HomeMy WebLinkAbout08/26/1993 FC minutesFINANCE CONIlMISSION
Minutes of the Meeting
August 26, 1993
I Call to Order
The meeting was called to order at 7:30 p.m. Present were Chairman Richard Bachhuber,
Commissioners Paul Davies, John Engel, Newt Hallman, James Morrison, Tom Pekras, Ann
Smilanic, and Earl Sutter. Also present were Finance Director David Jepson and Assistant
Finance Director Carol Widmer. Commissioner Vince Grochocinski was absent.
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II Auvroval of Minutes
The minutes of the July 8, 1993 meeting were accepted as presented.
Finance Director David Jepson presented an overview of the operations of the Finance Department.
His presentation was based on the Finance Department's informational booklet. This booklet
includes four sections: (1) Introduction and Department Organization; (2) Department Activities;
(3) Internal Reports; and (4) Finance Issues. As Mr. Jepson explained, while the Finance
Department is not as visible within the community as the Police, Fire, and Public Works
Departments, the Finance Department provides essential services both internally and externally.
The Finance Department consists of administration and three divisions: Accounting, Customer
Service, and Data Processing. Staffing for the department consists of 12 full-time and 4 part-time
employees.
Administration has responsibility for all fiscal transactions of the Village. These responsibilities
include administration of the Village's Risk Management Program, a Section 125 Flex Comp
Program, a Section 457 Deferred Compensation Program as well as cash management and
investments. Mr. Jepson reported that the Village has realized $38,641,000 in income from
investment activity over the last 10 years. This amount is almost equal to the Village's current
yearly budget.
The Accounting Division's responsibilities focus on the recording, disbursing, and reporting
functions of the Finance Department. Payroll and personnel, bank reconciliations, real estate
transfer tax and the annual financial report are some of the activities in this division.
The Customer Services Division is responsible for billing and collecting Village revenues such as
business licenses, vehicle licenses, and water payments. The Village telephone switchboard,
incoming and outgoing mail and duplicating services are also part of this division.
Data entry, computer operation and system development and maintenance are the primary functions
of the Data Processing Division.
Mr. Jepson discussed the efficiency the Finance Department has achieved and pointed out the
staffing over the past 10 years. In 1984/85 the department had 13 full-time equivalent employees
compared to 14 in 1993/94. One of the schedules in the booklet, Comparison of Finance
Department Personnel, compares the Village's Finance Department personnel with six neighboring
communities (Arlington Heights, Des Plaines, Elk Grove, Hoffman Estates, Palatine and Park
Ridge) with similar responsibilities. Mount Prospect has the fewest number of employees. When
population is factored in, Mount Prospect with 2.63 employees per 10,000 residents is once again
lowest among the six communities.
Section two, which reports on department activities, outlines the Finance Department's mission
statement as well as 1992/93 accomplishments and 1993/94 objectives.
Also contained in this section is a copy of the Government Finance Officers Association (GFOA)
Certificate of Achievement for Excellence in Financial Reporting for the fiscal year ended April 30,
1992. The Village has received this certificate each year for the last nine years. The Finance
Department also received the GFOA Distinguished Budget Presentation Award for 1993/94 as well
as in 1992/93. Forty-nine communities in Illinois have received this award.
The third section of the report includes samples of the more than 20 internal reports that the
Finance Department utilizes on a monthly basis to review and track activity in the department. Of
particular concern are the reports on sales tax collections, water and sewer billings and collections,
and fund cash balances which aid in preparing financial forecasts.
The last section briefly discusses current Municipal Finance issues. Mr. Jepson noted some of the
internal issues facing the Village. The major concern is the current revenue/expenditure imbalance.
Preliminary estimates indicate a shortfall of over one million dollars in each of the next three fiscal
years. Mr. Jepson explained that when the 1994/95 projection was completed, a deficit of
$948,200 was estimated; however, based on additional information received from SWANCC on
tipping fees, the deficit may reach $1,148,200. Currently the Village is paying tipping fees of
$26.00/ton. As of August 1, 1994, when the refuse is taken to the Wheeling Transfer Station, the
tipping fee will increase to $39.50/ton.
External finance issues focused on proposed changes in Government Accounting Standards relating
to "basis of accounting" and "disclosure of relevant accounting information." These and other
proposals which would affect reporting requirements could significantly add to the volume of work
in all municipalities.
Mr. Jepson also voiced concern over the numerous unfunded mandates from Federal and State
governments which continue to impose costs on local governments. Examples of these mandates
include the Americans with Disabilities Act, OSHA regulations, and the Family Leave Act.
IV Finance Director's Report
An invitation was extended to all Finance Commission members to attend the grand opening
celebration of the Mount Prospect Police and Fire Headquarters on Saturday, October 2, 1993,
from 10:00 a.m. - 2:00 p.m.
V Adjournment
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The meeting was adjourned at 10:00 p.m. The next meeting is scheduled for September 30, 1993.
Respectfully submitted,
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Carol L. Widmer .
Assistant Finance Director
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