HomeMy WebLinkAbout07/26/2001 FC minutes FINANCE COMMISSION
M~,~r~,s oF THE MEETING
JULY 26, 2001
VILLAGE HALL BUILDING
I. CALL TO ORDER
The meeting was called to order at 7:00 p.m. Those present included Chairman John Korn and
Commissioners Charles Bennett, George Busse, Vince Grochocinski, Ann Hull, Tom Pekras and Ann
Smilanic. Also present were Village Manager Michael Janonis, Director of Finance Douglas
Ellsworth, Deputy Director of Finance Carol Widmer and Finance Administrative Assistant Lisa
Burkemper.
II. APPROVAL OF MINUTES
Commissioner Vince Grochocinski motioned to approve the minutes of June 28, 2001. Commissioner
Tom Pekras seconded the motion and the minutes were accepted as presented with a notation from
Commissioner Ann Smilanic of a typographical error on the fncst page.
III. P, ZVIEW OF 2000 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Finance Director Douglas Ellsworth began by stating that the Financial Statements were audited by
Crowe, Chizek and Company and have received an unqualified opinion. Mr. Ellsworth also stated
that General Fund revenues were $28,127,634, which was $951,812 or 3.5 % over estimates.
IV. MID-YEAR BUDGET REVIEW
Finance Director Douglas Ellsworth began by stating that the budget, as amended by the Board,
shows an anticipated deficit of $113,498 on revenues totaling $28,000,810. Furthermore, overall
expenditures totaled $28,114,308. An increase in the cost of Northwest Central Dispatch fees and
unfinished projects from the last fiscal year were the primary reasons for the deficit.
Mr. Ellsworth also briefly discussed several of the revenue categories of significance. Mr. Ellsworth
stated that sales tax revenues are expected to be 5 % less than last year. Another category discussed
was the utility tax. Electricity is on track to meet the budgeted figure and natural gas is expected to
be about $121,000 above projections. Mr. Ellsworth also discussed the infrastructure maintenance
fee, which is expected to come in at $110,000 under budget because of the recent ruling in the
Supreme Court. Lastly, Mr. Ellsworth stated that revenues from fines are expected to come in at
about $70,000 under budget.
Mr. Ellsworth further discussed several of the expenditure categories with significant variances from
the budget. Expenditures of the Village Manager's office are expected to be about $30,000 over
budget because of the legal fees associated with the labor contract negotiations. Television Services
expenditures are coming in over budget as well. This is due to an increase in the salary of the
production assistant, which will be offset by additional funds that will be collected from new
intergovernmental programming revenues being brought in. Finally the Miscellaneous category is
expected to fall short of the $21,170 budgeted for this year, due to a change in the retirement pension
of one former employee.
Mr. Ellsworth also discussed the 2002 Forecast Budget and any variances that are expected to occur.
The forecast budget currently shows an estimated operating deficit of approximately $1,013,552.
At present 2002 forecast revenues look to come in around $450,000 lower than expected. However,
expenditures are not expected to differ from the original forecasts.
V. VILLAGE HALL FINANCING
Director of Finance Douglas Ellsworth began his discussion by stating that the estimated cost of a new
village hall/community center with parking structure is $12,100,000 in addition to $1,360,000 for
architectural fees. Mr. Ellsworth then briefly discussed four financing options available to fund the
construction of the new village hall/community center.
Commissioner Ann Smilanic stated she was concerned that the residents will not understand how their
tax bills will increase in each scenario.
Chairman John Korn asked the commission members if they had any other thoughts or ideas for
additional funding options. Commissioner Vince Grochocinski motioned to recommend to the Board
that the consensus of the Finance Commission is that scenario D should be the direction which
funding should follow. Commissioner Tom Pekras seconded the motion and the motion was carried.
VI. CHAIRMAN'S REPORT
Chairman John Korn spoke to the commission and those present about the commission member's
terms as they expire in the next few years. Mr. Korn stated that four member's terms expire in 2003
and that terms are no longer staggered. Mr. Korn suggested that extensions be given to some terms
to allow the terms to be equally staggered. Village Manager Mike Janonis said he would check with
the village attorney to see if the code allows for changing terms.
Chairman John Korn briefly discussed several of the various topics discussed at recent Village
Meetings. Mr. Korn then asked about the status of the Finance Commission meeting scheduled for
August 23. He asked the members if there were any suggested topics to be discussed or if the
meeting should be cancelled. Commissioner George Busse motioned to cancel the meeting and Ann
Smilanic seconded and the motion was carried. Furthermore, Commissioner Vince Grochocinski
motioned to give Chairman John Korn the authority to cancel the September meeting if nothing is
scheduled for discussion. Ann Hull seconded the motion and the motion was carried.
Commissioner George Busse asked how the library's plans affect us and our future plans for the new
village hall/commnnity center and parking structure. Village Manager Mike Janonis stated that the
library and the village will work together in a design for the block whereas the village does not do
anything that will conflict with the designs for the library.
VII. FINANCE DIRECTOR'S REPORT
Mr. Ellsworth had nothing to report.
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III. OTHER BUSINESS
There was no other business discussed.
IX. NEXT MEETING: SEPTEMBER 27, 2001
Commissioner Ann Smilanic motioned to adjourn and Commissioner Charles Bennett seconded the
motion. The meeting was adjourned at 9:15 p.m. The next meeting will be September 27th.
Respectfully submitted,
Lisa Burkemper
Administrative Assistant
Finance Department