President Michels opened the Budget Workshop Meeting of the Board of Trustees at 6:00 p.m. and asked that the roll be called.

Present: President Michels Trustee Geary, Trustee Johnson, Trustee Williams, and Trustee Bohler.

Absent: Trustee Clark and Trustee Renk

Also Present: Village Administrator Brent Eichelberger, Clerk Cynthia Welsch, Acting Chief Sauer, Public Works Director Clifton and Community Development Director Scott Buening.

Administration Eichelberger presented to the Village Board a summary sheet of the questions that were asked at the mid-year budget update. These were items that the staff had stated they would address within the budget discussion. The Board members thanked Administrator Eichelberger for the information and stated they had no comments regarding this information at this time.

President Michels asked that Administrator Eichelberger begin the presentation of the FY# 04 General Fund Budget.

Administrator Eichelberger stated that the FY 02-03 General Fund was budgeted at a $194,412 deficit but is currently projected at a $12,381 surplus. FY 03-04 GF is proposed at a $271,075 deficit. Significant changes contributing to the increased deficit include a $60,000 contribution to the Park District and a $50,000 contribution to the Economic Development Corporation. Administrator Eichelberger then asked that the Village Board turn their attention to the following items.

No changes are proposed to the Administration, Finance, Community Development or Police staffing levels. Within the Public Works Department the Engineering Technician and Streets & Properties Supervisor positions have been eliminated, one S&P Laborer position has been reclassified to Maintenance 2/3, and two Summer Worker positions hours have been reallocated to one year-round part-time (20 hours) laborer position. The net Village-wide effect is a reduction in approved FTE staff from 33.51 to 31.32. If it were decided during the fiscal year that an Engineering Technician position were needed the salary cost would be offset by the savings in professional services for engineering costs.

Public Works salary allocations have been adjusted to better reflect the actual time spent in the individual divisions as most of the employees do not spend 100% of their time working for one department.

The proposed budget includes projected 17.5% health insurance and 22.5% dental insurance increases. While the new Salary Schedule based on the recent salary survey is not complete, the budget does reflect anticipated changes. Significant increases in the IMRF rate are also included. Other items such as an expanded Flexible Spending are being investigated as most employees are not happy with the current dental plan, nor is it cost effective.

02-03 Revenues are estimated at $145,488 or 6.4% over budget. Variances are expected in several accounts, the most significant related to new development, as the number of building permits issued was greater than expected. The Village also received more donations for the Comprehensive Plan update than anticipated. Significant negative variances will be seen in the accounts dependent upon state revenues.

03-04 Revenues are proposed at virtually the same as the 02-03 Budget. The various property tax accounts are expected to increase 12.5%. Building permit revenue is based on 250 residential permits. Fine revenue is expected to decline due to a refocus in the Police department.

All fees charged, such as building permit and contractor licenses will be increased an average of 5%. The minimum permit fee will not however be increased for items such as roofs, sheds, etc. Building permits are expected to be down slightly. No revenue projections include any sales tax increase.

Trustee Geary inquired if the staff was still considering looking at business licensing. Administrator Eichelberger stated that staff is still considering registration, however, not as revenue generator but more as a double check for sales tax receipt, safety and zoning issues.

Expenses generally are in line. Continued improvements to the Village’s computer system will result in increased costs.

Personnel related costs are expected to increase significantly as a result of the salary survey. A new dispatch/records system, new furniture for the Chief’s office, a new copier and the replacement of car deck strobes with LED’s will result in an increased budget. One current 2000 patrol sedan is scheduled for replacement. The amount budged in the transfer to equipment replacement fund is only enough to fund the current replacement and is not for future replacement. The funding of savings in this fund will be a goal in more affluent budget years.

Trustee Bohler requested that additional monies be allocated for emergency management preparation or at least a savings account be established that could be drawn on if needed in times of an emergency.

President Michels stated the Fire Protection District has indicated that they would share in the needs for emergency planning as the plan as being drafted is a community wide plan.

Parks personnel costs are lower due to the reallocation of salaries. The planned contribution to the Sugar Grove Park District is included. Many park accounts were reduced to reflect the realities of the current park-funding situation.

President Michels asked if parks equipment was inspected and could the village perform this service for Homeowners Associations. Public Works Director Clifton answered that no one on staff is a certified playground inspector, equipment is checked, however, staff would not recommend that the Village perform this function for the Homeowners Association because of potential liability issues.

President Michels asked that a legal opinion be gotten on the liability of inspecting equipment for the Homeowners Associations.

Funding for a new Comprehensive Street Maintenance Assessment and Plan is included. The drainage problem in Strafford Woods will be addressed. In-house mosquito abatement measures are included. The scheduled replacement of a 5-yard dump truck is funded. A proposal has been received for a comprehensive street maintenance assessment and plan; this information will be forwarded to the Board. Trustee Bohler asked about software purchased for street maintenance in the past. It was answered that this software will not be utilized at this time.

Trustee Geary asked about the mosquito abatement program. Director Clifton stated that one staff member would be trained in the use of briquettes that are used to treat catch basins. This staff member will then hold in-house training for other staff members. Staff was asked to inform the public about ways they can help reduce the mosquito population.

Personnel costs are significantly higher due to the reallocation of salaries. Costs to monitor and maintain the alarm systems at Village owned buildings are higher as the Public Works facility will be out of warranty. Natural gas heating costs have been increased to reflect the new PW facility. Minor funding is included to landscape the Village Hall entrance sign and flagpoles. President Michels asked additional funding, in the amount of $250.00 be added for a total of &$750.00 for village hall landscaping.

250 residential permits are projected. Costs associated with the completion of the Balanced Growth study and the Comprehensive Plan update are included. The EDC contribution is funded. New 2003 codebooks will be purchased.

President Michels asked that the funding of the Economic Development Corporation be added to the Committee of the Whole agenda for discussion.

The costs of the Special Census workers are included. Ongoing, but reduced, financial consultant services are budgeted. The purchase of the Fixed Assets software application required for GASB #34 has been moved from 02-03 to 03-04.

Limited participation in the IML Annual Conference and one participant in the IML LEAD program are budgeted. The contingency funding level has been reduced from 1.5% to 1.0%. Administrator Eichelberger stated that the LEADS program is very worthwhile and recommend that one Board member attend per year. This program runs 2 days (Friday and Saturday) every other month for a year.

No significant changes are included in the Pavilion budget by the staff. President Michels asked that additional landscaping be performed. Staff stated that we look into the fund if see monies could be obtained.

Administrator Eichelberger asked if the Board was comfortable with budget deficit that is being proposed. The Board stated that in light of the donation to the Park District and the start up money for the Economic Development Corporation that were in support. Trustee Johnson stated that she would like to make it clear to the public and the press that while a deficit is being proposed the Village is not broke and that a large fund balance is available.

The Board thanked staff for the inclusion of the graphs showing tax rates and appropriation to the various entities as well as the tables showing the projections for state revenues. These items help to explain clearly both the Board and the public what the revenues are that are provided by tax dollars and how they are allocated.

Administrator Eichelberger stated that the next workshop is scheduled for 25 March. President Michels asked that budget discussion also be added to the Committee of the Whole on the 18^th of March.

As there was no further business, President Michels adjourned the meeting at 8:20 p.m.

Respectfully submitted,