Loading...
HomeMy WebLinkAbout01/04/1990 FC minutesFINANCE COMMISSION Minutes of the Meeting January 4, 1990 Call to Order The meeting was called to order at 7:30 p.m. Commission members in attendance were Richard Bachhuber, John Engel, Vince Grochocinski, Jim Morrison, John Mussar, and Ann Smilanic. Also present were Finance Director David Jepson, Assistant Finance Director Carol Widmer, and Public Works Director Herbert Weeks. II Approval of Minutes The minutes of the November 30, 1989 meeting were accepted as presented. III Elevated Water Tank Herbert Weeks presented information to the Commission on his plans to imple- ment the recommended repairs and rehabilitation to the elevated water tank as outlined in the report prepared by Tank Industry Consultants. Herb said he would recommend regrading and moving underground wires in the summer of 1990. Then in 1991, another inspection of the tank would be made at which time specifications for the remaining work would be prepared. The specifications would be for the work required to bring the tank up to OSHA standards, repair the tank, and screen and paint the tank. IV Review of 89/90 Budget: Projections David Jepson reviewed his December 27, 1989 `memo to the Village Manager regarding budget projections for the 1989/9.0 fiscal year. Dave reported that after six months' experience, each line item in the budget is reviewed and projections of revenues and expenditures for the remaining fiscal year are made. Using this information, estimates are then made of the fund balances that should be available to start the next fiscal year. Dave stressed that these projections are -a bridge between the budget as originally adopted and the budget that will be presented. Schedule 1 - Estimated Revenues by Fund shows that total Village revenue is expected to be $33,790,085, a total of $936,835 more than had been budgeted. Some of the significant changes that were discussed include the General Fund increase of approximately $1,864,300 which is made up of the State Income Tax Surcharge of $940,000, an additional $280,000 of Sales Tax revenue, and $183,000 in Investment Income. The Motor Fuel Tax Fund is expected to show an increase of $112,000, which is due primarily to an increase in State gas tax of three cents on August 1, 1989 and another three cents on January 1, 1990. Some of the reductions in revenues include $1,540,000 in bonds for Corporate Purpose 1989 Improvements which were not issued and $134,685 in CDBG funds which is due to a delay in the Boxwood Street Improvement Project. Schedule 2 - Estimated Expenditures by Fund shows total expenditures increasing from $32,640,080 to $33,349,935, an overall increase of $709,855. Increases in the General Fund include $118,700 in Inspection Services due to two projects: Central Road Engineering and Forest Avenue Engineering. Additional projects in Streets and Public Property total $495,000. The CDBG Fund showed a decrease of $134,685, which is offset by a similar decrease in revenue, and is due to a delay in completion of certain projects. The increase in the Water and Sewer Fund is due to the reappropriation of the SSES Sewer Projects, and decreases due to the deferral of painting the elevated water tank, and reduced payments to JAWA. The decrease in expenditures of $1,060,000 in the Capital Projects Fund is because the bonds for Corporate Purposes 1989 were not issued. Schedule 3 - Estimated Available Fund Balances is a very important planning tool. Dave emphasized that we try to maintain a fund balance of 15' of expenditures in the General Fund in order to provide adequate working capital and contingencies. As noted on the Schedule, $940,000 of the estimated fund balance of $3,488,597 as of 4/30/90 can be attributed to the State Income Tax surcharge. It is being recommended that this amount be restricted by the Village Board for specific capital improvements to be identified at a later date. The net working capital of $3,515,424 in the Water Fund represents approximately six months of expenditures and will be used to help stabilize water and sewer rates. The Finance Director recommended that the $1,181,560 net working capital in the Risk Management Fund should be increased over the next two years to approximately $1,500,000 as a contingency for catastrophic claims. In the Pension Fund category, the increases in expenditures in both the Police and Fire Pension Funds really reflect the increase of revenues over expendi- tures. Because we expect to expend the entire amount for future benefits, we show expenditures equal to revenues. It is our method of allocating fund balances for future pensions. Schedule 4 is a more detailed schedule of estimated revenues and expenditures for the, General Fund. Many of the items have already been mentioned in connection with Schedules 1 and 2. V 1989/90 Budget Amendments The 1989/90 Budget Amendment Ordinance has been prepared based on the six- month budget review. An amendment is required whenever expenditures are expected to exceed the total amount appropriated at the fund level. Schedule A of the memo presents detail on the increases and decreases to be amended. Overall, revenues are expected to increase $1,802,975 and expenditures are expected to increase $1,817,725. With the amendments, total revenues will be $37,419,350 and total expenditures will be $37,220,480. -2- VI Other Business David Jepson reported that the Village Board has requested the Finance Commission to review the reports from the insurance consultants regarding liability insurance after it is received in March. Also, the Mayor has asked the Finance Commission to review a request from the Mount Prospect Historical Society for additional funding for the Historical Society. The Society has suggested the possibility of either 11 of the Village sales tax revenue or a specified property tax rate as a permanent funding source. The Historical Society has been asked to provide a 5 -year capital improvement budget, an estimated operating budget, and an estimate of the revenues they feel they can raise. VII The next regular meeting is scheduled for January 25, 1990 with additional meetings scheduled for February 8, February 22, and March 8, 1990, in order to review the 1990/91 budget. The meeting was adjourned at 10:00 p.m. CLW/ sm -3- Respectfully Submitted Carol Widmer Assistant Finance Director 1990 - 1991 BUDGET SCHEDULE DATE ACTION 12/12/89 Budget projections for 89/90 completed. 12/13/89 Budget Worksheets forwarded to Department Directors. 12/27/89 Departmental budget requests returned to Finance Director. 12/27/89 Revenue Estimates completed by Finance Director. 1/03/90 Budget Requests compiled by Finance Department. 1/08/90 to 1/17/90 Departmental budget reviews with Village Manager and Finance Director. 1/19/90 Complete Proposed Budget. 2/02/90 Deliver Proposed Budget to Village Board and Finance Commission. 2/13/90 Committee of the Whole - First Budget Hearing: Budget Overview, Revenues, Administration and Finance Department presentations. 2/27/90 Committee of the Whole - Second Budget Hearing: Police Department., Fire Department, and Human Services. 3/13/90 Committee of the Whole - Third Budget Hearing: Public Works Department, Planning and Zoning, and Inspection Services. 3/27/90 Committee of the Whole - Fourth Budget Hearing: Village Board review and recommendations. 4/03/90 Conduct Public Hearing - First Reading of proposed Budget Ordinance at Village Board meeting. 4/17/90 Second Reading of proposed Budget Ordinance at Village Board meeting. 5/1/90 Approved 90/91 Budget available for distribution.