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HomeMy WebLinkAbout08/10/2004 COW minutes There was a question regarding defining an unusual circumstance when determining how Village Board members' travel expenses would be considered. Also discussed was how such notification and consideration would be undertaken to determine what expenses would be covered by the Village. There was a question regarding how the determination was made regarding expenses related to in-State or out-of-State and how metropolitan region expenses are determined. Village Manager Janonis stated that he would expect that the Board could consider prior authorization through verbal discussion prior to any Board member being authorized to expend funds for travel or conference attendance. He also stated that he will incorporate these comments into the final draft Policy for Village Board approval. 2. Purchasinq Policy Finance Director David Erb stated that the Policy has been revised to incorporate a Code of Ethics and the option for two bidders under extenuating circumstances. He also stated that prior approval is still necessary in all cases except for emergency. General comments from Village Board members included the following items: It was noted that there was some concern regarding Village Board members possibly binding the Village to a contract for purchase without full Board approval. There was some discussion regarding how that could be minimized. The general purchasing procedures were discussed regarding determination of valid purchases and how such purchases would be processed. V. REVIEW OF SELF-INSURANCE PROGRAM Finance Director David Erb stated the Village has in place a multi-tier level of coverage. He stated the first level of insurance is up to $250,000 and staff has reviewed the option of creating a reserve for that level whereby the Village could make decisions regarding settlement on various cases without being controlled by an insurance provider. He also stated that the auto liability recommendation would need to be increased to include additional coverage as recommended by the Actuarial Consultant. He stated that it would be possible to fund the program through existing Budget contributions for insurance coverage. General comments from Village Board members included the following items: It was suggested that the cost be monitored along with the claims experience on an annual basis for a regular report to the Village Board. VI. PENSION CONTRIBUTION UPDATE Finance Director David Erb stated that the actuarial contribution rates account for 8.4% of the General Fund. He also stated that the net Police and Fire savings of pension contributions for 2004 are estimated at $81 ,220 less than the previously budgeted amount. He stated the IMRF contribution rate of 8.5% includes a savings of $54,915 less than the 2005 Budget estimate. 2 VII. 2004 MID-YEAR BUDGET REPORT AND 2005 PRE-BUDGET FORECAST 1. 2004 Mid-Year Budqet Report Finance Director Erb provided an outline of expenditures to date and the projections through the end of the year. He stated the original 2004 deficit of $437,276 has been adjusted to a predicted deficit of $351,857 with the shortfall made up by Fund balances previously directed by the Village Board. He stated that revenue projections of Sales Tax remain within estimates with a few other revisions to revenue of any significance at this time. He also provided an overview of the various revenue categories and their trend to date. 2. 2005 Pre-Budqet Forecast Finance Director David Erb stated the original projection for the 2005 Budget included a $1.6 million deficit, however, the revised forecast projects a surplus of $126,833. He stated this difference from deficit to surplus is based on revenue enhancements previously approved showing positive impact on the overall revenue stream. He stated that among the stronger revenue sources is the Real Estate Transfer Tax and the sale of Village Hall property proceeds directed to cover the cost of the new Village Hall which will reduce the General Fund transfer to cover part of the debt cost. He also stated that there are pension contribution reductions which will assist in controlling the Budget for 2005. He also stated that based on current projections, the Fund balance for 2005 should be in the neighborhood of 24.5% of the General Fund. He stated the 2005 Budget process is currently underway with Department worksheets already out and being formulated. Village Manager Janonis stated the Budget projections do look better, but he does not intend to recommend reinstatement of all of the items that had previously been cut. He intends to illustrate the pent-up demands for services part of the Budget so that the Board has a handle on items that still need to be addressed in some manner. He also stated there still is no capital improvement project transfer established in the 2005 Budget. General comments from Village Board members included the following items: It was noted that the Sales Tax increase for 2005 was exclusive of minimal Costco proceeds with minor modifications to Sales Tax. It was noted that the energy costs that people are currently experiencing will impact the Village because there will be less income available in the market place due to the increase in energy costs. It was noted that there is some concern about utilizing Sales Tax revenue for fixed expenses and services. John Korn, Chairman of the Finance Commission, spoke. He stated that staff has been balancing the Budget by cutting and using reserves and the deferred $1.2 million in capital improvements is significant and should be addressed. The Commission is concerned about providing the Departments with the necessary tools to perform their tasks. He would suggest the Village Board balance the Budget by raising Taxes instead of cutting services in 2005. He also suggested utilizing $6.00 of the Vehicle Sticker revenue from each vehicle sticker for General Fund expenses and increase the Gas Tax per gallon by an additional one cent. 3 VIII. IX. X. DS/rcc He also suggested that the Utility Tax increase 1 % on electric and gas and charge for ambulance service similar to what other towns charge. He is also suggesting the Business License fee be increased by 10% so that additional revenue can be realized. Village Manager Janonis noted that there is a form in the Board's packet regarding any new service or initiative that should be considered as part of the 2005 budgeting process that he is requesting to be completed and returned to his attention. VILLAGE MANAGER'S REPORT Village Manager Janonis stated that the August 14 Coffee with Council will be the first Coffee with Council in the new Village Hall. It will take place in the Community Center from 9:00 a.m. until 11 :00 a.m. He stated staff has moved into the new Village Hall. The move actually was completed early and the staff is currently gathering comments from patrons and staff for any modifications. Trustee Hoefert stated the Village Hall looks very good and the block improvements are really starting to come together. He requested a status report regarding the purchase of the remote Bank One parking lot. ANY OTHER BUSINESS None. ADJOURNMENT There being no further business, the meeting adjourned at 8:45 p.m. Respectfully submitte~,/ / fl ~ ~ $T;1JI DAVID STRAHL Assistant Village Manager 4