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HomeMy WebLinkAboutMinutes 2001-2003DRAFT — NOT APPROVED City of Evanston Budget Committee Meeting Wednesday, June 20, 2001 Alderman Present: Stephen B. Engelman, Joseph N. Kent, Edmund B. Moran, Jr., Ann Rainey, and Melissa A. Wynne Staff Present: City Manager Mr. Roger Crum, Judy Aiello, Maureen Barry, Patrick Casey, Alex Granchalek, Mary P. Morris, William Stafford, and Donna Stuckert Others Present: George Cyrus, Marty Norckctt, Mimi Peterson, Bob Seidenberg, and Alex Sproul Presiding Officer: Alderman Stephen B. Engelman Summary of Action: Alderman Stephen 13. Engelman called the meeting to order at 7:30 PM NEXT MEETING: Wednesday, July 18, 2001 7:00 PM APPROVAL OF THE MAY 30, 2001 MINUTES: Alderman Engelman moved approval of the May 30, 2001 minutes. The committee unanimously approved the minutes with the correction to Mr. Roger Crum's name. ITEMS FOR CONSIDERATION: Budget Policy or Fiscal Year 002-2003 — Scenarios: A motion unanimously passed to direct staff to complete the preliminary budget for fiscal year 2002-2003 with the idea of increasing the general fund by no more than 3.4%, therefore balancing the other funds accordingly to meet necessary mandates. Staff was also asked to identify and recommend service cuts, including departments and divisions that can be cut back, in order to meet expenditures. Discussion: Mr. Stafford noted the fact that District 65 maintains a 3.4% base levy, but the debt portion of their budget is exempt from any tax caps. General Fund: Mr. Casey made the committee aware of two possible scenarios that could benefit and balance the 2002-2003 budget. Scenario one includes a tax cap of 3.4% similar to the school district policy. Scenario two involves matching revenues and expenditures, estimated 3%. Scenario one, although not a vast difference in dollars from scenario two would include cutbacks and reductions among services and departments. Property Tax: Mr. Casey provided four scenarios to the committee that allows the staff to meet budgetary obligations and property tax issues. Scenario one indicates an increase in the general fund levy by the tax cap of 3.4%. Increasing the police and fire pension by 5% based upon an estimate of actuarial obligations, therefore facing a 5.43% tax levy increase and increase the average tax bill approximately S99 per year. The second scenario included no increase in the general fund levy, meaning remaining the same as this year, resulting in a levy for needs within police and fire pension funds as well for the six million capital plan. This scenario would result in a 6.6% property increase and approximately S67 per year based DRAFT — NOT APPROVED upon the average S10,000 tax bill. The third scenario is similar to a policy in the past, stating no property tax increase this year, however the city would still have to increase fire and police pension funds in order to meet actuarial requirements, as well as still fund the debt service. This scenario would not affect the taxpayer, however, it would decrease the general fund by close to one million dollars resulting in a search for additional funds or cuts within general fund services and programs. Scenario four involves increasing the general fund levy to meet what we know our expenditures are going to be. Without identifying any new revenues, we would have to increase the general fund levy by 1.7 million dollars or 12%, raising the property tax approximately S200 on an average S10.000 tax bill. Mr. Crum informed the committee that any new commercial property or anything generating sales tax would bring improvement to the City of Evanston. By anything, that includes single family homes and condos that sell for $300,000 or greater, in particularly replacements of commercial property that previously generated little property tax. Apartments, on the other hand, are a little more problematic as far as services, but they generate twice the tax rate. Mr. Crum went on to explain part of the problem being due to the pro rasa share that the City of Evanston receives in relation to the remainder of the state, and due to the minimal 1 % increase in population over the past ten years, Therefore, part of the city income tax is sent to other communities within the state whom experienced greater growth. Focus Groups: The committee agreed that the focus group process should be scientific, avoiding the political aspect of the project in order to get the best results and participation. Mr. Crum explained the focus groups should begin meeting at the same time individual departments begin working on budgets, in order to have focus group feedback prior the overall completion of the budgets. The focus groups will not have a tremendous affect on the departments establishing their initial budget, but generate a thinking mode of what we have and are working with. Head Tax: In light of the non -for -profits request to place Head Tax communications on hold, pending further research and possibilities, Mr. Engelman reminded the committee of the agencies commitment to serve and assist. Mr. Engelman suggested that the committee ask the non -for -profit agencies for suggestions and available resources with regard to services, such as elderly and health care, not with the idea of privatizing, but measuring service per dollar and possible alternatives. Mr. Kent went on to emphasize the importance, and the point, that the committee should allow all to take ownership of this budget process. Mr. Engelman, therefore will head the task of bringing Northwestern University to an upcoming meeting for dialogue. Yor to mate Arty Fiscal Year 2000-200t: A huge concern for the committee involved overtime payments, temporary employees, and part-time employees. Ms. Rainey asked the question, "how did we get 738% over budget?" Mr. Casey and Mr. Stafford further explained the lack of ability as far as grouping and separating costs within the current financial system. One goal is to provide and produce better tracking capabilities. For example, departments should not be budgeting for temporary employees, but deducting payments at year-end from permanent salaries. Secondly, we don't really know how much special events are ultimately costing, therefore, a second goal is try and determine these costs. Mr. Stafford went on to further point out the consequence and huge issue of dealing with the budget and currently staffing an aging workforce and the large costs attached to future termination payments. This also includes the new police Iaw allowing police officers the ability to vest after the age of thirty instead of thirty- five. Mr. Engelman and Ms. Rainey suggested a policy discussion on this issue. 