2003-11-24 - Finance Committee - Minutes Board or Commission: ❑ Finance Committee
Document Type: 0 A e
g nda 0 Minutes
Meeting ate: 11/24/2003
Type of Meeting: ❑ Regular Meeting
The Village of Buffalo Grove Finance Committee convened on Monday, November 24, 2003 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:
Service Redesign Project-Continued Discussion:
Bill Brimm presented a Power Point review of the work undertaken to date on metrics/performance
measurement that is a component of the Service Redesign efforts. The results of initial measurement for
administrative services, Police Services, Fire Services and Public Works were presented with overview
and comment. The comparative communities were noted as well in side-by-side comparison. It is
believed that the concept of performance measurement for core as well as service support programs is an
acceptable measure of program execution, especially if the data collection and evaluation criterion
suggested for any and all metric analysis is followed. One suggestion was to expand the number of
comparable communities by 3-5 and several comparable communities in our service area will be
suggested for inclusion. Also, a phasing of how and when incorporated will also be suggested. The idea
would be to get other communities that are like Buffalo Grove but maybe not as affluent or of
distinguishing demographics. Suggestions will be considered and presented as part of any future
performance measurement reporting.
Continued Discussion on Core Customer Service Prioritization
Bill Balling presented comments on the continuing work efforts on scoring, in terms of prioritization, core
customer service objectives presented within the deconstruction graphics (Yellow). Initial ranking reviews
have been submitted and additional are to be provided by Board and staff. They will be compiled and
further discussed.
Review of 2003 Tax Levy Ordinance:
Bill Brimm provided an overview of the proposed 2003 Property Tax Levy Ordinance. Comments related
to the entire tax cycle are as follows:
-Tax increases must be kept to a minimum based on economic times coupled with the level of retained
earnings/fund balance in several operating funds. There was further discussion on fund balance and how
it has been utilized over the past years, all in support and in compliance with existing policies.
- IF there is any movement on tax levy increases, there MUST be a commitment on the expense side of
the budget to reduce whereever and whenever possible.
-The Village Board would look to a combined approach toward the tax levy(at time of abatement)that
would allow the levy to grow at a very reasonable and justified level as long as there was a commitment to
mitigate increases with fund balance and other revenue commitments in lieu of increased taxes.
-There is continued concern that what was presented as a major cause of the change proposed with this
ordinance,that being increases in mandated pension obligations of the employer, will continue for the
next several years at potentially extraordinary rates and taxes will be needed to support such levels
despite our best efforts to moderate exposure.
-The Board would consider an increase in the Home Rule Sales Tax by up to 1/2% to apply toward
operations, tax abatement and capital purposes, specifically to supplement Motor Fuel Taxes.
-There would be some favorable consideration by the Board to moderate, small increases in the overall
tax levy in order to permit some level of growth and flexibility that is important over time.
All of these issues will be considered in preparation of the Tax Abatement Ordinances scheduled for
December 15, 2003.
Review of Potential Revenue Initiatives:
Revenue options were discusses such as the above Home Rule Sales Tax (which would go into effect
July 1, 2004 with the first collections October 2004),the implementation of a prepared food and beverage
sales tax, local motor fuel tax and utility taxes. It was also suggested that increases be considered for the
vehicle sticker penalties, impounding fees for certain vehicle stops (ordinance now in development by
Police Department), emergency response team deployment (ordinance has been drafted and with Fire
Department for initial staff review) and miscellaneous licensing, as appropriate. We were also asked to
consider amnesty programs when and where applicable although the options are minimal. As the
discussion concluded, the direction is to continue in the development of the Home Rule Sales Tax
ordinance.
Budget Comments:
-Staff was asked to again prepare full detail booklets for the Board's use in reviewing the summary
document(s)
- It was suggested that an alternative day be considered for presentation of the budget, in workshop
mode, on a Saturday morning as an example, so that efforts do not begin late in the evening as part of a
regular Board Meeting or Workshop.
FY 2004-2005 Capital Improvement Plan:
Scott Anderson provided an overview of those projects initially being considered for the FY 2004-2005
Capital Improvement Plan. Comments are:
-The Board will be looking at those projects that are not committed to under contract or with a
lower/non-customer facing and consider them for deferral in light of current economic concerns. While
some projects were discussed this evening, final discussion will occur on Monday, December 1 st prior to
final consideration of the Plan. The planning period is FY 2004-2005 thought FY 2008-2009.
-There was considerable discussion on the Wheeling/buffalo Grove Rotary bikepath. This is a project
which for many reasons, has increased in cost significantly,with a Buffalo Grove commitment close to,
and possibly in excess of, $200 thousand. The history of the project was reviewed not only from Buffalo
Grove's perspective but from Wheeling's as well. Wheeling has significant exposure based on work
undertaken to date that involves the use of federal grant funds. There is question if whether the Village is
obligated financially as well as morally, if it was decided to disengage from this project based on
escalating costs and perceived value to the community. There are also risks that might involve claims
from Wheeling as well as contractors for lost profits if the project were to cease. It was suggested that
contact be made with staff at Wheeling to discuss this project, if it is still viable from everyone's
perspective and to get Bill Raysa involved quickly to identify legal exposure. Consideration may be given
to sharing some sunk costs with Wheeling if the project is abandoned. There should also be some
participation in that effort, if viable, by both the Buffalo Grove and Wheeling Park Districts. The broad
issue of ongoing intergovernmental relations with Wheeling and the park districts need to be considered
as this project's future is evaluated. The Board asked for some time to consider further.
-There was concern about the current street maintenance performance scoring and whether it should be
reviewed in hopes of being able to extend the service lives of local streets.
-The extent of the 2004 MFT program was reviewed and noted that costs could approximate $2.2/2.3
million. One option would be to include the proposed work on Golfview as an "add" alternative to see if
that portion of the work could be delayed. Overall funding will ultimately be contingent upon available
MFT funding, implementation of the Home Rule Sales Tax initiative above and any other supplemental
funding, which will include FY 2003-2004 carryover. (The "add" alternative must be reviewed against MFT
bidding guidelines).
FY 2004 Golf Budget:
Scott Anderson provided a short overview supplemented with comments from Bill Balling. A full
presentation is to occur on Monday, December 1st. One concept that was discussed was contracting the
Pro Shop to Carmen. After discussion, the Committee opted against the recommendation. On one
staffing matter, it was agreed that Geoff Tollefson could be properly classified as a full-time employee at
the Arboretum rather than as a seasonal employee.
The meeting adjourned at 10:00 pm