Village of Palatine Business Finance & Budget Committee met Oct. 31.
Here is the minutes provided by the committee:
I. ROLL CALL – Time: 8:30 AM
| Attendee Name | Title | Status | Arrived |
| Jim Schwantz | Mayor | Present | |
| Tim Millar | District 1 Councilman | Present | |
| Scott Lamerand | District 2 Councilman | Present | |
| Doug Myslinski | District 3 Councilman | Present | |
| Greg Solberg | District 4 Councilman | Present | |
| Kollin Kozlowski | District 5 Councilman | Present | |
| Brad Helms | District 6 Councilman | Present |
Village Clerk Marg Duer, Village Manager Reid Ottesen, Deputy Village Manager Mike Jacobs, Director of Planning & Zoning Ben Vyverberg, Director of Public Works Matt Barry, Fire Chief Scott Andersen, Deputy Fire Chiefs Patrick Gratzianna and Scott Mackeben, IT Director Larry Schroth, Director of Finance Paul Mehring, Assistant Finance Director Sue Conn, Accountant 1 Sara Sadoski, Director of Community Services Harry Spila, Director of Human Resources Pam Jackson, Police Chief Dave Daigle, Deputy Police Chief Bryce Baker, and Deputy Clerk Doris Sadik
II. Pledge -
Councilman Kozlowski invited everyone to stand and join him in the Pledge to the Flag.
II. AGENDA ITEM
A. Consider a Discussion of the CY 2021 Proposed Budget & Capital Investment Plan -
Recognizing the unprecedented challenges of the past year, Business, Finance and Budget Committee Chairman Kollin Kozlowski opened the presentation of the CY 2021 Proposed Budget & Capital Investment Plan with recognizing the successful leadership of Village Manager Reid Ottesen and Finance Director Paul Mehring, all directors and staff who are dedicated to aggressive, conservative financial management while providing for the health, safety & welfare of the residents and businesses in Palatine.
Village Manager Reid Ottesen introduced the Proposed 2021 Annual Budget and Capital Investment Plan for the Village of Palatine with gratitude for the Mayor and Council Members for support especially since March 4th when we began a journey like no other, quoting Hemingway, "It is good to have an end to journey towards; but it is the journey that matters in the end," referring to the past 242 days. Without the specific mid-year actions and recent further actions, the upcoming budget could have included a 25% increase in the property tax levy. That is not the journey we chose to take. We blended fiduciary responsibilities with our commitment to public service and making our community a safe place for our residents, businesses and visitors.
Ottesen stated the Proposed Budget is responsible, demonstrating an ongoing commitment to high standards of public service and the efficient delivery of all programs and services. The proposed budget totals $118,148,164, a decrease of 3.76% over 2020. While reflecting the negative impacts of a global pandemic, this Proposed Budget includes the elimination of 6 full-time and 9 part-time positions; holding 2 police and 3 firefighter positions vacant. This is a responsible, balanced budget that ensures a safe and secure community, providing responsive and responsible services to all our residents and businesses from an extremely committed team of employees dedicated to making Palatine a great place to live, work and visit.
A reduction of 3.76% is projected. There is proposed an adjustment to many discretionary (not mandatory) Village fees, due to increasing costs of credit card use, estimated at $125,000 or more in 2021. Sewer and water rates are recommended to increase by 5.5%, yet keeping Palatine at one of the lowest municipal utility rates in the area.
Without these and other actions, Village Property Tax Levy would have increased by 25-30%, instead, through the sacrifices across the organization, the Proposed Budget is recommending no increase to the property tax levy. Retiring the Dundee Road TIF District effectively reduces the property tax levy by 0.16% for those outside the TIF District. Ottesen showed positive financial comparisons of Palatine to area communities and summarized impacts of local taxing bodies and revenue sources: Sales Tax, Use Tax, State Income Tax, Building Permits, Food and Beverage Tax, Red Light Cameras, Cable Franchise Fee, MFT Revenue, Telecom Tax. See attached PowerPoint.
Councilmen raised a few points including potential of ACH fees, water usage based on rainfall, positive impact of grant funding, continuing challenge of pension costs.
Department, Directors and Chiefs presented:
Public Works - Director Matt Barry
reduction 1.71%
Police - Chief Daigle
increase of.53%
Fire - Chief Andersen
reduction 0.33%
Community Service - Director Harry Spila
reduction 8.78%
Ottesen summarized the remaining operating budget.
CAPITAL INVESTMENT
Expenditure overview - Village Manager Reid Ottesen
reduction 19.69%
Other Expenditures - Director Paul Mehring
Insurance
Economic Development
TIF District Surplus Rebates total $25,238,320 in the last 10 years ($2,250,000
proposed in 2021)
NON OPERATING
Expenditure overview - Director Paul Mehring
reduction 40.11%
Debt Service
reduction 6.13%
Bond Rating
Moody: Aa2
Standard & Poor: AA+
GO Bonds Outstanding - less than $50,000,000 continues to 2034 without extending.
Discussion:
In response to Councilman Kozlowski, Ottesen stated the Village maintains reserves: 3-4 months of operating funds remain in reserve. In 2008-9 it was determined we would have an economic stabilization fund of $1 million in that fund, it was as large as $2.6 million. There has been some stabilization, but we have no allocation to build it now, but any additional income will go into that to return it to $1 million.
Going forward, Ottesen said staff is considering a new TIF and downtown projects including water and infrastructure, but much is on hold.
Regarding Strategic Planning, Councilman Kozlowski suggested planning now for future; Ottesen recommended waiting until we are out of survival mode.
Councilman Millar commented on the effects of pension changes with Police and Fire consolidation, Tier I and II employees, concurrent Social Security contributions and lowered IMRF assumptions.
Councilman Solberg complimented the convenience of online payments and subsequent increased compliance. Ottesen stated that as of November 9, new software will expedite online usage.
Ottesen presented Budget Hearing schedule:
Budget Follow-Up Meetings--Monday, November 2 and Monday, November 9 Public Hearing--Monday, November 16
Adoption of Budget and Tax Levy-- Monday, December 7
Budget Documents are Available at: Village Clerk's Office www.Palatine.il.us
III. ADJOURNMENT–Time:10:53PM
Adjourn the Business Finance & Budget Committee Meeting - Motion Carried by Voice Vote
RESULT: MOTION CARRIED BY VOICE VOTE [UNANIMOUS]
MOVER: Scott Lamerand, District 2 Councilman
SECONDER: Brad Helms, District 6 Councilman
AYES: Schwantz, Millar, Lamerand, Myslinski, Solberg, Kozlowski, Helms
http://palatinevillageil.iqm2.com/Citizens/FileOpen.aspx?Type=12&ID=2426&Inline=True
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