Minutes of the Budget Hearing of the Gurnee Village Board - March 3, 2014

 

MINUTES OF BUDGET HEARING #1

OF THE GURNEE VILLAGE BOARD

 

GURNEE VILLAGE HALL

MARCH 3, 2014

 

Call to Order

Mayor Kovarik called Budget Hearing #1 to order at 5:08 p.m.

 

Other Officials in Attendance

Patrick Muetz, Village Administrator; David Ziegler, Assistant Village Administrator/Community Development Director; Scott Drabicki, Village Engineer; Erik Jensen, Management Analyst; Diane Lembesis, Finance Director; Christine Palmieri, Director of Human Resources; Chris Velkover, Information Systems Director; Tom Rigwood, Director of Public Works; Fred Friedl, Fire Chief; John Kavanagh, Deputy Fire Chief, Kevin Woodside, Chief Police; Terri Kincaid Deputy Police Chief, Jim Caldwell, Deputy Police Chief

 

Roll Call

PRESENT:      6 - Garner, Balmes, Hood, Wilson, Ross, Park

ABSENT:        0 - None

 

 

Executive Overview

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Fund – Administration Department

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 















































General Fund – Community Development Department

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 






































 







General Fund – Public Works Department

Administration, Vehicle Maintenance, & Utility Division

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 








General Fund – Police Department & Communications Division

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

















































General Fund – Fire Department & Foreign Fire Insurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Information Systems Village-wide Overview

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuation until after the Regular Village Board Meeting

 

 







Recalling Budget Hearing #1 to Order

Roll Call

 

 

911 Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Service & Special Revenue Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Police & Fire Pension Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Capital Funds

 

 

 

 

 

Mr. Muetz said that this Budget Hearing would be an overview of the Fiscal Year 2014-2015 Proposed Budget.  Mr. Muetz gave a PowerPoint presentation and then took questions.  Presentation summarized as follows:

 

 Introduction

 

  • Fiscal Year 14/15 budget reflects the allocation of resources to allow staff to execute essential programs and services.
  • Primary financial goal is to provide the highest possible level of service while keeping taxes and charges to a minimum.

 

 FY 14/15 Budget Highlights

 

  • Balanced Budget
  • No new taxes / no increase in tax rates
  • Improvements related to retaining & attracting business
  • Strategic investments in Capital Infrastructure
  • Enhancements to Public Safety
  • Increases General Fund Balance reserve by $681,000

 

Organizational Chart

 

The Village President, Village Clerk and six-member Board of Trustees are elected for overlapping four-year terms.

 

The Board appoints the Village Treasurer, Village Administrator, and other key department heads.

 

The Village Administrator oversees day-to-day operations of the Village.

 

The services we the Village provides are divided among five major areas, including Administration, Community Development, Police, Fire and Public Works.

 

Our Mission

 

Engage

      Our residents, business, and visitors in an ongoing dialogue about their ideas, needs and concerns.

Preserve

      Our neighborhoods, open spaces, financial well-being, and community traditions, in line with our values.

Advance

      Our services in response to community needs, encourage responsible development, and continuously foster a safe and welcoming environment.

 

Total Revenues by Fund

 

The Village is projecting a total of $57.9 million in revenues for fiscal year 14/15, including inter-fund transfers.

 

The funds receiving the largest amount of revenues are the General Fund, projected at $37.1 million, and Utility Operating Fund, projected at $8.3 million. 

 

The Bond Fund and a large portion of the Capital, Police and Fire Pension Funds receive their revenues as inter-fund transfers from the General Fund.

 

Total Revenues by Category

 

  • Taxes comprise 44.3% of budgeted revenues.  Taxes consist of sales, amusement, hotel, resort, food & beverage, use, telecommunications, road & bridge, cable, alarm and foreign fire insurance taxes. 
  • Charges for Services account for 18.4% of budgeted revenues.  In the Utility fund, “Charges for Services” primarily consist of water and sewer sales.  In the General fund, “Charges for Services” primarily consist of ambulance rescue fees, tower/antenna leases, and the reimbursement received for the school resource officers.
  • Intergovernmental Revenues comprise 12.6% of budgeted revenues. This category is found mostly in the General Fund and consists of the Village’s portion of State income taxes, personal property replacement taxes, and payments from the Warren-Waukegan Fire Protection District.
  • Investment Income is 7.3%.  This revenue is mainly located in the Police and Fire Pension Funds.
  • Contributions are 6.5% of budgeted revenues.  The major component of this category is the Village and employee contributions to the Police and Fire Pension Funds.
  • Other Income (or Transfers & Proceeds) is 5.1% of budgeted revenues.  Transfers are the method the Village uses to move money between funds.  For example, the General and Utility Funds transfer money to the Bond fund to pay for debt service.
  • Fines are 3.5% of budgeted revenues. Fines and Forfeitures are generated through items such as parking fines, traffic tickets, alarm fines, liquor license violations, and red light camera violations.  
  • Licenses & Permits account for 2.2% of budgeted revenues.  The three major components of licenses and permits are building permits, business licenses, and liquor licenses.

