Administration & Finance Committee

APPROVED Minutes of a Meeting of the Administration and Finance Committee Village of Northbrook Cook County, Illinois March 10, 2015 CALL TO ORDER Trustee Scolaro called the meeting to order at 6:40 p.m. On roll call, present were Trustees Karagianis, Scolaro, and Ciesla. A quorum was present. Also present were Village President Frum; Trustees Buehler and Heller; Village Manager Richard Nahrstadt; Deputy Village Manager and Chief Financial Officer Jeff Rowitz; Fire Chief Jose Torrez; Police Chief Charles Wernick; Deputy Police Chief Lou Caruso; Deputy Police Chief Scott Dunham; Jason Batalden, Internal Services Administrator, Police Department; Emma Perley, Management Analyst, Fire Department; Lori Baker, Chief Information Officer; Kelly Hamill, Public Works Director; Matt Morrison, Assistant Public Works Director; Paul Kendzior, Village Engineer; Rob Sabo, Assistant to the Village Manager; Betsy Garibaldi, Assistant Finance Director; Iwona Petryszak, Accounting Manager, Finance Department; Tom Poupard, Director, Development and Planning Services; Michael Strong, Management Analyst, Development and Planning Services Department; Greg Van Dahm, Human Resources Manager; and Debbie Ford, Village Clerk. HEAR FROM THE AUDIENCE None. PRESENTATION & DISCUSSION OF FY 15/16 DRAFT BUDGET Village Manager Richard Nahrstadt said that the proposed 2015/16 budget includes no increase in the General Fund’s portion of the property tax levy. He further stated that when the Board approved the tax levy in December, staff was asked to develop a budget that would allow for at least partial abatement of the increase to the police and fire pension funds. Mr. Nahrstadt said that the draft budget, as presented, includes full abatement of the $300,000 increase to the property tax levy that was approved for pensions in December, and accordingly the abatement ordinances appear on tonight’s Village Board agenda. He also stated that the 2015/2016 proposed budget includes no new taxes or fees, with the exception of a proposed increase in building permit fees for single family homes. Village Manager Richard Nahrstadt continued that the proposed 2015/16 budget includes no increase in authorized headcount. He said that the draft budget includes filling one previously authorized police officer position that has been held open for several years by utilizing overtime. This was included as a second year adjustment in last year’s budget, when there was a consensus of the Board to bring the Police Department back to full authorized staffing. . He said that the two vacant Firefighter positions will continue to be covered with overtime by existing staff. Mr. Nahrstadt also stated that the proposed budget includes moving a full-time clerical position from the General Government Department to the Department of Development and Planning Services to meet increased demands in that department. The current part-time clerical position in Development and Planning Services will be transferred to General Government. Mr. Nahrstadt said that the proposed 2015/2016 budget projects a surplus in the General Fund of $227,905. The fund balance is estimated to be 48.7 percent of revenue. This is $3.8 million above the 40 percent reserve required by Village policy. Deputy Village Manager and Chief Financial Officer Jeff Rowitz said that projected expenses for the 2015/2016 fiscal year are 0.13 percent less than projections made a year ago. He said that the projected budget for the 2016/2017 fiscal year shows a surplus of $228,195 in the General Fund. President Frum asked if 2016/2017 assumed a property tax increase. Mr. Rowitz said that the projections assumed a three percent increase in the property tax levy for 2016/2017. President Frum said that the Village Board will make a decision regarding the upcoming property tax levy in the fall, before it must be approved in December. Mr. Rowitz reviewed projected expenditures for the 2015/2016 and 2016/2017 budgets FUTURE CONSIDERATIONS State Budget Mr. Nahrstadt said that the State of Illinois’ budget problems may lead it to cut payments that municipalities receive through the Local Government Distributive Fund (LGDF). Governor Rauner has proposed a 50 percent reduction to the LGDF, but it will likely be several months before the final impact will be known. The Committee discussed the need to determine what various cuts to the LGDF would mean for Village services. President Frum said that the Village would lose $1.6 million per year if the LGDF were cut by 50 percent. Surplus The Committee discussed potential uses for the budget surplus. For example, it might be used to offset an increase in water rates necessitated by upcoming improvements to the water system. It also might be used for various capital improvement projects that are included in the Capital Improvement Plan but do not have a committed funding source. . Trustee Ciesla asked whether a new police beat will be necessary given the new development along Skokie Boulevard. Deputy Police Chief Lou Caruso said that a new police officer will be added to the existing beat. The Committee then discussed planned improvements to various village buildings, including $375,000 to repave the main drive and storage yard at the Public Work Center, additional monies to improve the interior of the Public Works Center, and various repairs planned for the Fleet Maintenance garage. The Committee also discussed proposed improvements to the Village Board room, which include painting, carpet replacement, and replacing the audience chairs. The Committee also discussed the need to replace one HVAC unit at the police station that is no longer functional. The Committee then discussed the possibility of touring the police and fire stations to see firsthand the general operating conditions of the buildings. Schedule Administration and Finance Committee Meeting to Discuss Contributions President Frum said that no decision would be made tonight regarding Village contributions to local not-for-profit organizations. She said that the Village should be careful not to promise funds that it may not be able to deliver, especially if the State of Illinois cuts funding to local governments. She said that at least one local not-for-profit has informed her that it will seek an increase in funding this year of approximately 30 percent. Mr. Rowitz said that the Village will hold a public hearing on the budget on April 14, 2015. Village trustees will be asked to approve the 2015/2016 budget at the same meeting. President Frum said that the Administration and Finance Committee may be asked to meet again to develop a response to potential reductions in state revenue sharing. Trustee Scolaro asked staff to prepare options to address the possibility of reduced LGDF revenues for the Committee to review at a future meeting. ADJOURN At 7:20 p.m., Trustee Ciesla, seconded by Trustee Karagianis, moved to adjourn the meeting. The motion passed by a voice vote. Respectfully submitted, Christine Martin Recorder