Village of La Grange Village Board of Trustees met March 9.
Here is the minutes provided by the board:
i. CALL TO ORDER AND ROLL CALL
A Special Meeting of the Board of Trustees of the Village of La Grange was held on Saturday, March 9, 2019, and called to order at 8:00 a.m. in the lower level conference room. On roll call, as read by Village Clerk John Burns, the following were present:
PRESENT: Trustees Gale, Kotynek, Kuchler, and McCarty with President Livingston presiding.
ABSENT: Trustees Arnett and Holder
OTHERS:
John Burns, Village Clerk
Andrianna Peterson, Village Manager
Lou Cipparrone, Finance Director
Don Gay, Fire Chief
Charity Jones, Community Development Director
Kurt Bluder, Police Chief
Ryan Gillingham, Director of Public Works
Joe Munizza, Assistant Finance Director
Mark Burkland, Village Attorney
ii. BUDGET WORKSHOP OVERVIEW
President Livingston opened the meeting by thanking the Board of Trustees and members of the management team for their leadership and considerable efforts in the development of a Village budget.
Village Manager Peterson remarked that the development of the budget is essentially a year round process. While the entire budget is carefully evaluated annually, additional effort is focused on the largest components of the budget beginning in the fall with a review of last year's comprehensive annual financial reports, a preliminary review of the property tax levy and pension levies, a workshop dedicated to capital projects, and this workshop, focusing on revenues and operations.
The proposed budget demonstrates the Village's continued emphasis on the maintenance and investment in our public assets and focus on providing outstanding services to residents.
While Village finances have stabilized as a result of controlled spending, the Village needs to remain vigilant as a result of reductions in revenue and ongoing uncertainties at the state level that have the potential of further impacting Village finances.
With this in mind, the management team has developed and proposed a generally status quo budget with few exceptions which, within our conservative revenue expenditures, allows the Village to continue to: 1) deliver high quality Village services; 2) meet pension obligations; 3) proceed with capital and public investment projects, and 4) continue to invest in our human capital.
The proposed fiscal year 2019-20 budget anticipates a surplus of approximately $277,000 at the end of the year and a reserve level of 60%.
Modest surpluses are anticipated for three of the remaining four fiscal years, with a fund balance still above our 50% targeted reserve range at the end of the five year period.
iii. REVIEW OF GENERAL FUND REVENUES
Finance Director Cipparrone reported in detail on each General Fund revenue line-item.
Department Heads were then invited to present their respective departmental budgets to the Village Board for review and comment. Each Department Head was asked to describe budget variations, if any, and to provide a report on progress being made to achieve strategic goals and priorities within their respective areas of responsibility.
IV. REVIEW OF GENERAL FUND AND OTHER FUND BUDGETS
1. Administration, Legal, President & Board and General Ledger
Village Manager Peterson explained the administration budget is anticipated to be under budget for the current fiscal year due to temporary vacancies in two of the four administrative staff positions which have been supplemented with contractual employees and recently an Administrative Intern. Due to the estimated budget capacity in the Administration salary line item, staff is proposing a temporary, part-time economic development consultant to enhance our strategic priorities regarding economic development.
The Village's health insurance renewal is anticipated to reflect a 1.45% increase which results in budget savings of $35,000.
Other technology purchases were discussed which included a new copier for the Village Hall, the purchase of a Smart Board for the Village conference room and the continuation of the website redesign project from FY2018-19. New camera systems also were installed at both train stations.
It was the consensus of the Village Board to concur with staff's budget recommendations.
2. Finance
Finance Director Cipparrone reported that the retirement of the Payroll Clerk presented the Department with an opportunity to evaluate and redistribute duties and responsibilities, resulting in the reclassification of one full-time position to new part time position. The restructuring was due, in part, to new technologies implemented over the past several years which reduced the work load from antiquated manual systems. The restructuring results in a net savings of approximately $35,000 annually. IMRF expenditures are decreasing due to positive investment returns from prior years, resulting in a decrease in the budgeted contribution rate. Telephone expenditures are projected to decrease significantly next year due to the replacement of the old Centrex phone system with a new Voice Over Internet Protocol (VOIP) phone system. The projected savings from the new phone system is $30,000 annually.
It was the consensus of the Village Board to concur with staff's budget recommendations.
3. Community Development
Community Development Director Jones noted that a conditional offer has been extended to a full-time Building Inspector which will continue to improve department functionality. Sales tax revenues continue to remain generally stable as new businesses have or will soon be opening. Building permits for new home construction and commercial construction is also strong. The Community Development Department is planning and collecting data for the proposed review of the Village's Comprehensive (which sets the vision) and Zoning Code Amendments in FY 2021-22 (which implements the vision). Both processes are expected to include public engagement.
The FY2018-19 branding study has been continued into FY2019-20. The brand working group has been working with the consultant to finalize the branding i Ms. Jones presented the current draft brand story and taglines. The Village Board provided feedback regarding the various options and it was recommended that additional focus be placed on the creative elements of the process. Ideally this work will be completed soon in order to coordinate with the Village's 140th birthday. Funds have also been allocated this year to refresh the downtown streetscape as it has been some time since it was first installed.
