Minutes - 11/16/2010 - Board of TrusteesMINUTES OF THE NOVEMBER 16, 2010 SPECIAL MEETING OF
THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE
OF OAK BROOK APPROVED AS AMENDED ON DECEMBER 14,
2010.
CALL TO ORDER
The Special Meeting of the Village Board of Trustees was called to order by President John
W. Craig in the Samuel E. Dean Board Room of the Butler Government Center at 7:04 pm.
The Pledge of Allegiance was given.
2. ROLL CALL
Village Clerk Charlotte Pruss called the roll with the following persons:
PRESENT: President John W. Craig, Trustees Stelios Aktipis, James Carson, Mark Moy,
Moin Saiyed and Gerald Wolin.
ABSENT: Trustee Elaine Zannis (arrived at 7:13 pm).
IN ATTENDANCE: David Niemeyer, Village Manager; Blaine Wing, Assistant Village
Manager; Robert Kallien, Community Development Director; Sharon Dangles, Finance
Director; Thomas McEllin, Fire Chief; Sue Madorin, Library Director; Thomas Sheahan,
Police Chief; Michael Hullihan, Public Works Director; Trey VanDyke, Sports Core
Director; and Mark Sterk, Village Attorney.
3. PRESIDENT'S OPENING COMMENTS
President Craig stated the 2011 projected budget highlights are:
1)General Fund reserves are expected to be in excess of 6 months
2) No new taxes in 2011
3) Early Retirement Program
4) $9,500,000 in capital projects mostly for street improvements and water main projects
5) Sports Core debt repayment plan
4. RESIDENTNISITOR COMMENT
Resident Tracy Mulqueen, Executive Director of the Oak Brook Chamber of Commerce,
gave a summary of the Economic Development Plan that was previously given to the Board
members. She stated the current business database is complete and she is working with
Village staff to keep it updated. There is no charge to the Village for using the database.
She also stated the new website is called Experience Greater Oak Brook. Discussion
ensued.
5. APPROVAL OF MINUTES — None
6. CONSENT AGENDA
All items on the Consent Agenda are considered to be routine in nature and will be enacted
in one motion. There will be no separate discussion of these items unless a Board member
so requests, in which event, the item will be removed from the Consent Agenda and
considered as the first item after approval of the Consent Agenda.
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A. ACCOUNTS PAYABLES:
1) Odelson & Sterk, Ltd. — Legal Services — October, 2010 - $34,818.98
2) James J. Benes & Associates — Payout #8 — 2010 Water Main Const. Insp. -
$24,117.87
3) DuPage Water Commission — October, 2010 - $199,274.35
B. APPROVAL OF PAYROLL — None
C. COMMUNITY DEVELOPMENT REFERRALS —None
D. AUTHORIZATION TO SEEK BIDS OR PROPOSALS OR NEGOTIATE
CONTRACTS — None
E. BUDGET ADJUSTMENTS — None
F. ORDINANCES & RESOLUTIONS — None
G. AWARD OF CONTRACTS
1) Public Works Building Rooftop HVAC Unit Replacement
H. MONTHLY TREASURER'S REPORT— OCTOBER 31, 2010
Motion by Trustee Aktipis, seconded by Trustee Carson to approve the Consent Agenda
and authorize expenditures as presented or amended.
ROLL CALL VOTE:
Ayes: 6 — Trustees Aktipis, Carson, Moy, Saiyed, Wolin, and Zannis
Nays: 0 —None
Abstain: 0 —None
Absent: 0 —None
Motion carried.
7. ITEMS REMOVED FROM CONSENT AGENDA — None
8. BOARD & COMMISSION RECOMMENDATIONS — None
9. UNFINISHED BUSINESS — None
10. ACTIVE BUSINESS
A. 2011 PROPOSED MUNICIPAL BUDGET /CITIZENS FINANCE ADVISORY
COMMITTEE RECOMMENDATIONS — DISCUSSION ONLY
Presented by Trustee Aktipis. Trustee Aktipis stated that Manager Niemeyer will be giving
a power point presentation on the proposed 2011 Budget. He also stated that the members
of the Citizen's Finance Advisory Committee are present at the meeting and will be
participating with the discussion as well.
