Loading...
CITY COUNCIL 12-16-04THE CITY OF LAKE FOREST COUNCIL AGENDA Thursday, December 16, 2004 7:30 p.m. City Council Chambers CALL TO ORDER AND ROLL CALL 7:30 p.m. Honorable John E. Preschlack, Mayor Tom Swarthout, Alderman First Ward Roger J. Mohr, Alderman Third Ward John A. Andersen, Alderman First Ward Timm R. Reynolds, Alderman Third Ward Michael J. Burns, Alderman Second Ward James J. Cowhey, Jr., Alderman Fourth Ward S. Michael Rummel, Alderman Second Ward John Looby III, Alderman Fourth Ward PLEDGE OF ALLEGIANCE 7:30 p.m. REPORTS OF CITY OFFICERS 7:35 p.m. 1. Comments by Mayor A. New Appointment to the Elawa Farm Commission - Sherry Mureens 2. Comments by City Manager 7:45 p.m. 3. Comments by Council Members 7:50 p.m. 4. Council Committee Reports 7:55 p.m. A. Finance Committee Report PRESENTED BY FINANCE COMMITTEE CHAIRMAN MICHAEL RUMMEL 1. Consideration of an Ordinance Establishing the Tax Levy for 2004 (Final Approval) PRESENTED BY FINANCE COMMITTEE CHAIRMAN MICHAEL RUMMEL The annual tax levy must be filed with the County Clerk before the last Tuesday in December. Spreadsheets reviewing the tax levy for 2004 are attached for your consideration beginning on page 10. These include: 1) the tax levy limitations under the tax cap, 2) the tax levy distributed by fund without new growth and allowances distributed and 3) the tax levy by fund with new growth and allowances distributed. The tax levy to be approved includes the needs of all City departments, as well as for pensions and debt service requirements. The tax levy for School District 67 is also included in the chart below for your consideration. A summary of the proposed levies is as follows: December 16, 2004 Agenda Page 2 Fund/Purpose Proposed 2004 Levy 2003 Levy Change 2003 – 2004 $ % City General $10,457,368 $9,934,299 $523,069 5.27% Pension Funds $2,136,118 $2,090,614 $45,504 2.18% Park/Recreation Fund $3,111,997 $2,943,381 $168,616 5.73% Library $2,650,351 $2,569,415 $80,936 3.15% Seniors $145,011 $142,307 $2,704 1.90% Debt Service Funds $2,531,252 $2,589,806 $(58,554) -2.26% CITY TOTAL $21,032,097 $20,269,822 $762,275 3.76% School District 67 $22,674,807 $21,815,627 $859,180 3.94% GRAND TOTAL $43,706,904 $42,085,449 $1,621,455 3.85% The proposed tax levy for 2004 reflects a 3.76% increase over the 2003 tax levy extensions for the City and Library operating funds and City pension and debt service funds. This increase is in full compliance with the property tax cap limit of a 1.9% increase, plus new growth, which is estimated at 1.3%. Recent legislation allows for the exclusion of special recreation ($225,000) and a portion of the fire pension levy ($19,005) from the tax cap. Both amounts are in the above chart and are further detailed in the attached spreadsheets. The average increase to existing residents will be approximately 2.4% or $64 on an $800,000 home. A memo explaining growth, CPI and the increase to the homeowner will be distributed at the meeting. First reading of the proposed tax levy was approved at the December 6, 2004 City Council meeting. Recommended Action: Grant final approval of the proposed tax levy ordinance for 2004. (Staff Contact: Kathy Reinertsen 615-4222) 2. Abating 2004 Tax Levies for Various 8:00 p.m. G.O. Alternate Revenue Bond Issues (Final Approval) PRESENTED BY FINANCE COMMITTEE CHAIRMAN MICHAEL RUMMEL a) An Ordinance Abating the Total Tax Being Levied in 2004 for the Annual Payment of the Principal and Interest on the 1992B General Obligation TIF Bond Issue ($1,655,000.00) b) An Ordinance Abating the Total Tax Being Levied in 2004 for the Annual Payment of the Principal and Interest on the 1997A General Obligation (WATERWORKS AND SEWERAGE SYSTEM) Bond Issue ($260,750.00). c) An Ordinance Abating the Total Tax Being Levied in 2004 for the Annual Payment of the Principal and Interest on the 1997B General Obligation (PARKING DECK) Bond Issue ($154,185.00) December 16, 2004 Agenda Page 3 