HomeMy WebLinkAbout04/27/2010 FC minutes FINANCIAL PLANNING WORKSHOP
MINUTES OF THE MEETING
APRIL 27, 2010
VILLAGE HALL BUILDING
I. CALL TO ORDER
The meeting was called to order at 6:33 p.m. by Mayor Irvana Wilks. Village Board members present at the
meeting were: Mayor Irvana Wilks and Trustees Paul Hoefert, Arlene Juracek, John Korn, John Matuszak,
Steven Polit and Michael Zadel. Finance Commission members present at the meeting were: Chairman Vince
Grochocinski and Commissioners Pam Bazan, Wayne Gardner, John Kellerhals, Don Ocwieja, Tom Pekras
and Ann Smilanic. Staff members present were: Village Manager Michael Janonis, Assistant Village Manager
Dave Strahl, Finance Director David Erb, Deputy Finance Director Lynn Jarog, Administrative Assisant Lisa
Burkemper, Director of Human Services Nancy Morgan, Deputy Director of Human Services Jan Abernathy,
Chief of Police John Dahlberg, Deputy Chief of Administration Mike Semkiu, Operations Commander John
Wagner, Sergeant Tim Griffin, Fire Chief Mike Figolah, Deputy Fire Chief John Malcolm, Acting Fire
Marshall Brian Loomis, Director of Community Development Bill Cooney, Deputy Director of Community
Development Brian Simmons, Director of Public Works Glen Andler and Deputy Director of Public Works
Sean Dorsey.
II. ROLL CALL
Mayor Irvana Wilks asked that all meeting attendees please state their name and introduce themselves.
III. FINANCIAL PLANNING WORKSHOP
Village Manager Michael Janonis opened the meeting by stating how helpful it is to start out early in the new
fiscal year to get an idea of where the Village is headed financially and to be able to plan for the upcoming
budget.
Finance Director Dave Erb started the financial portion of the meeting with an update of financial conditions
and a review of the General Fund.
Mr. Erb reported that the General Fund ended 2009 with an actual deficit of $2,341,343. The amended budget
had projected a deficit of $1,647,493. Actual revenues in 2009 were under budget by $819,130; expenditures
were under the amended budget by $125,380. Also part of the deficit was a planned transfer out for Phase I
construction projects of $635,100. Fund balance as of 12/31/09 is 24.6 %.
The current estimated deficit for 2010 is $554,430; the amended budget shows a deficit of $454,430. In
addition, revenues are under budget by $100,000. Expenditures are being held at budgeted amounts.
Estimated fund balance after a planned drawdown of $900,000 for the Phase I construction projects is 19.2%
as of 12/31/10.
Mr. Erb stated sales tax figures for January 2010 came in 3.4% above the same time last year. Estimated 2010
Food and Beverage tax figures have also been adjusted up since 2009 figures came in higher than anticipated.
Mr. Erb also mentioned all vacant positions are currently being held open, departments are managing overtime
well and investment income should begin to increase slightly as the economy betters itself.
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Commissioner Ann Smilanic mentioned a recent article that stated receipts for property taxes will probably be
delayed until January, 2011. Mr. Erb advised if this occurs in addition to the delays in state income tax
receipts the Village will have to use reserves to cover bills. This type of situation is why having a healthy fund
balance comes in handy. Trustee Zadel respectfully disagreed with the statement Mr. Erb made about the use
of reserves. Mr. Zadel added reserves are not intended to make up for the State's inability to pay.
Mayor Wilks mentioned the Governor has proposed a decrease in the per capita rate affecting the amount of
state income tax the Village receives. As proposed, it would mean a $1.3 million decrease in the amount
received by the Village.
Discussion moved on to the 2011 forecast. Mr. Erb mentioned the estimated General Fund deficit is
$2,749,755, which would drop fund balance to 12.6% if nothing was done to reduce that amount. Included in
projections are an estimated 4.1% growth in revenues and a 9.4% growth in expenditures. The 9.4% increase
in expenditures is due mostly to the reinstatement of vehicle lease payments, computer replacement payments
and a full year of COLA increases. Mr. Erb added that revenue generated from Randhurst Village is not
figured into the projections for the 2011 budget.
Mr. Janonis stated staff will now begin working on gathering information to reduce the deficit. Wages and
Benefits will be reviewed as well as cuts from other areas.
Trustee Juracek mentioned looking at cost centers, scaling back on capital projects and redirecting the money
to something else. Mr. Erb added there are restrictions on some funds as to what the money can be used for;
however, Home Rule Sales tax is not restricted. Trustee Hoefert opined the Board increased the home rule
sales tax for specific reasons; therefore, he would not want to change the purpose of the tax and redirect the
money to pay for other things.
Mr. Erb outlined several property tax levy scenarios for consideration for the 2010 levy. Currently, the 2011
forecast budget assumes a 3.5% increase to the general fund portion of the levy. For discussion purposes, Mr.
Erb provided figures associated with increases from 5% to 8.36% to the total levy.
At 7:50 p.m., Mayor Wilks called a 10 minute break. The meeting resumed at 8:00 p.m.
There was a brief discussion on the 2011 -2015 CIP and a review of the five year forecast. Rough draft of the
CIP totals $54.9 million in projects. Of the total, $52 million is attributed to Public Works projects.
Mr. Erb provided information related to the current status of significant legislation being considered in
Springield. In addition, there were changes made to the IMRF and other state pensions that take effect on
January 1, 2011. Mr. Erb stated a summary of changes was included in the binder for review. Mr. Erb stated
the immediate impact will be slight. Starting in 2011, there will be two different tiered plans: one plan for
existing members of IMRF and one plan for members starting in 2011. Also mentioned was the pension
fairness legislation that is currently being considered. This includes reform for police and fire pensions.
There was a discussion regarding the need to draft letters to the area representatives to advise them of the
Village's concerns related to the downstate pensions and the need for new legislation.
There was a brief discussion on the responsibilities of the State to make the necessary decisions to move
forward in their budget and how the State's decisions affect the Village.
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Village Manager Mike Janonis mentioned the Committee of the Whole meeting scheduled for July 13, 2010 is
planned to be an update and review of the April Financial Planning Workshop. Mr. Erb asked that the Board
and the Finance Commission maintain their current binders and Finance would provide the additional inserts
prior to the meeting on July 13, 2010.
IV. ADJOURNMENT
There was a motion to adjourn by Trustee Paul Hoefert and seconded by Trustee Steven Polit. With all in
favor the meeting was adjourned at 8:24 p.m.
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