Loading...
HomeMy WebLinkAbout10/21/2010 FC minutes FINANCE COMMISSION MM INUTES OF THE EETING O21,2010 CTOBER CC-VH OMMUNITY ENTER ILLAGE ALL I.CO ALL TO RDER The meeting was called to order at 6:17 p.m. Those present included Chairman Vince Grochocinski and Commissioners Pam Bazan, Wayne Gardner, Don Ocwieja (arrived at 6:55), Tom Pekras and Ann Smilanic. Also present were Village Manager Michael Janonis, Assistant Village Manager Dave Strahl, Director of Human Services Nancy Morgan, Deputy Director of Human Services Jan Abernathy, Director of Community Development Bill Cooney, Deputy Director of Community Development Brian Simmons, Finance Director David Erb, Deputy Finance Director Lynn Jarog and Finance Administrative Assistant Lisa Burkemper. Commissioner John Kellerhals participated by telephone. II. AM PPROVAL OF INUTES Commissioner Tom Pekras mentioned a typographical error in the minutes of July 22, 2010. On page one the first sentence in the last paragraph the word purposed should be changed to purposes. Commissioner Tom Pekras motioned to approve the minutes of July 22, 1010 as amended. Commissioner Wayne Gardner seconded the motion; Commissioner John Kellerhals abstained and the motion carried. III.RP2011VB EVIEW OF THE ROPOSED ILLAGE UDGET Overview Village Manager Mike Janonis began the meeting stating this year’s budget message is different from any in the past. Because of the nature of the budget this year’s budget meetings will probably focus on staff reductions and the impacts they will have on Village services. Director of Finance David Erb stated the 2011 Proposed Budget was prepared using the new financial management/budgeting software. The document is a work in progress and will evolve throughout the upcoming budget process. Mr. Erb provided a brief overview of the 2010 Budget. Overall, the 2010 amended budget totals $88.8 million, which represents a 3.9% increase. The increase is due primarily to carryover capital projects. Mr. Erb stated the 2011 General Fund Proposed Budget, as presented, is balanced. The total Proposed Budget for 2011 totals $82.6 million, which represents a 6.9% decrease over the previous year’s budget. Revenue estimates are expected to remain flat for the 2011 Proposed Budget and department’s were asked to keep expenditures at or below 2010 levels. The Capital Budget will decrease by 31.2% due to the completion of the Phase 1 construction projects. Mr. Erb added it is expected the General Fund reserves at December 31, 2010 will fall to 23.2%. Mr. Erb also mentioned there is no increase proposed for the total 2010 proposed tax levy. The proposed levy will have an increase to public safety pension and debt portions, the refuse portion will be held flat; the general portion will decrease $1.1 million to offset increases in the other areas. Minutes of the Finance Commission Page 1 of 4 October 21, 2010 There was a brief discussion related to debt service and the amount of debt the Village currently has in comparison to the property tax levy. Mr. Erb stated currently the Village’s debt is less than 2% of the levy. This equates to approximately $42.6 million. In comparison, Mr. Erb added, non home rule communities are allowed to have up to 8.675% of their levy in debt. The preliminary proposed budget showed a projected deficit of over $3 million. The deficit was allocated to the departments based on a pro rata share. Significant budget cuts necessary to reduce the deficit came from staff reductions. Any non-personnel line items that could be reduced were reduced or held at 2010 levels. The Village Board and staff performed a methodical review of core services and came up with the following adjustments:  Elimination of 34 positions  Various cuts in non-personnel line items Other changes impacting the budget include:  Computer and Vehicle lease payments added back into the budget  No salary increases for non union employees Mr. Erb added the 2012 forecast budget currently shows an estimated deficit of $1,036,039. Human Services Director of Human Services Nancy Morgan began her discussion stating that their 2011 Proposed Budget totals $1,062,525. Ms. Morgan outlined the various programs and services the department provides related to social services, nursing/health services, geriatrics, at risk and low income residents. In preparation of the 2011 Proposed Budget, Human Services was asked to cut approximately $61,800 from their budget. After a review of core services it was decided that an adjustment be made to three