1991-05-28 - Village Board Special Meeting - Minutes 8125
5/28/91
MINUTES OF THE SPECIAL MEETING OF THE
VILLAGE BOARD OF THE VILLAGE OF BUFFALO
GROVE, ILLINOIS, HELD IN THE COUNCIL
CHAMBERS, VILLAGE HALL, MAY 28, 1991
President Mathias called the meeting to order at 7:34 P.M. CALL TO ORDER
Those present stood and pledged allegiance to the Flag.
\mit/ Roll call indicated the following present: President ROLL CALL
Mathias; Trustees Marienthal, Reid, O'Malley, Kahn, Rubin
and Braiman.
Also present were: William Balling, Village Manager;
William Raysa, Village Attorney; Lee Szymborski, Assistant
Village Manager; William Brimm, Finance Director; Gregory
Boysen, Director of Public Works; Raymond Rigsby,
Superintendent of Public Works; Frank Hruby, Director of
Building & Zoning; Richard Kuenkler, Village Engineer;
Robert Pfeil, Village Planner; Fire Chief Allenspach;
Police Chief McCann; Paul Soucy, ESDA Director; Joseph
Tenerelli, Village Treasurer.
Mr. Szymborski reviewed the Capital Improvement Program CAPITAL IMPROVEMENT
for the audience and the Board; details of this program PROGRAM
are contained in Mr. Szymborski's memo to Mr. Balling of
May 17, 1991.
`. Trustee Marienthal asked several questions regarding the
CIP which were answered by staff. Trustee Marienthal
stated that it seems to him that there is a lot of
detailed information lacking in the report. Mr. Balling
responded that all the back-up information is available if
the Board wishes to see it.
Trustee Reid stated that the report is rather confusing as
to details where the Village is actually responsible for
funding; he would like the report to concentrate on what
is going to impact the Village.
President Mathias stated that, before bringing this
document back at the July meeting, it needs to be revised
to incorporate the comments made tonight by the Baord.
Trustee Reid stated that this Board cannot obligate future
Boards to spend monies; this can be a planning tool, but
it cannot be considered as a obligation. Trustee Reid
would hope that, in future budget presentations, there
would be a separate presentation of capital projects
plans so that they can be differentiated from operating
budgets.
Trustee Reid does not want the CIP coming back to the
�'..' Board as a document for adoption; he wants it brought back
to the Board as a document for discussion.
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UNIMIO
8126
5/28/91
Moved by Rubin, seconded by Braiman, to remove the ORDINANCE #91-57
proposed ordinance instituting a Home Rule Municipal (Sales Tax)
,. Retailers and Service Occupation Tax from table. Upon
roll call, Trustees voted as follows:
AYES: 4 - Marienthal, O'Malley, Rubin, Braiman
NAYES: 0 - None
ABSTAIN: 2 - Reid, Kahn
\tsi Motion declared carried.
President Mathias confirmed that the two Board members
absent at the last meeting were provided with minutes and
tapes concerning this subject.
President Mathias noted the alternatives which were
presented by Mr. Balling, details of Which are contained
in Mr. Balling's memo to the Board of May 23, 1991.
Trustee Reid stated that everything which has been
considered has included consideration of variations of the
supplemental state income tax. If and when the Village
receives any money out of Springfield, it should be used
only for capital projects.
President Mathias stated that the Village needs to satisfy
itself as to whether or not this budget can be balanced
without the necessity of the sales tax.
Trustee Reid stated that he is not in favor of raising
taxes, however, he recognizes that it sometimes has to be
done. Of the three alternatives, the one which he would
find to be the least objectionable would be the sales tax.
He stated that he believes the staff needs to find ways
to cut expenses without cutting services.
Mr. Balling reviewed the budget and commented on the
growth areas, as well as the proposed budget cuts,
explaining the reasons for same.
Mark O'Rourke, 1 Strathmore, stated that increasing the
sales tax would be harmful to business, particularly the
Town Center; he also stated that he finds cutting services
by cutting the budget to be unacceptable.
Elliott Hartstein, 908 Providence, called attention to his
letter to the Board of May 28, 1991, and stated that he
believes that it would be a mistake to institute a sales
tax when the Village is trying to build up business and
encourage people to shop in Buffalo Grove.
