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HomeMy WebLinkAbout07/24/2003 FC minutes RAFT FINANCE COMMISSION MINUTES OF THE MEETING JULY 24, 2003 VILLAGE HALL BUILDING DRAFT I. CALL TO ORDER The meeting was called to order at 7:02 p.m. Those present included Chairman John Korn and Commissioners Vince Grochocinski, Ann Hull, Ann Smilanic and Tom Pekras who arrived at 7:14 p.m. Charles Bennett was absent. Also present were Deputy Director of Finance Carol Widmer and David Erb the Village's new Finance Director, who will begin his duties on August 1, 2003. II. APPROVAL OF MINUTES After some discussion, which resulted in no changes to the minutes of June 19, 2003, Tom Pekras motioned to approve the minutes as presented, and Ann Hull seconded the motion, which was approved. The commission members welcomed David Erb and John Korn presented a brief description of the history and functions of the Finance Commission. III. REVIEW OF 2002 COMPREHENSIVE ANNUAL FINANCIAL REPORT Deputy Director of Finance Carol Widmer presented the commissioners with copies of the 2002 Comprehensive Annual Financial Report and explained the audit opinion, which stated that the financial statements fairly presented the condition of the Village in conformity with generally accepted accounting standards~ There were no exceptions or material comments made by the auditors. IV. MID-YEAR BUDGET REVIEW Deputy Director of Finance Carol Widmer presented the commissioners with copies of her memo to the Village Manager on the Mid-Year Budget Review and a current revision to the exhibit on the 2004 forecast in that document. Ms. Widmer pointed out the various changes to the forecast for 2003 based on the actual results for the six months ended June 30, 2003 and discussions took place about the more significant variances from plan. On an overall basis, the results have deteriorated in that revenues, especially from sales taxes, are now projected to be less than previously projected by almost $600,000. The hiring freeze implemented in the Village was having positive results, but could not overcome the revenue shortfalls. Ms. Widmer then discussed the revised forecast for 2004 in light of the observations made regarding the first half of 2003 results. Ms. Widmer pointed out that the changes in tax rates and sunset provisions enacted by the Board for 2004 would produce a substantial revenue increase, but noted that recent information and trends had lead to projected decreases in the sales taxes and State of Illinois Income Tax revenues. In addition, increases in expenditures for Police, Fire and IMRF pension contributions of approximately $350,000 due to poor investment results indicated an $841,000 excess of expenditures over revenues in the 2004 forecast. Chairman John Korn polled the commissioners regarding their assessment of the situation, and k was agreed that no actions should be proposed at this time but that the results over the next few months must be carefully watched so that remedial actions, if necessary, can be planned. V. CHAIRMAN'S REPORT Chairman John Korn highlighted several topics discussed at the most recent board meetings. VI. FINANCE DIRECTOR'S REPORT There was nothing further to report. VII. OTHER BUSINESS The next meeting scheduled for August 28, 2003 was discussed. Ann Smilanic motioned that the Chairman be authorized to cancel the August 28 meeting if nothing of consequence develops at the intervening board meeting or with the Village's financial condition. Tom Pekras seconded the Motion, which was approved by all commissioners. VIII. NEXT MEETING: AUGUST 24, 2003 Commissioner Ann Hull motioned to adjourn which Commissioner Ann Smilanic seconded. The meeting was adjourned at 8:40. The next meeting will be August 28, 2003. Respectfully submitted, Vincent Grochocinski Finance Commission Secretary