HomeMy WebLinkAbout2335_001MINUTES,
COMMITTEE OF' THE WHOLE
FEBRUARY 14# 191814
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followed, by the Committee o the Whole in conducting its
meetings.
I,II, MINUTES,
The, Minutes ofthe Committee of the Whole meeting of
January 24,, 19814, were accepted and f I'led.,
It,
IV, CITIZENS TO BE HEARD,
There being, no CiLtiozens pr,es,ent at the meeting', des ming
to, make any presientation before the Committee of the
01 0
Whole,, the Mayor moved, on to, the next item of bu,si , i-n,e si si
V 19814-198151 B,UD,GET HEARING
V illage Manager Terrance , Burghard presented an ov'erv:*Lew
of the Budget indlo'cating that the total Program of
#1 0 0
Serwices for fil"Is-cal, year 19814-1985 is estimated at
32,o, IQ Iol ThIs" 'c' ,�pares, to a Budget of last year of
$19, 38 1 111,10 0 0 . 'The proposed 1 5% increase 2L S runded through
annn
e -s' or pl, ed r, e,"Venues to meet the obj ectives
May 'd Board of Trustees 3"-n prior
b
I "hy the "or ana
,sed b'
years#
Major 'items anti*ci*pated 'in the Budget are Water System
-improvements, Flood Control improvements, significantly
S 0 a 10
increased Roadway improvements and an anticipated rate
SO 0
increase in the Refuse Contract,
The Village Manager also pointed out that 'the Budget as
recomnended proposes a moderate decrease 1_n the General
Fund Tax Levy, a decrease 'in the overall Village Tax
Rate and an anticipated rebate of Property Taxes in
December of 1984. There are no new taxes, fees or service
chargesproposed in the Budget.
The Committee of the Whole then reviewed charts prepared
by the Village staff showing category breakdown of
40
expenditures, distribution among various classifications
*les and capital
of expend iture personnel s taf f ing prof i
expenditure listings. The Village Manager pointed out
0
that the staffing 'pattern proposed in the Budget 3'_ s, s t 3"L
some eight fewer employees than the Village had 'in 1978.
D id Jepson, Finance i
av D'rector, th�hn reviewed with the
Committee of the Whole the antici, pated revenues and the
financial position of the Village of M6dnt Prospect. Mr.
Jepson pointed out the anticipated usage of surpluses
accunmlated through Special Service D18 trict #5, Motor
Fuel Tax 'Fund and the Flood Control Bond Issue,
There then followed a general discussion on the part of
the Mayor and Board ,of Trustees inquiring about the
proposed Water Rate changes, the methods, of assuming growth
in retail sales tax and changed Budget formats,
Village Manager Terrance Burgharld revl*ewed the proposed
Program of Services for Public Representation and Village
Administrat ion . Thi s 31*_ncluded expend3"-'tures for AdvI-sory
Boards and Commissions, the Mayor and Board of Trustees,
Village Manager's off ice, General Counsel, salary adminig-
tration, Village Prosecutor and Special Counsel,
The Con&ittee of the Whole *Inquired as to the Budget needs
for Special Counsel in representing VillAge residents in
proposed water and sewer rate increasesby Citizens
ut*lot* , 7
1,11 les of Illl*noi'*s,,
Finance Director Dave Jepson then reviewed the programs
conta'ned On the Department of Management Services including
ing, data processl*ng, cash management, 'insurance
account*
and the,Village Cler'k's office,
. .......... .
