HomeMy WebLinkAbout08/10/2004 COW agenda
IV.
NOTE:
COMMITTEE OF THE WHOLE
AGENDA
Meeting Location:
Mt. Prospect Park District Community Center
1000 West Central Road
Meeting Date and Time:
Tuesday,August10,2004
7:00 p.m.
I.
CALL TO ORDER m ROLL CALL
Mayor Gerald l. Farley
Trustee Timothy Corcoran Trustee Michaele Skowron
Trustee Paul Hoefert Trustee Irvana Wilks
Trustee Richard Lohrstorfer Trustee Michael Zadel
II.
ACCEPTANCE OF MINUTES OF COMMITTEE OF THE WHOLE MEETING OF
JULY 13, 2004
CITIZENS TO BE HEARD
III.
PURCHASING POUCYITRAVEL POLICY MANUALS
Operational changes have occurred over the past several years which necessitated the
Purchasing Policy and Procedures Manual to be revised. Out of this revision, a separate
Travel Policy Manual was created to offer a more comprehensive guide!ine for and direction
to obtaIning approval and reimbursement for travel related costs.
The purchasing manual was last revised in September of 1998. In addition to changes in
purchase authorization by departments, the documents format has been updated based on
a model document from the Government Finance Officers Association. Changes include an
expanded code of ethics section, the level of budgetary control is now identified, bid rigging
and anti-collusion laws have been incorporated and provisions for the prompt payment act
have been added.
The new travel policy manual was prepared out of existing Village policy documents that
were previously included in the purchasing manual. Language was added to reflect current
trends in travel as well as an update to the per diem rates. Per diem rates had not been
adjusted since 1998.
Copies of both the purchasing and travel policy documents have been included in the
agenda packet Appropriate staff will be on hand to answer questions and facilitate
discussion.
ANY INDIVIDUAL WHO WOULD LIKE TO A TTEND THIS MEETING BUT BECAUSE OF A
DISABILITY NEEDS SOME ACCOMMODA TION TO PARTICIPA TE, SHOULD CONTACT THE
VILLAGE MANAGER'S OFFICE A T 50 SOUTH EMERSON, MOUNT PROSPECT, ILLINOIS 60056,
841/392-6000, EXTENSION 5327, TDD #847/392-6064.
..........~mWW>='.~.'WNN"""'" ".~_...m_-..==.'.'m.'.w....".="""'"
V.
REVIEW OF VILLAGE SELFmlNSURED PROGRAM
The Village currently utilizes a multi-tier approach in its insurance program for auto and
general liability coverages. The first $250,000 is self-insured by the Village. From $250,000
to $2,000,000, the Village obtains commercial insurance coverage. Coverage in excess of
the $2,000,000 commercial policy is provided by HELP (high-level excess liability pool). This
structure has been in place for several years and has served the Village well with few
exceptions.
At the request of the Board, staff obtained the services of an actuary firm to do an analysis
of the Village's self-insured program. The request by the Board was prompted by a volatile
insurance market that necessitated changes in insurance carriers from one policy year to the
next. This resulted in difficulty in coordinating claims occurring over a multi-year period. The
goal of the valuation was to determine an appropriate level of reserves for the program as it
currently stands and determine reserve requirements if the Village were to self-insure up to
the level where HELP excess coverage kicks in. This is the first step in determining whether
a change in the self-insured program is possible.
Staff will be on hand to share alternatives for administering the Village's risk management
program. Appropriate staff will be on hand to answer questions and facilitate discussion.
VI.
PENSION UPDATE
Each year the Village receives from its actuary, contribution requirements for the Police and
Fire pension funds. In addition, IMRF submits to the Village the contribution rate for the
upcoming year. Since payments to pensions are the second largest General Fund expense
(after payroll itself) and account for 8.4% ofthe General Fund Budget, it is prudent to review
this information as soon as it becomes available to provide ample time for potential
adjustments to the budget.
In JuJy, the Village received its preliminary actuarial resuJts for 2004 for the Police and Fire
Pension Funds as well as the IMRF contribution rate for 2005. The required contribution for
the Police Pension Fund rose slightly, just 1.4%, while the contribution for the Fire Pension
Fund went up 10.9%. The 2005 budget forecast estimated a 10% increase in the required
contribution from 2004 for these two pension funds. The contribution rate for IMRF in 2005
will be 8.58%. The 2005 budget forecast estimated the rate to increase to 9.5%. Overall
there was a savings in the 2005 budget forecast as a result of the better than expected
pension returns,
Appropriate staffwíll be on hand to discuss the preliminary results for the pension funds and
provide a forecast for the next year.
VII.
2004 MlD-YEARREVIEW AND 2005 PREmBUDGET WORKSHOP
Each year, the Village Board engages in a mid-year review of the current budget as a means
of monitoring the revenue and expenditure levels contained therein. In addition, the Village
Board also engages in a pre-budget workshop, specifically designed to look forward toward
the upcoming budget year with the idea of setting fiscal parameters and giving staff direction
for preparation of next year's budget.
> >" ,....,>,>,...,m"""""""",,_mm....mm. .... "".'>~.'.'.'.'.'.-.'.'mcc.~.'.'N.'C.'.'.'.~.'.'.'.'.'",'.w..~.~..~c.~",""""mm'" ......
With the close of June financial activity, staff is in position to present mid-year financial data
as well as review the 2005 forecast budget. The Village is beginning to fee! the effects of an
improving economy. As opposed to last year where both the year-end budget projection and
budget forecast projected operating deficits, this year's presentation will indicate an
improved budget position. Although there is a deficit projected for year-end 2004, the deficit
is lower than originally budgeted. We expect a draw down of fund balance in the General
Fund of $351,857. This is $10,259 less than the original budget amount. We have
projected the budget forecast for 2005 with a surplus of $126,833 versus a deficit of
$1,672,764 from the original forecast done last fall. This is due to having the first full year of
revenue enhancements hit the budget in 2005 along with saving in pension contributions
and a one-time financing source
Finance Director David Erb has prepared a comprehensive memorandum detailing the
Village's financial condition for both the balance of 2004 and forecast 2005.
Staff will share its current budget preparation strategy and look to the Village Board for
direction regarding the upcoming budget. Appropriate staff will be on hand to answer
questions and facilitate discussion.
VIII.
VILLAGE MANAGER'S REPORT
IX.
ANY OTHER BUSINESS
X.
ADJOURNMENT