 

General Fund Revenues

 

Staff is projecting FY 14/15 General Fund revenues to be 3.4%, or $1.2 million, more than FY 13/14 budget.  This is mainly a result of:

  • Tax revenues are projected to increase 2.5% or $621 thousand – Sales Tax and Amusement Tax account for the majority of this increase.
  • Licenses and Permit as projected to increase 25.1% or $210 thousand – This is mainly a result of building permit revenue.
  • Intergovernmental revenues are projected to increase 4.2% or $245 thousand – Income Tax and WWFPD are majority of this.
  • Fines & Forfeitures is projected to increase 7.9% or $141 thousand – Court & Impoundment Fines, and IDROP Program.
  • Contributions are projected to increase 28.9% or $6 thousand – Police & Fire Donations increased. 
  • Proceeds are projected to increase 40% or $20 thousand - Sale of Miscellaneous Assets increased.

 

Revenue Categories Budgeted to Decrease

  • Charges for Service – reduced ambulance transport revenue and had cell carrier cancel a ground lease.
  • Interest income - low interest rates.

 

General Fund Revenue – Tax Composition

 

Sales Tax accounts for nearly 70% of General Fund tax revenue, followed by Amusement Tax, Food & Beverage Tax, Hotel & Resort Tax and so on.

 

Review of General Fund Tax Projections for FY 14/15

 

  • Sales & Use tax
  • $17.1 million
  • 3.2% increase over 13/14 budget
  • 2.3% increase over 13/14 forecast
  • Amusement tax
  • $2.14 million
  • 5.8% increase from 13/14 budget
  • 3.1% increase over 13/14 forecast
  • Hotel / Resort tax
  • $1.53 million
  • 1.9% decrease compared to 13/14 budget
  • 2.7% decrease compared to 13/14 forecast
  • Food & Beverage tax
  • $1.76 million
  • 4.0% increase from 13/14 budget
  • 2.0% increase over 13/14 forecast
  • Income tax
  • $2.96 million
  • 6.1% increase from 13/14 budget
  • 2.0% increase over 13/14 forecast
  • Telecommunications tax
  • $1.20 million
  • 7.7% decrease compared to 13/14 budget
  • 3.1% decrease compared to 13/14 forecast

 

Total Expenditures by Fund

 

The Village is projecting $54.1 million in expenditures for FY 14/15, including inter-fund transfers.  This is a decrease of 3.7%, or $2.1 million, compared to the prior fiscal year. 

 

This decrease is a result of the Gurnee Mills Redevelopment Agreement being fulfilled in FY 13/14, therefore the Village does not need to budget an expense in FY 14/15.  In addition, in FY 13/14, the Village purposefully spent down fund balance in the MFT and Impact Fee Fund.  In FY 14/15, staff is proposing only $45 thousand in MFT Fund balance be spent (FY 13/14 was $1 million) and is not proposing any transfer from the Impact Fee Fund.  Expenditures in the Utility Capital Fund have also been reduced compared to last year.

 

The two funds with the highest expenditures are the General Fund at $36.4 million and the Utility Operating Fund at $7.4 million.  Together, these two funds account for 81% of the total budget.

 

Total Expenditures by Category

 

  • Salaries & Wages account for 41% of expenditures across all Village Funds.  Staff has taken a new approach to calculating cost of living increases.  The approach uses the CPI as a first step and market comparables for a second step.
  • Benefits represent 16% of the budget.  This is mainly pension obligations, medical and dental insurance, and workers comp insurance.
  • Other/Transfers accounts for 11% of the budget.  This is mainly debt service payments and tax sharing agreements.
  • Commodities represent 9.1% of the budget and include tangible items purchased in connection to services including water purchased from JAWA, the materials used in snow and ice control and office supplies among others.
  • Repairs and Maintenance include vehicles, technology, and infrastructure maintenance.  This category accounts for 7.2% of total expenditures.
  • Capital includes infrastructure and equipment replacement and accounts for 5.6% of the total expenditures.
  • Contractual expenditures are 3.6% of the budget and include professional services and outsourced functions.
  • The remaining categories total 4.4% of the budget.

 

FY 14/15 General Fund Expenditures -

Notable Increases/Additions & Notable Decreases/Reductions

 

The FY 14/15 General Fund Budget is projected to increase 4.4%, or $1.5 million, over FY 13/14.

 

Salaries & Wages is due to budgetary assumptions related to cost of living adjustments, as well as the addition of an Economic Development Director position.  The Economic Development Director cost will be partially offset by eliminating an Associate Planner position.  Staff is also proposing to add 6 firefighter/paramedics, but staff is reducing overtime to cover this expense.  Additionally, as part of a strategy to reduce overtime within the Fire Department, the ability to take Holiday time as time off or to sell the Holiday back at the employee option was negotiated so that now all Holiday time will be paid as straight time.

 

Police and Fire pension contributions will increase as the rate of return assumption in the pension funds was lowered from 7.50% to 7.25% based on actual rates of return and a survey of surrounding communities.

