfield Michael McGuigan, General Manager, Marriott Suites Deerfield Review and Discussion of Tentative Annual Budget for 2011-2012 Bob Phillips presented the different capital improvement budget scenarios. Mr. Phillips explained the main difference between the priority list of capital projects in Scenario A and the budget reductions in Scenario B are largely related to the Street Rehab Project. Scenario C achieves further budget reductions by eliminating any projects that are not currently under contract or that have not secured outside funding. Mr. Phillips provided a brief summary of the projects that would be deferred under Scenario B and C. Trustee Jester commented that the WRF is being designed to accommodate sanitary inflow and infiltration (I&I) levels and planning to meet these levels should be included in the budget going forward. A majority of the Village Board agreed. Mr. Fialkowski explained that under Scenario A the Village would need to issue debt up to $5 million. Under Scenario B the Village would not have to borrow, as it could transfer 3-14-11 COW Page 2 of 3 money from the General Fund reserves to the Infrastructure Replacement Fund with the caveat that the Village would not be unable to abate portions of the 2011 property taxes. Trustee Farkas asked about the benefits associated with borrowing $5 million rather than using $2 million in reserves and borrowing the remainder that would be necessary to fund Scenario A. Mr. Fialkowski explained that the initial cost to issue debt is expensive regardless of the size and it is less attractive to issue small amounts of debt annually to buyers. Mr. Fialkowski did note however, that a smaller amount ($ 2 million) could be bonded effectively if the issue was combined with the library’s upcoming issue. Timing would dictate whether this would be possible. Mayor Rosenthal mentioned that the Village did not regularly borrow to fund capital projects until two years ago, and thought it would be a short-term solution. Trustee Seiden echoed Mayor Rosenthal’s concerns and thought it would be justifiable to defer the Street Rehab Project until next year. Mayor Rosenthal noted several guests were present to review funding requests for the 2011-12 budget and further discussion will take place after the presentations. Presentation by the DBR Chamber of Commerce Chairman Levitz provided a summary of a proposal from the Chamber requesting funding from the Village in the amount of $28,000. Chairman Levitz explained that the role of the Chamber has evolved over the years as they are now providing more services than ever before but are also receiving less membership dues revenue. The purpose of the funding request is to allow the Chamber to keep its current service levels and not to hire new personnel. Mr. Friedman explained the Chamber has attempted to reduce costs as much as possible without eliminating necessary services. Ms. Case noted that two years ago the Chamber requested $26,000 but $15,000 went directly to the Lake County Visitor Bureau and $6,000 was used for the Shopping and Dining Guide. The Board noted the importance of retaining businesses and the value the Village finds in supporting the Chamber for its many services. Mayor Rosenthal acknowledged the importance of the shop local campaign and the Chamber’s support for many local initiatives, including the North Suburban Career Center. The representatives of the DBR Chamber of Commerce excused themselves from the meeting. Presentation by the Village Center Development Commission Ms. Shaw presented the VCDC’s request to provide the first twenty businesses that signed up for the planter program this year with a financial incentive. The total request for support is $1,000, limited to $50 per business. Trustee Oppenheim expressed that it is in our best interest to encourage businesses to purchase the planters as it will give the Village a uniform look and a good value was provided by coordinating with Moore Landscaping’s work for the Village. The Board was in support of the VCDC request and 3-14-11 COW Page 3 of 3 agreed to provide funding. The Board encouraged the VCDC to disseminate information about the program immediately. The VCDC members excused themselves from the meeting. Presentation by the Lake County Convention and Visitor Bureau President Reidy presented the LCCVB’s proposal of support from the Village in the amount of $15,000 and informed the Village that LCCVB recently received $626,000 from a State grant that requires matching funds from member communities. President Reidy explained the mission of the LCCVB is to fill hotel rooms and Deerfield has great hotels. President Reidy presented statistics highlighting the success of LCCVB and the economic impact they have had on hotels in Deerfield in past years. Mr. McGuigan advocated for LCCVB, highlighting the fact that LCCVB has helped the Marriot Suites to fill hotel rooms on weekends by attracting attendees of military reunions and sporting tournaments. Mr. Rothchild commented that there is a need to market aggressively as other regions do, generating leads and capturing the potential room night and other resulting revenue. Ms. Feldman reported that Deerfield hotels account for a significant percent of the total hotel economic impact in Lake County as it generated over $1.3 million of the total $2.7 million generated in 2010. The LCCVB representatives excused themselves from the meeting. After a discussion, the Board agreed to support the proposals presented by the DBR Chamber of Commerce and Lake County Convention and Visitors Bureau in the 2011-12 Budget. Return to Discussion of Over-all Budget for 2011-12 A majority of Village Board members felt that it would not be in the Village’s best interest long-term to defer capital projects to next year and felt that the projects in Scenario A were important to pursue. After further discussion, a majority of the Board was in favor of moving forward with the capital projects under Scenario A, with the understanding the Village would borrow up to $4 million and preserve the Village’s General Fund reserves. Mayor Rosenthal expressed concern for the cumulative impact on the property tax levy of the debt service requirements. It was also agreed that the document management system originally proposed be removed and reconsidered in the future. At 7:30 PM, the motion to adjourn was approved unanimously, following a motion by Trustee Farkas and a second by Trustee Oppenheim. Respectfully submitted, Andrew S. Lichterman, Administrative Intern