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HomeMy WebLinkAbout07/25/2002 FC minutes RAFT FINANCE COMMISSION MINUTES OF THE MEETING JULY 25, 2002 VILLAGE HALL BUILDING DRAFT I. CALL TO ORDER The meeting was called to order at 7:00 p.m. Those present included Chairman John Kom and Commissioners Charles Bennett, George Busse, Vince Grochocinski, Tom Pekras and Ann Smilanic. Also present ~vere Village Manager Michael Janorfis, Assistant Village Manager Dave Strahl, Production Coordinator TV Services Ross Rowe, Director of Finance Doug Ellsworth, Deputy Director of Finance Carol Widmer and Finance Administrative Assistant Lisa Burkemper. Commissioner Ann Hull was absent. II. DISCUSSION REGARDING CABLE TV INTERGOVERNMENTAL AGREEMENTS Chairman John Kom asked the commissioner's to change the order of the agenda to allow Ross Rowe to participate in the discussion regarding Cable TV Intergovernmental Agreements since Mr. Rowe had another meeting to attend that evening. The commissioner's agreed and the agenda was changed accordingly. Ross Rowe provided an overview of the village's intergovernmental programming efforts. Mr. Rowe provided information on the various organizations currently participating in the programming as well as a few organizations that are scheduled to be participants in the coming months. Commissioner Ann Smilanic asked if it was our goal to get as many people or entities involved as possible. Mr. Rowe stated the village would like to get more entities involved and sees a need in many organizations and/or groups to get their information out to the residents. Mr. Rowe also stated that our costs are reduced as more entities become involved. Commissioner Tom Pekras asked if the village would lose some of their program-ming time as more entities are added. Mr. Rowe stated that currently the village averages 10 - 12 hours of programming per month and the addition of other entities would not take away any of our time. [[I. APPROVAL OF MINUTES Commissioner Tom Pekras motioned to approve the minutes of May 23, 2002. Commissioner Charles Bennett seconded the motion and the minutes were accepted as presented. The minutes of June 27, 2002 were deferred until the August 22, 2002 meeting. IV. REVIEW OF 2001 COMPREHENSIVE ANNUAL FINANCIAL REPORT Finance Director Doug Ellsworth summarized the 2001 Financial Annual Report. Mr. Ellsworth stated that the CPA firm Sikich Gardner & Co. performed the audit and gave the report an unqualified opinion. An unqualified opinion means the auditors found the report to be presented and prepared in accordance with generally accepted accounting principles. Mr. Ellsworth further stated that revenues were $ t 10,535 less than projected and expenditures showed a positive variance of $280,365 over the 2001 revised budget. Commissioner Charles Bennett asked where sales tax figures fall in the breakdown of revenue types? Mr. Ellsworth stated the figures are included in the intergovernmental category. V. MID-YEAR BUDGET REVIEW Finance Director Doug Ellsworth gave a brief update of the 2002 Budget. Mr. Ellsworth stated that including the April amendments the budget shows $28,382,315 in revenues and $28,594,265 in expenditures. The deficit of$211,950 exists because of uncompleted projects from the 2001 Budget that have been carried over as well as some one-time costs incurred with the temporary relocation of Television Services and Human Services. Most recent figures show the village is now looking at a deficit of about $700,000, which is about $500,000 more than previously anticipated. Mr. Ellsworth stated that one of the largest positive variances in revenues is in Sales Tax, which is projecting an $181,036 variance. Another positive variance is the Cable TV Franchise Fee, which is showing receipts of approximately $75,000 over projections. Mr. Ellsworth further stated that the largest shortfall in expenditures is in State Income Tax, which is showing a possible shortfall of $530,000. Other shortfalls anticipated are $72,000 in photo processing tax and $82,000 in state use tax. Mr. Ellsworth stated that expenditures as of June 30th total $13,272,096, w?fich represents 46.4% of the total budgeted amount. Mr. Ellsworth then discussed in detail the Refuse Disposal Fund, which is expected to be $165,000 below budget. This is due to the fact that the Solid Waste Agency recently sold a balefill site and those monies will be used to reduce the agency's debt service costs therefore reducing our debt service costs to the agency. Mr. Ellsworth also mentioned that if the Village Board approved the savings realized by the drop in costs could be funneled to the General Fund to help offset the deficit. Mr. Ellsworth lastly discussed the 2003 budget forecast. Mr. Ellsworth stated that originallythe village was looking at a deficit of $639,552, however the most recent projections show a deficit orS t,232,588. Commissioner Ann Smilanic referenced the Budget Revenue Report for period ended 6/30/02 and asked why the General Store Lease receipts are well below the amount budgeted for the year. Village Manager Mike Janonis stated that they were in arrears and he is working with the tenants to resolve the issue and is reviewing their tax returns. VI. DISCUSSION REGARDING COMPENSATED LEAVE POLICIES (SICK AND VACATION BUY-BACK) There was a discussion regarding the compensated leave program available to village employees. Assistant Village Manager Dave Strahl stated that the programs have been in place for quite a long time and have been incorporated into the various union contracts. Commissioner George Busse stated that he felt that this was an aggressive buyback program as compared to other communities. Mr. Busse stated that he felt the program was a nice benefit but at a huge cost to the village. Mr. Busse also asked whether the program was in place to supplement employee salaries to bring their salaries in line with other local municipal employees. There was a brief discussion on comparing the program with other communities. Mr. Busse stated that one could not solely compare compensated leave programs in other communities and that one would have to take into consideration salaries and other benefits as well. VII. REVIEW OF 2002 BUDGET TO DETERMINE NON-ESSENTIAL BUSINESS There was a brief discussion among the commission members regarding the topic of non-essential business. The commissioner's decided to defer the discussion until the August meeting. This would allow the commissioner's ample time to look at the budget as well as specific programs that should be looked at as possible items to be eliminated from the budget. Village Manager Mike Janonis also suggested that the commissioner's look at possible revenue increases. Commissioner George Busse agreed and stated he thought the commissioner's look first at what can be eliminated and then look at what revenues could be raised. III. CHAIRMAN'S REPORT Chairman John Korn highlighted the topics discussed at the board meetings that have taken place recently. IX. FINANCE DIRECTOR'S REPORT There was nothing to report. X. OTHER BUSINESS Commissioner George Busse handed out a draft plarming document to the other members outlining some of their recommendations for the year 2003 Budgetl Upon further discussion, the members of the Finance Commission drafted the attached memo (see Attachment A). Commissioner Ann Smilanic motioned to approve their recommendations for the Proposed 2003 Budget and present them to the Mayor and Village Board of Trustees. The motioned was seconded by Commissioner Vince Grochocinski and carried. XI. NEXT MEETING: AUGUST 22, 2002 Commissioner Ann Smilanic motioned to adjoum which Commissioner Charles Bennett seconded. The meeting was adjourned at 9:45 p.m. The next meeting will be August 22, 2002. Respectfully submitted, Lisa Burkemper Administrative Assistant Finance Department