"a" 3"M2/y "i", J]�
71
Mr Jepison, pointed, out that there are moderate increases
01 al 0, 0,
in various categori" es of expenditure and highlighted the
01 V
first payment and research, necesisiary, to, incorporate a
new, telephone s'ys'tem for the Village, new fi-11,101ng systems
41
and some, added computer, equipment,,,
0,
Consi'derable time was, spent on reviewing the Insurance,
Programs, of the Village and comparing the proposed costs
0 $1
to the Village's coists, 3 , -n IRMA and to, historical, costs,,
0,
Insurance Program, 'is, to, ble esit,abl,is,hed *in a Ri-sk Management
account and will cover General Liability$ Workers"
Compensation, and Health and Life Insurance. Mr., Jepis'oin
00, AN,
also, presented additional data to, the Committee of the
Whole showing, the, s'olur,ce and usage e of funds,, explaining,
the accounting changes and projecting increases for the,
01
forthcoming year., Additionally, a report from Duncan
and Associates, our administrator for, the Self- Insured
# I "'ttee, of' the
Health Program,, was distributed to the Comni
0, 01 Is 0,
Whole, giving comparisions of the, Village"s cost to indus,trly"s,
0,
standards and to other communitieso, one larger and one
smaller than the Village of Mount Pro s'pect ,
0, 01 01
A general discus's ion, ensued, regarding inurace, the
vSillage's SafetyProgram and, the Village Newsletter
NO, '01
Administration wa,s, also, presented inf oirma,t ion from
Trustee Arthu,r aggregat"ng1the return on investment
of Vilage
l, cash, balances' since' 1,91810I. Trustee Art ' hur
01 mmi
inquired and the Cottee of the Whole concurred that
01 .1
the staff' should, look morclois,ely, at its, Budget projections
'0, e 0,
for, investment *income,,, Additionally, the, staff was
401
requested to, evaluate the advertising component olf thp
0, 0 0, 0,
Village Newsletter. If advertising is, not, producing
S 0 # 4, 0
suf'f ici tient funds or, is, coins,uming, an 3-nordi na,te amount of
01
im $1 � 0,
t 0' e then the adverlti,s,ing, portion should, ble abandoned
01
Mayor Krause then siu=,a,rized the activity for the, evening,
reviewing various, aspects, ofthe pig poked Budget, and rle-
0,
stated, the forthcoming Budget Hearings to, be carried 13k'-'v,e
on Cable TVW
Vi, DOWNTOWN FACADE,' PROGRAM
Kenneth Fritz ,I Director o C'o uni-ty Development,, introduced
the Committee, of' the Whole, to, the recommended, architectural
f 'i0,
rm, to "implent the Downtown Facade, Improvement Program,
0, 0me01
Mr., Fritz Pointed out that, this Plrlogram, had, been adopted
by the Mayor and Board of' Trustees previously by Ordinance
and it will provide Grants, to, business owners, and building
owners, who desire to upgrade their facade. The Grants'will ble funded bly the Community Development Bilo,ckGrant,
Plroig,r�am and will offer matching, Grants, up, to, $5,000 for
r,#
interested, parties .1,
3-
The Committee of the Whole reviewed a rendering prepared
V
by Planning' Resources, Inc.,. the reCOMMeTided firm#
Mr. Fritz pointed out that they had sol " c
a- 1,,,te,d prQposals
from eight architectural firms, T,,'Ii,,,ose st' 1"" a 19' then,
were re i
f*ned to three prospects a d each vasterv*ewed.
3-n
One f irm proposed a fee of p''Ius ex, ens-�,,
es an.dthis
firm was rejected because of the'':o'Pen-end4d nature of
the elk'pe
Tk;,e if
tem,,,, Anoth,ev :i-rm proposed an upset'figure
9
"Of 5 01
e, d as being too expensive,
J,
L
eco,,,,mmrs inx_
Th d""t "" `t,:,hh,'-t the Village hi're Planning
"S"t4l f"'r
r ,a
)eaqu 'iczes
f" e"d- f e of $6,500'for the
n
*delines.
Mont, f thii�, pl'
an gUl
The Committee of the Whole concurred in thi* s recommenda-
0
tion and directed the staff to place this '"Item on the
next Village Board Agenda,
VII. SOLICITATION REGULATIONS
The Vill,qge, Manager revi* ewed the legal opinion prepared
by Dave,Ndwt�at, Village General Counsel. Mr. Newman
pointed 'o"U"It the U. S. Supreme -Court as well as
numerous other Courts have thr1o'-ug,,,:h,, their ru'l,i:
n
ngs
pir 'de�n,,c,e overr, Jo,ca,a_ I
that, First Amendment Freedl5tn'-ss,'t,ako(� ,ece
14qtl
a
ru
iz P c,an propo re,as, ble
bid' dr
th t b
contr, In
9 cannot,, f or
u reaajoiri
e'The
.Ate so " tt
uIT,
a
Or IS a d ca
s
d, t,
ned
solicitors must re&t with the individual homeowner and
property owner and solicitors who violate that decision
J*
can then be taken, to Court for trespass Violations,
After some further general discussion, the Committee of
the Whole directed that the Ordinance as recommended by
the Village attorney be presented at the subsequent Village
Board meeting for the normal procedure.
