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HomeMy WebLinkAbout07/27/2000 FC minutes FINANCE COMMISSION Minutes of the Meeting July 27, 2000 Village Hall Building I. Call to Order ~ The meeting was called to order at 7:00 p.m. Those present included Ch~rman John Kern and Commissioners Charles Bennett, George Busse, Vince Groehocinski, Betty Launer, Tom Pekras and Ann Smilanic. Also present were Village Manager Michael lanonis, Finance Director Douglas Eilsworth and Deputy Finance Director Carol Widmer. H Approval of Minutes The minutes of June 22, 2000 were approved as submitted with a notation from Commissioner Ann Smilanie of a typographically error on page five. There was a discussion regarding excused absences and non-excused absences being reflected on the minutes. Upon further review, the Finance Commission unanimously decided that the minutes would not reflect an excused versus non-excused absence. IH Review of 1999 Comprehensive Annual Financial Report Finance Director Doug Ellsworth began by stating that the Financial Statements were audited by FERS and have received an unqnalified opinion. Mr. Ellsworth also stated that generally the Village is in very good financial shape. Revenues in the General Fund for the year 1999 were $26,440,459. Revenues exceeded projections by 3.61% or $921,316. Furthermore, General Fund expenditures of $24,783,822 came in at $208,768 under budget. IV Mid-Year Budget Review Finance Director Doug Ellsworth began by discussing the Village's fiscal position six months into the year. The review allows the Village to identify vari~ees and make corrections and decisions for the balance of the current year as well as provide valuable information as we begin planning the 2001 Budget. Mr. Ellsworth also discussed concern over the Infrastructure Maintenance Fee, which is a revenue source that provides approximately $420,000 each year. Currently, the wireless based communication companies are in court suing over the validity of the maintenance fee. The wireless- based companies provide approximately $150,000 of the $420,000 collected each year. Commissioner Ann Smilanie asked Mr. Ellsworth if we still have Franchise Agreements with any of the companies, and if we would still be able to collect monies in case the court ruled the maintenance fee invalid. Mr. Ellsworth stated that we do have some agreements with the larger companies. Chairman John Kom asked Mr: Ellsworth about the possibility of changing the Real Estate Transfer Tax from a buyer's charge ~o a seller's charge. Mr. Ellsworth suggested Village Manager Michael Janonis address the issue. Mr. lanonis stated that the Village is presently researching the subject and is looking to make a recommendation. Commissioner George Busse stated that taxing the buyer is not a very welcoming message to new residents. Mr. Busse suggested the Finance Commission review the ordinance and make a recommendation. Commissioner Ann Smilanic asked why the blood donor program has asked for additional funds. Mr. Ellsworth stated that their expenses have exceeded the $500 allowed for the year. Commissioner Charles Bennett said that he believes this is a program that should be supported and that it is to the Villages' benefit to continue the program. Commissioner George Busse stated that money could be raised by volunteers instead of getting all the money directly from the Village. There could be fundraisers or benefits and additional volunteers could be found. Finance Director Doug Ellsworth began discussing the General Fund Expenditures. To date there has been 47% expensed this year. Furthermore, the Village will be over budget approximately $200,000 because of the recent windstorm. The Village has applied for Federal and State funds to offset :the additional expenses the Village has incurred. Commissioner Charles Bennett asked why the money for the storm is reflected under miscellaneous expenditures and not under Public Works. Mr. Ellsworth stated that the contingency account holds miscellaneous amounts and that the contingency account is an unbudgeted account. Lastly, Finance Director Doug EllSworth stated that there are no major expenditure Variances. Expenditures are coming in fairly close to the forecasts. Chairman's Report Chairman John Kern began by discussing various topics discussed at recent Village Meetings. Chairman Kern farther discussed with the Commission changing the membership from nine members to seven members. Mr. Kern stated he recommended that the commission continue on as a nine- member board. However, Mayor Farley suggested the commission be reduced to seven members. Commissioner'S George Busse and Charles Bennett voiced opinions that a seven-member board would be acceptable as long as the commission has diversity. Commissioner Ann Smilanic stated that she felt comfortable with a nine-member commission. Commissioner Vince Grochocinski motioned to concur with the Mayors recommendation and Commissioner Charles Bennett seconded the motion. Six members were in favor and one member opposed. Chairman John Kern asked the commissioners to review the agenda for the remainder of the year and let him know if any members will not be present at future meetings. Mr. Ellsworth asked if the August 24a meeting could be changed to September 28a, since Community Development would like more time to prepare their material. Commissioner George Busse makes a motion to cancel the August meeting and move the August items to September and Commissioner Charles Bennett seconded the motion. Six members were in favor and one member opposed. Chairman John Kern mentioned that the Finance Commission member's terms are not staggered. Currently, four members' terms will expire in 2003. Commissioner George Busse suggested the members be allowed an extension to their term. Village Manager Michael Janonis stated that under the new ordinance, extensions will be allowed. Lastly, Mr. Kern stated Commissioner Vince Grochocinski's term has expired and he needs to be reappointed. I Finance Director's R _eport Finance Director Doug Ellsworth distributed the Capital Improvements Plan, which was approved by the Board on July 18~. VII Other Business Chairman Korn began an open discussion on the new Village Hall Proposal_.- Commissioner Ann Smilanic asked why we needed to have a referendum, Commissioner Smil~nie also stated that the Village has issued a total of $38,000,000 of debt without referendum in the past. Village Manager Michael Janonis stated that there are no legal requirements for a referendum and that a referendum is not binding. It is only advisory. Commissioner Vince Grochocinski asked what the deadline is to hold a referendum. Mr. Janonis stated that in order to go to a referendum the Board has to make a decision by August 22 in order to have it appear on the November ballot. Commissioner Ann Smilanie made a motion stating that the Finance Commission recommends that the Village Board make a decision on a Village Hall without going to referendum. Commissioner George Busse seconded. Commissioner Betty Lame/suggested the Finance Commission recommend to the Village Board that they make an independent, informed decision regarding a new Village Hall/Senior Center with out going to referendum. Commissioner Smilanic agreed with and accepted the modification to her original motion. Commissioner Busse stated the members should vote on the motion as presented. All members were in favor. Chairman John Korn will present a written recommendation to the Village Board from the Finance Commission at the meeting on July 27~, 2000. VIII Next Meeting: September 28. 2000 Commissioner Vince Grochocinski motioned to adjourn and Commissioner Betty Launer seconded, All members were in favor. The meeting was adjourned at 9:15 p.m. The next meeting is scheduled for September 28, 2000 at 7:00 p.m. Respectfully submitted, Lisa Burkemper Administrative Assistant