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HomeMy WebLinkAbout04/23/2019 Joint Village Board/Finance Commission Minutes 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 provided the following in response to questions from the Village 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 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. 4. 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