2004-02-09 - Finance Committee - Minutes Board or Commission: ❑ Finance Committee
Document Type: 0 A e
g nda 0 Minutes
Meeting ate: 02/09/2004
Type of Meeting: ❑ Regular Meeting
The Village of Buffalo Grove Finance Committee convened on Monday, February 9, 2004 at the Village
Hall, Lower Level Conference Room. Those in attendance were: Elliott Hartstein, Jeff Braiman, DeAnn
Glover, Jeff Berman, Chuck Johnson, Bruce Kahn and Steve Trilling. From staff: Bill Balling, Bill Brimm,
Ghida Neukirch, Scott Anderson and Art Malinowski. Also, Treasurer Tenerelli.
The following matters were reviewed:
FY 2004-2005 Review of Budget Assumptions:
Bill Balling provided an overview of certain budget assumptions for FY 2004-2005 along with detailing the
staff service plan to look at appropriate modifications to existing fees and charges. Most specifically, a
review will be undertaken to determine if a new approach should be undertaken to value business
licenses, alarm permit fees and false alarm charges applicable to financial institutions and banks. Further
work will involve a review of business license, liquor license and other miscellaneous charges/fees. In
addition, work will be undertaken to determine if the current approach toward enterprise fund chargebacks
for the benefit of the Corporate Fund are still appropriate as to methodology. All in all, the Committee
requested that a complete package of fee/charge recommendations be brought forward at one time rather
than piecemeal and that they be based on changes that are worth making rather than based on marginal
levels.
Staff reviewed a proposed ordinance establishing an expense recovery strategy for Specialized
Emergency Response. The members questioned level of application in other communities and it was
noted that this ordinance concept had been put in place, at various levels of recovery, in several area
departments and fire protection districts. There was also concern that the ordinance could become
burdensome if not clear as to intent in that those requiring nonspecialized rescue would find themselves
subject to fee assessment. While it is believed that this ordinance is directed toward commercial activities
that might require specialized rescue, there may be extenuating circumstances where such rescue levels
will apply residentially. Overall,there was a desire to review the wording as to intent. This matter will be
brought back for further discussion.
A second concept was brought forward regarding a proposed seizure and impounding of motor vehicles
ordinance. The concept is based on similar ordinances in place in Waukegan, Park City and Hanover
Park. Ghida provided a full overview with the following comments/concerns: Review the list of possible
seizure criteria to see if they should be expanded into areas such as suspension, reckless driving, drag
racing, etc.,to make as broad as possible. There was also a belief that the content on the seizure form
was not correct (the Note section on page 2) and should be corrected. The ordinance should also be
clear that the party whose vehicle has been impounded must also pay for any towing and/or storage
charges. We also need to clarify the procedures relative to the administrative hearing and whether an
administrative hearing ordinance needs to be considered by the Village. We were also asked to clarify
how we would approach abandonment of vehicles should they never be reclaimed. Staff was encouraged
to move ahead on this initiative after issues and final approach are clarified.
A recommendation to modify the Village's crossing guard program was provided that contained a
recommendation to eliminate four crossing guard locations since they did not meet warrants for number of
students crossing and number of vehicles; the schools would have the opportunity to maintain these
locations, but bear the cost of the crossing guard. The belief was that there were way too many problems
at the current time, under the current climate,to pursue this matter. No modifications to the Village's
program were recommended.
Staff reviewed a work in progress on the matter of fee waiver(amending Chapter 3.04 of Code). It was
noted that the approach being considered is not intended to generate revenue but to place the Village in
an appropriate position where its direct costs of development and permit review are provided for as a
reimbursement. A full recommendation will be forthcoming to be effective, if approved, early in FY
2004-2005. On a related matter, a draft amendment to Chapter 3.06 of the Code was reviewed to expand
the requirement to place a deposit with the Village to offset direct expenditures incurred relative to Title 16
matters (currently only Title 17 actions). This amendment was acceptable to the Committee and will be
brought forward on February 23rd.
FY 2004-2005 Review of Expense Assumptions:
The initial budget targets for the Corporate Fund were discussed, those being no greater than 4.5%
budget to budget growth. Based on a question as to how that value was determined, it was noted that it
was a blended rate that included a factor(Employment Index) recognizing the general trend for wages
and benefits further weighed by a factor built upon the Consumer Price Index for all other categories of
budget other than wages and benefits. Bill Balling reviewed the intended service plan across all
departments for FY 2004-2005 with some comment on those items that have caused growth beyond the
target in some departments, It was noted that the only way to approach growth levels of near zero or
slightly ahead of the current year's budget would be through the lay-off of staff in that 75% of the budget is
committed, under the current service profile,to staffing and the provision of employment benefits for those
individuals. It was noted that the targets are only that and department directors have been charged with
presenting budgets that are as low as possible while maintaining the accepted service objectives of the
Village that have been articulated within the Service Redesign Plan,which in and of itself is continually
evolving.
