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HomeMy WebLinkAbout11/03/2011 FC MinutesFINANCE COMMISSION Minutes of the Meeting November 3, 2011 Emergency Operations Center 1720 W. Central Road I. Call to Order The meeting was called to order at 7:00 p.m. Those present included Chairman Vince Grochocinski and Commissioners Pam Bazan, Wayne Gardner, John Kellerhals, Tom Pekras, Ann Smilanic and Don Ocwieja. Also present were Assistant Village Manager David Strahl, Finance Director David Erb, and Deputy Director Lynn Jarog. II. Approval of Minutes a. October 20, 2011 Commissioner Pekras moved to approve the minutes and Commissioner Smilanic seconded the motion. The minutes were approved. III. Citizens to be Heard There were no citizens to be heard. IV. Old Business There was no Old Business V. Review of Proposed 2012 Village Budget a. Village Administration Budget Assistant Village Manager Dave Strahl reviewed the proposed 2012 budget for Village Administration. Divisions included Public Representation, Boards & Commissions, Village Manager's Office, Legal, Human Resources, Information Technology, Village Clerk's Office and Television Services. b. Finance Department Budget Finance Director Dave Erb Police reviewed the Finance Department's 2011 accomplishments and 2012 Budget and Department objectives. c. Non - Departmental Budget Finance Director Dave Erb reviewed the proposed 2012 non - departmental budgets. Non - departmental budgets include Debt Service, Pensions, Insurance and MP Public Library. At this point, staff was excused from the meeting. Further deliberation of the proposed budget was held among the commission members. A consensus was achieved on recommendations to present to the Village Board. Comments made by Chairman Grochocinski follow below. Comments by Vince Grochocinski, Chairman of the Finance Commission, to the Village of Mount Prospect Trustees on November 8, 2011. On behalf of the Finance Commission members I would like to thank all Village staff for their efforts on the budgets and the many challenges we have faced as a Village throughout the year. As the Commission members viewed the various budget presentations and discussed the proposals, the following comments achieved enough support to be presented to you at this time. 1. There is general support for the expansion of the Community Connections Center. The minimal funding for this expansion could be found in numerous places in the budget which would not impact the other services planned 2. We are also supportive of the 2% salary increase proposed for non -union staff although we would rather it be a pool from which raises could be granted instead of a cost of living increase for everyone. It was also noted that the bonus pool and the money for salary adjustments in the budget are not included in the 2% figure nor are the related payroll taxes and pension costs included in the budget as proposed 3. There was majority support for the proposed 4.3% real estate tax increase. One Commissioner voted for no increase and one voted for a 2% increase. There is a level of agreement that real estate tax increases over the years have decreased the affordability of housing in the Village, and although the Village's share of such taxes is low, some solution to this situation must be found. This support for the real estate tax increase does not extend to the $25 increase in the Refuse Disposal charge. I am requested to point out that the refuse charge in general has historically been part of our real estate taxes and that the $25 increase is viewed as a real estate tax increase, and as such, the Commissioners do not support this charge. 4. From an expenditure standpoint the Commissioners noted that many areas in the budget which were cut or scaled back in prior years have been restored Since the economy and the financial problems of the state and county government have not improved, the Commissioners expressed confidence that should it become necessary, the Village staff will make appropriate adjustment to the 2012 budget as required during the year. 5. The one major expenditure with which the Commissioners strongly disagreed was the $400,000 for the standby generator at another pumping station. The scenario in which both the water supply is cut off from Chicago and the power is out to Mount Prospect for an extended period of time is viewed as so remote as to have these generator considered a waste of money. Other water and sewer projects would appear to have higher priority, and if no other projects are found, a reduction in water rates should be considered. The one Commissioner who favored the generator addition did not think it should take place in 2012. 2 6. The police and fare pensions are one of the most critical issues facing the Village. The Commissioners felt very strongly that the pension costs must be apart of the collective bargaining with the police and fare unions. We realize that the pensions themselves cannot be changed due to state law, but the pensions must be considered as part of the cost which the representatives of the rank and file of the unions have urged on state law makers. To the Commissioners this means that the trade off for higher pensions is lower salaries and more contributions to the cost of health care. VI. Any Other Business There was no Other Business VII. Chairman's Report There was nothing to report. VIII. Finance Director's Report There was nothing to report. IX. Next Meeting The Finance Commission did not feel an additional meeting to discuss the budget was needed. As such, the next meeting scheduled for November 10, 2012 was cancelled. X. Adjournment Commissioner Kellerhals motioned to adjourn. Commissioner Pekras seconded the motion. The meeting was adjourned at 9:35 p.m. Respectfully Submitted, Don Ocwieja