2 DRAFT — NOT APPROVED Additional Tax Funds from -the County: Mr. Engelman reminded the committee that there currently is not a policy with regard to the insurance fund. Further conversation with regard to this issue was tabled until the next meeting, per the recommendation ofMr. Crum. This was due to a review and update on current legal matters to be received by the council at their next meeting. Budget Awamuza.s: The goal here is to create a situation where any subject of discussion will include an analysis of budget impact. Mr. Casey informed the committee that whenever steps are taken for improvement, property, purchasing, or anything requiring a vote impacts the budget in one form or another. Mr. Cnnn suggested this subject become a task for further analysis, providing the example of fiscal notes determining the positive or negative impact the subject will have fiscally. $r,a�, uests: • Further information on added assessed valuations [new property] that the city did not have to assess for taxes last year. • Break down the above new valuation between residential and commercial. • The affect on expenditures that all the new construction and added commercial property has had on our delivering of ser%ices. What is growth going to cost, for example, within the next year for public safety and services, ctc. ■ Further information explaining the current vacation policy. • Increase year-to-date statement detail. • Possible strategies for better staffing within the City of Evanston in order to decrease part- time employee's and overtime payments. • An analysis of the actual cost for overtime payments accumulated from special events. • A detailed analysis of exact cost of operating the S. Branch Library for one year. • Apply scenario number one as budget goal, including applied service cuts to meet goal. [Include department/division cuts as well as programs]. MEETING ADJOURNED AT 9:07 PM. DRAFT— NOT APPROVED City of Evanston Budget Committee Meeting Wednesday, August 15, 2001 Aldennan Present: Stephen B. Engelman, Steven J. Bernstein, Joe Kent, and Melissa A. Wynne Staff Present: City Manager Mr. Roger Crum, Judy Aiello, Patrick Casey, Mark Franz, Alex Granchalek, Mary P. Moms, Vonda Reed -Owens, Donna Stuekert, Judy Witt, and James Wolinski Others Present: Karen Berkowitz, Jonathan Perman, and Mimi Peterson Presiding Officer: Alderman Stephen B. Engelman Summary of Action: Alderman Stephen B. Engelman called the meeting to order at 7:20 PM NEXT MEETING: Wednesday, September 19, 2001 7:00 PM APPROVAL OF THE JULY 18, 2001 MINUTES: Alderman Engelman moved approval of the July 18, 2001 minutes. The committee unanimously approved the minutes with no corrections. ITEMS FOR CONSIDERATION: Budget Process Update: Mr. Casey informed the committee that Budget Kick-off took place in late July, and the submission deadline is August 31"'. All departments were given instructions on what to do, including target dollars to meet with their submission. Most of the target figures were reductions, due to the 2.5% decrease across the board, therefore, some impact on programs and services is to be expected. The budget office will take all of September to go through the submissions and try to determine what the impact is and make any necessary adjustments in order to report back to the committee at the October meeting with the preliminary budget, in particularly the general fund preliminary budget. City of Chicago/Cook County Budget Deliberations and Economy Update: Due to sluggish retail sales, a possible lapse is sales tax income is a concem. The Treasury of the state reports sales tax receipts for the month of July were trailing the same month last year by 30 million dollars. According to a recent study, those municipalities with automobile dealerships are seeing a major decline in their sales tax. According to Mr. Casey, upon reviewing the city's sales tax for this year, home rule sales tax only grew about .64%, where in the past we have been seeing S% increases. Our regular sales taxis down by .28%. Currently we are staying level, and holding our own ground, however we should not expect the larger sales tax income and some of the other increases that we have seen in the past, nor the revenue that we have experienced in the past. DRAFT -- NOT APPROVED Non -Profits lMeeting Update: Mr. Crum informed the committee that with the assistance of Mr. Kysiak the first set of meetings are being arranged with each group including key staff personnel. Thus far, both hospitals have met initially as well as both the Presbyterian Home and Mather Foundation with the assignment of scheduling follow-up meetings. No specific numbers have been identified, however, not all individuals have been involved. Conversations have taken place with Northwestern, but an actual meeting is still being planned, as with the Board of Pensions — upon the return of Mr. Stafford. According to Mr. Crum, we don't see a miracle coming from this, but understand this is going to be several months of processing just to understand people's capabilities and exchange ideas on what we can do with regard to the various services. Ms. Stuckcrt took the initiative to contact Northwestern University with regard to the in-house printing capability, and informed the committee that the opportunity to possibly save costs, on this behalf, is available. Understanding, Northwestern is not going to subsidize, but discounted rates could be available pending further conversations with Northwestern and the committee. Personnel / Budget Related Issues Review: Ms. Witt presented a report to the Committee detailing employee paid leave benefits, and actual terminating payouts for FY2000-01. The review illustrates that in general the City's leave benefits, including provisions for terminating payments, are reasonable; several actions have been taken over the past five years to rearrange benefits in order to have more annual payments rather than "banking" time until time of termination. However, there are still a number of more senior employees with projected terminating payouts for time accrued prior to the changes in policy. Staff calculates that approximately 5250,000 per year for the next five years will be required in terminating payouts for senior management staff and Police Command staff who are approaching retirement. Attached is a copy of the report and presentation. Ms. Witt also illustrated suggestions for possible improvements to the current situation, both long and short-term, that will be further researched and analyzed, including: ➢ Budget an annual cash -out of accrued leave of some type. r Pursue changes opposed to placing items on the books. ? Explore setting a maximum accrual of vacation for police command and senior management. ➢ Explore new tax advantage opportunities to cash -out accrued leave and make it attractive to employees to cash -out leave they have now, as opposed to leaving it on the books. Do