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HomeMy WebLinkAbout08/05/2009 FC minutes FINANCE COMMISSION MINUTES OF THE MEETING AUGUST 5, 2009 VILLAGE HALL BUILDING I. CALL TO ORDER The meeting was called to order at 7:05 p.m. Those present included Chairman Vince Grochocinski and Commissioners Pam Bazan, Wayne Gardner, John Kellerhals, Don Ocwieja, Tom Pekras and Ann Smilanic. Village staff at the meeting was Finance Director David Erb, Deputy Finance Director Lynn Jarog and Administrative Assistant Lisa Burkemper. II. ApPROVAL OF MINUTES After a discussion regarding the minutes of April 28, 2009. The following changes were made: I. Page 2 third paragraph - added for 2009 after the word deficit. 2. Page 2 fourth paragraph - added not after but does. 3. Page 2 sixth paragraph - added the general after !fin last sentence. 4. Page 2 twelfth paragraph - added in the future after 21 months. 5. Page 2 fourteenth paragraph - changed its' to its and added two commas. 6. Page 3 second paragraph - last sentence should read The Board attempts to keep the levy increase at 3.5% to 5% year over vear. 7. Page 3 fifth paragraph - Omit period after Policy and add comma after the word recommended. 8. Page 3 seventh paragraph - added to in last sentence after followed in order. Commissioner Tom Pekras motioned to approve the minutes of April 28, 2009, as corrected. Commissioner John Kellerhals seconded the motion. The minutes were accepted, as corrected. There was a discussion regarding the minutes of June 25, 2009. Two corrections were made to the minutes. The first correction was to page three second to the last paragraph. Replaced of the report with of the comprehensive annual financial report. The second correction was to page four paragraph three. Moved was replaced with move. Commissioner Pam Bazan motioned to approve the minutes of June 25, 2009, as corrected. Commissioner Don Ocwieja seconded the motion. The minutes were accepted, as corrected. III. 2008 ANNUAL AUDIT WRAP UP Finance Director Dave Erb distributed copies of the 2008 Comprehensive Annual Financial Report (CAFR). Mr. Erb explained the representation letter that is addressed to the Board of Trustees and provides an explanation of the scope of the audit. Mr. Erb provided an overview of the Management Letter, which outlines issues that are or could be significant to the fair representation of figures. The two items mentioned were the need for an updated capital assets policy and prepaid bills being recorded as a current year expense instead of being prepaid from the previous year. Mr. Erb said the Village concurs with both of the items mentioned and stated they are not considered significant findings. Mr. Erb briefly discussed the Downtown TIF Report and the Single Audit Report which are prepared along with the annual audit. Mr. Erb advised that the auditors gave the 2008 CAFR an unqualified opinion, meaning the report fairly represents the financial condition ofthe Village. Minutes of the Finance Commission Page 1 of2 August 5, 2009 Commissioner John Kellerhals asked for clarification of business type activities. Mr. Erb stated revenue streams that are meant to support operations are considered business type activities. An example is revenue generated from Water and Sewer. Mr. Erb pointed out a new section included in the 2008 CAFR showing other post employment benefits. These figures show post employment health care costs for current employees as well as retirees. IV. MID- YEAR BUDGET REVIEW Director Erb presented the mid-year budget review noting any major increases and decreases in the revenues and expenditures. Mr. Erb advised that departments have already cut approximately $490,000 from the current 2009 budget and have recently been asked to cut an additional $460,000. Mr. Erb stated that currently the 2010 forecast budget shows approximately a $2 million deficit. This deficit will be lowered through departmental cuts made during the budget meeting process. Mr. Erb advised the 20 I 0 budget is expected to be set at 2009 levels minus the additional $1 million that will be cut from the 2009 budget. V. UPDATE ON PENSION PLANS Director Erb provided two preliminary 2009 property tax levy scenarios based on possible legislative changes related to funding the Police and Fire pensions. Scenario One is based on the assumption that no legislation changes are made related to pensions. Under this scenario, the Police Pension portion of the levy would increase 38.7% and the Fire Pension would increase 29.4%. The total preliminary 2009 levy would increase 9.31 % and would equal $15,820,242. Scenario two assumes a 10% cap on each of the pension funds. Under the second scenario the total preliminary 2009 levy would increase 4.19% and would equal $15,078,857. VI. CHAIRMAN'S REPORT There was nothing to report. VII. FINANCE DIRECTOR'S REpORT There was nothing to report. VIII. OTHER BUSINESS Commissioner John Kellerhals asked if the Commission should be looking at ways to help with the budget deficit. Mr. Erb stated expenditures are being cut and if anyone had any suggestions for cuts to please let him know. IX. NEXT MEETING: THURSDAY, AUGUST 27, 2009 After a discussion regarding the August meeting, Commissioner John Kellerhals motioned to cancel the meeting of August 27, 2009. The motion was seconded by Commissioner Tom Pekras and the motion carried. Commissioner Pam Bazan motioned to adjourn which Commissioner Tom Pekras seconded. The meeting was adjourned at 9:45 p.m. The next meeting is scheduled for September 24,2009. Respectively submitted, Lisa Burkemper Administrative Assistant Finance Department Minutes of the Finance Commission Page 2 of2 August 5, 2009