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VILLAGE OF ALSIP MINUTES OF BOARD OF TRUSTEES PUBLIC HEARING BUDGET & APPROPRIATION MEETING April 16, 2012 Mayor Kitching called the meeting to order at 7:00 p.m. Clerk Venhuizen called the roll with the following in attendance: Trustees Shapiro, McGreal, Daddona, Quinn, Dalzell, Ryan and Mayor Kitching. Mayor Kitching reported all legal requirements have been met for this Public Hearing and called on a representative from the Finance Department for a report. The following reported was presented to the Board: Transmitted, herewith, for Board consideration are the proposed Annual Appropriation Ordinance and the Ordinance approving the estimate of revenues for the Fiscal Year beginning May 1, 2012 and ending April 30, 2013. The Village of Alsip operates under the appropriation ordinance as outlined in the current Revised Illinois Compiled Statutes. The act requires the Board to adopt these ordinances no later than the first quarter of the applicable fiscal year to which it applies. Adopting and monitoring these appropriations, to ensure the financial stability of the Village, is one of the major functions of the Board. This process affords the Board the opportunity to balance the needs of the community against available resources. The appropriation ordinance does not constitute a mandate to spend; but rather the authority to do so. The appropriation ordinance and estimate of revenues proposed for the General Fund for fiscal year 2013, which began on May 1 2012, are extremely conservative and include only essential expenditures needed to maintain current services. Capital expenditures for the general fund include the purchase of a new fire engine, replacement of the boilers at fire station 1, upgrading of lighting at all Village facilities in accordance with federal requirements, a new security system for the Village Hall, replacement of HVAC controls for the Village Hall, replacement vehicles for the police department and a new breathalyzer. The Village updates its pavement management program annually to deal with an aging infrastructure. This multi year program establishes guidelines, with the Boards approval, for street maintenance and repair. In August 2009, the Board approved the issuance of $3,500,000 in Build America Bonds for roadway improvements. This appropriation ordinance includes the final projects of a three year program which addresses both commercial and residential streets. The program for Fiscal Year 2013 includes the resurfacing of Springfield and Hamlin Avenues North of 127th Street, and various other streets. It is anticipated that this program will have a significant impact on the roadways currently rated as inferior and poor. Gas Tax dollars have been allocated to this program, however, Motor Fuel Tax dollars remains the predominant funding source of the pavement management program. In Fiscal Year 2011, additional Motor Fuel Tax revenue was allocated to municipalities and it is anticipated that the same amount of additional funding approximately $85,000 will be received this year. This funding would be available for infrastructure improvements for the Village. This appropriation ordinance allocates this additional funding to street improvements for Austin Avenue to 118th Street. In is anticipated that sewer projects for Mather and Avon Avenues, along with the repair of some collapsed sewers, will be addressed through a bond program during this fiscal year. An amendment to the appropriation ordinance will be done when the bonds are issued. In the area of economic development, the Pulaski Road Corridor TIF, established in Fiscal Year 2011, is already seeing new projects. As noted in the Redevelopment Plan and Project plan the primary goals of this program are to provide for the implementation of economic development and redevelopment strategies that benefit the Village and its residents, protect the character and stability of the commercial areas by creating new jobs and retaining existing jobs for Village and area residents and to strengthen the property tax base of the Village and overlapping tax districts. To date one new restaurant has opened and approval has been given for a Family Dollar store at 123rd and Pulaski. Public Hearing -1-

