Board of Trustees Meeting

VILLAGE OF HOMEWOOD BOARD OF TRUSTEES MEETING TUESDAY, APRIL 11, 2023 VILLAGE HALL BOARD ROOM CALL TO ORDER: President Hofeld called the regular meeting of the Board of Trustees to order at 7:00 p.m. PLEDGE OF ALLEGIANCE: President Hofeld led trustees in the Pledge of Allegiance. ROLL CALL: Clerk Marilyn Thomas called the roll. Those present were Village President Richard Hofeld, Trustee Cece Belue, Trustee Julie Willis and Trustee Jay Heiferman. Trustee Lisa Purcell, Trustee Vivian Harris-Jones and Trustee Lauren Roman were absent. President Hofeld introduced staff present: Village Manager Napoleon Haney, Village Attorney Chris Cummings, Assistant Village Manager Tyler Hall, Finance Director Dennis Bubenik, Director of Public Works John Schaefer, Director of Economic Development Angela Mesaros, Fire Chief Bob Grabowski and Police Chief Denise McGrath. MINUTES: The minutes of the meeting of March 28, 2023, were presented. There were no comments or corrections. A motion was made by Trustee Willis and seconded by Trustee Heiferman to approve the minutes as presented. Roll Call: AYES—Trustees Belue, Willis, Heiferman, and President Hofeld. NAYS –None. Motion carried. CLAIMS LIST: The Claims List in the amount of $775,230.46 was presented. There were no questions from the Trustees. A motion was made by Trustee Heiferman and seconded by Trustee Willis to approve the Claims List as presented. Roll Call: AYES—Trustees Belue, Willis, Heiferman, and President Hofeld. NAYS –None. Motion carried. President Hofeld said three items totaled 74 percent of the Claims List: $258,515.55 to Chicago Heights for Lake Michigan water, $239,925.31 for employee health insurance for April and $76,830.73 to Thorn Creek Basin Sanitary District. HEAR FROM THE AUDIENCE: President Hofeld invited anyone in the audience to address the board on any subject not on the agenda. Resident Warren Engleberg addressed the board on mass shootings citing a Secret Service report that 72 percent of shooters have major stressors, including family, work and financial concerns. OMNIBUS VOTE: Consider a motion to pass, approve, authorize, accept, or award the following item(s): A. Reappointment/Philip Mason/Economic Development Committee: Approve the reappointment of Philip Mason to the Economic Development Committee for a term ending on April 11, 2025. B. Agreement/Property Maintenance/American Lawn LLC: Authorize the Village Manager to enter into an agreement with American Lawn LLC of South Holland, IL for grass cutting, nuisance vegetation trimming, and debris removal services for privately-owned non- compliant properties during calendar year 2023 at the following prices: Grass Cutting and Trimming Residential $52.60 per lot Commercial $54.50 per hour Debris Pick-up $29.16 per hour Trimming of Nuisance Bushes/Trees $29.16 per hour Weed Spraying $51.97 per lot Grass Cut Upon Arrival $25.00 per lot C. Agreement/Property Maintenance/Utermark and Sons: Authorize the Village Manager to enter into an agreement with Utermark and Sons of Homewood, IL for grass cutting, nuisance vegetation trimming, and debris removal for privately-owned non-compliant properties during calendar year 2023 at the following prices: Grass Cutting and Trimming Residential $52.60 per lot Commercial $54.50 per hour Weed Spraying $51.97 per lot Grass Cut Upon Arrival $25.00 per lot D. Bid Award/Motor Fuel Tax Funds/M&J Asphalt Paving Company: Award a bid for the 2023 MFT General Maintenance Pavement Patching Program to M&J Asphalt Paving Company of Cicero, IL in an amount not to exceed $248,950. E. R-3142/Release of Mortgage/18027-18029 Dixie Highway: Pass a resolution authorizing the release of a $20,000 mortgage in favor of the Village of Homewood to facilitate sale and redevelopment of the vacant commercial property at 18027- 18029 Dixie Highway in Homewood. A motion was made by Trustee Heiferman and seconded by Trustee Willis to accept the Omnibus Report as presented. Roll Call: AYES—Trustees Belue, Willis, Heiferman, and President Hofeld. NAYS –None. Motion carried. New Business: Discussion/Presentation of the FY 2023-2024 Budget: Outgoing Finance Director Dennis Bubenik delivered his 24th report on the village budget before his retirement in May. He said the village always has a greater demand for services than finances allow, but he said this budget of $38,867,675 will have Homewood’s finances continue in the black. The biggest expenses – 56 percent of the budget -- are salaries for police, fire and public works employees. He expects the pullout of Walmart will make a dent in sales and gas tax revenues, but this proposed budget has been adjusted accordingly. He also warned about the increase in