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HomeMy WebLinkAbout04/24/2007 COW minutes (workshop) FINANCIAL PLANNING WORKSHOP DRAFTDRAFT MM INUTES OF THE EETING A24,2007 PRIL VHB ILLAGE ALL UILDING I.CO ALL TO RDER The meeting was called to order at 6:30 p.m by Mayor Irvana Wilks. Village Board members present at the meeting were: Timothy Corcoran (7:25), Paul Hoefert, John Korn, Richard Lohrstorfer, Michaele Skowron, Michael Zadel and Arlene Juracek (elect). Finance Commission members present at the meeting were: Chairman Charles Bennett and Commissioners Wayne Gardner, Vince Grochocinski, John Kellerhals (6:40), Tom Pekras and Ann Smilanic. Staff members present were: Village Manager Michael Janonis, Assistant Village Manager Dave Strahl, Director of Finance David Erb, Deputy Director of Finance Carol Widmer, Finance Administrative Assistant Lisa Burkemper, Deputy Director of Human Services Jan Abernathy, Chief of Police John Dahlberg, Fire Chief Mike Figolah, Deputy Fire Chief John Malcolm, Director of Community Development Bill Cooney, Deputy Director of Community Development Ellen Divita, Information Technology Director Joan Middleton, Director of Public Works Glen Andler and Deputy Director of Public Works Sean Dorsey. II. RC OLL ALL Roll call was taken by Mayor Irvana Wilks for the members of the Village Board and Finance Commission. III.FPW INANCIAL LANNING ORKSHOP Village Manager Michael Janonis began the meeting with a brief outline of the agenda. Director of Finance David Erb then continued with an outline of the topics presented in the Long Range Financial Planning Workshop book that was distributed to the Village Board, Finance Commission and various staff members. Mr. Erb first discussed 2006 year end results. Mr. Erb reported that as of 12/31/06 the general fund had a surplus of $1,290,692 and a fund balance of 30.9%. Mr. Erb then discussed the first quarter of 2007 and advised that the projected surplus at year end is expected to be $514,000 and fund balance is expected to remain at 30.9%, which is approximately $2.3 million above the 25% benchmark. Mr. Erb advised that the 2008 year end forecast is expected to show a surplus of approximately $167,000 and fund balance is expected to be 29.9%. Mr. Erb began the discussion on the five-year Capital Improvements Plan by stating that $57.4 million would be needed to complete all the projects listing in the five-year CIP plan. There was a brief discussion regarding the space needs study. Results of the study were broken down into 2 phases. Phase one includes the new fire station and the emergency operations center. Phase two includes the police department needs. Mr. Erb then discussed the five-year forecast and stated that on average revenues are projected at a 3% annual growth whereas expenditures are expected to increase by 5% annually. Mr. Erb also mentioned that by 2008 the CIP fund would have a projected deficit of $2,070,804 if nothing further was contributed to the fund. He also stated that the parking funds have been running at a deficit for many years. Mr. Erb reiterated that the CIP and parking funds currently have no dedicated funding source. Finance Commission Chairman Charles Bennett then discussed the Commission’s recommendations for funding the CIP as presented to the Village Board in a memo dated April 19, 2007. The Commission first suggested that the Board adopt a policy whereas excess funds above the 25% general fund balance be earmarked specifically for the CIP fund. Second the Commission suggested increasing the home rule sales tax rate to 1% and finally the Commission suggested that staff be directed annually to look at Village services and procedures and identify any cost savings that may potentially exist. r. Erb continued with a discussion on pending state legislation that may affect the Village negatively. Senate Bill 1429 is being considered in Springfield and would impose the Streamlined Sales and Use Tax Agreement which would switch sales tax distribution from origin sourcing to destination sourcing. This change could have a negative impact on the ability to forecast future budgets. There was also a brief discussion related to the House Bill 750 which is related to the gross receipts tax. Village Manager Mike Janonis led a discussion regarding the surplus in the general fund fund balance. Mr. Janonis offered several projects in which monies could be earmarked. The first project was the replacement of the Village phone system which is outdated and no longer being serviced. Another project discussed was the development of fire station 14, and the possibility of earmarking monies for the initial planning of the project. The last item discussed involved transferring some of the excess fund balance to the CIP fund. There was a brief discussion regarding adding an additional one cent per gallon to the motor fuel tax for the benefit of the CIP fund. IV. A DJOURNMENT Mayor Irvana Wilks thanked the Finance Commission for their contributions and also thanked staff for their attendance. Trustee Paul Hoefert motioned to adjourn which Trustee Michaele Skowron seconded. The meeting was adjourned at 8:28 pm. Respectfully submitted, Lisa Burkemper Administrative Assistant Finance Department 2