VIII,MANAGER'S REPORT
The Village Manager reported that the bidsfor the O'Hare
Transmisalon Main are to be opened on February 15 and
after those bids are tabulated informat* '11 be
P ion wi
presented to the Mayor and Board of Trustees,
IX, ADJOURNMENT
0
There being no further business, the meeting was adjourned
at 9.-45 p.m.
Respectfully submitted,
TER ,.NCE L. BURGRD
Village Manage-J,_,
TLB/rcw
"I T
ILI
77 7_
77777 11
Village of Mount Prospect
Mount Prospect, Illinois
TO: Terrance L. Burghard, Village Manager
FROM: David* c. Jepson, Finance Director 17
DATE: February 24, 1984
SUBJECT: Investment Income
Attached is a copy of a schedule listing investment income, budgeted and
actual for the budget years 1980/81 - 1984/85. This schedule was prepared by
Trustee Arthur and distributed on February 14, 1984. It i s a good schedul e
and helps to illustrate the significance of investment income in the Village
budget.
In addition to individual fund amounts, the schedule also shows the total
amount of income actually received, each year compared to the total amount
budgeted. These totals are summar.ized below:
Budget
Budget
Actual
Year
Income
Income
Difference
80/81
$ 8425000
$153533090
$ 5115090
81/82
1,2875750
1,619,832
332,082
82/83
13460,5700
158355587
3745887
83/84
1,528,500
2,50625500 (1)
-534,000
84/85
250435730
2,052,500 (1)
182,770
(1) 1983/84 estimated
I- W
At first glance, it appears from the above figures that investmen t income has
been budgeted very conservatively. However, in many funds it i's very difficult
to predict the amount of investment income with any real degree of accuracy.
Some of the reasons for this statement are outlined below. -
1. During the period of 1980-82 interest rates, both short-term
and long-term, reached unprecedented highs. At one point,
short-term rates were at 20% and long-term rates around 15%.
It would be unrealistic to project those kinds of rates a
year in advance.
2. Delays in completing construction projects cannot be predicted
in advance. An example is the Flood Control Project which was
originally included in the 82/83 budget and has been re -budgeted
Terrance L. Burgharoi
Investment Income
Page 2
in the 84/85 budget.
significantly affect
earned,
These types of unplanned cash balances
I
the amount of investment income actuall]
3. Increases or decreases in funds available to invest during the
budget year can affect income earned. The timing of major
purchases as well as construction expenditures affect the amount
of funds available. Also, consideration must be given to the
draw down of a fund's cash balance during the year. An example
of this is the fact that even though we anticipate a cash
balance in the General Fund of $1,200,000 at the end of the
budget year, that amount will be reduced to less than $100,000
during the month of February,
It should be pointed out that any additiona
used for the purpose for which the fund was
include: 1) Interest earnings in the Flood
used for that purpose; 2) Investment income
were used to abate taxes in that fund
the Police and Firemen's Pension Funds will
ments. I
0
investment income earned will be
established. Examples of this
Control Construction Fund will be
earnings in Special Service Area
in 19831- and 3) All earnings in
5
be used for future pension require -
I believe the amounts budgeted for 1984/85 are as realistic as they can be at
this time. We are expecting our cash balances to be reduced approximately
$1,000,000 during the year and this fact was taken into consideration.
Additionally, uncertainties regarding interest rates have influenced our
projections'.
As indicated in the presentation of the Finance Department's budget,, a separate
program to monitor cash management has been established. We realize that
every dollar earned from investments is one dollar less that must come from
another source. Accordingly, we will continue working to get the best yield
possible on all available Village monies.
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