Loading...
HomeMy WebLinkAbout02/09/1989 FC minutesMINUTES OF THE MEETING FINANCE COMMISSION FEBRUARY 9, 1989 I Call to Order The meetinq was called to order at 7:30 p.m. Commission members present were Richard Bachhuber, Tom Pekras, Ann Smilanic, Newt Hallman and Paul Davies. Also present were Village Manager John Fulton Dixon, Finance Director David Jepson and Assistant Finance Director Don Mazza. Trustee George Van Geem arrived at 7:45 p.m. Future meetings were set for February 23, March 9 and March 23. II Overview of the Budget Village Manager John Fulton Dixon presented an overview of the 89/90 Village budqet. Mr. Dixon began by mentioning the financial overview by DCCA that found an expanding revenue base, stable tax rate, increasing fund balances, strong liquidity ratio, moderate debt level and brisk building activities. The report was very favorable to the Village indicating a healthy, growing financial condition. Mr. Dixon then mentioned the several awards that the Village has received over the last 12 months. While the budget recommends the continuance of the programs developed over the past several years, Mr. Dixon emphasized the "new initiatives" in the budget in the Police, Fire, Streets and Recycling areas. The gross budget is proposed to be $32,230,000, a 7.B' decrease from last year's $34,965,000. The General Fund is balanced. It is shown that the $70,000 difference between revenues and expenditures will be made up by healthier revenues in the current fiscal year. Another significant portion of the budget concerns the recommended changes in personnel levels. The recommendation of 13.5 additional full-time equivalent positions would bring the Village workforce to 297.0 in 1989/90. Public Safety (six in Police, seven in Fire) would receive the lion's share of new people while a Production Assistant in the Cable Division and a Purchasing Agent in Finance wuld add to those departments. These new positions would be partially offset by reductions of 10 part-time positions throughout the various departments. Police personnel were tentatively approved in late 1988 by the Village Board and the new Fire personnel anticipates the takeover of the Elk Grove Township Fire Protection District. A significant increase in the Streets Resurfacing and Reconstruction programs puts the level of activity over the million dollar mark for the first time in recent history. $700,000 is earmarked for the General Resurfacing Program, $140,000 for Central Road, $175,000 for Reconstruction, $95,000 for Boxwood and $52,000 for Prospect Avenue. At this point, the Commission expressed its concern about the condition of Prospect Avenue suggesting that this street be included in the program in the near future. Mr. Dixon went on to discuss the proposed recycling program. It was explained that the pilot project included 1,000 homes and that the proceeds were split 55 percent to the Village and 45 percent to the vendor. The new program would cover all single-family residential units in the Village costing $1.11 per unit per month, or totaling $150,000 for the approximately 12,000 units for the year. Mr. Jepson pointed out that part of the costs of the program would be offset by $20,000 (stated in the budget) to $50,000 of proceeds. A brief discussion of the pros and cons of recycling ensued including the recycling center on Busse Road and the Northwest Municipal Conference Balefil Project near Bartlett. Expenditures Significant budget items were then presented by Mr. Dixon: Manager's Office, Cable Division - request for a production assistant to add to current program hours. The costs of the division are totally funded by Cable TV franchise fees which currently exceed expenditures by $20,000. Village Clerk's Office - because of significantly rising production and postage costs, it is proposed to reduce the six bi-monthly issues to four quarterly expanded issues. The costs would remain level with current expenditures. Ms. Smilanic expressed concern about whether or not this would affect timely dissemination of information. Human Services Division - Expenditures for Social Service Agencies are now included with this division. The funding level here is proposed to be $12,000 less because of the change in Northwest Community Services operations. Mr. Hallman asked about why the Village was picking up these costs versus the township or county. Mr. Van Geem explained that because of the knowledge of the local community by the Village, the money would be split with greater efficiency resulting in better placement of resources. Administration - It is proposed that the position of Assistant to Village Manager - Special Projects be changed to Assistant to Village Manager - Personnel. Mr. Dixon stated that personnel procurement and development was requiring more and more of a department director's time. A personnel professional would standardize and streamline the hiring process while dealing with ever increasing complex issues in the personnel area. Mr. Van Geem expressed the Village Board's concern over the issue. He asked the Commission to address each proposed position. A general discussion was made on the pros and cons of the need for a personnel professional. It then was agreed that the Commission would like to see the justification for all new personnel be quantified for each position. Finance Department - A Purchasing Agent is proposed to centralize and streamline the purchasing function. -2- Police Department - Besides the new personnel (three patrol officers, one investigative sergeant and two investigators), the other significant area is the purchase of a new fleet of patrol vehicles at a cost of $222,000. Mr. Bachhuber asked why the purchase could not be programmed on a staggered basis (half each year). Mr. Jepson explained that it was much easier to handle