Minutes - 12/06/1997 - Board of Trustees\`ILLAGE OF OAK BROOK
I 200 0.-\K BROOK ROAD
PHONE. n �0 x)90. 3000
FA t 63c1 990-0,S76
NOTICE OF SPECIAL MEETING
rr eu. i r
NOTICE IS HEREBY GIVEN that the Village President and Board of Trustees have called
a Special Board of Trustees Meeting for Saturday, December 6, 1997 at 9 :00 a.m. in the Samuel E.
Dean Board Room of the Village Hall located at 1200 Oak Brook Road, Oak Brook. The Agenda for
this meeting is as follows:
1
1. Meeting Call - Pledge of Allegiance
2. Roll Call
3. 1998 Budget Workshop
4. Adjournment
VILLAGE OF OAK BROOK
In \accordance with the provisions of the Americans with Disabilities Act, any individual who is in
need of a reasonable accommodation in order to participate in or benefit from attendance at a public
meeting of the Village of Oak Brook should contact Mike Crotty, the Village's ADA. Coordinator at
(630) 990 -5738 as soon as possible before the meeting date.
rmr:botnot
M
0
VILLAGE OF OAK BROOK
BUDGET WORKSHOP Minutes
UNOFFICIAL. UNTIL APPROVED AS WRITTEN x
OR AS AMENDED BY VILLAGE BOARD ON
Lanua ry 13, 1998
The Budget \ Vorkshop was called to order by President Bushy in the Samuel E. Dean
Board Room of the Village Commons at 9:08 a.m. Pledge of Allegiance was given.
`The Clerk called the roll with the following persons
PRESENT: President Bushy, Trustees Kenny, McInerney and Shumate.
ABSENT: Trustees Bartecki, Caleel and Savino.
IN ATTENDANCE: Stephen B. Veitch, Village Manager; Michael A. Crotty, Assistant
to the Village Manager; Debra J. Jarvis, Fire Chief/Building Commissioner; Darrell J.
Langlois, Finance Officer/Treasurer; Ruth A. Martin, Library Director; Michael J.
Meranda, Superintendent of Public Works; Allen W. Pisarek, Chief of Police; Bonnie
Sartore, Bath & Tennis Club Manager; Trey VanDyke, Golf Club Manager; Lt. William
Cavalier; Officer Mary Jo Nugent; and Nancy Pauley, Accountant.
..
President Bushy commended staff and the Finance Department for their presentation of
the 1998 Budget and team effort in preparing the document. An Executive Summary of
the Village of Oak: Brook Proposed 1998 Municipal Budget was available for those in
attendance of the meeting.
Village Manager Veitch stated the propo,,ed 1998 Village Budget was circulated to the
Village Board on November 7. 1997 and placed on file November 11, 1997 for public
review at the Oak Brook Public Library and Village Hall reception desk. A Public
Nearing is set for 7:15 p.m. on Tuesday, December 9, 1997.
The Budget incorporates the Mission and Vision statements adopted by the Board in
1995, and reviewed annually since; and Ordinance 95 -FI -S -793, the Village Board's
policy ordinance on Finance. Taxation and Budget.
Based on that, the 1998 Municipal Budget reflects continued adherence to three basic
principles that have underpinned Village budgets for several years:
1, Maintenance of the high levels of public service that the- community expects from
the Village of Oak Brook.
VILLAGE OF OAK BROOK
BUDGET WORKSHOP Minutes Page 1 of 7 December 6, 1997
._
C�
?. Provision of the resources needed to achieve the specific objectives established by
the Village l3oard and staff in each program area.
3. High degree of confidence that the projected year -end financial condition in each
fund will be equal to or better than-that projected in the curr.,,et Five-Year Financial
Plan.
The total budg,, for operating and capital expenditures (excluding non - operating and
interrfund activities) is $26,319,490, a decrease of $5,100, or 0.02 percent, from the
comparable figure in the 1997 budget. (Increases in operating costs are offset by a
decrease in projected outlays associated with construction of the new Oak Brook Public
Library due to the delay in the project schedule caused by litigation over the selected
site.)