 

In FY14/15 staff has included a $500,000 transfer from the General Fund to the Capital Fund for infrastructure improvements. Typically, these transfers are made at the end of the fiscal year. This year, staff included the transfer as part of the regular budget format in order to anticipate the transfer’s effect on the Capital Fund’s fund balance. If the elective expenditure of funding the Capital Fund with a transfer from the General fund is removed from the equation, the General Fund budget is up 2.9%, or approximately $1.0 million, compared to FY 13/14. The statutory funding of the pensions accounts for approximately $483 thousand of the $1.0 million increase.

 

Staff has taken advantage of the Illinois Comptroller’s Debt Recovery Program. The Debt Recovery Program allows local governments to partner with the Office of the Comptroller to collect debt such as parking tickets, fines, fees, and other types of outstanding obligations. Prior to the Comptroller issuing a state check for items such as a tax refund, lottery payout, commercial payment, or payroll check, the amount owed to the unit of local government plus an administrative fee will be deducted. The debtor is provided a notice and given 60 days to protest the offset with the Comptroller’s Office. If no protest is made during the 60-day grace period, the amount owed is transferred to the local government. This program not only recoups revenue but also saves the Village debt collection fees charge by traditional collection firms. 

 

Salaries and Benefits represent 77% of General Fund Expenses.  Three-quarters of Village employees are covered by one of five collective bargaining agreements.  Four of five contracts were renegotiated in FY 12/13, with the fifth being decided by an arbitration award.  Staff was able to work in selected cost saving measures, such as linking salary adjustments to the CPI and lower starting pay for newly hired employees into the contracts. 

 

Department Contingency funding was eliminated from all Departments.  In addition, this line item was reduced in the Village-wide Obligations cost center.

 

The Gurnee Mills Redevelopment Agreement was completed in FY 13/14, therefore staff does not need to budget for this expense. 

 

Staff continues to work to right-size the fleet.  In the past 2 years, the Village has eliminated 6 vehicles.  Reducing the number of vehicles helps reduce maintenance, fuel and liability expenses.

 

FY 14/15 Capital & Special Revenue Fund Expenditures

 

The proposed budget as proposed includes a $3.0 million transfer from the General Fund to the Capital Fund. This transfer will support infrastructure and capital equipment purchases.

 

The budget calls for $1.2 million in the Capital Fund and $895 thousand in the MFT Fund for street resurfacing.  In addition, the MFT Fund contains $55 thousand for crack sealing.  Equipment purchases will focus on improving public safety services and combating an aging fleet. 

 

The Emergency 911 Fund includes expenditures related to new part-time call takers to assist during peak call times, consulting assistance related to consolidation planning and extensive changes in the networking equipment for the Communications Center; Fire Department Mobile Data Computer (MDC) replacement (deferred from FY 13/14); and radio system equipment to improve reliability and reduce monthly recurring phone line charges. The Fund also contains a host of charges related to maintaining 911 equipment.

 

FY 14/15 Proprietary & Fiduciary Fund Expenditures

 

Proprietary Funds

  • Total Utility Fund expenditures (Utility Operating and Utility Capital) are projected to decrease 5% or $392 Thousand.
  • The majority of this decrease relates to purchases in the Utility Capital Fund being reduced compared to last year.
  • On the Utility Operating side, the water tower maintenance program will remain as is with Northwestern and HeatherRidge in the program.
  • Staff plans to sandblast and repaint 20% of the Village’s fire hydrants.
  • Will have a rate increase from JAWA on May 1.  $2.56/1000 to $2.62/1000
  • Golf Fund: Pursuant to our contract with GolfVisions, the budget includes $100 thousand that may be used to make repairs to the golf course and cover other expenses.  On the revenue side, the Village is expecting $50k of the $100k advance to be paid back.

 

Fiduciary Funds

  • Change in the rate of assumption and the Village contribution to the Police and Fire Pension Funds.
  • The Village contribution to the Police Pension Fund will increased from $1,163,598 last year to $1,416,990 ($253,392 or 22%).
  • The Village contribution to the Fire Pension Fund will increase from $1,009,530 last year to $1,239,754 this year ($230,224 or 23%).
  • Special Service Area #2 covers the Hickory Haven subdivision and was established to allow for the installation of municipal water and sewer.  The Village receives tax revenues restricted for this purpose and pays the related debt.  The last payment will be due in FY 20/21.

 

Personnel

 

The Village’s budgeted full-time equivalents are proposed at 216.75 for the 14/15 fiscal year, an increase of 7 compared to the current fiscal year. FY 08/09 headcount was at a high of 226.75.

 

Full-Time Employees (Net Change +6 FTE):

  • Addition of 6.00 Firefighter/Paramedics in the Fire Department.
  • Addition of 1.00 Economic Development Director in Administration.
  • Reduction of 1.00 Associate Planner in Community Development – Building.

 

Part-Time Employees (Net Change +1.05 FTE):

  • Addition of 0.10 FTE Web Technician to the Administration Department to assist with public information efforts. Subtraction of .20 FTE Web Technician in the Information Systems Division. In FY 14/15 the position will be retitled as the Communications/Online Media Specialist.
  • Addition of 1.20 FTE to E-911. Transfer of .75 FTE from Police-Communications to E-911.
  • Addition of .20 FTE to Community Development – Building. Subtraction of .25 FTE to Community Development – Engineering.

