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COMMITTEE OF THE WHOLE – Minutes of Meeting
February 27, 2012
The Village Board met as a Committee of the Whole in the Council Chambers of the
Village Hall at 6:00 p.m. on Monday, February 27, 2012. In attendance were:
PRESENT:
Village Board Staff
Harriet Rosenthal, Mayor Kent Street, Village Manager
Robert Benton, Trustee Jenny Maltas, Assistant to the Village Manager
Mary Oppenheim, Trustee Bob Fialkowski, Finance Director
William Seiden, Trustee Eric Burk, Assistant Finance Director
Barbara Struthers, Trustee Barbara Little, Director of PW and Engineering
Thomas Jester, Trustee Bob Phillips, Assistant Village Engineer
Alan Farkas, Trustee Dan Busscher, Superintendent of Street and Utilities
John Sliozis, Police Chief
Rick Wilk, Deputy Police Chief
Thomas Keane, Deputy Police Chief
Clint Case, Building and Code Enforcement Sup.
Peter Coblentz, Village Attorney
Matt Weiss, Computer Systems Coordinator
Andrew Lichterman, Management Analyst
Public Comment
There was no public comment.
Review of Proposed Fiscal Year 2012-13 Budget
Mayor Rosenthal encouraged Village officials and staff to consider transitioning to a
calendar year budget in the near future. She noted the calendar year budget will be less
confusing to the public, many surrounding communities have already made the transition
and she advised leaving the logistics of the transition for staff to figure out. Attorney
Coblentz noted the Village has home-rule authority and is able to make the changes.
Trustee Seiden expressed his concern over the property tax levy increase that has accrued
over the past few years. He noted the Village has a responsibility to keep the tax levy
low and suggested keeping the marginal increase on the General Fund levy to less than
5% of the tax levy from two years ago.
Finance Director Fialkowski presented highlights from the proposed FY 2012-13 Budget.
He noted General Fund revenues project a 4% increase in the property tax levy, no
increase in base sales tax, slight increase in home-rule sales tax, 6% increase in
hotel/motel tax, no increase in telecommunications tax and a 5% increase in building
permit fees. He noted the projected numbers for the income tax, motor fuel tax and use-
tax are from the Illinois Municipal League. The water and sewer utility funds currently
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show a 2.5% increase in the rate but he noted these funds are struggling and have a
negative cash balance. There will be a discussion later on the various scenarios put
together that would address the issue these funds.
Trustee Jester asked why there has been a reduction in water consumption. Mr.
Fialkowski pointed out it is a combination of low-flow efficiency devices, a change in
economic behavior and a result of the weather.
Trustee Farkas acknowledged the Village is carrying over a $4 million fund balance in
the Vehicle Equipment Replacement Fund (VERF) and questioned if a transfer should be
made out of this fund. Mr. Fialkowski noted we are contributing less to this fund each
year, as the Village is extending the life of the equipment. He noted transferring money
out of the VERF may not be viewed as a good financial practice by the rating agencies.
Mr. Fialkowski noted that if the $4 million is close to the value of our equipment, taking
money away from the fund would not be a best practice. Mayor Rosenthal asked Mr.
Fialkowski to prepare an analysis on the fund to compare the value of the equipment and
the fund balance as well as to show the impact of spending down the fund.
Mr. Fialkowski presented three exhibits to address the water/sewer fund deficits. He
noted Exhibit A is the status quo approach, Exhibit B combines the two funds and results
in the water fund subsidizing the sewer fund. Mr. Fialkowski recommended Exhibit C,
which proposes a sewer user charge increase over the next three years (10%, 5%, 5%).
This would result in an increase of about $22.00 to the average user during the first year
over continuing the recent practice of 2.5% annual increases. The Board considered
Exhibit C the most prudent alternative as it addressed the structural problem in the funds.
Trustee Oppenheim asked about the Deerfield Road overpass/underpass maintenance
costs. Director of Public Works, Barbara Little noted the overpass requires periodic sand
blasting and the underpass will need some maintenance each year. Mr. Fialkowski noted
the bulk of the budgeted amount is related to overpass maintenance.
Trustee Jester asked about the projected salary and wage increases for personnel. Mr.
Fialkowski noted the Public Works contract stipulates and 3% increase. The Police
contract specifies a 2.5% increase as they negotiated the 3% increase last year – so the
end result of the contract is that the Public Works and Police Union end the FY2012-
2013 with the same increase. To match the union contracts, all other non-union
employees are projected at a 3% increase.
Assistant to the Village Manager, Jenny Maltas described a five year strategy for
Information Technology. She reported the current budget contains items related to
training and Microsoft upgrades. She noted the long term goal is to switch from Lotus
Notes to Microsoft Exchange, which will better integrate with the Munis financial
system. Nearly $50,000 is budgeted for in FY 2012-13 fiscal to upgrade to the new
version of Microsoft Office and to train personnel on the changes. Larger expenses will
be required in three years to replace network equipment and to create a backup
connection at Public Works for disaster recovery.