Ron Jonas, President of the Chamber of Commerce, stated
that the sales tax would be detrimental to businesses in
the Village; if shopping center vacancies were filled,
there would not be a revenue problem in the Village.
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5/28/91
George Krug, 297 St. Mary's Parkway, stated that the
Village should not rely on the State for funds; he
believes that the sales tax would be the best way to
increase revenue.
Trustee Marienthal stated that he has been opposing a
local sales tax, he thinks there are places in the budget
where cuts can be made; there is the capability of dipping
into reserves which could be replenished within the next
year or two.
Trustee Kahn stated that, by dipping into reserves, the
Village would be borrowing from tomorrow to pay for today;
he also asked what borrowing from reserves would do to the
bond rating of the Village.
Mr. Balling stated that the bond rating is a very real
concern; one of the questions asked at bond hearings is
the reliance on reserves.
Trustee Marienthal stated that the reserves were built for
this particular type of incident, and the withdrawal would
only be a one-time occurance.
Trustee Braiman commented on the proposed budget cuts; he
believes revising the budget at this point is hindsight;
he has concerns with going into reserves because it has to
�._. be paid back next year; he believes the Village needs
future sources of revenue; he believes the sales tax to be
a good revenue source.
President Mathias stated that he would like to take time
to discuss the alternatives in this situation; he stated
that the Finance Committee does need to meet again to
review cuts in the budget; he wants to assure residents
that this budget will be balanced one way or the other.
Trustee Reid stated that he could reluctantly support a
sales tax; he will not support a utility or transfer tax;
he believes staff can take a closer look at cuts; he would
support going into reserves only if budget cuts cannot be
made, and he would want to see repayment to the reserve
fund as the first item in next year's budget. If anything
comes from the State, it should not be used to repay the
corporate reserve fund; any money that comes from the
State should not become a part of the operating budget.
Trustee O'Malley is against the sales tax; he believes
that the funds the Village has to operate with need to be
identified, and staff needs to be told that they must
operate within that budget, without cutting services; he
thinks implementing the sales tax would be doing a
�"" terrible injustice.
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Trustee Rubin stated that, if additional revenues are
necessary, he would support a sales tax, but he would not
support the utility tax; he questioned whether raising the
"sin" taxes would bring in a significant amount of revenue.
Mr. Brimm responded to Trustee Rubin's question.
In answer to a question from Trustee Marienthal, Mr. Brimm
stated that the hotel tax has generated approximately
$60,000.
Mr. Balling stated that the major growth in the Corporate
Budget relates to the growth in the Fire Department.
President Mathias polled the Board: "YES" indicates favor
of directing staff and the Finance Committee to take a
substantial amount (at least $100,000) of any funds that
will be necessary to balance this budget from the
existing Corporate Fund, to be repaid, with an equal
amount of cuts in the budget; "NO" indicates opposition:
YES: Marienthal, Reid, O'Malley, Rubin, Braiman
NO: Kahn
President Mathias polled the Board: "YES" indicates favor
of a utility tax in any form to balance the budget; "NO"
indicates opposition:
YES: None
NO: Marienthal, Reid, O'Malley, Kahn, Rubin, Braiman
President Mathias polled the Board: "YES" indicates favor
of some form of real estate transfer tax to balance the
budget; "NO" indicates opposition:
YES: Rubin, Braiman
NO: None
ABSTAIN: Marienthal, Reid, O'Malley, Kahn
The Abstentions were due to lack of information which has
been requested.
Mr. Raysa noted a clarification on page 5.
Trustee Rubin amended the original motion (made at the May
20, 1991 meeting) to read "May 1st of every subsequent
year", Trustee Braiman seconded the amendment.
Upon roll call, Trustees voted on the amended motion:
AYES: 4 - Reid, Kahn, Rubin, Braiman
NAYES: 2 - Marienthal, O'Malley
~"' Motion declared carried.
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5/28/91
Moved by Reid, seconded by Kahn, to adjourn the meeting. ADJOURNMENT
Upon voice vote, the motion was unanimously declared
carried. The meeting was adjourned at 9:29 P.M.
Janet M- -)Sirabian, Village Clerk
APPROVED BY ME THIS ,9
DAY OF ,f,� < , 1991.
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