 

71% of Personnel are dedicated to Public Safety, 16% to Public Works, 7% to Community Development, and 6% to Administration.

 

Projected Fund Balance

 

As a result of our General Fund Balance Policy, the Village must maintain an unreserved balance of approximately $13.38 million. The projected May 1, 2014 General Fund balance of $22.9 million is 63% of FY 14/15 expenditures.

 

The Village’s cash position is expected to increase by $3.8 million in FY 14/15. Excluding police and fire pension funds, the combined fund balance for Village funds are projected at $41 million at April 30, 2015, a decrease of $1.6 million.

 

This is a result of a purposeful spend-down of unrestricted fund balance in the Emergency 911, Motor Fuel Tax, Capital, and Golf Funds.

  • The spend-down in the Emergency 911 Fund is attributable to an increase in capital projects from $65 thousand to $237 thousand. FY 14/15 projects include extensive changes in the networking equipment for the Communications Center; Fire Department Mobile Data Computer (MDC) replacement (deferred from FY 13/14); and radio system equipment to improve reliability and reduce monthly recurring phone line charges.
  • The spend-down in the Motor Fuel Tax Fund is attributable to $895 thousand for street resurfacing and $55 thousand for crack sealing.
  • The Capital Fund shows a FY 14/15 projected deficit of $2.5 million. Capital projects will be funded by a one-time $2.5 million transfer from the General Fund in FY 13/14.  Major FY 14/15 projects include $1.2 million for street resurfacing, $350 thousand for Public Works vehicles and equipment, $267.5 thousand for Police vehicles, $572 thousand for Fire vehicles, and $215 thousand for video recording security improvements including network capacity and storage upgrades at the Police facility.

 

Questions or Comments:

 

Trustee Wilson asked when the JAWA expansion will start to reduce rates for current members.  Mr. Muetz stated that was still a few years off.

 

Trustee Wilson asked what impact filling the vacant mechanic position will have on vehicle purchases.  Mr. Muetz stated Public Works purchases, as well as repairs and maintenance have been reduced.  It should also help reduce overtime related to snowplowing.

 

Trustee Balmes asked about when the Village’s payments for the Hunt Club Aquatic Center would end.

 

Finance Director Diane Lembesis answered that it would end in 2021.

 

Administration Department

 

Departmental Focus FY 14/15

 

  • Enhance our ability to retain current and attract new businesses.
  • Continue advancements in communications technology.
  • Improve both pace of project completion & turnaround time for departmental requests

 

To put things in Perspective:
Administration accounts for 6.2% of the General Fund

 

Administration - FY 13/14 Review

 

The Administration cost center is expected to be slightly under budget for FY 13/14. Six categories will be slightly over budget and four will be under budget.

 

Administration - 13/14 vs. 14/15 Budget

 

The budget proposal for Fiscal Year 14/15 is 9% higher than the prior year.

 

The majority of the Administration’s costs are allocated to personnel.  In addition to the full-time staff, the wage costs of the Mayor, Clerk, Village Trustees, and Civil Service are also accounted for in the Administration cost center.

 

Information Systems - FY 13/14 Review

 

The Information Systems cost center is expected to be slightly under budget for FY 13/14

 

Information Systems- 13/14 vs. 14/15 Budget

 

The Information Systems Division budget has increased 1.6% compared to FY 13/14.  Most of the changes are reallocation from one category to another. 

 

Public Information - FY 13/14 Review

 

The Public Information cost center is expected to come in 4.7% under budget. The savings is due to the Contractual (32) category bidding of the Keeping Posted newsletter and the Capital (70) category receiving better than anticipated pricing on some equipment purchases.

 

Public Information – 13/14 vs. 14/15 Budget

 

The Public Information budget is 37.6%, or $17 thousand, higher than the FY 13/14. This is due to an increase in the Professional Services (30) category to hire a website contractor to upgrade the Village’s content management system (Drupal) to its most recent edition and to add a responsive template to the website.

 

Municipal Building - FY 13/14 Review

 

The FY 13/14 is expected to end slightly over budget.

 

Municipal Building - 13/14 vs. 14/15 Budget

 

The Municipal Building Maintenance budget is up 7%, or $6 thousand, from the prior year. The increases relate to general maintenance plans for both Village Hall and the Mother Rudd House.

 

Village-wide Obligations - FY 13/14 Review

 

Staff expects this cost center to finish 73.5% over budget for FY 13/14.  This is a result of the $2.5 million transfer of surplus to the Capital Improvement Fund to assist with funding.  All other line items are finishing near budget.

 

Village-wide Obligations – 13/14 vs. 14/15 Budget

 

The FY 14/15 Village-wide Obligations budget is proposed for $3.8 million.

 

As the Village Board abated the property tax levy related to outstanding bonds, the Village will once again transfer from the General Fund to the Bond Fund to cover the annual debt service.

