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09-30-2010 Special Meeting 2011 BudgetMINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF DES PLAINES, ILLINOIS HELD IN ROOM 102, DES PLAINES CIVIC CENTER, THURSDAY, SEPTEMBER 30, 2010 CALL TO ORDER: The Special meeting of the City Council of the City of Des Plaines was called to order by Mayor Martin J. Moylan at 7:03 PM in Room 102, Des Plaines Civic Center on Thursday, September 30, 2010. ROLL CALL: Roll call indicated the following Aldermen present: Haugeberg, Robinson, Bogusz, Higgason, Brookman, Walsten, Wilson, Argus. Also present were: Acting City Manager Slowinski, Director of Finance Wisniewski, Assistant Director of Finance Bromber, Financial Analyst Raymond, Financial Analyst Fundament, Director of Human Resources Earl, Director of Public Works & Engineering Oakley, Deputy Director of Engineering Duddles, Police Chief Prandini, Fire Chief Wax, Deputy Fire Chief Small, Deputy Fire Chief Eilken, Assistant Director of Public Works Boeche, Interim Director of Community & Economic Development Bourke, Economic Development Coordinator Ganser, Director of Information Technology Duebner and City Attorney Wiltse. 2011 BUDGET: FINANCE COMMITTEE -Alderman Higgason, Chair Alderman Higgason stated that the 2011 Non-General Funds would be reviewed and include the TIF' s, Motor Fuel Tax (MFT), Grant Funded Projects, Capital Projects, Debt Service, Equipment Replacement, IT Replacement, Parking, Water/Sewer, Risk Management, Health Benefits and Library. Acting City Manager Slowinski reviewed his memo of September 30, 2010 regarding the recommended changes to the budget for a 0% Property Tax Levy; approximately $450, 000 would need to be eliminated from the proposed General Fund expenditures. Staff would recommend moving from an 8% actuarial rate to a 7. 5% rate for Police & Fire pension funding and reducing the corporate levy by $85,000. Discussions were held with the Aldermen and residents regarding each of the departments and responses were made by Staff during the discussion for each department or fund. 2011 BUDGET: 09/30/10 PAGE 2 Non-General Fund - Library Alderman Higgason stated that the Library a copy of yet; there attendance budget would not be discussed this evening; their budget has not been provided to the City is not a representative from the Library in this evening; she suggested that the Library discussed at the regular City Council meeting 18, 2010. budget be of October Mayor Moylan asked what the status was of the Library's bridge loan request; when did the City become aware of a loan request; if the Library asks the City to co-sign a loan they should be in attendance; will they pay back the loan; the City needs the necessary documentation Acting City Manager Slowinski stated that he became aware of and received the loan document from the Library on Monday, September 27, 2010; the City's Legal Department is in the process of reviewing the document. Attorney Wiltse stated that he has concerns about the way the document is structured; it's a $1.5 million loan Alderman Bogusz asked if the City has to accept the Library's budget if they are not in attendance on October 18th; we do not have the Library budget in front of us tonight; a large percentage of their budget is this loan; do they have a true cash flow problem. Attorney Wiltse stated that the Library has statutory authority to set their levy; the Library needs to respond to the City as a practical meter. Alderman Higgason received a consensus of the Aldermen to readdress the Library budget at the October 18, 2010 regular City Council meeting; she will contact the appropriate Library personnel to inform them to attend. TIF #1 -No changes were made to the budget as presented. TIF #3 -No changes were made to the budget as presented. 2011 BUDGET: 09/30/10 PAGE 3 TIF #4 -No changes were made to the budget as presented. Mr. Dion Kendrick, 94 3 Webster Lane, addressed the Committee of the Whole and stated that since 2005 TIF #4 has cost the City $3.5 million in cash; about $500,000 in consultant studies and other direct expenses and $3.0 million out of the Metro Square TIF to "buy" the votes of the other taxing bodies to gain their approval of the 5 Corners TIF; it's time to kill this TIF. TIF #6 -No changes were made to the budget as presented. Mr. Dion Kendrick, 943 Webster Lane, addressed the Committee of the Whole and stated that even a good legal contract will not save a bad decision and will not save the City money; commercial real estate is a risky business; municipalities should not be in the business of investing in commercial real estate. Motor Fuel Tax Fund -Assistant Director of Public Works & Engineering Duddles and Boeche answered questions from the Aldermen. No changes were made to the budget as presented. Grant Funded Projects budget as presented. No changes were made to the Capital Projects -Director of Public Works & Engineering Oakley presented and answered questions from the Aldermen. No changes were made to the budget as presented. Mr. Mike Miceli, 300 S. Cumberland Parkway, addressed the Committee of the Whole stating that missing sidewalks are more important than alleys or roads; pedestrians are being detoured to the street; direct the City Manager to present the City Council with a budget cut. Debt Service presented. No changes were made to the budget as Equipment Replacement Fire Chief Wax made a presentation to the City Council and answered questions regarding the purchase of a Fire Ladder Truck; $600, 000 is being requested in 2011 and $600, 000 in 2012; the current truck is 21 years old; major systems in the truck are failing; parts are more difficult to attain, repairs are getting more costly. 2011 BUDGET: 09/30/10 PAGE 4 After further discussion, Alderman Higgason received a consensus of the Aldermen to readdress the purchase of a Fire Ladder Truck at the Special City Council Budget Meeting of October 20, 2010. No changes were made to the remaining portion of the Equipment Replacement budget. IT Replacement Director of Information Duebner answered questions from the Aldermen. were made to the budget as presented. Technology No changes Metra Leased Parking -No changes were made to the budget as presented. City-Owned Parking Fund Director of Public Works & Engineering Oakley answered questions from the Aldermen. No changes were made to the budget as presented. Water/Sewer Director of Public Works & Engineering answered questions from the Aldermen. No changes were made to the budget as presented. Risk Management Director questions from the Aldermen. budget as presented. of Human Resources answered No changes were made to the Heal th Benefits -No changes were made to the budget as presented. ADJOURNMENT: Moved by Haugeberg, seconded by Walsten, to adjourn the Committee of the Whole Meeting of the City Council. Motion declared carried. Meeting adjourned at 10:10 PM. APPROVED BY ME THIS DAY OF