d) An Ordinance Abating the Total Tax Being levied in 2004 for the Annual Payment of the Principal and Interest on the 1998A General Obligation (PARK AND PUBLIC LAND) Bond Issue ($468,917.00). e) An Ordinance Abating the Total Tax Being Levied in 2004 for the Annual Payment of the Principal and Interest on the 1999 General Obligation (Cemetery) Bond Issue ($153,888.00). f) An Ordinance Abating the Total Tax Being Levied in 2004 for the Annual Payment of the Principal and Interest on the 2001-A General Obligation (Waterworks and Sewerage System) Bond Issue ($618,475.00) g) An Ordinance Abating the Total Tax Being Levied in 2004 for the Annual Payment of the Principal and Interest on the 2002-A General Obligation (Waterworks and Sewerage System) Bond Issue ($1,350,633.00) h) An Ordinance Abating the Total Tax Being Levied in 2004 for the Annual Payment of the Principal and Interest on the 2003-C General Obligation (Waterworks and Sewerage System) Bond Issue ($159,908.00) i) An Ordinance Abating the Total Tax Being Levied in 2004 for the Annual Payment of the Principal and Interest on the 2003-D General Obligation (Storm Sewer) Bond Issue ($256,300.00) j) An Ordinance Abating the Total Tax Being Levied in 2004 for the Annual Payment of the Principal and Interest on the 2004-A General Obligation (Golf Course) Bond Issue ($48,325.00) k) An Ordinance Abating the Total Tax Being Levied in 2004 for the Annual Payment of the Principal and Interest on the 2004-B General Obligation (Storm Sewer) Bond Issue ($307,525.00) December 16, 2004 Agenda Page 4 A summary of the proposed tax levy abatements are noted below: Bond Issue Original Tax Levy Tax Abatement Net Bond Tax Levy 1992B G.O. Bonds (TIF) $1,655,000.00 $1,655,000.00 $0 1997A G.O. Bonds (WATER) $260,750.00 $260,750.00 $0 1997B G.O. Bonds (PARKING) $154,185.00 $154,185.00 $0 1998A G.O. Bonds (PARKS) $468,917.00 $468,917.00 $0 1999 G.O. Bonds (CEMETERY) $153,888.00 $153,888.00 $0 2001A G.O. Bonds (WATER) $618,475.00 $618,475.00 $0 2002A G.O. Bonds (WATER) $1,350,633.00 $1,350,633.00 $0 2003C G.O. Bonds (WATER) $159,908.00 $159,908.00 $0 2003D G.O. Bonds (STM SEWER) $256,300.00 $256,300.00 $0 2004B G.O. Bonds (GOLF) $48,325.00 $48,325.00 $0 2004B G.O. Bonds (STM SEWER) $307,525.00 $307,525.00 $0 TOTALS $5,433,906.00 $5,433,906.00 $0 These ordinances provide for the abatement of 2004 taxes levied for the various outstanding general obligation ALTERNATE REVENUE bond issues. The tax levies for all bond issues are established and recorded with the County Clerk at the time the bonds are issued. Therefore, in order to reduce the bond tax levies, an abatement ordinance must be approved and filed with the County Clerk before December 28, 2004. The abatement of these general obligation (ALTERNATE REVENUE) bonds is possible due to the fact these bond funds have an adequate revenue source from TIF district collections, water sales, Cemetery revenue, parking charges, golf fees, utility taxes or sales taxes. Therefore, the general obligation tax levy can be abated as was planned at the time the bonds were issued. Copies of the abatement ordinances are attached beginning on page 13 for your consideration. Recommended Action: Grant Final Approval of the ordinances abating tax levies for various general obligation bond issues. (Staff Contact Person: Kathy Reinertsen 615-4222) B. Public Works Committee 8:05 p.m. 1. Report on Gaslights PRESENTED BY ALDERMAN JIM COWHEY The Public Works Committee met on December 7, 2004 to discuss the issue of City gaslights with representatives of the Lake Forest Preservation Foundation. Alderman Cowhey will report on the Committee’s discussion. December 16, 2004 Agenda Page 5 C. Ad Hoc Housing Committee OPPORTUNITY FOR PUBLIC TO ADDRESS THE CITY COUNCIL 8:20 p.m. NEW BUSINESS 8:25 p.m. 1. Approval of a Contract to Provide Distpatching and Ambulance Services to the Rockland Fire Protection District PRESENTED BY DIRECTOR OF PUBLIC