 

The biggest increase is a $500k transfer from the General Fund to the Capital Fund. Typically, these transfers are made at the end of the fiscal year. This year, staff included the transfer as part of the regular budget format in order to anticipate the transfer’s effect on the Capital Fund’s fund balance.

 

The KeyLime recapture was reduced slightly based on prior year history.

The Park Aquatic Agreement will account for $383 thousand in fiscal year 14/15.  The final payment will be January 2021.

 

Funding has been included for the Gurnee Days Fireworks, as well as $11,000 for continuation of the Gurnee’s Got It! Program.

 

Questions / Discussion:

 

Mayor Kovarik asked if a previously discussed assistant to aid with risk management activities or a branding project was in the budget.

 

Mr. Muetz responded no.

 

Mayor Kovarik asked about storage of Village Board video recordings.  Information Systems Director Chris Velkover and Management Analyst Erik Jensen responded.

 

Trustee Ross asked about the plans for the Mother Rudd House.  Village Engineer Scott Drabicki stated windows.  Mr. Muetz stated the Village continues to slowly work on improvements at this property.

 

Community Development

 

Departmental Focus FY 14/15

 

  • Increase the Use of the Building Permit Software System by Our Customers and Residents
  • Finalize the Update of the Zoning Ordinance and Begin Work on Comprehensive Land Use Plan
  • Continue to Maintain Village’s Infrastructure within Budget Limitations

 

To put things in Perspective:
Community Development accounts for 5.6% of the General Fund

 

Community Development – Planning/Building Safety - FY 13/14 Review

 

The Community Development Planning/Building Safety budget is expected to end the year on budget, with a majority of the expenditure categories ending at or below budget.

 

Community Development – Planning/Building Safety - 13/14 vs. 14/15 Budget

 

The FY 12/13 budget is 6.3% higher than FY 11/12.  This equates to a $77,290 increase.   The majority of the increase is a result of the salaries and benefits categories.  This is a result of budget assumptions related to compensation and other benefits.

 

Community Development – Engineering - FY 13/14 Review

 

The Community Development Engineering budget is expected to end the year 4.6% under budget, with all of the expenditure categories ending at or below budget.  Significant savings were realized in the benefits and professional services categories.

 

Community Development – Engineering – 13/14 vs. 14/15 Budget

 

The Community Development Engineering 12/13 budget is expected to be 10.2% under the FY 11/12 budget.  This is a result of reallocating the GIS Coordinator and related expenses to the Information Systems budget.  In addition, expenditures in the maintenance and capital categories have been reduced compared to last year.

 

Questions / Discussion:

 

Mayor Kovarik asked for an update on the website for applying for building permits online. 

 

Community Development Director David Ziegler said in the next few weeks.  This would be followed by an online payment option.

 

Mayor Kovarik then asked about inspection frequency. 

 

Mr. Ziegler stated the number has been up this year compared to last.  While big projects are down, the number of building permits remains steady.

 

Mayor Kovarik then asked about staffing as it relates to an expanded roadway program. 

 

Mr. Ziegler stated additional help would be needed.

 

Trustee Park asked what the initial target date was for the permitting software. 

 

Mr, Ziegler stated December 2013.

 

Trustee Wilson asked if vehicles would be transferred to the Community Development Department when Police squads are replaced. 

 

Mr. Ziegler said yes.

 

Public Works & Utility Operating Fund

 

Departmental Focus FY 14/15

 

  • Improve and maintain Village streets and right-of-ways.
  • Improve and maintain the storm sewer conveyance system to reduce flooding potential.
  • Improve efficiency of vehicles and equipment through preventative maintenance.
  • Improve and maintain the water distribution and sanitary sewer conveyance systems.

 

To put things in perspective:

Public Works accounts for 10.9% of the General Fund

 

Public Works Administration - FY 13/14 Review

 

The Public Works Department is anticipating to finish the year 4.0% budget.  This is mainly a result of increased overtime expenses due to the 2013/2014 winter season.

 

Public Works Administration – 13/14 vs. 14/15 Budget

 

Overall, the Public Works budget is up 4.4% compared to FY 13/14.  This can be attributed to a need to increase overtime hours, as well as replenish snow and ice control supplies.  The 2013/2014 winter season greatly depleted salt supplies.

 

Public Works Vehicle Maintenance - FY 13/14 Review

 

The Vehicle Maintenance Division is expecting to end approximately 12.8% below budget.  This can be attributed to a vacancy throughout the fiscal year and the commodities category due to improved preventative maintenance efforts of the Village starting to generate savings.

 

Public Works Vehicle Maintenance – 13/14 vs. 14/15 Budget

 

Overall, the FY 14/15 Vehicle Maintenance budget is 1.0% higher than FY 13/14. 

 

Public Works Utility Operating - FY 13/14 Review

 

The Utility Operating budget is expected to end the fiscal year on budget. 

 

Public Works Utility Operating – 13/14 vs. 14/15 Budget

 

The overall budget is increasing by 1.8% due to an increase in the cost of water from CLCJAWA..  

