Minutes - 09/09/1997 - Board of TrusteesI - ,7PIA� 1-7
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VILLAGE OF OAK BROOK Minutes BEET, U227
UNOFFICIAL UNTIL APPROVED AS )XTd ;"TEN x
OR AS AMENDED _ BY VILLAGE BOARD ON
September 23, 1997
1. MEETING CALL: MEETING CALL
The Regular Meeting of the Board of Trustees -.,.as called to order by President
Bushy in the Samuel E. Dean Board Room of the Village Commons at 7:35
p.m. Pledge of Allegiance was given.
2. ROLL CAU: ROLL CALL
The Clerk called the roll with the following persons
PRESENT: President Bushy. Trustees Bartecki. McInerney, Savino and
Shumate.
ABSENT: Trustee Caleel.
Trustee Kenny arrived at 7:40 p.m.
IN ATTENDANCE: Stephen B. Veitch. Village Manager; Michael A. Crotty,
Assistant to the Village Manager; Dale L. Durfey. Jr., Village Engineer; Debra
J. Jarvis, Fire Chief/Building Coriurnissioner. Bruce F. Kapff. Director of
Information Services & Purchasbig; Richard D. Klatzco, Chief of Police;
Darrell J. Langlois, Finance Officeri'Treasurer; Richard A. Martens, Village
Attorney; Ruth A. Martin. Library Director; Michael J. Meranda.
Superintendent of Public Works-, Bonnie Sartore. Bath and Tennis Club
Manager; Daryl Sittig, Fire Chief: Trey VanDyke. Golf Club Manager; and
Torn Burton. Pool Manager.
3. ANNOUNCEMENTS & OPEN FOR UM: ANNOUNCEMENTS
AND
Trustee Shumate discussed his ontacting the Illinois Department of OPEN FORUM
Transportation (IDOT) to offer a suggestion in lessening the congestion that
occurs at the merging ramps of I- 88/Roosevelr Road/the 1 -90 extension to the
Eisenhower Expressway. He recommended a communication device be
installed on Roosevelt Road that would let drivers kno« if the lanes were open
to proceed or if closed. they may choose an alternate route. He thought it
would be beneficial to our residents and would hope IDOT could budget for
some type of advance .varning system.
President Bushy indicated that Mayor Daley. with the DuPage Mayors and
Managers. have discussed this area of concern. The discussion would need to
include the Cook County Board Chairman. John Stroger; and the Hillside and
Bellwood Mayors. Mayor Daley and his staff are willing to work. in a joint
effort, with Cook County, City of Chicago, Hillside, Bellwood and DuPage
County in an effort to resolve this major traffic problem.
VILLAGE OF OAK BROOK Minutes 1 of 19 September 9, 1 997
President Bushy explained that the Village has been working to reduce the
premiums of flood insurance for our resident homes in a flood way in Oak-
Brook. President Bushy acknowledged the work of Assistant to Village
Manager Crotty and Civil Engineer Heather Koy for working n this project.
The result has been a Class 7 rating for the Village which is a 15% discount on
flood insurance rates. Interested persons may contact the Village Hall at 990-
3000 for further information.
President Bushy congratulated Trustee Kenny and his family on the birth of his
daughter. Trustee Kenny thanked the Village for the congratulatory flowers
sent to his wife.
UNNEU., .. X f
Motion by Trustee McInerney, seconded by Ti stee Bartecki, to approve the
minutes of the Regular Meeting of August 26, 1997 as presented and waive the
full reading thereof. VOICE VOTE: Motion carried.
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Motion by Trustee Savino. seconded by Trustee Bartecki, to approve the j
Omnibus Agenda. ROLL CALL VOTE:
Ayes: 5 - Trustees - artecki, Kenny, McInerney, Savino and Shumate.
Nays: 0 - None.
Absent: I - Trustee Caleel. Motion carried. APPROVAL OF:
BILLS
A. AP PROVAI�OF BILLS: A `ed Omnibus Vote. $914,713.35
PAYROLL -
B. APPRO_ VAOF PAYROLL: Approved Omnibus Vote. $350,724.39(gross)
D. PAYOUTS: PAYOUTS:
1. CALLAGHAN PAV -INI G INC - PAYOUT #4 - 1997 PAVING 1997 PAVING
PROJECT - S523,99: Approved Omnibus Vote. PROJECT
2. JAMES J. BENES &: ASSOCIATES - PAYOUT #11 - 1997 1997 PAVING
PAVING PROJECT - CONSTRUCTION - S 15.822.60: Approved PROJECT
Omnibus Vote.
3. JAMES 1. BENES & ASSOCIATES - PAY -QUT #3 - 22!!ffORK 22ND /YORK
CONSTRUCTION SERVICES - S6.724.19-: Approved Omn;bu-,
Vote.