workman’s compensation claims which have increased three years in a row. President Hofeld and trustees thanked Mr. Bubenik and the village staff for their outstanding work on the proposed budget. President Hofeld invited comments on the budget. Resident John Farris offered comments. His major concerns were how the utility tax is collected. He believes the village is misusing its federal COVID money arguing an ambulance should not be considered a COVID-related expense. He also said the village should reduce its reserve fund balance. Mr. Bubenik said the reserve fund balance is there for emergencies and the village has in the past had a need to draw from it. He said as a non-home rule community, Homewood has limited ways to raise revenue. General Board Discussion: President Hofeld said the village was recognized as a 2022 Tree City USA by the Arbor Day Foundation. He asked Public Works Director Schaefer to extend the board’s thanks for the work by his team that helped earn this recognition, and to members of the Tree Committee. Adjourn: A motion was made by Trustee Willis and seconded by Trustee Heiferman to adjourn the regular meeting of the board of trustees. Roll Call: AYES—Trustees Belue, Willis, Heiferman, and President Hofeld. NAYS –None. Motion carried. The meeting adjourned at 7:40 p.m. Respectfully submitted, Marilyn Thomas Village Clerk Public comments for March 14, 2023 Village of Homewood Board Meeting By John Farris, Homewood Resident Several comments to consider in preparation of 2023-24 Budget. Jpf 3/14/2023 What Is a Performance Budget? A performance budget is one that reflects both the input of resources and the output of services for each unit of an organization. The goal is to identify and score relative performance based on goal attainment for specified outcomes. [wikipedia] What am I getting for my money? Focus on efficiency and effectiveness. Not just line-item, lump sum budgeting, but budgeting based on production of services or permanent products. Example, public works budget; pave 15 miles of road at $15,000 per mile, budget is 15x$15,000 or $225,000. This is done for direct activities in all departments and overhead of management might be then applied. You are purchasing certain products at estimated unit costs and you budget those costs, and then compare to actual. Compare to outside contract provision versus inhouse production; Think cost accounting. ARE YOU GETTING A GOOD DEAL? https://www.google.com/search?client=firefox-b-1-d&q=PERFORMANCE+BUDGET ex·ces·sive /ikˈsesiv/ adjective: excessive “more than is necessary, normal, or desirable; immoderate” Fund Balance GFOA [Government Finance Officers Association] Two months of expenditure or revenues: 17%. https://www.gfoa.org/materials/fund-balance-guidelines-for-the-general-fund See exhibit. Long term schedule or analysis would reveal the same, excessive accumulation. Long term projects, establish capital improvements fund and transfer balances. Show real commitment and plan for capital needs. Taxes and fees can be adjusted to limit excess and still be financially sound. Many communities “rebate” the excess. Miscellaneous revenues Concept of Fiscal Illusion – residents do clearly see the multiple taxes being applied and are “nickeled and dimed” as they cannot effectively communicate with the government to limit or eliminate these taxes/fees that were instituted at one time when there might have been a need but those taxes/fees are not reexamined to see if they are still appropriate or reasonable with changes in the economy or consumer behavior. They just keep chugging along like the Energizer Bunny. Place of eating tax; 2021: $1,276,134; 2022: $1,697, 623 Utility taxes; what do the natural gas, electricity or telecom taxes have to do with the village and the provision of those utility services? The spikes in the cost of natural gas can have real impacts same volume, but much higher prices, why should the village reap the excess revenue? Natural gas - 2021: $293,166; 2022 $455,585, Ambulance fees – 2021: $603,000; 2022 $696,000 Ambulance fees – just because you can bill health insurance, does not mean you should. Jpf 3/14/2023  Village of Homewood General Fund [CAFR] 2021 2022 Revenue $ 20,623,921 $ 24,597,271 Expenditure 20,576,661 21,795,754 GFOA Policy Level 20% 20% 20% Revenue $ 4,124,784 $ 4,919,454 Expenditure 4,115,332 4,359,151 Unassigned Actual Amount 7,029,846 10,833,227 Excess over 20 % Policy Revenue 2,905,062 5,913,773 Expenditure 2,914,514 6,474,076 Actual % Revenue 34% 44% Expenditure 34% 50% Village of Homewood General Fund Unassigned Fund Balance 60% 2021-2022 50% 50% % EXPEND 40% 44% 34% % REVENUE 30% 34% 20% POLICY LEVEL % 20% 20% 10% 0% 2021 2022 JPF 3/14/2023