HomeMy WebLinkAbout07/27/1989 FC minutesFINANC' COMMISSION
Minutes of the Meeting
July 27, 1969
I Chairman Richard Bachhuber called the meeting to order at 7:30 PM in the
Trustees' Room at Village Hall. Members present included the Chairman, Ann
Smilanic, Tom Pekras, Newt Hallman, John Mussar, John Engel and Jim Morrison.
Also present were Dave Jepson, Finance Director and Don Mazza, Assistant
Finance Director. The meeting began with each member giving a brief descrip-
tion of his background and family. Mr. Bachhuber and Mr. Jepson welcomed each
of the new members and welcomed back each of the existing Commission members.
II Mr. Bachhuber turned to Mr. Jepson who qave a brief description of the Commis-
sion's new expanded role. The Commission's roll in the most recentpast was t
review the Village budgetand to report to the Village Board on its recommenda-
tions. The Village Board unanimously agreed that an expanded role would be
beneficial to both staff and the Board.
III Mr. Bachhuber conducted elections where Ann Smilanic was elected Secretary and
Newt Hallman was elected Vice -Chairman.
IV Mr. Bachhuber asked Mr. Jepson to discuss the duties and expanded role of the
Commission.
1. Annual Audit and Management Letter The Village's audit is a major
activity covering a period of almost. four months. A Comprehensive Annual
Financial Report is prepared and contains a wealth of information on the
just completed fiscal year as well as statistical tables containing up to
ten years of figures. Because of increasing regulations, the sheer size of
the report has grown to over 200 pages. This makes it next to impossible to
cover the material at a Village Board meeting. The Management Letter is a
list of concerns the auditors have discovered in their review of procedures
and internal controls along with recommendations for improvement. The
Commission would be able to pinpoint trends and financial condition in
greater depth and then be able to report to the Village Board their
findings in a much more concise and objective manner.
2. Six -Month Budget Review While the Commission has been a valuable asset
in the review of the proposed budget, an expanded role such as a formal
review of the actual spending results at the six month time period would be
beneficial to the Commission to gauge the results and provide insight to
the next year budget review.
Mr. Hallman asked what the amount of windfall the increase in the state
income tax would provide and what the Village Board's plans were for
utilizing. Mr. Jepson replied that the total from the temporary increase
would be about. $3.3 million over the next two years and that the Village
Board had discussed using the money for capital projects. However, no
specific purpose had been defined to date.
3. Tax Levy The 1989 Tax Levy becomes one of the 90-91 Budget's revenue
sources. The levy is adopted in November so that it can be filed by the
2nd Tuesday in December. The Commission could provide some help in
sounding out the ideas for projections and needs.
4. Capital Improvement Program Financing The Finance Commission's exper-
tise could prove invaluable in providing alternate methods of financing all
tyres of infrastruct,:re and facilities such as the Public Safety Building
and Village Hall.
5. Investment Policy The Finance Commission would be helpful in reviewing
the Village's investment policy which was adopted in 1985.
6. Risk Management The most volat_.e of the Village's insurance programs
is medical insurance. A 3090' increase is expected for the period of July 1,
1989 to June 30, 1990. The Finance Commission could provide some insight
on long term solutions to the problem.
7. Revenue Sources The Commission could provide help in looking at means
to increasing the Village's revenue base. The temporary hike in State
Income Tax will help in the immediate future and the increase in Motor Fuel
Tax will provide more dollars for streets and bridges, but the Village
needs to constantly evaluate new sources to keep ahead of the requests and
needs for Village services. The Real Estate Transfer Tax and the Food and
Beverage Tax in 1987 are two examples of such sources.
A general discussion about. the issues presented ensued. After a short discussion, a
meeting schedule was set. The meetings will take place on the last Thursday evening
of the month at. 7:30 p.m. in the Trustees' Room in Village Hall. A tentative
schedule for the meetings was presented:
August -
Investment Policy
September -
Audit Review
October -
Review of Social Agencies
November -
Budget Review, Tax Levy
December -
Risk Management
January -
To Be Announced
February -
90 - 91 Budget Review
March -
90 - 91 Budget Review
The Commission then was briefed on the monthly budget reports of revenue and
expenditures. The Commission will be receiving these each month. Mr. Jepson
explained the largest of the reports and what some of the things to look for would
be.
Adjournment followed at 10:00 p.m. Mr. Bachhuber reminded the Commission of the
next meeting on August 31, 1989 at 7:30 p.m.
Resp fully fitted
Don Mazza
Assistant Finance Di c r
ADM/sm