South Cook News

Village of Evergreen Park Finance Committee met Dec. 17

Here are the minutes provided by the committee:

A meeting of the Village of Evergreen Park's Finance Committee was called to order on December 17, 2024 in Council Chambers at the Village Hall, 9418 S. Kedzie Avenue at 2:00 p.m.

Clerk Kelly Duffy called the roll with the following results

Trustee Mark Marzullo

Trustee Carol Kyle

Trustee Jeanie Olson

Mayor Kelly Burke

Finance Director John Sawyers

Finance Director John Sawyers presented the budget/ appropriation ordinance report data for fiscal year 2024-2025 showing 23-24 actual data, 2024 projected data and budget request for 2025. Budget for 2025 will have projected $33,362 revenues in excess of expenditures, an in-balance budget. Sawyers stated that 2024 is anticipated to come in as a balanced budget and we have a long track record of balancing the General Fund budget.

General fund expenses by type were reviewed. 62% of all general fund expenses are for salary and benefits. This is down from last year. The decrease is attributed to all our initiatives being more expensive and especially with PD since that have many more requirements.

A breakdown of expenses by department was presented in detail. Also presented was a census of all employees as of October 31, 2024, excluding the recreation department due to seasonal employment (those figures were accumulated as of July).

A full detailed budget that includes the General Fund, the Water Management Fund and the TIF was presented to the Committee.

GENERAL FUND REVENUES:

Sales tax revenues were projected with a 2.5% growth. New dealership (opened end of September 2023) 12 month of sales tax estimated $220K annually.

The property tax levy was a 3% gross increase but all of it and then some was absorbed by the police pension fund, totaling $408,343 resulting in a net general fund decrease of $63,276.

Income tax revenues 0.9% projected increase by using the most recent IML revenue factor of $173.05 per resident. Use tax was projected with a small decrease (0.2%) as the most recent IML revenue factor of $37.74 per resident was used in this calculation. State cannabis tax is forecasted as a 9.7% increase utilizing IML's revenue factor of $1.75 per resident. Replacement Tax has a projected decrease of 32% per most recent IML revenue. 

Regarding Fines and Forfeitures which includes red-light camera fines of 3300 paid tickets per month, the line item appears as an increase, however, red-light camera fines were estimated with a small decline.

Vehicle Stickers were eliminated which was revenue $375K but with Admin expenses $30K net revenue eliminated is $345K.

A review of how home rule sales tax transfers are used in the budget was presented. We have $2.6 million of home rule sales tax transfer.

Fees, licenses, and permits revenues are constant even with the elimination of vehicle stickers.

Total revenues are budgeted for $36.lM with $34.3M projected for 2024.

GENERAL FUND EXPENSES

ADMINISTRATION

Overall, a well trended department. Few initiatives contributing to this budget includes a major upgrade to cloud computer system, cabinets and upgraded camera for Village use, moved HR to new department in 2024 and changes in salaries with hiring a deputy clerk/finance asst to replace the retiring deputy clerk in 2025. The budget is level at $1.lM compared to previous year at $1.132M.

ADJUDICATION

$507,500 budgeted for 2025 -small decline because there was a vehicle in 2024 but there is not in 2025. 2nd full year with DACRA software (approx. $1650 per month.) Red-light camera collection & PT collection agency fees recorded as fees 10.12.60.234. (Amnesty program caused fees to rise in 2024 but we don't have that in 2025.)

IT DEPARTMENT

There was a request for another PT person which has been put on hold. IT Manager, Tom Mullaly is taking more ownership of this budget with several initiatives including rewiring data links at the Barn, Golf Range, and Fire Dept, migrating all the PCs to Microsoft 365, Image trend software and $36K in server hard drives. Insurance requires us to do certain things for cyber safety.

HR DEPARTMENT

Moved into its own department in 2024 from Administration. Moved payroll service fees into this department which is a growing expense because of increased automation. Continued wellness program expenses include flu vaccine, healthy activity incentive, and advance funding of FSA accounts $250 per EE.

STREET DEPARTMENT

Budget is currently proposed at $3,258,550 which is up about $120K from previous year. Moved Barn staff from Street Dept salaries to Park Fund in 2024. Adding two new maintenance employees for estimated $120K increase to salaries. Street Department Budget items include the ice and snow budget $140K which is the 3-year trend average. Salt cost went from 68.02 to $64.07 per ton. Repairs and Maintenance Street and Alleys budget decreased from $100K to $SOK with the new initiative of cutting alleys twice a year. R & M Sidewalks will add $SOK for sidewalk replacement program. We will bring back  the sidewalk program but instead of the Village contracting one company, the resident can contract who they choose to do the work and request 50% rebate up to a predetermined amount. Also effecting the expenditures is two Peterbilt plow trucks that have been ordered (to replace two old ones) and paid for from the Capital Fund.

