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HomeMy WebLinkAbout10/10/1979 FC MinutesVillage of Mount Prospect 100 S. Emerson Mount Prospect, Illinois 60056 COMMITTEE REPORT TO: Mayor & Board of Trustees FROM: Trustee Ed Miller, Chairman, Finance Committee SUBJECT: Finance Committee Meeting 10-10-79 DATE: October 22, 1969 The meeting was called to order in the Trustees' Room of the Village Hall at 8 P.M. by Chairman Miller. Present at meeting were Trustees Wattenberg and Richardson Village Manager Burghard; Director of Finance Jesse; Mr.. Irwin Lyons and Mr. Laurence Salasche, both auditors with Lester Witte & Company.. The meeting was covered by the print media. 1978-79 Audit: At the suggestion of the Chairman, the representatives of Lester Witte & Company went through the financial statements as prepared for the fiscal year 1978-79 audit. They also reviewed the Management Letter and the improvements accomplished by the Finance staff in implementing suggestions of the last audit. Trustee Richardson inquired as to why Lester Witte could not make a comprehensive statement about the,audit of all the Village funds and why there was the generalized statement excluding some 04,the muni- cipality's older special assessment funds. Mr. Salasche responded that these special assessments go back to the 192O's and 1930's when there were significant defaults and an absence of good record keeping. It would not be beneficial for the auditors or the municipality to expend the time and money to try to recreate all the necessary records for a marginal improvement in_,the audit. These kinds of statements about the old special assessment accounts are common'to most municipali- ties. - Trustee Wattenberg inquired as to whether or not the relative accuracy of the budgetary expenditure and revenue estimates was due to'good budgeting or good management. The auditors indicated that they could not express an opinion but only show what the numbers are in actuality. In expressing some elements of the Management Letter, the auditors pointed out that there is room for improvement in accounting for the sale of vehicle licenses. For instance, it would be better for the Village to assign blocs of numbers to the various institutions that sell our vehicle licenses so that we would always know at any given time exactly how many licenses have been sold, and properly account for those that are either destroyed, invalidated, or trans replacement stickers. Mr. Jesse pointed out that in the current practice of reserving vehicle sticker numbers there is some difficulty in fully following the auditors' recommendations. There was some general dis- cussion on the part of the Committee to consider whether or not an extra fee should be charged for those people who reserve vehicle Finance Committee Meeting 10-10-79 Page 2. license numbers. Mr. Jesse estimated that there are approximately 100 vehicle license stickers reserved. Mr. Richardson inquired as to whether or not the transfers from Water & Sewer funds to the General fund are being kept uptodate, and the auditors recommended that this be adjusted anually, and Mr. Jesse responded that this was in fact now being done. The auditors pointed out that in one of the special assessment funds we were running a deficit and they were not sure how that deficit occurred several years ago; however, they indicated that the tax levy should be kept current to avoid the deficit. The auditors also pointed out that these reports are still tentative at this time inasmuch as one of the attorneys representing the Village and the Police Department in a Civil - Rights violation case has not as yet submitted his final opinion. The Committee asked the Village Manager to have the attorney submit his opinion on a timely basis and that, all things considered, the audit should be on the agenda at the next available Village Board meeting. Budget Process: The Village Manager gave a brief presentation to the Finance Committee members demonstrating alternative ways they might initiate the priority setting phase of the forthcoming budget. The Manager indicated that the system could start with a proposal from the Village Manager indicating what were-, in his opinion, the major issues and priorities facing the community. The Board members and staff could then evaluate those priorites and make a final determination. As another alternative, questionnaires could be developed for the Board and the staff and through completion of those questionnaires, a priority and problem schedule could be developed. Following the presentation of the Village Manager, a general discussion ensued, concluding that the questionnaire method could be workable as long as there was sufficient time to discuss in detail the individual opinions. regarding various priorities and problems. It was also the opinion of the Committee that as broad an input as possible should be developed for the questionnaire, and that the meetings will have to be held according to the Public Meetings Act in open sessions. Subsequent to the discussion, the Committee recommended that the Village Manager prepare an initial proposal and that it be submitted to the Board members and the staff. Additionally, a questionnaire that would allow for some open-ended comments by Board members would be developed and the questionnaire would be distributed to the Board, the staff, and the advisory Boards and Commissions. Upon return of those questionnaires to the Village Manager, a tabulation would be made and the Board would attempt to meet on two Saturdays at a location away from the Village Hall for discussion purposes. The Committee stressed that it was important to have sufficient face to face discussion between the staff and the Board in developing the priorities. Subsequent to those discussions, the administration would prepare the final budget document. Finance Committee Meeting 10-10-79 Attorney Fees: Page 3. The Village Manager presented a quarterly report outlining the Village's legal expenses for May, June and July. The report 'showed that in 1979 the Village expended $15,344.96 in May; $15,606.9'2 in June; and $17,209.70 in July. The comparable figures of direct expenses for 1978 were May, $9,830.04; June, $7,214.35; and July, $12,229.28. The Village Manager pointed out in looking at the July figures, however, the Board should add roughly 15% on topy of that to cover the fringe benefit and retirement costs that were provided to the employees. The Committee concluded that one of the major expenses in this fiscal year is the MHDC vs. Arlington Heights case which has cost in the first three months slightly in excess of $15,000. The Citizens Utility rate case intervention has cost $4,300. These expenses are at the direction of the Board and should not be recurring expenses. The Committee accepted the report and suggested that the Manager keep the Committee posted on legal expenses as they occur. Review of Charge Sheet: The Committee Chairman reviewed the charge sheet and discussed with the Committee and the staff the need, in his opinion, to improve the financial reporting of the Village and the finance statements as presented to the Board with the bills payable. After some general discussion, the Committee concluded the administration should seek ways to improve the financial reporting format. The meeting was adjourned at 10:03 p.m. Edward J. Miller Chairman msw