Village of Lincolnshire Committee of the Whole met Oct. 28.
Here is the minutes provided by the committee:
Present:
Mayor Brandt
Trustee Grujanac – Virtual Attendance
Trustee Hancock – Virtual Attendance
Trustee Harms Muth
Trustee Leider – Virtual Attendance
Trustee Pantelis
Trustee Raizin – Virtual Attendance
Village Clerk Mastandrea
Village Attorney Simon
Village Manager Burke
Chief of Police Leonas
Village Treasurer/Finance Director Peterson
Public Works Director Woodbury
Assistant Village Manager/Community & Economic Development Director Gilbertson
Assistant Public Works Director/Village
Engineer Dittrich – Virtual Attendance
*This was a hybrid, in-person and remote video-conference meeting*
1.0 ROLL CALL
Mayor Brandt called the meeting to order at 6:05 p.m., and Village Manager Burke called the roll.
2.0 ITEMS OF GENERAL BUSINESS
2.1 Finance and Administration
2.11 Fiscal Year 2021 Budget Workshop
o General Fund - Revenues & Expenditures
Village Manager Burke thanked staff in attendance and helped assemble the budget. Village Manager Burke especially thanked all the efforts of the Village’s leadership team in moving through the COVID19 pandemic in recent months and working to develop a budget responsive to this new economic reality. Village Manager Burke gave an overview and mentioned the factors which influence the budget including: vision and mission statement, Board policies, financial policies, and the COVID-19 pandemic.
Staff is projecting a $3 million in unrealized revenue due to the effects of the COVID-19 pandemic in the current fiscal year. Village departments canceled, altered, and delayed projects and events. Village Manager Burke discussed continued revenue losses and uncertainty of length of the impacts of the pandemic. Staff focused on the five-year financial forecast to determine immediacy of the problem and look to long-term needs and solutions. Village policy is to maintain 75% of General Fund operating reserves and 20% of Water and Sewer Fund reserves.
For Fiscal Year 2021, revenue is approximately $1 million less than what was expected. Village Manager Burke proposes no wage increase in non-union personnel, elimination of lifeguards at Spring Lake Park, reduction of Public Works seasonal staff, implementation of user fee for leaf collection program, and keeping the full-time Records Clerk position vacant.
Trustee Mark Hancock asked what the increase was in annual expenses over the last four or five years. Village Manager Burke will research and get back to the Board on this question.
Mayor Brandt reminded the Board the Village outsourced leaf collection to Waste Management and signaled support for user fees instead of its current structure. Trustee Harms Muth raised concerns about extending the leaf collection bill to all Lincolnshire residents when they may have a landscaper already collecting leaves. Village Manager Burke will work with Waste Management or other waste haulers to discuss options as bidding and contract negotiations are scheduled to take place in the coming year.
Trustee Hancock asked about the definition of unassigned reserves.
Finance Director/Village Treasurer Peterson said unassigned reserves are not obligated for other purposes or liabilities. Village Manager Burke will bring reports from the audit to show the Village Board examples of different funds and defined reserve types.
Village Manager Burke reviewed entity wide expenditures, General
Fund revenue highlights and projections, and General Fund taxes.
Trustee Raizin asked if Village staff are being too optimistic due to the State of Illinois re-imposing restrictions on businesses. Finance Director/Village Treasurer Peterson stated estimates are very conservative in year-end and FY21 projections. Trustee Leider asked if the Village is better off setting a six month budget instead of an annual budget due to the uncertainty of the pandemic. Village Manager Burke stated staff primarily references the five-year projections to monitor economic conditions. Finance Director/Village Treasurer Peterson noted the financial forecast is a way for staff to reassess the budget mid-year, and an update to the forecast will take place at the mid-year mark in Fiscal Year 2021. Village Manager Burke express concern with budgeting on a six month cycle and the staff time it may require.
Village Manager Burke presented General Fund goals and increases/decreases in expenditures for each Village department, division, and general fund category. Trustee Pantelis asked how records will be affected by not filling the FTE records clerk position.
Village Manager Burke and Police Chief Leonas said the available hours and workload are affected in the records office. Village Manager Burke noted the most noticeable service impact is the fact that the Records Division window is closed at 3:00 p.m. each day rather than being upon until the close of Village Hall business hours at 4:30 p.m. Village Manager Burke noted most records request and services after 3:00 p.m. can be handled at the receptionist counter or online.
o Water & Sewer Fund Revenues & Expenditures
Village Manager Burke reviewed revenues, expenditures, and proposed water and sewer rates. Trustee Pantelis asked how residents will know about water and sewer rate increases. Village Manager Burke explained multiple steps where the public and the Board can provide feedback, as well as use of normal communication outlets including enewsletter, print newsletter, and notice included in the monthly utility bill.
o Other Funds
♣ Motor Fuel Tax
Village Manager Burke reviewed proposed resurfacing projects and year-beginning/year-end fund balance projections.