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Ms. Maltas noted the Village is conservative in their approach when replacing IT
equipment and only recommend replacement when equipment is no longer supported and
if the equipment broke down it would cause a significant impact on operations or if the
equipment is no longer functions appropriately for what it needs to do. She reported this
is the exactly the case with the Trustee’s laptops, as the manufacturer is out of business
and replacement parts are very difficult to find. She noted $1,500 is budgeted this year,
per laptop for replacement this year. She noted iPads or other tablets are also an option
and are cheaper than laptops, but the budget reflects a replacement of laptops. Trustee
Struthers noted the importance of having a Village computer to keep Village materials
separate from personal information. Trustee Jester suggested the Computer Systems
Coordinator, Matt Weiss, consult with each Trustee individually to better determine the
needs of the group. Ms. Maltas advised that whichever option is decided it needs to be
consistent and used by all Trustees. Mayor Rosenthal indicated that she does not want to
have laptops replaced unless it is absolutely necessary. Trustee Oppenheim stated
laptops are not a perk for Village Trustees but rather the most economical and efficient
way to conduct business.
Assistant Finance Director Eric Burk described the proposed Fund Balance Policy. He
reported the Village is required to adopt guidelines by which the Village will classify
fund balance in its Comprehensive Annual Financial Report (CARF) in order to comply
with the Government Accounting Standards Board (GASB) Statement No. 54. He noted
the five categories described in GASB Statement No. 54 and their definitions. The five
categories are:
Non-Spendable Fund Balance
Restricted Fund Balance
Committed Fund Balance
Assigned Fund Balance
Unassigned Fund Balance.
Mr. Burk reported that the proposed policy states that the fund balance of operating funds
should not be below 40%, General Fund should not be below 30% and cash investments,
parking funds and 911 funds shall have at least 25% fund balance. He noted the Board
would need to formally adopt this policy during a regular meeting.
Trustee Farkas requested to see the Village’s past fund balance trends and history.
Trustee Seiden was interested in fund balance policies adopted by other municipalities.
Village Manager Street gave examples of how different Village revenue streams and
financial stability is part of determining the appropriate fund balance policy for a
community.
Trustee Oppenheim complimented staff on preparing a detailed budget document in a
user-friendly format and that she appreciated the additional detail presented in this year’s
budget.
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Review of Capital Improvement Plan
Ms. Little summarized a 5 year plan for transportation and infrastructure projects as well
as a 5 year plan for sewer and water projects.
Ms Little noted Cook County Highway Department is scheduled to conduct roadway
improvements on the eastern portion of Lake Cook Road in 2013 and the Village has
postponed improvements to Deerfield Road to avoid having two east-west arterial streets
under construction at the same time. Deerfield Road will likely undergo roadway
improvements in 2014.
Mr. Phillips presented three options to the Board illustrating the project scope and cost
breakdown for reconstruction/rehabilitation of Deerfield Road and also contemplates the
option of a Jurisdictional Transfer (JT) of Deerfield Road from the Village to Lake
County. The first option is for a 70/30 funding split for a patching and resurfacing project
with no JT. The second option is for a full reconstruction project paid for by the County
if the Village commits to a JT. The third option is also a full reconstruction project but
funded entirely by the Village and without a JT.
Trustee Jester inquired about the breakdown of the funding and requested to see the
specifics. Mr. Street responded staff will present a revised document specifically
outlining the funding from Federal, County and Village governments for both the
Deerfield Road and Pfinsgsten Road improvements projects following receipt of a
Memorandum of Understanding regarding the JT from Lake County.
Fee Schedule Discussion
Management Analyst Andrew Lichterman presented a proposed fee and fine schedule. He
noted having a centralized fee schedule will increase transparency and staff efficiency
and allow for annual review. The fee schedule would be codified and referenced
throughout the Municipal Code.
Mr. Lichterman highlighted a proposed change to charge a flat $0.55 per square foot for
new single- family and two-family residential building permits in lieu of the current
complex fee based on construction materials and level of construction. Code Enforcement
Supervisor Clint Case noted the $0.55 flat fee would also be inclusive of the plumbing,
heating and electrical inspections.
Mr. Lichterman presented a proposed construction impact fee of 0.5% of the estimated
cost of construction for consideration. The revenue from this impact fee would be placed
in the Infrastructure Replacement Fund and help mitigate the impact of construction on
the Village’s infrastructure. When residents or businesses obtain a building permit, the
result of the construction is additional trips of trucks, vans, etc. on the Village’s roads and
this impacts the life span of the village’s roads. Mr. Lichterman noted even with the
additional impact fee the Village’s building permit fees would be very competitive with
surrounding municipalities, and in most cases lower than surrounding municipalities.
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Trustee Farkas noted the proposed fee schedule and streamlined changes are advisable
and would like to find more opportunities to increase efficiencies.
Mayor Rosenthal noted the impact fee is strongly justified and appropriate to offset the
additional demand construction activity puts on Village roadways and there was general
consensus from the Village Board to move forward. Mayor Rosenthal asked why there is
a waiver for seniors for projects up to $10,000. Mr. Case reported that this is something
that has been in the code for a long-time. The Village Board agreed that this waiver did
not make sense and should be eliminated from the code in the future.
Ms. Maltas reported staff will work with the Village Attorney Coblentz to prepare an
ordinance implementing the fee/fine schedule for presentation at an upcoming Board
meeting.
Adjournment
Trustee Oppenheim made a motion to adjourn. The motion was seconded by Trustee
Benton.
The meeting adjourned at 9:05 p.m.
Respectfully submitted,
Andrew S. Lichterman
Management Analyst