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HomeMy WebLinkAbout01/23/1985 FC minutesMINUTES OF THE MOUNT PROSPECT FINANCE COMMISSION JANUARY 23, 1985 I. ROLL CALL The meeting was called to order at 7:30 P.M. by Village Manager Terrance L. Burghard. Commissioners present: Also present: II. BUDGET OVERVIEW Richard Bachhuber Paul Davies Newt Hallman Maxine Holderried Thomas J. Pekras Ann Smilanic Terrance L. Burghard, Village Manager David C. Jepson, Finance Director Village Manager Burghard presented an overview of the 1985/86 budget. The following points were emphasized: 1. The 1985/86 budget of $23,785,510 is 5.8% higher than the 1984/85 budget of $22,485,445. Increases include the following: Lake Michigan Water $2,000,000 Insurance Costs 200,000 Street Paving Program 150,000 C.D.B.G. Rehabilitation Program 100,000 Village/District 214 Home Project 70,000 Coupled with the above increases are decreases in Capital Expenditures for water system improvements, sewer rehabilitation, computer-aided dispatch, and telephone equipment. Additional decreases are due to the re -organization of the Health Division. 2. There is no increase in the number of full-time personnel in the 1985/86 budget. There were 240 full-time in 1984/85 and the same number is proposed in 1985/86. However, there is a recommendation for realignment of positions. With the consolidation of the Health Division with Code Enforcement, one secretarial position was eliminated and the position of Health Director will not be filled. One full-time clerical position in the Police Department was eliminated and replaced by two part-time positions. One full-time position previously assigned to Community Development (Special Projects Assistant to Village Manager) has been eliminated. The full-time positions mentioned above have been replaced with an Administration Secretary for the Cable Co-ordinator, a Programmer/Computer Operator in Finance, a maintenance worker in Water, and an Administrative Aide in Public Works. Finance Commission Minutes January 23, 1985 Page 2 of 3 Overall, the full-time equivalent positions increased from 273.8 to 275.7, however it was pointed out that the Village will have 8 less full-time employees in 1985/86 than in 1977/78. 3. There are no new fees or proposed fee increases, and the proposed 1985 tax levy will be $53,000 less than was requested in 1984 (before abatements). The tax rate is projected to be $.94 compared to a 1983 rate of $1.02 and a 1978 rate of $1.39. The Village Manager concluded by stating the 1985/86 budget is a hold -the -line budget. III. REVENUE OVERVIEW Finance Director David Jepson commented on the various revenue sources that will fund the 1985/86 budget. For the first time, sales tax receipts will be the greatest single source of revenue to finance the budget. Sales tax receipts are expected to produce $4,300,000, or 18% of the total budget. Other major sources of revenue are: property taxes; other taxes (State Income Tax and Motor Fuel Tax); fees; grants; service changes; special service area taxes; investment income; and, available fund balances. Mr. Jepson compared individual sources for 1984/85 and 1985/86 and the reasons for the changes. It was pointed out that property taxes are budgeted upon anticipated receipts and not on the tax levy. For example, property tax receipts in the 1985/86 budget will be primarily from the 1984 levy. The full effect of the proposed 1985 levy will not be realized until the 1986/87 budget. Additionally, investment income is expected to total $2,618,200 in 1985/86 with $1,900,000 earned in the Police and Firemens' Pension Funds. IV. GENERAL DISCUSSION Commission members asked questions regarding sales tax allocations and the business climate in Mount Prospect. General satisfaction was expressed with the Village's efforts to maintain the strong sales tax base. Additional discussion centered on property tax rates and the re -allocation of property tax dollars in the proposed 1985 levy. V. PUBLIC REPRESENTATION AND VILLAGE ADMINISTRATION Village Manager Burghard explained that these two areas of the budget represent only 2.6% of the total budget. Included in this total is an amount for salary increases for all departments except Public Works. Mr. Burghard pointed out that the total amount is included in this section of the budget and will be redistributed to various departments after the Finance Commission Minutes January 23, 1985 Page 3 of 3 public hearings and adoption by the Board. One additional full-time employee in the Cable T.V. Program is recommended in the budget. The purpose and scope of the Cable T.V. Program was discussed by Commissioners. Mr. Burghard summarized by stating that it is new area and the Village is attempting to take advantage of this technology as a means of bringing information on the activities of local government to the residents of Mount Prospect. VI. MANAGEMENT SERVICES Mr. Jepson reviewed Management Services which includes the Finance Department, the Village Clerk's Office and Risk Management, the fund used to account for the Village's self- insurance program. Eleven different programs are included with insurance costs accounting for 2/3 of the total amount budgeted for this area. Attached is a summary of a schedule of net insurance costs that was distributed to Commission members. A considerable amount of discussion followed regarding the Village's Insurance Programs. It was pointed out by Mr. Jepson that options to the current medical plan are being investigated, and a report will be prepared for the Village Board prior to the renewal of the existing plan. There has been a re -organization of the Finance Department and the Village Clerk's Office recently. The Village Clerk has moved into a new office located on the first floor of the Village Hall and has been assigned the supervision of Customer Services. In the 1985/86 budget one of the employees in the Clerk's Office has been transferred to Customer Services. Additionally, two part-time positions have been eliminated and replaced by a Programmer/Computer Operator in Data Processing. Capital expenditures include a word processor, a check signer, a micro -computer which will double as a data entry terminal, and a provision for some additional telephone equipment. VII. GENERAL DISCUSSION The Commissioners expressed satisfaction with the 1985/86 budget and the information that had been provided. VIII.ADJOURNEMNT. There being no further business, the meeting was adjourned at 9:40 P.M. David C. Jepson Director of Finance DCJ/caf