02/27/2006MINUTES
COMMITTEE OF THE WHOLE
February 27, 2006
The village board met at 7:00 p.m. in the conference room of the village hall on
Monday, February 27, 2006.
Village Board Staff
Steven Harris, Mayor Robert D. Franz, Village Manager
Michelle Feldman, Trustee Robert Fialkowski, Finance Director
Harriet Rosenthal, Trustee Philip Kiraly, Asst. to the Village Manager
William Seiden, Trustee Barbara Little, Director of Public Works and
Barbara Struthers, Trustee Engineering
Matthew Wylie, Trustee John Sliozis, Chief of Police
1. Community Relations’ Request – Acts of Kindness
Chairman Jerry Witkovsky and members of the Community Relations Commission
were present to request funding for their proposed Acts of Kindness program. They
want to retain the services of a marketing professional to promote and coordinate
activities relating to the program. The commission estimates $15,000 to fund the
coordinator and other administrative expenses for the first year of program
implementation.
The board discussed the proposal and asked questions concerning it, including
whether private corporations could help finance it. Chairman Witkovsky responded
that the commission will not involve itself in soliciting outside funds for the project.
At the urging of Mayor Harris, the board indicated its willingness to finance the
program. Formal action on a contract for professional services will occur at a future
board meeting.
2. Request to Purchase ROW – Fradin, 2579 Woodvale
Scott Fradin, 1579 Woodvale, was in attendance to follow up on his written request to
purchase right-of-way north of his property in order to reorient the front of his home
to face west rather than north. The legal aspects of vacating ROW were discussed
with the board. The 100’ of ROW was acquired years ago from the properties on
each side for the intended purpose of extending North Avenue to the east. If it is
vacated, the property must revert back to one or the other adjacent properties at some
negotiated price. It cannot be sold outright to a third party. At this point, staff sees
no future use of the property for any public purpose.
The board was inclined to further consider selling Mr. Fradin a portion of the ROW
and directed staff to have it appraised. Staff will then contact both adjacent property
owners before bringing it back to the board.
3. American Water Proposal – Sewage Treatment Plant
The board reviewed the latest information submitted by American Water for
acquiring or managing and operating Deerfield’s wastewater system. Although not a
firm offer, they have presented some financial information on the various options that
have been under consideration for the past year. American Water believes that their
experience and expertise offer the village the best approach to addressing the
significant capital improvements needed over the next several years.
After discussing the proposals, the board concluded that controlling the operations
and rates are critical factors which they are reluctant to relinquish in any way to a
private entity. The board believe that customer service is extremely important and is
the highest priority in planning for the future of sanitary services in the community.
There was some discussion regarding the regional option, but those agencies (Lake
County Public Works and the North Shore Sanitary District) have not reacted
positively to our interest in pursuing that possibility. Although the board will keep an
open mind to other alternatives, at this point the plan is to make improvements to the
plant and satellite facilities, with the understanding that the village will continue to
own and operate the system.
4. Tax Exempt Bonds – CJHS
The Chicagoland Jewish High School is requesting that the village issue revenue
bonds to provide “conduit financing” for the new high school to be built south of
Lake Cook Road. The village’s only involvement with the project would be to lend
its name to the borrowing in order to make tax exempt financing available. The
village would be entitled to charge a fee for its participation in the financing.
Bob Fialkowski reviewed a similar 1995 bond issue involving the Gidwitz/Weinberg
facility south of Lake Cook Road. That transaction involved a fee of $30,000 plus
costs not to exceed $5,000.
Mayor Harris stated that he felt that the village should recover its costs but should
make no profit. The board agreed. The formal request from CJHS will be on a future
board agenda.
5. 2006-07 Budget
Bob Fialkowski gave a brief overview of his budget transmittal memo and then
reviewed his revenue projections for 2006-07. A 10% increase in General Fund
revenues is expected, which includes a 4% increase in the General Fund portion of
the property tax levy. Significant increases in both the infrastructure and scavenger
portions of the levy are also proposed. The fee and tax survey was reviewed briefly.
No fee increases are proposed as part of this budget, but a water rate increase will be
needed to offset the new wholesale rate established by Highland Park.
The police department budget will be approximately 2% higher with no new
programs or personnel. Chief Sliozis did alert the board that some municipalities
have expressed an interest in contracting with the village for dispatch services. Public
works is requesting several new positions which, although discussed briefly, will be
reviewed in detail at the next budget meeting.
Considerable time was spent on the proposed capital budget and the need to deal with
long term financing for significant infrastructure projects planned for the future. The
main projects scheduled for 2006-07 are:
• Annual street rehabilitation and sidewalk program - $1,745,000. Funded
from MFT ($625,000) and Infrastructure Replacement Fund (IRF)
• Initiation of a sewer inflow and infiltration (I & I) study - $260,000. Sewer
Fund
• Lift station improvements at three sites - $750,000. Sewer Fund
• Rosemary infrastructure replacement - $2,415,000. IRF
• Village hall expansion - $4,200,000. TIF 2
The Infrastructure Fund will not have adequate revenues and reserves for the
anticipated expenditures. Revenue sources for this year include the IRF fund balance
(est. $406,000), half of the home rule sales tax ($750,000) and an increased tax levy
(from $45,000 to $600,000). With the program as presented, it will not be necessary
to issue debt in fiscal year ’07. It is recommended that the approximately $4,000,000
necessary to provide funding in the Sewer Fund and IRF can come from a
combination of fund transfers. To continue the program past the 2006-07 year with
the projects as presented in the Capital Improvements Program, it is very likely that a
debt issue will be necessary early in fiscal year 2007-08.
There was brief discussion on the potential economic benefits of redeveloping the
property on Deerfield Road owned by the village in the northwest quadrant. It was
agreed that staff should meet with the VCDC to explore options for this 73,000 sq. ft.
parcel.
Trustee Seiden commented that, with the very conservative revenue forecasting and
the existing reserve balances, he does not feel that an increased tax levy is necessary.
There was brief discussion on spending down fund balance, without any firm
conclusion on it or next year’s tax levy.
It was agreed that the board would meet again on the budget following the March
20th board meeting.
Minutes prepared by
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ROBERT D. FRANZ, Village Manager