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HomeMy WebLinkAbout10/19/1995 FC MinutesFINANCE COMMISSION Minutes of the Meeting October 19, 1995 Call to Order The meeting was called to order at 7:05 p. m. Those present included Chairman Richard Bachhuber, Commission Members John Engel, Joe Etchingham, Vince Grochocinski, Jim Morrison, and Ann Smilanic. Also present were Village Manager Michael Janonis, Finance Director David Jepson, Assistant Finance Director Carol Widmer, and one member of the press. Commission Member Tom Pekras arrived at 7:30 p.m. Commission Members Newt Hallman and Frank Wolfinger were absent. II Presentation of 1996 Budget Budget Overview - Village Manager Michael Janonis Mr. Janonis began his presentation with a few observations about the current fiscal year. In contrast to projections a few years ago, 1995 will end with the Village in sound fiscal condition. Revenue projections appear on target, expenditures have remained within budget guidelines and year-end fund balances will meet or exceed target amounts. Much of the emphasis for 1995 was on economic development and redevelopment and also on urban problems. Economic development efforts resulted in additions and improvements to the Randhurst Shopping Center with the addition of Home Depot and an expanded Jewel/Osco. In the Kensington Business Center several world-class businesses have located there in the past year and several new residential housing projects including the Shires of Clock Tower Place and Creekside at Old Orchard were started. Urban problems such as crime, poor property maintenance and family/social needs also received emphasis from staff. Recent efforts have included a Student Resource Officer Program at River Trails Middle School, and a problem solving officer being assigned to the Boxwood area in an effort to bring community policing to the area. Many social outreach programs for minorities and at -risk young people have also been started. The Village is constantly looking for ways to improve operating efficiency as well as to privatize and regionalize services and programs. These objectives were accomplished by combining the Inspection Services Department and the Planning Department, replacing two sworn firefighter positions in the Fire Prevention Bureau with civilians, and ongoing regional agreements such as the Joint Action Water Agency (JAWA), the Solid Waste Agency (SWANCC) and membership in the Northern Illinois Crime Lab. The 1996 Budget continues the emphasis on multi-year planning with a 1997 Forecast Budget in addition to the 1996 Proposed Budget. The budget also creates cost centers within departments by allocating vehicle lease payments, vehicle maintenance payments, health insurance premiums and the cost of pensions to each department. The proposed 1996 Budget of $48,569,165 represents an increase of 8.46% on an annualized basis over 1994-95 actual expenditures of $42,566,523. Included in the budget are provisions for $5.58 million in public improvements including flood control projects, street resurfacing and reconstruc- tion, Village Hall renovation and Melas Park Improvements. $1.5 million in Capital Equipment acquisition and replacements are also in the budget. This amount includes the replacement of vehicles and hardware and software for a geo-based data system. Mr. Janonis stated that the proposed 1996 Budget represents a plan that should promote strong property values and provide an attractive quality of life and at the same time maintain a reasonable cost for municipal services. This budget along with the forecast 1997 Budget will help attain the goal of developing a decision-making process that addresses current issues as part of a more comprehensive long-term plan. Mr. Janonis identified several of the longer-term issues. They included maintaining strong property values by improving the Village's infrastructure and providing solid core services, monitoring and managing both Village debt and overlapping debt, pursuing economic development and redevelop- ment opportunities, identifying a revenue source for the long-term funding of Capital improvements and controlling increasing medical insurance costs. Members of the Finance Commission discussed the Problem -Solving officer in Boxwood and other efforts to help resolve neighborhood problems. Additionally, discussion focused on regional efforts to contain costs and the implementation of a five year plan to address medical insurance costs. Budget Revenues - Finance Director David Jepson Mr. Jepson began the discussion of Village revenues with a brief overview of the budget document itself. The six main sections of the budget (Introduction, Budget Summaries, Revenues, Departmental Expenditures, Non -Departmental Expenditures and Appendix) were each highlighted. Mr. Jepson focused his remarks on the 1996 Budget Summary which is found on page 1 of the Budget Summary section. The graphics on this page highlight the 1996 proposed budget of $48 million and summarize the sources of the revenues and the proposed expenditures. Total revenues for the 1996 Fiscal Year are estimated at $51.8 million. This figure includes $3.6 million of bonds that will be issued in 1996 but will not be fully expended until the following year. Mr. Jepson pointed out that since 1990, the Village's annual increases in property tax levies ranged from 5 % to 2.7 %. The expenditure graphic on the same page shows expenditures by service area. Public Works represents $14,947,335 or 30.9% of total expenditures of $48,569,165 and Public Safety will account for 28.1 % or $13,649,790 of the total. Another summary, which is found on pages 12 - 15 of the Budget Summary Tab, documents estimated fund balances as of the end of 1996 and 1997. The chart indicates the ending balances in each of those years compared to the recommended fund balance. Most of the funds will meet or exceed recommended