HomeMy WebLinkAbout2.1 Approval of the Joint Village Board and Finance Commission Workshop Minutes of 04/23/20195/30/2019
Agenda Item Details
Meeting
Category
Subject
Access
Type
Public Content
Information
BoardDocs® Pro
r I III z:rii'll
2.1 APPROVAL OF THE JOINT VILLAGE BOARD AND FINANCE COMMISSION WORKSHOP
MINUTES OF APRIL 23, 2019
Alternatives
1.
2. Action at discretion of Village Board.
Staff Recommendation
4-23-2019—Joint—VB—FC—Workshop—Minutes.pdf (217 KB)
Administrative Content
Executive Content
https://go.boarddocs.com/il/vomp/Board.nsf/Private?open&login#
amount, Prose
JOINT VILLAGE BOARD AND FINANCE COMMISSION
WORKSHOP MINUTES
April 23, 2019 -
3rd Floor, Village Board Room
Village Hall, 50 S. Emerson Street
1. CALL TO ORDER
Meeting called to order at 6:04 P.M.
1.1. Roll Call
Village Board Members present: Arlene Juracek, William Grossi, Paul Hoefert, Richard
Rogers, Colleen Saccotelli, Michael Zadel
Finance Commission Members Present:
John Kellerhals, Pam Bazan, Trisha Chokshi, Vince Grochocinski, Don Ocwieja, Thomas
Pekras.
2. CITIZENS TO BE HEARD
None.
3. 2019 FIRST QUARTER REVIEW
3.1 2019 First Quarter Review —Joint Workshop with Village Board and Finance
Commission
Deputy Director of Finance Lynn Jarog presented the 2018 Preliminary Year -End
Results, 2019 First Quarter Review, 2019 Preliminary Property Tax Levy and a
brief outlook on State Budgetary Impacts.
Ms. Jarog stated 2018 preliminary results for the total budget are positive with
revenues exceeding budget and expenditures below budget. Ms. Jarog stated
decline in the markets during the 4t" Quarter resulted in a negative return for
investment portfolios to Public Safety Pensions. Ms. Jarog stated the General
Fund Budget exceeded original budget by $623,000. The actual expenses were
$55.3 million, which is a savings $1.8 million from the amended budget.
Staff Drovided the followina in resDonse to auestions from the Villaae Board:
• $812,091 in 2019 and $792,000 in 2020 were schedule funds on hand
payments for the 2018B bonds. Instead, these payments were made in
2018. This reduces the Village's need to use capitalized interest for debt
service.
• Sale tax receipts are continuing to come in strong and intergovernmental
revenues as a whole are up.
• The structural operating budget deficit that was present in 2010 was
addressed by Administration with making the decision to rebalance the
budget.
Committee of the Whole Page 1 of 3 4/23/19
CI
Ms. Jarog stated there has been one amendment to the 2019 budget to date to
increase total budgeted expenses from $162.5 million to $169.4 million primarily
for carry-over items across multiple funds. The General Fund was also amended
to adjust for Community Investment Program carry-over items such as Intersection
Studies, Software and Sidewalk Improvements. Currently, the budget reflects a
shortfall of $1.8 million on total revenues of $56.1 million, which includes a planned
drawdown on reserves for a capital transfer and pension subsidy. Ms. Jarog added
that savings to budgeted expenses by year-end is expected.
Staff provided the following in response to questions from the Village Board:
• The 38.8% fund balance is just for operating expenses. 37.1 % fund balance
is net of the planned drawdowns.
• These are preliminary numbers, which will be refined for the mid -year
review. Currently, tax receipts are coming in as expected.
• In 2019, there was a scheduled transfer to the debt service fund for the
Police and Fire Bond Issue (2018B). Staff adjusted the 2019 Budget with
taking in account the transfer.
Ms. Jarog stated the annual tax levy funds debt service, police and fire pension
obligations and public safety. The 2019 Revised Preliminary Property Tax Levy
totals $19,887,949, which is an increase of $790,684 or 4.14%. Ms. Jarog added
the Series 2017 and 2018A Bonds are being fully abated using money from the
Tax Increment Financing and Water and Sewer Funds. Ms. Jarog stated a portion
of the Series 2018B Bonds relating to the purchase and construction of the Police
and Fire Buildings are being fully abated as planned using money from capitalized
interest and surplus funds. Ms. Jarog reviewed the Pension Funds subsides from
the General Fund to smooth the impact to the property tax levy. 2019 is the final
year of the subsidy for a total of $210,000.
Staff provided the following in response to questions from the Village Board:
• The $210,000 pension subside reduces the preliminary property tax levy to
4.14%.
• The debt service increase was scheduled prior to issuing the 2018B Bonds.
In addition, bond issues related to water and sewer improvements are
abated through the Water and Sewer Fund.
• There are funding concerns in the five-year forecast for the Street
Improvement Fund, Storm Water Improvement Fund and for mid-range
capital projects.
ANY OTHER BUSINESS
None
Committee of the Whole Page 2 of 3 4/23/19
5. ADJOURNMENT
The meeting adjourned at 7:10 p.m.
Alexander Bertolucci
Management Analyst
Committee of the Whole Page 3 of 3 4/23/19