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Minutes - 11/17/2009 - Board of TrusteesMINUTES OF THE NOVEMBER 17, 2009 SPECIAL MEETING OF THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF OAK BROOK APPROVED AS WRITTEN ON AUGUST 10, 2010. 1. CALL TO ORDER The Special Meeting of the Village Board of Trustees was called to order by President Craig in the Samuel E. Dean Board Room of the Butler Government Center at 7:02 p.m. 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, Mom Saiyed, Gerald Wolin. ABSENT: Trustee Zannis IN ATTENDANCE: David Niemeyer, Village Manager; Blaine Wing, Assistant Village Manager; Robert L. Kallien, Jr., Director of Community Development; Sharon Dangles, Acting Finance Director; Tom McEllin, Fire Chief, Sue Madorin (after 9:00 P.M), Acting Library Director; Michael Hullihan, Public Works Director; Thomas Sheahan, Chief of Police and Trey VanDyke, Golf Club Manager. 3. A. 2010 BUDGET WORKSHOP — President Craig stated that the Meeting Schedule was available on the table at the entrance to the Board Room. 1. General Fund Revenues 2. General Fund Expenditures in the Following Departments: • Legislative and General Management • Financial Services • Community Development • Public Works — Mosquito Control; Building & Grounds; Municipal Building Improvements 3. Self- Insurance Fund 4. Infrastructure Revenues 5. Infrastructure Expenses in the Following Departments: • Public Works • Engineering & Capital Projects 6. Water Operations B. 2010 Budget — Power Point Presentation — Manager Niemeyer presented a power point presentation on the Village's 2010 budget. Following the presentation, Manager Niemeyer introduced Norma Lauder of the Citizen Finance Advisory Committee. Norma presented a Power Point entitled Third Committee Interim Report dated November 17, 2009. VILLAGE OF OAK BROOK Minutes Page 1 of 5 SPECIAL MEETING OF NOVEMBER 17, 2009 Trustee Wolin thanked staff and the Finance Committee for their efforts. Trustee Wolin then asked Manager Niemeyer for a clarification on the process for how all the recommendations that need to be made during this budget process will be addressed. Manager Niemeyer stated that possibly after each item is presented as noted on the Schedule, the Board can vote or if there are questions at any point we will have to have a consensus on how we should proceed. Trustee Aktipis stated that he believes and understands the process to be a work in progress. Therefore, he would like to go through this process as passing items in principal with the notion that adjustments will continue as the Board moves forward during the process. President Craig and several Trustees thanked the Finance Committee for all their hard work and concurred their thoughts that the Finance Committee has done a fabulous job in a very short amount of time. President Craig requested a five minute recess and then turned the meeting back over to Manager Niemeyer who then went back to the Workshop Schedule. 3. A. 2010 BUDGET WORKSHOP 1. General Fund Revenue Manager Niemeyer pointed out that this is the area where a lot of tough decisions will need to be made. Some of the major issues are the new revenues such as Hotel /Motel Tax for funding a Police Beat in the Hotel District, Business Registration License Program, the already approved Towing Fee and the Finance Committee's recommended 5% Sales Tax Reduction may need to be increased; and also using a Food and Beverage Tax to supplement any shortfalls. Trustee Wolin suggested that they start with the biggest item; that being the proposed 5% Sales Tax Reduction. First, Trustee Wolin clarified that the 5% Sales Reduction is from the actual 2009 numbers not from the 2009 budgeted numbers. While Trustee Wolin agreed with the Finance Committee's suggestion that it may be wiser to wait for the actual December numbers before a decision is made, he is comfortable with the 5% reduction right now. Trustee Carson pointed out that he believes the Finance Committee is suggesting that there be some contingencies either directly on the revenue side or on the expense side, or a combination of both. Trustee Carson is hesitant that staying with the 5% is being too optimistic, but the Board could proceed with the 5% while building some other contingencies that implement additional revenue or additional expense reductions. He concurred with Trustee Wolin that sales tax revenue is the most unpredictable. Manager Niemeyer stated that though there has not been a dramatic increase in retail revenue, the percent from year to year is not going down as much either. The 5% right now is conservative, but just as Trustee Aktipis stated; this is a work in progress and he believes that if needed, further adjustments can be made. Motion by Trustee Wolin, second by Trustee Saiyed, to approve only half of the recommended $150,000 which is $75,000 for Adjudication Fee and delete revenue for the Business Registration License fee. ROLL CALL VOTE: Ayes: 5 - Trustees Aktipis, Carson, Moy, Saiyed, Wolin. Nays: 0 - None. VILLAGE OF OAK BROOK Minutes Page 2 of 5 SPECIAL MEETING OF NOVEMBER 17, 2009 Abstain: 0 —None, Absent: 1 — Zannis. Motion carried. Motion by Trustee Aktipis, seconded by Trustee Wolin, to move forward with the budget projecting a 5% Revenue Sales Tax Reduction. ROLL CALL VOTE: Ayes: 5 - Trustees Aktipis, Carson, Moy, Saiyed, Wolin. Nays: 0 - None. Abstain: 0 — None. Absent: 1 — Zannis. Motion carried. Manager Niemeyer pointed out the next item that needs to be discussed is Fire Inspection Fees. As of right now we have no revenue available for Fire and Inspection Fees. Trustee Saiyed asked what we were going to charge for the Business Registration Fee. Manager Niemeyer explained that there are two ways to proceed; either a flat fee or a fee based on a per employee ratio. The goal is to bring in $100,000 in revenue each year which would also cover the expenses. Trustee Wolin asked about the last item which was the Food & Beverage Tax. Manager Niemeyer explained that the Committee included that as a contingency. 