Village Blog

December 30, 2009
The Budget and End of the Recycling Subsidy

I want to share some thoughts with you as the President and Village Board and Staff work through first the current year budget issues and build for 2010-11. The Board spent three meetings discussing the budget issues facing the Village at the mid budget year point. As we have all read and heard these issues are widespread and will be with us for some time.

First we have been working to reduce staff and costs for a number of years. In 2001 we had 128 employees. Our current employee total is 107. Some of this pertains to the reduced development, however there are also important factors such as technology in the Police Department that has allowed a reduction in the number of records employees, and in Public Works the contracting of some landscaping and snow removal. As we discuss the cost of pensions, health insurance and other benefits this is an important factor.

In the 07-08 Fiscal Year sales tax revenue was $10.4 M. This fiscal year we anticipate the number to be $8.7 M. Sales Tax represents over 50% of our general fund revenue. This reduction is a substantial impact to our bottom line. In line with this most other revenues are also declining including Income Tax and Utility Taxes. We anticipated some of this loss last Spring, however the situation became more acute as the year progressed. Therefore the reason for the multiple meetings of the Board one which took place all day on Saturday October 31.

Just a few of the measures that were implemented from that meeting and others include the following:

Implementation of an Accelerated Retirement Program to further reduce the number of employees;
Increasing the employee share of health insurance contribution;
Minimal Capital Budget for 2010-11 the largest part of the program will be road repairs which are funded through Motor Fuel Tax Fund;
Freeze funding of our Capital Equipment Replacement Fund which funds replacement of trucks and other equipment;
Freeze purchase of equipment for 10-11 including Police squad cars and Public Works equipment;
Reduction in training and travel budget;
Elimination of Village Newsletter replacing with more information on Village web site and cable;
Elimination of some Village memberships;
Reduction in funding of social service grants; and
Reducing funding for Village events such as Oktoberfest and the 4th of July.

The aforementioned are just a few of the reductions made that total over $1M in reductions for this year and set the outline as in the case of the newsletter and events for the 2010-11 Budget.

It is important to note that the Staff did review with the President and Village Board a number of tax and fee changes that could be implemented. It was the unanimous opinion that now is not the time for consideration of tax or fee increases first because of the economy and its impact to our residents and secondly we need to work on reducing expenditures as much as possible now and in the future.

One of these expenditures was the subsidy for recycling. In reviewing recycling with the Solid Waste Management Agency of Lake County (SWALCO), we were the only municipality that subsidized recycling through general revenues. In most municipalities curbside recycling is a fee for service. Ending this subsidy was first discussed in 2004 in our last period of reduced sales tax revenue. However that period was not as severe as our current situation. It was the opinion of the President and Village Board that when considering layoffs, the potential for reducing services, and not seeing the potential for improvements in collection of existing revenue, continuing the subsidy was not sustainable.

The Staff will continue to work with the President and Village Board to find savings in the Budget.

Questions or Comments? Contact Village Manager Mike Allison 847-918-3540 or MikeA@vhills.org

December 21, 2009
Chili’s Restaurant – Shops of Aspen Pointe

ERJ Dining LLC recently presented their plans to construct a new Chili’s Restaurant on Lot 4 in the Aspen Pointe PUD. The building will be approximately 5,800 sq ft and contain 184 seats. It will be a stand-alone building on Lot 4 and will not connect to the Buffalo Wild Wings to the east. Landscaping will be generally consistent with the approved plans for Aspen Pointe. Parking is provided on the lot with cross-parking agreements being in the place to allow parking for the restaurant on any commercial properties within the development.

There will be an outdoor eating area on the east side of the building. The plan calls for 32 seats being located on the patio area. It will be surrounded by a well–landscaped area which will serve as a transitional buffer between buildings. This area will create a unique dinning opportunity which should be approved as shown on the plan.

Good News - Building Plans for the Chili’s are currently in review by the Building Division. Construction will begin in early 2010. The store is projected to open in late summer 2010.

Questions? Contact Building Commissioner Michael Atkinson 847-918-3548 or mikeat@vhills.org

December 21, 2009
River's Edge Trail to Half Day Forest Preserve-Request for Village Assistance

William Seitz, working with the River’s Edge HOA, appeared before the Village Board’s Committee of the Whole on December 15 to present information regarding a possible connection of their property to the path system in the Half Day Forest Preserve. Mr. Seitz had contacted the Village to determine whether the Village would assist the HOA with creating a pedestrian connection via a “a Trail Access Easement” from their condo project located on Milwaukee Avenue to the Des Plains River trail located just east of the River’s Edge property. Mr. Seitz has indicated that the HOA would assume all costs related to this path which is currently estimated at $25,000 - $30,000.

The Board agreed to work with the HOA and Forest Preserve District to have this path installed and to provide a letter of support for the path to the District from Mayor Byrne. The Board also directed that an agreement between the Village and HOA should be drafted addressing the legal terms required by the Forest Preserve District. Specifically, the agreement should address the financial guarantees to insure payment for the improvements and all other costs by the HOA.

Questions? Contact Assistant Village Manager John Kalmar 847-918-3550 or johnk@vhills.org

December 21, 2009

Hazeltime/Seavey Restoration Project – Gregg’s Landing

Bids were solicited for the Seavey Drainage Ditch Restoration Project

@ Hazeltime Drive. Based on review of the owner and project needs, the lowest qualified bid was Earthwerks Land Improvements & Development Corporation of Batavia, Illinois in the amount of $312,071.60. The Village Board reviewed and approved Resolution 2009-209 authorizing the Village Manager to execute a contract not to exceed $320,000.00 with Earthwerks. The engineers estimate for this project was $390,000. The Village was awarded grants from the EPA and SMC in the amount of $213,887 which will offset the total cost of the project.