The valet program was evaluated by the CEDC and it has been recommended that it should be limited to a seasonal service due to low utilization. The LGBA has also recently requested $66,000 in additional funding. Ms. Jones reported that the economic development line item ($50,000) currently is being allocated for the valet program. If the program is seasonally or otherwise adjusted, funds may be available within that line item to consider the LGBA's request or other economic development needs. After discussion, the Village Board directed staff to consider options and provide a recommendation for consideration prior to the budget being finalized.
President Livingston noted that in the past he had received inquiries from businesses regarding video gaming. Ms. Jones provided a general overview of the video gaming statute, potential revenues, and experiences in neighboring communities. The Village opted out of video gaming in 2009. The CEDC considered the matter over a year ago with mixed opinions. It was agreed that the topic will continue to be monitored.
It was the consensus of the Village Board to concur with staff's budget recommendations.
4. Police Department, Asset Forfeiture Fund, Auxiliary Police Fund
Police Chief Bluder noted that there is a current vacancy within the Police Department and at the current time progress is being made with the Board of Fire and Police Commissioners to fill the vacancy. He updated the Village Board on the results of outsourcing of the crossing guard program. At the current time, both violent crime and property crimes are down. He also provided an update on the new on-line overnight parking / vacation watch software which was implemented in 2018.
In 2018 the Police Department partnered with Lyons Township High School to implement a School Resource Officer program. The Department is also continuing to evaluate the possibility of additional administrative staff such as a Management Analyst or an Administrative Sergeant, neither of which would require additional personnel but the shifting of existing personnel/funding. At this time Lyons Township Area Communications Center continues to assist with reports and record management.
In 2017 there were several pedestrian incidents that prompted the Police Department to develop a Pedestrian / Bike Safety Campaign titled “Be the Change, Travel Safe in La Grange". This program began in 2018 and the Police Department will continue the campaign in 2019.
It was the consensus of the Village Board to concur with staff's budget recommendations.
5. Fire Department and Foreign Fire Insurance Tax Fund
Fire Chief Gay noted that with his retirement approaching on May 31, the process to identify a new Fire Chief has begun. An ad will be posted shortly to advertise for this position. An Assessment Center as well as interviews are scheduled for April. He also noted that a new ambulance is scheduled to be purchased, utilizing existing Equipment Replacement Fund reserves.
It was the consensus of the Village Board to concur with staff's budget recommendations.
6. Building and Grounds and Public Works
Public Works has several retirements on the horizon that may affect the Department and as a preemptive step have begun to examine the organizational structure. Succession planning and a review of the organizational structure is also a priority.
Public Works Director Gillingham reported that there are a number of large projects planned in FY2019-20 including road resurfacing, water main replacement and sewer repairs. Some of these projects will be completed with partnerships with various state, county and local agencies. These projects continue to address roads that are surveyed and determined to be of poor condition. Additional funding options for increased street resurfacing projects were discussed including potential alternative revenues. Mr. Gillingham stated that staff has been generally recommending improvements using the street condition survey as a guide. Some streets require a complete reconstruction while some others only require a resurfacing. Roads that are reconstructed may also require water or sewer main work.
Mr. Cipparrone stated that last year funding for MARS was shifted to roads through the Village's pay as you go program. Every third year $2.5M is available for the road program. In order to provide additional funding for more roads to be completed, the Village will need to consider alternative revenues. Bonds issued in 2015 for the 50th Street Storm Sewer project will be paid off in 2035. Other alternative revenues can also be evaluated. The next road project based on current funding is scheduled for FY 2022 23. The Village could also consider smaller projects each year rather than saving up for a larger project every three years. Staff will evaluate economies of scale related to these options.
It was the consensus of the Village Board to concur with staff's budget recommendations.
7. Equipment Replacement Fund and Pension Funds and Debt Service
Finance Director Cipparrone noted that for budgetary purposes, the employer contribution for the pension levies is expected to increase by 4.5% annually. As long as the Village remains committed to annually fund required contributions as determined by the actuarial valuations, the pension funds will reach full funding requirements within the 2040 statutory timeframe. As there is pension reform and consolidated legislation currently pending, the Village will continue to monitor these efforts closely.
President Livingston noted that the Village continues to fund contributions at 100% in order to responsibly address pension obligations, which continues to be an important discussion item at the local and state level.
It was the consensus of the Village Board to concur with staff's budget recommendations.
V. ADJOURNMENT
President Livingston acknowledged and thanked the Board of Trustees and Village Staff for all of their efforts during the course of the past year.
President Livingston concluded by stating that the proposed budget will be considered by the Village Board in April, 2019.
A motion to adjourn was made by Trustee Gale and seconded by Trustee McCarty. The special meeting of the Village Board of Trustees was adjourned at 12:27 p.m.
https://www.villageoflagrange.com/ArchiveCenter/ViewFile/Item/2203
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