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Village of Maryville, Illinois

Description Caucus Minutes - Budget 2005-2006
Date3/30/2005 Location Council Chamber
Time Speaker Note
6:30:03 PM Limberg In the absence of Mayor Gulledge, called the Caucus meeting of Wednesday, March 30, 2005 to order, and invited those in attendance to join in the Pledge of Allegiance. He asked for a roll call of those officers present. Answering the roll call were Trustees Limberg, Schmidt, Bell, Callahan, and Kostyshock. Garcia arrived later.  Also in attendance were Clerk Long, Water & Sewer Superintendent Presson, Street Superintendent Mann, Police Chief Schardan, Comptroller Brussatti, Administrative Clerk Henry, and two (2) reporters.
6:31:04 PM Limberg Called for approval of the minutes of the March 23, 2005 Caucus meeting. He asked if there were any changes. There were none. He asked for a motion to have the minutes as prepared by the Clerk placed on file. The motion was made by Schmidt, seconded by Kostyshock. Voting on the motion: Limberg - yes; Schmidt - yes; Bell - yes; Callahan - yes; Kostyshock - yes. Motion carried.
6:31:50 PM Limberg Explained that the purpose of this Caucus meeting is to discuss the budget. He turned the meeting over to Trustee Callahan, who is Finance Committee Chairman.
6:32:29 PM Callahan Began the discussion with the Administration Budget. He had a question on the Property Tax line item. The year to date column for the 04-05 fiscal year shows a total of $505,423.21. The 05-06 budget figure is $434,000.00. He asked if there was a reason for this. Brussatti explained this figure comes from the tax levy for General Corporate purposes. He explained that the difference is due to this year the money from the levy is distributed to other departments.
6:34:45 PM Garcia Arrived and was seated.
6:34:55 PM Brussatti Went on to explain how the tax levy money was distributed.
6:35:46 PM Callahan Said he has the same question with State Income Tax. He asked if the figure is low because the year is not finished. Brussatti replied yes, the figures are only through February. He asked if the sales tax estimate is lower because the auto dealership left. Brussatti said he thinks so. He said he knows the IMRF and Social Security is lower because now the Village has to pay into the Police and Fire Pension funds. He asked if this will show up in their budget. Brussatti said it should.
6:38:55 PM Schmidt Talked about the $113,500,000 valuation figure. He said he doesn't think the Board took into consideration that the Homestead Deduction was increased by $1500.00 per building. He said the way he figures, the Village will probably lose about a Million Dollars.
6:39:47 PM Callahan Commented that it is based on if the Village asks for a certain amount and the lower the assessed valuation because of the tax law, they will increase the tax. The Village won't lose the money, the residents will have to pay a little more. The discussion turned to the Miscellaneous Income line item and the difference from one year to the next. Brussatti said he will check into this and let him know what it is.
6:40:41 PM Callahan Discussed the expenses for the Administration Department. He asked for an explanation of why the health insurance is down $15,000.00 from 04 to 06. Brussatti explained this is also a distribution to the departments.
6:42:43 PM Callahan Asked the department heads if they included raises into their budget. They did.
6:43:24 PM Garcia Asked if the Christmas bonuses were factored into the budget. She was told it was.
6:44:04 PM Callahan Commented on the difference between the sub-total of expenses in 03-04 of $525,351.08 and the current year of $873,171.48, and the budget for 05-06 is $466,939.00.
6:44:35 PM Jolene Answered that the purchase of the buildings on Schiber Court was factored into the current year expense.
6:45:46 PM Callahan Commented on the Risk Management Contribution. He asked if this wasn't part of everyone's budget. Brussatti said it is. Long commented that it is a levy item that when the money comes in, it is not separated into each department. It is put in one fund, therefore the money is expended from one fund. As the discussion went on, Brussatti reminded the trustees that the Utility Tax, and Sales Tax revenues have been pledged for the General Obligation Bonds.
6:50:48 PM Garcia Commented she wanted an additional $6000 in the salaries. She was told this has been factored in, and will be added into each department's salary line item.
6:51:53 PM Callahan Went to the Building & Zoning Budget. He discussed the difference in the 04 permit fees and the current year. Schmidt commented that they may be $9,000. or $10,000. short of what they anticipated. He asked Schmidt if he knew why, since more homes were built. Schmidt replied that there weren't more homes built, it was about the same or a few homes less. There was more commercial this year than in the past year. Callahan asked why the Subdivision Improvement Fees were so much higher in 04 than they are this year. Schmidt replied that he questioned this also, however, Flaugher is on vacation, and therefore he cannot answer the question until he talks to Flaugher. This discussion went on to include questions and answers about the tax expense, and what was included in the category. Engineering expense was discussed and Callahan asked if any of the expense was reimbursed to the Village by the contractor. Bell suggested discussing this when Flaugher is available to answer any questions.
7:01:42 PM Schmidt Commented that the figure of $80,000 for wages is too high. This will have to be changed.
