HomeMy WebLinkAbout03/25/1999 FC minutesFINANCE COMMSSION
Minutes of the Meeting
March 25, 1999
I. Call to Order
The meeting was called to order at 7:00 p.m. Those present included Chairman John Korn and
Commissioners George Busse, John Engel, Newt Hallman, Jim Morrison, Ann Smilanic, and Tom
Pekras. Also present were Village Manager Michael Janonis, Finance Director Doug Ellsworth,
Human Services Director Nancy Morgan, Assistant Human Services Director Jan Abernethy, and
Deputy Finance Director Carol Widmer. Commissioner Vince Grochocinski was absent.
II Discussion Regarding Human Services Department
Human Services Director Nancy Morgan and Deputy Human Services Director Jan Abernethy
discussed the most pressing issues confronting the Human Services Department. Many of those issues
are related to the Year 2000 and the role of the Human Services Department. Nancy and Jan
explained that part of the focus would be to educate seniors as to how to prepare for the Year 2000.
Another area their staff will address will be to identify residents with special needs and match them
with relatives or volunteers who will assist in meeting those needs if necessary.
Another issue confronting the department is the need to convert the current software program to an
Access database. Many efforts have been made by Nancy and her staff to locate software that will
meet the unique needs of the Human Services Department. They have been unsuccessful in those
efforts. The members of the department have decided that the only way they will be able to track the
information needed in order to serve their clients and provide informational reports to the Board will
be to have the system designed for them. That will be a priority in the future.
Nancy also responded to questions from the members of the Finance Commission as to whether the
Department is duplicating services provided by other agencies. Nancy explained that the development
of several new programs such as the Mentor Program and the Summer Adventure Program were
designed because her staff identified a need that was not being met. She went on to explain that
programs are evaluated regularly and if they are being provided for elsewhere or are no longer
needed, they are discontinued.
III. Discussion Regarding Finance Department
Finance Director Doug Ellsworth discussed the internal and external issues facing the Finance
Department. One of the internal issues discussed was the excessive turnover in the part-time customer
service clerk positions in the customer service area. The turnover problem impacts the department
in many ways including added work for the other staff members, time involved interviewing
candidates, and the amount of time spent training new staff.
In conjunction with the turnover issue is the problem of insufficient resources to properly handle the
customer service functions as well. Staffing is inadequate to cover all of the revenues and billings
that flow through that area. A request will be made in the Year 2000 Budget to convert one part-time
customer service clerical position to full-time.
The computer conversion project was also discussed. There are three major software modules
scheduled to be converted in 1999. The first one on the schedule is the financial package, which
includes the general ledger, accounts payable, and accounts receivable. The payroll/human services
module is next on the schedule followed by the property module, which includes the utility billing
system.
External issues that have a major impact on the Finance Department were also discussed with the
Commission members. They included the upcoming revision to the Generally Accepted Accounting
Principals, which will require major changes to the Village's financial statements, the downtown
redevelopment effort, and increased workers' compensation claims.
On the issue of workers' compensation claims, Mr. Ellsworth noted that the Village processed 25
claims for a total of $336,000 in 1997 and in 1998 that figure had risen to 45 claims for a total of
$425,000. Due to the increase in activity and the demands of administering the Village's insurance
program, Mr. Ellsworth is recommending an addition of a Risk Manager in the Year 2002.
IV Discussion Regarding Vehicle Replacement Fund
In 1998 concern had been expressed that the Vehicle Replacement Fund was facing a funding shortfall
of $1,778,466. This shortfall was based on the assumption that annual lease payments would be made
in the year of acquisition, not in the year of disposition, and also on the basis of estimated future
replacement value of vehicles on which the present value of lease payments would be made.
Mr. Ellsworth recommended changing some of the funding assumptions. This would involve making
a lease payment in the year of disposition and not in the year of acquisition and, instead of estimating
the future replacement value of vehicles, which would then be discounted, Mr. Ellsworth
recommended using current replacement value in setting the annual lease values. The current
replacement value would be updated each year, with the change being amortized over the remaining
life of the vehicle. The methodology changes recommended by Mr. Ellsworth would result in a
shortfall in the Vehicle Replacement Fund of only $306,480.
Mr. Ellsworth advised the Commission that a shortfall in the magnitude of $300,000 - $700,000 is
small enough to enable the Village to cover it in the next few years out of surplus General Fund
monies.
Mr. Ellsworth stated that department directors are reviewing the replacement schedule and a final
draft will be distributed in April.
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V Update on Recent G. O. Bond Sale
Mr. Ellsworth reported that on March 2, 1999, the Village issued $5,550,000 of taxable general
obligation bonds. The proceeds will be used for property acquisition within the downtown
redevelopment area. The bonds are expected to be repaid from property tax increment and land sale
proceeds from the TIF. The Village maintained its high Aa3 bond rating from Moody's.
VI Adjournment
The meeting was adjourned at 9:30 p.m. The next meeting is scheduled for April 22, 1999 at 7:00
p.m.
CLWsm
Respectfully submitted
Carol L. Widmer
Deputy Finance Director
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