Minutes - 12/04/1999 - Board of TrusteesF
VILLAGE OF OAK BROOK 2000 BUDGET
WORKSHOP Minutes DECEMBER 4, 1999
UNOFFICIAL UNTIL APPROVED AS
WRITTEN y/ OR AS AMENDED BY
VILLAGE BOARD ONl
MEETING CALL:
The 2000 Budget Workshop was called to order by President Bushy in the
Samuel E. Dean Board Room of the Village Commons at 10:00 a.m. Pledge
of Allegiance was given.
2. ROLL CALL:
The Deputy Clerk called the roll with the following persons
PRESENT: President Bushy, Trustees Kenny, McInerney and Savino.
ABSENT: Trustees Butler, Caleel and Craig.
IN ATTENDANCE: Stephen B. Veitch, Village Manager; Michael A.
Crotty, Assistant Village Manager; Dale L. Durfey, Jr., Village Engineer;
Debra Jarvis, Fire Chief, Bruce Kapff, Director of Information Services &
Purchasing; Robert L. Kallien, Jr., Community Development Director;
Darrell J. Langlois, Finance Director /Treasurer; Ruth A. Martin, Library
Director; Michael J. Meranda, Public Works Director; Allen W. Pisarek,
Police Chief, Bonnie Sartore, Bath & Tennis Club Manager; Trey VanDyke,
Golf Club Manager; and Thomas McEllin, Firefighter.
�. 2000 BUDGET WORKSHOP:
President Bushy apologized for the delay in starting the Special Board
Meeting regarding the Village of Oak Brook's 2000 Budget.
President Bushy emphasized the Board's appreciation to the Finance
Department and everyone else that participates in the planning and
preparation of the Village of Oak Brook Proposed 2000 Municipal Budget.
Village Manager Veitch stated that the proposed 2000 Village Budget was
circulated to the Village Board on November 5, 1999 and placed on file for
public review on November 97 1999 at the Oak Brook Public Library and
Village Hall. A Public Hearing is scheduled for 7:15 p.m. on Tuesday,
December 14, 1999.
He indicated that the Budget Calendar accepted by the Board on January 12,
1999 was included in the Overview and Structure section of the 2000
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2000 BUDGET WORKSHOP Minutes Page 1 of 10 December 4, 1999
Municipal Budget document. An ordinance to adopt the budget is being
prepared and will be on the Active Agenda for the Regular Board of Trustees
Meeting on December 14, 1999.
Village Manager Veitch indicated that the Village of Oak Brook uses a
methodology that combines traditional program budgeting and line item
control with a management by objectives system. He indicated that the
annual budget is preceded with the development of a Five -Year Financial
Plan. The adopted Mission Statements for the Village provide long -range
policy guidance, and the Village Board Objectives provide short-range policy
guidance. The Village Board's policy ordinance. on Finance, Taxation and
Budget (Ordinance # 1999 -FI -S -957) also provide both long and short-range
guidance to the budget process. In addition with other Board directives, the
ordinance requires the Village of Oak Brook to:
• Operate the Village without a general real estate tax.
• Accumulate a cash reserve in advance of major capital projects (which
helps to avoid long term debt).
• Maintain a cash balance of at least six months expenditures in the General
Corporate Fund.
• Annually test the incremental growth in General Corporate Fund
operating expenditures against the incremental growth in revenues
(striving to hold expenditures growth within the limits of new revenues).
• Operate enterprise activities on a self - supporting basis.
• Annually review the need for and uses of the utility tax.
The 2000 Municipal Budget provides not only for maintenance, but for
substantial enhancement of the high levels of public service that the
community expects from the Village of Oak Brook. In addition to meeting
the requirements specified in the ordinance the utility tax on natural gas and
electric service has been reviewed in connection with the Five -Year Financial
Plan and has been re- established for 2000 at 3 percent, two percent below the
statutory maximum rate. The utility tax on local and intrastate telephone
service has been repealed. A two percent telecommunications tax has been
imposed effective January 1, 2000 to assist in funding the operating and
capital needs of the General Corporate Fund. Although the exhibit on page
F -11 indicates that incremental expenditures in the General Corporate Fund
exceed incremental revenues, this is due solely to the allocation of
telecommunications tax revenue to the Infrastructure Fund for the first four
months of the year. The projected ending balance is equal to or greater than
the corresponding figure in the 2000 -2004 Five -Year Financial Plan for every
fund except the Garage Fund and the Police and Firefighters' Pension Funds.
