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HomeMy WebLinkAbout04/27/1999 COW minutes MINUTES COMMITTEE OF THE WHOLE APRIL 27, 1999 I. CALL TO ORDER Mayor Farley called the meeting to order at 7:34 p.m. Present at the meeting were: Trustees George CIowes, Richard Lohrstorfer and Daniel Nocchi. Trustee Paul Hoefert arrived at 7:55 p.m. Absent from the meeting were Trustees Timothy Corcoran and Irvana Wilks. Staff members present included Village Manager Michael Janonis, Assistant Village Manager David Strahl and Finance Director Doug EIIsworth. II, APPROVAL OF MINUTES Acceptance of Minutes of Apd114, 1999. Motion made by Trustee Nocchi and seconded by Trustee CIowes to approve the Minutes. Minutes were approved unanimously. III. CITIZENS TO BE HEARD None. IV. FIRST QUARTER FINANCIAL REVIEW Finance Director Doug EIIsworth stated this is a new item being brought to the Village Board. He said normally staff provides a six month financial update but he felt it would be helpful to the Board to provide this information on a quarterly basis. The numbers presented are through March 31, 1999, or 25% of the fiscal year to date. He stated that the majority of the funds are tracking as projected and the revenue sources are approximately on target but highlighted the fact that a number of revenue sources have a built in lag time including Utility Tax and Sales Tax. He also provided a general overview of Debt Service. Village Manager Janonis reminded the Board that a recent summary discussion concerning the status of Flood Control Projects was undertaken recently. He stated recent heavy rains have caused additional eresion of Weller Creek and suggested the Board may want to revisit the Weller Creek Improvements earlier than the projected date of 2006. He stated this is only for genera[ information. This information was provided for general information purposes only to the Village Board. V. 1999 BUDGET AMENDMENT #1 Finance Director Doug EIIsworth provided a summary of the items which had been approved as part of the 1998 Budget but did not get completed in 1998 and are requested for completion in 1999. The majority of the projects requested for carryover are Capital projects in nature. Consensus of Village Board was to bring the Budget Amendment forward to the Village Board for consideration at an upcoming meeting, VI. VEHICLE REPLACEMENT FUND Finance Director Doug EIIsworth stated the Village established a sinking fund for vehicle replacements in 1990 to smooth out variations in the purchase of vehicles. At the time the fund was created, there was no equity transfer as seed money and the annual contributions started the fund at zero. He stated that he has had the opportunity to review the methodology of lease payments based on the value of vehicle and useful life. He stated that lease payments are made starting the first year the vehicle is acquired and the final year of life of the vehicle. The estimated future replacement cost tends to inflate the deficit of the fund. He proposes revising the administration of the fund to not require a lease payment in the first year of acquisition but to make a payment in the last year of the useful life and to use actual replacement costs of the vehicle. Finally, he would like to adjust the lease payment annually with no discounted contributions. He stated that by revising the administration cf the fund as recommended, the Vehicle Replacement Fund deficit is reduced to $145,000 and the annual lease payments are reduced by $241,000 annually. John Korn, Chairman of the Finance Commission, endorsed the methodology as proposed and felt that increasing the useful life of the vehicles has also assisted in reducing the deficit for this Fund. Consensus of the Village Board was to support staff recommendation for revision in the methodology for calculating the Vehicle Replacement Fund lease payments. VII. 1998 SALES TAX REVENUE BY BUSINESS TYPE Finance Director Doug EIIsworth provided general information regarding the industry type or code by categories of Sales Tax. He stated that there is a 5.7% increase over the 1997 receipts and provided a review of the different types of industries. General comments from Village Board members included the following items: There was a discussion regarding a drop in the apparel category and whether that was reflective of business changes at Randhurst. There was also a comment made that Randhurst is a regional mall that brings in other people in addition to having a variety of products available, which may not fit into the apparel category. A suggestion was made to increase the coverage area of the Shop Mount Prospect banners to other areas of the Village besides the downtown. Village Manager Janonis stated that additional banners would be purchased and installed as funds become available. This information was provided to the Board for general information purposes and required no action at this time. VIII. ILLINOIS METROPOLITAN INVESTMENT FUNDS (IMET) Finance Director Doug EIIsworth provided a summary of the areas where the funds are invested and recommends the Village consider joining the IMET communities as an alternative for investments. He said that IMET was originally put together by the Council of Governments including the Northwest Municipal Conference, These investments are for mid-range investments periods and not a money market. He stated that withdrawals are required to give a five-day notice prior to withdrawal. He stated there are over 100 towns, which are currently members of IMET and only invest in funds defined by State Statutes. IMET routinely out-performs other funds as a group. The Village would only invest in liquid funds and would require an initial investment of $1 million, He stated the funds are currently managed by First Chicago NBD investments. He stated the investment package services are bid every two years to ensure adequate services are provided. Consensus of the Village Board was to consider a Resolution whereby the Village would become a participating member in IMET. IX. VILLAGE MANAGER'S REPORT Village Manager Janonis reminded the Village Board that the newly re-elected Trustees and the new Trustee would be sworn in on May 4 and a reception would start at 6:15 p.m. as an opportunity to have some social interaction prior to the meeting itself. X. ANY OTHER BUSINESS Trustee Clowes stated that a resident has approached him voicing concerns about work on Busse Road and Elmhurst Road at the same time since these are two critical north/south roads through Mount Prospect. Village Manager Janonis stated that unfortunately both routes are State owned and controlled and even though Village staff voiced concerns about the two roads being worked on simultaneously, the State when ahead with the construction. Trustee Clowes also wanted to register his opposition to the Tuition Tax Credit position of the Northwest Municipal Conference and the Illinois Municipal League. He also wanted to compliment the Police Department for their quick action regarding the incident at Wolf and Euclid the prior early Saturday morning. He also stated he observed a meeting and training session on unified incident command on April :)3 and wanted to commend the Village staff for undertaking this training. CLOSED SESSION The Closed Session which was scheduled to discuss land acquisition was cancelled. I. ADJOURNMENT No other.business was transacted and the meeting was adjourned at 8:38 p,m ResDectful:ly submitted, DAVID STRAHL Assistant Village Manager DSlrcc H:\GEN\Cow\Minutes~42799 COW Minutes.doc 4