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HomeMy WebLinkAbout11/14/1996 FC MintuesFINANCE CONMUSSION Minutes of the Meeting November 14, 1996 Call to Order The meeting was called to order at 7:00 p.m. Those present included Chairman Richard Bachhuber, Commission Members John Engel, Joseph Etchingham, Vince Grochocinski, Newt Hallman, John Korn, James Morrison, Thomas Pekras, and Ann Smilanic. Also present were Village Manager Michael Janonis, Finance Director Brian Caputo, Assistant Finance Director Carol Widmer, Public Works Director Glen Andler and Deputy Public Works Director Sean Dorsey. In addition, the following Public Works staff members were present: Superintendents Rory O'Donovan, Paul Bures, Sandy Clark, and Jim Guenther, Village Engineer Jeff Wulbecker, and Solid Waste Coordinator Lisa Angell. II Approval of Minutes The minutes of the October 31, 1996 were approved as presented. III Discussion of the Proposed 1997 Village Budget Public Works and Capital Improvements Public Works Director Glen Andler began his 1997 Budget presentation by introducing the Public Works staff present at the meeting. After highlighting some of the department's 1996 accomplishments, Mr. Andler presented the proposed 1997 Public Works Budget of $15,691,511. Each of the six divisions within Public Works were discussed in terms of their 1997 service plans. Mr. Andler began with the Street/Building Division. The Street/Building Division, in addition to maintaining Village streets and providing the maintenance for 15 publicly owned buildings, is proposing to replace the failing plumbing system and an emergency generator at Fire Station //12. There are also plans to resurface the parking lot at Fire Station //14. The Forestry/Grounds Division is proposing to begin a multi-year program to replace the Village entrance markers. $2,700 is budgeted for this purpose in 1997. Also, additional monies have been requested to replace plants around public buildings that were destroyed due to severe weather in 1996. 1997 will be a busy year for the Engineering Division. A total of $3.7 million is proposed to be spent on road reconstructing and resurfacing. This includes the normal $1.3 million plus the proceeds from a proposed $2.5 million bond issue. The plans call for 3.7 miles of reconstruction and six miles of resurfacing. In the Water/Sewer Division, $295,000 is being requested to complete the replacement of the Lake Briarwood water main and $158,000 is being requested to renovate and repair the underground water storage tank at Booster Station b4. This is the 2nd phase of a multi-year plan to renovate the Village's booster stations. The Refuse Disposal Division will continue to develop community educational programs on composting, mulching and other solid waste reducing programs in 1997. The Vehicle Maintenance Division is requesting replacement of several pieces of equipment which have been identified in accordance with the Equipment Replacement Schedule. Prior to recommending replacement, each unit will be thoroughly evaluated using life -cycle cost analysis. There are also several flood control projects scheduled this year including installation of a sanitary relief sewer at SeeGwun and Milburn and storm sewer improvements in Addison Court. Also, 1997 will be the first phase of a three-year project ($50,000 per year) to perform selective tree maintenance and creek bed cleaning along Weller Creek. Discussion of the Public Works budget followed the presentation. There were questions regarding recycling and the replacement of the emergency generator. General comments were also made concerning some of the other Public Works responsibilities. Debt Service Finance Director Brian Caputo reviewed the Village's outstanding debt. Currently there are three types of debt: general obligation bonds, installment contracts, and special service area bonds. The general obligation bonds have five sources of revenue dedicated to provide the funds for repayment. As Mr. Caputo explained, the bonds are general obligations of the Village, but they are actually being funded by sources such as home rule sales tax, TIF funds and water revenues rather than by property taxes. Currently, there are $5.8 million in general obligation bonds outstanding which will be paid from property taxes, $6.5 million in flood control bonds to be paid from the first quarter cent of Home Rule Sales tax and $4.8 million in street improvement bonds to be paid from the second quarter cent Home Rule Sales tax. In addition, water fund revenues finance $1.2 million bonds used to pay a portion of the Public Works