VILLAGE OF OAK BROOK
2000 BUDGET WORKSHOP Minutes Page 2 of 10 December 4, 1999
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The total budget for operating and capital expenditures (excluding non -
operating and interfund activities) is $30,801,620. This is an increase of
$185,900, or 0.61 percent from the 1999 budget. The substantial increase in
the budget for operating activities is nearly offset by a decrease in the budget
for capital projects (reflecting completion of two major projects at the Sports
Core) to result in this very small increment of overall change.
The total expenditure budget for 1999 is $36,105,620 on total revenues of
$39,066,300, a decrease of $542,300 or 1.48 percent from the comparable
figure in the 1999 budget.
In accordance with generally accepted accounting principles (GAAP) as they
apply to governmental entities, these budgeted amounts include interfund
transfers, interfund loans and internal service charges. The GAAP basis of
accounting requires inclusion of these items in order to properly account for
activity in each fund and the cost of each program. On a cash basis, this has
the effect of overstating both revenues and expenditures since the cash
position of the Village is not affected by these transactions. Net of these
interfund activities, the 2000 expenditure budget is $31,684,382 on total
revenues of $34,375,065.
Total unrestricted cash balances (i.e., excluding pension funds) are budgeted
to increase approximately $775,000 from the estimated January 1, 2000
balances (see Page S -12). The increase in cash balances is due primarily to
the infusion of proceeds from installment contract certificate financing of a
portion of the Municipal Building Project ($3.5 million) which is not fully
offset by payments on projects in 2000.
Itemized budgeted revenues are found on or following each fund summary in
the Analysis of Funds section of the budget document. Highlights are as
follows:
Revenue from the 1 percent share of the Retailers Occupation Tax (a.k.a.
General Sales Tax) of $11,553,000, based on a revised 1999 estimate of
$11,200,000 and the modest growth assumptions made in the Five -Year
Financial Plan.
State Income Tax revenues of $667,940, 2.8 percent above the 1999 estimate
and 7.3 percent over the 1999 budget of $622,315.
Total revenue from the Telecommunications Tax of $975,800. $614,000 of
this amount is budgeted in the General Corporate Fund and the remaining
$361,800 in the Infrastructure Fund.
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2000 BUDGET WORKSHOP Minutes Page 3 of 10 December 4, 1999
Revenue from sale of installment contract certificates in the amount of $3.5
million, representing approximately half of the total project budget, as
presently defined, for the Municipal Building Project.
Motor Fuel' Tax revenues of $257,200, 10 percent above the 1999 estimate
and approximately 18 percent above the 1999 budget of $217,100
Utility Tax revenues of $1,038,973, (about 40 percent below the 1999
estimate) reflective of the elimination of the tax on local and intrastate
telephone service. The tax rates in effect for 2000 will be 3 percent on
electric and natural gas service only. These rates are unchanged from 1999.
Revenue from sale of water of $3,238,200, unchanged from the 1999 budget
and estimate.
Revenue from the Telecommunications Infrastructure Maintenance Fee
(IMF) and cable television franchise fees of $542,700 is 21 percent higher
than the 1999 budget.
Revenue to the Sports Core Fund from sale of real estate in the Westchester
Park area and compensation for right -of -way for 31" Street amounting to just
over $2.3 million. These funds are earmarked as the funding source for the
Sports Core Capital Improvement Account.
The total 2000 operating budget is $22,318,545. This is an increase of 6.38
percent from the 1999 budget. Adjusted for inflation, budgeted operating
expenditures for 2000 are about 3.6 percent above the 1999 budget.
The 2000 operating budget reflects a number of initiatives aimed at
strengthening management . of various Village departments and improving
public services. In order to accomplish these objectives the budget includes a
substantial number of new personnel. In a number of instances, costs
associated with new personnel are offset in other ways.
The total change in full -time equivalent (FTE) staff positions reflected in the
2000 budget is 11.75. Salary costs of three of the additional full time
employees budgeted are fully offset by reductions in part-time or seasonal
wage costs that have not been reflected in the FTE summary in the past.
The 2000 budget for full -time salaries is based on a top -of -grade increase of
up to 3.5 percent for non - represented personnel. Based on changes in the
consumer price and employment cost indices, as well as the adjustments
made and contemplated by the Village's arbitrated comparable communities,
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2000 BUDGET WORKSHOP Minutes Page 4 of 10 December 4, 1999
the Village Manager will be recommending an actual top -of- -grade adjustment
of 3.3 percent.