The total expenditure budget, ��y non - operating and interfund activities, is
$30,226,600 on total revenues of $29,687,710. The total expenditure budget reflects an
increase of 2.90 percent from the 1997 budget. Total restricted cash balances (i.e.,
excluding pension funds) are budgeted to decrease approximately $2.2 million from the
estimated January 1, 1998 balances.
Capital improvements for which funds have been accumulated in prior years are the
primary causes of the overall decline in cash balances. In addition, the cash balance in
the Water Fund is also expected to decrease as a result of continuing to pass through to
water customers the DuPage Water Commission rebates and freed -up bond reserves
through the artificially low water rate that has been in effect since 1995.
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 of $11,360,000, based
on a revised 1997 estimate of $11,100,000 and the modest growth assumptions made in
the Five -Year Financial Plan (Growth in same store sales of 2 percent, phasing in of new
retail outlets, and growth in "corporate" sales of 0 percent.) Based on a preliminary
December figure, it appears that the 1997 total will be about $11.05 MM, making 1997
the Village's second best sales tax year ever (slightly lower than 1995), and 3.4 percent
above 1996. '
State Income Tax revenues of $585,595, 3 percent over the 1997 estimate and about 8
percent over the 1997 budget of $541,255.
Motor Fuel Tax revenues of $213,900, unchanged from the 1997 estimate and
approximately 4 percent below the 1997 budget of $223.000 duc to a change in the
formula that was effective in 1996.
VILLAGE OF OAK BROOK
BUDGET WORKSHOP Minutes Page 2 of 7 member 6, 1 997
e7 C�liaat3
Utility Tax revenues of $1,700,000, a decrease of approximately 15 percent from the
1 997 estimate. The decrease is attributable to the reduction in the tax rates on electric
and natural gas service from 4 percent to 3 percent effective January 1, 1998.
Revenue from retail sale of water of $3,260,000, a slight increase from the '.997 budget.
The current retail rate of $2.35 per 1,000 gallons, one of the lowest among DuPage Water
Commission customers, will not change in 1498 and is projected to extend at least
through 1999.
Revenue from the new Telecommunications Infrastructure Maintenance Fee (IMF) of
$?80,000 (part of the total budget for franchise fees of $286,000).
The total 1998 operating budget is $20,037,530. This is an increase of 3.49 percent over
the comparable figure from the 1997 budget. Adjusted for inflation, budgeted operating
expenditures for 1998 are about I% above the 1997 budget, very comparable to 1996 and
somewhat lower than'the 1995 Budggt,
The comparison of the change in General Corporate Fund revenues to the change in base
operating expenses (budget to budget) indicates that, in 1998, the change in the net
operating General Corporate Fund budget is expected to be greater than the increase in
revenues to the Fund. The difference is attributable to several factors that are enumerated
in the transmittal letter, including:
Inclusion of salary adjustments for union personnel in the Police Department retroactive
to January 1, 1996.
Increases in health insurance costs attributable to high claim costs in the most recently
completed plan year as compared to costs in the previous two plan years, which were
aberrantly loci.
Increases in operating expenditures in the Library, consistent with and scheduled within
the Five -Fear Financi -.i Plan.
Notwithstanding this particular comparison, General Corporate Fund revenues remain
sufficient to more than adequately cover operating expenses and substantial capital
expenditures annually and the Fund is once again expected to operate at a surplus in
1998, excluding capital outlays for which funds have been accumulated in other surplus
years. (The unrestricted cash balance in the General Corporate Fund is budgeted to end the year at
approximately $13.1 Million, or $650,000 above the year -end 1998 projection in the Five -Year Financial
Plan. Correcting for the decrease in outlays budgeted for the Library project, the budgeted year -end cash
balance is consistent with the Five -Year Financial Plan projection and roughly two times the level specified
in the policy ordinance,)
The net change in full-time equivalent (FTE) regular (excluding other than seasonal and
situational) staff positions reflected in the 1998 budget (budget-to-budget) is 1,0 FTE.
