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HomeMy WebLinkAbout10/17/2002 FC minutes RAFT FINANCE COMMISSION MINUTES OF TItE MEETING OCTOBER 17, 2002 VILLAGE HALL BUILDING DRAFT I. CALL TO ORDER The meeting was called to order at 7:00 p.m. Those present included Vice-Chairman George Busse and Commissioners Charles Bennett, Vince Grochocinski, Ann Hull, Tom Pekras and Ann Smilanic. Also present were Village Manager Michael Janonis, Assistant Village Manager Dave Strahl, MIS Coordinator Joan Middleton, Acting Production Coordinator Howard Kleinstein, Director of Human Services Nancy Morgan, Deputy Director of Human Services Jan Abernethy, Director of Finance Doug Ellsworth, Deputy Director of Finance Carol Widmer and Finance Administrative Assistant Lisa Burkemper. Chairman John Kom was absent. II. APPROVAL OF MINUTES Commissioner Ann Hull motioned to approve the minutes of June 27, 2002. Commissioner Vince Grochocinski seconded the motion and the minutes were accepted as presented. Commissioner Tom Pekras motioned to approve the minutes of September 26, 2002. Commissioner Charles Bennett seconded the motion and the minutes were accepted as presented. III. REVIEW OF THE PROPOSED 2003 VILLAGE BUDGET Overview Village Manager Michael Janonis began the discussion with a brief overview of the 2003 Proposed Budget. In order to balance the budget Mr. Janonis stated $450,000 in cuts had been made and $770,000 would be drawn down from fund balance. Mr. Janonis also stated that there were no new initiatives in the 2003 Proposed Budget. Director of Finance Doug Ellsworth provided a brief overview of the 2003 Proposed Budget. Mr. Ellsworth stated that overall the 2003 Proposed Budget totals $80,145,386, ~vhich represents an increase of 6.4%. Some the 2003 Proposed Budget highlights mentioned were that the operating budget reflects a 2.2% increase over last year, the general fund budget includes a dra~vdown of $772,343 in fund balance, property taxes show an increase of 4.8% and there is a $12.2 million bond issue proposed for the balance of the new village hall/parking deck. Commissioner Ann Smilanic asked why the Series 1996A B&I Street Improvement bond issue remained in the proposed budget since it had matured on December I, 2001. Director of Finance Doug Ellsworth stated that the bond issue remained on the 2003 Proposed Budget as a reference since the budget shows prior year activity. IZillage Administration Village Manager Michael Janonis began his discussion with Public Representation. Mr. Janonis stated the Public Representation budget was down 1.2% overall. Commissioner Ann Smilanic asked what civic donations were listed under contractual services. Mr. Janonis stated that the Village is solicited and in turn makes donations to various parties including several of the school districts. Assistant Village Manager Dave Strahl outlined the proposed budget for the Manager's Office. The overall proposed budget reflects a 12.6% increase. To reduce costs the Manager's Office eliminated their intern position and suspended out of state travel~ Mr. Strahl did note that contractual services showed an increase of 33% over the 2002 budget. The increase represents the hourly rate increase for the Village Attorney. Commissioner Charles Bennett asked why there was an increase of 33% in contractual services for the Village Attorney. Mr. Strahl stated that it has been 15 years since the last basic service rate increase. Furthermore, the attorney's retainer has been changed to include ail the days the attorney is scheduled to be working in the office. Mr. Strahl also outlined the overall proposed budget decrease of 5.9% within the Human Resources budget. Part of the decrease is attributable to a cut in funding for training of $15,700 and a cut of $3,000 in the merit pay pool. Mr. Strahl also explained the creation of the new Information Technology Division. The new division is being created to consolidate all technology usage village wide. Mr. Strahl stated there is no new money needed for this conversion as all the money is being taken from other department budgets. Commissioner George Busse asked what the merit pay pool is used for and if it is strictly used in the manager's office or if it is Village-wide. Mr. Janonis stated the merit pay pool is limited to non-union employees and is used like a bonus program. Mr. Janonis also highlighted the TV Services Division with an 11.6% decrease in their budget, the Village Clerks office whose budget is upl.7% and the Public Information Division that showed a decrease of 21.3% over the 2002 Budget. Mr. Janonis further stated that TV Services has cut standard equipment purchases and that the Public Information Division expects to save $50,000 in printing services associated with the Village Newsletter. Human Services Director of Human Services Nancy Morgan began her proposed budget presentation by stating the departments 2003 Proposed Budget totaled $756,285, which represents a 9% decrease from the 2002 Budget. Ms. Morgan also stated that of the $756,285, $65,000 was allocated as relocation expenses for the department. Ms. Morgan also discussed the four major program areas within Human Services. They are Social Services, Health Services, Senior Citizen Recreation Activities and Youth Activities. Ms. Morgan highlighted several line items that showed a significant change over the 2002 Budget. One item discussed was the decrease of $65,000 in the office lease/relocation expenses associated with the department moving to their new location. Another item discussed was the budget category for senior center leisure activities, which showed a decrease of 19% over the 2002 Budget. The decrease is attributed to the closing of the senior center and the relocation of senior center activities. Commissioner George Busse asked what the Vision Group was. Ms. Morgan stated that it is an interdepartmental group that addresses problems and problem areas within the village. Ms. Morgan also stated at one time the group was quite large, however currently it is made up of a small group of people. 2 inance Department Director of Finance Douglas Ellsworth began his presentation with an overview of the Finance Department budget, which is down 7.5% over 2002. The decease is mostly due to the elimination of the Data Processing division, which will now become part of the Information Technology Division within the Manger's Office. Mr. Ellsworth stated that the largest increases in the budget are associated with health insurance, pensions and liability insurance. Mr. Ellsworth mentioned several significant increases or decreases in specific line items. Some increases mentioned were full time earnings and IMRF pension expenses in the Accounting Division. These items show an increase of 15.3% and 29% respectively. This increase is due to the data entry clerk's position being transferred from the Data Processing Division to the Accounting Division. Commissioner Ann Smilanic stated that she would like to see the vehicle sticker program eliminated this year. Ms. Smilanic also asked how many tickets are issued each year for vehicle sticker violations. Mr. Ellsworth stated he was in the process of producing a memo that will highlight the financial impacts of eliminating the vehicle sticker. Commissioner George Busse asked if the Resource Center came to fruition whose department would it fall under. Mr. Janonis stated that it would probably initially fall under Police or Human Services. Mr. Busse suggested that maybe the $1,000 set aside for the Vision Program under Human Services could be used as seed money to get the process started on the Resource Center. IV. CHAIRMAN'S REPORT There was nothing to report. V. FINANCE DIRECTOR'S REPORT There was nothing to report VI. OTHER BUSINESS There was nothing to report. VII. NEXT MEETING: OCTOBER 24, 2002 Commissioner Vince Cn'ochocinski motioned to adjourn which Commissioner Ann HulI seconded. The meeting was adjourned at 9:45 p.m. The next meeting will be October 24, 2002. Respectfully submitted, Lisa Burkemper Administrative Assistant Finance Department