7:04:07 PM Callahan Moved on to the Buildings budget. He commented that the Police, Public Works, and Fire Department have a building maintenance line item in their budget. His question is what building does this budget cover. Bell commented that there are some buildings such as the Senior Center, Library, and Food Pantry that have expenses that this category would cover. The amount budgeted for 2005-2006 is $50,050.00. As the discussion progressed, it was discovered that there are expenses that are not showing up, due to the way they are coded in General Fund. This will be corrected.
7:21:28 PM Callahan Discussed the Cemetery next. The budget shows a budget of $4,000 to cover expenses next year. He asked Kostyshock if he needed more money than this. Kostyshock replied it depends on if the Board is planning on buying more land to expand the present cemetery. Callahan replied he thinks they should plan on expanding. Kostyshock replied that if they do, the land will cost around $100,000.00. Callahan commented that it would not be paid for in one year. The discussion turned to borrowing money to pay for things such as cemetery land, park land, street repairs, etc. This would be a bond issue and would be paid over a period of twenty years. Callahan suggested adding $10,000.00 to the Cemetery budget for land acquisition.
7:28:01 PM Callahan Went to the Fire Department budget next. He talked about the ambulance fees. In 2004 there was almost $14,000.00 received in ambulance fees, and so far this year there has been $11,000.00 with two months to go, it will probably be $14 or $15,000. His question was why would they budget $90,000. in ambulance fees. Bell said it was probably because they went to the new service to collect the fees. Callahan disagrees with the number. He said this needs to be a little more realistic. This was the only item on the income side that he questions. On the expenses, he asked about the IMRF, pension, etc. He said he knows they are going to the Firemen's Pension, but he questioned why it is going from $15,000 to $23,000. Brussatti commented that some of the expense includes part of the dispatcher expense. The Fire Department pays 50% of the dispatchers salary and related expense. They talked about the Fire Pension. Brussatti said they told him to charge 12% of the wages.
7:35:25 PM Garcia Asked how they can spend more than they bring in. She asked if it comes from the other departments. She was told it comes mainly from General Fund.
7:38:44 PM Callahan Discussed the budget of the Health Department. The budgeted expenses for 2005-2006 is $16,600. There were no questions on this budget.
7:39:07 PM Schmidt Commented that the $2,500.00 for Operating Supplies includes the mosquito biscuits the Village puts out.
7:40:00 PM Callahan Went on to the budget for Hotel/Motel Fund. The estimated revenue for 2005-2006 is $8,475.00 and the estimated expenses are $5,000.00. There were no questions or comments.
7:41:52 PM Callahan Discussed the Library, or 8 Schiber Court, next. He said there was no revenue. There was nearly $1000.00 in expenses, which was for the utilities and getting the building ready to use. The budget for 2005-2006 is $4000.00 for the utilities.
7:43:34 PM Callahan Talked briefly about the Motor Fuel Tax Fund . The only sources of income for this fund is the Motor Fuel Tax and the interest it earns. This money can only be spent on qualified expenses approved by IDOT.
7:45:59 PM Callahan Went to the Park & Recreation Budget. Bell discussed the grants that have been applied for. The Village has been notified that the MEPRD grant for the comfort station has been approved for $93,000.00 and he is hoping to get the OSLAD grant which would be another $93,000.00. There is also a PEP grant for $15,000.00. These amounts are not shown in the income. Callahan suggested that he tell Jolene what figure to put in the budget. Bell commented that the $15,000.00 is already listed along with another $20,000.00 for playground equipment. He suggests changing the grant line item to $212,000.00. They discussed the green space fees.
7:48:45 PM Schmidt Discussed a new development that may be going in during the next fiscal year, and at the $500 fee per lot, there could be $125,000.00 in green space fees.
7:51:04 PM Callahan Asked about the $500,000.00 expense for acquisitions. He questioned if this would be paid for in one year.
7:52:47 PM Bell Answered it is park land acquisition. He said they have asked CARD to do this, but nothing has happened, so the Park Committee is looking for land, and they have asked Juneau for his assistance. He discussed projects that will be paid for with grants.
7:55:22 PM Callahan Asked Bell to decide on realistic figures on a yearly basis instead of one lump sum.
7:58:37 PM Callahan Went to the Police Budget. The discussion began with the income budget. The court fines were discussed. Limberg commented that he and Schardan agree that the protection of the citizens is more important than an officer spending half his time writing tickets. The bottom line on the income for 2005-2006 is $97,750.00. The expenses were discussed. Callahan spoke about the Police Pension and switching from IMRF. There are still some people in the department that will remain on IMRF. There really isn't any way this first year to have an accurate figure, since they have not been notified of the exact percentage to take. They discussed the possibility of the communications consolidation. Schardan commented that he did budget for the cost of this. He also budgeted for two vehicles. They discussed the possibility of getting a loan for these items instead of trying to pay for them in one year.
8:11:39 PM Bell Questioned the 681,800.00 for wages . This is an increase of $130,000.00 for next year. He commented that is more than one more police officer. Schardan answered that he included a $1.00 increase for raises also.
8:13:50 PM Schardan Talked about sending officers to the academy, due to the Police Board doing the hiring. He said he wants $5,000 to training.