not fill vacancies until the termination pays has been recovered. Look at programs to encourage vacation use, especially among senior staff. > Explore trading leave time for wellness programs. r Explore alternative methods of compensation, but our compensation benefit packages are pretty typical. Future Budget Committee Meeting Direction: Mr. Engelman informed the committee of the importance of including the Boards & Commissions committee in the budgeting process. As a first step, Mr. Engelman would like to invite the members of the Boards & Commissions to attend the September meeting. By including these individuals in the process, the committee is given a different vantagepoint for dialogue and discussion as far as service inefficiencies, whether the services are beneficial, etc. DRAFT — NOT APPROVED Mr. Engelman visualizes a meeting with dialogue, after a presentation informing the group of the current state of our finances. After the dialogue he saw charging the members of Boards & Commissions, with some direction to return to their organizations, brainstorm, and return with insights and opinions on v.-hat can be changed, implemented, reduced, or discharged. An example of the types of questions to instill dialogue, "if you, or your department that administers your programs were suddenly faced with a twenty percent cut, as a result of a significant down turn in the economy, what would you recommend?" Part two of this process will entail getting the community leaders involved with the budgetary process. Upon delivery of the preliminary budget, Mr. Engelman acknowledges the efforts the committee will face as far as how the community is going to react to various service cuts and the re-delivcry of revenue sources. Therefore, inviting the community leaders to the October committee meeting may prove beneficial. The process involves first, inviting these representatives to hear the initial preliminary budget in October. Secondly, charging the representatives to take the information back to their constituents for dialogue, and lastly, possibly, allowing members of this committee to come to one of their meetings, and return to the November meeting with feedback, suggestions, and opinions. Mr. Engelman further acknowledges the need for greater direction throughout this process. The benefit, starting budget hearings in January should place us fairly early into the process, therefore processing in maneuvering far early opposed to last minute February maneuvering. Mr. Kent, however, note the importance including not only the community leaders, but simply the community as well, for residents may have an interest within the budget as well, and their input is essential to processing services and inefficiencies accurately. MEETING ADJOURNED AT 8:44 PM. DRAFT — NOT APPROVED Cltv of Evanston Budget Committee Meeting Wednesday, September 19, 2001 Alderman Present: Lionel Jean -Baptiste, Steven J. Bernstein, Joe Kent, Edmund B. Moran, Ann Rainey, and Melissa A. Wynne Staff Present: City Manager Mr. Roger Crum, Judy Aiello, Maureen Barry, Patrick Casey, Mark Franz, Alex Granchalck, Mary P. Morris, Donna Stuckert Others Present: Boards & Commission Representatives Presiding Officer: Alderman Melissa A. Wynne Summary of Action: Alderman Melissa A. Wynne called the meeting to order at 7:20 PM NEXT MEETING: Wednesday, October 17, 2001 7:00 PM APPROVAL OF THE August I5, 2001 MINUTES: Alderman Wynne moved approval of the August 15, 2001 minutes. The committee unanimously approved the minutes with no corrections. WELCOME: Alderman Wynne welcomed all the representing members of the Boards & Commissions committee's and organizations. Thanking the representatives for coming out and agreeing to assist and take part in the development of a newly established budget process. ITEMS FOR CONSIDERATION: Review and Presentation of City's Financial Position: Mr. Casey presented to the City's Board and Commission representatives an overview of the current financial situation of the City of Evanston and how the upcoming budget will be affected. First, the general fund, which includes a whole host of programs and departments within the City. Much of this revenue of the budget comes from property taxes. In most recent history, however, sales tax has become an important aspect of this fund. Past history shows that taxes grow at about a 3% rate. Other revenues at a 20eb rate. Within the general fund expenditures, the police department makes up the majority of the budget. Most of our general fund money is spent on our people. Personal services account for 72% of the fund, therefore, cutting a budget will most like affect people. The City of Evanston took 18.72% of your tax dollars. The City has tried tremendously to reduce the impact of the property tax as a majority of our budget. On this attempt we have maintained a steady success, but reflect a great success since 1984. Our debt service levy is used to pay for bonding; the total levy is just over $27 million dollars. Currently our sales tax is at the DRAFT — NOT APPROVED maximum by law. We feel that implementing more tastes will affect competition for the retail industry. Mr. Stafford further analyzed the current situation by informing the representatives of the current structural deficit, which will not go away without the implementation of structural changes. Due to the current economic trends, revenue growth is threatened. There is currently a decrease in sales tax due to lower consumer spending. In conclusion, the bottom line indicates a structural deficit in both the general fund and capital improvement fund. Our cash reserves are not at an adequate level. There are tremendous insurance and severance issues, due to the boomers preparing for retirement, which will result in a strain on the current reserves. Possible things that can be done include reductions in the general fund base and the rate of growth. Ways to accomplish this task include planned reductions over several years guided by well -developed budget policies or major surgery in a crisis atmosphere. The current budget process for fiscal year 2003 calls for a S 1.5 million dollar reduction, analysis of alternative service delivery mechanisms, and a call for community leaders and boards and commission representatives to assist in the endeavor. Boards and commission representatives are reminded of the process to involve their members whom are not present, communicate the current economic state to the community, and return in November with questions, feedback, and suggestions necessary to meet our budget needs. Review of Annual Financial Report: Mr. Stafford presented the Comprehensive Annual Financial Report to the committee, which as highlighted goes above and beyond the usual audit. The introductory section provides an organizational section and letter