building and other improvements. There are also two Special Service Areas still outstanding. A $2.5 million bond issue is proposed for 1997. The proceeds of the 1997 issue would be used to accelerate the street improvement program. Insurance Mr. Caputo presented an overview of the Village's Casualty and Property Insurance Program. He reviewed the various types of policies in force and the types of protection offered by each policy. Mr. Caputo answered some general questions by members of the Finance Commission regarding the Village's overall insurance program. - Included in the Property and Casualty Insurance Program is a request for $30,000 for a Village -wide fixed asset inventory system. A fixed asset inventory has not been conducted by the Village since 1991 and the auditors recommended that the Village's records be updated. Currently there is no system in place to track and record fixed assets and that deficiency would be remedied with the fixed asset inventory system which is proposed. Mr. Caputo also described the Village's Medical Insurance Program. He explained that the Village offers its employees the choice of an HMO and a traditional indemnity plan. There has been a trend in recent years for employees to choose the HMO. The Village's indemnity plan is largely a self-insured plan. As part of the Village's indemnity plan coverage, the Village retains the first $60,000 of coverage and has a stop -loss policy to cover large medical claims. In 1997 Public Works and non-union employees will be increasing the amount they contribute to their insurance. PA VILLAGE OF MOUNT PROSPECT FINANCE COMMISSION 1997 Budget Recommendations The 'Finance Commission met on October 17, October 31 and November 14, 1996 for the purpose of reviewing and discussing the proposed 1997 Village Budget. During these meetings, presentations were made by department and certain division directors concerning their respective 1997 departmental budget requests. After the final presentation on November 14, 1996, the Finance Commission discussed the entire budget to formulate their recommendations to the Village Board. The Finance Commission generally supported the proposed 1997 Budget as submitted. Items of special interest are listed below: 1. The Finance Commission opposes the formation of a Merit Pay Pool which would provide lump -sum bonuses to certain non -bargaining unit employees based upon performance. The vote on the proposal was 4 in favor of the pool and 5 opposed. Some commissioners are opposed to the concept of merit pay on philosophical grounds; others have concerns about how a merit pay plan would be administered. 2. The Finance Commission recommends that budgeted expenditures of the Communication Division not exceed the estimated revenues to be received from the Cable TV franchise fees. The vote was 8 - 1. 3. The Finance Commission supports the addition of an administrative Community Service Officer in the Police Department. The vote was 8 - 1. 4. The Finance Commission recommends that the purchase of a cholesterol machine be shifted from the 1998 forecast budget to the 1997 budget because estimated revenues would offset the cost of the machine. The vote was 9 - 0. 5. The Finance Commission recommends that the Fire Training Academy be reinstated in the proposed 1997 budget because its estimated revenues would offset its expenditures. The vote was 9 - 0. 6. The Finance Commission opposes continued funding of downtown white Christmas lights. The vote was 3 in favor of continued funding and 6 opposed. 7. The Finance Commission supports "Option 4" for the Village's street improvement program and recommends that the program be funded on a pay-as-you-go basis rather than through the issuance of bonds. The vote was 9 - 0. Respectfully submitted, Richard A. Bachhuber Finance Commission Chairman Although the budgeted amount for HMO costs in 1997is 13 % higher than 1996, this is due to increased participation in the HMO. The per capita HMO charge is expected to increase only 3 %. The underlying per capita cost of the indemnity plan is expected to increase about 11 % to 12%. The 1997 budget for indemnity medical claims reflects a 13 % increase over the 1996 estimated actual amount in order to provide a contingency. The formal presentations for the proposed 1997 Budget concluded and the members of the Finance Commission discussed the budget and formulated their recommendations in the attached document. IV Adjournment CLW/® The meeting was adjourned at 11:15 p.m. The meeting in December has been cancelled. 3 Respectfully submitted, C oL. Widmer Assistant Finance Director