The Specially Called Budget Meeting was called to order at 5:00 p.m. with the following in attendance:
Mayor Mike Howley, Treasurer Al Vodicka, Clerk D’Lorah Catizone, Aldermen Ferrero, Fonte, Kman, McHugh, Purtill, Stachnik, Waight, Zimmerman (5:30 p.m.), Police Chief Charles Hobart, Public Works Director Sue Lehr, Building Commissioner John Moirano.
Budget 2021-2022 (May 1, 2021-April 30, 2022)
Treasurer Vodicka distributed to the Council the proposed budget for FY2021/2022.
Treasurer Vodicka noted he had met with department heads individually and thanked them for their input.
The following are highlights of the Proposed Budget FY2021/2022
Treasurer Vodicka stated the next review will be the General Fund Operating Departments and General Fund Revenues.
Treasurer Vodicka noted the following:
Total Property Tax Revenue is budgeted at $2,417,000 vs. current budget of $2,318,000. Total Licenses Revenues are $329,100.00, Total Permits $243,000, Total Intergovernmental Revenues is $3,885,000. Total Fines are $201,000, Total Service Charges $449,000, Total Other Revenues $324,500. Total Other Financing Sources $2,150,010. Total Revenues for the General Fund are $9,998,610 increased from last year’s budget of $9,434,500.
Administration – This department covers the Elected Officials and Legal Retainer Services. Treasurer Vodicka noted the Total Budget Personnel which includes salaries and benefits is $259,700. Total Administration Department Budget is $271,700.
Administration Operating Budget – Treasurer Vodicka reviewed this operating budget. The Total Admin. Operating Expense Budget $473,000. Total Contract Services is budgeted at $198,300.
Finance Department – Treasurer Vodicka stated this department consists of the Treasurer and Financial Administrator Mary McDonald and one part-time employee. Total Personnel Budget which includes salaries (all salaries were increased by 2.5%) and benefits is $111,300.
He noted all other operating costs have no significant increases from the current year budget. The Total Finance Budget is $126,550 vs. the current year budget of $133k.
City Clerk’s Department – Treasurer Vodicka presented the Total Budget for the Clerk’s Office which is $224,800 (reflects 2.5% wage increases). Current Total Personnel budget which includes salaries and benefits is $202,500.
Planning & Zoning Department – Treasurer Vodicka presented the Total Planning and Zoning Department Budget of $26,050 vs. current year budget of $26,700. Total Personnel $6,400. Contractual Services which included Legal and Engineering Expense budget is $19,550. The Planning and Zoning Revenue under the General Fund is $5,000.
Building Department & City Hall Maintenance – Treasurer Vodicka presented this budget. He noted the Building Department Personnel Budget is $133,100 (reflects a 2.5% wage increase). The Total Building Department operating budget is $197,100.
Treasurer Vodicka stated the City Hall Maintenance expenditure budget is $60,500.00. This includes a new park design at City hall budgeted at $30,000.00
Police/Fire Commission – Treasurer Vodicka presented the Total Police/Fire Commission budget is $26,050 vs. current budget of $26,700k. This is a slight decrease.
Next to be reviewed is the Police Department Budget. Chief Hobart introduced the position of Deputy Chief. He distributed a memo with Deputy Chief salaries from the area. After some discussion, it was the consensus of the Council to add this position with a salary of $122,000 after review of the City Attorney. This amount is included in the following proposed budget numbers.
Total Full-Time Salaries – $3,307,000
This includes the 2.5% wage increases.
Total Part-Time Salaries – $135,510
Total Salaries – Overtime – $163,500
Salaries – Retire Health Plan – $90,000
Total Salaries Holiday – $146,500
Uniform Allowance – $47,500
Educational Incentive – $18,500
Total Salaries – $3,908,510
Total Health Insurance/Benefits – $2,757,300
This includes Workers Comp; Social Security/Medicare; IMRF Pension and Police Pension Contribution of $1.825 million (per actuarial report).
Total Contractual Services – $238,500
Maintenance Services – $72,500
Professional Services – $99,500 (raised due to police reforms)
Communications – $21,500
Professional Development – $34,000
Service Charges – $2,500
Other Contractual Services – $8,500
Total Commodities (Supplies) $81,700
Fuel and Oil is $53,200
Total Maintenance Supplies – $7,000
Office Supplies – $8,000
Computer – $4,500
Operating Supplies – $4,500
Janitorial Supplies – $3,500
Total Capital Outlay – $84,500
This includes a purchase of two (2) vehicles.
Other Police Dept. Expenditures – $9,500
Total Police Department Expenditures – $7,080,000
ESDA/Blood Drive/Community Relations – Treasurer Vodicka stated the ESDA Budget is $4,500k (ESDA Director $2,500). Blood Drive budget is $1k same as current year budget. Community Relations budget is $22k which includes Senior $7k and PATSE Bus $15k.
At this time, Treasurer Vodicka stated the review of the Public Works –Road Department will be done by Public Works Director Sue Lehr.
Road Department – Ms. Lehr reviewed the Road Department proposed budget for FY2021-2022. The total Personnel Costs (Wages & Benefits) are budgeted at $972,000. Total salaries are budgeted at $614,000; benefits are $358,000. The total personnel cost of $972,000 represents 70% of the total Roads Operating costs.
Contractual Services – The total Maintenance Services are budgeted at $87,000. Total Professional Services budget $29,500. Total Communications (postage/telephone) is budgeted at $4,600. Professional Development budget proposed is $3,500. Total Service Charges (Utilities) budget of $56,100. Under Other Contractual Services (rentals) is budgeted at $12,000. The total Contractual Services budget is $199,700 vs. the current year budget of $216,700.