from Mr. Crum and Mr. Stafford highlighting the year's financial overview. The auditor's statement follows along with the general-purpose statement, which covers all statements of the city. The second purpose of this document is the tax increment financing section, which we arc required by the new state law to maintain. The third purpose, the SEC requirement, requires that any institution issuing bonds send this document out to five different bonding houses. Going through this document, in terms of the general fund, our net accumulated to just over S2 million dollars this year a lot of which is due to the sales tax, higher license payments, and we did a pretty good job of monitoring expenditure levels. The insurance portion of this document, as previously stated, is a state requirement, but it is important to understand that this figure represents outstanding, unresolved cases, and the figure reflects only an estimate of the values for these outstanding cases. The remaining funds, fleet services, police and fire pensions, as well as debt services represent all being in good shape for this year. In conclusion, the past year has been a good one, we have many challenges to face, but in making some very important decisions, we can, again, have another successful year. Other Business: MEETING ADJOURNED AT 8:50 PM. DRAFT - I OT APPROVED City of Evanston Budget Committee fleeting 'Wednesday, March 20, 2002 Alderman Present: Steven J. Bernstein, Stephen B. Engelman, Joe Kent, Edmund B. Moran, and Melissa A. Wynne Staff Present: City Manager Mr. Roger Crum, Maureen Barry, Patrick Casey, Alex Granchalek, and Donna Stuckcrt Others Present: John Evans, Dick Pcach, Carl Gromclski and Bob Seidenberg Presiding Officer. Alderman Stephen B. Engelman Summary of Action: Alderman Engelman called the meeting to order at 8:15 PM. NEXT MEETING: Wednesday, April 17, 2002 7:00 Phi REVIEW OF CITIZEN GROUP EXERCISE: (For this particular evening, the sole item of discussion will be the group perspective project review; what we learned from the involvement with the community and the budget process.] General consensuses with regard to the learning process of the budget experience for Budget 2003 arc as follows: • The community does not want to see cuts. • An analytical approach to the budget process does need to be introduced and developed. (A look at how budget is approached). • Residents and citizens appreciated the involvement • Education by far representing the best asset of the process. • The city as an organization is living beyond their means. • Initiate grouping the CIP and Budget process together. • There is a strong sense of community value. • A greater need to look deeper into organization and program efficiencies. • Again, gain involvement from the Non -for - Profit organizations within the community. • Establish a strategy allowing the evaluation of issues over a long-term timeline. • We must keep in mind that the '75' participants from the process — DO NOT represent all of the Evanston community. • Great discontent for the tax increase. • Possibilities of seeking assistance from a higher government. Community comments included a realm of disappointment due to the inclination that cuts would be made, and to discover none were made and taxes increased. Increasing taxes is not only destroying the homeowner within the community financially, but the business owner as well. Residents voiced, "cuts are going to have to be made — the city must be willing to make the necessary adjustments to case the burden." Due to all of the fees and taxes, Evanston has DRAFT - NOT APPROVED become a non -welcoming community to the small business owner. More importantly, the committee needs to consider "what will benefit the city as a whole". All in all, the budget committee needs to make an attempt to address the systemic problems that the budget faces currently and will continue to face without resolve. *Tasks for the next meeting involve each member including staff providing a list of ideas and suggestions. This includes: 1) Long-term, big ticket "out of the box" ideas. 2) Medium -term ideas, that is, something to start with immediately. 3) One idea that you are interested in that you arc willing to work with the private -sector to discuss how to better the program as far as efficiencies and overall generation. OTHER BUSINESS: None. BUDGET COMMITTEE MEETING SCHEDULE: The proposed meeting schedule is as follows: April 17, 2002 May 15, 2002* June 19, 2002 July 17, 2002* August 21, 2002 September 18, 2002* October 16, 2002 November 20, 2002* December 18, 2002 *Flood and Pollution Control meets the same night at 7:00 PM. Meeting adjourned at 9:50 PM. 2 DRAFT - NOT APPROVED Citv of Evanston Budget Committee Meeting Wednesd2y, April 17, 2002 Alderman Present: Stephen B. Engelman. Edmund B. Nloran. and Melissa A. Wynne Staff Present: City Manager. fir. Roger Crum, Maureen Barry. Patrick Casey, Mark Franz, Alex Granchalek. William Stafford. and Donna Stuckert Others Present: E. Ylessel — NU Student. Dick Peach, and Bob Seidenberg Presiding Officer: Alderman Stephen B. Engelman Summary of Action: Alderman Engelman called the meeting to order at 7:40 PM. NEXT MEETING: Wednesday, flay 15, 2002 7:00 PM APPROVAL OF THE MARCH 20, 2002 MINUTES: Alderman Melissa Wynne moved approval of the March 20, 2002 minutes. Upon the second by Alderman Edmund Moran, the committee unanimously approved the minutes Mth no corrections. IDEAS FOR FUTURE CONSIDERATION: Please see the attached listing. ADDITIONAL IDEASIFUTURE CONSIDERATION DISCUSSION: Next steps for the committee included steps for staff to take with regard to the suggestions and ideas. The committee would like for staff to provide greater input into the ideas in terms of time to process them. A focus needs to be established without negating alternative mechanisms of achievement. An overall goal is to prioritize the listing especially with regard to the CIP. Key aspects of the synopsis will involve greater definition, potential impact upon the City as well as the budget, probability of being done, timing issues, staff involvement needed. aldermanic involvement needed, as well as urgency to proceed. Additionally, goals to achieve include the committee as a whole having a clear understanding by mid -summer of possible cuts, if necessary. within the budget process. January will be too late and a mid -summer goal will ease the sense of panic. Staff within the committee would also like the consideration of a two-year budget as opposed to one-year be discussed, further stating, a calendar fiscal year would make the most sense due to the state and federal tax schedule as well as tax incentives at the state level. OTHER BUSINESS: None. Meeting adjourned at 9:00 PM. City of Evanston Budget Committee Meeting Ni'ednesday, April 17, 2002 