POLICE DEPARTMENT

Two new FT officers will be hired bringing the officer count to 62 sworn by 2/1/25. Overtime payroll budgeted at $460,000 which is net of $175M fed forfeiture contribution. Payroll for the police department makes up almost half of the payroll budget. Police budget is at $11,713,528; up 7%. We are on year 2 of the state mandated training at cost of $44K. Other expenses include: new Grant writer program at cost of $10K, $14K for 17 safety vests, $95K annual cost for Flock camera system upgrade (year 3 of 5), $59K annual cost for new interview Axon cameras (year 1 of 5), $73K to upgrade cameras at Circle Park, Vukich, Barn and PD lockup and $12K for additional computer supplies. This budget includes $78K to update interview room and $10K to update locker room. Vehicles are scheduled for purchase and upgrade body cams and car computers. Mr. Sawyers noted they do a good job of providing detailed costs and keeping track of it all. The Police Department is clearly our biggest and most expensive department as well as the most important department as everyone agreed.

FIRE DEPARTMENT

Chief Kleinhaus is retiring at the end of the month. Mr. Sawyers noted Ron always did a great job of projecting expenses and he will be missed. Budget forecast is $3,590,400 for 2025. Payroll savings has offset its initiatives with two individuals moving up with the retirement of the Chief. Fire initiatives include 3 new mobile radios, some station upgrades, ongoing paramedic/EMT education reimbursement, and paramedic class cost. They have an Ambulance ordered since 2022 and not expected til 2/2025 which will be funded from Capital fund.

CITIZENS SERVICES

Department budget is $272,950. This budget is purely trended information.

PARKS DEPARTMENT

The budget is set at $575,000. This is where the payroll for the Barn staff is now. Bulk of the cost of this budget is in the maintenance category. Landscaping is coming in under budget so forecasting $210K for next year.

Mr. Sawyers explained why we move things from Capital Fund. We need maintain a certain fund level balance, ours is 4-6 months of expenses. We move big items to Capital Fund to adhere to those rules.

RECREATION DEPARTMENT

2025 budget is $969,800. Program expenses are up from $225K to $280K which means they are doing good for our community.

BUILDING DEPARTMENT

Total budget is $630,760 which includes 2 PT Inspectors for 3 months. The demolition line item is $75K as a place setter since it is always hard to determine what it'll come in at.

COMMUNITY CENTER

The budget is $250,000 based on trended data. Labor cost are up a bit because Maple Well.

PROPERTY MAINTENANCE 

Total budget is $552,822. Cleaning cost has increased dramatically due to the need to replace the cleaning service for Police Department. Fire Station may need roof repair so we are putting $41K as place holder. The storage garage needs an overhead door replacement at $10K. The senior center needs a HVAC replacement for $13K. Budgeting $31K to pressure wash and stain the barn.

OTHER EXPENDITURES

Total is $10,208,242. This includes all our payroll taxes, IMRF, Health insurance, and 911 service. Health insurance went up 7.5% and retirees' health care has been funded in a trust. Liability insurance increased 12.2%. Refuse collection has increased by approximately 4%. Big items are our sales tax incentive agreements we have in place and Mr. Sawyers said he expects Menards will wrap up in 2025 which will be some nice savings. Our re-budgeted contingency falls under this at $250K.

DEBT FUND EXPENDITURES

Total debt fund is about $1M and it's been steady. Attorney Vince Cainkar oversees the village's debt service expenditures.

WATER MANAGEMENT

This department was underfunded previously because the city of Chicago had significantly increased water cost each year. Increases have been absorbed by the village and not passed on to the residents. We had finally increased the water cost and now we are in the black. This is a business type fund that needs to be self-sufficient. Revenues are forecasted at $7,755,000 and expenses at $7,752,434 with a small forecasted profit. Anticipating finishing 2024 is $240K surplus after paying a sewer lining project. Health insurance and liability insurance both increased. In 2025, more administrative costs will increase from $142K to $200K. Bigger costs projected are in Repair and Maintenance for the Sewer System, the Water system, and the storm sewer system. This department is requesting a 2025 Ford Escape and budgeting $SOK for Building improvements. We are in the 8th year of our water meter loan of $110,550 and the last payment is due in 2035.

TIF BUDGET

Place setters are the economic incentives, landscape, property additions and build outs of parking lots. We now have two TIF districts with the car dealership. 95th Street TIF is going to bring in $2,136,200 and there is an expense forecast of $3,575,000 which is $1.4M more. The TIF Triangle Redevelopment (car dealership) budgeted at $200K revenues and $600K in expenses.

Mr. Sawyers explained again that items that we are using the capital fund for is basically, funded from Home Rule Sales Tax. There was a discussion on how MFT fund can be used. Until you obligate MFT, it keeps growing. Due to that growth, road resurface projects can be planned allowing us to commit MFT funds.

Mr. Sawyers expressed that he is happy where we ended up on this budget and thanked everyone for their attendance. Motion to adjourn by Chairman Manzullo second by Trustee Kyle. Upon roll call voting yes to adjourn: Finance Director Sawyers, Trustees Kyle, Olson, Mayor Burke, Chairman Marzullo, voting NO: None. The meeting adjourned at 3:01 p.m. 

https://www.evergreenpark-ill.com/AgendaCenter/ViewFile/Minutes/_12172024-74