Minutes of the Budget Hearing of the Gurnee Village Board - March 16, 2009

MINUTES OF BUDGET HEARING #3

OF THE GURNEE VILLAGE BOARD

GURNEE VILLAGE HALL

MARCH 16, 2009

Call to Order

Mayor Kovarik called Budget Hearing #3 to order at 6:33 p.m.

Other Officials in Attendance

James T. Hayner, Village Administrator; Patrick Muetz, Assistant to Administrator; Tina Smigielski, Finance Director; Chris Velkover, Information Systems Director; Tom Rigwood, Director of Public Works; Fred Friedl, Fire Chief

Roll Call

PRESENT:       6- Garner, Jacobs, Ohanian, Balmes, Schwarz, Ross
ABSENT:         0-  None

 

 

Information Systems Overview

 

Information Systems Director Chris Velkover gave a Power Point presentation and then answered questions.

Strategic Direction

  • Engage staff, officials, residents, and stakeholders using innovative means and interoperable methods
  • Preserve high standards for availability, reliability, integrity, and usability of systems for internal & external users
  • Advance new systems, tools, techniques, and approaches to using technology.

IS Division Strategic Goals

  • Strategy - Improve anywhere, anytime access for designated employees and data sources.
  • Measure - Increase number of handheld, tablet, laptop, and MDC devices connected over WWAN by 25%, Jan 1, 2009 vs. 2010
  • Budget – Cellular Devices & Data Plans, Tablet Computers included in budget proposal.
  • Strategy - Reduce number of physical servers through consolidation & virtualization, while improving recoverability.
  • Measure - Reduce overall physical server count by 10%, Jan 1, 2009 vs. 2010
  • Budget – Virtualization Hardware and Software included in 9-1-1 Fund, along with repurposing existing server hardware.

 

What are the Challenges?

  • Ongoing Support Competing
    with New Projects for Resources
  • Changing User Population
    internal turnover, new external expectations

 

  • Securing & Protecting
    against Loss of Data & Productivity
    more sophisticated threats & attacks
  • Mobility & Remote Access Anywhere, anytime
  • Investing finding balance and avoiding obsolescence with limited funding

What are the Opportunities?

  • Changing
    Internal User Population - Savvy, sophisticated, multi-taskers with new perspective on work
    Resident expectations of how they can interact with services, officials, and each other
  • Mobility & Remote Access Anywhere, anytime
  • Leveraging Internal & External Partners,
    new approaches, working cooperatively

Special Revenue Funds, Debt Service, and Police & Fire Pension Funds

Finance Director Tina Smigielski gave a Power Point presentation and then answered questions.

 Special Revenue Fund

  • Funds established for those activities that must be accounted for separately from general government operations.
    • 911 Fund
    • Debt Service
    • Impact Fee Fund
    • Asset Forfeiture Fund
    • Golf Course Fund

 

 911 Fund Purpose & Revenues

  • Established by the Illinois Emergency Telephone System Act and local referendum (Gurnee Ordinance 89-164).
  • Improve emergency communication equipment, procedures, and facilities.
  • Administered by a 9-member board including 1 Village Board member, and 6 public safety representatives.
  • Revenues mostly comprised of $0.75 monthly surcharge on wire-line and wireless phone service accounts.

 

 911 Fund Expenditures

  • Allowable expenditures prescribed by State statute.
  • May 1, 2008 cash balance estimated to be approx. $850 thousand.
  • FY 08/09: Maintenance of Furniture Workstations, Software interface to Lake County DOT, Fire Station #2 Tower Project
  • FY 09/10: CAD Server Hardware Virtualization, Voice Logging Recorder

 
 911 Fund Expenditures FY09/10

  • Salary & Wages relate to CAD/911 Map / PrePlan maintenance & Clerical
  • Personnel Expenses include User Group Meetings, Training.
  • Contractual items include Connect CTY, Public Relations & SBC Network Charges.
  • Utilities include Charges for 911 Lines & Service, Cellular Data Service
  • Maintenance: ANI/ALI, CAD, UPS, HVAC & Logging Recorder, CAD Interoperability.
  • Capital: New CAD Server Hardware, Server & Storage Virtualization,
    New Logging Recorder
    , setting the stage for NG 9-1-1.

 

Debt Service Funds

  • Bond Fund accounts for repayment of long-term debt.
  • Abated property tax levy; therefore transfer required from the General Fund.
  • FY09/10 expenses:
    • Principal of $ 885 thousand;
    • Interest $372 thousand;
    • Bank fees of $700.
  • Special Service Area #2 accounts for payments made by taxpayers related to special assessments.
  • Not backed by General Obligation of the Village.
  • FY 09/10 expenses:
    • Principal of $22 thousand;
    • Interest of $19 thousand;
    • Bank fees of $350.

 

 

 

Asset Forfeiture Fund

  • Accounts for monies acquired through outcome of drug-related criminal cases or DUI court fines collected.
  • May 1 2009 cash balance estimated at $51 thousand, and looking to add $100 to that balance.
  • Federal and State law require monies expended in local law enforcement efforts such as purchase of D.U.I equipment.

 

Impact Fee Fund

  • Accounts for monies collected from developers to defray future costs associated with additional traffic, sidewalk, storm water, and public safety needs.
  • May 1 2009 cash balance estimated at $2.48 million.
  • Expecting $40 thousand in fees and investment income in FY09/10.
  • Not recommending transfers for the upcoming year.

 

Golf Course Fund

  • Established in 1992 when property was donated.
  • Lease term expires 2031.
  • Income limited to investment income on cash balances in fund, projected to be $10,150.
  • Expenditures limited to occasional legal expense and payment of disputed property taxes. Budgeting $2,000 to allow for contingencies.

 

Police & Fire Pension Funds

  • Account for resources necessary to provide retirement and disability pension benefits to sworn personnel.
  • Financing 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 retirements and/or disability.

 

Police & Fire Pension Revenues

  • Investment Income projections
    • Police $725,000
    • Fire $525,000
  • Employer contribution and change over prior year:
    • Police $1,007,857, 8.8% increase
      • Based on FY08 investment return 5.12%; and funding level of 69.0%.  Cost is approx. 20% of base salary.
    • Fire $894,658, 11% increase
      • Based on FY08 investment return of 5.29%; and funding level of 77.7%.  Cost is approx. 22% of base salary.
  • Projected employee payroll withholdings and rate:
      • Police $497,000 (9.910% pretax);
      • Fire $389,000 (9.455% pretax)

 

Police & Fire Pension Expenditures

  • Benefit Payment (Salaries & Wages) including retiree, surviving spouse & disability pensions.
    • Police $707,000, and Fire $417,000 thousand.
  • Personnel expense includes seminars for Board members, medical reviews, etc.
    • Police $5,500, and Fire $5,500.
  • Professional Services include Investment Management, Bank Fees, and proportional share of Audit fees.
    • Police $71,750, and Fire $29,750.
  • Contractual includes cost of out-sourced Pension Accounting and Benefits Administration, and other miscellaneous items.
    • Police $16,200, and Fire $12,200.

 

It was moved by Trustee Jacobs, seconded by Trustee Garner to adjourn the meeting.

Voice Vote:      ALL AYE:          Motion Carried.

Adjournment

Mayor Kovarik adjourned the meeting at 7:20 p.m.

 

 

Andrew Harris,
Village Clerk