repairs if the entire fleet were replaced at the same time. This saves having to deal with different manufacturers and the necessary parts for the fleet. He also explained that other programmed expenses were made in off years, thereby maintaining a level outflow of cash in that area. Fire Department - The primary item in this budget is the proposed addition of six firefighters and one fire inspector in the 89/90 budget due mainly to the Elk Grove Township Rural Fire Protection District. It is anticipated that this takeover will occur in May 1990. Mr. Hallman expressed concern about how the number of new positions was calculated. Mr. Dixon explained that the shift of 24 on and 48 off required this number and discussed the situation of what happens when all three stations would respond to separate incidents at the same time. Mr. Jepson explained that the Fire Department will provide statistical justification for the new positions. The department also is proposing the elimination of an Administrative Aide position, replace it with a civilian clerical position and the elimination of three part-time positions. Capital Improvements - A $1.5 million bond issue is proposed to fund $500,000 of fire equipment (pumper and squad) and $1,000,000 for TIF Target Area F. $190,000 is also slated for improvements at Village Hall, Senior Center and Public Safety Building. Planning and Zoning - An aggressive facade program will be funded by both Community Development Block Grant funds and Village funds. Another CDBG grant will be used for handicapped accessibility at Village Hall and Senior Center. Community Development Block Grant funds will also be used for streets in Boxwood and Prospect Avenue as well as for asbestos removal in the Senior Center basement. Streets Division - Besides the almost $1.2 million reconstruction and resurfacing program ($240,000 more than 1988/89), $50,000 is allocated for Melas Park development after which maintenance will be taken over by the Park District. Water Division - A new booster pump is proposed to enable energy efficiency in the distribution system. $284,000 is allocated for watermain replacement and $155,000 for painting thetankin the downtown, area. IMRF Fund - Expenditures are expected to raise 170 due to an increase in funding requirements by the IMRF. -3- Revenues Finance Director Dave Jepson made some general budget comments before the discussion of revenues for the 89/90 fiscal year. The budget is the most important activity of the fiscal year with almost every management level employee involved to some extent. Overall expenditures are estimated at $32,230,000, up from approximately $15,000,000 ten years ago. Assessed valuation is estimated at $655,000,000 versus $287,000,000 ten years ago, an increase of 1280. The Village tax rate, $1.07 in 1979, is estimated to be $1.05 for 1988 and should remain the same for 1989. The Commission then had a general discussion of level tax rates versus increasing assessed valuations. Mr. Jepson then pointed out that while assessed valuations did bring increased tax revenues, the Village was attemping to maintain a stable tax rate. New revenue sources such as the Food and Beverage Tax, Real Estate Transfer Tax and Ambulance Service Fee were examples of how the Village was trying to keep property taxes as low as possible while continuing to meet the needs of the Village. Mr. Jepson stated that the budget was balanced and that fund balances will go up approximately $375,000 due to the reserve of a portion of the proposed bond issue not completely being drawn down. This prompted a general discussion about the need for the level of fund balances. Mr. Jepson said that the General Fund needed a minimum of 10, of budget and that 15' would be a greater level of comfort, especially when a bond issue is rated by Moody's or Standard & Poor's. These fund balances have an integral part in the rating process and could have significance of large proportions depending on the amount and length of payback. The fund balances also create a working cash base that is needed especially at this time of the year (January -February) when property tax revenues don't start rolling in until March. Sales tax revenue was a pleasant surprise due to the three anchor stores at Randhurst Mall and expansion at Mount Prospect Plaza. While sales taxes are up 9.50, a more moderate increase of So is projected for the new fiscal year. Building fees are expected to be up $200,000 due to the heaviest activity ever in the Village. 1989/90 is projected to be the second highest year of activity next to the current year. Mr. Bachhuber asked why revenues were not projected higher. Mr. Jepson explained the major projects from this year would be completed and less activity of major projects would make the difference. He also warned that this source of revenue would become less and less over the next several years because the Village is quickly becoming built out. Mr. Dixon was asked about revenues from the takeover of the Elk Grove Township Fire District. He responded by saying that gross revenues would be about $800,000. There was a spirited discussion of Historical Society funding, whether it should be Village sponsored or completely private funded. Mr. Jepson notedthat most expenses were offset by revenues. A water rate increase is proposed effective May 1 of $.20 per 1,000 gallons. This is due to additional costs, especially JAWA costs from the City of Chicago - up almost 14'. Mention was made by the Commission of the large portion of investment income. Mr. Jepson replied that $2,600,000 of the total was from Pension Fund investments. This enabled the Village to keep its property taxes down. For example, the Village has not levied any monies for the Fire Pension Fund since 1984. However, Mr. Jepson warned that the new