2011-07-18 - Village Board Committee of the Whole - Minutes MINUTES OF THE COMMITTEE OF THE WHOLE MEETING OF THE VILLAGE OF
BUFFALO GROVE HELD IN THE EOC CONFERENCE ROOM,
50 RAUPP BOULEVARD,BUFFALO GROVE,ILLINOIS ON MONDAY,JULY 18,2011
CALL TO ORDER
President Braiman called the meeting to order at 6:36 P.M.
Physically present were: Jeffrey Braiman,Village President;Jeffrey Berman, Steve Trilling,Beverly Sussman,
Mike Terson,Andy Stein,Les Ottenheimer,Village Trustees;Dane Bragg,Village Manager;Ghida Neukirch,
Deputy Village Manager;Scott Anderson,Director of Finance;Katie Skibbe,Assistant Director of Finance;Art
Malinowski,Director of Human Resources;Leisa Niemotka,Assistant to the Village Manager;and William
Raysa,Village Attorney.
Staff members presented reports and updates on the Agenda items. General Board discussion on all items
followed,with staff answering questions on each of the items.
FY 2010 Audit Internal Control Review
Mr.Anderson reviewed reports compiled by the Village's independent auditors,Wolf&Company LLP. The
first report,dated June 15,2011,is the SAS 114 Board Communications letter. The intent of the letter is to
make the Board aware of any significant audit findings. Reviewed within the context of significant audit
findings are issues related to: the qualitative aspects of accounting practices,difficulties encountered in
performing the audit,corrected or uncorrected misstatements,disagreements with management,management
representations,management consultations with other independent accounts,and other audit findings or issues.
FY 2010 Fund Balance Report
Annually,the Village's Fund Balance Policy and Practice is reviewed at the conclusion of the independent audit
for the relevant fiscal period. This review incorporates the fiscal activities ending December 31,2010 and fund
balance totals as stated in the audited Comprehensive Annual Financial Report.
Five Year Operating Projections—Corporate Fund
The goal of the Five-Year Financial Forecast is to assess the Village's ability over the next five years to
continue current service levels based on projected growth,preserve our long-term fiscal health,cease the draw
on balance reserves,and resume reserve funding for capital equipment and facility improvements.
Water/Sewer Fund Status—Rate Discussion
As part of the FY 2008 water rate and fee adequacy report,a recommended increase in the combined rate to
$2.40/1,000 gallons was approved. A second rate increase was proposed for FY 2010 to a combined rate of
$3.00/1,000 gallons and remains in effect. The combined rate includes water and the Village's cost of
maintaining the sanitary sewer delivery system. The treatment of sewage is handled by the respective counties.
The Metropolitan Water Reclamation District of Greater Chicago bills Cook County residents through an ad
valorem tax. Lake County charges system users$4/1,000 gallons. Staff presented a worksheet proving data on
the Water and Sewer Fund.
Centralized Purchasing Program
Buffalo Grove faces increasing demands and decreasing resources. Centralized purchasing operations—
appointing a single agent to serve as liaison between vendors and departments and adopting written procedures
for administrating purchasing policies will help ensure the efficient and cost-effective purchase of goods and
services for the Village. According to the Illinois Association of Public Procurement Officials,Buffalo Grove
could achieve 15-20%cost savings per year through volume buying and improving the Village's bidding and
quotation procedures.
Voluntary Separation Incentive Status Update
In January 2011,the Village offered the Voluntary Separation Incentive program to all non-represented
employees. The program was structured to provide a severance payment based upon years of experience,and
was purposefully designed to encourage higher-salaried personnel to retire or separate from service in order to
re-fill positions at lower wages. Faced with an aging workforce and increasing personnel expenses as a
percentage of total operational costs,this strategy was and is necessary to weather the current economic
downturn that has had a prolonged effect on the Village's finances.
Tier II Wage Program
Staff presented a document containing the current Tier I salary structure that became effective for all current,
non-represented,Village of Buffalo Grove employees on January 1,2011,as well as the newly approved
Tierl salary structure for members of the Fire bargaining group,which became effective on December 31,2011,
and a draft of the proposed Tier II salary ranges for all Village positions..
Health Plan Status Update
On June 20,2011,the Village Board authorized staff to enter into an agreement with the Intergovernmental
Personnel Benefit Cooperative(IPBC)Pool to provide Village employees with their health,dental and life
insurance coverage for the period of January 1,2012 to July 1,2014. Staff presented plan structure scenarios,
plan offerings and ancillary services available.,
ADJOURNMENT
Moved by Berman,seconded by Sussman,to adjourn the meeting. Upon voice vote,the motion was
unanimously declared carried,and the meeting was adjourned at 8:45 P.M.
iat M Sirabian,Village Clerk
APPROVED BY A E THIS 25th DAY OF July ,2011
AZ
10)
(Ft illage President