 

Questions / Discussion:

 

None at this time.

 

Police & Communications

 

Departmental Focus FY 14/15

 

  • Enhance public safety by adding a second police canine team.
  • Sustain and improve the Police Department’s connection with the community through programming and social media.
  • Promote public safety initiatives within the Village and through Lake County partnerships.

 

To put things in Perspective:
Police accounts for 40.6% of the General Fund.

 

Police - FY 13/14 Review

 

The Police Department expects to end the fiscal year 3.6% below budget.  This is a result of savings related to vacancies, training, fuel and utilities.

 

Police - 13/14 vs. 14/15 Budget

 

The Police Department 14/15 budget is expected to be 3.8% above the FY 13/14 budget.  This is mainly a result of budget assumptions used related to salaries and benefits.  The Department also included additional funding in the capital line item related to upgrading its records management system.

 

Communications - FY 13/14 Review

 

The Communications Budget is expected to end 11.5% under budget.  This is mainly a result of vacancies throughout the fiscal year. 

 

Communications - 13/14 vs. 14/15 Budget

 

The Communications 14/15 budget is expected to be 3.4% higher than the FY 13/14 budget.  The largest changes were the salaries line item based on budget assumptions and including funding for a consultant to assist with 911 consolidation research and planning.

 

Questions / Discussion:

 

Mayor Kovarik asked what the dispatch consolidation research will involve. 

 

Police Chief Woodside clarified.

 

Mayor Kovarik asked if grant funding for the dog is something the Village can expect every year. 

 

Chief Woodside stated the Village has received grants on a yearly basis in the past to help offset costs, and that funded is expected to continue.

 

Mayor Kovarik asked what the advantage of a second canine unit is.

 

Chief Woodside described various advantages, such as reducing the burden on the single handler.

 

Trustee Ross asked if we get reimbursed when our dog helps other communities. 

 

Chief Woodside said there is no reimbursement in terms of funding.

 

Trustee Park questioned the amount of demand of the K-9 unit. 

 

Chief Woodside said the unit is used both proactively to complete duties such as passive drug searches if the dog is available. However, the dog can also be used reactively to help find missing persons or fugitives.

 

Trustee Park asked about the timeframe for the dispatch study.

 

Chief Woodside stated staff is currently working to develop a framework of the Village’s expectations.

 

Trustee Wilson asked about part-time communications operators. 

 

Chief Woodside clarified.

 

Trustee Garner asked if the new K-9 unit would require a new employee. 

 

Chief Woodside stated headcount would remain flat.

 

Trustee Balmes asked how many part-time employees Communications was requesting. 

 

Chief Woodside said the Village budgeted 2000 additional hours, which gives staff some flexibility in determining the appropriate number of new employees.

 

Trustee Park questioned whether the K-9 grant will continue going forward.

 

Chief Woodside stated the grant has been in place since the beginning of the K-9 unit, and he has no reason to believe this would change.

 

Fire Department & Foreign Fire Insurance

 

Departmental Focus FY 14/15

 

  • Hire and orientate six new Firefighter / Paramedics.
  • Create and implement appropriate risk management, personal safety and wellness strategies to reduce on the job injuries.
  • Sustain the Village’s partnership with the Warren Waukegan Fire Protection District.
  • Promote Public Safety Initiatives throughout the Village and Fire District.

 

To put things in Perspective:
Fire accounts for 26.2% of the General Fund

 

Fire - FY 13/14 Review

 

The Fire Department budget is expected to end the year 2.2% under budget.  Significant savings were realized in the salaries, benefits and commodities categories.

 

Fire - 13/14 vs. 14/15 Budget

 

The Fire Department 14/15 budget is expected to be 3.8% above the FY 13/14 budget.  This is mainly a result of budget assumptions used related to salaries and benefits. 

 

Foreign Fire Insurance - FY 13/14 Review

 

The Foreign Fire Insurance budget is expected to end the year 1.7% over budget.

 

Foreign Fire Insurance - 13/14 vs. 14/15 Budget

 

The Foreign Fire Insurance budget is flat compared to FY 13/14..

 

Questions / Discussion:

 

Mayor Kovarik asked about how many employees were out on workers compensation. 

 

Deputy Chief John Kavanagh clarified and reviewed changes over the past year in to help reduce overtime going forward.

 

Mayor Kovarik asked how many people respond on the ambulance and engine. 

 

Fire Chief Fred Friedl explained two on the ambulance, three on the engine.

 

Trustee Park asked for clarification on how the proposed six firemedics would be offset by reductions in overtime. 

 

Deputy Chief Kavanagh stated the Department has minimum manning requirement of 13 people per shift, with 15 people available on shift and 3 allowed to be off on benefit time.  Therefore, if all 3 benefits spots are used, staff is hiring back on employees on overtime. Overtime is commonly used due to the number of employees out on workers compensation. The 6 new employees would make 17 individuals available per shift. Factoring in the three allowed off on benefit time, there is still at least one additional employee available to cover benefit time plus those out on workers compensation. Deputy Chief Kavanagh stated overtime has then been reduced by 70%, which covers the 6 positions and all their benefits.

