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HomeMy WebLinkAbout04/23/2013 FC Minutes Financial Planning Workshop April 23, 2013 Joint Meeting with Village Board and Finance Commission 1St Floor Community Center Village Hall 50 S. Emerson Street I. Call to Order Mayor Wilks called the meeting to order at 6:40 p.m. Trustees present included John Matuszak, Steven Polit, Paul Hoefert, Arlene Juracek, John Korn and Michael Zadel. Finance commission members present included Vince Grochocinski, Chair and Commissioners Pam Bazan, John Kellerhals, Tom Pekras and Don Ocwieja. Staff present included Village Manager Michael Janonis, Assistant Village Manager David Strahl, Finance Director David Erb, Deputy Finance Director Lynn Jarog, Police Chief Michael Semkiu, Deputy Police Chief Tim Janowick, Deputy Police Chief John Wagner, Police Commander Mike Eterno, Community Development Director Bill Cooney, Public Works Director Sean Dorsey, Deputy Public Works Director Jason Leib, Fire Chief John Malcolm, and Human Services Director Nancy Morgan. Motion made by Trustee Polit second by Trustee Korn to add a Closed Session for litigation and personnel to the agenda. Motion was approved. Motion made by Trustee Korn second by Trustee Hoefert to add Citizens to be Heard to the agenda. Motion was approved. II. Citizens to be Heard There were no citizens to be heard. III. Financial Planning Workshop Before starting with scheduled agenda items Public Works Director Dorsey provided a short presentation on flood fighting efforts over the past week at Levee 37 and throughout the Village. General discussion followed. 1) 2012 Year-End Results Finance Director Erb provided an overview of the Village's financial position at the close of budget year 2012. Erb stated the budget as amended projected a surplus of $727,395. Actual surplus came in at $759,456. Erb highlighted some revenue growth in one-time receipts items in addition to some extraordinary expense items. He said the General Fund fund balance as of the end of 2012 was 26.1%. 2) 2013 First Quarter Review Finance Director Erb stated the current 2013 year-end estimate projects a surplus of $160,150. Revenues are projected to come in over budget by $171,000 while expenditures were increased $10,850. General Fund fund balance at the end of 2013 is projected to be 25.5%. 3) 2014 Revised Forecast Budget Finance Director Erb stated that the original forecast budget for 2014 projected a deficit of $323,900. Current estimates show the projected deficit falling to $258,400. Adjustments to some revenues accounted for the drop in projected deficit. Revenue growth for 2014 is 2.7% while expenditures are estimated to grow by 3.7%. Erb stated he feels the revenues as projected are fairly stable. Expense projections include a 2% increase and similar growth in commodity/contractual service accounts. Based on the current budget projections for 2014, the General Fund fund balance will be 24.2% at the end of 2014. 4) 2013 Proposed Property Tax Levy Erb provided a review of the proposed property tax levy for 2013. The 2013 levy is projected to increase 4.74% generating $17.3 million. Assumptions used for the 2013 levy included a 4.7% increase for the general portion, 3.0% increase for the refuse portion, 0.2% increase for the debt service portion and 7.0% increase for the police and fire pension portions. He also provided a summary of the growth in property taxes over the last ten years. 5) Preliminary Capital Improvement Plan (CIP)/Five-Year Forecast (2014-2018) Erb stated the first draft of the CIP has been submitted by the departments totaling $59.3 million. He stated the projects will be budgeted only to the extent there is funding available. Extra attention will be paid to flood control and street program to identify funding sources to support these two programs. He also stated there are several shortfalls in some of the funds that should be addressed. Significant revenue sources are broken out in the forecast. 6) Other Issues Impacting the Village Erb stated that there were a number of items brought forth to the Village Board and Finance Commission at the 2012 Financial Planning Workshop that are currently being addressed within the existing budget resources. These issues include the emerald ash borer, Randhurst redevelopment agreement and the automated meter reading system. Other items that remain include funding for the street resurfacing program and flood control for public and private improvements. Erb presented a recommended funding plan prepared by the Finance Commission to address the annual funding requirement of the street program and funding needed to support projects recommended by the comprehensive stormwater study. Currently there is a need for additional funding for streets of $2.2 million annually in order to not fall further behind. The FC plan does not address the existing backlog. The following were the Finance Commission recommendations for additional revenues to support the street program. i. Increase local motor fuel tax from $0.02 to $0.05 ii. Increase vehicle sticker fee from $36.00 to $45.00. At this point all vehicle sticker fees would be reallocated from the General Fund into the Street Improvement Fund. The refuse portion of the property tax levy would be reallocated to the General Fund. The overall tax levy would be reduced approximately $500,000 as a result of this reallocation. Lastly, the annual direct charge for refuse would increase from $100.00 to $226.00 to support refuse collection. To address the recommended public improvements generated from the flood study the Finance Commission recommends issuing bonds that will be supported by existing revenues. Funding to support private improvements would be through a revolving fund with seed money coming from an increase in the sewer construction fee from $5.00 to $7.00 per month. The revolving fund would be paid back by the homeowner through a loan of 50% of the construction value with 50% of the resident contributed for the improvement. Loan could be paid back over time or at the time of the home sale. Consensus of the village board was to request finance commission review the concept further to route refine the options available for private flood control funding and the methods for managing that funding and repayment. IV. Any Other Business There was no other business V. Adiournment There was a motion by Trustee Zadel and second by Trustee Korn to adjourn. Motion passed and the meeting was adjourned at 8:45 p.m.