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HomeMy WebLinkAbout03/21/1991 FC minutesFINANCE COMMISSION Minutes of the Meeting March 21, 1991 I Call to Order The meeting was called to order at 7:30 p.m. Commission members in attendance were Richard Bachhuber, Paul Davies, John Engel, Vince Grochocinski, Jim Morrison, Tom Pekras, and Ann Smilanic. Also present were Village Manager John Dixon, Finance Director David Jepson, Assistant Finance Director Carol Widmer, one member of the press and one resident. Commission member Newt Hallman arrived at 8:15 and Village Trustee George Van Geem arrived at 10:05. II Approval of Minutes The minutes of the March 7, 1991 meeting were accepted as presented. III Discussion of Water Rate Proposals David Jepson reviewed the proposed water rate increase and various rate structure options for Commission members. The first option, a uniform structure, is currently in place in the Village. Under this plan each unit of water is the same rate regardless of the number of units used. The rate is established by dividing total expected costs by the total units of water that are expected to be sold. The advantage of the uniform rate is that it is not discriminatory to either large or small users. A disadvantage is that lower volume users do not pay their proportionate share of the cost of providing water service. Under the second option, the Peak Load Rate Structure, the customer is charged a uniform rate for a certain quantity and a higher rate for amounts consumed in excess of the base quantity. The advantage of a rate system like this is that it encourages conservation because the additional use is optional. The disadvantages are that the base is somewhat arbitrarily established, it is difficult to administer, and the revenue stream is not as dependable. The third rate structure is a Uniform Rate with a customer charge. Under this structure all customers would pay at least the minimum charge (which would include the first 2,000 gallons of water). This plan would put a cap on water and sewer charges for low volume users, it would allocate a greater portion of the fixed costs to users with larger meters and it would provide a dependable revenue stream. The disadvantage is that certain customers would be billed a monthly charge who currently do not pay anything. The Commission members discussed the proposed rate structures in depth and recommended the third option, a uniform rate with a customer charge. Commission nembers Bachhuber, Davies, Engel, Grochocinski, Pekras, and Smilanic voted in favor ,f option 3 with Commissioner Morrison voting in favor of the current uniform rate tructure. IV Refuse Contract David Jepson then discussed the refuse disposal contract bids just received by the Public Works Department. The bids were analyzed by the Finance Commission on the basis of lowest cost to the Village, the total value of the contract and the features of a pay -by -bag program. The advantages and disadvantages of each type of service were discussed and many questions and concerns were addressed. All members of the Commission felt much emphasis should be placed on educating the residents as to how to recycle and conserve in order to take full advantage of the opportunities available to them. A motion was made to recommend acceptance of the bid from Arc Disposal Co. for the pay -by -bag system. The motion was approved by Commission members Bachhuber, Davies, Engel, Grochocinski, Morrison, and Smilanic. Commission members Hallman and Pekras voted nay. Two Commission members recommended implementing the pay -by -bag system August 1, 1991 as opposed to following a phase-in schedule. They felt the phase-in would just add to the confusion and that it would be better to begin the program with the one bag limitation. However, they recommended that the Village relax enforcement in the initial few months and ease the transition in that manner. V Budget Review and Recommendations The Commission members then turned their attention to the remaining 1991/92 budget issues. Revenues General Fund 1. Hotel/Motel Tax The proposed Hotel/Motel Tax was recommended unanimously. 2. Resident Ambulance Fee In the discussion of this proposed fee, several Commission members felt that residents already pay for this service in their property tax and should not be asked to pay for it again. Three Commission members, Davies, Engel, and Grochocinski, voted in favo of the fee and five members were opposed (Bachhuber, Hallman, Morrisor Pekras, and Smilanic). 3. Increase Parking Fines Commission members voted unanimously in favor of this proposed increa 4. Transfer of $93,650 from Parking Fund to reimburse the General Fund approved by all members. 5. Commission members all approved the agreement with the firefighte? record Foreign Fire Insurance Tax receipts in the General Fund. 2 6. Parkway Tree Cost/Share Commission members Bachhuber, Engel, Grochocinski, Hallman,_ Morrison, Pekras and Smilanic approved increasing resident share to $100. Commissioner Davies voted no. Illinois Municipal Retirement Fund 1. Commission members approved the accounting change to eliminate the transfer from General Fund to Cable TV. Expenditures Public Representation 1. All Commission members approved adding $5,200 to organizational memberships for a contribution to NWMC's Transportation Committee. Village Manager's Office The recommendation to reduce salary adjustments from $10,000 to $5,000 was approved by all Commission members. Communications Division The proposed changes in the Communications Division prompted a spirited discussion among Commission members. They questioned how many residents actually watch the various cable programs and whether the cable franchise monies could be spent to benefit the Village as a whole. A motion was presented to eliminate the Cable Division and renew membership in the Northwest Cable Council to oversee the franchise and respond to citizen problems and complaints. The motion passed by a vote of 6 to 2. Commission members Davies, Grochocinski, Hallman, Morrison, Pekras and Smilanic were in favor of the motion and Bachhuber and Engel opposed it. In response to concerns that additional information on the Cable Division should be obtained, a recommendation was approved by all members that an independent survey be made of resident usage of the Cable TV programs and service. Police Department The recommendation that the amount budgeted for gasoline be reduced in recognition of the stabilization of gasoline prices prompted a discussion of the use of premium unleaded gasoline in the Village. Some Commission members felt regular unleaded gasoline is adequate and that the Village was spending money on premium gasoline needlessly. A motion requesting a report from staff on the need for premium gasoline in the vehicles was approved 7 to 1. Commission members Bachhuber, Davies, Engel, 3 Grochocinski, Hallman, Pekras and Smilanic voted for the motion and Jim Morrison was opposed. Human Services 1. The issue of funding social agencies was reviewed by the Finance Commission members. The members affirmed their original recommendation not to fund social agencies. Members Bachhuber, Davies, Grochocinski, Hallman, Pekras and Smilanic voted yes and Engel and Morrison voted no by a vote of 6 to 2. The Finance Commission also expressed unanimous approval for the additional part-time clerical position in the Human Services Division. Planning, and Zoning 1. The Commission members all voted in favor of adding $2,500 for affordable housing per the recommendation of the Plan Commission. Street Division 1. The Commission members favored the recommendation to increase the allocation for street resurfacing by $150,000 from available Motor Fuel Tax Funds and $93,650 from the Parking Fund. 2. The members were unanimous in support of the recommendation to change a portion of the allocation for street reconstruction to street resurfacing. Parking Fund All three recommendations for the Parking Fund were approved unanimously. These were the transfer to the General Fund of $93,650, reduction in the land lease from $27,350 to $15,350, and proposal to spend $40,000 for the parking lot rehabilitation. Capital Expenditures Motor Eguipment Pool 1. There was unanimous approval to add the cost of squad car conversions to the pool. VI The next meeting will be April 25, 1991. The meeting was adjourned at 11:45 p.m. 4 Respectfully Submitted, Carol L. Widmer Assistant Finance Director