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R-1154 - 02/28/2012 - DUPAGE MAYORS & MANAGERS - Resolutions Supporting DocumentsIT13H 6.F.9) AGENDA ITEM Regular Board of Trustees Meeting of February 24, 2012 SUBJECT: DuPage Mayors and Managers Conference 2012 Legislative Positions FROM: David Niemeyer, Village Manager BUDGET SOURCE/BUDGET IMPACT: N/A RECOMMENDED MOTION: I move to approve the attached Resolution Adopting the 2012 Legislative Positions of the DuPage Mayors and Managers Conference. Background/History: The Village has in the past adopted the legislative positions of the DuPage Mayors and Managers Conference and the Illinois Municipal League (as expressed in their respective legislative programs and in other legislative positions taken in the course of the legislative session) as Village policy through adoption of formal resolutions to that effect. Recommendation: In order to provide appropriate guidance to our Legislators and Village staff, I encourage the Board to adopt the legislative positions expressed by the DuPage Mayors and Managers Conference in its 2012 Legislative Action Program (LAP) and during the session via the attached resolution. �)M Last saved by DEFAULT 1: \Agenda Items\DMMC\2012 DMMC Legilsative Action Program.doc Last printed 2/172012 10:59 AM RESOLUTION 2012 - DUMM- LP -EXI -R -1154 A RESOLUTION ADOPTING THE 2012 LEGISLATIVE POSITIONS AND PRIORITIES OF THE DU PAGE MAYORS AND MANAGERS CONFERENCE WHEREAS, the Village of Oak Brook is a member of the DuPage Mayors and Managers Conference (Conference); and WHEREAS, the Conference develops its annual Legislative Action Program with the goal of establishing a comprehensive platform on legislative issues in order to protect and benefit the interests of its member municipalities, residents and businesses in these municipalities, and the region generally; and WHEREAS, on January 25, 2012, the Conference voted unanimously to adopt its 2012 Legislative Action Program, attached hereto and made a part hereof as Exhibit A; and WHEREAS, the Village of Oak Brook will be individually benefited by formally establishing positions on legislative issues affecting municipalities, thereby giving clear direction to officials and employees of the Village of Oak Brook regarding legislative positions that may be represented in official capacity or on behalf of the municipality. NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as follows: Section 1: The provisions of the preamble hereinabove set forth are hereby adopted as though fully set forth herein. Section 2: The positions and priorities advanced by the DuPage Mayors and Managers Conference for the 2012 Legislative Session and as expressed by the Conference in its 2012 Legislative Action Program are hereby adopted. Section 3: A copy of this Resolution be forwarded to area legislators. Section 4: The Village Board may, at any time, upon the concurring vote of four trustees, move to take exception with any position of the Conference on any matter. Section 5: This resolution shall be in full force and effect from and after its passage and approval as provided by law. APPROVED THIS 28th day of February, 2012. Gopal G. Lalmalani Village President Ayes: Nays: Absent: PASSED THIS 28th day of February, 2012. ATTEST: Charlotte K. Pruss Village Clerk Resolution 2012 - DUMM -LP -R -1154 Du Page Mayors & Managers Page 2 of 2 ptiv¢ Aetl, ,v DaPage Mayors amd Ma"fers Oom f eremee 1220 Oa4 $roof# Road Oa4 $rood, Jeeimois 60823 [630) 631 -0980 www- doge- eog-org DaPage Mayors amd AAamagers Cohleremee Officers President, Gary Grasso Mayor, Village of Burr Ridge Vice President, Rodney Craig President, Village of Hanover Park Secretary/Treasurer, Steve Stricker Administrator, Village of Burr Ridge hViseative cortirgiffee Director, Jeff Pruyn, Mayor, Village of Itasca Deputy Director, Joseph Breinig, Manager, Village of Carol Stream Joseph Broda, Mayor, Village of Lisle Michael Cassady, Manager, Village of Bensenville David Cook, Manager, Village of Hinsdale Rodney Craig, President, Village of Hanover Park Dave Hulseberg, Manager, Village of Lombard Jack Knight, Management Analyst, Village of Woodridge Sylvia Layne, Trustee, Village of Addison Jennifer McMahon, Assistant Administrator, City of Warrenville Kenn Miller, Councilman, City of Naperville David Niemeyer, Manager, Village of Oak Brook Nunzio Pulice, Mayor, City of Wood Dale Todd Scalzo, Councilman, City of Wheaton Gayle Smolinski, Mayor, Village of Roselle Steve Stricker, Administrator, Village of Burr