HomeMy WebLinkAbout10/16/2003 FC minutes RAFT
FINANCE COMMISSION
MINUTES OF THE MEETING
OCTOBER 16, 2003
VILLAGE HALL BUILDING
DRAFT
CALL TO ORDER
The meeting was called to order at 7:00 p.m. Those present included Chairman John Kern and
Commissioners Ann Hull, Brian McPartlin, Tom Pekras and Ann Smilanic. Also present were Village
Manager Michael Janonis, Director of Human Services Nancy Morgan, Deputy Director of Human
Services Jan Abernethy, Director of Finance David Erb, Deputy Director of Finance Carol Widmer and
Finance Administrative Assistant Lisa Burkemper. Assistant Village Manager Dave Strahl arrived at 7:20
and Commissioners Charles Bennett and Vince Grochocinski were absent.
II. APPROVAL OF MINUTES
Commissioner Tom Pekras motioned to approve the minutes efJuly 24, 2003. Commissioner Ann Hull
seconded the motion and the minutes were accepted as presented.
iii. REVn~W OF THE PROPOSED 2004 VILLAGE BUDGET
Overview
Village Manager Michael Janonis began the discussion with a brief overview of the 2004 Proposed
Budget. Mr. Janonis stated currently there is a $387,366 deficit in the 2004 Proposed Budget. $270,000
will be drawn down from fund balance as previously planned and the rest will come from additional cuts
or an additional drawdown. Mr. Janonis also stated that there were no new initiatives, no new programs
or new staffing in the 2004 Proposed Budget.
Chairman John Kern voiced his opinion on the money the Historical Society is budgeted to receive. Mr.
Korn stated he hopes the Historical Society won't ask for additional monies if their donation were cut
further by the village. Mr. Korn also stated that he hopes members of the community will come forward
and donate to the Historical Society once they see the Proposed 2004 Budget.
Director of Finance David Erb provided a brief overview of the 2004 Proposed Budget. Mr. Erb stated
that overall the 2004 Proposed Budget totals $74,964,286, which represents a decrease of 13.7% over
the 2003 Budget. Some the 2004 Proposed Budget highlights mentioned were that the operating budget
reflects a 0.2% increase over last year and the capital budget represents a 52.5% decrease from last year
(due to the completion of the Village Hall and Parking Deck). Mr. Erb also mentioned that the total
revenues are estimated at $67,187,854, which represents a decrease of $9,679,658 or 12.6% from 2003
revenues. This decrease is due mostly to the 2003 General Obligation Bond Issue for the Village
Hall/Parking Deck. Also mentioned were an 11.79% decrease in state income tax and a 27.65% increase
in home rule sales tax (with the addition of 4¼% on sales tax on January 1, 2004).
Commissioner Ann Smilanic asked why the proposed budget reflects two separate parking funds. Village
Manager Michael Janonis stated that the village has three commuter lots we lease from Metra and two
lots that are village owned. Metra requires the village account for revenue generated in their lots;
therefore the money collected must be separated.
Commissioner Ann Smilanic asked why there are no revenues for the parking deck. Director of Finance
David Erb stated that the Bond Ordinance limits the amount of revenue the village could collect. Plans
for the use of the deck have not been finalized.
Human Services
Director of Human Services Nancy Morgan began her proposed budget presentation by stating the 2004
Proposed Budget totals $784,867, which represents a 3.5% increase from the 2003 Budget. Ms. Morgan
also stated that of the $784,867, $45,000 was allocated as relocation expenses for the department.
Ms. Morgan highlighted several line items that showed a change over the 2003 Budget. Among the items
discussed were Personal Services, Employee Benefits and Commodities and Supply Expenditures, which
showed an increase of 3.5% or $26,582.
Commissioner Ann Smilanic asked why volunteer hours were increased from 1,900 hours in 2003 to
2,600 hours in 2004 at the Senior Center. Ms. Morgan stated that the Senior Center in the new Village
Hall would be unmanned. Human Services will be located on the second floor and will not be able to
meet with residents as they enter the Senior Center, therefore they will require more volunteers at the
front desk.
Fillage Administration
Village Manager Michael Janonis outlined the proposed budget for the Manager's Office. The overall
proposed budget reflects a 2.7% increase among the five sub groups within the Manager's Office. Mr.
Janonis stated that the Public Information Division's budget reflects a $31,000 decrease due to reducing
the village newsletter from 6 issues to 4 issues per year. Television Services budget decreased 6.1% due
to Television Services moving back to the new village hall.
Assistant Village Manager David Strahl mentioned that the village took possession of the new Parking
Deck on October 8th, furthermore the Parking Deck came in under budget. Mr. Strahl also mentioned
that the Village Hall project was currently ahead of schedule and should be under roof by the end of
November.
Commissioner Tom Pekras asked how many spaces the new Parking Deck will have. Mr. Strahl stated
the deck would have 384 parking spaces.
Commissioner Ann Smilanic asked when the parking fee for the commuter lots would be increased. Mr.
Janonis stated that it would probably be in November or December after the automated payment systems
are installed.
Finance Department
Director of Finance David Erb began his presentation with an overview of the Finance Department
budget, which is up 5.7% over 2003. The increase is due mostly to increases in health insurance, pension
contributions and liability insurance. Mr. Erb stated that all other expenditure categories showed a
decrease from the previous year.
Mr. Erb stated that the IMRF contribution rate will increase from 4.89% to 7.5% in 2004 and medical
insurance costs will increase 18% as well.
V.
VI.
VII.
Chairman John Korn asked what the village pays per employee for health insurance. Mr. Erb stated that
the average cost the village contributes per employee for insurance is $10,880.
CHAIRMAN' S REPORT
There was nothing to report.
FINANCE DIRECTOR' S REPORT
Finance Director David Erb distributed the 2004 - 2008 Capital Improvements Plan to each of the
commission members.
OTHER BUSINESS
Village Manager Michael Janonis mentioned that the finance commission is scheduled to meet on
October 30th, which is the night of the Sister Cities Thanksgiving in October dinner. Mr. Janonis asked if
the finance commission would like to reschedule their meeting to Wednesday, October 29th. There was a
brief discussion regarding rescheduling the meeting. Commissioner Ann Hull motioned to change the
finance commission meeting from October 30th to October 29th. Commissioner Brian McPartlin seconded
the motion and the motion carried.
NEXT MEETING: OCTOBER 23, 2003
Commissioner Ann Smilanic motioned to adjourn which Commissioner Brian McPartlin seconded. The
meeting was adjourned at 9:58 p.m. The next meeting will be October 23, 2003.
REspectfully submitted,
Lisa Burkemper
Administrative Assistant
Finance Department