Collective bargaining agreements with the Fraternal Order of Police and
Teamsters Local 714 provide for general increases of 3.5 percent and 3.2
percent for the Police and Fire bargaining units respectively.
Operating budget highlights, by department include:
Department 1 - Legislative and General Management
• The elimination of the contribution to IRMA for 2000 due to the
availability of member reserve funds to cover the contribution.
• A $100,000 reduction in the contingency account in the Board of Trustees
budget made possible by the conclusion of matters that necessitated the
larger contingency amount in the past.
• An additional Information Services Technician to improve speed and
quality of implementation and maintenance of information technology
applications in Village operations.
• Substantial amounts for entry level and promotional testing by the Board
of Fire and Police Commissioners required in 2000 pursuant to the
statutory cycle.
• A significant reduction in legal expenses for collective bargaining.
• Classification and compensation study for non - represented Village
personnel done every three years pursuant to the Board's policy.
• In response to the Board's suggestion, the Community Events budget
includes resources to fund an enhanced Independence Day fireworks
display in observance of the year 2000.
Department 2 - Financial Services
• Upgrade of an Account Clerk position to Accountant in order to add
capacity to the department - the cost of the upgrade will be more than
offset by reduced contractual services for pension fund accounting going
forward.
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2000 BUDGET WORKSHOP Minutes Page 5 of 10 December 4, 1999
Department 3 - Public Works
• One staff member is to be reassigned from the Streets Division to the
Vehicle Fleet Division in response to work load demands.
• Year one of a three -year program to upgrade the design and replace street
name signs throughout the Village.
Department 4 - En ineering
• Addition of an Engineering Technician predicated on the assumption that
the explosion of activity by telecommunications service providers and
others working in the public right -of -way will continue and in order to
begin a long- planned and badly needed project to create accurate maps
( "atlases ") of utilities in the Village.
Department 5 - Library
• Various expenses (many one -time) related to preparations for and
execution of the move into a new facility, currently planned for very late
in the year.
• Addition of 2.25 full -time equivalents is budgeted for the fourth quarter
based on the construction schedule.
Department 6 - Police
• Appointment of a Deputy Chief of the Department.
• An additional (civilian) Community Service Officer, bringing the
complement to three. This addition will assist in meeting demands for
service and delay the need to -add sworn personnel.
• Two years of salary adjustments for bargaining unit members (no
increase was budgeted in 1999 while negotiations were ongoing).
Department 7 - Fire
• Reorganization of the Department based on the 1999 staffing study and
the splitting of the Fire and Community Development Departments. New
programs for Special Teams Operations and Training, Education and
Safety have been established. The Fire Prevention and Public Education
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2000 BUDGET WORKSHOP Minutes Page 6 of 10 December 4, 1999
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program takes the place of Code Enforcement, which formerly included
all fire and building code enforcement activity.
• Addition of 4.5 full -time equivalent personnel.
• A Captain -level Operations and Training Officer position.
• Two Firefighter/Paramedic positions (plus one additional
Firefighter/Paramedic under the contract with Paramedic Services of
Illinois) as the first step toward reaching the three - person engine /two-
person truck staffing standard.
• A part-time Secretary position is upgraded to full -time.
• A full -time Inspector position (salary offset by a reduction in part time
inspection hours) in order to improve the quality and continuity of fire
inspection service and follow -up.
• Equipping one front -line engine to be equipped to handle treatment of
advanced life support (ALS) patients.
• Five years of salary adjustments for Firefighters and
Firefighter/Paramedics and three years of adjustments for Lieutenants.
No adjustments were included in the 1996, 19971 1998 or 1999 budgets
(1998 or 1999 in the case of the Lieutenants) while negotiations were
ongoing.
• Resources to fund contributions mandated by increases in pension
benefits granted by the General Assembly and Governor in 1999.
Department 8 - Sports Core
• Consolidation of the food and beverage operation into one division and
one budget program.
• Conversion of one of the Associate Golf Professional positions from
seasonal to full time.
Department 9 - Community Development
• A full -time Building Inspector (salary offset by a reduction in part time
hours) and additional training in order to begin to respond to the need to
have certified inspection personnel on staff.