Ridge Grant Wehrli, Councilman, City of Naperville TWO 6l oomfents legiseative Priorities �• legiseative Prineipees b. legiseative Position state "lento b. Homle Reee states and Popeeation S. Legisdative Priorities Legislative prforftles are those specific, important issues that the Conference pursues either through drafting and sponsoring legislation or through strong advocacy in cooperation with other municipal organizations. Legislative Priorities are the primary focus of our legislative efforts. Critiea8 Priority: Noted Me fihasteiaiB Sarviva8 of )KIdideipa8itios Local governments are challenged to fund essential services with limited existing resources. Local revenues are often dependent on the State's authorization, collection, and distribution. Frequently threatened with revenue diversions and state fee increases, municipalities require the freedom to raise and expend municipal funds in order to provide the services most needed by their residents and businesses. Recently, municipalities have opposed reducution of the local portion of income tax, sales tax "holidays" that decrease revenue, and fund sweeps that divert funds intended for local programs. Require the Timely Disbursement of LGDF Funds Current practice dictates that after collection by the State, local government revenues are deposited In the State's General Revenue fund and then transferred to the Lops Government Distributive Fund (LGDF). The State has recently been up to six months behind In LGDF payments to municipalities. The Comptroller should be required to transfer funds to the LGDF and distribute those funds to municipalities as soon as they are received and certified by the Department of Revenue and the Treasurer's office. Furthermore, the State should refrain from diverting this, or any other municipal revenue, for its own programs. Exempt Staffing Requirements from Collective Bargaining When negotiating with unions, three variables affect the cost to municipalities— wages, pension benefits, and staffing levels. Because of statutory arbitration requirements and state - mandated penslons, the only variable municipalities can use to manage budgets is the number of staff. Therefore, municipalities must have the sole authority to set staffing levels for all municipal activities. Legislation should be approved to explicitly exclude employee staffing levels from municipal collective bargaining. Amend the Illinois tabor Relations Act to Create a Level Playing Field for Labor Arbitration Arbitration between municipalities and unions does not Include considerations of affordability and fiscal implications for the municipality. The Act should be amended to ensure that arbitrators take Into account both the Interest and welfare of the public and the financial ability of the unit of government to meet costs with Its current revenue streams. Repeal the Illinois Workers on Public Works Act The Act currently requires the use of Illinois firms for public works projects. As a result, municipalities unnecessarily pay more for projects and attract a smaller pool of bidders. Reject Unfunded State Mandates Legislation often requires communities to divert local expenditures from municipal responsibilities and use them to fund state - imposed programs. The State should not impose mandates that increase financial obligations on local governments without providing adequate funds to reimburse municipalities for these new mandates. The State should not balance its budget to the detriment of municipalities, nor should It disrupt local budgets by removing or reducing local revenues. L Critiea8 Priority: Re joral Pamsior s The Conference seeks to make the pension system sustainable not only to ensure affordability for municipalities and their taxpayers, but also to protect obligations to employees. If municipalities lack sufficient funds, then pension systems will collapse and employees will receive nothing. In 2010, police and fire pensions became a two -tier system that ensured some relief for municipalities. That relief, however, will mostly occur in future years. While these reforms are Important, more needs to be done now. Reform Pensions for Current Public Safety Employees Existing pension benefit obligations are putting communities on the verge of insolvency. The only way to stabilize municipal budgets and protect ongoing pension benefits is to enact legislation to reduce the pension benefits. current employees will earn for future work performed after such legislation takes effect. Oppose All Pension