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Manager Niemeyer presented the proposed 2011 Budget. The power point presentation
covered the following:
2010 Hiehli is
• Oak Brook is in a better financial position compared to other neighboring
municipalities
• General Fund revenues are at 100% and expenditures are at 92% of budget
• Improvements in the office market
• Opening of Gibson's, Microsoft, Jason's Deli and LA Fitness
• $12 Million in improvements to the Oakbrook Center
2011 Highlights
• Early Retirement Program
• $9.5 million in capital projects, mainly streets improvements and water main
projects
• $2 million in debt — small compared to most communities
• 3% increase in sales tax revenue compared to same time period 2010
• 7.8% decline in State shared revenue compared to 2010
• -3.5% decline in Utility /Telecom tax as compared to 2010
• Implement appropriate changes as a result of the Public Works Efficiency Study
• Reduce vehicle fleet and implement rolling stock policy
• Continue to explore consolidation of dispatching services
• Continue to work with the Chamber of Commerce
• Conduct a Pay Plan Study
• Finalize Police Staffing Study in 1st Quarter
• Citizen survey /strategic planning with new Board in Spring 2011
• Expand partnership with the Park District
Issues affecting 2011 Budget Planning
• West 22nd Street Construction
• New Costco Stores in Melrose Park and Bolingbrook
• Oakbrook Center spending $12 million on improvements
• Opening of the Microsoft Store in mall
• Health Care Reform
• Improvement in liability insurance costs
• Elmhurst Hospital opening
Improvements to the Budget Book
• Fund structure chart added
• Graphs displayed in color
• Accomplishments for each program included
General Corporate Fund
• Ending cash balance for 2011 equal to 6.11 months of operating expenses
• Highlights of General Fund revenues 3.5% increase compared to 2010
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• General sales tax collections 2003 -2011
• Utility /telecommunications tax collections 2006 -2011
• Highlights of General Fund expenditures 3.4% increase compared to 2010
• Personnel changes
• Staff proposed changes from draft budget for revenues and expenditures
• Staff recommendations for projected excess reserves beyond the reserve
requirement of 6 month
• Citizen's Finance Advisory Committee recommendations
Hotel/Motel Tax Fund
• Revenue increase of .6% compared to 2010
• Use of revenue restricted by State law
• Staff recommends designation of revenue change
• Expenditures increase of 21% compared to 2010
Infrastructure Fund
• Revenues restricted to infrastructure
• Revenue increase of 49.7% compared to 2010
• Sales tax revenue is expected to remain flat
• $911,785 in transfers from General Fund, Motor Fuel Tax and Water Fund to
reimburse costs
• Increase in expenditures of 33.1 % compared to 2010
• Staff proposed changes from draft budget for revenues and expenditures
Water Fund
• Revenues and expenditures related to the water utility
• Increase of $190,000 compared to 2010
• Total expenditure decrease of 16.3% compared to 2010
• Staff proposed changes from draft budget for revenues and expenditures
Snorts Core Fund
• Revenue decrease of $21,770 compared to 2010
• $400,000 transfer from the General Fund expected
• $51,000 set aside for reserve fund
• Renew contract with Calihan Catering
• Sports Core staff to operated Poolside Cafe
• Increase fee for membership dues
• Expenditure increase of 4.1% compared to 2010
• Personnel reduction decrease of 3.8% compared to 2010
Equipment Replacement Fund
• $3.2 million unrestricted cash balance
• Decrease in revenue of $15,285 compared to 2010
• Propose no General Fund contribution for 2011
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• Increase in expenditures of $1,348,020 compared to 2010
• Replace six police vehicles
• Purchase fire ladder truck
• Replace ambulance
• Replace Public Works dump truck and trailer
Total projected budget expenditure increase of 8.4% for 2011 as compared to 2010.