SAFETY MICHAEL HOSKING (615-4242) The Lake Forest Fire Department is requesting permission to enter into a formal agreement with the Rockland Fire Protection District to provide ambulance and fire dispatching services. This agreement is very similar to the agreements we have with the Village of Lake Bluff for ambulance and fire dispatching as well as with the City of Highwood for police dispatching services. We currently have had a “gentleman’s agreement” for these services with the Rockland Fire Protection District for many years and they have paid for dispatching services for the last couple of years. The charges in this agreement are the same as that were agreed upon with the Village of Lake Bluff and the City of Highwood. The purpose of this the agreement is to formalize and standardize the charges for all communities the services are being provided to. A discounted charge for ambulance services has been recommended for the first two years of the agreement to allow the Rockland Fire Protection District time to budget for the new substantial charges. A copy of the proposed agreement is attached beginning on page 26. Recommended Action: Approval of the formal agreement with the Rockland Fire Protection District. 2. Preliminary Discussion on City’s FY 2006 Budget 8:30 p.m. PRESENTED BY DIRECTOR OF FINANCE KATHY REINERTSEN Tonight’s discussion starts the City Council’s review of the FY 2006 Budget (May 1, 2005-April 30, 2006) A. Budget Calendar – A review of where we are in the process and critical meeting dates. B. November 30, 2004 Financial Flash Report – The General Fund revenues and expenses are tracking favorably with the FY 2005 budget. Year-end revenue is forecast at $200,000 greater than budget. C. Preliminary FY 2006 General Fund Highlights: • Revenue is forecast to rise 4%. • Health insurance expense is forecast to rise only 3% due to plan revisions instituted last year. • IRMA, The City’s liability and worker’s compensation carrier, is forecast to rise 20% due to The City’s loss history over the past three years. • The City’s contribution to the Illinois Municipal Retirement Fund is set to rise 13% due to the five-year averaging technique on investment returns. December 16, 2004 Agenda Page 6 D. Priorities/Direction - Staff is looking for input and direction from the City Council for areas on which to focus in preparation of the budget. City Council priorities will guide the budget recommendations submitted by staff. Recommended Action: For discussion purposes only. ADDITIONAL ITEMS FOR COUNCIL DISCUSSION ADJOURNMENT 9:15 p.m. Office of the City Manager December 9, 2004 The City of Lake Forest is subject to the requirements of the Americans with Disabilities Act of 1990. Individuals with disabilities who plan to attend this meeting and who require certain accommodations in order to allow them to observe and/or participate in this meeting, or who have questions regarding the accessibility of the meeting or the facilities, are required to contact City Manager Robert R. Kiely, Jr., at (847) 234-2600 promptly to allow the City to make reasonable accommodations for those persons. December 16, 2004 Agenda Page 7 THE CITY OF LAKE FOREST BUDGET CALENDAR FOR FISCAL YEAR 2006 YEAR 2 OF 3-YEAR TRANSITION July 27, 20004 Discuss budget calendar at Executive Staff meeting. August 2, 2004 ..................Discuss budget calendar at Finance Committee meeting. August 3, 2004 ..................Discuss budget calendar at Management Staff meeting. September 7, 2004 ..................Management Staff meeting to discuss the new detailed budget forms and optional monthly budgeting. October 5, 2004 ..................Management Staff meeting. Distribution of fees under consideration for increase report. Chris Martin continues the Prioritized Capital Improvement Program. October 26, 2004 ..................Distribution of salary and benefit spreadsheets and position control at Executive Staff. Discussion