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HomeMy WebLinkAbout05/27/1993 FC minutesFINANCE COMMISSION Minutes of the Meeting May 27, 1993 Call to Order The meeting was called to order at 7:30 p.m. Present were Chairman Richard Bachhuber, Commissioners Newt Hallman, Tom Pekras, Ann Smilanic, and Earl Sutter. Also present were Finance Director David Jepson, and Assistant Finance Director Carol Widmer. Commissioners Paul Davies, John Engel, Vince Grochocinski and James Morrison were absent. II AMroval of Minutes The minutes of the March 18, 1993 meeting will be accepted at the July 8 meeting. III Critique of 1993/94 Budget Process David Jepson asked the members of the Finance Commission to critique the process used to review the 1993/94 Budget compared to the process in prior years. Commissioner Smilanic remarked that she did not feel the new process had afforded her enough time to discuss the budget. She also stated that while Finance Commission meetings are open to the public, she did not think observers should participate in the evening's discussion. Commissioner Tom Pekras concurred with Ann's remarks and went on to say that the new format covered too much information in one evening. In the past, Commission members went into more detail during the budget process and he would prefer a more thorough review. Commissioner Newt Hallman also agreed with Ann's and Tom's evaluation and added that he felt the Finance Commission should ask the hard questions. He stated that the purpose of the Finance Commission is to try to make sure that public monies are being spent wisely. Commissioner Earl Sutter expressed thoughts along the same lines by stating he felt there was not enough opportunity to ask questions. Mr. Sutter also explained that he felt the members of the Finance Commission did not have an opportunity to discuss the budget as a group before making their recommendations. Chairman Dick Bachhuber added that he felt the process was faster but it was not as thorough as in the prior years. Finance Director David Jepson thanked the members of the Finance Commission for their comments. He stated that the 1993/94 budget process got off to a later start than had originally been planned and as a result the schedule was tight. He agreed that while the focus of the budget process should be on more significant budget items, the Finance Commission should ask the hard questions. A discussion ensued regarding how the dollars had been allocated to each department. David Jepson stated that the process of determining a departmental budget included eliminating extraordinary or one-time expenditures and then adding fixed commitments such as personal services, medical insurance, and workers comp in order to determine the minimum funding needed to maintain the existing level of services. As part of the new budgeting process, funding levels will be addressed at Committee of the Whole meetings where the various departments will present unusual needs prior to the start of the budget year. IV Finance Director's Report A. Medical Insurance David Jepson explained the changes in the medical insurance program that went into effect on May 1, 1993 for all Village employees except those covered by collective bargaining agreements. The deductible has been increased from $100 to $250 for single coverage and from $300 to $750 for family coverage. The maximum out-of-pocket cost which was formerly $300 single and $900 family is now a function of salary. For single coverage, out of pocket is 2% of salary and family coverage is 4% of salary. The benefit level is 80% of usual and customary rather than 100%. The Village hopes to realize a savings of $150,000 in medical costs in the coming year. The members of the Finance Commission commended Dave for the new medical benefit plan. B. 1993 Bond Issue The Village recently concluded an advance refunding on the outstanding 1987 and 1991 bond issues for the Public Works Building, Downtown Redevelopment, Flood Control, and the Police and Fire Building. The refunding will result in a savings of $444,000 over the life of the bonds. The Village maintained its Aa rating from Moody's for the refinancing. V Other Business The June and July Finance Commission meetings will be combined into one meeting on July 8, 1993. VI Adjournment The meeting was adjourned at 9:00 p.m. Respectfully submitted, Carol L. Widmer Assistant Finance Director