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HomeMy WebLinkAbout07/27/2006 FC minutes FINANCE COMMISSION DRAFT DRAFT MM INUTES OF THE EETING J27,2006 ULY CC–VH OMMUNITY ENTER ILLAGE ALL I.CO ALL TO RDER The meeting was called to order at 7:03 p.m. Those present included Chairman Charles Bennett and Commissioners John Kellerhals, Tom Pekras and Ann Smilanic. Also present were Village Manager Michael Janonis, Director of Finance David Erb and Deputy Director of Finance Carol Widmer. Commissioner Lee Williams arrived shortly after the meeting started. II. AM PPROVAL OF INUTES Commissioner Tom Pekras motioned to approve the minutes of June 22, 2006. Commissioner John Kellerhals seconded the motion. The minutes were accepted as presented. Chairman Charles Bennett welcomed Mr. Wayne Gardner to the meeting. Mr. Gardner is a four-year resident of Mount Prospect who is interested in becoming a member of the Finance Commission. III.Mid-Year Budget Review Finance Director David Erb began his remarks by indicating that revenues for most categories are up but there are several that continue to lag from previous years. He further stated that there are no extraordinary General Fund expenditures expected in 2006 and that 2006 marks the final General Fund transfer of $315,000 for Village Hall financing. Mr. Erb projected a budget surplus for both 2006 and 2007 and projected that the General Fund fund balance will reach 32.0% at the end of 2007. In his review of General Fund revenues, Mr. Erb stated that the sales tax estimate for 2006 has been reduced by $599,500; however, the real estate transfer tax continues to be strong and is expected to have a favorable variance of $323,000. State income tax, other licenses, permits and fees and utility taxes are all projected to have favorable budget variances for 2006. The projected revenue for ambulance fees has also been reduced due to the two to three month time required until the invoices are processed by the insurance companies and the lateness in starting the billing in 2006. Chairman Bennett asked what we attribute the sales tax decline to and Mr. Erb replied it was related to store closures and the lag time until another store is opened. Mr. Erb stated that there is no money for mid-level capital purchases. The Village needs approximately $750,000 per year to cover such projects. There is a necessity for a permanent funding source for those capital projects. Mr. Erb said that the Water and Sewer Fund remains strong due to the changes made in 2004. He also stated that the Motor Fuel Tax is the only state shared revenue that is down. For the 2007 Forecast Mr. Erb stated that revenue estimates appear to be reasonable and there is a projected surplus of $573,000 in the General Fund. The major 2007 issues include the CIP funding source, space needs evaluation for the Police and Fire Departments, emergency preparedness and four new staff positions. The Information Technology Division has requested an additional information systems analyst, the Community Development Department has requested two new housing inspectors for nuisance abatement and crime free housing and the Police Department has requested a crime free housing coordinator, a civilian position. r. Janonis said one of the areas to be discussed during the budget meetings will be the potential excess fund balance in the General Fund. He stated that options include using the monies for Station 14 and/or transferring the excess into the Capital Improvement Fund. Ann Smilanic asked if the Village could possibly tax the tank farm and Mr. Janonis said we had looked into that possibility a number of years ago and were told we could not tax the fuel. Mr. Erb gave a brief update of the status of new revenues for 2006. They include the resident ambulance billing, the $0.01 per gallon municipal motor fuel tax increase which increases the total tax to $0.02 per gallon and the $75 per year refuse billing. IV.Chairman’s Report There was nothing to report. V. FD’R INANCE IRECTORS EPORT There was nothing to report. VI. OB THER USINESS There was nothing to report. VII.Next Meeting: August 24, 2006 Commissioner Tom Pekras motioned to cancel the August 24, 2006 meeting. The motion was seconded by Commissioner Ann Smilanic and passed. Chairman Chuck Bennett suggested that the agenda for the September 28 meeting include exploring CIP funding. The meeting was adjourned at 9:35 p.m. Respectfully submitted, Carol Widmer Deputy Finance Director Finance Department 2