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2003-10-09 - Finance Committee - Minutes Board or Commission: ❑ Finance Committee Document Type: 0 A e g nda 0 Minutes Meeting ate: 10/09/2003 Type of Meeting: ❑ Regular Meeting The Village of Buffalo Grove Finance Committee convened on Thursday, October 9, 2003 at the Arboretum Club Sumac Room. Those in attendance were: Elliott Hartstein, Jeff Braiman, DeAnn Glover, Jeff Berman, Chuck Johnson, Bruce Kahn, Steve Trilling, Bill Balling, Bill Brimm, Ghida Neukirch, Scott Anderson, Art Malinowski and Joe Tenerelli. The sole subject of tonight's meeting was to present the Service Redesign-The Key to Sustainable Operating Costs and Services. Bill Balling provided an introduction to the document based on the Executive Summary. The prior activities of staff in reaction to the fiscal condition faced by the Village early in FY 2002-2003 along with reviews undertaken by senior staff, IMT's, Synergy Teams and other miscellaneous work based activities. Trustee Berman commented that he believed that the report does not include enough information or analysis that can lead the trustees toward concurring with the staff recommendations on what may or may not have been included as "core" or as part of"mission"; basically the logic of how and why the deconstruction charting was set up. Trustee Braiman commented that he was disappointed with the lack of input by the Board during all of the staff activities leading up to tonight's conversation. Trustee Berman further noted that he believed that the full detail is missing that supports the past analysis and process described that supported the conclusions referred to in WRB's opening comments. In response, it was noted that tonight's presentation is just a point of departure for a much deeper, analytical series of reports, budget development and program execution. All in all, the recommendations and approach are longer rather than shorter term. President Hartstein commented that he was perplexed with some of the approach in what was to be considered "core" and how prioritized. He also stated that it would have been productive to have had some shorter, more focused planning sessions prior to this evening in order to understand and define "core", "non-core", priorities, infrastructure, etc. Trustee Berman voiced a concern about staff developing these approaches rather than what he believed could have been a more balanced series of choices developed in concert with the Board. He also questioned logic on scoring, funding, approaches to drift and that the basic foundations for all recommendations and methodology's not being clearly established. On this line of comment, Trustee Braiman was concerned that maybe the basis of approach recommended by staff was set by staff and not at all based on what the Board should/could/might have set. Trustee Johnson believed that much was to be gained within the deconstruction just by defining what we do at all levels, core, support and infrastructure. In his mind what was lacking and needed was the framework toward which decisions were made as proposed. A broader series of questions was raised by Johnson about the logic around core (yellow), support (orange) and infrastructure (red). Bill Balling provided a representative explanation using the Golf Operations deconstruction chart, noting components, how the logic of priorities was set forth, how the review process took place (number of iterations toward the products presented tonight) and ultimately, how all departments are interrelated through the infrastructure. Bill Brimm further identified the unity of approach by using the Corporate summary deconstruct that ties in the entire organizational structure through the infrastructure and council/manager CAO. At this point, questions were directed toward what was meant, conceptually, relative to "drift" and "value-added". While outside of the discussion,the following definition of"value-added" is proposed for consideration: Enhancements,whatever they may be, or however they may be defined,that are added toaservice by the Village, before and/or while the service iaoffered to residents (or our cuatomars). Further, in this context, the term "drift" is proposed osfollows: The consideration by the Village of certain initiatives that are outside of the primary service based functions set forth by statute and/orordinance. Primary service functions will include. but not limited to, public safety,water and sewer utility management, public works, building/zoning/code enforcement, planning, recreation and administrative support. Other comments questioned how values within the reporting were assigned to branding, core, value added, etc. The response was that the exercise presented is intended tn identify what we do, without emphasis on dollars or staffing commitment, in order to further define and/or refine mission. Further, by presenting form and function,to open discussion on hour services should be defined, aligned and carried out. Trustee Johnson questioned the process presented without dollars identified and whether the ultimate emphasis and focus should be where larger dollars are dedicated. It was noted that this is difficult in that personnel are the big dollars within the entire budget, exclusive nf capital and debt obligations. Addressing salaries and wages ahead of or outside of service definition and alignment is out of priority. Further, if service definition is clear, certain personnel issues may tend to resolve themselves over time due tn the suggested attrition model offered within the recommendations. After some further comments, staff was asked the question ostn what istnbe accomplished tonight. It was noted that the presentation would include further meetings nf the Committee tn address concerns, answer questions and resolve open issues. Further, o launching point toward o longer term series nf recommendations and solutions toward service direction would result from an acceptance of what is presented, ot whatever time. Again, the Executive Summary was presented os well os certain identified approaches that included, but were not limited to, multitasking, doing more with less, normalizing expenditure and procurement, less employees doing more as generalists, improvement of functional cycle times, breaking down the bureaucracy, outsourcing, improving core competencies of employees, closing out Comprehensive Plan, creation of a fiscal model for new service initiatives. As the Executive Summary was discussed, the following was noted: -TrusteesBroimonondBermononknnw|edgedthegrnupfoi|ure tn properly execute the Comprehensive Plan osstated by Bill Balling -Over the next 1-2 years, further work efforts will be undertaken to shrink the work force by1-396based on attrition. -The organizational mission of the Assistant Village Managers will continue tnbe defined and directed -The Board is supportive of consolidating Village inspectional services and want tn keep those services in house. They also need tn remain highly customer focuses and responsive. -We need to do a better job of promoting ourselves in operational and financial areas, especially where the results are potentially sensitive and proactive as they apply to the customer. -VVeneedtnnnndnue tn work nn how the Capital Improvement Plan is developed, presented and executed. -Therewosstrnngsuppnrt to continue the process nf validating whether the process nffranchising commercial waste collection is viable in Buffalo Grove. -The Board was somewhat supportive of a normal and rational growth in the annual tax levy process. -Certoinnpdnnsre|odve tn the Home Rule Sales Tax are open for further review. They involve use to supplement MFT funding,to replace vehicle stickers, or to provide new revenue exclusive nf[WFTnr vehicle stickers. The concept nfo sunset for the tax was also suggested. -Therewossuppnrt to continue the traditional fee waivers extended tn other taxing districts. -Ourinterno| systems. regardless nfwhere defined (nnre, suppnrt, infrastructure) should work os effectively and efficiently osis possible and all^fot^ need tnbe eliminated. -AddressingGn|fosonnmp|ete enterprise was acceptable tn the Village Board. That would include addressing the Due To/Due From at year end 2003, establishing a line of credit in the form of a designated fund balance within the Corporate Fund equal to$300,000, ending Corporate Fund subsidies or transfers other than for tax abatement, and when and where necessary, subsidizing between the Buffalo Grove Golf Club and the Arboretum Golf Course. The issue of"branding"was reviewed. A line of opinion was that there should be a reasonable priority for branding,that it defines what a community is and regardless if it is only defined as nice to do,there is an ultimate value to branded services and products. Branding was tied to the civic infrastructure of a community but regardless, there is a need to prioritize involvement in any branding exercise. Suggestions toward items identified within branding need to be brought forward as well as impact that may occur due to change. A further meeting will be scheduled to continue this dialogue prior to the end of November to coincide with instructions that need to be delivered to staff for the FY 2004-2005 Budget process.