2001-08-29 - Finance Committee - Minutes Board or Commission: ❑ Finance Committee
Document Type: 0 A e
g nda 0 Minutes
Meeting ate: 08/29/2001
Type of Meeting: ❑ Regular Meeting
The following represent the comments raised at the Finance Committee meeting of Wednesday, August
29, 2001. In addition to ourselves, all members of the Board were in attendance with the exception of
Bruce Kahn and John Marienthal; Joe Tenerelli also was in attendance.
FY 2002 Golf Budget: Scott provided and overview. There was a comment that we should see what we
can do to get patrons of Chevy Chase to play at our courses over the next two years as that course
undergoes a complete renovation. As for the Arboretum, it was stressed that there needs to be a
professionally developed advertising campaign beginning in FY 2002. There was a desire to produce
more accurate budgeting as to projections and estimated actuals; in addition, we need to make sure that if
revenue is anticipated to decline at the Arboretum that expenses decline in some manner also. Staff was
asked to focus on reasons for the decline in play rather than to just guess or assume. Also, there needs
to be some level of publicity regarding the Arboretum,that it is open and that rates have been discounted
to encourage and retain patronage.
Fiscal Year-Golf: This was discussed with a target implementation that coincides with the Village's FY
2003-2004 period. For FY 2002, a traditional 12 month budget will be developed with consideration for a
"working"4 month budget or appropriation. The reasons for the change mirror Scott's letter on this
subject and the Committee endorsed the change as long as staff retains the ability to analyze factors and
trends between years. They were assured that this can and will be accomplished.
Capital Improvement Planning: It was noted that the next 5-year cycle will begin shortly as well as the FY
2001-2002 status reporting. All efforts are being made to improve upon the process in order to provide
the best analysis and presentation of projects proposed for undertaking. A proposed role for MTI was
discussed in a capacity as an independent reviewer of certain construction programs. They would review
the planning for a project and offer an opinion that the estimates are fair and within a proper range of
expected cost. There was concern if their role could impact any future CM engagements in that they
might have a "leg-up" on the work to be done. It was suggested that a statement of principal be
developed on what their role would be and that future work was not ensured by that review process and
that retaining by the Village of any CM will be through a fair and open process. It was also suggested that
maybe more than one reviewer may be of value to discourage favoritism. More will be done on this
proposal.
Sales Taxes:An overview was given on the current state of sales tax receipts based on what has been
earned from Hines Lumber but lost as a result of the departure of CDW. It was suggested that efforts
should be undertaken to find other point of sale tenants such as Hines that can provide additional sales
tax opportunities for the Village. It was agreed that such searches should be conducted in a sensitive way
in that they may affect our neighboring communities and that each and every agreement should be
considered based on it's merits rather that as strictly applied against a given economic incentive program.
A draft of an incentive program was discussed. While offering a strong point of departure, a rigid
application should not be considered but should only be viewed as a working objective and goal. It was
suggested that any economic incentive agreement provide at least$100,000 in new sales taxes and that
that use be tied to the need to provide minimal services and within industrial areas that do not impact
current businesses.
Tax Levy-2001:An overview was given on the status of the calendar 2001 Tax Levy Ordinance
development with specific emphasis on the anticipated impact that will occur to funding employer
obligations for pensions, most specifically for sworn fire and police. The increased levies are due to the
impact of recent benefit improvements that have increased the unfunded actuarial liabilities of both
pension program funds. As this was discussed, it was suggested that at the time the Ordinance is
considered that a resolution be put forth on the issue of unfunded mandates expressing concern about
future benefit improvements without thought as to cost as well as expressing strategies needed to offset
these costs, possibly through operational reductions.
FY 2002-2003 Budget: Planning concerns were discussed in a very preliminary manner relative to the
growth projections that will underlie the upcoming budget cycle. As part of the discussion, it was asked if
future budgets may stabilize as the community growth profile stabilizes. It was stated that that might
generally be true but that some dynamics are beginning to present themselves that growth may occur
during stability. Three points were readily presented-recent NFPA 1710 minimal staffing for fire
recommendations that could cause hiring to increase for no ready reason other than to meet a labor
driven standard;the need to provide additional services to a maturing community that are a result of
aging; the need to increase Police social services due to what is seen as a need to be prepared to offer
expanded need in this area.
IMRF Initiatives: The issue of elected official purchases of back service credit was discussed. In that this
matter has been before the Board in a comment format for some time, it was decided that the necessary
Resolutions would be brought forward for the Board's consideration on October 15th and that if any
members should have any questions or concerns,they should be addressed to Art Malinowski prior to
that date. It was also noted that staff again looked at the IMRF-ERI program but was not in a position to
make a recommendation to further proceed with further study.
Pace Service Options: Staff reviewed a proposal from Pace to offer mid-day service between the Lake
Cook Road/Deerfield Metra station and the Village's Metra station as a way to compensate for the lack of
similar service until the double tracking project is complete. The cost parameters were discussed as well
as opportunities to offset the 50% local commitment(corporate use/donations or CMAQ grant) It was
suggested that a properly developed survey be circulated in the community as well as at the stations to
determine if there would not only be an interest in such service but whether one would be inclined to use
such a bus route. More will be developed on this in the near future in order to recommend a course of
action this fall. On this initiative, it was noted by members of the Committee that this would be a better
program to pursue rather than fighting the battle over Route 690 cut backs.
Taxi Cab Subsidies: The results of a survey conducted by the Northwest Municipal Conference for the
Village on transit subsidies was reviewed. It was recommended, based on the results presented, that the
current program is adequate and that change would not be warranted. That recommendation was
accepted.
Water Rates and Fees:The current water rates and fees will be retained through the remainder of FY
2001-2002 with any future recommendation based on need. For the present, any extra generated from
flat fees assessed will be applied against the expense profile that is to be offset by the posted
consumption rate.