Alderman Present: Stephen B. Engelman. Edmund B. Moran, and INlclissa A. Wynne Staff Present: City Manager. Mr. Roger Crum. 4laureen Barn. Patrick Casey, Mark Franz. Alex Granchalek. William Stafford, and Donna Stuckert Others Present: E. Hessel — NU Student. Dick Peach. and Bob Seidenberg Presiding Officer: alderman Stephen B. Engelman Summary of Action: alderman Engelman called the meeting to order at 7:40 PM. NEXT MEETING: 1Vednesday, May 15, 2002 7:00 PhI APPROVAL OF THE MARCH 20, 2002 MINUTES: Alderman Melissa Wynne moved approval of the March 20, 2002 minutes. Upon the second by Alderman Edmund Moran, the committee unanimously approved the minutes with no corrections. IDEAS FOR FUTURE CONSIDERATION: Nease review the attached listing ADDITIONAL IDEAS/FUTURE CONSIDERATION DISCUSSION: Next steps for the committee included steps for staff to take with regard to the suggestions and ideas. The committee would like for staff to provide greater input into the ideas in terms of time to process them. A focus needs to be established without negating alternative mechanisms of achievement. An overall goal is to prioritize the listing especially with regard to the CIP. Key aspects of the synopsis will involve greater definition, potential impact upon the City as well as the budget, probability of being done, timing issues, staff involvement needed, aldermanic involvement needed, as well as urgency to proceed. Additionally, goals to achieve include the committee as a whole having a clear understanding by mid -summer of possible cuts. if necessary, within the budget process. January will be too late and a mid -summer goal will ease the sense of panic. Staff within the committee would also like the consideration of a two-year budget as opposed to one-year be discussed, further stating, a calendar fiscal year would make the most sense due to the state and federal tax schedule as well as tax incentives at the state level. OTHER BUSINESS: None. Meeting adjourned at 9:00 PM. Budget Committee Meeting Notes -Attachment - Apri! 17, 2002 List of Tonics Short tiiedium Lone Abolish the township • Keep the general program 1' • Retain some son of taxpa} er assistance similar to the assessor's office Address funding of the Community Defender's Office • Cook County is legally responsible for providing this. 2' • How many publicly funded counselr:. s already within the city work with at -risk youth. 3. Review number of fire stations • Possibly go to four stations Examine non need based subsidies • Examine program costs 4' • Examine why we are providing programs • Especially programs with a fee that is lowered. S. 4 Examine parking rates from a market perspective 6. I Examine outsourcing of city functions 1 • Possibly use payroll as a test 7. Develop public private partnerships for recreation facilities, existing and new. 8. Get external assistance in delivering health department services (partnering) 9. Examine the "blue card" idea for applying means testing 10. j Examine the summer youth employment program 11. Invite state and local officials %rho live in Evanston to come in for a dialogue. i2. Examine outsourcing • Possibly the mailroom? 13. Change the C11, deliberation debate process. 14. Get non-profit cooperation for the health department Examine larger programs IS. Possibly stare with the police department and it's services, civilian possibilities, etc. 16 Provide an explanation of ovenime spending, include reviewing streets and sanitation Investigate to long terns mono% sa%ed from alley paving as 17. opposed to alley grading. • 1 low much is spent on alley grading? 18. Examine biennial budeetine 19. Examine changing the fiscal year 20. Civic Center resolution. 21. Closer cooperation with other local entities. — Schools, NU, County. 22. Creation of fiscal Disaster Plan. I Develop a capital improvement financing policy of a 23. combination of pay-as-you-go and debt financing. Develop of policy of phasing out over the next two years City 24. money that goes to any social service agency where the City's contribution constitutes less than 59 6 of their overall budget. 25. Establish Park District- Library District. 26. Increase recycling to decrease tipping fee cost. 27. License Apartment Buildings. 28. Means Testing — Ability to pay. 29. New revenues. 30. Plan to fund Insurance Fund. 31. Prioritize CIP Projects. f 32. Regionalize services. Require that the Council must specifically approve each 33. expenditure added by the council outside of the budget and a funding source identified. 34. School funding reform or tax reform at state level. 35. Self-supporting Animal Shelter. 36. Self-supporting Ecology Center. 37. Self-supporting Noyes Cultural Arts Center. 38. Unified Allocation of City Funds — Mental Health, Purchased Services, and CDBG_ Short Medium j Lani M 'DRAFT -- NOT APPROVED City, of Evanston Budget Committee Meeting NN'ednesdav, June 19, 2002 Alderman Present: Steven J. Bernstein. Stephen B. Engelman, Edmund B. Moran, and Melissa A. Wynne Staff Present: City Manager, Mr. Roger Crum, Judy Aiello, Maureen Barry, Patrick Casey, Alex Granchalek, William Stafford, and Judy Witt Others Present: Christine Benn. John Harmon, Dick Peach, and Bob Seidenberg Presiding Officer: Alderman Stephen B. Engelman Summary of Action: Alderman Engelman called the meeting to order at 7:35 PM. NEXT MEETING: Wednesday, July. 17, 2002 7:00 PM APPROVAL OF THE APRIL 17, 2002 MINUTES AND MAY 15, 2002 NOTES: Alderman Engelman moved approval of the April 17, 2002 minutes and notes from the May 15, 2002 meeting. The committee unanimously approved the minutes and notes with no corrections. PRELIMINARY FINANCIAL RESULTS 2001/2002 FISCAL YEAR: As of right now, according to Mr. Stafford, we are approximately $900,000 in the `good'. Per the most recent numbers, we are under budget as far as personnel. However, our expenditures are over to due legal litigation. Revenues arc currently under budget due to having not yet received anticipated state tax income. The numbers will remain low, howevcr, due to high unemployment and less capital gain income. License and permits fees are at an increased level, as well as other revenue including; parking, cable, and interest income. Revenues are much stronger than we originally anticipated. These positive figures are primarily due to the strong and relentless efforts of staff to rectify and turn around a negative impact to a positive result. Clue to hiring; as well as expenditure freezes, staff was able to improve and initiate repairs on a heavily predicted disaster. Alderman Engelman expressed concern with regard to temporary employees, and special event salaries, for in that aspect, the city is still over budget. Mr. Stafford along with Ms. Witt explained that a process is in place to rectify the current learning curve in placing temporary