HomeMy WebLinkAbout03/21/1990 FC minutesFINANCE COMMISSION
Minutes of the Meeting
March 21, 1990
I Call to Order
The meeting was called to order at 7:33 p.m. Commission members in
attendance were Richard Bachhuber, Paul Davies, John Engel, Vince
Grochocinski, James Morrison, John Mussar, Thomas Pekras, and Ann Smilanic.
Also present were Village Manager John Dixon, Village Trustee George Van
Geem, Finance Director David Jepson, and Assistant Finance Director Carol
Widmer. Commissioner Newt Hallman arrived at 7:55 p.m.
II Approval of Minutes
The minutes of March 8, 1990 were accepted as presented.
III Revenues
In connection with General Fund revenues, Finance Director David Jepson
presented revised information on Sales Tax Revenue estimates for 1989/90 and
1990/91. The revised estimate for 1990/91 shows total sales tax revenue at
$5,925,000. Mr. Jepson explained that due to changes in the Sales Tax Act
which went into effect on January 1, 1990, the Village will no longer
receive interest from the State on sales tax collections nor will the
Village receive an accelerated payment of approximately $30,000.
Mr. Jepson also explained that $450,000 for the Schoenbeck Road project will
be included in the budget. Under a recently approved agreement with Cook
County, the Village will contract for the construction of Schoenbeck Road
and the County will then reimburse the Village for the expenditures.
The joint project with Prospect Heights for Seminole Lane Improvements has
been removed from the 1990/91 budget and therefore $18,000 reimbursement has
also been eliminated. Additionally, the Village has been informed that it
will not receive a $140,000 recycling grant. The Village will only receive
$2,500 which is the final installment of the 1989/90 Recycling Grant.
Revenue changes to other funds included an addition of $2,546,920 for the
Mount Prospect Public Library, a Sewer Rehabilitation Grant of $392,400, an
overall increase of $181,500 in the CDBG Fund revenues and an increase in
Historical Society donations from $25,000 to $30,000.
The Commission members acknowledged the information regarding the above
changes in the revenues for the 1990/91 proposed budget.
Mr. Jepson then discussed a proposed hotel/motel tax to be used as a means
of financing a contribution to the Historical Society. It is estimated that
the tax could generate a minimum of $27,000 a year. The Finance Commission
decided to recommend the adoption of a 3% hotel/motel tax by a vote of 6 in
favor of the tax with three abstentions. The Commission then addressed the
issue of using the tax as a means of financing a contribution to the
Historical Society. After considerable discussion, a motion was made that
the tax not be used for the purpose of making a contribution to the
Historical Society. The vote was eight in favor of the motion and one
opposed.
A flood control service charge, or user fee, was discussed as a means of
financing the first phase of the Flood Control Program. A motion was made
to defer a decision on this charge until more information is made available.
The vote was 3 in favor of the motion and 6 against. A motion was then made
to endorse the concept of a Flood Control Service charge as a means of
financing the Flood Control Project. The motion passed by a vote of six in
favor and three opposed.
Mr. Jepson then explained the procedure for a proposed Motor Equipment Pool
Fund. Mr. Jepson explained that this approach would help to eliminate
fluctuations in the departmental budgets for replacement of vehicles and
it would serve as a means to finance the purchase of such vehicles and
equipment. The Finance Commission voted unanimously to recommend that the
Motor Equipment Pool Fund be included in the 1990/91 proposed budget.
Trustee Van Geem asked the Finance Commission their thoughts regarding the
possibility of raising the Real Estate Transfer Tax rate from $1 per
thousand to $3 per thousand. Trustee Van Geem explained that the Village
needs new revenue sources which could help to reduce the dependence on
property taxes. Mr. Dixon added that having a broader source of revenue
improves the Village's bond rating also. The increase would be expected to
produce $350,000 to $400,000 yearly. The Finance Commission unanimously
endorsed the proposal to increase the Real Estate Transfer Tax.
IV Expenditures
As Mr. Jepson explained, some of the changes discussed under revenues are
also reflected in the expenditures. Those items include the removal of
$72,000 for Seminole Lane engineering in the Inspection Services Department,
the addition of the Library appropriation of $2,546,920, and the addition
of the Schoenbeck Road reconstruction of $450,000. The proposed changes in
the Planning and Zoning Department which pertain to CDBG Fund (asbestos
removal, handicapped accessibility at the Library, Boxwood Street
improvements, and the multi -family rehabilitation program at Prospect
Commons) have also been changed. A change in the Water and Sewer budget is
due to a notification from JAWA that proposed improvements to the system
will increase our assessment to $240,000, up $70,000 from the $170,000
originally budgeted. Further, the cost of the retaining wall repairs in the
Parking Division has been reduced from $210,000 to $70,000. Also, in the
Refuse Disposal budget the Village has reduced the contribution to the Solid
Waste Agency from $125,920 to $100,000 and eliminated the Transfer Site
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Development cost of $130,000. The Finance Commission approved the above
changes.
In regard to proposed capital improvements, the Finance Commission
unanimously recommended that no monies be included in the 1990/91 budget for
grading work in Melas Park and until the Village receives a commitment from
the Mount Prospect Park District no additional funds should be committed for
Park development. Also, the Commission unanimously recommended that $75,000
be budgeted for the Melas Park Storm Sewer and also be contingent on an
agreement with the Park District on developing the Park. The Finance
Commission then voted 5 to 4 to support an increase from $50,000 to $60,000
in Historical Society improvements.
Unanimous approval was given by the Finance Commission to a proposal to
appropriate $10,000 in the Village Manager's budget to provide limited part-
time employee benefits. Also given unanimous approval was the proposed
part-time position in the Finance Department and the Human Services
Department's requested proposed change in the status of the Employment
Counselor from part-time to full-time and a new part-time Social Worker
position. Also, under the Human Services budget the Finance Commission
voted unanimously to uphold their previous decision to withhold funding for
Omni Youth Services.
The three new positions in the Fire Department also were approved
unanimously contingent upon obtaining the Elk Grove Fire District station
by lease or purchase. Also, in the Fire Department budget the Finance
Commission voted 5 to 2 with 1 abstention not to approve a $6,000 request
for a new computer.
The Finance Commission then recommended that the new patrol officer in the
Police Department not be hired by a vote of 7 to 2.
The vehicle lease payment charges in each department had been discussed
under the Motor Equipment Pool Fund and received unanimous support.
Under the Planning and Zoning budget, by a vote of 8 to 1, the Finance
Commission voted to recommend that the request for the Zoning Ordinance
Review be deferred for six months and then spread over a two-year period.
In the Street Division budget, the Finance Commission did not support
increasing the amount allocated for street resurfacing or reconstruction.
In regard to using some of the State Income Tax Surcharge, the Finance
Commission recommended by an 8 to 1 vote to reserve the monies for flood
control. Also, the Finance Commission voted in favor of replacing a tow
truck for $97,500 by a vote of 8 yeas and 1 abstention.
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The regularly scheduled meeting for March 29 has been cancelled and the next
meeting will be April 26, 1990.
The meeting was adjourned at 11:55 p.m.
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Respectfully/submitted,
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Carol Widmer, Assistant Finance Director
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