Commodities – For Maintenance Supplies which include building, equipment, vehicles and streets, the budget proposed is $55,000. The Maintenance Supplies Utility budget is $9,500. Maintenance Supplies Snow Removal (salt) budget is $55k. Maintenance Supplies Other Property budget is $8,000. Other Supplies budget is $31,500 with gas at $25k of this total. Total Commodities Budget is $147,000 vs. current budget of $143,500.
Moving on to Capital Outlays – Total Capital Outlays budget is $71,000 which includes $33k for a new roof at Public Works office building, $12k for a new pick-up truck.
Total Road Department Expenditures: Total budget is $1,393,700 vs. current year budget of $1,408,700.
Community Affairs Expenditures – Treasurer Vodicka presented the Community Affairs Expenditures as the following. Total Community Affairs budget is $33,000.
This includes a slight increase from $10k to $12k for holiday decorations.
Community Center – Treasurer Vodicka presented the Community Center Budget. The operating budget is made up of Personnel $22,500, Maintenance Services $15k, Contractual Services $15k. Commodities is $4,000. Capital Outlay is $6,000 (new front door to Community Center). Other Operating expenditures/uses $2,500. Total Community Center Expenditures is $57,500.
Treasurer Vodicka reviewed the Department Recap. The total General Fund Expenditures is $9,998,610 vs $9,434,500 which reflects an approximate $500k increase.
All other Funds, General Funds
Treasurer Vodicka gave an overview of the following fund proposed budgets:
Forfeiture/Narcotics Fund Revenues $189,500
Federal seizures – $0
State seizures – $500
Asset Sales – $5,000
Misc. Revenue – $0
Fines – $184,000
Total Personnel Cost – $6,000
Total Contractual Services – $39,500
Total Commodities – $4,000
Total Capital Outlay – $134,000
Total Forfeiture Fund Expenditures $189,500
Total Forfeiture Fund Revenues $189,500
Discretionary Fund – Revenue Total – $5,000 Expenditures – $5,000
This fund covers allocated General Funds to the Senior Task Force; Youth Commission; Beautification and Economic Development. Miscellaneous revenues cover fundraising separate from City revenues. Miscellaneous expenditures cover contributions to individuals and organizations not paid by City revenues.
Treasurer Vodicka reported the TIF Revenues are property taxes for those businesses located in the TIF. The TIF Expenditures cover those expenditures directly related to the TIF: Audit, Engineering and Legal.
TIF Fund – Total Revenues $325,000
Expenditures – $191,000
Contractual Services – $30,000
Debt Services – $5,000
Capital Outlay – $0
Other Expenditures (Prop. Tax rebate Ricky Rockets) – $156,000
Utility Tax Fund – Revenues $2,569,000
Expenditures/Uses – $4,205,810
Total Expenditures – $4,215,810
This revenue is generated from a special tax on telecommunications/Nicor/Gas/ComEd.
The Utility Tax Expenditures cover any funds needed by the General Fund budget deficit and for Special/Major City Wide Capital projects.
9-1-1/ETSB Fund Budget
9-1-1 Revenue budget – $251,500
Total Salaries – $204,500
Total Benefits – $36,500
Total Personnel – $241,000
Total Contractual Services – $4,500
Total Commodities – $5,000
Total 911 Service Expenditures – $251,500
Total 911 Service Revenues – $251,500
Motor Fuel Tax (MFT) – Revenues – $1,048,000
Expenditures – $615,000
Motor Fuel Tax is distributed to municipalities based on Per Capita or for Hickory Hills population of approximately 14,000. MFT Funds cover expenditures for street resurfacing, street repairs along with engineering costs. With an increase in revenues this budget may add to the street program in October.
Working Capital Fund – Revenues – $5,000
Expenditures – $209,700
Working Capital Fund are funds used for General Fund operating expenses, along with other special project funding. The current budget reflects a $207,200 transfer to the General Fund for operating expenses.
Water Capital Fund – Revenues – $825,000
Expenditures – $825,000
This includes $825,000 in Capital Outlay.
Sewer Capital Fund – Revenues – $1,136,000
Expenditures – $1,610,000
The Sewer Capital covers Sanitary Sewer Lining of $640,000 and Manhole Lining of $175,000.
Capital Projects Fund – Revenues – $1,139,000
Expenditures – $91,000
Expenditures Road Department – $1,045,000
Capital Projects are those major City wide capital projects not covered under Public Works Road/Water/Sewer Capital projects or are covered under Police and City Admin. Capital projects. This budget is funded by Grants of $503,000 and the Utility Tax of $633,000.
Working Capital Bond Fund – Revenues $127,000
Expenditures – $127,000
Treasurer Vodicka noted no changes in this fund.
Water & Sewer Operating Departments Budgets – Water Revenue Budget is $2,911,000. Water sales are $2,600,000 and Water Line Budget is $260,000.
Water Operating Personnel budget cost is $721,000 compared to current year of $679,000. At this time, Treasurer Vodicka presented three (3) options for a water increase. Currently, the City has absorbed the last water rate increase due to the pandemic. First option is to have no increase to the residents. Second option is to pass on the $0.26 water increase to residents and the third option is to increase the increase to create a surplus. It was the recommendation of the Treasurer and Finance Chairman to go with option two (2). After some discussion, it was the consensus of the Council to increase water rates to residents by $0.26.
Meeting was adjourned at 6:28 p.m.
(Budget meeting will continue at the Committee Meeting).