salaries within the correct codes. The process and need for temporary employees is being carefully monitored and continuously adjusted. The process could be easily rectified with appropriate financial software in place to track the payroll and personnel codes. PRELIMINARY 1ST QUARTER RESULTS 2002/2003 FISCAL YEAR: Currently under approximately twenty-five percent. There is slow revenue input, approximately one trillion less than anticipated, but we arc in good shape. OR .DRAFT -NOT APPROVED Concern with regard to termination payouts was expressed by Alderman Engelman, "Is it a seasonal issue?" Ms. Witt explained, retirement and termination is not easily predicted. It is not a seasonal issue, but a budget issue. There were many expensive police and fire retirements early this year. tilr. Stafford. further stated, at least we arc budgeting for the expense, unlike previous years. all in all, there are no major concerns right now. PRIORITIES 200312004 BUDGET PROCESS: Resident, Dick Peach, has initiated the process of SYEP evaluation and analysis by setting a meeting for July I V, or I I"' to discuss the private sector providing jobs for the youth, and re -designing the SYEP program. Alderman Engelman would like to further look into the blue card issue, subsidy programs, and employee and program efficiency. Alderman Wynne would like to look further into the creation of a Fiscal Disaster Plan. Alderman Moran, found priorities to be the issue of abolishing the Township, addressing funding with the idea of funding for the Community Defender's Office. Also, further examining parking rates from a market perspective, developing public private partnerships for recreation facilities — including the possibility of advertising within the Robert Crown Ice Rink, which is to be further discussed. CIP: From the Budget Committee Notes — Attachment, Ms. Aiello noted the importance of number twenty, Civic Center Resolutions, to be moved as a CIP issue. Alderman Engelman discussed the possibility of needing an additional two meetings to further discuss policy and goal setting. Ms. Aiello pointed out several big issues which need to be discussed with council, including: The seven year recreation plan Other plans to be adjusted Are various studies going to continue to be funded > Strectscape programs Southeast Evanston recreation center There are many issues that lay unresolved. Funding discussions need to take place as well as long-term pay as you go revenue issues. ROLE OF CITIZENS IN 2003/2004 BUDGET PROCESS: There is a general consensus that citizen involvement within the budget process is both beneficial and educational to the community. However, for fiscal year 2004, the committee would like to establish a timeline of goals to be accomplished, narrow the citizenship focus to include, "what the city can do without or whether we can continue to operate without." To get the process started, a letter should be mailed out informing citizens, "yes, we did listen". Therefore, we arc planning a meeting, possibly early fall, to once again, seek you input and interest in the budget process. Meeting adjourned at 9:10 PM. 2 DRAFT -NOT APPROVED City of Evanston Budget Committee Meeting Wednesday, July 17, 2002 Alderman Present: Steven 1. Bernstein, Stephen B. Engelman, Edmund B. Moran, and Melissa A. %%'ynne Staff Present: City Manager, Mr. Roger Crum, Judy Aiello, Maureen Barry, Patrick Casey, Doug Gaynor, Paul Gottschalk, Alcks Granehalek, William Stafford, Donna Stuckert, and Judy Witt Others Present: Christine Benn, and Ted Loda Presiding Officer: Alderman Stephen B. Engelman Summary of Action: Alderman Engelman called the meeting to order at 7:12 PM. NEXT INIEETING: Wednesday, July 31, 2002 7:00 Phi APPROVAL OF THE JUNE 19, 2002 NIINUTES: Alderman Engelman moved approval of the June 19, 2002 minutes. The committee unanimously approved the minutes with no corrections. PRELII4IINARY PROJECTIONS FISCAL YEAR 2002-2003: Mr. Stafford highlighted revenue information, per the spreadsheet provided. Overall, revenues have increased about 1.38%. Major points listed included taxes up about 3.2% while other revenues remain relatively flat in comparison. The big drop in services is due to the telecommunications fee not being listed as a tax, but as a fee. This is about a S600,000 reduction to service and fees revenue. We have also lost the photo -finishing tax (S 150,000), in entirety due to state budget cuts, and lastly, license and permit revenues are down and back to historic levels. Mr. Casey highlighted expenditure information, also per the spreadsheet, noting, and the worse case scenario. The figures listed are all based on historical data and do not include outstanding litigation. In the previous year, only S.5 million was placed into the insurance fund to cover litigation costs. Mr. Casey didn't think the numbers would differ greatly upon time to finalize budget decisions. All in all, within the budget process, according to Alderman Engelman, the process will involve searching for a solution to a systemic problem, as opposed to simply bandaging existing problems that continue to worsen. According to Mr. Crum, there is only one new development to the upcoming fiscal budget, and that is the development of a centralized Risk Management function, which in the beginning will be housed within the City Manager's office, overseen by Ms. Aiello. • DRAFT -NOT APPROVED OVERTIME REPORT: ,Mr. Casey informed the committee that right now. the city is right on course. Graphs were provided illustrating more how overtime hits, and when overtime is primarily used. for example Fourth of July and snowstorms. The process in determining these figures involves a tracking system of every department, and every pay period by hand. With upgraded and appropriate financial software, the process can be better tracked and efficiently completed within hours. The concept is not to eliminate overtime, but better track and predict the need for overtime in order to better budget for the occurrence. Mr. Crum complimented staff on providing excellent illustrations and a jab well done at providing overtime documentation and history. CITIZEN ROLE IN BUDGET PROCESS: A letter to the community has gone out requesting community participation at an open hearing to take place Monday, July 22, 2002. A new concept has evolved on how to involve and make the community aware. "A Budget Outreach Program", is a staff suggestion to visit local areas within the community informing and educating the community on the 'State of the City' financially. The concept is to inform citizen's "what we do, how the budget process works, and what steps are taken to achieve a balanced budget." The Budget Outreach Program is an attempt to become more educational as opposed to participatory, gearing discussions towards target areas deemed important. Further information including a presentation layout is to be presented at the August 14, 2002 meeting. CAPITAL IMPROVEMENT PLAN DRAFT POLICIES: Ms. Aiello pointed out several issues to be resolved including; 1) policies already in place which need to be reviewed, 2) practices to be looked at, 3) long-term issues to be looked at and discussed with council for consideration, for example debt vs.