Sweeteners Public Act 961495 created a two-tier pension system with more reasonable pension benefits for public employees hired after January 1, 2011. This reform will be meaningless if the Legislature increases those employees' benefits. The Legislature must reject any pension sweetener for either new hires or current employees. Amend the Compliance and Penalty Provisions In Publk Act 961495 Public Act 961495 requires municipalities to contribute annually to public safety pension funds in an amount sufficient to reach a 90% funded level by the 2040 fixed amortization deadline. Municipalities unable to make these payments will lose LGDF and other state - collected funds to make up the (fi ference, starting In 2015. The financial benefits of P.A. 961495 apply only to employees hired after January 1, 2011, and will not result M tangible savings until those employees have been in the system for several years. Municipalities with underfunded pensions are in that position because there simply are no revenues available to meet their growing pension burdens. The penalty provision of this new law, If left unchanged, will push the municipalities with the fewest resources most quickly toward Insolvency, which will ultimately imperil the very pensions that this law was Intended to protect. Enact a Rolling Amortization Period for Pension Funding Current law amortizes municipalities' pension debts to a fixed deadline of 2040, requiring payments by municipalities which would bring the funds current by that year. While this may sound reasonable in isolation, this arbitrary and unnecessary deadline exacerbates the pressure placed on taxpayers, as they will see their contribution amounts continue to climb. The Government Accounting Standards Board, the source of generally accepted accounting principles for state and local governments, currently endorses a 30year rolling amortization period as an appropriate method to calculate contributions. Rather than continuing Illinois' unpredictable practice of periodically changing the fixed date, the Legislature should protect the sustainability of pension funds and minimize the immediate burden on taxpayers by adopting a 30year rolling amortization. + a 1"'?, aHd WQ8„ faxpayar8 kereaN4 t"f e0^tei0$J(J0 S to pooke a"d ; 1#r6 p,�N,g *11; 8y Mlwe Man 100% - out f ftoOm 8at+a8$ eoNtiM0+Bd to 406018 d to pf#WOJ4 fiTWOO&OWS aMd W eeoaoA* dowpttJ rX TM AdO tW`0 yearsq (SQO&f tAn y 11800* 2Q10), 8 pa> stoK FJ cis Grew dy $90 A00000. source: Illinois Munklpalteague L Odfica$ Modify: Re joirme Pehsioms (com imiwed) Increase Employee Contributions A fundamental principle of pension funding is that both employees and taxpayers contribute to municipal pension costs. Initially, contributions were evenly split, but today taxpayers contribute up to 75% of the pension costs. Employee contributions should be increased and adjusted over time to match taxpayer contributions. Allow Police and Fire Pension Boards to Invest Funds in IMRF Police and fire pension boards are restricted to certain investments because each individual fund is relatively small. Other municipal employees' pension funds are mandatorily invested with the Illinois Municipal Retirement Fund, a professionally managed system subject to far fewer investment restrictions. Public safety employees should have the option of investing in IMRF as well. Allow Police and Fire Pension Boards to Merge Funds Public safety pension boards should be permitted to merge funds with other jurisdictions. Merging would create larger pension funds with which the boards could access a wider range of investment opportunities. Ensure Municipal Majority on Pension Boards Current police and fire pension boards are controlled by beneficiaries of the pension. Boards are comprised of two members appointed by the mayor, two active employees participating in the pension system, and one retiree. Municipalities may be completely cut out of the decisions made about the system despite bearing all the risk if funds do not perform well. Municipalities, not employees, should have majority representation on pension boards. Municipalities should also have standing to testify in disability proceedings before the board, a right that was previously taken away by the courts. Remove Pension Levies from the Tax Cap Previous state-mandated pension Increases have combined with current economic conditions to overburden municipal budgets. R Is Imperative that pension costs be removed from the tax cap for non-home rule communities. Amend the Public safety Employee Benefits Act The legislature should amend statutory provisions that affect benefits for people no longer working due to Injury or illness to ensure that these benefits are justified and not resulting in double payment. Continued reforms are needed to protect pension systems and ensure the ability to meet obligations to employees, Including police officers and firefighters. At the same time, it is also important to recognize the ongoing strain these pensions place on municipalities and their taxpayers. 