Board of Trustees Meetings

SPECIAL MEETING PRELIMARY REVIEW OF FY2011 BUDGET BOARD OF TRUSTEES, VILLAGE OF NILES March 22, 2010 6:00 p.m. CALL TO ORDER The Special Board of Trustees meeting was called to order at 6:00 p.m. by President Robert M. Callero in the Council Chambers, Village of Niles Municipal Building, on Monday, March 22, 2010. PLEDGE OF ALLEGIANCE The pledge of allegiance was led by President Callero. ROLL CALL On roll call, the following Trustees were present: Chris Hanusiak, James Hynes, Joe LoVerde, Louella Preston, Andrew Przybylo and Alan Weel. STAFF IN ATTENDANCE George Van Geem, Village Manager Scot Neukirch, Finance Director Steve Vinezeano, Assistant Village Manager Joseph Annunzio, Village Attorney Kathy Barnat, Human Resources Coordinator Martin Friedman, Family Services Director Scott Jochim, Public Services Director Carl Maniscalco, Family Fitness Director Kelly Mickle, Senior Center Director Barry Mueller, Fire Chief Charles Ostman, Community Development Director William Shaw, MIS Director Dean Strzelecki, Police Chief OPENING COMMENTS President Callero explained that the purpose of this open meeting/workshop is for preliminary review and discussion by the Trustees of the proposed FY2011 budget with comments from the public. He stated that in the last year, sales tax receipts were down 6 to 7 percent ($1.7 million). In response, the staff and Board have cut $1.3 million in expenses and at the end of this fiscal year, April 30, 2010, there is a deficit of approximately $400,000, which will be taken out of the reserves. The first budget draft for this coming year had a deficit of $4.8 million. Village Manager George Van Geem, Finance Director Scot Neukirch along with the Department Directors were able to propose expense reductions of $1.5 million and additional revenues of $1.3 million, which leaves a deficit of approximately $2 million. Problems we are facing are Police and Fire Pension funding; increase in health insurance premiums; and tax revenues which are down.  March 22, 2010 Special Board Minutes Village Manager George Van Geem stated that this has been the most challenging and difficult budget that he has seen in his 18 years with the Village. The budget presented tonight is a work in progress and the public is invited to share their comments with our elected officials, who will have to make some difficult decisions. BUDGET PRESENTATION/ DISCUSSION Budget Process Timeline Finance Director Scot Neukirch reviewed the Niles Budget Process timeline, beginning in November and final approval in May. The Finance Director and the Village Manager met with the various departments to discuss their requests. During this process, about $930,000 was reduced from the deficit and the Board was given a detailed list of the items cut. The Finance Director and Village Manager then met with the Finance Committee and individually with trustees to review the budget and proposed changes. These meetings led to the preparation of Phase 2 of the draft budget presented tonight. Staff is looking for direction from the Board as to how to move forward with these proposals to prepare Phase 3 of the budget document. Review of Funds with Mr. Neukirch gave a general overview and responded to questions Significant Changes and from the Trustees on the 15 different funds: General; Water; General Fund Overview Automotive; Family Fitness; MFT; Police Pension; Fire Pension; Civic Center TIF; Milwaukee Touhy TIF; E911; Street & Bridge; Debt Service; Capital Projects; Waste Agency; and Risk Management. The current budgeted deficit is estimated at $4.8 million which may increase to $5.5 million if municipalities only receive 7% of the income tax as opposed to 10% as proposed by Governor Quinn. With the proposed revenue enhancements and proposed expense reductions the projected deficit would be about $2 million which would be drawn down from the Village’s cash reserve fund. Options for Balancing the Open for discussion were the following proposed options to be General Fund considered to balance the General Fund. Proposed Expense Options  Personnel 5% reduction in workforce (est. $900,000 savings) o Early Retirement Incentives o Layoffs o Compensation Issues 2  March 22, 2010 Special Board Minutes  Pension Contributions o Percent of Contributions to Police and Fire currently at 75%  Departmental Services o Closing Departments o Downsizing Departments Family Services Department (reduce by 50%) o Potential branch & leaf pickup service reduction working with Groot for alternatives  Health Insurance Benefits o Employee Contributions, out of pocket limits, drug card, deductible levels  Liability Insurance Coverage o Reduced Umbrella Coverage  Service Levels o Removing or Reducing the 25%Taxi Cab Subsidy for Members of the Senior Center o Discontinuing Routes of the Free Bus o Modifying Street Salting Program method of salting, amount of salt used, and reducing man-hours TOTAL ESTIMATED SAVINGS $1.5 MILLION Proposed Revenue Options  New Tax Proposal o Gasoline Tax 2.5 