Special Meeting Board of Trustees

Village of Lombard Village Hall 255 East Wilson Ave. Lombard, IL 60148 villageoflombard.org Minutes Monday, August 26, 2019 3:00 PM Lorraine G. Gerhardt Community Room Special Meeting Board of Trustees Village President Keith Giagnorio, Village Clerk Sharon Kuderna, Trustee Dan Whittington, Trustee Anthony Puccio, Trustee Reid Foltyniewicz, Trustee Andrew Honig, Trustee Dan Militello and Trustee Bill Ware Special Meeting Board of Trustees Minutes August 26, 2019 I Call to Order The special meeting of the President and Board of Trustees of the Village of Lombard held on Monday, August 26, 2019 in the Community Room of the Lombard Village Hall was called to order by Village President Keith Giagnorio at 3:04 p.m. II Pledge of Allegiance Director of Public Works Carl Goldsmith led the Pledge of Allegiance. III Roll Call Present 7 - Keith Giagnorio, Sharon Kuderna, Dan Whittington, Reid Foltyniewicz, Bill Ware, Anthony Puccio, and Dan Militello Absent 1 - Andrew Honig Staff Present: Village Manager Scott Niehaus Director of Finance Tim Sexton Assistant Finance Director Jamie Cunningham Customer Service Systems Manager Scott Gargano IT Manager Kevin Goethals Director of Community Development Bill Heniff Director of Public Works Carl Goldsmith Assistant Director of Public Works Dave Gorman Operations Superintendent Tom Ellis Utilities Superintendent Brian Jack Chief of Police Roy Newton Deputy Chief of Police Tom Wirsing Fire Chief Richard Sander Deputy Chief Ray Kickert HR Director Kathy Dunne Communications Coordinator Avis Meade Assistant Village Manager Nicole Aranas Executive Coordinator Carol Bauer IV Public Participation V Agenda 190359 General Fund Revenue & Expenditure Assumptions/Comments Village of Lombard Page 1 Special Meeting Board of Trustees Minutes August 26, 2019 Trustee Reid Foltyniewicz, Chairperson of the Finance and Administration Committee, welcomed everyone and thanked all for making time to attend the meeting. He presented the 2019/2020 Budget Updates. The Revenue and Expenditure Assumptions - Balanced Budget for FY2020. He went over the sales tax revenue, the initial FY2017-2021 Budget, current 2020 & beyond budget projection. He explained the Top 10 FY2020 General Fund Budgeted Revenues, Additional 1% Places for Eating Tax effective 1/1/2017 and concluded with the Distribution thru Waterfall at year end 2018, $1,500.000. Police and Fire saved $120,000 in pension funds. Policy Discussion was about Commuter Parking Changes, Interactive Voice Response (IVR) system, where to allocate future revenue from sale of 101 S. Main St., where to allocate current balance of 1.15 M in Long Range Plan Fund. Village Manager Scott Niehaus did mention that we are the lowest in commuter parking at $1.25 for daily parking. Surrounding areas at $2.00 - $2.25. The last increase was in 1995. In the Village Manager’s Office there is adoption of a new Customer Service Policy to provide document expectations and training to improve the overall experience for customers. Fire Department request to create a new position for a part time Emergency Management Agency (EMA) Coordinator. Both Trustee Bill Ware and President Keith Giagnorio stated they are struggling with the new (EMA) position. We have been telling everyone to cut back and save then we go and create a new position? They do not feel that is a good thing right now. But open to discussion and review of the position. Police Chief Roy Newton explained what will fill the time of this new position when not in use of emergency. He stated, they will fill out accident/incident reports. They take a long time to fill out - so help with those is needed. They need to be compliant with FEMA. Village Manager Scott Niehaus stated he would get info to the Board on this subject. Carl Goldsmith explained from the Public Works Department the EMA would take over training exercises. They simply do not have time for that anymore. Trustee Bill Ware expressed that he would just need more information and time to consider this position. Village Manager Niehaus also explained it would be a position filled by an outsider - like a retired police or fire ranked person. Also Public Works would have to be involved as well. President Giagnorio asked to put on a time table to review this. The new position will be looked at in about six months. Trustee Anthony Puccio asked what if nothing (no emergencies) happens say in six months - do we get rid of the position? Does the person become instant Commander? In the National Disaster or Rain Derailment it is local for 48 hours and then becomes a Federal Situation? Trustee Reid Foltyniewicz asked if we could get grants to cover this position, if not - why not? Trustee Bill Ware suggested that grant writing