2. General Fund Expenditures in the Following Departments: • Legislative and General Management Manager Niemeyer briefly went over some of the highlights. One highlight being consulting services which accounts for $60,000 for Lobbyist and $35,000 for Police Staffing Study. The legal budget is also up by $60,000 attributed to upcoming Collective Bargaining issues. Another minor item is $5,000 for customer service training. However, some of the savings can be seen in the Clerk's budget of the $125,000 and Information Services down approximately $235,000 due to staff reductions. Trustee Wolin pointed out he had not seen any Village Board minutes in quite some time and questioned if there is plan to get that task accomplished. Manager Niemeyer acknowledged that the elimination of positions, including the Deputy Clerk who was responsible for the minutes, has certainly put us behind. Manager Niemeyer indicated that he has been informed that the Chamber of Commerce will soon be requesting an increase in the.proposed $30,000 in the Economic Development line item. Trustee Carson questioned whether or not the Village has ever looked into.any type of Endowment funds. Trustee Aktipis stated that he thought that was a very good idea and Manager Niemeyer suggested that a conversation at a later date would be scheduled. • Financial Services Manager Niemeyer commended Acting Finance Director Sharon Dangles for the early distribution of the budget. Acting Finance Director Sharon Dangles presented Financial Services Program, 211 salaries decreased by 4.5% due to a lower salary for a newly hired Finance Officer when the Village hires and Program 221 shows a decrease of 10.5% in accounting and reporting salaries. VILLAGE OF OAK BROOK Minutes Page 3 of 5 SPECIAL MEETING OF NOVEMBER 17. 2009 Installment Contract Debt Service extended by two years and reduced the interest rate and show cash flow savings of $75,000. Sharon stated she would discuss Police & Fire Pension Fund more at the next meeting. • Community Development Community Development Director Robert Kallien proposed a budget of approximately $700,000; a decrease of $60,000 from 2009 due to the retirement of a Building Inspector and the position has not been filled. • Public Works — Mosquito Control; Building & Grounds; Forestry; Municipal Building Improvements Public Works Director Mike Hullihan stated that these are the areas under the Corporate General Fund as the rest of the Public Works budget is in the Infrastructure Fund. Mosquito control figures are reduced by $6,000 from 2008 due to the fact that catch basin larvacide treatment is now done in house. Building & Grounds budget accounts for in -house labor of Butler Government Center, Library and Fire Stations, and Public Works all functioning. Cuts have been made including changing from live plants to silk plants, different paper towels, less frequent janitorial services, etc. The current budget is $393,510. The forestry budget provides for healthy parkway trees including disease control and the leaf disposal program. The program budget of $234,070 also includes Gypsy Moth Spraying. Municipal building improvements are capital improvements over $5,000 that includes such things as upgrading lighting systems from old style fluorescent lighting due to the obsolete parts. These projects are partially funded (approximately $18,000) by DCEO grants. The $175,500 budget also includes a project for modification to the HVAC system which will lower the overall electric costs. Manager Niemeyer suggested that Mike Hullihan just continue with what would have been #5 from the workshop schedule: Infrastructure Expenses in the Following Departments: • Public Works • Engineering & Capital Projects Mike Hullihan reported some of the projects to be completed in 2010 include the Jorie Boulevard LAPP being constructed with 70% federal funds and 30% Village funds; 35`h Street Resurfacing, Micro - Paving and Crack Sealing at various locations throughout the Village. Manager Niemeyer suggested that Mike Hullihan just continue with what would have been 96 from the Workshop Schedule: Water Operations Mike Hullihan reported significant capital projects include SCADA system improvements at $150,000. Another significant item is that the Village has now captured visually through our GIS system the history of water main breaks. We have now prioritized breaks so in VILLAGE OF OAK BROOK Minutes Page 4 of 5 SPECIAL MEETING OF NOVEMBER 17, 2009 2010 the Board will see the first projects being done which is Phase I of the Timber Trails Subdivision /351h Street (East of Meyers) water main replacement. Mike informed the Board that they will be seeing similar projects over the next five years. These projects are budgeted at $1.7M and $947,000 respectively. Trustee Aktipis suggested a possible study to determine how we are going to fund these projects over the next five years. President Craig pointed out that we have raised the fees for out of Village areas. 3. Self Insurance Blaine Wing explained that this fund is primarily for employee Health & Dental Insurance. The 2010 Budget reflects an increase in employee contributions for the cost of Health Insurance. Our current Blue Cross/Blue Shield provides the best rate. C. Business Registration Program — To be continued. D. Hotel Committee's Support of Police Beat for Hotels — To be continued. E. Adjustment to 2010 Library Budget— To be continued. F. Citizens Finance Advisory Committee — Third Committee Interim Report — To be Continued. 4. RESIDENTNISITOR COMMENT — To be continued. 5. BOARD DIRECTION TO STAFF — To be continued. 6. MEETING WILL BE ADJOURNED TO BE RECONVENED ON FRIDAY, NOVEMBER 20, 2009 AT 7:00 P.M. Motion by Trustee Aktipis, seconded by Trustee Carson to adjourn the Special Meeting of November 17, 2009 at 9:40 P.M. to be reconvened on Friday, November 20, 2009 at 7:00 P.M. VOICE VOTE: Motion Carved. ATTEST: /s/ Charlotte K. Pruss Charlotte K. Pruss Village Clerk VILLAGE OF OAK BROOK Minutes Page 5 of 5 SPECIAL MEETING OF NOVEMBER 17, 2009