of approach to position control, position re- classes, merit bonus pools and extra steps within range pool. November 4, 2004 ..................Fee increase proposals due to Director of Finance. November 5, 2004 ..................Distribution of revenue forecast sheets to departments for revenues not subject to fee increases. November 10, 2004 ..................SPECIAL FINANCE COMMITTEE MEETING to discuss City service evaluation and alternate revenue in accordance with the home rule referendum. Evening Meeting 6-9 pm. November 12, 2004 ..................Revenue forecasts due to Director of Finance. Salary and benefit spreadsheets due to Director of Finance. November 18, 2004 ..................CHANGE IN MEETING DUE TO HOME RULE REFERENDUM Finance Committee discussion of tax levy and approval of fee increases by City Council. November 24, 2004 ..................Health & liability insurance, utility and legal costs finalized. November 30, 2004 ..................Preliminary Fleet budget due. December 3, 2004 ..................Final salary & benefit spreadsheets distributed to departments. Budget expenditure and discretionary worksheets available. City Manager and Director of Finance meet to discuss Finance Committee/City Council presentation. December 6, 2004 ..................City Council first reading of tax levy. December 16, 2004 ...........SPECIAL FINANCE COMMITTEE/CITY COUNCIL MEETING to discuss budget direction based on revenue projection. Information will be distributed that evening. City Council approval of tax levy. Evening Meeting 6-10 pm. December 20, 2004 ..................City Manager and Director of Finance meet to discuss targets. December 16, 2004 Agenda Page 8 December 22, 2004 ..................Special Executive Staff meeting to receive targets. January 3, 2005 ..................Finance Committee discussion of Golf Course and Beach fees and approval by City Council. January 19, 2005 ..................Department operating budget requests with supporting detail submitted to Director of Finance with optional submission of monthly budgets.Five Year Capital Improvement Program due to Assistant City Manager. February 9 – February 18 .......................City Manager and Director of Finance budget review with the Department Director. March 17, 2005.......................................Finance Committee meeting on FY2006 revenues, operating and capital budgets, personnel policies/pay plan and five-year financial plan. Afternoon meeting 12-6pm. April 6, 2005 ............................................Rollovers from FY04 to FY05 due to Director of Finance. April 7, 2005 ............................................CHANGE IN FINANCE COMMITTEE MEETING DUE TO REAL ESTATE TRANSFER TAX REFERENDUM. Finance Committee meeting on FY2006 budget strategies, and final budget decisions. Afternoon meeting 4-6pm. May 9, 2005............................................City Council approval of rollovers, proposed budget and financial plan. December 16, 2004 Agenda Page 9 THE CITY OF LAKE FOREST FINANCIAL FLASH REPORT GENERAL AND WATER FUND As of November 30, 2004 General Fund Variance to Major Variable Revenues November YTD Budget Sales Tax 1,207,999 27,999 .5% Sales Tax 388,087 52,087 Income tax 764,527 (23,473) Utility Tax 1,812,466 (145,534) Building Permits 792,792 106,792 Vehicle Stickers 1,020,410 86,810 104,681 Overall General Fund revenues are tracking with the budget. With building permit revenue, one large project could bounce the numbers significantly. As a result, there can be wide variations from month to month. A monthly budget system for building permits is being developed. Variance to Water Revenues November YTD Budget City Water Sales 3,337,750 81,844 1,700 accounts have been converted and billed under the radio read system. General Fund and Water Fund expenses as of November 30, 2004 are tracking even with the budget. With 58% of the year complete, there are no areas of concern.