staff positions and four programs be eliminated. Ms. Morgan stated the full time bilingual social worker position was being reduced to part time, the part time nurse position was being eliminated and the two social work interns’ stipends were eliminated. Ms. Morgan also mentioned the elimination of four programs consisting of flu shots, home delivered meals, discount taxi cab and the mentor programs. The elimination of these programs will free up remaining staff’s time to work on other projects. Ms. Morgan mentioned that the Community Connections Center recently celebrated its one year anniversary. The Center is doing very well and is in need of more space. Expanding the Center is not an option at this time given the current economy, so services will be maintained in the current space. Community Development Director of Community Development Bill Cooney began his discussion with accomplishments for 2010. Mr. Cooney mentioned the Enterprise Resource Planning process and how it will affect the department. Currently, the Community Development portion of the ERP is scheduled to go live in mid 2011. Minutes of the Finance Commission Page 2 of 4 October 21, 2010 Some of the other accomplishments and items of importance mentioned by Mr. Cooney were the business retention program, long range planning projects, Randhurst and other Village redevelopment efforts, industrial activity, building permit activity and crime free housing initiative. Mr. Cooney went on to discuss the 2011 Proposed Budget. The Community Development budget totals $2,175,530, which represents a 5% decrease from the 2010 Budget. The biggest impact to the department budget comes from the elimination of the four building inspector positions. The work of the current inspectors will be switched over to an outside inspection service. There will be no loss of service to the residents and the cost savings will be approximately $200,000. Chairman Vince Grochocinski mentioned that the 2010 accomplishment related to outsourcing the building inspection services would more appropriately be mentioned in the 2011 objectives. Mr. Cooney stated this could be moved to 2011 objectives in the final draft of the budget. Finance Department Finance Director David Erb began his discussion of the Finance Department’s 2011 Proposed Budget by mentioning several accomplishments from 2010. He then reviewed the 2011 Objectives. The Village received annual budget and audit awards from GFOA. The largest project for the Finance Department was the implementation of the Enterprise Resource Planning project. The Village is approximately 21 months into the project. The Annual Budget, Position Budgeting and Financial modules were all recently implemented. Mr. Erb presented the Finance Department’s Proposed 2011 Budget totaling $1,582,484; this represents a decrease of 1.9% from the 2010 budget. Mr. Erb stated salary and benefits are down 11.5% due to the elimination of two positions in the department. Contractual services increased due to bank processing fees, postage and other professional services. He added the workman comp fees and life insurance fees are now charged through Finance because of the newly implemented Position Budgeting module. Commissioner Tom Pekras asked why the line item for Travel and Meetings increased from $1,700 in 2010 to $7,233 in 2011. Mr. Erb stated this was due to a planned annual training seminar related to the new ERP software. The annual training is a valuable tool to the function of the software. The training provides a chance to network with people using the software and gain valuable knowledge to help in implementing the software at the Village. IV. C’R HAIRMANS EPORT There was nothing to report. V. FD’R INANCE IRECTORS EPORT There was nothing to report. Minutes of the Finance Commission Page 3 of 4 October 21, 2010 VI. OB THER USINESS Mr. Janonis mentioned some misconceptions among residents regarding the plan to combat the Emerald Ash Borer. There have been people misinformed about having to take down their private property ash trees within a 10 day period. This is untrue and the Village Board recently adopted regulations to address the diseased trees. VII.NM:O28,2010 EXT EETING CTOBER Commissioner Ann Smilanic motioned to adjourn which Commissioner Tom Pekras seconded. The meeting was adjourned at 9.00 p.m. The next meeting will be October 28, 2010. Respectfully submitted, Lisa Burkemper Administrative Assistant Finance Department Minutes of the Finance Commission Page 4 of 4 October 21, 2010