HomeMy WebLinkAbout01/26/1984 FC minutesMINUTES
FINANCE COMMISSION
January 26, 1984
I. Roll Call
Mayor Krause called the meeting to order at 7:30 P.M. Commissioners present
were: Richard Bachhuber, Paul Davies, Newt Hallman, Maxine Holderried,
William Holloway, Tom Pekras, and Ann Smilanic. Also present were Mayor Carolyn
Krause, Trustee George Van Geem, Village Manager Terrance Burghard, and Director
of Finance David Jepson.
II. Budget Schedule
Mayor Krause informed Commission members that a chairman had not been appointed
and asked for volunteers for this position. After some discussion, it was
determined that a chairperson would be selected by the members at the beginning
of each meeting. Commission members decided that they would review the Village's
84/85 budget as a committee of the whole, rather than assigning specific areas
to sub -committees. The following dates and budget subject areas were scheduled:
February 9, 1984 - Revenues, Village Manager's
Office and Management Services
February 23, 1984 - Community Development, Health
Department and other Agencies
March 8, 1984 - Public Works Department
March 22, 1984 - Fire Department, Police Department,
Trust and Debts
Mayor Krause suggested that the Commission identify trends, both positive and
negative, and provide a report to the Board of Trustees. Trustee Van Geem
recommended that the Commission key on specific areas.
III. Introduction of 1984-85 Budget
Village Manager Burghard presented an overview of the budget. The following
points were emphasized.
1. The 1984-85 budget at $22,320,045 is approximately 15% higher
than the 1983-84 budget. However, this increase reflects
accounting changes in the areas of Special Service Area debt,
Pension Funds, and the establishment of a Risk Management Fund.
Moreover, Lake Michigan Water construction costs in the Water and
Sewer Fund accounts for a significant amount of the increase.
2. The budget provides for one additional full-time employee in Code
Enforcement and one part-time employee in Health and Human
Services. Modest salary increases have been provided for.
3. There are no proposed increases in fees except for a previously
approved water rate increase. Property taxes are expected to
decrease slightly, and there is a possibility of an abatement
of the debt service levy in December 1984.
IV. Insurance and Pensions
Finance Director Jepson explained the accounting and budget changes required
due to the adoption of self-insurance for liability, worker's compensation and
property coverages. A separate Risk Management Fund was established on January 1,
1984 to record all insurance premiums and claims. Current liabilities due to
IRMA have been recorded in the 1983-84 budget. In the future, all reserves for
claims reported but not paid will be recorded in the Risk Management Fund.
Additionally, medical insurance contributions from employees, retirees, and the
Library will be recorded as revenue rather than as an offset of expenditures.
A separate schedule of Police and Fire Pension Fund actuarial information as
supplied by the Illinois Department of Insurance was given to Commission members.
It was reported that an independent actuary would be engaged to provide more
current actuarial information.
V. General Discussion
Commission members expressed appreciation to Manager Burghard for the budget
message and the format of the 1984-85 budget. They requested the following
information from the staff:
1. Cash flow projections
2. Reconciliation of 83/84 budget as adopted by the Village Board
in April 1983 and modified budget amounts in the 84/85 budget.
3. Material on Water Fund projections.
Commission members also requested that they be called on the day of Finance
Commission meetings.
VI. Adjournment
There being no further business, the meeting was adjourned at 8:50 P.M.
Respectfully submitted
David C. Jepson
Director of Management Services