Oak Brook Board of Trustees Meeting of July 20, 2009

The meeting was called to order at 6:30PM. The video podcast is available at http://www.oakbrooktv.org/. Trustee Saiyed was absent. Al Knuth was the first resident comment. He supported the board’s cuts to balance the budget. Chuck Shemley noted the previous board had cut over $1M from the budget beginning nearly a year ago. The new board created a Citizen’s Finance Advisory Committee and Trustee Aktipis demanded the Village Manager find another $1.5M of cuts. He said that the Citizen’s Finance Advisory Committee should be allowed to do its work before more drastic cuts were made. He questioned whether there was some undisclosed reason for the urgency of the cuts. Mario Vescovi asked to have all Village employees’ salaries and benefits posted on the Village web site. He suggested following Mayor Daley’s lead and require new Village employees (except fire and police) to live in the Village. He said he had several neighbors in Fullersburg who would take jobs for the salaries being paid to current employees. Village Manager Niemeyer responded that comparative studies of Village pay to neighboring towns indicated they were just above the median for municipal government in the area. He stated the average salary was $72k per year and that the police and fire pension benefits were abnormally high to compensate for the stock market losses suffered last year. This was dictated by the state and the village had no control over it. Trustee Aktipis responded that the Finance committee was set up to look at long term issues and it was the responsibility of the new board to react to the crisis facing the village and after the closed meeting it would be revealed what cuts were being made. When they came out of closed session, Trustee Aktipis proposed $1.26M of staffing cuts from every department of the village except for the library. Trustee Zannis seconded and it was approved. Trustee Aktipis then proposed the Reduction in Force Policy, again with Trustee Zannis seconding and this passed. They adjourned with no comments from anyone. The cuts are detailed at http://www.oak-brook.org/documents/BudgetUpdate7-20-09.pdf/
The Doings article on this is at http://www.pioneerlocal.com/oakbrook/news/1678448,oak-brook-fired-072109-s1.article/

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AGENDA ITEM
Special Board Meeting
of
July 20, 2009

SUBJECT: Budget Update

FROM: David Niemeyer, Village Manager

BUDGET SOURCE/BUDGET IMPACT:

RECOMMENDED MOTION: To approve the Manager’s recommended reductions for
the 2009 budget and to approve the staffing reduction plan as recommended by the Village
Manager.

Background/History:

The board directed staff to develop $1.5 million in recurring, long term cuts at the June 15
meeting. In closed session on July 14th, staff presented a number of personnel cuts with various
dates when these positions would be eliminated. This includes making some positions currently
vacant into long term cuts. No additional cuts are assumed for the library until the consultant
complete their report. Also, we have developed additional cuts for the 2009 budget in addition to
the $1.3 million in budget reductions developed in March.

I have attached a revised worksheet showing the total savings from personnel reductions as a
result of recommendations. Included in this worksheet are 2 items that were given to the board
last week that were not eligible to be discussed in closed session. First, is requiring all 35 and
37.5 hours clerical positions to work 40 hours per week, effectively eliminating the straight time
overtime that they currently earn. This will save approximately $25,000 per year. Second, fire
department inspections will now be done on shift rather than special details, which will save
about $60,000 per year.

Below are the personnel reductions as recommended by the manager.


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Library:
At this point, while we have asked our consultant to find $300,000 in permanent cuts to the
library, we have not yet received a report from the Board, so this cut is not included in the total.

Administration/Clerk/Finance Department:
Deputy Village Clerk: Eliminate effective August 1st. Annual Savings: $84,848.

Records Management Clerk: Eliminate effective October 1. Annual Savings: $70,839.

Receptionist: Effective August 1st.Annual savings: $51,305.

Finance Director – Position left open until January 1st, need to refill at that point.
2009 Savings: $80,000.

Water Billing Clerk-Eliminate effective November 1, transfer clerk from Sports Core to do work.
Savings is in Sports Core, not general fund.

Add 3 part time employees, minute taker. Annual cost: $49,485.

Information Technology
IT Tech II: Position eliminated effective June 30th
Annual savings: $108,088.

Add outsource or part time IT person. Annual savings: $50,000.


Police:
Eliminate 2 full time dispatchers. Effective October 1st.Annual savings: $131,052.

Eliminate 2 full time records position. Effective August 1. Annual savings: $118,566.

Make Community Service Officer vacancy long term cut. Annual Savings: $33,910.

Make other full time dispatcher vacancy long-term cut. Annual savings: $63,289.

Make other part time dispatcher vacancy long-term cut. Annual savings: $35,319.

Add part time records clerk. Annual cost: $29,460.

Add 2 part time dispatchers: $70,000.

Fire:
Make Deputy Chief vacancy long term cut. Annual savings: $160,136.

Make vacant 2 firefighters/paramedic positions long term cut. Annual savings: $178,000.
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Do fire inspections on shift. Annual savings: $60,000.

Temporarily keep open 3rd Firefighter position for 3 months. 2009 Savings: $25,786.

Public Works/Engineering : (Infrastructure fund).
Eliminate Village Engineer position, combine public works/engineering department. Effective
October 1st. Also working with Community Development on combining permit process with
Community Development and Fire Dept. Annual Savings: $161,185.

(Water fund) Eliminate 1 public works employee effective February 1. Annual savings: $66,058.

Sports Core:
As shown on the attached worksheet, outsourcing of the B and T to Calihan Catering will save
the village $398,457 in personnel costs on an annual basis. Also one employee is being
transferred to the finance department. Also not shown on the sheet is the additional savings in
food supplies and other costs related to the operation of the clubhouse. However, this is also
offset by the fact that the village will still have approximately $100,000 in building, outside
maintenance related costs and debt service until 2012. Also, we will not receive 100% of the
revenue from B and T events but 10% of the food and beverage revenues plus a rental fee.

Our expectation at this point is that in the first year the Calihan contract will provide us with a
net increase in revenues compared to expenses of $50,000 compared to continuing to operate the
Clubhouse with village staff.

Changing all clerical hours to 40 hour work weeks. Annual estimated savings: $25,000.

In summary, I am recommending $1,778,954 in long term personnel related budget cuts to the
Village Board. However this is offset by additional costs for adding part timers and outsourcing
in IT and administration, which reduces the savings to $1,612,118. Also, to get the actual annual
budget savings, we must only include the projected increase in profit by outsourcing the
clubhouse, which is $50,000, rather than the total personnel cost savings related to outsourcing,
which is $321,405. Therefore, the actual annual budget savings from all of these cuts is
$1,275,702.

If the Board adopts my recommendation, we will be eliminating the full time equivalent (FTE) of
14.75 positions. (This does not include FTE reductions from the library study). We also
eliminated 6.5 positions beginning last August for a total of 21.25 positions in an 18 month
period. In July 2008 our total FTE’s were 180.75; in January 2010 the total would be 159.50
FTE’s under this proposal (excluding the Library).

Additional 2009 Budget Cuts

Attached is a worksheet with proposed cuts to reduce the 2009 budget. This includes $241,094 in
total training, capital and miscellaneous cuts and work force changes for 2009. However, this
includes several positions that were frozen in March, so the actual additional savings after
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miscellaneous expenditure reductions and personnel reductions in 2009 is $220,325, as is shown
on the attached sheet.


I would like to thank Sharon, Blaine, Eileen, and all the Department Directors for all of their
extra effort on this plan.

Recommendation:
Motion to approve staffing reduction plan as recommended by the Village Manager as well as
$1,275,702 in additional reductions to the 2009 budget (excluding the Library).

CC: Blaine Wing, Sharon Dangles