The Citizen's Finance Advisory Committee made the following recommendations for 2011:
• Capital funds be reserved for pool replacement
• Modify the golf course's drainage system
• Continue to explore options for dispatching operations
• Attempt to align the investment portfolio mix for the pension funds
• Develop and implement a policy for the Village's rolling stock
• Implement a business registration program
• Eliminate the 2% cost of living adjustments and merit increases for employees
• Conduct an Employee Compensation Study by an outside firm
• Increase employee health insurance contribution to 20%
• Project 2011 sales tax revenue at the 2009 actual
• Do not include revenue for 2011 that is not already in place in 2010
Trustee Aktipis stated that he is concerned with the total projected expenditure increase of
8.4% because of the current economy.
Trustee Wolin thanked everyone that worked on the budget. He stated that he agrees that a
Compensation Study be conducted by an outside firm and then revisit the cost of living
increase of 2% once the study is complete.
Trustee Zannis stated that a Compensation Study needs to be completed and no cost of
living increase should be given to employees until the study is complete. She also stated
revenues for water tower advertising should be removed from the projected 2011 budget.
She also stated that a business license program should be implemented. She further stated
that Calihan Catering contract will no longer be exclusive and other vendors will cater at
the Bath and Tennis Clubhouse which will generate more revenue.
Manager Niemeyer addressed comments made by trustees. He stated the 8.4% increase in
the total budget is mostly due to capital projects, not operating costs. He also stated that
reserve amount does not include one time costs. He also stated that Calihan Catering has
paid the Village some of the $100,000 minus the Village events as stated in the contract.
He further stated that the Compensation Study needs to be done.
Trustee Carson requested Dave to pull all capital investments from the budget to see what
the operating variance for 2011 will be.
Trustee Wolin asked if part of the firefighter salaries can come from the Hotel /Motel Tax
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Fund. Attorney Sterk stated he will do research on the topic.
Trustee Zannis asked Trey and Sharon to restructure the Sports Core Fund in order for it to
be self sustaining. She also stated that the debt owed to the general fund should be paid
monthly rather than waiting until the end of the year to repay.
Manager Niemeyer stated we need to grow our revenues in order to improve the Sports
Core Fund financial picture.
Trustee Aktipis stated that we should think about purchasing flood insurance for the golf
course.
President Craig stated obtaining flood insurance for the golf course will be very expensive.
Resident Constantine Xinos stated his displeasure with the Village's Bath and Tennis
operations and the Board and staff should concentrate on public service.
11. INFORMATION & UPDATES
A. VILLAGE MANAGER
Manager Niemeyer gave a brief summary of additional information that will be provided to
the Board members due to their concerns and questions presented at tonight's meeting.
B. VILLAGE CLERK
Clerk Pruss made the following announcements
1) The Clerk's office continues to register voters.
2) No solicitation stickers are available at Village Hall.
3) She wished everyone a Happy Thanksgiving.
C. TRUSTEES
Trustees Aktipis asked Manager Niemeyer to present all other issues that the Citizen's
Finance Committee had at the next Board meeting so the issues can be voted on.
D. VILLAGE PRESIDENT
President Craig wished everyone a happy and safe Thanksgiving.
12. ADJOURN TO CLOSED MEETING To discuss collective negotiating matters between the
public body and its employees or their representatives, or deliberations concerning salary
schedules for one or more classes of employees (2c2)
Motion by Trustee Zannis, seconded by Trustee Aktipis to discuss collective negotiating
matters between the public body and its employees or their representatives, or deliberations
concerning salary schedules for one or more classes of employees (2c2).
ROLL CALL VOTE:
Ayes: 5— Trustees Aktipis, Carson, Moy, Wolin, and Zannis
Nays: 0— None
Abstain: 0 — None
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Absent: I — Trustee Moy (left at 8:15 pm)
This meeting was adjourned to Closed Meeting at 9:16 pm.
13. ADJOURNMENT
Motion by Trustee Wolin, seconded by Trustee Moy to adjourn the Regular Meeting of the
Board of Trustees at 10:41 pm. VOICE VOTE: Motion carried.
ATTEST:
/s/ Charlotte K. Pruss
Charlotte K. Pruss
Village Clerk
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