3. Priorities Protect the Public Rights- of-Way and Advance the Modemhatlm of public Utilities Public utilities use public rights -of -way to deliver necessary services and commodities to municipalities. Municipalities own these rights- of-way and have a duty to protect them. As such, municipalities and residents must be able to regulate utilities' usage of this land. In addition, utilities should be required to Improve customer service, communications, reliability, and responses to matters of local Importance. Require Arbitration for Utility Franchises Municipalities are at a disadvantage when negotiating with utilities over expired franchises. Utilities should negotiate with municipalities in good faith and if they do not, then arbitration should be required so that a contract is always in place to protect the public. Repeal Limitations on Municipal Audits of Utility Taxes Under Public Act 96 -1422, utilities collect taxes and fees to send to municipalities; however, municipalities are not permitted to effectively audit utility tax remittances. Require ComEd /SMART Grid Reliability Recent legislation provides utilities with rate increases to invest in Infrastructure and implement SMART Grid technology. In return, utilities should be required to meet reliability standards and guarantee that revenue will be used appropriately to fund infrastructure Improvements. ,Support Western Access As the Elgin - O'Hare Expressway expands, the State should consider the project's impact on local residents and businesses. The State should also ensure that funding for the project Is fair, regional benefits are paid for by the region, and the new access route provides a true entrance Into the airport. Remove the Sunset Date on the Wireless Emereency Telephone safety Act With the advent of cell phone usage, an access fee was implemented to fund technological improvements so that cell phones could contact 9-1 -1. This legislation sunsets April 1, 2013. Because of widespread cell phone usage today, it is important that the system continues to be funded. irE free w,1i~a��j3s kill itoo"1ow<[ fo a ord " Y 19 -f./ ll�Q!!alj�>ft��iM0 41OV"? W4 s! ia'tioe — $f! slimy;OMPOOiw f4is axi il> ,W0 I Nfe t �uika ee iar# s. cedes, fo Ifsa 9-f -f to* Of lath 9 401141 A",#14 "f BMf , 'I 'Wf - fo 00"I # f4o 'sAww oE. F0014"I (A, 4. Lagiseativ¢ Painci pees Legislative Principles represent the foundation of our legislative efforts. They help clarify the development of legislative positions and they serve as a benchmark to evaluate the Impact of legislative proposals on municipalities. Protect Municipal Revenues Municipalities should have the flexibility to fund the programs and services they consider necessary. Funds owed to municipalities should not be diverted for other programs and should reach municipalities in a timely manner. State mandates should be reasonable and balanced against other municipal spending priorities to prevent overburdening local budgets and taxpayers. Eliminate Leaislative Barriers to the Joint Provision of Municipal Services All levels of government are struggling to maintain programs and services with decreasing revenues, but legislative barriers often make it difficult to consider consolidation and coordination of services including public works, code enforcement, police, and fire. The Conference supports the removal of any statutory barriers that prevent municipalities from working together across jurisdictions to provide joint services. The resulting efficiency would permit municipalities to provide a higher level of services, save money, and reduce the burden on taxpayers. The freedom to make decisions at the local level is the best way that municipalities can fully serve their unique constituencies. Activities such as franchising, zoning, issuing permits and licenses, local code enforcement, and regulating business activities are the fundamental responsibilities of local governments. The ability to make decisions to raise and expend municipal funds, regardless