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Minutes - 12/04/2006 - Committee of the Whole111 3. MINUTES OF THE DECEMBER 4, 2006 SPECIAL COMMITTEE OF THE WHOLE MEETING OF THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF OAK BROOK APPROVED AS AMENDED BY VILLAGE BOARD ON FEBRUARY 27, 2006. CALL TO ORDER: The Committee of the Whole Meeting of the Village Board of Trustees was called to order by President Quinlan in the West Wing Training Room of the Butler Government Center at 10:14 a.m. The Pledge of Allegiance was given. R(lT T CAT T - Village Clerk Linda Gonnella called the roll with the following persons PRESENT: President Kevin M. Quinlan, Trustees Stelios Aktipis, Jeffrey Kennedy, John Craig, Robert Sanford and Asif Yusuf. ABSENT: Trustee Kathryn Manofsky. IN ATTENDANCE: Richard B. Boehm, Village Manager; Jeffrey P. Moline, Assistant Village Manager; James Bodony, Fire Chief, Dale L. Durfey, Jr., Village Engineer; Robert L. Kallien, Jr., Director of Community Development; Darrell J. Langlois, Finance Director; Margaret Klinkow Hartmann, Library Director; Michael J. Meranda, Public Works Director; Nelson Patras, Bath & Tennis Club Operations Manager; Thomas Sheahan, Chief of Police and Sharon Dangles, Accounting Manager. DISCUSSION OF 2007 BUDGET President Quinlan reminded the audience that this was a working session Committee-of- the-Whole meeting and that Roberts Rules of Order would not be negated but they would be relaxed. He also complimented the Finance Director Langlois and the rest of the staff on their preparation of materials. He added that the previous budget workshop had gone smoothly and that the materials presented for this meeting included all of the direction that the Board provided staff at that meeting. Trustee Aktipis was unable to attend the previous Budget and since he was not part of the deliberations he had a number of questions. He asked if the premise of the five year plan was to underestimate income and overestimate expenses. He expressed concern about the estimated increase in sales tax and asked why the numbers suggested were used. Finance Director Langlois responded that the Board previously directed that the long term plan include conservative estimated increase in income in the near years, but a larger estimated increase in the later years. But he added that if the income was not available the expenses would be adjusted. COMMITTEE -OF- THE -WHOLE Minutes Page I of 4 December 4, 2006 3. At 10:27 President Quinlan indicated that he had to leave the meeting temporarily and suggested that the senior Trustee, John Craig assume the chair. Motion by Trustee Aktipis, seconded by Trustee Kennedy, to nominate Trustee Craig to assume the chair. VOICE VOTE: Motion carried. Trustee Aktipis had concern for the estimates presented. He understood that with the current estimates for 2007 the Village would not be able to fund a large number of capital projects that had been deferred from last year or new projects such as the Beautification Project. Director Langlois clarified that the Beautification Project was going to be funded, but not out of the General Fund. He indicated that the increase in the Hotel tax, directed by the Board, would fund that project. He clarified that the budget would sustain Village operations without new initiatives. Trustee Aktipis expressed concern that by taking on these new initiatives it would mean increasing taxes. He has concern for the direction that new projects were approved without funding sources and that taxes were being raised to support those projects. Trustee Aktipis also expressed concern for the project of widening the 22nd Street Tollway bridge. He has question as to whether the Village is truly obligated to expend $5 million for that project and does not feel that the administration is doing enough to determine that obligation. He also has concern for buying bonds to fund this project. Trustee Aktipis stated that he is against the philosophy of new taxes to support projects. Trustee Aktipis also expressed concern as to the general philosophy of expenditures. He did not believe that the increases suggested made good sense. He expressed concern for increasing personnel, consulting fees and legal fees and for dropping projects such as support of the Historical Society. Trustee Aktipis added his concern for the TIF project. He wanted to reiterate that he was against spending Village money for a developer who did not really need it. Trustee Kennedy responded to Trustee Aktipis' skepticism regarding the 22nd Street Tollway bridge. He stated that the Village was contractually obligated for one -third the cost of the construction. He explained that a previous Board of Trustees worked with the State and the State agreed to take maintenance responsibility for 22 "d Street including paving and the bridge over Salt Creek. The State on its part has sent several million dollars to replace the bridge over Salt Creek and maintenance of 22" Street over the past twelve years. The Village at the time, as a quid pro quo, agreed to pay one - third of the construction costs to replace the bridge and widen 22" Street when the