positions in Public Safety will necessitate increased funding by the Village. -4- Finance Deoartment Budget Mr. Jepson began a brief discussion of the departmental budget. Besides the normal finance activities of accounting, water billing, data processing, accounts payable and payroll, risk management is also budgeted here. It is estimated that the benefits from the Village's self-insurance program have saved the Village significant sums of money over the years. For example, the average cost for the period of 1978 - 1983 was $350,000 and the cost since 1983 (the year of self-insurance) has averaged $300,000. Mr. Jepson estimated that commercial coverage at current levels would cost $900,000. He stated that the Village has $1.2 million set aside in the risk management fund. The Commission asked if he was comfortable at that level. Mr. Jepson replied that he would be more comfortable at $1.5 million. Overall, Finance Department expenditures are up $90,000. This is made up primarily by personal services, up $35,000 (purchasing agent), increased insurance costs of $20,000 and increased transfers of $20,000. Mr. Jepson explained the need for a purchasing agent. Of the total budget of $32,230,000, approximately $14,000,000 is for personal services. This leaves $17,000,000+ of services and supplies. If 1/4 of 10 of that total were saved, the savings would pay for the purchasing agent. A purchasing agent would enable the Village to standardize procedures and to take more advantage of bulk purchases through Northwest Municipal Conference or the State of Illinois. It would also free up professional staff in all departments to better devote their time to the activities which best serve the department and public. Mr. Hallman asked if an outside consultant could be hired to set up the procedures letting the departments continue to do their own purchasing, thereby negating the need for the purchasing agent. Mr. Jepson replied that the savings generated by the purchasing agent could be quantified. A discussion by the Commission gave the consensus that the purchasing agent was justified. Trustee Van Geem requested job descriptions of the Assistant to the Village Manager/Personnel and the Purchasing Agent. Audit Proposal Mr. Jepson stated that the Village Board asked the Finance Commission to discuss the recommendation of auditing firms for the Village. He gave a brief outline of the Request for Proposal process, the pros and cons of the firms in question and the discussion at the Village Board meeting on February 7, 1989. Mr. Van Geem was asked for his opinion on firms. He replied that a big eight firm such as Touche Ross would be beneficial because of its research staff being able to interpret new regulations such as Government Accounting Standards Board pronouncements and IRS Section 89 rules concerning employee benefit plans. After considerable discussion by all Commission members, it was recommended by the Commission by a 3-2 vote to accept the Karrison & Byrne proposal for a one year period. Adjournment followed at 11;00 p.m. Re 'lza,Ass ull mitted i. Don is/� Fin cna a Director f JOB DESCRIPTION: ASSISTANT TO THE VILLAGE MANAGER/PERSONNEL DIRECTION: Under general direction; performs work of considerable difficulty in public personnel and administration; performs related work as required. EXAMPLES OF DUTIES: Directs a wide variety of professional personnel functions, such as classification and compensation; training and development; recruitment and examination, and employee relations; recommends the establishment, abolition and consolidation of classes; serves as an assistant spokesperson in bargaining with employee groups annually on matters concerning salary benefits and working conditions; establishes, updates and administers classification and compensation system; conducts recruitment and examination activities; prepares newspaper classified advertisements and other recruitment materials; secure new sources for publicizing vacancies; reviews qualifications of candidates; prepares or supervises the preparation of examinations; rates examinations; determines correct answers, prepares key answer sheets, recommends examination weights and passing points; coordinates and participates in in-service and out -service training activities; develops and prepares training materials and aids; establishes and maintains basic training records; evaluates effectiveness of training programs; develops proposals for salary and benefit packages and reduces approved agreement to written form; responsible for ensuring terms of the agreement are carried out. May conduct a variety of specialized programs such as in the employee relations or affirmative action fields; represents Village at hearings held by State agencies and Courts on Workers' Compensation and unemployment; reviews pension requests; establishes and maintains a system of performance evaluation, exit interviews, suggestion and awards programs; administers grievance procedures; counsels employees; assists in formulation and review of annual budget; coordinates administrative projects assigned by Village Manager; acts as chairman of Village Safety Committee and member of Village Insurance Committee. MINIMUM QUALIFICATIONS: Training and Experience: Completion of college level course work for a major in psychology, personnel administration, public administration or a related field; and two years of professional public personnel experience. Knowledge and Skills: Considerable knowledge of standard principles, practices, methods and techniques of personnel administration; good knowledge of statistical concepts and methods; good knowledge of recent developments, current literature and sources of information in public personnel management; considerable knowledge of program and practices of Village personnel