HomeMy WebLinkAbout03/05/1998 FC MinutesFINANCE COMOMSSION
Minutes of the Meeting
March 5, 1998
The meeting was called to order at 7:17 p.m. Those present included Chairman John Korn, and
Commissioners George Busse, John Engel, Newt Hallman, and Jim Morrison. Also present were
Finance Director Brian Caputo, Deputy Finance Director Carol Widmer, and one member of the
press. Commissioners Tom Pekras, Vince Grochocinski, and Ann Smilanic were absent.
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Chairman John Korn began the meeting with some remarks regarding the role he will play as
Chairman of the Finance Commission. Mr. Korn stated that he has imposed a one -term limit upon
himself as Chairman of the Finance Commission. Mr. Korn also remarked that, as Chairman, he will
attend the Village Board meetings and keep commissioners informed of actions taken by the Board.
The 1998 budget process was briefly discussed and commissioners were encouraged by Mr. Korn to
search for new ways to look at the budget and the budget process. Commissioners discussed what
they thought their role should be in the budget process. Chairman Korn suggested that perhaps the
Finance Commission should meet more frequently and earlier during the budget process. This would
enable the commission to respond to developments during the Village Board's review of the proposed
budget.
Chairman Korn made several suggestions for next year's budget presentations. He recommended that
questions be held until the end of each department director's budget presentation. Chairman Korn
also suggested that directors include references to appropriate sections in the budget book.
Commissioner Newt Hallman asked if Chairman Korn had discussed with the Mayor the role of the
Finance Commission. Chairman Korn indicated that he had not yet spoken with the Mayor but that
he would do so.
George Busse suggested that the Finance Commission meet with the Village Board at the beginning
of the year to receive guidance concerning the issues the Board would like the commission to
consider.
Several members remarked that they felt the Finance Commission should take a long-range view of
Village finances.
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The elections were deferred until the next scheduled meeting when more commissioners would be in
attendance.
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Finance Director Brian Caputo updated the members of the Finance Commission on the General Fund
forecast deficit which was originally projected to range from $425,000 in 1999 to $1.8 million in
2007. A new financial forecast was presented to the commission with a much improved forecast.
Only a small deficit is now projected for 1999 and the next deficit does not appear until 2003. In
2007 the deficit is now projected to be $946,161, almost half of the originally projected amount. The
financial forecast has improved for two reasons. The first of these is the 5 % property tax increases
imposed in 1997 (payable in 1998) and forecast for 1998 (payable in 1999). The second is the
Village's entry into the Intergovernmental Personnel Benefits Cooperative (IPBC) for the purpose
of purchasing employee medical insurance. Membership in IPBC is expected to moderate the rate
of increase in the Village's medical insurance costs. In the prior ten-year financial forecast, aggregate
annual increases of 10% for medical insurance costs were assumed. In the current forecast, 9%
increases are assumed.
Mr. Caputo also discussed the need for a source of permanent funding the Capital Improvement Fund
(CIF). Current projections indicate that the fund balance of the CIF will be sufficient to pay for
necessary smaller scale capital items through the year 2000. At that point, the fund balance will be
depleted if a new source of funding is not secured. One potential source of funding is the transfer of
surplus fund balance from the General Fund to the CIF. Village policy is to maintain fund balance
at 15 % of budgeted expenditures with an additional 1.25 % of the General Fund fund balance
earmarked as a disaster response contingency. Consideration could be given to transferring to the CIF
any General Fund fund balance in excess of the current 16.25 % target at the end of each fiscal year.
Establishing a fund balance target for the CIP would give the Village time to react if the CIF fund
balance begins to decline during a period because no surplus fund balance exists in the General Fund.
A CIF fund balance target of $1 million would be reasonable. That would provide for between 1-1/2
and 2 years of capital purchases.
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A question came up as to whether the Village could establish a fee for satellite dishes installed in the
Village. Mr. Caputo said he would investigate the issue and also ask the Northwest Municipal
Conference to survey its members to see if any other community has established such a fee.
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The meeting was adjourned at 9:00 p.m. The next meeting will be held at 7:00 p.m. on March 26.
Respectfully submitted,
JV
Carol L. Widmer
Deputy Finance Director
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