8:17:23 PM Callahan Commented on the Public Comfort Fund. The income for this fund comes from property tax. The expense side of this budget was not completed. This needs to be done. He went on to the Special Service Areas #1 and 3. Brussatti commented that these funds are not budgeted. This money is money in and money out to pay the loans. He discussed the Street Budget. There is one item on the income side of the budget, and that is the Road & Bridge tax. The 2005-2006 budget is $95000. Callahan asked Mann if he has included an additional employee in the budget. Mann said he has. Callahan commented that the health insurance looks a little high. It should be revised from $52,000. to $35,000. It was discovered there was a typographical error on the uniform expense. It should be $3500.00 instead of $35,000.00. He talked about the $700,000. for streets. He suggested instead of one lump sum this should be amortized over several years. The Village will have to borrow the money to do this. Kostyshock said this will be paid in a year. Some of the money can come from Motor Fuel Tax, plus the General Fund.
8:26:32 PM Callahan Commented that he doesn't think there is enough in the General Fund to cover these expenses. There is also a $200,000. line item for engineering. He said he realizes the Board agreed to do this work, but it can't be done without borrowing the money. He said a reasonable number needs to be decided on and put into the budget. Kostyshock said the number does include the micro surfacing, repairs of the streets, etc., and some of it can be taken from Motor Fuel Tax. Callahan said it should be included in the Motor Fuel budget. He said he still thinks they will have to borrow money. The loan procedures were discussed, as well as the number of years to repay the loan or loans.
8:41:11 PM Callahan Went to the WSOM Fund. He asked if anyone had any questions on the income side of the budget. He asked about water sales. He said it looks like they are not using any more water than they were two years ago, but there are 300 more homes . Presson replied that a lot of this is due to the meter program. He said people are more conscious now about water usage than they were a few years ago. Callahan asked about the facility charge. He said he doesn't think it is tied to the usage, it is tied to the number of users. His question is how can it be down 50% when there are 300 more homes. Presson said he didn't know why it dropped 50%, he will look into it. Callahan went to the expenses. He said the thing that stands out to him is the health insurance expense. Presson commented he may have some employees who marry this year, therefore he included the increase. He said he would like to increase the amount he budgeted for wages by $30,000.00 bringing the total budgeted to $360,000.00. Callahan asked Jolene to change the IMRF, Social Security, etc. to reflect the increase. Callahan asked if the current fiscal year expense jump in the Maintenance to the Utility System, and the Engineering was due to the 159 water main relocation. He was told it was. Bell asked about the radio read meters, and what was budgeted. Presson said he is budgeting $150,000.00. Callahan asked why the Debt Sewer Charge in 2004-2005 was so much. He was told that this is due to the problems with the Collinsville billing system. Callahan questioned the budget amounts on Land, Building Improvements, and Equipment. Presson explained that he would like to buy some land, but has nothing in mind. As for the equipment he would like to purchase a sewer vac trailer, which would cost approximately $40,000.00 and also purchase a backhoe. The Building Improvements would be for the water plant. Callahan again suggested that he amortize these budget items also.
8:54:47 PM Callahan Discussed the Water Softener Fund. He asked Brussatti what the surplus was in the fund. Brussatti answered approximately $188,000.00 . The 2005-2006 budget was discussed. There were no problems with the numbers. Callahan said he has talked with Mary Kane on this. He said the Village doesn't need a separate fund for water softening. It only needs a separate fund to pay the bond and interest, plus 25% overage. It is his recommendation to combine the Softener fund and the Water Fund at the end of this fiscal year.
9:02:07 PM Callahan Talked about the Bond & Interest Fund. He said this is a "money in and money out" fund. He asked Brussatti if the Softener bond and interest could be combined into this fund. Brussatti replied no, and explained that every month money is transferred into Bond & Interest to make the payments when they are due.. He asked Brussatti to balance the Softener fund on April 30th and then every month transfer money into the fund to make the bond and interest payments.
9:04:17 PM Bell Talked about the spreadsheet, and gave Jolene instructions to make the changes discussed this evening.
9:04:52 PM Callahan Commented to those in attendance that the Village is not required by law to have a budget form of government. This is the Village's first practice year of following a budget.
9:06:09 PM Limberg Asked if there was anything else to be brought before the Board.
9:06:13 PM Bell Commented that they need to give Brussatti some direction on how to proceed with some problems they are having with the buildings.
9:06:25 PM Garcia Asked what he was talking about.
9:06:41 PM Bell Replied they are not getting any response back from the contractor. The roof has a bad leak, and Hart Construction will not call the Village back. Hart Construction built the building, and they will not honor the warranty. He said Brussatti has called some of the subcontractors and they will not call back either.
9:11:07 PM Limberg Called for a motion to adjourn. Schmidt made the motion, seconded by Callahan. Voting on the motion: Limberg - yes; Schmidt - yes; Bell - yes; Callahan - yes; Kostyshock - yes; Garcia - yes. Motion carried, and the meeting ended.

Respectfully submitted,

Thelma Long, Village Clerk

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