VILLAGE OF OAK BROOK Minutes 2 of 19 September 9, 1997
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1. MEL QRINDER - GOLF COURSE MAINTENANCE: REEL GRINDER -
Approved Omnibus Vote. GOLF COURSE MAINT.
CONVEN-DON AND VISITORS COMMITTEE - 205/6 OF SECOND QUARTER
SECOND QUARTER HOTEL IAX RECEIPTS TO THE 1211 I!AQE HOTEL TAX
C:QNYENTIQN AND VISITORS BLREAU: Approved Ornnibus RECEIPTS
Vote.
OW
A. aPOINTMENTS: No Business.
Nei "IRMS) IL
L ORDINANCE LC-AL-G-598 AN ORDINANCE AMENDING ORD.97-LC-AL-
SECTIM 3-22 QE 1HECODE OE QRDINANCES OF THE G-598
UTIAGE OF • :. B&QQL ILLINOIS AND AMENDINQ IHE is
NUMBER OF Tl•i. IZED LJQJJQR LICENSES: OF LIQUOR
LICENSES
Discussed and direction given at the Regular Meeting of August 26,
1997. The ordinance increases the number of A -1 liquor licenses
from sixteen (16) to seventeen (17) and B licenses from five ( 5) to
six (6) within the Village. Provided that all ordinance requirements
are met, the Local Liquor Commissioner would issue this license to
Clubhouse International - Oakbrook L.L.C. d/b /a The Clubhouse
International. 298 Oakbrook Center.
Motion by Trustee Savino, seconded by Trustee Bartecki, to pass
Ordinance 97- LC -AL -G -598. "An Ordinance Amending Section 3 -22
Of The Code Of Ordinances Of The Village Of Oak Brook, Illinois
And Amending The Numt>er Of Authorized Liquor Licenses as
presented and waive the full reading thereof. ROLL CALL VOTE:
Ayes: 5 - Trustees Bartecki. Kenny, McInerney. Savino and
Shumate.
Nays: 0 - None.
Absent: 1 - Trustee Caleel. Motion carried.
VILLAGE OF OAK BROOK Minutes 3 of 19 September 9, 1997
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On June 10, 1997. he Board authorized staff to issue a request for
proposal for residential municipal waste collection services beginning
January 1, 1998. The RFP, distributed in June, was developed based
on several discussions with the Board earlier in the year. Three
proposals were recei-t ed• and a summary of the results is attached to
Assistant to Village Manager Crotty's memo dated September 5,
1997, noting that Workman Services, Inc. withdrew its proposal on
August 13, 1997.
Because the Beard consensus was to keep the program simple (i.e.
few changes from the existing program), staff negodated with the
hauler who originally submitted the lowest cost flat rate proposal.
The resulting proposed contract between the Village and BFI Waste
Systems of North Atnerica, Inc. was submitted for Village Board
consideration.
The Village asked for proposals on both a Flat Rate and a Modified
Volume -Based program. The Flat Rate option was selected because
it is more convenient for residents, is likely to be less costly based on
the proposals received. and is consistent with the Board's wish to
keep the program simple. In addition. 1995 and 1996 recycling
statistics for Oak Brook's flat rate system compare favorably with
statistics for communities with modified volume based programs.
The negotiated contract rates are less than or equal to the current rates
in all cases:
Curbside collection of unlimited refuse and recycling - $10.00 per
household per month ($0.11 lower than their original quote and $2.40
lower than the current rate).
Subscription rate for rear door collection of refuse and curbside
collection of recycling - $13.90 ($0.21 lower than the original quote.
and $4.50 lower than the current rate).
Subscripti�)n rate for twice per week curbside collection - $15.66
($4.39 lower than &,e current rate).
VILLAGE OF OAK BROOD Minutes 4 of 19 September 9, 1997
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RESIDENTIAL
MUNICIPAL WASTE
COLLECTION
CONTRACT
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Subscription rate for twice per week rear door collection - $22.83
(54.02 lower than the current rate).
Subscription rate for monthly rental of 90 -gallon waste eontaiAer -
$2.50 in addition to the monthly charges listed above (the same as the
current rate).
Also included among the subscription services is an optional
recycling system whereby the subscribing resident receives a 32
gallon wheeled recycling container. Non paper recyclables are placed
inside the container, paper products are placed on top of the cart in a
brown paper bag or bundled. and the cart is then rolled to the curb.
The subscription rate for this service is $1.75 additional per month.
There w ere no structural changes in the volume based landscape
waste program. The negotiated rates for landscape waste services are
as follows:
Landscape waste sticker to be placed on each bag, container or
bundle - $1.50 per sticker (SO.06 lower than their original proposal,
and the same as the current price).
