Minutes Archive

December 13, 2000 - Special Workshop

Mayor Krajewski called the Special Workshop meeting of the Village Council of the Village of Downers Grove to order at 7:05 p.m. in the Committee Room of the Village Hall.

Present:Mayor Brian Krajewski; Commissioners Marilyn Schnell, Thomas Sisul, Michael Gilbert, Sue McConnell; Village Manager Michael McCurdy; Village Clerk April Holden

Absent:None

Visitors: Residents: Martin Tully, 3678 Venard; Mark Zabloudil, 620 39th St. Staff: Jerry Sprecher, Deputy Village Manager; Marty Lyons, Director, Financial Services; Trisha Steele, Assistant Director, Financial Services; Mike Baker, Assistant to the Village Manager

MANAGER

Review 2001-02 Budget Revenues. The Manager said the purpose of this meeting was to initiate the budget season with a discussion of revenues for next year and to establish budget goals. He referred to a Council packet providing three scenarios of revenues for FY 2001 -02. He said all of the scenarios reflect a reasonable increase in major revenue sources including:

Sales tax increasing at 3% over current year receipts Income tax increasing per IML estimates at 7% Estimating telecommunications tax receipts to increase at 10% over current year receipts Permit revenues reflecting the increase in fees and staffing from the 2000-01 budget amendment Overall revenue increasing between 5.5% and 6.0% for 2001-02

The Manager said Scenario One shows no increase in tax rates. Scenario Two shows an increase in the Telecommunications Utility tax rate from 2.3% to 3.0% and a corresponding swap of these new revenues with a tax abatement of $900,000. Scenario Three shows the same swap as in Scenario Two, with an additional abatement of property taxes by $620,000 due to the implementation of a resident ambulance fee. He asked Mr. Lyons to address this matter.

Mr. Lyons said it was agreed at last year’s budget reviews that Council would review revenues first this year. He said budget documents should be available to the Council 25-30 days earlier than last year.

Mr. Lyons reviewed the major sources of revenue mentioned previously including sales tax, income tax, and telecommunication and utility taxes in addition to property taxes.

Mr. Lyons said revenues and expenses are scheduled to increase at a below 6% increase, and salary estimates are projected at a 6% increase from 2001-02. As salaries make up over 2/3 of the Corporate fund budget, he said it is important to target total Corporate fund expenses to increase by less than 6%. Considering that both revenues and expenses went up by 10% for 2000-01, next year may require tighter controls on increases/changes to the operating department budgets.

Council discussed current and new projects. It was suggest that new programs be examined in view of the mission statement and goals. Departments should assess the values of an existing program vs. new programs and the value to residents to determine the programs of greater value.

Council reviewed a revenue survey comparing Downers Grove to other communities.

Council discussed property taxes at length. Commissioner Gilbert said he would like to see property taxes reduced. Mr. Lyons said to eliminate the property taxes it would be necessary to look at reductions in services or increases in other revenues. He said he would not recommend relying more heavily on sales taxes this year.

Mayor Krajewski discussed hotel taxes and overweight truck permit fees. He said companies pay more fees in other communities than they do in Downers Grove. He also expressed the need to look long-term at revenue growth. He said it is important to look at revenues over the next five to ten years.

Commissioner Gilbert said to get a $1 million cut in property taxes, expenses would have to be reduced by $600,000.

Council discussed abatement, which provides flexibility to reinstate taxes if necessary.

Council asked Mr. Lyons to develop a matrix providing for a full property tax abatement within four years and an increase in user taxes to just below those of other communities.

There being no further discussion, the Workshop meeting was adjourned at 8:33 p.m.

April K. Holden Village Clerk