would need to be a requirement. This position will have to come back to the Board before it is filled. Village of Lombard Page 2 Special Meeting Board of Trustees Minutes August 26, 2019 Legislative and Executive Departments Legislative and Executive Departments Assistant Village Manager Nicole Aranas reviewed the Power Point presentation for the Legislative and Executive Departments and provided the following: Legislative and Executive FY 20 proposed budget for all funds is $2,679,740 which is an increase of $53,910 (2.05%) compared to the FY 19 budget; General Fund increase is $68,210 (4.71%); Hotel/Motel Fund decrease $3,690 (0.62%); Liability Risk Management Fund decrease $10,610 (12.98%); Legislative Department proposed budget overall increase $81,350 (16.04%); Executive Department proposed budget overall decrease $227,440 (1.30%); reviewed the FY 20 Budget Request Summary page; reviewed the Significant Increase/Decrease page. Reviewed Legislative & Executive Challenges page: continue to control expenses to manage future deficits and prepare for potential revenue cuts by the State of Illinois; continued implementation of Village strategic initiatives and priorities as detailed in the Strategic Plan; continue to prioritize and manage service levels and quality while simultaneously addressing structural budget deficits in a fiscally responsible manner; nurture and maintain public confidence and resident trust in order to maintain fair, efficient and effective government operations. Trustee Foltyniewicz spoke of moving forward each year with reductions. Village Manager Niehaus stated that residents can be provided with information on cost cuts/savings such as keep a police officer or firefighter or retain the banner program. Finance Department Finance Department Director of Tim Sexton reviewed the Power Point presentation for the Finance Department and provided the following: The General Services FY 20 proposed budget for all funds if $5,130,420 which is an increase of $22,780 (0.45%) compared to the FY 19 budget; General Fund increase $146,810 (5.60%); Hotel/Motel Fund decrease Village of Lombard Page 3 Special Meeting Board of Trustees Minutes August 26, 2019 $5,060 (0.65%); Business District #1 (part of Yorktown) no change; Technology Reserve decrease $100,860 (33.34%); Water & Sewer Operating Fund decrease $18,110 (2.91%); General Services FY 19 year-end estimate includes $1.5 million that will go through the Waterfall for 2018 Revenue over Expenditures as shown in the General Fund overview; Economic Incentives are budgeted in the General Fund in General Services and are based on projected sale tax revenues; the projected expense increase to $267,000 (1.13%) from $264,800 in 2019 (Mariano's/Bradford and Thornton's); Mariano's is 19 years and Thornton's is 10 years, and if the maximum incentive is reached in 7 years, the incentive dies; reviewed the FY 20 Budget Request Summary page; Finance Department's FY 20 proposed budget for all funds is $2,262,090, which is an increase of $108,750 (5.05%) compared to FY 19 budget (65.54% of total increase is W&S Operating Fund); General Fund increased $36,170 (2.18%); Hotel/Motel Tax Fund increase $1,300 (3.13%); and Water & Sewer Operating Fund increased $71,280 (15.70%). Reviewed Policy Discussions: Water & Sewer Rate Study; commuter parking changes; 60 day trial using the Village's interactive voice response system; where to allocate current balance of $1.150 M in Long Range Plan; where to allocate future revenue from sale of 101 S. Main. Reviewed Legislative & Executive Challenges page: complete Water & Sewer rate restructure and educate customers on the new rates and change to monthly billing; manage potential changes in commuter parking; continue to reduce expenses to prevent future deficits and prepare for potential local revenue cuts that may be made by the State of Illinois; Cyber Security - do everything possible to minimize the risk but there is always the possibility of cyber attack as log as the Village is doing business outside of our secure environment which is necessary. Hackers hacked into 23 accounts in Texas and locked up the systems; 26 properties have had their water turned off due to non-compliance with the installation of the new Water Smart meters (properties most likely vacant). Community Development Department Community Development Department Director of Community Development Bill Heniff reviewed the Power Point presentation for the Community Development Department and provided Village of Lombard Page 4 Special Meeting Board of Trustees Minutes August 26, 2019 the following: Community Development FY 20 proposed budget for the General Fund is $1,705,760, which is a decrease of $16,620 (-0.96%) compared to the FY 19 budget; Increases