Some areas that are being considered to control costs include the deployment of civilian employees,
based on part time hiring of retired police officers, in the crime prevention area. This strategy permits the
redeployment of a uniformed officer back to patrol. The annual Xmas tree pickup program will be dropped
with the service transferred back to the waste contract hauler who already provides yard waste collection
on a seasonal basis. In the ESDA area,while not a cost saver, the budget to be presented reflects the
need to address many prior year's deferrals in keeping both Mobilecom and the EOC up to date in
meeting the mission of the local ESDA. Further, some funding needs to be put in place to provide capital
replacement reserves for alert sirens, which are aging. In the General Services area, the concept of
eliminating Saturday hours as both a security issue and to moderate the use of overtime was accepted by
the Committee. Further work will be undertaken to schedule this change (to Monday evening's), including
the proper informational update to the community.
Status of Health Insurance Consulting Project/FY 2004-2005 Compensation & Benefit Recommendation:
Art Malinowski brought the Committee up to date on the work efforts with our health care benefits
consultant. This was done as part of a review of the project timeline. There were no questions and the
Committee appears to have been satisfied with the work efforts to date.
As for compensation,the FY 2004-2005 recommendation,that being a general wage adjustment of 3
1/2%was accepted although there was comment that it might be too high, especially when compared to
the private sector. The concerns about breaking comparability were discussed relative to risk that wage
actions that might be based on factors other than a well thought out approach and strategy could invite
adverse labor actions in the form of union organizing. A full review of all comparables was provided by
Art, and based on updated information, the original assumption as to the general adjustment still appears
to be well in line, based on comparability. What the Committee did ask for was consideration of a revision
to the pay plan whereby 1/2 steps were incorporated so that when an adjustment involving a half-step is
approved that the end of year positioning at a half-step above the authorization is the end result. This
was acceptable and will be put in place as of May 1, 2004. Staff will work out the logistics of this change.
There may be other issues relative to this change and they will be determined by staff in order to provide
an orderly transition beginning May 1 st.
Review of Current Fund Balance Policies/Uses:
Staff reviewed the current policy and use concepts along with a detailed spread sheet on application of
fund balance within the Corporate Fund since inception of the current policy. It as further noted how fund
balance above the policy target to budget value had been applied in the most recent fiscal year as well as
the current period. Additionally, based on early budget projections, there will be another draw in FY
2005-2006 against the unreserved balance, all within the use limitations within the policy.
The Committee was also presented with a capital request to reallocate funds from the undesignated fund
balance to the designated fund balance to address identified underfunding within the Fire, Police and
Public Works Reserve for Capital Replacement. The recommendations suggested were approved by the
Committee and the appropriate internal accounting adjustments will be made. There was a request to
provide additional information to the Committee regarding the proposed replacement of Unit 473 (aerial
bucket truck) in Public Works. (can the piece be joint purchased; how often is the equipment deployed/is
there potential to deploy an aerial truck for greater than 100% of the work day, on average {logic to
purchase the second vehicle}; can this type of vehicle be readily rented; can this vehicle be shared
amongst several different communities). That information will be provided.
Debt Service Concept for Arboretum Debt-Restructure Remaining Debt:
The concept of restructuring the remaining Arboretum debt to moderate cash flow requirements was
rejected by the Committee. Instead, they approved using internal balances to provide any necessary
cash flow shortcomings with either a revised debt schedule put in place after the box years are concluded
to repay and amount that might be advanced or in an extreme case, address similar to how past due
to/due from transactions were resolved. As the golf season progresses from period to period, the ability
to maintain positive cash balances in relation to the management of debt due will be related to the
Committee.
Commercial Waste Franchising:
The Committee was given an overview on the commercial waste franchising activities of SWANCC,
especially noting the pilot program in Skokie as well as the current program being bid in Wheeling. The
Committee is interested in continuing our review of this element of waste collection, which can be of
benefit to both commercial accounts as well as providing a source of franchise revenue to the Village.
This program is also interesting in that it is one that is outsourced and administered by the Agency. More
will be forthcoming as the Wheeling project evolves to a final recommendation before their Board along
with the concurrent course of action that will be followed.
FY 2004-2005 Budget Presentation:
The budget will be presented as on Monday, March 8th beginning at 6:30 pm. The process for the
presentation will be developed by staff.
The meeting adjourned at 9:50 pm