Due to the proximity of trees to the top of the streambank, many trees will be impacted during the regrading of the banks. Many of the existing trees are mainly softwoods and in poor condition. The Engineering Division staff will take measures to save quality trees to the extent possible. The design was modified to save an approximate 30 foot buffer along Butterfield Road to reduce unappealing views. Also a number of larger quality trees were identified along the southwesterly project area and will be protected and enhanced using best forestry management practices.

Questions? Contact Engineering Tech Tom Brettmann 847-918-3591 or TomB@vhills.org

December 12, 2009

Dick’s Sporting Goods - Hawthorn Hills Fashion Square, 700 N. Milwaukee

The Village Board, based on the recommendation of the Zoning Board of Appeals, recommended approval of several variations to allow façade renovations and new signage on the building and property. The new store will be located in the space formally occupied by Wick’s Furniture.

The building renovation would include construction of entrance canopies on the north and east facades of the tenant frontage. The design of the canopies would include a metal front with masonry columns. The requested variation was to allow the height to be 8’-4” taller than the maximum permitted height of 35’-0”.

The petitioner also requested variations from the Sign Code for two wall signs and for two new ground mounted signs that would replace the existing monuments located at the shopping center entrances on Townline Road and Milwaukee Avenue. The sign would provide greater visibility from Milwaukee Avenue and Townline Road.

Wall Sign: The proposed wall signs would be located on the new entrance canopies for Dicks Sporting Goods. The variation allowed each signs to be 363 square feet.

Ground Mounted Signs: The proposed variation for the ground mounted signs would allow five tenants to be displayed on a sign that is 24’-0” tall and 319.92 square feet in size.

Good News - Building Plans for the news store were delivered to the Building Division on Wednesday 12/16. Interior renovation will likely begin in late January or early February. The store is projected to open in mid to late summer 2010.

Questions? Contact Building Commissioner Michael Atkinson 847-918-3548 or mikeat@vhills.org

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December 9, 2009
VILLAGE PENSIONS DISCUSSIONS WITH NORTHWEST MUNICIPAL CONFERENCE

The Village of Vernon Hills has been discussing and sending out information on pension issues to our residents. The big one for Vernon Hills as with most communities is public safety in our case Police Pension. Also addressed was IMRF. We have held a number of budget meetings in the past several months with one of the topics being supplemental funding for the Police Pension. This was also a topic in several newsletter articles on the budget as well as newspaper articles. Vernon Hills publicly discussed pensions initially on March 4, 2009 with our actuary, investment counselor, Police Pension Board members and Treasurer leading the discussion before our Village Board. We had a spirited discussion at that time regarding a proposal to transfer money from our General Fund to the Police Pension in the amount of $1M. The Village Board did not approve the transfer and asked the Treasurer to go back to review the numbers again.

We continued to discuss the Police Pension fund on April 23, 2009; May 5, 2009; July 7, 2009; August 4, 2009 and most recently on October 31, 2009 at a special Board meeting to discuss the Budget. It was pointed out at a number of these meetings the recurrent theme that the change from 35 to 30 years early in the decade cost considerable more than anyone had predicted. Secondly the losses in the equity markets and finally the aging of the workforce. Questions and comments by the Village Board consisted of many of the same questions asked by elected officials throughout the State. How did we get into this mess? Can we change the contribution for employees? How are we going to pay for this when our residents and business are struggling? Is someone exploring alternatives?

We also discussed the issue of pensions and the habit of the Legislature enhancing benefits with Senator Link, former Rep Ryg and Rep. Carol Sente. In a meeting with Carol and a number of Managers one of our priorities was doing no further harm to municipal budgets with pension enhancements and going to the next step of exploring some of the same ideas for public safety pensions, mentioned but not pursued to date with State pensions. As you have advocated those ideas include increased contributions for employees, a less costly plan structure for new hires, and a change in the amortization schedule. For more information email MikeA@vhills.org or LarryN@vhills.org

December 4, 2009
Solid Waste Billing/Recycling

The President and Village Board have met several times to discuss changes to the budget for this year, May 1, 2009 to April 30, 2010. This effort was to reduce the expenses as a result of the reduction in revenue receipts in sales, income, and utility taxes. As with many municipalities, we are experiencing the downward pressure on revenues from the economy and have made adjustments well over $1M in reduced expenses.

In addition to these expense reductions, the Village Board has also ended the subsidy for recycling, which has been part of our program since the early 1990s. The end of the subsidy, effective February 1, 2010, will be reflected on your Veolia invoice for solid waste services. The first invoice will be for February 1, 2010 to April 30, 2010. The rate for that billing will be $3.90 per month for a 65 gallon toter and $3.80 per month for a 35 gallon toter as outlined in the Village’s franchise agreement with Veolia. On the bill, a three month period for a 65 gallon toter service is $11.70 and a 35 gallon toter service is $11.40. Recycling costs will be added to the invoice current customers receive. The subsidy for recycling was paid through the Village general fund budget and the cost was approximately $348,000 per year. Recycling is mandatory in Vernon Hills for attached and detached single family residences.

If you should have questions regarding billing, please contact Veolia at (847)623-3870. If you have questions on information concerning this change, please contact Michael Allison at (847)918-3540 or mikea@vhills.org .

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