HomeMy WebLinkAbout10/02/1980 FC MinutesVillage of Mount Prospect
900 S. Emerson
Mount Prospect, Illinois 60056
TO Mayor and Board of Trustees
FROM: Trustee Ed Miller, Chairman, Finance Committee
DATE: October 2, 1980
Re: Finance Committee Meeting.
The meeting was called to order at 8:00 P.M. in the Village
Manager's office of the Village Hall. Present were Chairman Miller;
Trustees E. F. Richardson and Theodore J. Wattenberg; Village Manager
Terrance L. Burghard; Director of Management Services Martha H. Peppler.
Also present during the meeting representative. of the Rauenhorst Corp-
oration, Chris Noon, representative of Advanced Systems, Inc. Rohit
Patel, and representatives of Lester Witte, Laurence Salasche, Irwin
Lyons, and Keith Gambrel.
Industrial Revenue Bond Request
Mr. Chris Noon and Mr. Rohit Patel presented a request from Advanced
Systems, Inc./U.R.S. for the issuance of seven million dollars in
Industrial Revenue Bonds for the purchase and furnishing of Building
Number Six in the Kensington Center. They presented a video tape ex-
plaining ASI/URS; ASI is a company which makes training programs and
video tapes. The bonds would be issued by the $M million parent`
company URS and would be purchased by the Ohio Company. The rate paid
for these IRB's would be approximately ten percent compared to 13% for
a conventional mortgage.
The Committee reviewed the proposed changes to the building
and the expanded parking plan. The building is being considered to
provide space for future growth for ASI; it will include a video tape
studio, office and warehouse facilities. Approximately 250 employees
would work in this building.
The Committee agreed to report out favorably on this applica-
tion at the next Board meeting. The applicants requested that a draft
memorandum of agreement be prepared for that meeting.
SINCE THIS MEETING, ASI HAS WITHDRAWN THIS APPLICATION AND
FORFEITED THE $5,000 APPLICATION FEE.
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Review of the Annual Audit
Laurence Salasche, partner of Lester Witte and Company, lead
the discussion of the report of the Annual Audit of the year ending
April 30, 1980. Mr. Salasche explained the new audit format which was
in conformance with the new combined accounting reporting standards
for municipal audits. Within this report Lester Witte expresses an
unqualified opinion on all funds except the Library .Fund and the "Old"
Special Assessment Funds. They expressed no opinion on the Library Fund
because it was audited by another firm and the records were not made
available to the Village. The records of the "Old" Special Assessment
Funds are unauditable and no opinion was expressed on these funds.
Mr. Salasche next presented the Management Letter explaining
that it is a tool for discussion and improvement. Mrs. Peppler pre-
sented a memo which responded to this letter. A copy of that memo is
attached as a part of these minutes. As noted in this memo, some of
the items have been corrected already; many of the other comments will
be remedied by the major changes which will occur with the new computer
system. The auditors will be reviewing the new systems as they are
developed.
The Committee moved to accept the audit and to present it at
the next Board Meeting. Chairman Miller asked that a representative
from Lester Witte be present at that meeting.
Liquor Hearin
The Committee agreed to hear an item not on the agenda.
Mr. Bernie Lee representing Bucking Bull, Inc., requested
that the liquor license that was relinquished by the Melissa -
Melinda Corporation, upon their close, be transferred back to the
former owner Mr. Barone. He wishes to re -open at that same
location. The Committee noted that there had been no problems when
Mr. Barone had held the license. The Committee concurred with this
request for transfer of license; Chairman Miller asked that the
Mayor be informed of this concurrence so that she may take any appro-
priate action to issue the license.
Boesche Pro ertY Acquisition uisition�Financin
...
Mrs. Peppler presented a report on the proposed financing of
the Boesche property (copy attached). The Committee agreed that the
Parking System Revenue Fund should pay for this property out of fu-
ture revenues rather than any general village funds used. The Com-
mittee agreed that the parking system fees should be raised to seventy-
five cents per day and a bank loan should be secured to purchase the
Boesche property. The Committee requested that the loan be presented
in ordinance form at the next meeting so that the money will be avail-
able for the closing of the Boesche property on October 15, 1980.
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The Committee will report out on the fee increase at that meeting
with the ordinance increasing the fees to be presented for first
reading on October 21, 1980.
Committee postponed discussion of other agenda items until next
Committee Meeting.
Meeting adjourned at 10:15 P.M.