Loading...
HomeMy WebLinkAbout10/29/2009 FC minutes FINANCE COMMISSION MM INUTES OF THE EETING O29,2009 CTOBER CC-VH OMMUNITY ENTER ILLAGE ALL I.CO ALL TO RDER The meeting was called to order at 7:03 p.m. Those present included Chairman Vince Grochocinski and Commissioners Pam Bazan, Wayne Gardner, John Kellerhals, Don Ocwieja and Tom Pekras. Also present were Village Manager Michael Janonis, Finance Director David Erb, Deputy Finance Director Lynn Jarog and Finance Administrative Assistant Lisa Burkemper. Commissioner Ann Smilanic was absent. II. AM PPROVAL OF INUTES There was a suggestion by Commissioner Tom Pekras to remove the word “that” from the first sentence of paragraph two on page three of the minutes of October 15, 2009. Commissioner Tom Pekras motioned to approve the minutes of October 15, 2009 as amended. Commissioner Wayne Gardner seconded the motion and the motion carried. III.RP2010VB EVIEW OF THE ROPOSED ILLAGE UDGET Finance Department Finance Director David Erb began his discussion on the Finance Department’s 2010 Proposed Budget by mentioning several accomplishments from 2009. He then went over the 2010 Objectives and the Proposed Budget Summary and Highlights. The Village received annual budget and audit awards from GFOA. In February 2009, $10 million in G.O. Bonds were issued for Phase I construction projects. The 2010-2014 CIP and five-year financial forecast was prepared and an ERP consultant was hired. The Finance Department established a debt service policy, created a new monthly treasurer’s report and prepared an RFP and selected a new Village auditor. Finance Department 2010 Objectives include continuing with the ERP system, sending out proposals for utility and vehicle license billing production services, conducting review of standing financial policies, submitting for budget and audit awards and preparing the 2011-2015 CIP. Mr. Erb presented the Finance Department’s Proposed 2010 Budget totaling $1,624,953; this represents an increase of 4.1% or $64,000. Mr. Erb stated bank processing fees increased by $6,300 and commodities including paper and supplies increased by $11,315. He added the 4.6% increase to wages and benefits is partially due to an increase in medical and IMRF costs. Non-Departmental Minutes of the Finance Commission Page 1 of 3 October 29, 2009 Community and Civic Services Finance Director David Erb stated the Community and Civic Services portion of the 2010 Proposed Budget totals $387,912, which is a decrease of 4.5%. The budgets for Community Groups and other programs include reductions of $12,600 and $4,250 for Sister Cities activities and holiday decorating respectively. Debt Service Debt Service Proposed 2010 Budget totals $2,325,880. This is an increase of $420,678 or 22.1%. The increase is due primarily to the Series 2009 G.O. Bonds. Mr. Erb mentioned the possibility of an advanced refunding of the Series 2001 G.O. Bonds. This refunding would reduce the 2009 levy by $292,000. Total Village and Library debt as of 12/31/09 will be $42,010,458. The portion of the debt attributed to the Library is $16,525,000. Pensions Mr. Erb stated the total Proposed Budget for pension expenses in 2010 is $6,410,400 which represents a 7.0% increase from the prior year. There is a 3% programmed increase for existing pensions. There was a discussion regarding the property tax levy increases associated with the police and fire pensions. There is a 45.2% or $2,252,337 increase from the previous year for the Police Pension and a 28.3% or $1,963,883 increase from the previous year for the Fire Pension projected for the 2009 levy. Insurance – Casualty & Property Finance Director Erb stated the total Proposed Budget for 2010 is $927,700 which represents a decrease of 4.1% from the prior year. Insurance – Life & Health Finance Director Erb stated the total Insurance – Life and Health Proposed Budget for 2010 is $5,925,898; this represents an increase of 3.9% from 2009. Estimated health insurance costs are $12,682 per employee. Library The Proposed 2010 Budget for the Library totals $9,715,689, which is an increase of 2.8% from the prior year. $1,600,000 or 16.8% of the Library budget is debt service. The proposed tax levy for the Library totals $8.8 million, which is an increase of 3.8%. Commissioner Wayne Gardner asked when the Village would know what the Police and Fire Pension levies will be for 2010. Mr. Erb said the Village will have preliminary figures by the end of January. Normally the Village receives the actual figures in May/June for the beginning of the budget process. Commissioner John Kellerhals asked when the commission would receive information related to the ERP project. Mr. Erb said information would be available in the next few months. Currently two vendors are being interviewed and site visits are scheduled in the next few weeks. There was a discussion on the ERP process and the timelines associated with the project. Administration Minutes of the Finance Commission Page 2 of 3 October 29, 2009 ssistant Village Manager Dave Strahl presented the 2010 Proposed Budget for Village Administration. Mr. Strahl outlined the changes to the divisions that fall under Village Administration from the previous year. The Manager’s Office budget decreased 10.53%, Public Representation decreased 1.1%, Human Resources decreased 27.5%, Information Technology decreased 13.3%, Public Information decreased 10%, Television Services increased 3% and the Clerk’s Office decreased .08%. Commissioner John Kellerhals asked if the web design project was moving forward. Mr. Strahl stated the project is moving forward with various activities occurring from now until Spring 2010. IV. C’R HAIRMANS EPORT There was nothing to report. V. FD’R INANCE IRECTORS EPORT There was nothing to report. VI. OB THER USINESS There was nothing to report. VII.NM:N5,2009 EXT EETING OVEMBER Commissioner Pam Bazan motioned to adjourn which Commissioner Wayne Gardner seconded. The meeting was adjourned at 8:30 p.m. The next meeting will be November 5, 2009. Respectfully submitted, Lisa Burkemper Administrative Assistant Finance Department Minutes of the Finance Commission Page 3 of 3 October 29, 2009