HomeMy WebLinkAbout09/29/1994 FC minutesFINANCE COMMISSION
Minutes of the Meeting
September 29, 1994
The meeting was called to order at 7:09 p.m. Those present included Chairman Richard Bachhuber,
Commission Members Joe Etchingham, Vince Grochocins1d, Jim Morrison and Ann Smilanic.
Chairman Bachhuber introduced Joe Etchingham, the newest member of the Finance Commission.
Mr. Etchingham was appointed to fill the vacancy created when Commission member Paul Davies
moved out of the Village. Chairman Richard Bachhuber also announced that Finance Commission
member Earl Sutter had resigned and moved out of state.
II Accept Minutes of July 28. 1994 Meeting
The minutes of the July 28, 1994 meeting will be accepted at the October meeting.
III April 30. 1994 Annual Financial Reoort
The Village's Comprehensive Annual Financial Report for the Fiscal Year Ended April 30, 1994
was presented to Commission members by Finance Director David Jepson. The report contains
three sections: Introduction, Financial and Statistical. The Financial section is the audited section.
The Introduction, which contains the Finance Director's transmittal letter, and the Statistical section,
which contains 10 year trend information on revenues, expenditures, tax levies and debt as well as
other demographic and statistical information, are unaudited.
Mr. Jepson focused on the transmittal letter stating that the letter is intended to provide an overview
and contains basic information about the Village, the Accounting System and Budgetary Control,
General Governmental Operations, Debt Administration, Cash Management and Investments and
the economic climate of the community itself.
Mr. Jepson first reviewed the results of the General Governmental Operations (the General, Special
Revenue and Debt Service Funds) and noted that over 60% of the Village's revenues come from
various taxes. One notable increase in those taxes was in the property tax increment from the TIF
district which was expanded in January of 1993. Taxes increased from $364,580 in 1993 to
$504,283 in 1994, an increase of 38.3%. Sales tax revenue which was $5,662,794 has not shown
an increase in the past six years and decreased $202,541 or 3.5 % in 1994. Although Total
Revenues and Other Sources decreased $891,366, or 3.5%, total revenues which were $24,548,701
actually increased $1,124,779 or 4.8%.
Expenditures and other financing uses for general governmental functions totaled $27,244,668, an
increase of $4,240,035 or 18.4 % over 1993. A significant portion of that increase was due to the
in -substance defeasance of $1,430,000 of the Series 1992A bonds and costs of $355,405 associated
with an advance refunding. The balance of the increase in Debt Service expenditures is the result
of increased principal payments. Other areas reflecting significant increases were in Public Safety
and Highways and Streets. The increase in Public Safety of $1,309,838 is due to higher personnel
costs and benefit provisions. The increase in Highways and Streets is due primarily to a $500,000
increase in the resurfacing program.
Mr. Jepson reported that the Village's bonded debt has been rated Aa by Moody's Investor Service
since 1973 and that rating was confirmed for the Village's General Obligation Bonds, Series 1994A
and B which were issued in March of 1994.
The Water and Sewer Fund recorded a net income of $149,805 for the fiscal year that ended
April 30, 1994. The Water and Sewer Fund continues to remain strong with net working capital
of $2,786,202 and cash and investments totaling $2,202,479.
The Risk Management Fund reported total fund equity of $1,533,429 as of April 30, 1994. The
Village's self-insurance program which includes the administration of claims for property losses,
general and automobile liability, workers' compensation and employees' and retirees' medical
benefits is accounted for in the Risk Management Fund.
The Police and Fire Pension Funds have achieved full funding as of May 1, 1993. The Police
Pension Fund is at 105.4% and the Fire Pension Fund 107.7%. It is the Village's intention to
continue to maintain full -funding in each fund.
The Village has placed a high priority to ensure that all monies due the Village are collected and
deposited as promptly as possible. The Village pools the cash of various funds and as a result
almost every fund has investment income regardless of the fund's size. Total interest income earned
in all funds during the fiscal year that ended April 30, 1994 was $4,213,823 compared to
$4,134,841 for the previous fiscal year for an increase of $78,982.
The economic outlook for Mount Prospect remains favorable. The Village is located on the eastern
edge of the "Golden Corridor" which extends along Interstate 90 from O'Hare to Elgin and over
the past twenty years, this particular area has been one of the fastest growing areas in the entire
Midwest. Over the last ten years, Mount Prospect itself has added over $120 million in residential
construction value and over $200 million in commercial and industrial construction to its tax base.
Some of the major development projects currently in progress include 139 new condominiums and
7,500 square feet of retail space in Target Area G of the Downtown Redevelopment District as well
as two new buildings under construction and two existing buildings planning major expansions in
the Kensington Center. In addition a Home Depot store has received zoning approval with
construction scheduled to start by the end of 1994 at the Randhurst shopping Center.
Mr. Jepson noted that with increasing property values, access to transportation, outstanding schools
and parks, and economical municipal services the Village will continue to attract residents,
employers and customers. These factors coupled with the commitment by Village officials to
address emerging issues have enabled Mount Prospect to achieve its strong financial position.
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IV Other Business
Mr. Jepson advised the Finance Commission that the upcoming budget would be an 8 -month budget
in preparation to the change to a calendar year in 1996.
The next Finance Commission meeting scheduled for October 27 will discuss Village debt. There
will be a combined November/December meeting December 1 and the 6 -month budget review will
be on the agenda.
Also, February 23, March 9, March 23 and April 6 are the dates scheduled for the Finance
Commission review of the 1995 budget.
V Adjournment
The meeting was adjourned at 9:00 p.m.
Respectfully submitted,
Carol L. Widmer, Assistant Finance Director
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