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HomeMy WebLinkAbout01/23/2003 FC minutes INANCE COMMISSION AMENDED MINUTES OF THE MEETING JANUARY 23, 2003 VILLAGE HALL BUILDING 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, George Busse, Tom Pekras and Ann Smilanic. Also present were Director of Finance Douglas Ellsworth, Deputy Director of Finance Carol Widmer and Finance Administrative Assistant Lisa Burkemper. Commissioner Ann Hull arrived at 7:55 and Vince Grochocinski was absent. II. APPROVAL OF MINUTES The approval of minutes was deferred until later in the meeting when a quorum would be present. III. DISCUSSION REGARDING PROPOSED 2003 WORK PLAN There was a brief discussion regarding the 2003 work plan. Commissioner Charles Bennett motioned to move the March 27th meeting to March 20~. Commissioner Tom Pekras seconded the motion and the motion carried. Commissioner George Busse motioned to cancel the meetings scheduled for November 27th and December 25th. Commissioner Charles Bennett seconded the motion and the motion carried. Following the motions a tentative agenda was created. IV( DISCUSSION REGARDING 2004 PROJECTED BUDGET DEFICIT Chairman John Kom began the discussion by mentioning Levy 37, which was mentioned in the newspaper recently. Chairman Korn stated that Levy 37 is a project that will repair part of the Des Plaines River system. Mount Prospect and Prospect Heights will share in the cost of repairing the system, and Mount Prospect's portion of the costs would be roughly $125,000. Chairman Korn also mentioned the memo the commissioners received from the Director of Finance Douglas Ellsworth regarding the financing for a new fire station number 14. Chairman Korn stated that the commissioners should be aware of the project and should keep it under consideration during the budget process. There was a brief discussion among the members regarding the construction figures being used. The members were in agreement that the figures might not be accurate, as the cost of construction has increased over the last few years. The members would like to have the fire department work up new figures to see what current construction costs would be. Director of Finance Douglas Ellsworth provided a brief summary of the results of the Park Ridge Survey. Mr. Ellsworth stated that for expenditures Mount Prospect was ranked third lowest and for revenues fifth highest. Director of Finance Douglas Ellsworth also summarized a revenue survey he conducted among the surrounding communities. Mr. Ellsworth stated the revenue survey was designed to obtain information that is relevant to the Village's 2004 Budget discussions. Mr. Ellsworth mentioned that the telecommunication tax rates in the survey reflected the new simplified telecommunications tax. Mr. Ellsworth explained that the state took the 1% Infrastructure Maintenance Fee and added it to the telecommunications tax. Director of Finance Douglas Ellsworth presented a copy of the Village's Five-Year Financial Forecast. Mr. Ellsworth explained that revenues are increasing at a rate of 2.3% to 2.7% per year whereas expenses are increasing 4.5% - 5.3% per year. The 2% difference between revenues and expenditures is equal to roughly $700,000 per year in a $35,000,000 general fund budget. Commissioner George Busse distributed a working document on the 2004 Budget to help the members in their discussion on the projected deficit. Chairman John Korn began the discussion by asking if the commission agreed with any of the debt issues raised by Commissioner Busse. Regarding the rebuilding of the North Fire Station the members agreed that they would tike the fire department to advise if the figure of $1.5 million being used for the past several years is still a valid figure. Commissioner George Busse stated he felt that items in the CIP could be reduced or postponed for a year, especially the Corridor Improvements. The following summarizes the votes on the various items included in the 2004 Budget discussion. TENTATIVE ISSUES MOTION VOTED IN FAVOR VOTED AGAINST OUTCOME Bennett, Busse, Hull, Korn and Elimination of Vehicle Sticker Pekras. Smilanic Passed North Fire Dept. Debt Service Bennett, Busse and Kom Hull, Peka'as and Smilanic Failed Southside Resource Center Bennett, Pekras