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HomeMy WebLinkAbout11/13/1997 FC MinutesFinance Commission Minutes of the Meeting November 13, 1997 I. Call to Order The meeting was called to order at 7:00 p.m. Those present included Chairman Richard Bachhuber, John Engel, Vince Grochocinski, Newt Hallman, John Korn, Jim Morrison, and Ann Smilanic. Also present were Village Manager Michael Jannis, Finance Director Brian Caputo, Assistant Finance Director Carol Widmer, Public Works Director Glen Andler, and Deputy Public Works Director Sean Dorsey. Commissioner George Busse arrived at 7:25p.m. Commissioner Tom Pekras was absent. II. Approval of the October 30. 1997 Minutes The minutes of the October 30, 1997 meeting were approved as amended. III. Review of the Proposed 1998 Village Budget Public Works Director Glen Andler and Deputy Public Works Director Sean Dorsey presented the Department's proposed 1998 Budget. Mr. Andler began his presentation by highlighting 1997 accomplishments for each of the department's five divisions: Streets/Buildings, Forestry/Grounds, Engineering, Water/Sewer and Solid Waste. Mr. Andler noted that the proposed 1998 Budget, excluding capital improvements, reflects a 4% increase over 1997 and will provide approximately the same level of service as in 1997. Mr. Andler pointed out that the department utilizes contractual services when it is cost- effective to do so and in 1998 almost $4.5 million, or just over 27% of the total operating budget of S 16.2 million, is for contractual services. Deputy Public Works Director Sean Dorsey reviewed the department's performance measures. The measures included the cost per mile of water and sewer main maintenance, a comparison of single family refuse collection and disposal fees, as well as departmental staffing. Mr. Andler highlighted the responsibilities of each of the divisions and briefly discussed selected funding requests for those divisions. Leaf and snow removal, street lights for the Algonquin, Dempster, Busse area, and vehicle replacements were discussed in detail. Finance Director Brian Caputo presented information on the Village's 1998 Debt Service Budget. Mr. Caputo noted that there are three categories of debt within the Village: general obligation bonds, installment contracts, and special service area bonds. Each of the general obligation bonds have specific sources of revenue dedicated to the payment of the principal and interest on the bonds. Those sources of revenue are property taxes, incremental property taxes (for the downtown redevelopment bonds), the first quarter cent of home rule sales tax (for the flood control bonds), the second quarter cent of home rule sales tax (for the street improvement bonds), and water revenues. A proposed 1998 bond issue of $3,450,000 was also discussed. That issue consists of $1 million for property acquisition, $2 million for street improvements, and $450,000 for Weller Creek flood control projects. The Village's insurance program was also reviewed. Mr. Caputo explained the Village's self- insurance retention for the property and casualty insurance. As far as medical insurance, the Village offers both a HMO and a self-funded indemnity plan for Village and Library employees and retirees. Retirees and Library employees pay the full premium for medical insurance coverage. The Village purchases medical stop -loss insurance for claims over $60,000. Mr. Caputo stated that the Village's medical claims experience in both 1996 and 1997 has well below the amount budgeted. Based upon this favorable experience, the amount budgeted for medical claims for 1998 is $1,800,000 compared with $1,865,000 budgeted for 1997. The Risk Management Fund is projected to have a fund balance in excess of $2 million at the end of 1997. This is well above the recommended fund balance of $1 million. Atransfer of $750,000 from the Risk Management fund to the Vehicle Replacement Fund (VRF) is being proposed for 1998. A comprehensive study of the VRF indicated that the fund is seriously underfunded. The estimated fund balance of the VRF at the end of 1997 is $1.6 million and the recommended fund balance is $5.4 million. IV. Adjournment The meeting was adjourned at 10:30p.m. The next meeting is scheduled for November 20, 1997. Respectfully submitted, P� '� a, 4,Cz-� Carol L. Widmer Assistant Finance Director 2 VILLAGE OF MOUNT PROSPECT FINANCE COMMISSION 1998 Budget Recommendations The Finance Commission met on October 16, October 30, and November 13, 1997 for the purpose of reviewing and discussing the proposed 1998 Village Budget. During these meetings, presentations were made by department and certain division directors concerning their respective 1998 departmental budget requests. The Finance Commission met on November 20, 1997 to discuss the entire budget to formulate their recommendations to the Village Board. The Finance Commission generally supported the proposed 1998 Budget as submitted. Items of special interest are listed below: 1. The Finance Commission supports a $750,000 fund balance transfer from the Risk Management Fund to the Vehicle Replacement Fund. The vote was 6 - 1. 2. The Finance Commission supports the Village policy of maintaining the Special Service Area #5 (SSA #5) tax levy at approximately the same level as the Village's obligation to the Joint Action Water Agency (JAWA) for fixed costs for debt service. The vote was 7 - 0. 3. The Finance Commission opposes designating the amount of $300,000 in the Village's General Fund fund balance (that amount in addition to the recommended level of 15% of expenditures) for a disaster contingency fund. The vote was 2 in favor of the disaster contingency fund and 5 opposed. 4. The Finance Commission supports transferring a total of $1 million in "excess" fund balance from the General Fund to the Capital Improvement Fund as reimbursement for monies taken from the Capital Improvement Fund to pay for the Street Improvement Program. The vote was 7 - 0. 5. The Finance Commission supports reducing the amount to be paid to the Historical Society in 1998 from $35,000 to $17,500 and recommends consideration of additional reductions in the future. The vote was 7 - 0. 6. The Finance Commission recommends that the number of issues of the Village newsletter be reduced from six to four per year. The vote was 4 - 3. 7. The Finance Commission recommends that the merit bonus plan be retained in the proposed 1998 Budget. The vote was 4 - 3. 8. The Finance Commission recommends limiting the programs on Cable TV to just the Village Board meeting and the ZBA hearings. The vote was 5 - 2. 9. The Finance Commission recommends eliminating Village -sponsored holiday lighting from all locations except the train station. The vote was 5 - 2. 10. The Finance Commission recommends that a joint meeting be held with the Village Board to discuss the 1999 Forecast Budget. The vote was 7 - 0. Respectfully submitted, Ann Smilanic Acting Chairperson