HomeMy WebLinkAbout01/16/1985 FC mintuesMINUTES
FINANCE COMMISSION
JANUARY 16, 1985
I Roll Call
Village Manager Terrance Burghard called the meeting to order at 7:45 P.M.
Commissioners present were Paul Davies, Tom Pekras and Ann Smilanic. Also
present were Village Manager Terrance Burghard and Finance Director David Jepson.
II Auditor's Management Letter
Finance Director David Jepson explained that one of the valuable features of
the annual audit is a separate report recommending improvements to the Village's
system of internal control. During the course of the audit field work, the
auditor not only reviews policies and procedures, but also observes and tests
accounting transactions to verify that the policies and procedures are being
adhered to. At the conclusion of the audit, the auditors make recommendations
for improvements which are included in a separate report called a Management
Letter.
The Management Letter for the year ended April 30, 1984 reported that all prior
year findings had been satisfactorily resolved. There were six findings in the
current report. Each member was supplied with a copy of the report and a memo
identifying the recommended action to correct the findings. Finance Director
Jepson then reviewed each finding and the actions that have been recommended.
Commissioner Smilanic commented that the actions were appropriate and
Commissioners Davies and Pekras concurred. Commissioner Pekras commented that
he was pleased that the findings were not material in nature. It was agreed
that the actions that have been taken will improve the Finance Department.
III 1985/86 Budget
Village Manager Terrance Burghard introduced the 1985/86 budget to the
Commissioners. He gave a brief overview pointing out the following highlights:
The 1985/86 budget of $23,785,510 represents a 5.7% increase
over the 1984/85 budget of $22,485,455. The reasons for the
increase include: 1) approximately $2 million increase for
the acquisition of Lake Michigan water; 2) estimated salary
increases of $225,000; 3) increased insurance cost of $200,000;
4) an accelerated paving program of $150,000 more than 1984/85;
and 5) an increase in the CDBG commercial and multi -family
rehab program of $106,000.
Additionally, Mr. Burghard stated that the 1985 tax levy is
expected to be less than the proposed 1984 levy (before abate-
ments) and the tax rate will be $.44 less than in 1975/76.
Sales tax revenue is expected to increase to $4,300,000. Also,
the General Fund will expend approximately $200,000 of its
beginning cash balance in 1985/86, in an attempt to level out
tax levies and avoid building up excess funds.
There are no increases in the number of full-time positions;
however, there will be a realignment of certain positions. Again,
there will be 8 less full time employees in 1985/86 than in 1977/78.
Mr. Burghard stated that the Village Board will hold public hearings on the budget
on live Cable TV. He indicated that it would be beneficial if the Commissioners
would have their review for specific sections prior to the public hearings. It
was the consensus of the Commissioners that Wednesday was the best night for
their review meeting. Accordingly, the following dates for the Finance Commission
review were established:
1/23/85 Revenues, Administration and Management
Services presentations
2/6/85 Community Development, Human Services and
Other Agency presentations
2/20/85 Public Works Department presentation
3/6/85 Fire Department, Police Department presentations
3/20/85 Final review and recommendations
All meeting will begin at 7:30 P.M. and will be held in the
Village Hall.
IV Adjournment
There being no further business, the meeting was adjourned at 8:50 P.M.
Respectfully Submitted
9e.~
David C. Jepson
Firector of Finance