HomeMy WebLinkAbout05/30/1991 FC minutesFINANCE COMMISSION
Minutes of the Meeting
May 30, 1991
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, Newt Hallman, James
Morrison, Thomas Pekras, Ann Smilanic, and Earl Sutter. Also present were Finance Director
David Jepson, Assistant Finance Director Carol Widmer, and one member of the press.
II Approval of Minutes
The minutes of March 21, 1991 meeting were accepted as presented.
III Discussion of Premium Gasoline
Members of the Finance Commission have, in the past, questioned the Village's use of
premium no -lead gasoline in Village vehicles and the Committee requested that the subject
be included on the evening's agenda. Finance Director David Jepson explained that 18 out
of 20 surrounding municipalities currently use premium no -lead gasoline in their vehicles.
However, in response to the concern previously raised by the Finance Commission, Public
Works Director Herb Weeks is requesting quotes on regular no -lead gasoline as well as two
trades of premium gasoline for the 1991/92 fuel contract. In addition, the Village has just
received a fleet of new Police squad cars and two of the cars will use regular no -lead gasoline
for a three-month period on a test basis. The performance of the squad cars will be evaluated
at the end of the period. Public Works Director Herbert Weeks is also considering a plan
whereby he will mix loads of gasoline in order to use both no -lead and premium no -lead
gasoline.
During the discussion several members of the Finance Commission stated that they did not
feel the information they had received thus far justified the additional cost of using the
premium grade gasoline and asked for further information including a copy of the owner's
manual for the new squad cars in order to review the manufacturer's recommendation as to
type of gasoline. They stated that they intended to address this subject again at a future
meeting.
IV Village Credit Report
David Jepson reported on the recent sale of $7,495,000 general obligation bonds. The
proceeds of the sale will be used to finance the new Police and Fire Building, Downtown
Redevelopment and Flood Projects. The bonds were sold on May 7 at an overall rate of
6.224870. There were five bidders and the three top bidders had a spread of less than $5,000.
In conjunction with the bond sale the Village asked Moody's to update its bond rating.
In 1973 the Village was rated Aa and retained that rating in 1987. It was hoped that in 1991
the Village would be able to upgrade the rating to AA1, or Aaa. Only 170 of the Villages
are Aaa, 2% are Aa, and 9% are Aa. The Village retained its Aa rating without an upgrade
due to three factors: 1) little future growth potential, 2) a high reliance on sales tax revenue
in a recession period, and 3) a general fund balance in the 15% range. Moody's believes the
fund balance should be higher. Overall, the Moody's report on the Village was very positive
and reported favorably on many of the changes that have been made over the past four years.
V 90/91 Year End Budget Report
Finance Director David Jepson reviewed the Fiscal 1991 year end results. A budget
amendment was required for three funds because expenditures in CDBG, the Risk
Management Fund and Downtown Redevelopment Const 1985 exceeded the amount budgeted
for those funds. CDBG required a $50,000 increase due to a change in the scope in the
Boxwood Street Improvement Project. The Downtown Redevelopment Fund 1985 was
increased $125,000 for improvements for the V & G parking lot and there was a corresponding
decrease in the budget of the D/T 1990 Fund. The Risk Management Fund required a budget
amendment of $25,000. The increase needed for this fund is due to the continuing rise in
medical insurance costs. In 1985/86 net medical insurance costs for the Village were $415,000
and in 1990/91 the costs were $1,054,000. Concern was expressed by the Finance Commission
over the increasing costs and questions were raised as to what measures the Village is taking
to try to contain costs. Dave Jepson explained that the Village has a precertification
requirement for hospitalization and that the Village is considering a preferred provider
network and large case management.
Dave Jepson emphasized the importance of having adequate fund balances in order to have
working capital for the new fiscal year and he reviewed the April 30 balances in each of the
funds.
VI The meeting was adjourned at 9:30 p.m.
The next meeting will be held on Thursday, June 27, 1991.
Respectfully submitted,
Carol L. Widmer, Assistant Finance Director
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