Subscription rate for annual rental of 90- gallon landscape waste
container - $136.00 (S20 lower than the current rate).
The contract requires that BFI arrange for sticker sales at four or more
vendor locations in addition to the Village Hall. In the past, nearby
24 -hour grocery stores were unwilling to sell Oak Brook yard waste
stickers because the Village had multiple haulers serving the
residential community_ Because the new contract provides for
residential collection by a single hauler, staff anticipates that these
outlets will be more willing to sell stickers.
Under the new contract. residents will also be able to purchase
stickers from BFI by mail. The method for purchase by mail will be
included in a brochure that will be sent to all residents explaining the
entire refuse, recycling and landscape waste collection program.
VILLAGE OF OAK BROOK Minutes 5 of 19 September 9, 1997
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The term of the contract is for three years beginning January 1, 1998
and ending on December 31.2000. Upon mutual agreement, the
contract may be extended beyond the term. Each year. either the
Village or BFI may request a rate review that considers an analysis of
costs, revenues, factors affecting the cost of service or revenue, and
volume of materials collected. If the Board determines that there is
justification for a change in the rate. the contract caps any annual
increase at 5 %. This provision is essentially the same as in the
Village' current contract except that currently it does not provide for
a cap.
The contract establishes Monday as the collection day for all
materials (refuse, recycling and landscape waste). Currently, refuse
and recycling is collected on Friday and landscape waste on Monday.
The consolidation to one day is intended to eliminate having waste
material at the curb on multiple days.
Staff is recommending that a contract be awarded to BFI Waste
Systems of North America, Inc. BFI has demonstrated the ability to
serve the community (currently serving over 90% of Oak Brook
households), and the negotiated rates are in all cases lower than or
equal to those currently in place.
Motion by Trustee Savino. seconded by Trustee Kenny, to waive
competitive bidding and award a contract to BFI Waste Systems of
North America, Inc. for Residential Municipal Waste Collection
Services beginning January 1. 1998. ROLL CALL VOTE:
Ayes: 5 - Trustees Bartecki, Kenny. McInerney. Savino and
Shumate.
Nays: 0 - None.
Absent: 1 - Trustee Caleel. Motion carried.
Trustee Savino asked if the current recycling bins may be returned to
BFI for a rebate if residents wish to use the new 32- gallon containers.
Village Manager Veitch indicated the present recycling bins are the
property of each resident and not refi�ndable.
Village President Bushy commended Staff for a job well done noting
the residents will benefit greatly from the new residential municipal
waste collection services.
VILLAGE OF OAK BROOK Minutes 6 of 19 September 9, 1997
PRIM -
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Enainenng: Trustee Bartecki - Construction is delayed on the 22`d
Street/York Road project due to various utilities that have to relocate facilities.
Common':vealth Edison has yet to apply for a permit to relocate.
Fi a Hotel Committee: Trustee McInerney - Most of the Finance
Department's time during August was spent on completing the 1998 -2002
edition of the Five -Year Financial Plan.
Pentamation was on site to conduct training. The Village is currently "live" on
its first application, the budget module.
Two pieces of legislation have recently been passed relating to the Illinois
Municipal Retirement Fund. Staff will be analyzing options and th- --ir impact
to the Village of Oak Brook regarding this legislation.
Elm: Trustee Kenny - The Fire Department responded to 100 engine calls and
100 ambulance calls during the Month of August. The Department was called
only four (4) time for Mutual Aid but called for Mutual Aid ten (10) times
during the month. The Fire Department Dive Team responded to a Divers Box
call for a car in the pond at the Oak Brook Hyatt. The driver of the car was in
the water and safely rescued. The Dive Team also assisted with the removal of
the car.
Una: Trustee Caleel - Library Director Martin's report stated the following:
A presentation by Lee Gibbs is offered in conjunction with the Renoir exhibit
at the Art Institute of Chicago.
The Library's Evergreen Concert, sponsored by the Friends of the Oak Brook
Public Library, is scheduled for October 19" at 4:00 p.m. at the Rath and
Tennis Clubhouse. The Fall concert features 15 year -old pianist, Kristin
Figard, who will soon return from the International TchaikowTsky Competition
in Moscow.
The Oak Brook Women's Club recently donated a collection of CDs including
classic and new children's music and action games. The collection is being
used in Youth programs and is available to borrowers.
The Fall Youth program flyer was distributed to the Brook Forest and Butler
School PTAs.
Police: Trustee Shumate - On Friday, August 22. 1997, the Fire and Police
Commission offered Mike Hall and George Peterson a position as Probationary
Officers. Both Mike and George accepted the position and were sworn in on
Monday, September 8. 1997. Mike Hall has been with the Village of Oak
Brook for 9 years as a Communications Operator and for the past 3 years has
been the Supervisor of the Communications Center. George Peterson has been
with the Village of Oak Brook for a year and %2 as a Communications
Operator.