of their source, is vital to local efficiency. Policies should not undermine or preempt local authority to protect the health, safety, and welfare of local residents. Furthermore, the distinction between home rule and non -home rule communities should be removed to recognize the ability of all municipalities to govern themselves, regardless of population. The State should reject restrictions that erode local dedsion•making authority. For the good of their residents, both tome rule and non -home rule municipalities must have the freedom to employ policies including crime free housing, state and local funding atternattves, out-of-state gas taxation, regulation of pawn shops, and economic development Incentives. Implement Streamlined Sales Tax A legal loophole allows online retailers to avoid collecting sales taxes. As a result, states and municipalities have missed out on billions of dollars in tax revenue. As the Illinois Legislature looks at implementing federal streamlined sales tax and Intra- ltlinois sales tax sourcing rules, it must also take Into consideration the potential impact on individual municipalities. The State should ensure that any change of rule does not devastate a municipality based on its individual revenue structure. The Conference supports a federal streamlined system that preserves hAra -state sourcing rules and requires the State to treat the resulting funds as pass- through revenue. Such a system would ensure that a municipality receives the tax revenue from online retailers for sales ordered and shipped from out of state. G�o88eetJoM of '40 6.2#°10 04*c 04#40 0400 tax 001 000-01'-stow solo wad+ p�odeu� O'soma 410'3 000810X par y4w ih -70*0 0M?i Source: OpIty Nerald '; b. legiseutive Positiom stutextehts Legislative Position Statements regard issues that affect municipalities. They can be proposals that reappear frequently and require legislative efforts by the Conference; or they may never arise during a legislative year. They generally require less time and effort than Legislative Priorities, though on occasion they may become more significant over the course of a legislative session. Make Owners Responsible for Protecting Foreclosed Property The burden to maintain foreclosed property should rest not on the municipality, but on the bank or other owner of record. Amend Rules Regarding Publication of Legal Notices Legal notices should be published on the web instead of in a newspaper, as municipalities often no longer have a newspaper of general circulation. In addition, double publication of two -county Truth in Taxation Notices should be eliminated. Municipalities which straddle two counties are currently required to publish legal notices in both; this is a waste of limited public resources. Permit Municipal Administration of Motor Fuel Tax Funds Streamline the process for expending motor fuel tax funds so municipalities can use these funds more efficiently. Remove the Referendum Requirement for Real Estate Transfer Tax Allow municipalities to enact or increase a real estate transfer tax without a referendum. Remove Barrien from Non -Home Rute Authority Allow Crime Free Housing Regulations Municipalities with home rule authority are permitted to license landlords and require periodic Inspection of dwellings. If crimes occur in a dwelling and the landlord falls to enforce the lease, then the municipality may take away the license. Legislation should allow non -home rule communities to use this program as well. Amend the Hotel -Motel Tax Aflow non -home rule municipalities greater flexibility in how they can spend Hotel -Motel Tax revenues. Permit Access to Sales Tax Intormation Grant all municipalities access to the Illinois Department of Revenue sales tax information by individual retailer for enforcement and budgeting purposes. Amend the Open Meetings Act Amend the Open Meetings Act to exclude the use of email in the definition of "meeting," except when used as Immediate electronic communication, and allow electronic meeting attendance In cases of non - emergendes and out-of-town vacations. Furthermore, clarify the Act to explicitly authorize municipal boards to vote on Items raised under "New Business." Require Municipal Control of the Foreign Fire Insurance Tax Elected municipal officials, not fire department members, should receive, budget, and spend the revenues from the Foreign Fire Insurance Tax. Prohiblt Municipal Employees from Serving on the Governing Board No municipal employee should be eligible to serve on the governing board for that municipality. 