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HomeMy WebLinkAbout11/05/2009 FC minutes FINANCE COMMISSION MINUTES OF THE MEETING NOVEMBER 5, 2009 VILLAGE HALL I Call to Order The meeting was called to order at 7: 15 p.m. Those present included Chairman Vince Grochocinski and Commissioners Pam Bazan, Wayne Gardner, John Kellerhals and Tom Pekras. Commissioners Ann Smilanic and Don Ocwieja were absent. II. Approval of Minutes Minutes of October 22, 2009 - Commissioner Tom Pekras suggested that the word "Commission" in the Approval of Minutes section should be "Commissioner." Also, Commissioners John Kellerhals and Wayne Gardner discussed the meaning of the last paragraph under Public Works and agreed that the word "booster" should be changed to "sewer lift." Commissioner Tom Pekras motioned to approve the minutes as amended and Commissioner Wayne Gardner seconded the motion and the motion carried. Minutes of the meeting of October 29, 2009 - Commissioner Pam Bazan motioned to approve the minutes as written and Commissioner John Kellerhals seconded the motion and the motion carried. III. 20 I 0 Budget Discussion The Finance Commission wishes to express its appreciatIOn for the hard work and dedication of the Finance Department staff and the management team of the Village for its work in preparing the 2010 budget during these trying economic times as they adjusted and reduced spending to match projected revenues. It is noted that the 2010 total budget of $86 million is only 2.4% higher than the 2008 budget which was a year more comparable than 2009 in which major construction was involved. In addition, the lament from taxpayers that government is always looking for increased tax revenue and not cutting cost first has certainly been put to rest with the actions of the Village as demonstrated during 2009 and into 2010. In particular the Commission complements Village Manager, Michael Janonis, on his forthright communication with Village staff regarding the budget difficulties and the setting of the proper tone in discussing the need to moderate projected salary increases. This includes no increases for Village management staff. The Commission also supports the request to employees to participate in a roll back in planned wage increases. The Commission would like to avoid employee layoffs, but should additional cost cutting be unavoidable, it is urged that reduced hours or furlough days be used as a means to reduce costs so as to maintain the Village's trained and experienced staff. The Commission also found the introduction to the 20 I 0 budget to be informative and sobering. There were several specific items in the management of the Village where the Commission desired to go on record as concurring with the decisions of the Village. Minutes of the Finance Commission Page I of3 November 5, 2009 1. The Village has maintained their long-term view of the capital needs and business development climate in the community. Thus, the Resource Center, New Fire Station, EOC, and Public Works building expansion, levee 37 along River Road and the redevelopment of Randhurst Mall have been moving forward in a timely manner aided to some extent by the down turn in the economy to produce reduced construction costs. 2. The in process debt refunding plan is a compliment to the excellent fiscal management of the Village which makes these financial moves possible. 3. The avoidance of the "red light cameras" as a revenue generator has avoided public resentment while focusing the new police traffic unit on speed limit enforcement and specific public concerns in the neighborhoods. In the opinion of the Commission, this is the correct approach, Regarding some specific items in the project 2010 budget the Commission has the following comments: 1. The levee 37 project has not been completed pending the establishment of the upstream water retention facility. The commission urges the Village to continue to pressure the responsible parties to finish this project before storms present an embarrassing situation and causing the Village to spend an estimated $100,000 constructing a Jersey wall in sight of the uncompleted wall structure, 2. The projected withdrawal from NIPSTA in Glenview would save the Village $18,000 per year, but rejoining the group in the future and paying some level of new member enrollment costs was discussed. This could be viewed as not in keeping with the Village's long-term planning perspective and make the current savings illusionary. If the Fire Department believes that membership is valuable enough to be under consideration for rejoining the group, then the funding should continue. 3. The proposed spending of significant dollars from the Capital Improvement Fund to provide for Fire Department video conferencing was harshly criticized in the Commissioners' discussions. This project has been in prior years' budgets repeatedly subject to obtaining a grant to pay the cost. No grant was obtained and the project was not felt worthy of funding from Village revenues. Now, during a time of difficult financial times, the Commission feels that this project cannot be justified. It was noted that over the time that this wish list project was under consideration, video conferencing has become widely available through services such as "Go to Meetings" for very nominal fees. 4. The annual funding for the Police and Fire pensions reached critical stage as the value of the investments in these funds decreased dramatically. State of Illinois legislators failed to provide relief to the many municipalities in the State by way of spreading out the make up contributions required. The resulting increase to the pension portion of the tax levy of 45% Police and 28% Fire to fund the catch up while at the same time the assets in the funds were rebounding in a rising securities market was viewed by the Commission as reprehensible on the part of State Government. These increases will drive the overall increase in the real estate tax levy to 9.8%. Without suggesting that existing laws be violated possibly subjecting the Village legal costs in defending reduced funding to the pension funds or risking our bond rating, the Commission urges that avenues be explored to avoid this spike in funding such as: a) Requesting the consulting actuary to revise the calculations to take into consideration the rebounding value of the investments. Minutes of the Finance Commission Page 2 of3 November 5, 2009 b) Deduct the increased value in the investments from the consulting actuary's recommendations which used the lower numbers. c) Restrict the contribution to the 10% in the proposed State legislation. d) Fund the pension plans at the same level as prior years. e) Fix the amount of assessment increase at 5%, then fund the general fund as required in the budget and provide the excess to the pension funds. Commissioner Tom Pekras asked the Chairman to request the Finance Director, David Erb, to comment on the apparent increase in the budget for revenue from the Real Estate transfer tax (page 49 in the budget document.) Finance Director Erb response via email was timely and very satisfactory. With the permission of the commissioners, the response will be appended to these minutes. IV. Chairman's Report There was nothing to report. V. Finance Director's Report There was nothing to report. VI. Other Business There was nothing to report. VII. Next Meeting November 26, 2009 Commissioner John Kellerhals motioned to cancel the nextmeeting. Commissioner Tom Pekras seconded the motion and it carried, Commissioner Tom Pekras motioned to give the Chairman authority to cancel the scheduled December meeting of the Commission. Commissioner Wayne Gardner seconded the motion and it carried. Commissioner John Kellerhals motioned to adjourn the meeting. Commissioner Tom Pekras seconded the motion and the meeting was adjourned at 9:45 p.m. Respectfully Submitted, Vince Grochocinski Chairman, Finance Commission Minutes of the Finance Commission Page 3 of3 November 5, 2009