Tollway was ready. He added that the bridge has been a traffic bottleneck for a very long time. President Quinlan returned to the meeting at 10:40 a.m. Trustee Kennedy indicated his opinion of the budget. He felt that it was an excellent budget, a tight budget. He recognized that about half of the budget was personnel, COMMITTEE -OF- THE -WHOLE Minutes Page 2 of 4 December 4, 2006 3. firefighters, police officers, etc. and he added that there was not a lot of discretionary money in the budget and that there were a number of projects that the Board and staff have put aside. He added that the new taxes that the Board approved still were well below competing communities and he felt that previous levels were unreasonably low. He felt that the Board and staff were being very realistic. He felt that if the Village was going to do the projects that the Board and the residents would like to see done, such as the Beautification Project and the Commercial Revitalization Project, additional revenue was needed. Trustee Kennedy indicated that when the TIF project was voted on it was a 4 -0 vote with Trustee Aktipis abstaining from the vote. It had been approved and the revenue stream had begun with the successful opening of the first restaurant. Revenue from that project was expected very soon and would cover the debt service included in the budget. Trustee Aktipis responded that he does not prefer to maintain an optimistic viewpoint. He reiterated his position that he did not believe in approving projects that are not funded or raising taxes to fund those projects or to accept that the Village is obligated to contribute $5 million to the 22nd Street bridge project. He also is opposed to certain increased legal costs. Trustee Sanford offered that in order to keep Oak Brook as a premier community and provide advantages residents have enjoyed it is important to reinvest in the community and put money into the projects such as the Commercial Revitalization Project. He felt this was good business sense. He questioned the Village's obligation relative to the old Butler School and would like clarification. Village Manager Boehm responded that the Village has an intergovernmental agreement with the Park District which obligates the Village to maintain the exterior of the structure and the Village has the use of the lower level. However the Historical Society has taken over most of that level for staging of the museum's collections. The Village was in discussion with the Park District for interior remediation of mold, therefore there was not enough information to include it in the budget. When these issues had been defined, it would be brought before the Board and the budget would be amended if necessary. Manager Boehm explained that the obligation the Village has to the 22" d Street Bridge reconstruction was a result of a 1998 intergovernmental jurisdictional transfer of 22nd Street with the Illinois Department of Transportation. Manager Boehm explained that the business license registration program was a program the Board had put into the 2006 budget to help the Village and the Chamber of Commerce know what businesses were in the Village and determine how to help businesses. The registration fee was to cover personnel costs to administer the program. COMMITTEE -OF- THE -WHOLE Minutes Page 3 of 4 December 4, 2006 3. He added that personnel increases were relative to the commercial redevelopment of Oak Brook and increased residential development in regard to increased inspections required. Discussion ensued relative to mold remediation at the Butler School and there was consensus that the Village should do what needed to be done in order to prevent further problems in the future. Trustee Kennedy iterated that several landscaping projects outside of the hotel district have been put on hold due to the lack of funds and that the only beautification projects moving forward were doing so due to the increase in the hotel tax. He also commented that the privatization of the swimming pool management worked very well for the Bath and Tennis Club. He added that it saved the Village approximately $40,000 from the previous year. Discussion ensued relative to overtime costs in Fire and Police and that staffing issues should be adjudicated shortly in Police and the Fire issues were a fundamental consequence of staffing a Fire Department. Consensus of the majority of members present was that no one enjoyed raising taxes, but in general felt that the direction of the 2007 Budget would yield benefits and protect what the Village currently has in the long term and were not frivolous. President Quinlan recommended that this Budget be brought forward at a Public Hearing on December 12 at 7:15 p.m. before final approval. He reiterated compliments to Finance Director Langlois and staff for the work done presenting this budget. 4. ADJOURNMENT: Motion by Trustee Craig, seconded by Trustee Kennedy, to adjourn the Special Committee -of -the -Whole Meeting at 11:15 a.m. VOICE VOTE: Motion carried. ATTEST: s /Linda K. Gonnella Linda K. Gonnella, CMC Village Clerk cow COMMITTEE -OF- THE -WHOLE Minutes Page 4 of 4 December 4, 2006