VILLAGE OF OAK BROOK
BUDGET WORKSHOP Minutes page 3 of 7 December 6, 1 7
0 0
rol : 1 FTI: = � l Police Officer position in Program 635, Crinic Prevention in order to
continue to increase and enhance crime prevention programs and activities in accordance
with program objectives in that area (planned for 1998 in the last two Five -Year Financial
Plans).
-.5 FTE == Elimination of one part time Records Clerk position. taking authorized staffing
from 4.5 FTE to 4 FTE (all full time lather than the 3FT and 2PT structure in place
through 1996).
Public WcQrks: -1 FTE = Elimination of a supervisory position in the Buildings and
Grounds area.
j�ihrarv: .5 FTE = 1 part time Circulation Clerk position in Program 511, General
Operations.
.5 FTE = Additional part time hours in Program 521, Technical Services.
.5 FTE = Upgrading an existing part time Reference Librarian position to full time in
order to keep up with growth in demand for services there.
The overall Library budget is in line with the Five -Year Financial Plan projection.
The budget for full -time salaries is based on a 3.0 percent average top -of -grade increase.
While this increment has been based on the change in the applicable consumer price
index for the twelve months ended September 30 during the last two years, 1998 is the
year when the triennial classification and compensation study will be effective, consistent
with Board policy. That study is presently nearing completion (and needs to be
coordinated with the arbitrator's award regarding Police Officers). It is reasonable to
expect that some pay ranges will increase, some will decrease, and some will not change,
but that the net effect of the changes can be accommodated within this budget.
No pay range adjustments have been budgeted for firefighters, firefighter /paramedics or
fire lieutenants represented by Local 714 of the International Brotherhood of Teamsters.
Should a settlement be reached during 1998 with Local 714, or should interest arbitration
ensue and conclude with an arbitrator's award on the economic components of a labor
agreement, the necessary adjustments, if any, to the affected program budgets will be
recommended.
Highlights of the operating program budgets are noted on the Program Summary pages
that accompany each line item schedule. It should be noted that the 1938 budget
inaugurates use of a new chart of accounts designed to be simpler to use and understand
than the previous system. The most significant changes are found in the supplies and
operations and contractual categories, where the new system more appropriately classifies
commodities and services. The 1996 and 1997 figures in each line item schedule have
VILLAGE OF OAK BROOD
BUDGET WORKSHOP Minutes Page 4 of 7
le;� (
December 6, 1997
� � � v �.a �� LX' i i h a I ` � �Z . � 7 »'' N i &0.4kY ��.0 +Y,•�43 ` I � �
0 0
been restated to conform to the new chart of accounts. Some of the variances, account to
account, between the historical figures and the 1998 budget are the result of more
rigorous classification of items of expenditure in the new system.
The 1998 budget for capital projects and computer hardware and software (including
related professional services) totals $6,281,960. This represents a decrease of 9.77
percent from the comparable figure in the 1997 budget. The decrease is primarily
attributable to the delay in the Library project.
The major capital projects include:
Library design and construction (start) $ 937,500
Design of a new or renovated/expanded Fire Station One $ 150,000
Village Hall HVAC and electrical systems upgrade $ 150,000
Public Works Facility HVAC system replacement $ 144,105
Upgrade of pumps at the 31" Street water pumping station $ 1429000
1998 Paving Project (MFT and Utility Tax revenues, $1,8851,000
(Saddle Brook, Spring Road, parts of Timber Trails, Kingston Drive
in Brook Forest. part of York Road and part of Polo Road) ,
22nd Street/York Road intersection reconstruction (Village share) $ 716,000
Expansion of the Golf Clubhouse (start) $ 4201,000
The 1998 budget for the Sports Core reflects our continued effort to achieve and maintain
a sound financial position for this unique asset and operation. Consistent with the 1998-
2002 Five -Year Financial Plan, the budget reflects the following:
Substantial new revenue from sale of land for right -of -way (now anticipated in very early
1998). This revenue is earmarked as the funding source for the Capital Improvement
Account.