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Annual Appropriation Ordinance/Estimate of Revenues April 16, 2012 It is anticipated that construction will begin this spring. Additionally, work on certain public improvements, street lighting and plazas, will begin in fiscal year 2013. Plans will also be formulated this year for Phase 2 of the Pulaski Avenue TIF which could include faade improvements and/or other building or parking lot updates that would benefit the entire corridor. The Village continues to work on the development of the 123rd and Cicero Avenue TIF District. Plans include the possible Detif/Retif of the existing area with expansion to the North along with the possibility of phase construction. The Village continues to work with potential developers on this site. Finally, construction of an approximately 180,000 square foot warehouse and office facility, of the site of the old auto auction property, will also begin this spring. In the area of community amenities and enhancements, the 2012/2013 appropriation ordinance allocates resources for clean-up and improvements throughout the community. This budget begins a multi-year program to remove and replant trees in the Village parkways that have been affected by the Emerald Ash Bore infestation. Also included in the 2012/2013 appropriation are resources for the National Night Out and the Street Fair. Additionally, the Village is a member of a multi-jurisdictional project to enhance the Cicero Avenue Corridor from 127th Street to Midway airport. A contract has been awarded to URS and plans are being finalized. This project will address transportation planning, land use planning, economic development options and streetscape improvements to enhance this corridor. It is anticipated that work will begin this Fiscal year. In March, 2007, the Board approved the issuance of water and sewer system improvement bonds. This will be the final year of that program designed to upgrade the Villages system. To date the painting of the West water tower, including structural repairs, replacement of some existing water mains, new lift station, new underground line to serve Crestwood and Palos Heights, and repairs to the underground storage tank has been completed or are substantially complete. Projects expected to be accomplished this year include continued upgrades of the system, which include the installation of new water mains, and a meter replacement program. The Village was also approved for a low interest loan from the IEPA for the construction of a new pump station to include upgraded equipment. This new facility will be completed this fiscal year and will allow the water department to better serve the residents. The Senior Housing appropriation continues the projects approved as part of the $3,500,000 in Build America Bonds issued for capital improvements. Those include new roofs, new boilers, new generators, new patio doors, a new pool and parking lot improvements. The corresponding debt will be retired through current rents. Additionally, other capital improvements, including sewer work, accessible pool lifts and renovation of existing apartments, along with ongoing maintenance, have been programmed in this appropriation ordinance. On the revenue side this budget reflects modest increases in sales tax, real estate replacement tax, State income tax, State income tax, State local use tax and building permits. These projections are based on a slight improvement to the overall economy and the development of the Pulaski Avenue TIF and other new projects noted earlier. It is worth noting that while slight increases are budgeted in some line items, total revenues received from the State, which represents 43% of general fund revenues; correspond to FY 2008 funding levels and current Village reserves are being used to balance the FY 2013 budget. The combined funds have budgeted revenues of $39,091,383.00, which represents a 5.40% increase over 2011/2012. This increase is mainly attributable to an increase in sales tax revenue and additional water revenues as a result of an increase from the City of Chicago. Budgeted expenditures for all funds are $38,717,750.00, which represents an 8.4% increase over 2011/2012. This increase is mostly a result of increased capital spending and the increased cost of water from Chicago. The appropriation ordinance and projection of revenues serves two purposes: one, as a planning tool and also as an instrument of control over expenditures. Control is exerted through an on-line accounting system. Finance reports, which compare actual performance with budgeted appropriations, are examined monthly. Public Hearing -2-

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Annual Appropriation Ordinance/Estimate of Revenues April 16, 2012 The 2012/2013 appropriation and revenues plan for a 4.6% increase in both revenue and expenditures. The Corporate Fund revenues are projected to be $17,124,500 and Corporate Fund expenses are projected to be $17,121,487. This results in a budgeted surplus in the Corporate Fund of $3,013. . Again, the appropriations and revenues are designed to provide the resources necessary for the Board to achieve its goals so that programs can be provided to meet the needs of the community. The 2012/2013 appropriations and revenues currently do not anticipate any cuts in existing programs. Budgeting during the current economic climate remains demanding. While we have seen a modest improvement in our local economy there remains much trepidation and uncertainty in the global economy, the ability of the State to address their budget issues, high unemployment and the continued housing slump. All of these issues, while beyond our control, could have a negative impact to our budget. Balancing the needs of the community with the current available resources will continue to be challenging. I would like to thank the employees of the Village of Alsip for their cooperation and dedication. I would especially like to thank the Department Heads for their efforts during these unprecedented times and for the exemplary services they and their staff continue to provide to the residents of Alsip. Thanks to the Finance Committee and the Board for their input and assistance; special thanks to the Finance Department staff for all they do daily. In conclusion, I am pleased to transmit to the Mayor and the Trustees the 2012/2013 Appropriation Ordinance and Estimate of Revenues for the Village of Alsip. Mayor Kitching asked for input or questions from the public; there were none. Motion by Trustee Shapiro to adjourn; seconded by Trustee Ryan. All in favor; none opposed. Motion carried and meeting adjourned at approximately 7:15 p.m.

Respectfully submitted,

____________________________ Deborah Venhuizen Village Clerk, Alsip, Illinois

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