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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.