HomeMy WebLinkAbout12/01/1994 FC minutesFINANCE COA04LLSSION
Mrintes of the Meeting
December 1, 1994
The meeting was called to order at 7:05 p.m. Those present included Chairman Richard Bachhuber,
Commission Members John Engel, Vince Grochocinsla, Newt Hallman, Tim Morrison and Ann
Smilanic. Also present were Finance Director David Jepson and Assistant Finance Director Carol
Widmer. Commission members Joe Etchingham and Tom Pekras were absent.
The minutes will be accepted at the next scheduled Finance Commission meeting to be held
February 23, 1995.
Mr. Jepson reviewed the Village's debt issues beginning with 1973. Debt has been used extensively
by the Village to finance large projects such as flood control, street improvements, Police and Fire
Headquarters and the Public Works Building and the Village has maintained a Aa rating from
Moody's since the 1973 issue.
Mr. Jepson explained that the Village utilizes six sources to finance its debt. Property taxes are
utilized to pay the general obligation bonds for the Library and Village Hall, the Public Works
facility and the Police and Fire Building. The Downtown Redevelopment projects are financed from
property tax increment funds. The Home Rule Sales Tax is the source being used to finance two
types of debt. Both flood control projects and also street improvements are paid from this source.
A portion of the Public Works Facility Bonds and certain water improvement bonds are being paid
by the Water Fund and lardy there are two special service areas which were formed to pay for the
Prospect Meadows Water Company and improvements to George, Albert and School Streets. Total
indebtedness of the Village (principal and interest) is $37.9 million.
Mr. Jepson discussed Village debt ratios compared to 1994 Medians as published by Moody's. The
Village's debt per capita is $552 while the median in Moody's is $629. A community the size of
Mount Prospect can support that level of debt. Mr. Jepson went on to explain that if a community
reaches debt per capita of $1,000 then this would reach a level of concern. The Village's debt per
estimated full value (F.FV) or 'fair' market value of all taxable property is 1.1 %. Again, this is
well below the median of 1.7%.
The Finance Commission members were pleased with the report both for its completeness and
understandability.
M 117,717 1
There is no meeting scheduled for January. The 1995 Fight -month budget will be delivered on
February 14 and the Finance Commission budget review will begin on February 23 with an
overview and presentations from Administration, Finance Depart and Human Services.
The meeting was adjourned at 7:40 p.m.
Respectfully submitted,
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Carol L. Widmer, Assistant Finance Director
CXW/M
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