HomeMy WebLinkAbout02/12/1980 FC MinutesS r �a
COrU4ITTE.E REPORT
TO: Mayor & Board of Trustees
FROM: Trustee Ed Miller, Chairman, Finance Committee
Re: Finance Committee Meeting, February 12, 1980
DATE: February 14, 1980
The meeting was called to order at 8:00 p.m. Present were Chairman
Miller, Trustees E. F. Richardson and T. J. Wattenberg; Village Manager
Terrance L. Burghard; Director of Management Services Martha H. Peppler;
Assistant Village Manager Edward A. Geick; Director of Public Works
H. L. Weeks.
L "ram Licens-eA „a ` lication Sweet Alice Texas
The applicant asked that this request be deferred at this time.
They anticipate returning with their application in the future.
Busse Road Watermain
Mr. Burghard presented a brief history of the Busse Watermain
Project, explaining that this item had been under consideration for a
while awaiting financing. Mrs_ Peppler presented the following estimated
end of the year cash position for the Water Fund:
Cash 4-30-79
Revenues FY 1979-80
Expenses FY 1979-80
Bond Expenses FY 1979-80
Estimated Balance 4-30-80
Past commitments -of the fund as follows:
Balance
Bond Required O&M Carryover
Well #17
$ 420,000
+1,968,700
-1,347,736
236,400
$ 804,564
$ 804,564
- 125,000
- 240,000
Balance available for additional projects $ 439,564
The staff then presented the Busse Watermain Project in conjunction
with the proposed Blackhawk Special Service Area Project. Mr. Weeks and
Mr. Geick presented the following scope and costs of the projects.
�m
Busse Road
Golf to Central - 16 inch main, 6840 ft. at $47/ft. $323,000
Twenty hydrants. 20,000
Golf to Willow - 12 inch main, 1440 ft. at $35/ft: 1,000
Four hydrants 4,000
Total Cost of Busse Road $398,000
Blackhawk Area
6 inch main - Cost spread to Special Service Area $324,161
(If the Village does not elect to do Busse
Main at this time, the cost of oversizing
from 6"-16" in this area would be $74,079
to -the Village)
Total Cost of Busse & Blackhawk if done at
the same time $722,161
A.number-of- reasons, _were, cited for doing Busse -Road Main -at -this
time,were that this section -would be necessary for Lake Michigan Water
flow, and -that -while -Busse Road was -relatively open at this -time, -when -it
became -four -lane at a future date would make-construction-.mubh more diffi-
cult and expensive.
The Committee discussed the question of public benefit in the Black -
hawk Special Service Area Project. No public benefit is recommended.
Mr. Miller requested that the two projects be placed on Ae agenda
for the February, 19, _ 1980- with the following recommendations,. for inclusion
in the next budget: A Special Service Area-be°formed in-the-Blackhawk
Area at an estimated cost of $324,161; the Busse Road__Waterman_at an
estimated cost of $398,000. The Committee concurred unanimously.
Audit for FY 1979-80 - Lester Witte and Comte„^ani
The Committee unanimously agreed to recommend that the audit for
the year ending April 30, 1980 be prepared by Lester Witte and Company at
a cost of $12,000 - 14,000. This is the same cost as last year.
Fiscal Policv
c” The staff recommendation for a year-end balance -contingency policy
for the Village was presented. While considerable research has been done,
no clear "Expert" formula was found for what would be an adequate cash
balance for a Village; rather, fiscal policy is generally cited as a
cash-flow consideration within political constraints. The suggestion
was made to use the greatest cumulative cash flow deficit of the previous
fiscal year. For Fiscal Year 1980-81 this would result in a balance of
$900,000, the cumulative deficit for the month of August, 1979. A copy
of the cash flow analysis is attached.
The Committee discussed the matter in depth. Mr. Miller noted that
it was logical to plan a year end balance which would meet the cash flow
requirements of the next year without having to resort to borrowing to
meet cash needs. The final recommendation was that the following formula
3
be used in determining the budget for subsequent years!
Ninety Percent of the Greatest Cumulative Cash Flow Deficit of
the Previous Year.
The Committee concurred that this policy should be discussed during
budget meetings.
Insurance Reimbursement .22d ate
Mrs. Peppler_reported that she met with representatives of the
Department of Insurance and Jim Bliss of GIE to discuss the procedures
for the village obtaining the refund of their $156,000 deposit. As a
result of that meeting, staff is optimistic that the money will be
received during the last week of April.
Mr. Miller announced that because of the budget meetings in
March, the Committee will not have a regular meeting during March unless
important business arises. In that event, a meeting will be held in
conjunction with one of the meetings.
The meeting was adjourned at 9:30 p.m.
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