and Smilanic Busse, Hull and Kom Failed $500,000 Annual Bennett, Busse, Hull, Kom and CIP Funding Contribution Pekras Smilanic Passed The members then discussed the various ways income could be produced through the elimination and/or reduction of programs or increase in taxes. Two items discussed were the one-year extension of the vehicle replacement and computer programs. After a brief discussion the members decided that these two items were no longer viable and wanted to exclude them from their vote. The members discussed the items from Conm¥~ssioner Busse's working document as well as items of interest brought up by the other members. The following summarizes the votes on the various items that could provide revenues. TENTATIVE NEW REVENUES/PRODUCT MODIFICATIONS MOTION VOTED IN FAVOR VOTED AGAINST OUTCOME Hull, Korn, Pekras and Establish Refuse User Fee Bennett and Busse Smilanic Failed Postpone Con'idor Improvements One Year ($200,000 CIP Offset) All None Passed Bennett, Busse, Hull, Increase Utility Tax Korn and Smilanic Pekras Failed Eliminate Utility Tax Sunset Clause All None Passed Increase Telecommunication Tax by Additional 1.75% (6%). All None Passed Eliminate Telecommunications Tax Sunset Clause. All None Passed Transfer Additional $100,000 from Refuse Levy to General Levy All None Passed 10% Reduction in Forestry Budget All None Passed Reduce Non Essential Overtime Expenditures All None Passed Reduce Non-Mnnicipal Funding and Non-Essential Community/ Civic Bennett, Korn, Pekras and Services by 10%. Smilanic Busse and Hull Passed No New Personnel All None Passed Increase Property Taxes to Offset the Elimination of the Vehicle Bennett, Busse, Hull, Korn Sticker and Pekras Smilanic Passed Increase Property Taxes to Balance Bennett, Busse, Hull, Kom the Budget and Pekras Smilarfic Passed here was a discussion regarding Home Rule Sales Tax. If the tax ~s increased from ~2% to 3//4°/~ approximately $1.3 million would be generated. The members decided that this topic should be discussed further at the February 27, 2003 meeting. There were also discussions regarding extending both the vehicle replacement and computer replacement programs for one year and charging an ambulance fee to resident. There was a consensus among the members against extending the vehicle and/or computer replacement programs and also against charging residents an ambulance fee. Also upon further discussion of the proposed increase in property taxes to balance the budget the commission members after realizing that would mean a 21% increase to the tax rate took another vote. Three members voted in favor and three members voted against the 21% increase. Chairman John Korn reiterated that the actions voted on today were tentative, and the Commission reserved the right to revisit their decisions. Since there was now a quorum the members were able to vote on the minutes of January 9, 2003. Commissioner Charles Bennett motioned to approve the minutes of January 9, 2003. Commissioner Ann Smilanic seconded the motion and the minutes were accepted as presented. V. CHAIRIVlAN'S REPORT Chairman John Kom mentioned that four of the member's terms were expiring shortly. Mr. Kom stated he wanted to try to stagger some of the terms. Chairman Kom also stated that Commissioner George Busse would be leaving the commission at the end of his current term. Chairman John Korn highlighted the topics discussed at the board meetings that have taken place recently. Commissioner Para Smilanic asked about the General Store rent and wanted to know if the tenants stilled owed $12,000 in back rent. Mr. Ellsworth stated that the village is receiving the current rent payments but the tenant still owes the $12,000 from back rent. VI. FINANCE DIRECTOR'S REPORT Director of Finance Douglas Ellsworth distributed copies of the official statement of the $12,235,00 General Obligation Bond for the Village Hall/Community Center. VII. OTHER BUSINESS There was nothing to report. VIII. Next Meeting: February 27, 2003 Commissioner Ann Smilanic motioned to adjourn which Commissioner Tom Pekras seconded. The meeting was adjourned at 10:55 p.m. The next meeting is scheduled for February 27, 2003. Respectfully submitted, Lisa Burkemper Administrative Assistant Finance Department