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2005-11-14 - Finance Committee - Minutes Board or Commission: ❑ Finance Committee Document ❑Type: A e g nda 0 Minutes Meeting ate: 11/14/2005 Type of Meeting: ❑ Regular Meeting TH'9 ij'P°a"' e ou"' a""jo r"o"""v""e"' in""a"'"n""c""e"'tom"m"""i{eec""o"'"n""v""e"'net on g on ay ovem er ,at the Village Hall lower level conference room.Those in attendance were: Elliott Hartstein,Jeff Braiman, DeAnn Glover,Jeff Berman,Steve Trilling, Brian Rubin, and Joe Tenerelli. From staff: Bill Balling, Bill Brimm, Ghida Neukirch, Scott Anderson,and Art Malinowski. The following matters were discussed. Review/Discussion-Gateway Project Scott Greenberg, President of ECD Company,discussed some of the challenges he is facing in developing the northwest corner of Milwaukee Avenue and Busch Parkway. ECD is working hard on trying to get approval from the owners of the Corporate Grove Business Park on the proposed project due to the restricted covenants for the park-the primarily obstacles being the revised sign package and modifications to the stormwater management plan. Mr.Greenberg was asked if the sign package could be revisited. He stated it is important for each tenant to have an identity and that the some problems may be eliminated if he can located one large user for the property. Mr. Greenberg related some geographic difficulties of developing the property, in relation to the development in Wheeling,and is also hampered by the number of curb cuts allowed on Milwaukee Avenue. Mr Greenberg concluded his presentation by thanking staff for their work and he will continue to push for progress in the development. Tax Year 2006 Property Tax Levy-Initial Review Bill Brimm advised that the Truth in Taxation hearing will be held on December 5,2005. Bill explained that the primary driver of growth in the levy is due to the pension levies,most notably, Police and Firefighter Pensions.All the pension funds are suffering from the underperformance of investment earnings as measured against actuarial assumptions.While investments in the public safety pension are not yielding 7.5%the real problem is the legislative decisions to continue to reduce the full career of officers/firefighters while at the same time,a new mortality model was introduced to calculate unfunded liabilities,that forecasts longer lives.This new model replaces the outdated 1971 table. Bill graphically depicted the impact of the legislation,new model,and investment performance on pension tax levy rates. Overview-FY 2006 Golf Course Budgets Scott Anderson provided some initial observations on the performance at both courses.The Buffalo Grove Golf Club had a solid year and it appears that the course will generate a small profit. Scott summarized some the initiatives proposed for the next year and the potential budgetary impact.The Arboretum did not perform as well,but due to reduced spending,the course may break even. One of the concerns raised by the Village Trustees were front of house issues at the BGGC and the need for some landscape improvements.Also requested were statistics on the restaurant operators at both locations to evaluation business levels. FY 2006-2007 Capital Improvement Plan-Initial Review Scott Anderson summarized the status on the development of the next five year CIP.Scott stated that staff will again be reviewing, in depth,the first year of the plan and will defer/cancel projects were appropriate given the economic climate. One new project was discussed-ComEd ROW Bikepath that will connect Hastings to Raphael Blvd. FY 2006-2007 Budget Calendar Bill Brimm talked about some key dates in the FY2006-2007 calendar.There was no discussion. FY 2006-2007 Initial Salary Plan Recommendation Art Malinowski discussed the results of his survey as documented in his November 8,2005 memorandum to Mr. Balling.The average wage adjustment forecast for the next fiscal year was 3.29%.The Board authorized staff to start building budget based upon a 3%increase and if staff is able to demonstrate an$80,000 savings(that number being the impact of.5%of total payroll)by the elimination or reclassification of a position,then to proceed with a 3.5%increase. FY 2006-2006 Six Month Report Bill Brimm summarized the six month report that will be formally presented to the Board on December 5,2005. Both revenues and expenditures are trending well as measured against the 50%benchmark.There was no discussion. Discussion -Water Rates and Fees Bill Brimm reviewed his June 8,2005 memorandum to Mr. Balling suggesting the need adjust the consumption rate and reduce the monthly debt service fee.The current fee structure is not allowing the enterprise to operate at break-even level.The Board requested that several pricing scenarios be calculated for review at a future date. Corporate Fund Fund Balance Policy Bill Brimm stated that the anticipated Undesignated Fund Balance will be$14.3 million at April 30,2006.As measured against the current budget the Fund Balance will exceed by about$900,000 the level by which the Board must be notified(fund balance drops below 50%of the Corporate Fund budget).Staff was directed to reinvest any surplus, if created,back into the Undesignated Fund Balance. Discussion-Home Rule Sales Tax Within the recitals of the Ordinance amending the Home Rule Sales Tax from .5%to 1.0%was a requirement for prior to January 2006,and every January thereafter,the new rate is to be reviewed for adequacy. Bill Brimm discussed the uses of the additional revenue and the importance of the transfer(50%of the additional .5%or 25%of the total revenue)to the Motor Fuel Tax to support the Annual Street Maintenance Program. It was recommended that the present rate stay in effect. Calendar 2006 MFT Street Program/Engineering Selection Process Bill Brimm provided an overview of the 2006 Street Maintenance Program and asked if it was the pleasure of the Board to retain the current design and construction management firm as the current agreement expires with the 2006 design. If is staffs opinion that the services receive are excellent and the pricing appears to be competitive.Staff was asked to conduct a survey of neighboring community in order to gauge the fees the Village is paying for the services. Initial Discussion-Calendar 2006 Service Plan-Progressive The service plan was not available at the time of the meeting. It will be presented in conjunction with the Golf Budget presentation. Review-White Pine Ditch Improvement Program The Board authorized staff the accelerate the engineering and design efforts on the south portion of the project (Chatham Park to Bernard Drive). Update-Commercial Waste Franchising Initiative The Board was advised the that business survey results were shared with the Chamber of Commerce and the Executive Committee was supportive of the initiative if the fees represented in the study prove to be a real case scenario for the Village. Staff is authorized to work with the Solid Waste Agency of Northern Cook County to develop an RFP. Lake County Sanitary Sewer Treatment Fee-Rate Adjustment The rate adjustment,approved by the Lake County Board was discussed.An ordinance will be brought forward to reflect the amended rates. Update on Village Early Retirement Incentive Program Art Malinowski related that four employees have opted for early retirement and are either fully retired,or have been rehired at a part-time status.Two employees have also announced their intention to retire effective February 2006. The meeting was adjourned at 9:12 p.m.