 

Trustee Park asked how the Village’s workers compensation compares to other Departments. 

 

Mr., Muetz stated as it relates to the Village’s current insurance pool, the Village is not performing well.

 

Trustee Ross questioned how current firemedics will react to a reduction in overtime. 

 

Deputy Chief Kavanagh stated management met with staff and staff was receptive to the proposed changes.

 

Trustee Garner asked how the addition of 6 employees will impact the pension. 

\

Deputy Chief Kavanagh said these would be Tier II employees, which will result in some savings compared to Tier 1. 

 

Trustee Balmes asked how the minimum manning proposal would impact the Fire Department. 

 

Mayor Kovarik stated she called in opposition to it.

 

Trustee Hood asked why 6 firemedics are being proposed, as compared to 5 or less.

 

Deputy Chief Kavanagh stated they worked in multiple of 3s based on the Department operating 3 shifts.  He continued to say management did look at 3 firemedics, but was not able to reduce overtime enough to offset the new salary and benefits.

 

Information Systems Village-wide Overview

 

IS Director Chris Velkover gave the Information System overview including the restructure of the GIS coordinator and how it relates across departments. 

 

Mr. Velkover then reviewed a 10 year history of budgeted expenditures by type and presented the FY 14/15 expenditures by type and department, highlighting the training expenditures and expenditures by department.  Mr. Velkover presented slide of 2013 requested hours by department stating that 50% of the requests were related to public safety.  In FY 14/15, the Information Systems will assist with new police records application, IP video surveillance and distribution, Police Station core network and storage projects, mobile data computer replacement for the Fire Department, and SCADA System, radio systems and Village-wide network improvements.

 

Questions / Discussion:

 

Trustee Park asked for clarification related to storage costs. 

 

Mr. Velkover said the main concern is storage related to public safety operations.  He continued to say the Village has made the transition to share storage across operations via storage area networks. 

 

Trustee Park clarified he was interested in how much is being stored and whether or not the Village is saving too much.

 

Mr. Velkover stated the driver for storage is not necessarily the need to keep historical data but rather the need for new applications which handle and process more data.
 

 

It was moved by Trustee Park, seconded by Trustee Wilson to continue the Budget Hearing until after the regular Village Board meeting.

 

Voice Vote:       ALL AYE:          Motion Carried.

 

Mayor Kovarik adjourned the meeting at 7:07 p.m.

 

 

Mayor Kovarik recalled Budget Hearing #1 to order at 8:06 p.m.

 

PRESENT:      6-Garner, Balmes, Hood, Wilson, Ross, Park

ABSENT:        0

 

911 Fund

 

Fund Focus FY 14/15

 

  • Chart a Path to NG9-1-1
  • Complete our Refresh of Mobile Data Computers (MDCs)
  • Maintain our highly available 9-1-1, CAD, AVL, Power, and Recording Systems
  • Improve Resiliency of Integral Voice & Data Communications Systems

 

911 Fund - FY 13/14 Review

 

The 911 budget budget is expected to end the year 41.3% under budget.  Significant savings were realized as mobile data computer replacement for the Fire Department was not completed.  This funding will be carried forward into FY 14/15.

 

911 Fund - 13/14 vs. 14/15 Budget

 

The 911 Fund 14/15 budget is expected to be 19.2% above the FY 13/14 budget.  This is mainly a result of the addition of part-time call takers, prepay on uninterrupted power supply contracts, display equipment and mobile data computer purchases. 

 

Questions / Discussion:

 

Mayor Kovarik asked what call-takers would do. 

 

Mr. Velkover and Chief Woodside clarified what the Village envisions the call-takers role will be.

 

Trustee Park asked if the per line fee was landline or wireless. 

 

Mr. Velkover stated the Village levies a fee on the landline, which goes directly to the Village.  The State levies the wireless side.

 

Trustee Park asked if all part-time employees are eligible for IMRF. 

 

Human Resource Director Christine Palmieri addressed the question, basically summarizing the threshold is 1000 hours annually. 

 

Diane Lembesis, Finance Director, gave the Debt Service Fund presentation and what is owed on notes and obligations. Under the General Obligation Debt., Ms. Lembesis stated that we have the following three bonds outstanding: 

 

  • Series 2012 Refunding
    • Principal Outstanding: $805,000 as of 5/1/14
    • FY 14/15 Principal Payment: $400,000
    • FY 14/15 Interest Payments: $ 16,100
    • $249,660 paid by General Fund (60%)
    • $166,440 paid by Utility Fund (40%)

 

  • Series 2009 Refunding
    • Principal Outstanding $3,160,000 as of 5/1/14
    • FY 14/15 Principal Payment $760,000
    • FY 14/15 Interest Payment $96,875

 

  • Series 2011
    • Principal Outstanding $9,170,000 as of 5/1/14
    • FY 14/15 Principal Payment $875,000
    • FY 14/15 Interest Payment $322,850

 

 

Ms. Lembesis reviewed the Special Revenue Funds, funds established for those activities that must be accounted for separately from general government operations. They include the 911 Fund, Impact Fee Fund Asset Forfeiture Fund and the Golf Course Fund.  These funds get their money from a specific revenue source.

