01/06/2003MINUTES
COMMITTEE OF THE WHOLE
January 6, 2003
The village board met as a committee of the whole in the board room of the village hall at 8:30 p.m. on
Monday, January 6, 2003. In attendance were:
Steven Harris, Mayor
Robert D. Franz, Village Manager
Derek Ragona, Trustee
Robert Fialkowski, Director of Finance
Harriet Rosenthal, Trustee
Ellasion Phillips, Assistant Director of Finance
William Seiden, Trustee
Rich Kramer, Computer System Coordinator
Vernon Swanson, Trustee
Barbara Little, Director of Public Works/Engineering
Matthew Wylie, Trustee
Diane Mikula, Assistant to the Village Manager
Employee Health Insurance Plan
Bob Fialkowski reviewed with the board his December 30th memo regarding proposed membership in
the Intergovernmental Personnel Benefit Cooperative (IPBC). While the Blue Cross/Blue Shield PPO
plan has served us well for several years, increased costs and market changes have made the IPBC pool
a better option for a community the size of Deerfield.
IPBC is a twenty-two year old organization which has grown to 36 municipalities and over 5,000 total
covered employees. There are 21 voting members. It is a suburban Chicago group that ranges from
Gurnee to Plainfield and includes Glenview, Buffalo Grove, Wheeling, Hinsdale and Mount Prospect.
It is a self -governed pool; Arthur J. Gallagher is the broker/consultant, Ancel Glink, Diamond, Bush,
DiCianni and Rolek is the counsel, and Sikich Gardner is the auditing firm. Membership is selective
and as of June 30, 2002, the pool had retained earnings of $5,383,881 with an annual premium of
$31,731,442.
In addition to economic benefits, a significant advantage to joining the pool is the future flexibility it
offers in designing a health benefits program within our budget. We would be able to offer a menu of
alternatives tailored to share with employees a greater responsibility for choosing and managing cost-
effective health care. With the current 175 participants (village, library, park district), the village is not
big enough to offer a cafeteria of options on its own.
The IPBC has provided rates for identical PPO coverage that are similar to what the village is currently
paying (through April 30th) but extended through June 30, 2004. Membership is renewed every three
years for a three-year period. Should the village join now, it would be committed until June 30, 2005.
After several questions and discussion among the board members, it was agreed that there was a
limited downside to joining IPBC and that staff should proceed with the appropriate steps to do so.
The tentative start date would be April 1, 2003. Formal board action on the necessary agreements will
be added to an upcoming village board meeting agenda.
Information Technology
The board reviewed earlier memos filed with them detailing recommendations for both an immediate
and long-term Information Technology Strategy Plan. There was agreement that the general
recommendations were on target.
Committee of the Whole
January 6, 2003
Page Two
Some concern was expressed regarding the financial commitment given the rapid changes in
technology. It was noted, however, that the plan would be implemented incrementally, thereby
allowing the village to adjust its strategy as needed. Staff was directed to proceed with upgrading its
technology since there is a fair amount of catching up that is necessary to meet the demands of a
technically sophisticated citizenry.
Trustee Ragona offered to review the specific proposals in detail and will share his views with the
board and staff. A time -line will be developed to assist in both planning and budgeting these software
and hardware purchases. Also, a resolution amending the fiscal year 2002-03 budget must be passed
by the board.
Preliminary Discussion: 2003-04 Budget
At the conclusion of last year's budget process, it was agreed that discussion on the 2003-04 budget
would begin earlier this year. Bob Fialkowski gave a brief overview of revenue projections noting
specifically the decline in state -shared taxes and interest rate earnings. Unlike the past when revenues
were growing, at some point the village will need to consider new revenue sources if it is to meet
general expenditures. Although not preferred, capital projects can be delayed but, because the day-to-
day operation is so labor intensive, general fund costs are going to outpace revenues. As a Home Rule
community, the village still has options such as a telecommunications tax and an additional sales tax,
both of which could be judiciously implemented.
The board agreed that it would like an on -going dialogue with staff as it prepares the upcoming budget.
Another meeting will be scheduled in early February when the revenue picture is clearer and the
Illinois General Assembly is back in session.
The meeting adjourned at 9:45 p.m.
Minutes prepared by:
l
kobLert D. Franz, Village Mana er