- pay as you go, and lastly 4) staff suggestions on project implementation. The goal here is to gain an initial framework prior to meeting at the retreat; therefore, a special meeting scheduled for Wednesday, July 31, 2002 will take place to primarily discuss CIP issues and concerns. BUDGET CALENDAR: Special meeting to discuss CIP issues and priorities scheduled for Wednesday, July 31, 2002 and a second meeting scheduled for Wednesday, August 14, 2002 to further discuss budget issues as well as the "Budget Outreach Program" agenda and details. BUDGET I CIP WORKSHOP: Please see above. OTHER INFORMATION: Four side items still to keep in mind, per Alderman Engelman, Summer Youth Employment Program which is being looked at by Citizen Dick Peach along with Alderman Bernstein. Secondly, the privatization and public partnership initiatives are being looked at by Alderman 1VIoran and Jonathan Perman. The Northwestern University Benchmark Study, and lastly Private Industry support from the local hospitals 'what do we want to accomplish there?' Meeting adjourned at 8:45 PM C'it♦ of Evanston Budget Committee fleeting Wednesday, March 19. 2003 Alderman Present: Edmund 13. Mc}r3n. Arthur B. Newman. Ann Rainey. Elizabeth B. Tisdahl, and Melissa A. XV%nne Staff Present: Roger Cnim. Judy Aiello. Maureen Harry. Patrick Cases-, Mark Franz. William Statfor%j. and Paul Gottschalk Others Present: Jahn Peterson %%:th LeggMason. Presiding Officer: Alderman l;dmund B. Moran Summary of Action: alderman Moran called the meeting to order at 7:20 PAI. ,NEXT MEETING: Monday, April 1.3. 2003 7:00 P11 APPROVAL OF THE S1 PTEMBER 18, 2002 MINUTES: Alderman V1'ynnc moved approval of the September 18, 2002 minutes. Upon the second by Alderman Rainey, the committee unanimously approved the minutes with no corrections. DET£RMINIATIO\ OFCHAIR0IANSHIP. This discussion took place at the Rules Committee meeting. DISCUSSION CAPITAL IMPIZOVEME\T PLAN (CIP) FUNDING: Mr. Stafford reyic«ed specific detniIs surrounding the Capital Improvement Program in order to update new 71" Ward Alderman Elizabeth Tisdahl. per the request of Alderman Newman. The purpose of this meeting is to generate thoughts and discussion on two options proposed on behalf of staff in order to service current Capital Improvement Needs. The first option proposes bond issuance of S12 million a year for fi%c: years and SS million per year, thereafter. This assumes an ti",o levy increase fur FY 200-4. sti-hich is already approved by City Council; a 4% increase annually thereafter; and an increase in current property tax supported debt limit from S75 million to S 100 million. Option two proposes bond issuance of S 12 million per year for two years; S IS million for three years; and S9 million per year thereafter, assuming an 8% levy increase for FY 2004. again already approved with City Council; 59n annually thereafter: and an increase in current property tax supported debt limit from S75 million to M00 million. Upon review of the City's current insurance needs, Mr. Stafford informed the committee of the reserves which are currently at S24 million. S 12-13 of which arc linked to one case. and annual costs being S 1.9 Whom fir. Stafford further explained to the committee that upon conclusion of financial auditing. a possible budget hearing or special meeting will be requested in order to follow-up on the city's financial status from the previous year, with a better understanding of revenues and expenditures, as well as possible reserves. This meeting is most likely to take place in late April or Nla%. In order to proceed and further review the available options, committee members discussed the importance in providing staff %nth proper direction in order to accomplish capital needs and tackle projects directly, avoiding the concept of 'a Iittle bit here and there' with regard to the option proposals. conumuee members agreed to reconvene Monday. April 14. 2003 at 7:00 PM to further discuss the current proposal and options. Communicating approval and or disapproval will be vital to the success of the city's financial security. Alderman Moran expressed an interest in further understanding the broader budgetary impact. "what does it mean generally to our normal budgetary process'" Staff will prepare to address this and other concenis at the next meeting. Further discussion made the committee aware that the City's current Aaa rating could be affected by current insurance debt. However. city staff is acting proactively. Staff understands that the most vulnerable aspect of our rating is our insurance portion, and by acting upon the previous stated options, does not guarantee current Aaa maintenance however, is reviewed as a positive measure. OTHER BUSINESS: Alderman Rainey requested that staff provide an alternative method to proposing levy increnses. This request is due to concern with regard to capturing all available taxes in Evanston that can be possibly captured. In other words, hose does the city get an increase based on new property similar to that of the school districts, the additional boost that is not capped. Meeting adjourned at 8:38 pm. i Cits of E i anston Budget Committee Sleeting Monday, April 14.2003 Alderman Present: Steven J. Bernstein and I:dmund B. %loran Staff Present: Roger Crum. Judy :Aiello. \laurcen Barry. Patrick Casey. and William Stafford Others Present: Dick Peach and John Peterson n ith Lege Mason Presiding Officer: Alderman Edmund 13. Moran Summary of Action: Alderman Moran called the meeting to order at 7:07 PM. NEXT MEETING: Wednesday, May 21, 2003 7:00 PM APPROVAL OF TILE March 19, 2003 M Nl;TES: Due to lack of quorum, approval of the minutes for Wednesday. March 19, 2003 will take place at the next scheduled meeting. DISCUSSION OF CAPITAL 131PROVEMENT PLAN (CIP) FUNDING: The intention for this meeting was to continue discussion regarding the previously reported CIP options and moving forward with action. Mr. Stafford reported staffs goal, at this time, is to go to council on Monday with an introductory proposal to mote fonvard with option number one, in order to get into the market quickly and achieve the current low rates. Additional alternatives that staff reviewed included the acquisition of IS million this year, due to the current issue with the: ItS,urance Fund. this involves the anticipation of settlement within the current outstanding case. A second