Continuation an annual contribution from the General Corporate Fund in support of
general maintenance and administration of the property, which would be necessary
whether or not any enterprise activities were extant. For 1998, that contribution has been
recalculated to be approximately $116,700.
Deferral of repayment of loans from the General Corporate Fund made in 1996 witil
revenue - enhancing capital improvements are completed.
VILLAGE OF OAK BROOK
BUDGET WORKSHOP Minutes Page 5 of 7 December b, 1997
_ _ yYr.v P'e ti .:Lim
I
Continuation of reimbursement by the General Corporate Fund for debt service payrmcnts
on the tennis dome in the amount of $33,675.
Increased revenues from memberships and user fees as projected in the Five-Year
Financial Plan.
Although 1997 results to date are the best in several years and the 1998 budget is
consistent with those results, favorable performance of the Sports Core Fund is largely
dependent (as it has always been) on good weather, increases in revenues and attention to
cost control, where we plan a major emphasis in 1998.
Trustee Shumate inquired if our Police Department has done a needs assessment for
security surveillance of our residential areas and shopping center in Oak Brook. Police
Chief Pisarek stated an assessment is being done of our surveillance efforts in both of
these areas and, if necessary, a needs assessment will be done and addressed in the 1999
Budget.
Trustee Shumate asked if consideration had been made for landscaping around the Tennis
Dome. He noted Trustee Savino stated his concern of the aesthetics of the Dome and if
plantings could be installed six feet around the facility. He indicated then the facility
could be removed without damage to the landscaped area. He also suggested the plans
for a golf clubhouse be enhanced for this project as has been developed for our proposed
public Library.
President Bushy explained the Village may %evelop enhancements on the Sports Core
property and have done so on some of the Village -owned property in Oak Brook. She
cautioned landscape around the Tennis Dome facility for security reasons.
Village Manger Veitch indicated the 1998 Budget includes the full operation of a tactical
unit, and experienced officers may be assigned to this unit. It is planned that our Police
Department will offer a program to the shopping center store managers to enhance their
skills in proper methods of security for their facilities.
President Bushy explained that the recent home invasions in Oak Brook have been
cleared. The victims were able to reclaim their personal items, and the Village
appreciates the coordinated efforts of our Police Department in resolving this matter.
'Trustee Kenny inquired if the Commission on Accreditation for Law Enforcement
Agencies, Inc. (C.A,L.E.A.) program wa3 beneficial to the Police Department. Police
Chief Pisarek remarked that officers are using all of the updated policies implemented
through this program.
VILLAGE OF OAK BROOK
BUDGET WORKSHOP Minutes Page G of 7 December b, 1 997
:/r
Village Manager Veitch thanked Finance Off cer /Treasurer Langlois, Assistant to the
Village Manager Crotty, Accountant Pauley and all Department Heads for their efforts in
the collaboratior► of the 1998 Municipal Budget.
Village President Bushy noted the clerical staff doe-v a trenr:endous amount of copying to
present the budget and thanked them for their efforts. She also congratulated Finance
Officer/Treasurer Langlois on the birth of his son and noted Police Chief Pisarek's return
since recovering from back surgery.
4. D� URNMENT:
Motion by Trustee Shumate, seconded by Trustee McInerney, to adjourn the Budget
Workshop at 10:02 a.m. VOICE VOTE: Motion carried.
ATTEST:
inda K. Gonnella, C
Village Clerk" -
budwkshop97
VILLAGE OF OAK BROOK
BUDGET WORKSHOP Minutes Page 7 of 7 December 6, 1 "7