 

Questions / Discussion:

 

Trustee Park asked about the payment to the Gurnee Park District for the pool payment. 

 

Mayor Kovarik clarified.

 

Ms. Lembesis gave an overview of the Police & Fire Pension Funds and how they are managed.  She stated these funds account for the resources necessary to provide retirement and disability pension benefits to sworn personnel.  Financing for the funds is provided by Village contributions, employee payroll withholdings, and investment income. Each fund has its own board which contracts for professional investment management, approves expenditures, and reviews requests for retirement and/or disability.  She also indicated that the reporting requirement is changing.

 

Police Pension funding level decreased from 71.6% to 67.9%.

 

Fire Pension funding level decreased from 76.2% to 74.9%.

 

Pension Funds - 13/14 vs. 14/15 Budget

 

Expenses in the Police Pension Fund will increase 26% or $323 thousand as additional retirements are anticipated.

 

Expenses in the Fire Pension Fund will increase 9% or $71 thousand.

 

Questions / Discussion:

 

Mayor Kovarik asked about the new mandate from the State as far as pension funding. 

 

Ms. Lembesis clarified.

 

Trustee Park asked how federal policy and the federal economy impact rates of return. 

 

Ms. Lembesis said this is where the pension funds’ investment managers come into play. 

 

Scott Drabicki, Village Engineer presented the Capital Fund overview.

 

Motor Fuel Tax Fund

 

Fuel taxes are earned through sales at the gasoline pump at a rate of $.19 per gallon which is collected by the state.  The state distributes a portion to local agencies, including counties, townships and municipalities based on populations.  Funds must be used in accordance with Illinois compiled statutes.  Revenues for the upcoming year will be approximately $905,000 in new revenue and expenses will be $950,000, with an ending balance $666,000.

 

Questions / Discussion:

 

Trustee Park asked when the Village Board would discuss how to properly fund the roadway maintenance program.  He continued to say that alternative funding sources that may or may not be in the current budget should be discussed, in addition to potential new revenue. 

 

Mr. Muetz stated the Board could hold a Budget Hearing on Monday, March 17th at 6:30 p.m.

 

Capital Improvement Fund

    

Mr. Drabicki gave an overview of the Capital Improvement funding for the coming year including the following professional services:  $15,000 for an Engineering Consultant.  Capital improvements projects include $1,200,000 for road resurfacing, $15,000 for sidewalk improvements, $50,000 for Welton Plaza, and $30,000 for drainage improvements. Technology improvements include $59,000 for the intra/inter network, $15,000 for a large format copier/scanner and $215,000 for Police Department improvements.  On the fleet side, Public Works is requesting $28,500 for the lift control modifications project.  The Street Division is requesting $303,000 for plow and pick-up truck replacement; Police is requesting $267,000 for 6 new Tahoes and detective vehicles; and the Fire Department is asking for $572,000 for fire engine and fire prevention bureau replacements. Regarding equipment, the Street Division is requesting $47,000 for an asphalt hot box and push plow for the front end loader; the Fire Department is requesting 295,000 in grant funding. Real Estate improvement include $100,000 for flood plain land acquisition, $50,000 for miscellaneous land acquisition; $3,000 for property taxes and $1,000 for appraisal fees. 

    

Questions / Discussion:

 

Trustee Park asked if the $215,000 for the Police Department included 911 funds.

 

Mr. Drabicki stated that the $215,000 was exclusive of the 911 funding.

 

Trustee Park questioned if private parties would be assisting with Welton Plaza. 

 

Mayor Kovarik clarified that the Village anticipates private partnerships.

 

Trustee Wilson asked if floodplain land acquisition is reimbursed by FEMA. 

 

Mr. Drabicki clarified that a percentage is reimbursed and it does help our flood insurance rates.

 

Utility  Capital Fund

 

Mr. Drabicki gave an over view of the Utility Fund stating that the capital is a dedicated source of funding from connection and usage charges.  The water and sewer operating fund covers the day to day operations to supply water and sewer services to the Village.  Fund balance may be used in the utility surplus fund for capital improvements.  Utility Capital improvements includes $$25,000 for spot repairs, $5,000 for sanitary back-up mitigation, $125,000 for SCADA improvements, $250,000 for Public Works snowplow and truck replacements and $15,000 for professional services. 

 

Questions / Discussion:

 

Trustee Park asked how long the life span of the SCADA technology is? 

 

Mr. Velkover stated about 10 to 15 years based on technology updates. 

 

Mayor Kovarik stated a second Budget Hearing will be set for March 17th to focus on road maintenance and the final Budget Hearing will be March 31st

 

It was moved by Trustee Balmes, seconded by Trustee Park to adjourn the meeting.

 

Voice Vote:       ALL AYE:          Motion Carried.

 

Adjournment

Mayor Kovarik adjourned the meeting at 9:15 p.m.

 

Andy Harris

Village Clerk