alternative includes the %%orse case scenario to cover all 18 million nest year with the ability to swap with water and se%%cr. This scenario includes the use of IEPA loans. Ifo%kever. staft'docs believe this scenario can be logistically done. The recommended choice, and the option staff wishes to present to Council is option number one, allowing for a .too levy increase over the next fine years and allowing for 12 million to be allocated towards the capital improvement program and the insurance fund the first sear. distributed nine million to capital improvement and three million to the insurance fund, the second year allocating capital improvement at 4 million and insurance at S million. and the following three scars maintained at allocating 10 million w capital improvement and two million to the insurance fund. Ms. Aiello illustrated. however. that during the first year nine million is not being spent within the capital improvement fund. just 6.5 million. due to staffing issues and the resolution of the actual plan. Mr. Stafford indicated that the need for a resolution to increase the debt from S75 million to S100 million is also required from staff. A1&rman Moran expressed concern %%ith retard to packaging this initiative for the public, and providing, a statement of why the Cite is stepping this far out by increasing the current debt, I lave all alternatives been considered? Mr. Ca:;.-' provided additional analysis per an illustration of the anticipated °p tax levy. Debt service a- ;sated would reccivr; a 4% increase. Both pension funds funded at ti°o. The general fund based on historical average to be funded at 511b. The impact overall shows a 4.9% increase in the levy. as a whole, if, all other aspects take place, as indicated for the next five years. The debt ponion. however, is a definite recommendation. Per Mquin. from Alderman Bernstein. staff estimates an approximate S200,000 in revenue from nevv construction, but will generate a running total of what to anticipate for the upcoming year from the various entities. Both Alderman Moran and Alderman Bernstein agree to move forward with providing the current option. number one. onto the Council Agenda for Monday, April 21, 2003. Should a special meeting be necessary, a reconvening can take place at which time, it is believed that this issue is best contemplated by the entire council. In summan% Mr. Stafford stated, the City of Evanston is a mature community with great infrastructure needs, the city maintains insurance fund needs of drastic proportions, and this option is a gradual planned workout to remove ourselves from a current bad situation. Lastly, with this option, staff continues to remain historically close to the historic cost of living analysis. Ms. Aiello, reiterated the importance of building the fund balance, which option one, will give staff the chance to do -- :is well as build a ladder of priority issues, which staff will be prepared to present in late May or June. OTHER BUSINESS: None Meeting adjourned at 7:37 ptn. r:� Evanston City of Evanston Budget Committee Meeting (Discussion) —Wednesday, September 17.2003 Alderman Present: Edmund B. Moran, Ann Rainey. Elizabzth B. Tisdahl Staff Present: Roger Crum, Jude Aiello, Patrick Casey. Paul Gottschalk, Tracy Roberts, William Stafford, and Alison Zclms Others Present: Carl Gromelski and Dick Peach Presiding Officer: Alderman Edmund B. Moran Summary of Action: Alderman Moran called the meeting to order at 7:00 PINT. NEXT (MEETING: Wednesday, October 15. 2003 APPROVAL OF THE SEPTEMBER 18, 2002 111NUTES: Due to lack of quorum, the minutes of both, April 14, 2003 and ~larch 19, 2003 will be approved at the following meeting scheduled for October 15, 2003. REVIENV OF MANAGEMENT LETTER::\ir. Stafford informed the members present that the final audit should be available late October early November. Upon revie%v of the management letter, the City appears to be in good shape. Fleet services maintain approximately S20,000 in available part funds, and with the assistance of the JD Edwards software, tracking retained funds within our system is soon to become a more efficient and effective source of acquiring up to the minute information. Mr. Stafford further elaborated on GASB 34, and the assistance the program provides with respect to capital budgeting, and the importance of providing information on depreciated streets, sidewalks, streetlights, and alleys, a system that was previously not reported or reviewed in the past. In general, the program provides the City with a better ratio of dealing with assets vs. depreciation. REVIEW OF FY 2004 2°a QUARTER RESULTS: Mr. Casey reported that revenue was slightly below expected being currently at 48%, when we should be at 50%. There are deep concerns with all that is taking place at the state Ievel. We currently have an approximate loss of S300,000 with an anticipated S400,000 loss next year to the city, with regard to income taxes. Furthennore, the home rule sales tax is up, but the state may delay passing money over to the local governments. In addition, due to the most recent wage increases, the budget office will be carefully monitoring payroll funds, for it may be necessary to use funds under reserve in order to continue to balance the budget. FY 2004/05 BUDGET CALENDAR: Air. Crum updated members of the committee of the continuous goal to present a proposed budget to Council by the January I" deadline. FY 2004/05 EARLY PROJECTIONS: Mr. Patrick Casey reported current expenditures are growing at approximately 6.5%. We anticipate a healthcare increase within the range of 15- 25%. Current deficit stands at S4.7 million, and this figure will undoubtedly increase. Department budget submissions arc due Friday, October P. Answers to these budget issues include, people cuts, supplies, hiring freezes, no further planting of trees, not purchasing large equipment or supplies, freezing any further paving to streets and alleys. The bottom line, property taxes are an issue, and we have to make a decision whether to go back and increase, as well as look into increasing such taxes as liquor, and the possibility of cutting or freezing regular prams. Staff is currently researching possible avenues to increase annual revenues including vehicle rental tax, wheel taxes, and environmental taxes including natural gas. CITIZEN'S SURVEY REPORT: Mr. Patrick Casey updated the members about the National Citizen Survey, stating the general goal is to conduct the survey again approximately three years from now in order to better determine positive and negative changes .vithin the community, as well as to gain a better understanding as to community needs, desires, as well as resident positions on policy and economic development within the City of Evanston. OTHER BUSINESS: None Meeting adjourned at 8:00 pm.