VILLAGE OF OAK BROOK Minutes 7 of 19
September 9, 1997
DEPARTMENTAL
REPORTS
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Driving under the influence (D.U.I.) arrests have increased 20% in relation to
this time in 1996. Total traffic contacts have also increased by 10% compared
to 1996. This increase is due to more aggressive patrol by the Officers of the
Oak Brook Police Department.
Publip. _WQ : Trustee Savino - In -house work continues on small scale
drainage projects throughout the Village.
Fire hydrant painting in the far southwest quadrant of the Village also
continues.
Later this month, the Public Works Department will be assisting the Oakbrook
Terrace Fire Department, Yorkfield Fire Protection District and the York
Center Fire Protection District in the flushing of Village -owned fire hydrants
within their jurisdiction. These entities perform the actual flushing and
conduct fire flow tests for insurance rating purposes during the process.
Village personnel merely monitor their work and ensure the Village's system
(water pressure) is not adversely affected. This activity is performed at night
to mitigate customer complaints (rusty water) and over the past several years,
not a single complaint has been registered.
Staff has received the second. and final, reimbursement from the State of
Illinois for all work associated with the Village's leaking underground storage
tanks at Public Works and Fire Station #1. The total cost of the project for
I- )th engineering and construction was $240,973, with the Village's two
ieimbursements totaling $55.438. Approximately 66% of the total project cost
was for replacement of ;he fuel tanks and installation of mandated
safety/monitoring equipment. and not subject to reimbursement.
Village Clerk: Clerk Gonnella - Two (2) liquor license renewals A ere issued
today bringing a total of three (3) renewed to date. A comprehensive revision
of our vending machine and tobacco product licensing ordinance is being
prepared for Village Board approval in October.
Village President: President Bushy - Explained that the turn- around time for
background information from the appropriate agencies has been longer than
anticipated for renewal of liquor licenses. Staff will review the procedure to
determine if an amendment to the ordinance relating to "Alcoholic Beverages"
is required.
Information Seriices: On -site staff training for Windows 95 and MS -Office
V
applications will resume in September. Staff training for 1998 Budget input
has taken place. The provision for tech support on a timely basis continues to
outstrip internal resources during this very busy period. Staff is addressing this
need in a munber of ways, including sharing existing personnel provided by
other departments, using temporary part-time help when available, and
contracting with consultants for emergency back -up services.
Purchasing Department: Current projects include Village Hall carpeting and
seating upholstery, residential municipal waste collection services contract,
VILLAGE OF OAK BROOK Minutes 8 of 19 September 9, 1997
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position classification and compensation study RFP, Finance Department
auditing services RFP, Village Hall mechanical engineering services, Fire
Station # 1 RFQ, and Engineering Department furniture.
Bath and Tennis: :::e final stages of planning for Ethnic Fest are underway.
Staff has received a steady stream of reservations for the Oktoberfest Preview
Party on Saturday, September Wh, and will continue to accept reservation
through Monday, September I 5th. The West Suburban Concert Band, The
Elmhurst Jazz Band and The Bavarian Band will be providing continuous
entertainment for this evening event. which will go on rain or shine.
Golf: President Bushy commended Staff for an excellent year in Golf noting
the following increases from last year: Rounds of Golf were up 3,963;
increases in Greens Fees, $82.024; Cart Fees, $43,693; Driving Range Fees,
$29,093; Lounge Sales, $20,100; and Pro Shop Sales, $8,345.
President Bushy discussed the work of former Village Trustee, William
Watson, and his coordinating the early history of the Village of Oak Brook for
preservation. He is working with Oak Brook Historical Society President, Dr.
Howard Trier, in developing an audio history of former officials in Oak Brook.
Any interested residents, who have knowledge of the beginning of Oak Brook,
may contact Mr. VN atson or the Village at 990 -3000 for further details. There
is some expense to his research. President Bushy asked the Board of Trus,.ees
if these expenses could be paid from the General Fund for preservation of the
development of the Village.
Trustee Shumate asked what budget line item could accommodate this expense
and if funds are used, the project be the property of the Village. He suggested
the Purchasing Department may assist Mr. Watson in film development
services. Staff will present further details for Village Board consideration of
this project.
FIVE-YEAR MEMP)MMMY M1. Fm Me,
A. REVIEW AND DISCUSSION OF DRAFT 1998-2002
N : PLAN:
President Bushy explained that since the Committee -of- the -Whole meetings
are not taped for cablevision. the meeting was canceled so that the draft 1998-
2002 Five -Year Financial Plan could be discussed at this evening's meeting.
Village Manager Veitch indicated the Five -Year Financial Plan combines
projections of anticipated revenues with estimates of the resources necessary to
meet anticipated needs, in terms of both operating and capital expenditures, to
produce a long -range picture of the financial condition of the Village. It is a
very useful tool for the Village Board and Staff in the budget;ng process and in
assessing the future impact of current decisions.
