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JOINT COMMITTEE OF THE WHOLE MINUTES
AUGUST 12, 2014
I. CALL TO ORDER — ROLL CALL
The meeting was called to order at 7:02 p.m. in the Village Board Room of the Village
Hall, 50 South Emerson Street, by Mayor Arlene Juracek. Trustees present included Paul
Hoefert, John Korn, John Matuszak and Steven Polit. Finance commission members
present included Vince Grochocinski, Pam Bazan, John Kellerhals and Thomas Pekras.
Staff present included Village Manager Michael Janonis, Assistant Village Manager David
Strahl, Finance Director David Erb, Human Services Director Julie Kane, Deputy Director
Jan Abernethy, Public Works Director Sean Dorsey, Community Development Director Bill
Cooney, Deputy Fire Chief Henry Dawson, Fire Marshall Bryan Loomis and Battalion
Chief Brian Lambel.
II. APPROVAL OF MINUTES OF THE COMMITTEE OF THE WHOLE FOR MAY 27, 2014
Motion made by Trustee Hoefert seconded by Trustee Matuszak to approve the minutes..
Minutes were approved.
III. CITIZENS TO BE HEARD
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IV. 2014 MID -YEAR REVIEW AND UPDATE OF THE 2015 BUDGET FORECAST
Finance Director Erb stated that the current projections for 2014 show a potential surplus
of $299,500. He stated the Telecommunication Tax has significantly dropped over the
past year in addition there has been one amendment to the Budget which is related to the
repair of flood damage to the Village Hall. He stated legal services are over budget due to
the recently concluded litigation. He did state that sales -tax revenue continues to be
ahead of projections. He stated the revenues projected for 2014 are expected to be
$567,500 above amended budget with expenditures of $260,000 above amended budget.
He also projected a general fund reserve of approximately 25.3% by the end of 2014. He
stated the average annual savings from the budget as a percentage of expenditures has
been 1.8% consistently from 2009 to 2013. He is projecting a slight but steady revenue
growth over the next year with sales -tax receipts projected to grow approximately 1.3%
over the previous year and the reduction in the Telecommunication Tax of approximate
27%.
For 2015 he is projecting a preliminary 4.46% Property Tax increase, a 2% increase in
commodity expenses, and a 2% general wage increase. He stated that budgets for
insurance and pensions are adjusted according to projections and mandates. He stated
based on the current estimates the General Fund reserve could fall slightly to 24.8% by
the end of 2015. Based on the preliminary numbers submitted there is a projected surplus
for 2015 of $262,715. He stated the Property Tax increases typically between 3 and 5%
annually.
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General comments from Village Board members include the following items:
• There were general comments regarding the general fund budget process.
• There was also a discussion regarding street and flood funding programs and the
funding sources of funds associated with these programs.
• There was also extensive discussion regarding the decrease in telecommunication
tax and the impact of the general trend from land lines to cell phones as the
primary means of communication and that impact on revenue.
• It was also pointed out that the Property Tax percentage increases are based on
funding shifts for roads and refuse that were decided last year.
• There was a suggestion about reviewing the possible reduction in the property tax
rate increase based on the strength of other revenue sources projected for the
coming year.
• It was also noted that for each 1% Property Tax increase generates approximate
$175,000 of additional revenue.
Resident Jerry Navate, 209 N. Prospect Manor spoke. He wanted to know where the
impact of the recent settlement is shown in the Budget as presented.
Finance Director David Erb stated there is no impact on the Budget except for the
settlement amount spent out of reserves for the portion of the settlement that is the
Village's responsibility and insurance premiums that the Village pays annually.
V. MANAGER'S REPORT
Village Manager Janonis stated it is the Mayor's birthday on August 13 and wanted to
wish her a happy birthday.
VI. ANY OTHER BUSINESS
Trustee Matuszak requested a possible discussion at a September Committee of the
Whole meeting on property maintenance issues.
VII. ADJOURNMENT
The meeting adjourned at 9:06 p.m.
DAVID STRAHL
Assistant Village Manager
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