Proposed Appropriation for the Fiscal Year 13/’14

Monday, April 22, 2013 – 6:00 p.m.

Council Chambers

1. Call to Order.

2. Commencement of Public Hearing: PowerPoint Presentation on FY14 Proposed Budget Highlights.

3. Public Comment/Questions

4. Adjournment of Hearing



FISCAL YEAR 2013/2014

MONDAY, APRIL 22, 2013 – 6:00 P.M.


The public hearing was called to order. Those present: Mayor Krzeminski, Clerk Sweeney, Treasurer Jasinski; Aldermen Jasinski, McDermott, Michalczyk, Musillami, Pondelicek, Von Drasek. Also present: Administrator Paul, Asst. Admr. Peterson, Deputy Chief Novak, Finance Director Drazner, ESDA Coordinator Norman, Planner Swanson, Sr. Acct. Lieu.

Finance Director Drazner began with presenting a summary of revenue and expenses for all Funds. After excluding interfund transfers-in, there was no significant change in revenues between FY13 and FY14 while the combined expenses decreased by approximately $977,000 due to fewer capital projects budgeted. Of the eight Funds, five have FY14 budgeted deficits, primarily due to non-routine capital projects or large equipment purchases. FD Drazner stated that even though some Funds have a budgeted deficit, they all have sufficient reserves on hand to cover the budgeted shortfall for next year. . In addition, specifically regarding the TIF Fund deficit, it is not unusual for a new TIF to have a deficit for the first few years until the collection of property tax incremental revenue begins.

Next, FD Drazner presented the top five revenues for the City which include Sales tax, Property tax, Electric utility use tax, restaurant tax, and the State income tax. Of these five revenue sources, sales tax alone brings in approximately 66% of all revenue in the General Fund. Due to the projected increase in sales tax, elected officials have opted to reduce the property tax levy by about one third, from $1.5 million down to $1.0 million. This should save the average homeowner about $300 for the year in property tax. He went to to discuss some of the other revenues and that although the State had been discussing possibly reducing the State income tax distribution to municipalities, there has been no change in the law at this point. FD Drazner went on to discuss the top expense categories which comprise the General Fund budget. For FY14, these include salaries/benefits, debt service payments, an interfund transfer to fund capital projects, city contribution for health insurance, and the annual police pension contribution. Typically, salaries/benefits, health insurance, and pension contributions will always be at the top of the list each year. For FY14, a total of $333,000 in grant revenue was budgeted primarily for ITEP engineering and the Safe Route to School infrastructure projects. The budgeted grant project expenses are $378,000 with a city match for these projects of only $45,000. FD Drazner gave a special mention to Sharon Peterson and Laura Fast for submitting applications for these grants which will greatly benefit the community.

A slide was presented summarizing the main capital projects budgeted for FY14. The top projects not reimbursable by grants include various street/alley paving projects, a new BMX structure at Countryside Park, and new signage throughout the city.

FD Drazner went on to discuss other city funds, beginning with the Motor Fuel Fund. A summary of several streets to be resurfaced was presenting totaling $800,000. Of this amount, a total of $500,000 of this cost has been budgeted in the MFT Fund while the balance would be paid out of the CIP Fund (funded by the General Fund).

The FY14 budget for the E911 Fund reflects changes related to the outsourcing of dispatcher services to Southwest Central Dispatch. Once the transition takes place, the city will begin to realize savings. An amount has been budgeted in the E911 Fund to pay SWCD a per officer fee as specified in the contract. In addition, the city must remit to SWCD 100% of collected wireless surcharge and 16% of landline surcharge revenue.

The next Fund is the Hotel/Motel Fund which receives revenue from a 5% tax on all hotels or motels in Countryside. This money is used to promote the city by advertising, events, concerts and other community relations programs. In addition, an amount to provide an economic tax sharing rebate has been included in the FY14 budget.

The TIF Fund was created to establish the City Center project. Progress is being seen and will continue into the FY14 year. Parcels have been sold to developers and retail and restaurants are expected to open over the next year. In order to start collecting TIF incremental revenue as soon as possible, city staff segregated parcels in the City Center development which will help in generating TIF increment quicker based on the County’s method of calculation.

The Drug Forfeiture Fund was discussed next. Due to the nature of the revenue in the Fund, it is very difficult to forecast with the many variables and unforeseen circumstances which must be taken into account. Therefore, a conservative approach has been used to budget revenues in this fund. Per Federal and State guidelines, money in the Fund can only be used on certain eligible expenses. A list of the top expenses budgeted was presented and includes the purchase of three squad cars and related equipment, police station improvements, patrol rifles, and police overtime.

The final two Funds presented are the Water and Sewer Funds. Last year the City of Chicago announced a four year schedule of increases. Since the City purchases water from the Village of McCook which in turn purchases water from the City of Chicago, these increases directly affect the cost of Countryside water. The increase passed through for calendar year 2013 was $.42 per thousand but due to the strong financial position of the Fund, only half of that amount was passed through to Countryside customers, excluding the City’s two municipal customers which have been passed through the full $.42 increase. A summary of water rates by billing category was presented. In addition, it was mentioned that $500,000 was budgeted in the Water Fund related to infrastructure improvements to widen Joliet/LaGrange Rd. Also, in the Sewer Fund, $340K was rebudgeted for a new lift station. After the presentation the audience was invited to ask any questions. There being none, the hearing adjourned at 6:28 p.m.

Dated_______________________ _______________________, Chair Jasinski