♣ Police Pension Fund
Village Manager Burke reviewed FY21 funding requested by Police Pension Fund. Village Manager Burke noted staff will recommend an update to the Police Pension Fund Funding Policy to reflect the anticipated interest rate of returns to be implemented once Lincolnshire’s local fund is consolidated with funds across the state as part of the state-mandated pension consolidation effort. Village Manager Burke shared Finance Director Peterson’s research to understand the possible change to the Village’s required contribution once consolidation takes place and noted annual contributions could go down more than $300,000 due to better investment returns under the consolidated plan.
♣ Fraud, Alcohol & Drug Enforcement Fund
Village Manager Burke reviewed use of fund and available funds.
♣ Vehicle Maintenance Fund
Village Manager Burke reviewed use of fund and how fund received revenues. Village Manager Burke explained this is an internal service fund for the Village and each operating department is assessed a charge, reflected as a transfer, to cover the cost of maintaining each respective operating area fleet and equipment.
♣ Park Development Fund
Village Manager Burke reviewed use of fund and proposed usage of funds. Village Manager Burke noted the budget reflects a transfer from the Park Development Fund to the General Capital Fund to pay for proposed Fiscal Year 2021 park projects.
♣ Special Service Area (SSA) Sedgebrook
Village Manager Burke reviewed repayment of bonds and debt service amount related to this special service area fund.
o Other Discussion Items
Village Manager Burke discussed potential revenue options, and staffing changes for opportunities to realign revenues and expenditures and address pandemic impacts. Finance Director/Village Treasurer Peterson discussed the Early Retirement Incentive (ERI) through the Illinois Municipal Retirement Fund (IMRF).
Trustee Raizin asked if staff has sufficient PPE for the coming year.
Chief of Police Leonas answered the Village has adequate supplies and budgeted for extra PPE in FY2021.
Trustee Hancock asked how staffing levels are determined to provide levels of service. Village Manager Burke stated there are staffing level benchmarks in departments like police, but staffing levels in other departments are determined by service expectations and department workload dependent upon community expectations. Village Manager Burke noted it can be difficult to perform a direct comparison in staffing levels between communities as programs and services are not identical between communities.
A discussion of revenue options to consider further followed. Trustees express interest in receiving additional research in the following potential revenue options: cannabis, self-storage tax, and day care use tax.
**At 8:10 p.m., the Village Board decided to continue the meeting and complete the General Fund Capital Project/Expenditures presentation which was originally scheduled for October 29, 2020.**
o General Fund Capital Projects/Expenditures
Village Manager Burke reviewed Capital Fund revenues and expenditures. Trustee Hancock expressed interest in further analyzing which projects are essential. Village Manager Burke confirmed department’s deferred numerous projects and looked at this budget with a very critical eye to determine what needs to be completed in Fiscal Year 2021 and to prevent the Village from falling behind in terms of addressing infrastructure needs.
Village Manager Burke reviewed the facilities capital projects including: phone system upgrades, server infrastructure updates, and body-worn cameras.
Assistant Public Works Director / Village Engineer (APWD/VE) Dittrich reviewed storm sewer and water capital projects. Contractors were given permission to begin work on Lincolnshire Drive north and south, and southeast Windsor Drive projects with parameters for engineering and construction. Trustee Hancock asked what happened with Lake County funds to help pay for some storm water projects. APWD/VE
Dittrich informed Trustee Hancock that Lake County recently opened applications for the funds, staff intends to submit an application, and the County will make a decision in March 2021.
Public Works Director Woodbury reviewed parks capital projects including replacement of park entrance signs. Trustee Grujanac asked if a project is planned in FY21 for the closed tennis courts at North Park. Public Works Director Woodbury noted several options being brought before the Park Board in the first quarter of FY21. Board agreed staff should add a place holder in the budget for the potential project at North Park.
APWD/VE Dittrich reviewed roadway capital projects including road resurfacing and replacing brick pavers with asphalt at south Village Green.
Village Manager Burke reviewed vehicle capital projects including Police Department squad cars and a 1-ton dump truck in Public Works. Village Manager Burke review miscellaneous capital which could include a single audit.
o Water & Sewer Improvement Fund Capital Projects
APWD/VE Dittrich reviewed water and sewer improvement projects.
Two crosstown water main installation projects, a Northampton water main replacement engineering, and sanitary sewer rehabilitation engineering are budgeted in FY21.
o Outstanding Items
Village Manager Burke reviewed potential financing options for future projects.
Trustee Raizin asked if body cameras are an “all or nothing” program. Chief of Police Leonas said each officer would need to have their own camera assigned to them so the Department knows who took the footage.
Trustee Grujanac asked Mayor Brandt to clarify her comment on restaurants following the Illinois Governor’s new COVID-19 restrictions for Region 9. Mayor Brandt expressed her opinion she wants to consider the options and publicize a statement. Many communities publicly said they will not enforce new mitigation restrictions. Trustee Grujanac expressed caution of not complying if there are legal fees or financial exposure to the Village by not following the governor’s executive order.
Mayor Brandt asked Village Manager Burke to look at the other financing options the Village Board researched several years ago like a gas tax.
2.0 ADJOURNMENT
The October 29, 2020, Special Committee of the Whole meeting was canceled and the meeting adjourned at approximately 9:08 p.m.
https://www.lincolnshireil.gov/government/about/agendas-minutes-packets-video?format=raw&task=download&fid=2563
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