Finance Committee

Finance Committee Meeting Council Chambers March 11, 2014 8:00 a.m. Call To Order: Meeting opened at 8:04 am Roll Call: Finance Director Neukirch called the roll for Committee members. Committee Members Present: Chairman Joe LoVerde, John Johann, Robert Callero, Village Manager Steve Vinezeano and Finance Director Scot Neukirch Committee Members Absent: None Non Committee Members Present: Mayor Przybylo, Asst Finance Director Laurie Nannini, and Asst Village Manager Hadley Skeffington-Vos Approval of Minutes: The minutes from the February 19, 2014 Finance Committee meeting were up for approval, motion made and all concurred. Accounts Payable Approval: The approval of the Accounts Payable registers for 2/14/2014 and 2/21/2014 were up for approval, motion made and all concurred. New Business Water Leak Appeal Procedure: Finance Director Neukirch explained to the Committee that the tenant at 8866 Prospect had requested to appeal his water bill resulting from a leak with the Finance Committee. The current ordinance does not provide for adjustments due to leaks in rental properties. Neukirch asked the Committee if there was any reason to have the tenant come in to appeal his bill. The Committee confirmed that they are comfortable with the ordinance as it is currently written which does not provide for leak adjustments for rental property. FY 15 Draft Budget Review After some opening comments from members of the Committee, Village Manager Vinezeano and Finance Director Neukirch presented various options to the Committee for their consideration in balancing the General Fund. The complete list of items discussed and the final Committee decision on each item has been attached as part of these minutes. Vinezeano and Neukirch discussed the various options with the Committee and Mayor Przybylo. Much of the discussion focused on the infrastructure needs of the Village. Various plans and studies have outlined areas that need to be addressed, but the Committee, Board and staff need time to develop an efficient and cost effective way of dealing with these large items. The Committee also recommended a $1/1000 gallon sewer charge be implemented to help pay for the Village’s sewer infrastructure needs. The attached recommendations will be brought to the Village Board and discussed during the upcoming budget workshops. Other Business: None Public Comment: None Executive Session: None Return From Executive Session: None Adjournment: Motion to adjourn was made and all concurred at 10:25 am. Prepared by Scot Neukirch on 3/11/2014 e FY 15 General Fund (5,799,296) Original Deficit (1,233,326) Adjusted Deficit Expenses Keep in Budget Yes or No Budget Amount Finance Village Dept Acct Amount Reduced Description Comm Staff Board Variables Engineering costs were not reduced when sidewalk 1430 3810 50,000 Amount program was reduced Overall Health care budget reduced after meeting with 3830 3,997,344 16,783 consultant Landscape maintenance came 1460 3690 90,000 36,982 in under budget Various Personnel Requests (To be discussed with Village Board) Street resurfacing projects postponed until after Matrix recommended comprehensive pavement evaluation study completed and funding plan 1430 3840 2,173,005 1,913,005 discussed. No No ? Phase in these street light replacements over multiple years? Some other funding plan? Spacing of 1440 3610 1,320,000 1,020,000 lights? No No ? Patch and postpone Civic 1460 3810 766,500 716,500 Center parking lot resurfacing No No ? Ballard sidewalk, Multi Modal 1430 3810 150,000 Plan Yes Yes ? Replacement of Cityview software. Plan and research replacement with 1720 3085 150,000 150,000 IT during FY 15. No No ? Street sweeping contracting. Postpone until staff reductions take place and Village just purchased a 1430 3610 125,000 125,000 new sweeper. No No ? Enclose administration parking 1460 3810 75,000 75,000 lot No No ?  Keep in Budget Yes or No Budget Amount Finance Village Dept Acct Amount Reduced Description Comm Staff Board Variables Snow plowing software. Postpone until new management reviews the 1430 3620 55,000 55,000 process No No ? Change provider for Life Line program to reduce Village subsidy Expenses 1620 3390 48,295 39,000 (96,000 cost-47,705 revenue) No No ? New street light testing. Postpone until after we can address the current 1440 3610 45,000 45,000 street lights that need to be replaced. No No ? 1540 3370 40,000 Reduce Façade Program Yes Yes ? GIS vehicle tracking for village vehicles (software & ? ? 0 (15,000) equipment) $15,000 Yes Yes ? Study for Fire Dept relocation 1460 3370 0 (60,000) $60,000 Yes Yes ? Portable camera equipment 1025 3820 0 (10,000) $10,000 Yes Yes ? Additional admin furniture ? 3830 0 (10,000) $6,000 Yes Yes ? 1460 3630 0 (1,600) Historical Soc projector $1,600 Yes Yes ? 2 trustees and Mayor to go to Nat League of Cities conference in 1020 3110 0 (4,500) Washington DC $4500 Yes Yes ? Increase conference registration for annual IML Conference in 1020 3110 800 (1,200) Chicago from 3 to 7 $1200 Yes Yes ? 1020 3370 0 (60,000) Lobbyist $45,000 Yes Yes ? Heating and cooling repairs to council chamber and lobby 1460 3610 0 (76,000) $76,000 Yes Yes ?  Keep in Budget Yes or No Budget Amount Finance Village Dept Acct Amount Reduced Description Comm Staff Board Variables Other Items? ? ? ? Other Items? ? ? ? Other Items? ? ? ? 4,948,600 3,953,970  Keep in Budget Yes or No Budget Amount Finance Village Dept Acct Amount Reduced Description Comm Staff Board Variables Revenue Add to Budget Yes or No Budget Amount Finance Village Dept Acct Amount Added Description Comm Staff Board Variables Raise Home Rule Sales Tax 20% (1.25% to 1.5%) Total revenue generated would be $2.5 million. Ordinance must be approved by Oct 1. This represents only 4 months for FY 15 since collections 1115 1021 2,517,793 would start Jan 1, 2015. No No ? Sales tax "gross sales" 1019 1020 estimated increase. 1115 1021 27,990,708 Currently at 2.5% No No ? 0.50% Increase Local MFT Tax 1115 1023 380,000 152,000 (currently 2.5 cents/gal) Yes Yes ? 1 cent(s) Increase Electricity Tax. Based on a survey of 40 communities, Niles rate is 33% lower than the average of those communities that have this tax. 1115 1030 1,050,000 210,000 Still researching Yes Yes ? 20% Revenue Video Gaming Estimate based on 25 licenses implenting With restrictions, difficult to determine when 1115 ? 0 would be implemented ? ? ? Non abatement of debt service levies for Capital Projects Fund Additional amount not abated reduces amount of sales tax needed to be transferred from the General Fund 4315 1005 425,000 250,000 Each 5% raises property tax bill for avg resident $12-$13/year Yes Yes ? $ 250,000 Other items? ? ? ? Other items? ? ? ? Other items? ? ? ? Other items? ? ? ? 32,363,501 612,000 Sewer Charge Both a sewer fee and the water rate are based on 1000 gallons of usage. Water rate Based on the most recent water audits commercial properties use approximately 700,000,000 (33%) gallons per year, residents 490,000,000 (24%) per year and Glenview 900,000,000 (43%). Glenview receives a 10% discount from the lowest water rate available in the Village and would not be subject to a sewer charge if imposed. The average resident uses about 60,000 gallons per year (490,000,000 gallons/8000 accounts) Each dollar increase will raise the average resident's bill about $60 per year whether it is for a water or a sewer charge.