VILLAGE OF OAK BROOK
2000 BUDGET WORKSHOP Minutes Page 7 of 10 December 4, 1999
The 2000 budget for capital projects and computer hardware and software
totals $8,483,075, a reduction of $1.15 million or 12 percent from the
comparable figure in the 1999 budget. The budget to budget change
primarily reflects completion of the golf clubhouse and irrigation system
projects. Highlights include:
Library Construction
Municipal Building Project
Bath & Tennis Club clubhouse additions
Street Improvements
Polo Road
Crack Sealing & Pavement Rejuvenation
Water Main Replacements
Maintain Wells and Reservoirs, Upgrade System Controls
Water Study & Evaluation of System Storage Capacity
Correction of Drainage Problems & Swale Reshaping
Safety Pathway System
Computer Hardware & Software
$3,500,000
400,000
$375,000
1,500,000
174,000
198,000
250,000
200,000
10,000
100,000
468,000
442,575
The 2000 Street Improvements include the following streets: Woodside
Estates, Harger Road, portion of Regent Drive, Adams Road, Merry Lane,
Forest Gate Road and Castle Drive. The Water Main Replacements include
35`h Street and Fullersburg areas.
President Bushy asked for comments and or questions from the Board.
Trustee McInerney referred to the Overview and Structure section,
Cumulative Percentage Increase (graph S -13) in the budget document and
indicated that CPI will have to be monitored and that the Village should
continue to try to match additional expenses with revenues.
President Bushy referred to the Summaries section and asked for clarification
regarding the Leaf Vacuum in the Fire Department's budget.
Fire Chief Jarvis indicated that the existing leaf vacuum is no longer operable
and that it was used frequently for grounds maintenance.
President Bushy asked for clarification of Piercing Nozzles.
Fire Chief Jarvis indicated that this allows firefighters to pierce through a
wall and spray with water with lesser damage to the wall.
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2000 BUDGET WORKSHOP Minutes
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Page 8 of 10 December 4, 1999
President Bushy asked for clarification regarding the Waterfowl Ramps in the
Golf Club's proposed budget.
Golf Club Manager VanDyke indicated that this was a permanent ramp,
which can be moved if necessary, for baby ducklings.
Trustee Savino indicated that he had been contacted by some residents who
where concerned with these animals drowning in the pond, and that he had
asked staff to research a solution for the ducklings to get out of the pond.
Trustee McInerney indicated that under the Analysis of Funds, the four -
month and six -month tests seem to be getting close to failing the six -month
test in the fifth year (2004). He cautioned that the Village keep in mind the
potential reduction in sales tax revenue as a result of sales on the Internet.
President Bushy indicated that the Village should continue to reassess the
Leaf Pick -Up Program and the financial feasibility of the program.
Village Manager Veitch indicated that the budget for this program is included
under Public Works, Forestry.
Public Works Director Meranda indicated that the largest problem they
encounter is locating an area for the leaf disposal. Currently, the leaves are
stored at the Sports Core until they are picked up and transported to farms in
Plainfield. He indicated that although there are other municipalities that
provide this service to its residents, Oak Brook is among a minority who
offer this service.
President Bushy reiterated that the Village may have to make a decision in
the near future regarding the Leaf Pick -Up Program.
President Bushy asked if the Police K -9 dog would soon be retiring.
Police Chief Pisarek stated that Mario will likely retire at the end of the year.
He pointed out that Mario has served for approximately seven years.
President Bushy indicated that the implementation of the Food and Beverage
Division for the entire Sports Core was suggested by the Board of Trustees as
a way of improving service and improving profit potential. She inquired if
the folding wall for the Golf Clubhouse was included in the 2000 budget.
She indicated the importance to optimize as much space as possible in order
to gain revenue.
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Golf Club Manager VanDyke indicated that this item was scheduled to be
included in the 2001 budget.
Village Manager Veitch indicated that if it was discovered that the business
demand warranted the improvement, the Village could likely find a way to
provide it during 2000.
President Bushy thanked everyone on behalf of the Board of Trustees for
their work on the budget and attendance at the 2000 Budget Workshop.
4. ADJOURNMENT:
Motion by Trustee McInerney, seconded by Trustee Kenny to adjourn the
2000 Budget Workshop at 11:40 a.m. VOICE VOTE. Motion carried.
ATTEST:
0
Linda K. Gonnella, CMC /AAE
Village Clerk
r1* h11 N /200013 W
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2000 BUDGET WORKSHOP Minutes Page 10 of 10 December 4, 1999
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