VILLAGE OF OAK BROOK Minutes 9 of 19 September 9, 1997
DRAFT 1998 -2002
FIVE -YEAR
FINANCIAL PLAN
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Consistent with recent editions of the Five -Year Financial Plan, and with the
charge given staff by the Village Board at its annual objectives meeting on July
7, 1997, this Financial Plan reflects a program of meeting the Village's
operational needs and carrying out major capital improvements for the
community, including significant improvements at the Oak Brook Sports Core,
without incurring general obligation debt and while reducing substantially the
Village's reliance on the utility- tax.
He acknowledged the outstanding contributions of Finance Officer Langlois,
who coordinates the process and creates the financial presentation. He further
acknowledged the department heads and other staff members whose efforts and
dedication are responsible for the contents of this document.
The Village's financial condition remains strong. With ongoing care and
effort, it should continue to be so. However, economic factors, State and
Federal legislation, and polio} decisions of the Village Board can all have
profound effects on the financial condition of the Village. With continued
attention to sound financial planning, and management, the Village can look
forward to continued financial health.
Trustee McInerney stated the purpose of the Five -Year Financial Plan is to
provide the Village Board, the Village staff and the community with a long -
range projection of financial condition for each of the twelve funds that
currently comprise the financial structure of the Village of Oak Brook. The
Five -Year Financial Plan, like the annual Municipal Budget, is prepared and
presented on a cash basis.
The 1998 -2002 Five -Year Financial Plan is based on the following
assumptions:
General inflation at the following rates: 2.5% in 1998; 2.7% in 1999 and 20+00;
3 % in 2001 and 2002.
Personnel inflation (including benefits. training and merit adjustments
applicable to personnel not at top-of-grade) at 3% above the general inflation
rate through 2000 and 2 % thereafter. Personnel inflation in the Sports Core
Fund is equal to the general inflation rate, in . iew of the heavily seasonal work
force and high turnover year -to -year.
Interest earnings on invested funds at rates ranging from 5.5% to 6.75 %,
depending upon the fund and the assumed length of investment.
VILLAGE OF OAK BROOK Minutes 10 of 19 September 9, 1997
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Sales tax receipts based on annual growth of 2% over the 1997 estimate from
existing retail shopping centers. plus projected receipts from new
developments. Receipts from other retail activity are estimated to be flat.
The operating budget is structured according to cost centers (called
"programs ") and is prepared at a level of detail far beyond that reflected in the
Five --Year Plan.
At the fund level in the Budget, revenue budgets are brought together with
operating and capital improvement expenditure budgets to present a cash -basis
income statement for each fund (called a "Fund Summary"). which can be
compared to the first year of the relevant Five -Year Financial Plan Summary to
ensure that the Budget is at least consistent with. if not more favorable than,
the first year of the Five -Year Plan for that fund.
The General Corporate Fund supports the majority of Village operations and is
of central importance to the financial condition of the Village.
The principal source of revenue to the General Corporate Fund, and to the
Village, is the sales tax. The growth assumption relative to the General Sales
Tax is a conservative 2% per year from existing retail shopping centers, plus
receipts (projected conservatively) from new retail developments. Other sales
tax revenue is projected to be flat over the period. For 1997, sales tax revenue
is conservatively projected to finish approximately 2% below the 1997 budget.
Revenue from the State Income Tax is projected to grow at a rate of 3% per
year. Other intergovernmental revenue is projected to grow at rates ranging
from 0% to 3 %. Most other revenues in the General Corporate Fund are
projected to be stable.
Legislative and General Manage, went_ The Plan reflects stable staffing levels
in all areas. Additional resources have been added in 1998 and 1999 to support
the Oak Brook Code review project, and a substantial increase in salary has
been included for the Village Clerk (pursuant to the request of the incumbent
Clerk and subject to the ultimate approval of the Village Board). Provision has
also been made for continued implementation of the Village's Technology Plan
and ongoing expenses of labor relations.
Financial Services. Public Wgrks and Ezig- n - There are no significant
changes projected in the operating budgets of these departments.
jai. The operating budget projections for the Library continue to reflect
significant increases in staffing. service hours, collections and programs of the
VILLAGE OF OAK BROOD Minutes 11 of 19 September 9, 1997
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Library prior to and after occupancy of the new Library building,. Full -time
equivalent staffing increases from 10 to 15.5 over the period (a reduction from
the levels projected in the 1997 -2001 Plan). This increase is related to meeting
the service levels suggested by Serving Our Public, the standards promulgated
by the Ulinois State Library and utilized by Oak Brook Public Library as its
benchmarking tool, at the "established" level for a library serving a population
of 12,000 (Serving Our Public provides standards for "minimum,', "growing ",
"established" and "advanced" libraries). The Plan reflects growth in the
Library's total budget from its 1997 level of 5531,000 to 5986,000 in 2002.
p, c ice. Previous editions of the Five -Year Financial Plan have addressed a
variety of staffing needs in the Police Department. This edition projects no
additional personnel other than one police officer position in 1998 for further
enhancement of community relations and crime prevention programs.