policies. Considerable skill in the analysis of Village or departmental personnel requirements and structuring of required programs; working skill in coordinating employee relations functions; working skill in promoting the Village as a desirable employer; considerable skill in analyzing facts and exercising sound judgment in arriving at conclusions; considerable skill in keeping a variety of records and in preparing and submitting reports; considerable skill in expressing oneself clearly and concisely, verbally and in writing. Village of Mount Prospect 2/89 VILLAGE OF MOUNT PROSPECT Position of Purchasing Agent Duties and Responsibilities The Purchasing Agent is responsible for administering a centalized Purchasing Activity in accordance with established legal requirements and Village Policy. The activities of the Purchasing Agent include: - Ensuring that all Village Departments are provided with operating supplies, services and equipment in a timely manner. - Prepares bid specifications, evaluates bids and monitors all contracts, bonds and other purchasing documents. - Meets with vendors and salespeople to identify new products and/or services. - Obtains verbal and written price quotations. - Maintains bid files and purchasing files. - Responsible for standardization of supplies and equipment. - Responsible for maintaining a current record of all fixed assets owned by the Village. The Purchasing Agent operates within the Finance Department and reports to the Director of Finance. Qualifications - Bachelor's degree in business or public administration or related field. - Minimum of three years of professional purchasing experience. - Considerable knowledge of purchasing methods and procedures. - Good knowledge of modern business practices and procedures. - Good knowledge of State and Federal legal requirements governing purchasing activities. - Excellent oral and written communication skills. Examples of Purchasing Activities The Purchasing Agent administers the centralized purchasing function for all Village Departments. The position works closely with representatives from the operating depart- ments to identify specific supplies, equipment and/or services that are required. The Purchasing Agent, in conjunction with user departments, prepares bid specifications, upon authorization of advertising for bids by the Village Board. Upon determining that the bid specifications are clear, concise and complete, the Purchasing Agent develops the bid package and leqal notice of the bid for publication in a local newspaper. The Purchasing Agent may meet with interested company representatives and/or sales- persons when required to explain the bid specifications and answer any questions that may be raised. The position establishes the bid opening schedule and presides over the formal opening of bids including the review of each bid, to insure for accuracy and compliance with the bid specifications. The Purchasing Agent reviews all bids and in conjunction with the respective department and makes a recommendation to award a contract to the bidder which will provide the product and/or service to the Village in the most cost effective and efficient manner. The position also reviews the budget and indicates in the recommendation whether there are adequate funds for the purchase. Upon the award of a contract by the Village Board, the Purchasing Agent prepares the necessary purchase orders and appropriate corres- pondence. Throughout the process, the Purchasing Agent monitors all contracts, bonds, certificates and other documents to ensure that the purchase follows established policies and procedures. The Purchasing Agent approves all purchase requisitions, after assuring adequate funds are available, and determines the best means of procuring the goods or services in accordance with Village purchasing procedures. In addition, the Purchasing Agent prepares written and verbal price quotations upoc. receipt of a purchase requisition authorized by the Department Head. The Purchasing Agent receives and processes all price quotations and reviews all relevant information to determine the optimal purchase based on cost, quality, delivery, service and design. The position then awards the purchase order to the best supplier. The Purchasing Agent meets with vendors and salespeople to identify new products and/or services which might be of use to the Village departments. The Purchasing Agent directs useful information pertaining to products and services to appropriate departments. The Purchasing Agent also communicates with vendors and suppliers on matters pertaining to price, terms, delivery and other information relevant to purchasing. The Purchasing Agent establishes and maintains bid and quotation files, purchase requisition files, trade name files, commodity files and all records related to the purchasing function. In addition, a library of catalogues is maintained and updated to assist operating departments in the review of product information. The Purchasing Agent meets with departmental representatives on a periodic basis to review the purchasing policy and procedures. Based on these meetings and changing economic and market conditions, the Purchasing Agent analyzes and recommends revisions in the purchasing policy and/or procedures. The Purchasing Agent is responsible for handling disputes with vendors regarding all aspects of the purchase contract. The Purchasing Agent also makes the necessary arrangements for the disposal of all surplus property and equipment. In addition, the Purchasing Agent is responsible for the standardization of supplies and equipment that are purchased by all departments. A central supply system is maintained for various items by the Purchasing Office. The Purchasing Agent is responsible for maintaining inventories and records of disbursement.