HomeMy WebLinkAbout08/27/1998 FC MinutesM � � V
FINANCE COMbIISSION D
Minutes of the Meeting
August 27, 1998
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The meeting was called to order at 7:00 p.m. Those present included Chairman John Korn, and
Commissioners George Busse, John Engel, Vince Grochocinsld, Newt Hallman, Jim Morrison, and
Ann Smilanic. Also present were Finance Director Douglas Ellsworth, and Deputy Finance Director
Carol Widmer. Finance Commissioner Tom Pekras was absent.
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The minutes of the June 18, 1998 meeting were approved as presented.
Finance Director Douglas Ellsworth stated that the Village is experiencing a very good year due to
the strong economy. When the 1998 General Fund budget was originally adopted, a surplus of
$377,465 was projected. As of the end of June, due to higher than expected revenues and no major
variances in spending, the General Fund surplus for 1998 is now expected to be approximately
$784,000.
Mr. Ellsworth discussed in detail the significant General Fund revenues. Sales tax and food and
beverage tax receipts are estimated to come in 2.5% above the actual amount received in 1997. State
income tax receipts have continued to exceed projections and are expected to exceed the original
budget of $4,320,000 by $132,000 in 1998.
The Capital Improvement Fund ended 1997 with a $2,148,028 fund balance. However, this fund
basically does not have any sources of revenue other than interest earnings in future years. Planned
expenditures for 1998 of $1.2 million and an additional $932,000 to be spent in 1999 will deplete the
fund balance to $191,000 by the end of 1999.
Expenditures for 1998 in the Water and Sewer Fund will be approximately $100,000 less than
originally budgeted.
Mr. Ellsworth reviewed the revenue projections for the 1999 budget. Mr. Ellsworth is forecasting
a 2.5 % increase over 1998 receipts for sales tax, food and beverage tax, and utility tax. A 3 %
growth rate has been projected for state income tax. The original 1999 revenue forecast for the
general fund was $25,127,640; however, the current forecast of $25,568,640 is $441,000 higher than
originally projected.
The commission members discussed the projected 1998 surplus in the General Fund. Several
commissioners supported the use of the surplus to reduce the deficit in the Vehicle Replacement Fund
and to provide a source of revenue for the Capital Improvement Fund. The commission members did
not support the idea of a rebate to taxpayers due to other critical funding needs.
A motion was put forth and seconded which stated that any General Fund surplus at the end of 199a
should be applied to reduce the level of underfunding in the Vehicle Replacement Fund and the
Capital Improvement Fund. The motion also recommended that the property tax increase be reduced
from the current level of 5 % to the previous level of 4 %. The motion passed unanimously.
IV. Other Business
The September 24 meeting was canceled due to the upcoming budget meetings, which will begin on
October 15, 1998. The schedule for the budget meetings was changed to include an additional
meeting. The new schedule is as follows:
Thursday, October 15 7:00 p.m.
Wednesday, October 21 6:30 p.m.
Thursday, October 29 6:30 p.m.
Thursday, November 5 7:00 p.m.
V. Chairman's Report
Chairman Korn relayed to the members of the Finance Commission some of the actions taken at
recent Village Board meetings. Among the items Chairman Korn reported on was the increase in the
911 line charge from 30 cents to 75 cents and information on the recent downtown redevelopment
discussions.
VI. Adjournment
The meeting was adjourned at 9:30 p.m. The next meeting is scheduled for Thursday, October 15
at 7:00 p.m.
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Respectfully submitted,
Carol L. Widmer
Deputy Finance Director