Elm & Co m 'Wily Develo t;, There are no significant changes projected
in the Fire & Community Development operating budget, beyond application
of the inflation assumptions..
Other Activiti s The Plan reflects elimination of the Village subsidy for
residential recycling based on the proceeds from sale of recycled materials in
the prior year in view of the restructuring of the residential solid waste contract
beginning in 1998.
The Plan continues to provide for an annual program of community events paid
for by the General Corporate Fund, consisting of Oak Brook Day,
Independence Day, Family Day and an annual Oak Brook International Ethnic
Fest. The Plan also reflects continuation of the policy inaugurated in 1996 to
assist local groups ,%ith the costs of holding meetings and events at the Oak
Brook Sports Core.
Exceptional Charges in the General Corporate Fund include:
Contributions to the Police and Fire Pension Funds (in lieu of property taxes).
Vehicle replacement charges (based on fleet depreciation schedules).
An annual transfer to the Sports Core Fund to cover the costs of general
maintenance and administration of the property. and to cover debt service on
the tennis dome.
The most significant capital projects reflected in this Five -Year Financial Plan
are the construction of a new Library, now projected to be completed in 1999,
and construction of a new or renovated Fire Station #I including space for
certain other functions and related Village Commons improvements, to be
VILLAGE OF OAK BROOK Minutes 12 of 19 September 9, 1997
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completed in 2000. These projects, with costs totaling $7.5 Million, are
projected to be completed w-ithottj i ebt.
Other significant capital expenditures reflected in the Plan include
implementation of the Technology Plan, renovation and expansion of the
Police Department_ and substantial expenditures for maintenance and updating
of Village Hall, which is now over 20 years old.
Conservative revenue projections and substantial capital investment without
taking on new debt combine to reduce the projected cash balance through the
period. However. a cash reserve of at least 5.5 months operating expenses is
maintained throughout the period, consistent with Village Board financial
policy.
Trustee Bartecki commented tharthe Village's discretionary spending may
cause depletion of funding the Village's services. The Village assumes that
sales tax revenue will continue. He requested the Board members to consider
extending dates of some projects and determine if services with our Fire and
Police departments could be shared with other communities. There could be
potential loss of sales due to the Internet in the future which could diminish our
sales tax revenue. The Village needs to attract businesses to our community.
Trustee McInerney suggested the Village has delayed several of these projects
such as the Fire Station and Library. If the Village needs to delay any capital
improvement projects, the Village will do so.
President Bushy recessed the Board of Trustees meeting at 9:24 p.m. The Village
Board of Trustees meeting resumed at 9:42 p.m.
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Trustee McInerney stated this fund is the repository for funds collected from
imposition of the Village's 1% Hotel/Motel Tax. Pursuant to State Statute, this
revenue is devoted solely to programs intended to increase overnight stays in
hotels located within the Village. Expenditures of funds from the tax are
recommended by the Hotel. Convention and Visitors Committee and are
subject to the specific approval of the Village Board.
Revenue from the tax is projected for planning purposes to increase at 3% per
year.
The projection reflects annual expenditures on approved activities of $350,000
per year, which maintains a healthy cash balance for unanticipated needs or
other uses as may be authorized by State law.
VILLAGE OF OAK BROOK Minutes 13 of 19 September 9, 1997
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The Motor Fuel Tax (MFT) Fund is the repository for funds distributed to the
Village by the State of -Illinois pursuant to the MFT distribution formula. Use
of these funds is limited by State law, and administrative procedures involved
in expenditure of MFT funds are onerous. Therefore, it is the Village's policy
to devote MFT funds ex-O ssively to eligible street resurfacing and
reconstruction projects.
Revenue is projected to not increase from the 1997 estimate over the five
years. The tax is levied on a cents - per - gallon basis, and it is not projected that
fuel sales state -wide will increase significantly over the period. The
distribution of MFT funds to local governments is on a per- capita basis, based
on the last certified census.
The Village's current policy is to use NIFT funds only for eligible capital
Improvements, specifically street resurfacing and reconstruction.
This fund is the repository for funds collected from imposition of the 2 ®Jo tax
on fire insurance policies written in the Village by insurance companies not
incorporated in the State of Illinois. By law, expenditures from the fund must
be for the maintenance. use and benefit of the Fire Department, Expenditures
are directed by a Foreign Fire Insurance Tax Board elected by the members of
the Fire Department, and are subject to the approval of the Village Board.