cents per gallon  Existing Tax Increase Proposals o Property Tax – 10% increase average increase $30 per year per household  Sales Tax Decrease Assumption – 2%  New Fee Proposals o Charge for the Free Bus o Impound Fee $500 for DUI arrest o Red Light Cameras o School Crossing Guard Services (possibly share costs with schools)) 3  March 22, 2010 Special Board Minutes  Existing Fee Increase Proposals o Teen Center Membership Fee from $5 to $20 for residents from $20 to $35 for nonresidents o Life Line for Seniors from $0 to $10/month (over 80 & living alone) o Vehicle Stickers from $25 to $35 and $10 to $15 for Seniors o Liquor Licenses 25% increase TOTAL REVENUE ENHANCEMENTS: $1.3 MILLION MAJOR DISCUSSION Taxicab Subsidy Kelly Mickle, Senior Center Director, explained that members of the Niles Senior Center are eligible for this subsidy to go anywhere but downtown Chicago and to O’Hare. The Village currently pays 25% of the taxicab rides. In January they had 554 rides and 124 people used the subsidy. According to Flash Cab, the majority of people use it for grocery shopping, doctor appointments and restaurants. Life Line Fee Kelly Mickle explained that residents over age 80 and living alone have this service for free; under 80 now pays $25/month for single and $30 per couple. The recommendation is to charge 80 and over living alone $10. The Village currently pays $25/month, over $100,000/yr. Right now, of the 380 people on the program, only 39 are paying. Life Line is a call button seniors wear to use when they need help. This service allows them to contact a neighbor or relative for help, and helps reduce Fire Department calls. Senior Center Membership Nominal fees were proposed for membership in the Senior Center. Family Services Department Recommendation is to reduce the operations by 50% and still have Reductions a staff large enough to respond to referrals by the Police and Fire Departments and the most serious resident cases. Alternatives for residents would be to go to facilities offering services by the Township or County. Family Services Director Marty Friedman stated that they currently have an open caseload of 340 families and this reduction would put an unfair burden on the Department, which has been available to the residents for 40 years. They are working with people with severe problems, like veterans, that cannot avail themselves to other services due to the long wait times etc. He stated that as the economy has worsened, their services are needed 4  March 22, 2010 Special Board Minutes more than ever. This was echoed by the numerous public comments in support of the work of the Family Services Department. Marty Friedman added that Family Services is a safety net for residents when the other outside programs have long waiting times or no resources and money to pay. Currently his staff consists of 5 full-time, 4 part-time and 4 contractual employees. Niles Free Bus There was much discussion on Niles Free Bus service which costs the Village approximately $500,000 annually. Trustees questioned the accuracy of the ridership counts; how many riders are actually residents, how many are seniors, etc. The Village pays 40% of the cost to run the buses which are owned by Pace and Niles staffs them with drivers. Trustees requested a ridership survey be conducted and additional information be brought to them. New Gas Tax Niles does not have a gas tax now, but most surrounding communities do. A new 2.5 cents per gallon is being proposed. Vehicle License Stickers Initial recommendation was to raise the sticker fee from $25 to $35 and the senior rate from $10 to $15. After discussion, it was suggest that the Seniors are already getting hit with new fees, etc. and the regular stickers should go up to $40 and the senior stickers remain at $10. They have not been raised in over five years. Crossing Guards Village pays approximately $200,000 for school crossing guards. There was discussion on who is responsible for paying this fee, perhaps it can be shared with the schools. Liquor Licenses The Village of Niles liquor license fees are low compared to other communities. A 25% increase was proposed. TRUSTEE COMMENTS In reviewing these items, the Trustees suggested an employee efficiency study of village staff and service delivery, done by an outside company; a forensic audit of the Village’s finances; an IT audit of the MIS Department; a study of the Niles Bus System to determine ridership, possibly charging a fee, adjusting routes to save money, or resident bus pass system; a survey of other communities to compare liquor license fees; and a ridership survey of the Niles Free Bus. PUBLIC COMMENTS Linda Feldheim, Culver School Social Worker with 25 years experience with children and Morgan Dubiel spoke in support of the services provided by the Family Services Department. Bev Kinowski spoke in favor of the Free Bus, especially its benefit to the Senior Center’s Low Vision Group field trips. Norbert Johnson is in favor of gas tax and fees to belong to Senior Center. 5