HomeMy WebLinkAbout07/22/2010 FC minutesI
FINANCE COMMISSION
MINUTES OF THE MEETING
JULY 22, 2010
1 sT FLOOR COMMUNITY CENTER
I
CALL TO ORDER
The meeting was called to order at 7:09 p.m. Those present included Chail
Commissioners Pam Bazan, Wayne Gardner, Don Ocwiej a, Tom Pekras ano A
Finance Director David Erb, Deputy Finance Director Lynn Jarog and Finance
Burkemper. Commissioner John Kellerhals was absent.
APPROVAL OF MINUTES
There was mention of a typographical error on page three of the minutes.
motioned to approve the minutes of June 24, 2010. Commissioner Pam Bazan
members in favor, the minutes were accepted as corrected.
II
III. MID YEAR BUDGET
Finance Director David Erb distributed a
for 2011. Mr. Erb stated the revenues I
others weaknesses. The 2011 deficit is s
the budget process for the 2011 budget
prepared using the new computer softw,
Mr. Erb advised
budget. Expense
the 50% benchn
no
2010
man Vince Grochocinski and
in Smilanic. Also present were
Administrative Assistant Lisa
Ann Smilanic
)tion. With all
nemo outlining the budget at mid -year including an updated forecast
gyve <leveled off and some revenues have shown improvements and
41 a mai or issue lri planning the upcoming budget. Mr. Erb advised
was started the previous week. Mr. Erb added the budget will be
'e.
to budget is $40,691,000; this is an increase of $29,000 over the 2010
the original budget. Mr. Erb mentioned mid -year spending is below
>st control efforts put in effect in 2009 remain in place.
Mr. Erb stated the Capital Improvement Fund fund balance has declined because of a drop in home rule sales
tax, which is a dedicated funding source for the CIP. Another fund that has a shortfall is the street
improvement construction fund. Currently, only baseline projects are being done because of shortfalls in
motor fuel tax and home rule sales tax receipts.
The revised deficit projected for 2011 is currently $2,662,255; this is up from $2,545,255 as presented in the
2010 amended budget. The variance is due to adjustments made to property tax receipts, investment income,
utility tax receipts and real estate transfer tax receipts.
Mr. Erb spoke about the history of the General Fund fund balance. In 2008, the fund balance was 30.1
dropping to 24.8% in 2009 and again dropping to an estimated 19.8% in 2010. If nothing was done to reduce
the projected 2011 deficit, the fund balance would drop to an estimated 13.4% in 2011.
Mr. Erb showed preliminary 2010 property tax levy scenarios for discussion purposed. One scenario included
a 4.99% levy increase, the second a 6.14% increase and the third an 8.34% increase. There was a lengthy
discussion regarding the various scenarios and how the commission members felt about the different options.
The consensus of the commission was that the general corporate share of the general fund levy should be kept
flat, unless the police and fire pensions allow a change for the better; furthermore, any increases should be
allowed in the other portions of the levy.
Minutes of the Finance Commission Page 1 of 2 July 22, 2010
IV. CHAIRMAN'S REPORT
n
Chairman Grochocinski mentioned that each year he typically delivers at a Village Board budget meeting any
ideas, changes or comments regarding items in the CIP to the Board. Commission members are encouraged to
think about any items related to the CIP that could be brought before the Village Board.
V. FINANCE DIRECTOR'S REPORT
Mr. Erb mentioned that currently nothing was scheduled for discussion at the August 26, 2010 meeting. Mr.
Erb asked the members if there was a topic for discussion or if they would like to give authority to cancel the
meeting. After a brief discussion, Commissioner Wayne Gardner motioned to cancel the meeting scheduled
for August 26, 2010. The motioned was seconded by Pam Bazan and all commissioners were in favor.
VI. OTHER BUSINESS
There was nothing to report.
VII. Next Meeting: August 26, 2010
Commissioner Ann Smilanic motioned
was adjourned at 9:32 p.m. The next n
n which Commissioner Tom Pekras seconded. The meeting
,heduled for August 26, 2010 has been cancelled.
Cespectfully submitted,
CAI -
,isa Burkemper
administrative Assistant
Financi
Minutes of the Finance Commission Page 2 of 2 July 22, 2010