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HomeMy WebLinkAbout10/14/2004 FC minutes FINANCE COMMISSION DRAFT MINUTES OF THE MEETING OCTOBER 14, 2004 VILLAGE HALL BUILDING DRAFT I. CALL TO ORDER The meeting was called to order at 7:00 p.m. Those present included Chairman John Korn and Commissioners Charles Bennett, Vince Grochocinski, Ann Hull (left at 7 :20 and returned at 8 :30), Brian McPartlin (arrived at 7:30), and Ann Smilanic. Also present were Village Manager Michael Janonis, Assistant Village Manager Dave Strahl, Director of Community Development Bill Cooney, Deputy Director of Community Development Mike Jacobs, Director of Human Services Nancy Morgan, Director of Finance David Erb, Accounting Supervisor Jodie Andrew and Finance Administrative Assistant Lisa Burkemper. Deputy Director of Finance Carol Widmer and Commissioner Tom Pekras were absent. II. ApPROV AL OF MINUTES Commissioner Vince Grochocinski motioned to approve the minutes of August 26th. Commissioner Ann Hull seconded the motion and the minutes were accepted as presented. III. REVIEW OF THE PROPOSED 2005 VILLAGE BUDGET Overview Village Manager Michael Janonis began the discussion by stating that budget year 2004 is expected to finish better than expected and that 2005 presents several challenges that will need to be addressed. Mr. Janonis also stated that the village would need to look at possible revenue enhancements to provide for possible funding of items like the Capital Improvements Plan, a traffic unit, items in the fire department's five year plan and the work that needs to be done to fix the problems found within the Village's combined sewer system. Director of Finance David Erb provided a brief overview ofthe 2005 Proposed Budget. Mr. Erb stated that overall the 2005 Proposed Budget totals $69,796,088, which represents a decrease of 11.6% over the 2004 Budget. Most of the decrease is due to the completion on the new Village Hall project. Mr. Erb also stated the operating budget totals $48,239,192, which reflects a 3.3% increase from the 2004 budget. Director of Finance David Erb also mentioned that for the fourth consecutive year the planned transfer of $750,000 to the Capital Improvements Fund has been deferred. Therefore, approximately $2.2 million in capital improvement projects must be deferred for the year 2005. Director of Finance David Erb also summarized where the general fund reserve balance is presently and where it is expected to be in the next few years. The summary is as follows: as of 1/1/04 the general fund balance was at 28.24%, as ofl/1/05 it is expected to be at 25.5%, as ofl/1/06 it is expected to be at 24.46% and on 1/1/07 it is projected to be at 20.77%. Commissioner Charles Bennett asked what the lag time was in sales tax reporting. Director of Finance David Erb stated that the lag time is approximately 3 months. Chairman John Korn stated that the second largest expense throughout the budget is contractual services. Chairman Korn asked how often the Village reviews these services to see ifthe service should continue to be outsourced or handled internally. Director of Finance David Erb stated that most significant services go out for bid and are awarded contracts that last 3 or 4 years. Village Manager Mike Janonis stated that the Village does not have a systematic review ofthese services. Mr. Janonis added that as a rule if there is the potential for labor components it is almost always cheaper to use an outside contractor. Furthermore, this is looked at as part of the bid review process. Communitv Development Director of Community Development Bill Cooney began his presentation with an overview of 2004 accomplishments. Mr. Cooney mentioned that the department made 20 different amendments to zoning codes and enhanced the department's page on the Village web site. Mr. Cooney also provided a brief update on the redevelopment at Randhurst. Director of Community Development Bill Cooney also discussed several objectives the department would like to accomplish in 2005. Mr. Cooney stated that the site of the old Village Hall would be torn down and development ofa building with 52 condos and 14,000 feet of retail space is expected to have occupancy by 2006. Another area that will be developed is the land at Central and Emerson. Mr. Cooney stated that the project is currently out for bid and development is expected to begin in the spring of2005. Mr. Cooney also mentioned planning for the possible redevelopment ofthe small triangle area (Busse-Route 83-Northwest Highway) and Central Plaza (Route 83-Central). Commissioner Charles Bennett asked who would be affected ifpart of the TIP were extended. Village Manager Mike Janonis said that school districts 214 and 57 would be affected. There was a short discussion brought on by Commissioner Brian McPartlin regarding the finance commission's previous recommendations on revenue enhancements. The consensus was to present the commission's recommendations again to the Village Board as part of the budget process. Human Services Director of Human Services Nancy Morgan began her discussion by stating that their 2005 Proposed Budget totals $723,033, which represents a 4% ($31,000) increase over the 2004 Budget. Director of Human Services Nancy Morgan highlighted that a $3,000 CDBG Block Grant was obtained for the Mentor Program. Ms. Morgan also mentioned that the social services budget showed an increase of$30,000, due to the merging oftwo budget categories (youth activities and social services line items). Ms. Morgan stated that the 2004 budget would have to be amended to correct the figures for the flu shot program previously scheduled for 2004. Because the Village flu shots were not available this year the program was cancelled, therefore revenues and expenses associated with the program would not be