HomeMy WebLinkAbout10/29/1998 FC MinutesFINANCE COMMISSION
Minutes of the Meeting
October 29, 1998
I. Call to Order
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The meeting was called to order at 6:30 p.m. Those present included Chairman John Korn and
Commissioners John Engel, Vince Grochocinski, Newt Hallman, Jim Morrison, Tom Pekras, and
Ann Smilanic. Also present were Assistant Village Manager David Strahl, Finance Director Douglas
Ellsworth, Public Works Director Glen Andler, Deputy Public Works Director Sean Dorsey, Village
Trustee Irvana Wilks, and Deputy Finance Director Carol Widmer. Commissioner George Busse was
absent.
II Discussion Regarding Previous Meeting's Presentations
Minutes to be provided by the Secretary of the Finance Commission.
III. Review of the Proposed 1999 Village Budget
(Public Works, Non -Departmental)
Public Works Department
Deputy Public Works Director Sean Dorsey began the presentation by discussing the Department's
1997 performance measures. Sean pointed out that a new survey question regarding contractual tree
trimming was included in this year's survey.
Glen Andler briefly highlighted the department's 1998 accomplishments. The accomplishments
included the reconstruction of 3 miles of streets and resurfacing of 5.6 miles of street. Other
accomplishments included receiving the Tree City Award from the National Arbor Day Foundation
for the 13" consecutive year and beginning the second year of a three-year project to perform selective
tree maintenance and creek bed cleaning along Weller Creek.
Mr. Andler presented the 1999 Proposed Budget for the Public Works Department. The department
consists of six divisions: Administration, Streets/Buildings/Parking, Forestry, Engineering,
Water/Sewer, and Refuse Disposal. The proposed budget for 1999 for Public Works is $16,028,505,
which is 4.5 % higher than the 1998 budget of $15,338,077. Mr. Andler highlighted several items
in the 1999 budget which, if approved, would significantly increase or decrease the level of spending
from 1998. In the Streets/Buildings/Parking Division one of the items Mr. Andler discussed was
crack filling which would increase from $35,000 in 1998 to $52,000 due to the accelerated street
resurfacing and reconstruction programs. Sidewalk construction was another item, which would
increase significantly. $10,000 was budgeted in 1998 and in the 1999 budget, $50,000 is being
requested.
In the Engineering Division traffic signal replacement is scheduled to increase from $10,000 to
$95,000 in order to fund traffic signal equipment replacement along Route 83, Euclid and Sycamore,
and various other locations.
The Water/Sewer Division is proposing increasing the water mains replacement from $150,000 in
1998 to $280,000 in 1999 to fund water main replacements along Route 83 between Golf Road and
Prospect Avenue. These replacements must be performed in conjunction with IDOT's plans to begin
reconstruction of this roadway in the fall of 1999.
At the conclusion of his remarks, Mr. Andler responded to several questions raised by the members
of the Finance Commission. Mr. Andler informed the commissioners that the refuse contract with
Arc Disposal would expire on April 30, 2000. The Village's policy of small water rate increases
every year rather than waiting for a few years and instituting a large rate increase was discussed as
was the Village's assistance to residents impacted by the FEMA flood plain map.
Non -Departmental
Debt Service
Mr. Ellsworth presented the non -departmental portions of the budget. There are three types of
outstanding debt. The first is the Village's general obligation bonds, which are paid from several
different sources. The sources used are property taxes, TIF funds, Home Rule Sales taxes, and water
revenues. The second form of outstanding debt is the TEPA Installment Loans which were used to
pay for various flood projects and are being paid from the first quarter cent of Home Rule Sales Tax.
The third type of debt is the Special Service Area bonds. The special service area bonds are paid
from taxes received from the residents and businesses within the special service areas themselves. Th
Village's total outstanding debt as of December 31, 1998 will be $27,582,779.
Mr. Ellsworth also presented information on the 1999 proposed debt issues, which are expected to
total $10,171,350. Bonds in the amount of $9,315,000 are being proposed to provide funding for the
downtown redevelopment project and an IEPA loan for the Maple/Berkshire Project in the amount
of $856,350 will be received in 1999.
Pensions
The proposed 1999 budget for pension obligations totals $2,985,370. Of that amount, 92% or
$2,742,020 are direct payments to retirees.
Insurance
Mr. Ellsworth reported that the Proposed 1999 Budget for the Village's insurance programs would
be $3,178,560, or 3.2% less than the 1998 budget. Mr. Ellsworth went on to review the types of
coverage the Village has in place for both the property and casualty and medical insurance programs.
Community & Civic Services
The 1999 Proposed Budget for Community & Civic Services is $209,172. This budget supports
community groups, 4' of July and other civic events, holiday decorations, and the blood donor
program.
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Commissioner Ann Smilanic asked if the Village has contingency plans in case of a recession. Mr.
Ellsworth responded that the Village has several ways to cope with a recession: healthy fund balances
to draw on; a conservative approach to revenue projections; and a diversified revenue stream, as well
as reductions in expenditures if necessary.
Mr. Strahl, in response to an inquiry regarding Village personnel, indicated that he would provide
a history of the growth of the employee population over the last 10 years.
IV. Adjournment
The meeting was adjourned at 10:15 p.m. The next meeting will be held at 7:00 p.m. on November
5, 1998.
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Respectfully submitted,
Carol L. Widmer
Deputy Finance Director