Revenue is project to be flat at the current level of $27,800 per year.
Operating expenditures are programmed for enhancing Fire Department
training programs, personal protective equipment station furnishings and
appliances, low impact physical fitness equipment and furniture and equipment
for the new Fire Station #1.
The General Assembly may act to meal 1895 statute that authorizes the
Foreign Fire Insurance Tax_ Should that happen. the planned expenditures will
have to compete with other priorities for funding within the General Corporate
Fund.
Trustee McInerney stated the Infrastructure Fund was established in 1993 as a
means of funding certain capital improvement projects including street
resurfacing/ reconstruction, safety pathways and drainage projects. All receipts
from the Utility Tax are deposited directly to this Fund. This Fund also
VILLAGE OF OAK BROOK Minutes 14 of 19 September 9, 1997
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receives periodic transfers from the Motor Fuel Tax Fund in order to
supplement the paving program.
The revenue base is projected to grow at 3% per year over the planning period.
The existing rates on natural gas and electric service, currently 4% are reduced
to 3% in 1998, resulting in a consistent 3% rate on gas, electric and
local/intrastate telephone service. That rate is further reduced to 2.5% in 2000,
to 2% in 2001 and to 1.5% in 2002.
Transfers from the Motor Fuel Tax Fund are reflected in 1998 and 2000.
Revenue from grants that have been secured for bikeway projects is also
reflected.
Capital projects are scheduled in the areas intended by the Village Board when
the Fund was created. Expenditures for streets are scheduled consistent with
the 1998 -2007 Roadway Maintenance Plan. Expenditures for safety pathways
are based on the most recent project schedules for the various grant projects
and the Safety Pathway Committee Priority List (updated July, 1997).
Expenditures for drainage improvements are scheduled at S 100,000 per year as
in the past, covering loth storm sewer and open drainage system improvements
and reconstruction.
The General Assembly may pass electric utility deregulation legislation,
making it likely that the utility tax on electric service will be restructured to
apply- per kilowatt-hour rather than to the cost of service. No significant
impact on yield is anticipated, however.
Trustee Bartecki questioned the proposed reduction in the utility tax. This
decision will be presented to the Village Board next month. Village officials
have determined less revenue is needed to fund mad repairs and construction.
Trustee Bartecki suggested expanding the use of the tax revenue for capital
items. Since 80% of the utility tax is generated by non - residential utility users,
the impact on our residents would be minimal. President Bushy suggested
discussing the utility tax next year before the Five -Year Financial Plan is
prepared by staff.
1
The largest enterprise operated by the Village is the water utility. The Water
Fund supports both operations and capital improvements to the water system.
Since the Water Fund is considered an enterprise fund, it is operated on a self -
supporting basis.
VILLAGE OF OAK BROOK Minutes 15 of 19 September 9, 1997
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The volume of metered water is projected to remain at current levels over the
planning period. The retail water rate is projected to remain at the current level
of $2.35 per 1,004 gallons through 1999 (two years longer than anticipated
originally) and increase to $2.75 in 2000 and $3.15 in 2002. DuPage Water
Commission charter customer rebates are projected to decline in 1998 and
cease in 1 999. As an offset, it is anticipated that Fixed cost payments to
DuPage Water Commission will be reduced 25 percent.
The primary objectives of the distribution system improvements continue to be
(1) improving water pressure in the Saddle Brook area. (2) improving east to
west circulation of water generally in order to derive greater benefit from the
York Road storage facility, (3) looping of dead -end mains. and (4) replacement
of deteriorating mains.
In addition, the Plan projects a significant capital expenditure in 1398 for
alterations to the 31 0 Street Booster Station in order to deliver water to the
southwest boosted pressure zone at a pressure not less that 45 PSI at all titres.
The current plans of the DuPage Water Commission with respect to phasing
out its rebate program for charter customers and reducing the fixed cost
component of its rate structure indicate that the Village should be able to delay
the rate increases anticipated in the 1997 -2001 Five -Year Financial Plan.
Trustee Bartecki inquired if the meter replacement program was accelerated,
would revenue increase? Village Manager Veitch stated the Village has not
received the report to determine this.
SPORTS CORE FU I�
The Sports Core Fund supports the operation of the Oak Brook Sports Core,
including the Bath and Tennis Club, the Golf Club, the Bath and Tennis Club
clubhouse. contractual use of the Sports Core's open fields and general use and
enjoyment of the property by the public. It is considered an enterprise fund
sir. ,- e the majority of its revenues are derived from user fees.