balances in both years. These schedules are important tools in long-range planning for the Village and the fund balances are monitored regularly. Property taxes are the largest single source of revenues for the Village. For 1996 property taxes will represent 16.2% of total revenues or $8,382,300. Sales tax is the second largest source of revenue for the Village and is expected to reach $6,350,000 in 1996. In the 1980's, sales tax increased at approximately 71/2% per year; however, in the past five years sales tax has not shown any increases. A significant increase is anticipated in 1996 and can be attributed to the opening of a Home Depot store and an expanded Jewel Food Store at the Randhurst Mall. Other taxes are projected to increase significantly in 1996. Mr. Jepson explained that the increase in other taxes is due to new revenues approved by the Village Board in 1994. These include a utility tax, an additional 1/4C. home rule sales tax and an increase in vehicle license fees. In 1994-95 revenue from other taxes was $11,503,773. In 1996 other taxes are projected to provide $13,563,400 in revenue for an increase of $2,059,627. Mr. Jepson also discussed the graphic on page 20 of the Budget which illustrates the Distribution of the 1994 Property Taxes. That graphic shows that the Village of Mount Prospect receives 8.9 % of each tax dollar. In comparison, education receives 64%, Cook County 10.7% and the Mount Prospect Park District 5.9%. Human Services Department - Human Services Director Nancy Morgan Human Services Director Nancy Morgan presented the 1996 proposed budget of $476,105. The Department, which consists of seven full-time and two part-time employees, provides social services, nursing/health services and senior services for Village residents. Ms. Morgan pointed out that some of the services and programs provided also result in revenue to the Village. Some of these programs include flu shots and home delivered meals. It is estimated that over $35,000 in revenue will be generated by these programs. One change being proposed for the 1996 budget is the phasing out of the paid volunteer blood donor program. The Blood Donor program will continue with other organizations and volunteers administering the program in Mount Prospect as they do in other communities. In 1996 the funding will be at 50% of the previous level with the funding phased out in 1997. Ms. Morgan used an actual case history to illustrate the types of services and assistance available to residents. Ms. Morgan also emphasized that having local contacts and sources helps cut through red tape and can be more effective than using outside agencies. The importance of the volunteers and the hours they contribute was stressed by Nancy Morgan. A total of 222 volunteers were recently honored and an estimated 7,500 hours will be contributed by 3 the end of the year. Many of the programs offered are run by the volunteers and do not require staff time. In response to several questions from the Finance Commission members, Ms. Morgan stated that utilization of the Human Services Department is increasing but that she felt staffing is at an adequate level to provide the services needed by the community. About 89% of staff time is spent with senior citizen programs. Senior citizens represent about 12 % of Mount Prospect's population. This figure is projected to increase to about 19% in the year 2000. Village Administration - Village_Manager Michael Janonis Public Representation The proposed 1996 Budget of $78,575 for Public Representation provides for the salaries of the Mayor, Liquor Commissioner, and six Trustees. This budget also provides for regional and national organizational memberships. Village Administration The 1996 proposed budget for the Village Manager's Office is $489,875. This includes administrative, legal services and personal services. The budget does not represent any changes in staffing or expenditures. Communications Division The Communications Division proposed 1996 Budget is $231,430. The budget includes a provision for professional services in order to continue franchise negotiations ($13,500) and $25,150 for equipment purchases. Village Clerks Office The Village Clerk's Office has a proposed 1996 budget of $209,575. This amount reflects an increase in the number of issues of the Village newsletter from four issues to six issues each year and the related increases in postage, printing and paper supplies. Finance Department - Finance Director David Jepson The Finance Department's proposed 1996 Budget of $1,073,800 represents 2.2% of the total Village Budget. Included in the budget is $160,000 for the Village's liability insurance program. Mr. Jepson reported that the installation of the computer hardware and software has been completed and the network is in place and working. The payroll, cash receipts, accounts payable, general ledger, and budgeting software are in use and other applications are being converted. One change in personnel is being proposed. A part-time position in data processing has been recommended to assist in network administration and computer programming. 4 The Finance Department added the responsibility for the collection of parking tickets during 1995. In an effort to improve the collection of parking tickets, a change was made in the way penalties are assessed in order to provide an incentive to pay the ticket. The first penalty on a ticket was actually reduced from 100% to 50%. However, if the ticket remains unpaid after a delinquent notice is mailed, an additional penalty equal to the original ticket is added. Mr. Jepson expects the Village to realize an additional $35-$40,000 in revenue because of increased collection efforts. III Adjournment The meeting was adjourned at 10:35 p.m 7:00 p.m. CLW/sm 5 The next meeting will be November 2, 1995 at Respectfully submitted Carol L. Widmer, Assistant Finance Director