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HomeMy WebLinkAbout08/26/1999 FC minutesFINANCE CONBUSSION Amended Minutes of the Meeting August 26, 1999 I. Call to Order The meeting was called to order at 7:00 p.m. Those present included Chairman John Korn and Commissioners Vince Grochocinski, Jim Morrison, Tom Pekras and Ann Smilanic. Also present were Finance Director Douglas Ellsworth and Deputy Finance Director Carol Widmer. Commissioners George Busse and John Engel were absent. II Approval of Minutes - Meeting of June 24, 1999 The minutes of June 24, 1999, were approved as corrected. III New Business At the last meeting a question came up regarding how many members of the Committee had to be present at a meeting for a quorum. Mr. Ellsworth reported that the Village Attorney indicated that the majority of those holding office at the time of the meeting is required. If there are seven committee members, then four members make up a quorum. IV Chairman's Report Chairman John Korn updated members of the Finance Commission on recent actions of the Village Board. When the topic of the general store came up, Ann Smilanic stated that Trustee Hoefert indicated to her that the building could not be sold once it is completed because the donor of the sprinkling system would not make the donation for someone else's benefit. Ann also stated that she was informed that she did not hear Trustee Hoefert's remarks correctly. Therefore, Ann asked for clarification as to whether the building could be sold once it is moved and rehabilitated. She asked if we are getting an agreement with donors that will allow us to sell the building in the future. Mr. Ellsworth said we could sell unless there is a contractual provision from donors that would prohibit us from selling the property. The members of the Finance Commission expressed concern that there are no written agreements between suppliers and the Village regarding the building. Further discussion revolved around the procedures being set up to keep track of costs. Mr. Ellsworth said the Village would follow standard procedures and track the costs in appropriate accounts. Chairman Korn said Mr. Janonis had indicated that there would be a report on the cost of the project. The members of the Finance Commission restated their opinion that the maximum amount that should be spent on the general store is the amount that would be spent to demolish the building. A discussion of the Village Board's consensus to gradually add to the General Fund fund balance took place. The Village Board expressed support to increase the fund balance from 161/2% to 25 %. The increase would take place gradually over time. Mr. Ellsworth said a fund balance of 25% would give the Village more flexibility. For instance, sales tax makes up 27% of General Fund revenue and if there should be a significant drop in the sales tax revenue the Village would have the resources through fund balance to continue to fund operations without having to add additional revenue until the business climate recovered. A 25% fund balance is more in line with other communities and would be viewed favorably by bond rating agencies. The Village Board also approved a transfer of $400,000 from the General Fund to the Capital Improvement Fund and the transfer of $180,000 from the Vehicle Replacement Fund to the Capital Improvement Fund. There was general consensus among Board members to support a 4% general property tax levy also. V Finance Director's Report A letter from Mayor Farley to all Board and Commission members regarding meeting attendance was distributed. Mr. Ellsworth advised that he had a scheduling conflict for the meeting of October 28. The members of the Finance Commission agreed to change the meeting date to October 27. VI Adjournment The meeting of September 23, 1999 has been cancelled. The next meeting is scheduled for October 14, 1999 at 7:00 p.m. The meeting was adjourned at 8:30 p.m. CLWsm Respectfully submitted Carol L. Widmer Deputy Finance Director 7