include: administration increase of $21,910 from approved FY 19 budget; Planning Services Division increase of $8,550 from FY 19; Code Administration increase of $3,720 from approved FY 19; Private Engineering increase of $5,250 from approved FY 19; no significant capital expenses in FY 19 for these divisions. Decreases are as follows: overall decrease of $56,050 from approved FY 2019; no significant changes identified for FY 2020; if changes occur, it will be a result of additional construction activity; the department would likely utilize external resources to meet need, as was done with contractual service inspections for the Elan & Overture project in 2018 and 2019. Department challenges as follows: managing and meeting expectations of public and development community through the development process; managing property owner expectations of Village; implementing goals and priorities set by Village Board and committees, while meeting service demand (core vs. enhanced); balance between daily operations and R&D (i.e., implementing technology enhancements such as Citizen Serve and virtual inspections, while performing core operations and tasks; building on current and future economic goals and successes. How do we hope to meet the challenges: Use of myriad of staffing options (part-time, season, third-party, interns, inter and intra-departmental sharing); establishing "backstops" to account for: unanticipated external events (e.g. flooding events, public meetings, private deadlines, etc.); increase in service demand through development entitlement process and construction; unanticipated or scheduled employee time off; engagement of development activity through enhanced tools (TIF, BD2). Trustee Andrew Honig arrived at 4:07 p.m. Fire Department Fire Department Fire Chief Richard Sander provided the following overview: Fire Department's proposed FY 20 budget for all funds is $13,422,770 which his an increase of $518,280 (4.02%) compared to FY 19; General Village of Lombard Page 5 Special Meeting Board of Trustees Minutes August 26, 2019 Fund increased $516,060 (4.28%); Fire Donation Fund - no change; Fire Grants - no change; Hotel/Motel Tax Fund - no change; Foreign Fire Fund decreased $4,690 (8.29%); Liability Fund increased $6,910 (0.88%). Notable changes to Cost Centers: Fire Administration - total increase of $403,230; majority of the increase ($362,500) is due to an increase in the amount transferred to the Firefighter's Pension Fund; Fire Buildings - total decrease of $6,990 due to no major equipment purchases in FY 2020; Fire Prevention - total increase of $8,510 due to a large increase in the Fleet Services accounts and the amount transferred to the IMRF pension fund; Fire & Rescue Services - total increase of $141,520 with majority of increase due to contractual ages and the amount transferred to the Fleet Service accounts; small increase in the overtime budget due to moving the department specialty team's budget from Emergency Preparedness to Fire & Rescue Services; Fire Rescue Training - total decrease of $17,680 due to moving of some new hire costs to Fire & Rescue Services; Emergency Medical Services - total increase of $28,970 primarily due to contractual wage increases; Emergency Preparedness - total decrease of $42,010 due to moving of costs associated with the department's special teams to Fire & Rescue Services; Risk Management - total increase of $6,910 which accounts for the Fire Department's share of insurance premiums paid by the Village, as well as the Fire Department's Workman's Compensation costs. Fire Department challenges: continue to prepare for the increasingly diverse and demanding expectations related to being part of our Village's first line of defense; meet the challenges of an ever increasing call volume associated with an aging population, homelessness, the opioid crisis, mental health concerns and the unknown effects of legalizing marijuana; continue to maintain and update our aging fire stations (Station One built in 1987 and Station Two built in 1969); find innovative ways to address county, state and federal unfunded mandates. Police Department Police Department Chief of Police Roy Newton provided the following overview: Police Department's FY 20 proposed budget for all funds is $14,771,081 which is an increase of $179,681 (1.23%) compared to FY 19 budget; General Fund increased $363,731 (2.66%); Village of Lombard Page 6 Special Meeting Board of Trustees Minutes August 26, 2019 DUI Equipment/Technology Fund decreased $8,060 (41%); Police Donation Fund no change; Police Grants decreased $116,500 (64.01%); Hotel/Motel Tax Fund decreased $860 (1.25%); Federal Seizure Fund decreased $78,200 (86.70%); State Seizures Fund no change; Liability Insurance Fund increased $19,570 (3.54%). Significant Increases/Decreases: Police Administration: increase of $256,840; $209,000 is due to an amount transferred to the Police Pension Fund; Patrol Services: total decrease of $202,294; elimination of a sergeant position; increased Patrol Services overtime by $45,000 to reflect past/current expenditures; Criminal Investigations: total increase of $347,300; three officer salaries and benefits were moved to this cost center that were previously funded in the Patrol Services cost center (2) and Federal Seizure Fund (1); reduction in the Federal Seizure Fund was to reflect the removal of an officer in the federal task force; Police Records: total decrease of $18,990; computerized parking program has been purchased for 2019; Police Traffic Services: total increase of $24,350; 2020 budget has funding for one sergeant (49.5%) and two officers (100%); DUI Equipment/Tech Fund: total decrease of $8,060 which reflects purchase of laptops in 2019 that are not needed in 2020. Police Department challenges: commit to use data mapping and call load statistics; continued age of the police facility now in its 43rd year with interior remodel of certain areas to be considered; significant change in personnel with six retirements in 2019 and additional retirements in 2020; hiring qualified police candidates; conducting promotional exams and initial eligibility list for new hires; maintain technological skills and purchase equipment needed for investigation. 190287 FY2020-FY2029 Capital Improvement Program Discussion of the First Draft. Director of Public Works Carl Goldsmith gave the power point presentation. He highlighted that the 10 year program estimate is $152,553,100. The 20 year program estimate is $16,196,800. The CIP is broken down into categories, based upon the project type. Projects residents will ask about is: Parking Lot Improvements, Parking Lot at 115 W. St. Charles, Sewer System and Stormwater Improvements, North Broadway from Hickory to Finley, South Lombard, Yorktown Lift Station, Street Construction and Improvements, and Lombard Meadows. At Magnolia Circle - once complete, we are done. Completed to seed being planted and made to a “Blank Slate”. Resurfacing on Main Street from Village of Lombard Page 7 Special Meeting Board of Trustees Minutes August 26, 2019 Wilson to St. Charles probably July to October of 2020. Trustee Andrew Honig asked if the project is big enough will there be detours? Director of Public Works Carl Goldsmith answered yes we just haven’t engineered them yet. We do have an interactive map that will have updates and information on all the construction projects going on. Village Manager Scott Niehaus said we will inform the businesses to make sure still open. This CIP is to look over the next 10 years for new trustees to “where’s the need?” The board has been good about that, they fix what is needed instead of “just their district”. 190357 Overview of the Water & Sewer Operations & Maintenance Budget Overview of the proposed Water & Sewer Operations & Maintenance (O&M) Fund Revenue and Expenditure Assumptions. The water and sewer fund had an increase of 2.66%. It is reduced $30,000 (90%) funding for hauling fees from various accounts. He also explained the significant increase/decreases for the water & sewer are for the water meter replacement program, equipment services in the water and meter reading maintenance, professional services in the Glenbard Wastewater Facility, computer service contracts, and the operating supplies in fleet services. He also went over the challenges. Finance Director Tim Sexton gave the power point presentation. He explained how the Finance Committee recommended a chang to go to monthly payments instead of bi-monthly. This will be easier for the residents to budget and pay. Village Manager Scott Niehaus explained the average house uses 2,000 gallons a month. This will be a $.40 increase per 1,000 gallons of water used. $.05 fixed capital fee per bill. This will start on January 1, 2020 for monthly billing and increases. Trustee Dan Militello asked, how much will the Village make per year? Finance Director Tim Sexton answered about $460,000 a year. He also noted that with the smart meters, residents are getting alerts faster if there is a problem or leak. So that has helped a lot. Village Manager Scott Niehaus told us that the overall usage in other towns has gone down 1-2%. Trustee Anthony Puccio commented that they will get complaints. Village Manager Scott Niehaus explained it is a two-step process for communication. He will email the board information to tell residents. Finance Director Tim Sexton explained that 66% of it goes to Glenbard Wastewater for purchase of the water. Village of Lombard Page 8 Special Meeting Board of Trustees Minutes