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HomeMy WebLinkAbout05/28/2009 FC minutes FINANCE COMMISSION MINUTES OF THE MEETING MAY 28, 2009 VILLAGE HALL BUILDING I. CALL TO ORDER The meeting was called to order at 7:07 p.m. Those present included Chairman Vince Grochocinski and Commissioners Wayne Gardner, John Kellerhals, Tom Pekras and Ann Smilanic. Also present were Finance Director Dave Erb, Deputy Finance Director Lynn Jarog and Finance Administrative Assistant Lisa Burkemper. Commissioners Pam Bazan and Don Ocwieja were absent. II. ApPROVAL OF MINUTES The minutes of January 22, 2009 were deferred for lack of a quorum. Commissioner Tom Pekras motioned to approve the minutes of March 19,2009. Commissioner Wayne Gardner seconded the motion and the minutes were accepted as presented. III. FOLLOW UP DISCUSSION TO JOINT WORKSHOP Finance Director Dave Erb provided a summary of the various topics discussed at the April 28th Joint Workshop. Since the Joint Workshop, another month of sales tax receipts has been received. Mr. Erb stated that sales tax figures continue to fall, partially due to the close of the Wal-Mart store for remodeling. Home rule sales tax and the state portion have declined as well. Mr. Erb stated that he expects the state portion will probably come back as budgeted; however, the home rule portion probably will not. Mr. Erb provided a copy of a spreadsheet outlining the departmental discretionary budgets for 2009. The spreadsheet showed three different contingency plans to address shortfalls in the budget. Currently departments have been as1\ed to cut at the contingency # 1 level which equates to a total budget reduction of $491 ,695. The cuts must be completed by the various departments by June 1 st. Mr. Erb stated that any changes to the 2009 budget will directly impact the 2010 budget. Mr. Erb added that staff will have to work hard to balance the 2010 budget and will probably have to hold the 2010 budget to 2008 levels. Mr. Erb outlined the various funding options for members of the Illinois Municipal Retirement Fund (IMRF) as well as the Police and Fire Pension Funds. Currently there is a 10% cap per year on the IMRF rate and there is legislation pending that would cap the Police and Fire Pension Funds at 10% for the next two years. Commissioner Ann Smilanic asked ifMr. Erb would provide the total amount paid to IMRF in 2008 as well as what has been paid in 2009. Mr. Erb stated he would provide the information to the members. IV. REVIEW OF PROPOSED DEBT SERVICE POLICY Mr. Erb stated that staff has recommended the establishment of a Debt Service Policy. Mr. Erb outlined the four sections ofthe policy and asked ifthe members had any suggestions or comments related to the content of the policy. Minutes of the Finance Commission Page I of3 May 28, 2009 Commissioner John Kellerhals asked if staff would consider adding verbiage giving the Village the ability to do an advanced refunding of debt. After some discussion among the members, Commissioner Kellerhals motioned to add that if it is beneficial to take advantage of favorable market conditions and the Village would realize a 2-3% savings, the Village could restructure debt. Commissioner Tom Pekras seconded the motion and the motion carried. Mr. Erb stated he would add the information related to advanced refunding to section 2 as line item H. Commissioner Ann Smilanic motioned to recommend the Village Board adopt the Debt Service Policy as amended. Commissioner John Kellerhals seconded the motion and the motion carried. V. REVIEW OF PROPOSED MONTHLY TREASURER'S REpORT Mr. Erb outlined the documents that make up the new monthly treasurer's report. Contained in the report are the Cash and Investment Position Report, Summary of Cash Activity by Fund Type and the Statement of Investments. Commissioner Ann Smilanic suggested that the beginning of the month total be added to the cash and investment position report. Therefore, you could easily see the beginning of the month balance, any changes during the month and then the ending balance. Mr. Erb stated that the Statement of Investments Report has been changed and reflect the removal of cash type investments; therefore, only certificates of deposit are shown. Commissioner John Kellerhals suggested that the word restricted be used for funds that can not be touched. VI. UPDA TE ON 2008 ANNUAL AUDIT Mr. Erb provided a brief overview of the preparation ofthe 2008 Annual Audit. Currently the audit is in the final review stages. The first draft was received and is currently being reviewed. The audit committee will also review the document before the final report is prepared. The final audit document will be presented to the Finance Commission in July. Mr. Erb stated there were two comments from the auditors regarding the document. The first comment was a suggestion to update the Capital Asset Policy and the second was a suggestion on tracking prepaids. VII. OTHER BUSINESS Commissioner Wayne Gardner asked if Standard and Poor's made any suggestions regarding the Fund Balance Policy. Mr. Erb stated that the Village was able to show compliance with the policy and Standard and Poor's did not make any suggestions regarding it. VIII. CHAIRMAN'S REpORT There was nothing to report. Minutes of the Finance Commission Page 2 of3 May 28, 2009 IX. FINANCE DIRECTOR'S REpORT There was nothing to report. X. NEXT MEETING: JUNE 25. 2009 Commissioner Ann Smilanic motioned to adjourn which Commissioner Tom Pekras seconded. The meeting was adjourned at 9:50 p.m. The next meeting will be Thursday, June 25, 2009. Respectfully submitted, Lisa Burkemper Administrative Assistant Finance Departmel1t Minutes of the Finance Commission Page 3 of3 May 28, 2009