The consolidated presentation shows a brightening financial picture for the
Sports Core Fund. attributable to several factors:
Substantial new revenue from sale of land for right -of -way and sale of surplus
property- in the Wes'chester Park area. This revenue is designated as the
funding source for the Capital Improvement Account.
Continuation annual transfer from the General Corporate Fund in support of
general maintenance and administration of the property and debt service on the
tennis dome facility.
VILLAGE OF OAK BROOK Minutes 16 of 19 -- September 9,1997
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Deferring repayment of a 1996 interfund loan until revenue - enhancing capital
improvements are completed.
Continued increases in operating revenues in all enterprise operations.
Village Manager Veitch explained the sale of the tennis dome has diminished.
Staff recommends to continue operating the facility, as last year. Trustee
Bartecki concurred with this recommendation, as user fees support operating
costs. The Village needs to decide to commit to its use so that members will
join and advertise its availability. Trustee Shumate concurred that tennis dome
activities serve our residents. and the Bath and Tennis Club met its budget. He
commented the tennis dome is another aspect of the Sports Core, as is the use
of the fields for polo and soccer.
Trustee Savino also agreed that it remain open, since it is used during the
winter months.
Fire Chiefs Jarvis and Sittig commented on the requirement of it being
sprinklered. Village Manager Veitch explained, as a temporary structure, it
does not require sprinklers, since it is unoccupied May through October.
Trustee Bartecki recommended the Golf Clubhouse and Bath and Tennis
Clubhouse capital improvements be delayed. He requested the Village contract
for independent services to operate the Bath and Tennis Club. and they incur
any cos? for improvements.
President Bushy explained this process had been discussed extensively at the
Board of Trustees meeting in developing the Village's objectives. If the
Village is to improve services. then expansion of the Golf Clubhouse is
needed. Food sales and services will increase with a Saddle Club -type
atmosphere and amenities.
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The Self - Insurance Fund is the financial vehicle for funding the Village's
employee welfare benefit programs, including the self - insured medical and
dental plans. the third -party insured optical plan and group life and accidental
death insurance coverage. These programs also are made available to
employees of the Oak Brook Park District. retired Village employees and
separated employees pursuant to COBRA regulations (the last two groups on a
fully participant -paid basis).
Ongoing revenue to the fund comes principally from charges to other funds,
through the budgets of depar'ments where plan participants are employed,
charges to the Park District and charges to retirees and COBRA participants.
VILLAGE OF OAK BROOK Minutes 17 of 19 September 9, 1997
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The Plan also reflects the institution of a 5% participant contribution to the cast
of dependent coverage beginning in September, 1997.
Health claims, dental claims. and reinsurance costs are projected to increase at
an annual rate of 5% from current levels, beginning in July, 1998. Claims
expenses in 1996 and 1997 were significantly higher than these experienced in
1994 and 1995, which were considered to be aberrantly low-.
This fund was established as of January 1, 1995, as an internal service fund
financed by charges to Village departments for maintenance of vehicle fleet
equipment. Expenditures support the operation and maintenance of vehicular
equipment of all kinds, except for equipment utilized at the Sports Core.
Original acquisition of equipment is funded by the using department and
replacement of equipment is funded by the Equipment Replacement Fund
through separate charges to the using departments.
The Equipment Replacement Fund was created by the Village in 1993 as a
means of funding replacement of major capital equipment, primarily vehicles.
This fund is supported by other funds, principally the General Corporate Fund,
through vehicle user charges. This fund is utilized solely for replacement of
fleet equipment. Acquisition of new equipment (i.e., not as replacements) is
reflected in the fund where the using department resides.
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The Police and Firefighters' Pension Funds are separate financial entities and
are mandated by Illinois law.
Traditionally, local pension systems are property tax supported. Having never
levied a property tax, Oak Brook has met its funding requirements via
contributions from the General Corporate Fund. Thus, the Police and Fire
Pension Funds have been supported primarily by the sales tax. The amounts
contributed are based on payroll_ and are made via percentage factors that are
determined by actuarial studies and updated annually. Interest earnings are
projected at 6.75% over the planning period.
State tax cap legislation prohibits the Village from levying a property tax for
pension purposes without voter approval via referendum. Therefore, the
General Corporate Fund must continue to plan for contributions to the pension
funds in amounts sufficient to fund future benefits in accordance with actuarial
requirements and applicable law.
VILLAGE OF OAK BROOK Minutes 18 of 19 September 9, 1997
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10. MER HUSINESS 11 VMLAGE OPERA-TIQN.S.: None.
AID LMUSIENT:
Motion by Trustee Bartecki, seconded by Trustee Shumate, to adjourn the
meeting at 10: 18 p.m. VOICE VOTE: Motion carried.
ATTEST:'
VILLAGE OF OAK BROOK Minutes
19 Of 19 September 9, 1997
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