6. Umit the Prevailing Wage Act Repeal or modify the Prevailing Wage Act to give municipalities more flexibility and assist limited local budgets in meeting residents' needs. Regulate Charitable Solicitations on Behalf of Police or Fire Unions Develop effective efforts to prevent fraud and misrepresentation by solicitors. Define °Confidential Employees" Under the Illinois Labor Relations Act Legislation is necessary to include within the definition of "confidential employees" those secretaries and similar support staff working directly for certain management personnel and to ensure that such employees are not considered "public employees" entitled to membership within a bargaining unit. Amend Public Safety Pension Board Training Legislation Public Act 96-0429 should be amended to permit training using current technology, induding online courses and webinars, and to allow certification of local community colleges to provide such training. Promote Net Metering for Wind Farmers Legislation in 2008 provided that local governments are eligible to own and operate wind generation turbine farms, but to be effective the statute must mandate net aggregate metering. Exempt Park Departments from AED Regulations Indoor and outdoor physical fitness facilities are required to have an automatic external defibrillator (AED) and an Individual trained in the use of the AED on site. Public Act 95-0712 exempts park districts from these regulations. Municipal park departments should be afforded the same exemption. PLANNING. LAND USE. AND TRANSPORTATION Protect Sign Regulation and Limit Billboard Removal Compensation Protect municipal authority to regulate signs. Legislation is necessary to allow municipalities to use amortization as a form of "just compensation" when zoning changes cause a billboard to be a nonconforming use. Limit Land Disconnection Prohibit the disconnection of land from a municipality without approval from the city council or village board. Permit Special Service Areas for Stormwater Facilities Reform Public Act 97.0533 to allow the use of special service areas so that municipalities can ensure maintenance of drainage facilities that are the responsibility of homeowner associations. Allow Local Government CiuIck -Take Authority Municipalities should be allowed to use quick -take authority to acquire land for specific purposes without being required to obtain a permit. Allow Municipalities to Determine the Form of Security Posted By Developers Municipalities, rather than developers, should be able to decide whether developers will need a bond or a letter-of- credit for public Improvements. F. Com f eremee Meom6ersAip Nome Rage 3tatas aMd Popaeatioh Municipality City or Village Home Rule" Population" Addison Village Yes 36,942 Aurora City Yes 197,899 Bartlett Village Yes 41,208 Bensenville Village No 18,352 Bloomingdale Village Yes 22,018 Bolingbrook Village Yes 73,366 Burr Ridge Village No 10,559 Carol Stream Village Yes 39,711 Clarendon Hills Village No 8,429 Downers Grove Village Yes 47,833 Elmhurst City Yes 44,121 Glen Ellyn Village Yes 27,450 Glendale Heights Village Yes 34,208 Hanover Park Village Yes 37,973 Hinsdale Village No 16,816 Itasca Village No 8,649 Lisle Village No 22,390 Lombard Village No 43,165 Naperville City Yes 141,853 Oak Brook Village No 7,883 Oakbrook Terrace City Yes 2,134 Roselle Village No 22,763 St. Charles City Yes 32,974 Villa Park Village No 21,904 Warrenville City Yes 13,140 Wayne Village No 2,431 West Chicago City Yes 27,086 Westmont Village Yes 24,685 Wheaton City Yes 52,894 Willowbrook Village No 8,540 Winfield Village No 9,080 Wood Dale City No 13,770 Woodridge Village Yes 32,949 Total "Under the 1970 Illinois Constitution, any municipality of more than 25,000 is a home rule unit. Municipalites of 25,000 or less may elect by referendum to become home rule units. Similarly, home rule communities, regardless of population, may rescind home rule power by referendum. Home rule units enjoy broader powers to license, tax, Incur debt, and generally regulate for the public health, safety, and welfare than do non -home rule units. The Constitution provides that the General Assembly may preempt home rule powers in many cases if it does so with the approval of an extraordinary majority (3/5 of the members) in each chamber. (Illinois Constitution, Article VII, Section 6) "Based on figures from the 2010 Federal Census. S. MPAg¢ Mayors amd JVlamag¢rs comieretic¢ eeee6tatimV 60 year$ of CooperAti®N. 1962-2012