HomeMy WebLinkAbout04/27/1999 COW agenda COMMITTEE OF THE WHOLE
AGENDA
Meeting Location: Meeting Date and Time:
Mount Prospect Senior Center Tuesday, April 27, 1999
50 South Emerson Street 7:30 p.m.
I. CALL TO ORDER - ROLL CALL
Mayor Gerald L. Farley
Trustee George Clowes Trustee Richard Lohrstorfer
Trustee Timothy Corcoran Trustee Daniel Nocchi
Trustee Paul Hoefert Trustee Irvana Wilks
II. ACCEPTANCE OF MINUTES OF APRIL 14, 1999
III. CITIZENS TO BE HEARD
IV. FIRST QUARTER FINANCIAL REVIEW
In an effort to provide the Village Board with more opportunity to focus on the annual financial condition
of the Village, staff has initiated a First Quarter Financial Review session. The report prepared by
Finance Director Doug EIIsworth highlights and revenue and expenditure trends compared to the
budgeted amounts in the main operating and capital project funds after the first three months of 1999.
While it is often difficult to identify major deviations from the revenue/expenditure plan adopted through
the annual budget process, it does provide the opportunity for some initial insights and discussion.
V. 1999 BUDGET AMENDMENT #1
When the proposed Budget is put together, the management team must make educated guesses as
to which current year projects will be completed before year end and which projects need to be
rebudgeted. Since the proposed budget must be prepared well in advance, there are some projects
and major expenditures that we believe will be completed but, in fact, are not for one reason or
another. There were several projects and capital expenditures that were not completed or purchased
in 1995 that should be rebudgeted since the goods and services have already been ordered or
contracts let. All of these expenditures were originally budgeted for in 1995 and had adequate funds
leftover at year-end to cover these carry-over requests.
A proposed Ordinance amending the 1999 annual budged is attached for the Board's consideration.
VI. UPDATE ON VEHICLE REPLACEMENT FUND
For the last several years, the Village Board, Finance Commission and staff have focused on the
financial health of the Village's Vehicle Replacement Fund.
When the lease payment plan for vehicle replacement was instituted in 1990, there was no provision
made for the necessary "seed" money to start the Vehicle Replacement Fund out in a fully funded
condition. To do so would have required about $2.5 million in upfront cash. At the time, the Village
simply could not afford to allocate the required funds.
NOTE: ANY INDIVIDUAL WHO WOULD LIKE TO ATTEND THIS MEETING BUT BECAUSE OF A DISABILITY NEEDS SOME
ACCOMMODATION TO PARTICIPATE, SHOULD CONTACT THE VILLAGE MANAGER'S OFFICE AT '100 SOUTH
EMERSON, MOUNT PROSPECT, ILLINOIS 60056, 847/392-6000, EXTENSION 5327, TDD #.847/392-6064.
Beginning in 1998, a concerted effort was undertaken to reduce the unfunded liability of this critical
fund. Useful life projections for certain vehicles were extended and the strategy for the replacement
of pool cars was modified. Additionally, over $1.5 million in equity transfers were made to the Vehicle
Replacement Fund from other Village funds which had developed surpluses over time.
One of the goals established by Finance Director Doug EIIsworth in 1999 was a complete review of the
Vehicle Replacement Fund. As a result of Doug's review, a recommendation changing the
methodology for determining lease payments has been proposed. This change in methodology
represents a more accurate reflection of future costs for replacement vehicles. It also helps to reduce
the "paper" unfunded liability of the fund. In fact, based on all of the above actions, the current
estimated deficit in the Vehicle Replacement Fund has been reduced to approximately $145,000.
Doug EIIsworth will review the current condition of the fund and explain his proposed changes in
accounting methodology. If the Village Board agrees to these changes, we will have effectively dealt
with one of the major long-term funding issues previously identified during our long-range financial
forecast discussions.
VII. 1998 SALES TAX REVENUE BY BUSINESS TYPE
One of the goals Finance Director Doug EIIsworth set for this year was to engage in more trend
analysis of Village revenues. The Illinois Department of Revenue releases on an annual basis a Sales
Tax Report by standard industrial classification (business type). The attached memorandum from Mr.
EIIsworth compares Sales Tax receipts for 1997 and 1998. Overall, the Village's retail sales did very
well in 1998, increasing 5.7% over the previous year. Most business categories posted healthy gains,
with the exceptions being apparel and lumber/hardware stores.
Doug will be present to facilitate discussion and answer questions.
VIII. ILLINOIS METROPOLITAN INVESTMENT FUNDS (IMET)
The Illinois Metropolitan Investment Fund (IMET) was initiated in 1995 by area Finance Directors and
the five Chicagoland Councils of Government including the Northwest Municipal Conference. The goal
of IMET is to provide municipalities with a safe investment vehicle for funds not required to be spent
in the short term and which are available for investment and securities with average maturities greater
than those for Money Market Funds. The Investment Trust Fund actually began accepting deposits
in July of 1996.
Finance Director Doug EIIsworth has been monitoring the performance of this fund since its inception
and feels that it would be in Mount Prospect's best interest to add this investment vehicle to our current
array of investment options. Attached is background information regarding IMET as well as a current
copy of the Fund's Declaration of Trust.
Staff is seeking Village Board approval to initiate membership in IMET.
IX. MANAGER:S REPORT
X. ANY OTHER BUSINESS
Xl. ADJOURNMENT
CLOSED SESSION
LAND ACQUISITION:
5 ILCS 120/2 (c) (5) -"The purchase or lease of real property for the use of the public body, including meetings
held for the purpose of discussing whether a particular parcel should be acquired."
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