realized. Commissioner Brian McPartlin asked how many people in Mount Prospect typically come to the Village for their flu shot. Ms. Morgan said that approximately 2,000 per year come to the Village. Village Administration Assistant Village Manager Dave Stahl began his discussion by stating that with the move in 2004, all sub departments that fall under administration are now located together on the third floor of the new Village Hall, with the exception of the IT department which is located in the lower level of the new Village Hall. 2 Assistant Village Manager Dave Stahl continued by stating that the administration budget added two positions in the Proposed 2005 Budget. The addition of a GIS coordinator under the IT department is a position currently in Public Works budget that is being transferred over to Village Administration. The other position is a part-time position for a management intern. Village Administration has put this position back in their budget after a three-year hiatus. Commissioner Ann Smilanic asked how long an intern usually works for the Village. Mr. Strahl said that an intern usually works a year or more. Commissioner Charles Bennett asked if the workplace violence policy, which is planned to be implemented in 2005, is a new policy and why it is needed. Mr. Strahl stated that the Village updated and developed a policy to address issues in case it is needed. Finance Department Director of Finance David Erb began his discussion with some accomplishments completed in 2004. One item discussed was getting Request for Proposal's out for Village banking services and Village audit services. Both services should be in place by March 2005. Mr. Erb also discussed several objectives the department would like to accomplish in 2005. Among the items discussed was the combined sewer improvements project which will require the department to prepare a study ofthe water and sewer fund to assist in figuring out how to fund the approximately $14,000,000 project. Other items discussed were a review of the business license fees, preparation of standard operating procedures for payroll functions and research and eventual implementation of electronic payment options. Commissioner Charles Bennett asked if the implementation of electronic payment options was a priority. Director of Finance David Erb stated that it was a priority. Director of Finance David Erb continued his discussion by stating that the total finance Proposed Budget is $1,570,000, which represents a 14.8% increase. Mr. Erb stated that the 14.8% increase is due mostly to increased insurance costs. Commissioner Brian McPartlin voiced his concerns regarding the budget increases in workman's compensation/liability insurance. Non-Departmental Civic and Community Services, Debt Service, Pensions and Insurance Director of Finance David Erb began his discussion by stating the total Proposed Budget for Civic and Community Services is $266,948, which is a 4.3% decrease from the 2004 Budget. Director of Finance David Erb advised that the total Proposed 2005 Budget for debt service is $4,541,053. This is a $1.4 million or 23.9% decrease from the 2004 Budget. The decrease is a result of the street improvement debt being paid off. Mr. Erb also stated that the total debt for the Village is $46,316,348, of which $19,010,000 is the Library's portion. Mr. Erb further stated that debt, as a percentage of Equalized Assessed Value, is 2.1 %, which is good. Commissioner Charles Bennett asked ifthe Library debt was on a 20-year payoff. Mr. Erb stated that it was on a 20-year payoff. 3 Director of Finance David Erb stated that the total 2005 Proposed Budget for pensions totals $4,750,018, which represents a 4.5% increase over the 2004 Budget. Mr. Erb noted that $54,630 is being paid out of the general fund for miscellaneous pensions provided to retired firefighters that were members of the Forest River Fire Protection District. Previously these pensions were paid out of a separate fund that was set up years ago. Director of Finance David Erb stated the total 2005 Proposed Budget for insurance is $5,669,350, which is a .7% increase over the 2004 Budget. Mr. Erb mentioned that in 2005 the Village would be self- funding their insurance program up to $2,000,000 in lieu of purchasing a commercial policy. Previously the village purchased a commercial policy for $250,000 to $2,000,000. This policy covered claims after the Village satisfied the initial $250,000 self-insurance level. Mr. Erb also stated that the money saved on premium of the commercial policy would go towards revenues. Commissioner Charles Bennett asked what the $9,000,000 in business interruption insurance is for. Mr. Erb stated the insurance covers Randhurst in the event that the building was destroyed; the insurance would cover lost sales tax revenues. IV. CHAIRMAN'S REpORT Chairman John Korn highlighted the topics discussed at the board meetings that have taken place recently. Chairman John Korn reminded the commissioners that at the Public Works budget meeting there would be a discussion on the Combined Sewer Project and Pavement Management Program. Chairman Korn also added that the commission should playa role in planning for the funding of the Combined Sewer Project. V. FINANCE DIRECTOR'S REpORT There was nothing to report. VI. OTHER BUSINESS Following a brief discussion and discussions earlier in the meeting the finance commission members present unanimously decided to move the Thursday, October 28, 2004 meeting to Wednesday, October 27,2004. VII. NEXT MEETING: OCTOBER 21. 2004 Commissioner Charles Bennett motioned to adjourn which Commissioner Brian McPartlin seconded. The meeting was adjourned at 9:59 p.m. The next meeting will be October 21,2004. Respectfully submitted, Lisa Burkemper Administrative Assistant Finance Department 4