HomeMy WebLinkAbout05/26/1994 FC minutesFINANCE COMNIISSION
Minutes of the Meeting
May 26, 1994
The meeting was called to order at 7:10 p.m. Those present included Chairman Richard Bachhuber,
Commission Members John Engel, Vince Grochocinski, James Morrison, Ann Smilanic, and Earl
Sutter. Also present were Finance Director David Jepson, and Assistant Finance Director Carol
Widmer. Commission Members Newt Hallman and Tom Pekras were absent.
The 1994/95 Budget Recommendations were accepted as presented.
Finance Director David Jepson distributed a copy of a March 21, 1994 memo to the Village Manager
which discussed the Impact of the New Solid Waste Contract on the 1994/95 Refuse Disposal Budget.
Mr. Jepson reported that seven bids were received for the refuse contract and Arc Disposal Company
was the lowest overall bidder. Based on the Arc bid, the 1994/95 Refuse Disposal Budget of
$2,952,195 was reduced $455,000 to $2,497,195. The revised 1994/95 Refuse Disposal budget is
actually $212,805 or 7.9% less than the 1993/94 Refuse Disposal Budget of $2,642,750. The
reductions in the 1995/96 and 1996/97 budgets will be even more remarkable because the new
contract will only be in effect for nine months of the 1994/95 fiscal year.
The original bid was for a three year period; however, because the contract terms were so favorable
the Village Board approved an extension of two additional two years.
Because of the favorable refuse disposal contract, Trustee Clowes made a suggestion that the 1993
property tax levy be abated by $300,000. Mr. Jepson analyzed and discussed the options listed
below in his May 6 memo to the Village Manager:
1993 Tax Levy as Filed - This model assumes that the 1993 levy will not be abated and the
1994 levy will be increased 4%.
Option 1 - This option assumes the 1993 levy will be abated $300,000 and the 1994 levy will
be reduced $150,000.
Option 2 - This model assumes the 1993 levy will be abated $150,000 and the 1994 levy will
be reduced $300,000.
Option 3 - This option assumes that the 1993 levy will be abated $175,000 and the 1994 levy
will be reduced $250,000.
It was determined that the third option would be in the best interests of the Village. This option calls
for an abatement of $175,000 in the 1993 property tax levy and a $250,000 reduction in 1994
property taxes. The Village Board approved this change.
IV Change in Village's Fiscal Year
During initial discussions about "Mount Prospect 2000" the Village Manager requested information
on the advantages and disadvantages of changing the Village's fiscal year to a calendar year. Finance
Director David Jepson reviewed the advantages and disadvantages in a memo to the Village Manager
Mike Janonis dated May 6, 1994.
The most significant advantage to the Village was the fact that this change to a calendar year would .
allow the budget year to coincide with the tax year. This means that the budget hearing and the tax
levy hearing would take place on the same date and would concentrate the decision making process
regarding tax revenues and expenditures in the same time period.
The change to a calendar year would eliminate the confusion that results from using the first
installment of the tax levy to finance one fiscal year and the second installment to finance the next
fiscal year. Also, the change would bring the Village into compliance with one of the conditions of
the SWANCC agreement. The agreement requires a municipality that is financing refuse collection
by property taxes to have the tax levy in place prior at the start of the fiscal year.
The advantages far outweigh the few disadvantages which would result from this change and so it
was the recommendation of the Village Manager and the Finance Director that the Village proceed
with this change. The Village Board concurred with this recommendation.
V Other Business
David Jepson advised the members of the Finance Commission that the Request for Proposal for new
computer software would be mailed shortly. Bids will be opened on July 8, 1994.
V Adjournment
The meeting was adjourned at 9:52 p.m. The members of the Finance Commission agreed that
future meetings should begin at 7:00 p.m. instead of 7:30 p.m.
Respectfully submitted,
Carol L. Widmer, Assistant Finance Director
CLW/sm