August 26, 2019 Public Works Department Director of Public Works Carl Goldsmith gave the power point presentation for the Public Works Department. Public Works Department’s FY20 proposed budget for all funds is $22,210,252 which is an increase of $425,542 (1.95%) compared to FY19 budget. Some significant increases/decreases consist of: the public works building, repair and maintain Village owned street lights in-house, traffic signals/signs/markings, urban forestry and landscaping equipment, forestry and landscaping rental equipment, replacement roof of the Victorian House, and miscellaneous contractual obligations in Village Events. The water and sewer fund had an increase of 2.66%. It is reduced $30,000 (90%) funding for hauling fees from various accounts. He also explained the significant increase/decreases for the water & sewer are for the water meter replacement program, equipment services in the water and meter reading maintenance, professional services in the Glenbard Wastewater Facility, computer service contracts, and the operating supplies in fleet services. He also went over the challenges. Finance Director Tim Sexton gave the power point presentation. He explained how the Finance Committee changed to go to Monthly payments instead of Bi-Monthly. This will be easier for the residents to budget and pay. Village Manager Scott Niehaus explained the average house uses 2,000 gallons a month. This will be a $.40 increase per 1,000 gallons of water used. $.05 fixed capital fee per bill. This will start on January 1, 2020 for monthly billing and increases. Trustee Dan Militello asked, how much will the Village make per year? Finance Director Tim Sexton answered about $460,000 a year. He also noted that with the smart meters, residents are getting alerts faster if there is a problem or leak. So that has helped a lot. Village Manager Scott Niehaus told us that the overall usage in other towns has gone down 1-2%. Trustee Anthony Puccio commented that they will get complaints. Village Manager Scott Niehaus explained it is a two-step process for communication. He will email the board information to tell residents. Finance Director Tim Sexton explained that 66% of it goes to Glenbard Wastewater for purchase of the water. 190358 2021/2022 Budget and Revenues Sneak Peek and Home Rule Overview Finance Director Tim Sexton gave the 2021 Budget Projection power point. Trustee Reid Foltyniewicz explained the response to growing deficit: position changes. The schedule for 2021/2022 budget decision, Village of Lombard Page 9 Special Meeting Board of Trustees Minutes August 26, 2019 with Spring of 2020, available Revenue Options. Village Manager Scott Niehaus briefly went over Home Rule Overview. Needs to be a successful referendum. Has to be acceptable on a General Election. Have to Adopt an ordinance or citizens can adopt the referendum. Home Rule process and purpose. Need to get out revenue information on Home Rule. One of the benefits is crime fee housing project. Trustee Bill Ware asked, what is the time frame you are looking at? Trustee Reid Foltyniewicz answered, the earliest we can do it would be the April 6, 2021 election. Trustee Andrew Honig stated that communication is the key - we need to get the word out there. Need to get the reasons to tell them. Communication is very important the next year to year and a half. Trustee Bill Ware stated he is in favor of Home Rule. Trustee Anthony Puccio is in with Home Rule. Trustee Dan Militello, image taking away but now we will be in charge of property changes. Trustee Andrew Honig, we implement the change but what about the next board? Trustee Reid Foltyniewicz said these are the reasons - if different ideas then let us know. Realtors in town will have to deal with it, we need a workshop on Home Rule to discuss everything for Spring of 2020? The discussion continued with the next step. Village Manager Scott Niehaus explained each committee will talk about expenditure options. In March and April we will know more of where we stand. Do it compassionately and honestly. Trustee Reid Foltyniewicz suggested we let community know different revenue source and we are running out of options. Village Manage Scott Niehaus said March and April there will be a Strategic Plan Update and Home Rule meeting. VI Adjournment A motion was made by Trustee Reid Foltyniewicz, seconded by Trustee Anthony Puccio, that the Special Meeting of the President and Board of Trustees of the Village of Lombard held on Monday, August 26, 2019 in the Community Room of the Lombard Village Hall be adjourned at 5:41 p.m. The motion carried by the following vote: Aye: 5- Reid Foltyniewicz, Bill Ware, Anthony Puccio, Andrew Honig, and Dan Militello Absent: 1- Dan Whittington Village of Lombard Page 10