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2006-11-13 - Finance Committee - Minutes Board or Commission: ❑ Finance Committee Document Type: ❑A e g nda 0 Minutes Meeting ate: 11/13/2006 Type of Meeting: ❑ Regular Meeting TH'9 ij'P°a"' e ou"' a""jo r"o"""v""e"' in""a"'"n""c""e"'tom"m"""i{eec""o"'"n""v""e"'net on g on ay, ovem er at the Village Hall, Lower Level Conference Room.Those in attendance were: Elliott Hartstein,Jeff Braiman, DeAnn Glover, Jeff Berman, Bruce Kahn, Steve Trilling, Brian Rubin,Jan Sirabian,and Joseph Tenerelli. From Staff: Bill Brimm, Ghida Neukirch, Scott Anderson,and Leisa Niemotka. The following matters were reviewed: NEW BUSINESS TAX YEAR 2006 PROPERTY TAX LEVY INITIAL OVERVIEW WHB provided a summary of the truth in taxation report tendered to the Board on November 6th,2006. It was reiterated that the Village's Levy as proposed will not be greater than 105%of the previous year's levy and a public hearing will not be required.The good news in relation to threshold not being exceeded was driven primarily by the moderation in the pension levies. It was explained that that trend cannot be counted on going forward into future levy years. FY 2007 GOLF BUDGET DEVELOPMENT SA gave a preliminary overview of current year performance and initials comments regarding the next year budget were provided. Proposed rate increases were discussed and the budget document will be brought before the Board for comment and consideration on December 4,2006. FY 2007 CAPITAL IMPROVEMENT PLAN SA provided an overview of the new projects proposed for the next five year plan and an explanation of the new rating tool used to evaluate projects.The formal plan will be presented to the Board on December 4,2006. FY 2007 BUDGET CALENDAR WHB discussed the budget instructions that have been circulated to Department Directors and the mechanics of an eight month budget to bridge the gap to a calendar fiscal year.The Board was told that the development of the eight month budget will not be merely an exercise in math(2/3 of the prior budget)rather it will capture the true expenditure/expense profile expected during those eight months. Seasonal considerations make it essential to diligently review the budget requests. Exclusive of wages and benefits,budget growth is targeted at 3%.WHB explained the long-range fiscal plan and the use of CPI and ECI to arrive at the target. SALARY PLAN/GROUP HEALTH RECOMMENDATIONS FOR FY 2007 WHB reported that based upon comparable survey data compiled by Art Malinowski,salary growth equal to 3.5% will be budgeted.The recommendation for group health insurance is that the budget remain unchanged from the previous year.The conversion to a self-insured plan has allowed the Village to maintain the same rate structure and still retain adequate reserves to ensure stability in the near future. Planned for FY 2008 is the introduction of another plan developed around high deductibles.Staff will also be researching tax vehicles(HRA/HSA)to insert some consumer driven opportunities to help moderation the growth in expenses. FY 2006-2007 SIX MONTH REPORT SA reviewed the numbers and stated that the formal report will be presented to the Board on 11/20/06. OLD BUSINESS WATER RATE&FEE DISCUSSION WHB stated that the current water rate as a charged($1.80 per 1000 gallons)is not adequate to cover operating expenses.An operating loss of$318,000 is projected for the current year. It is recommended that the debt service flat fee be reduced to reflect the reduced debt load on the Village for the booster station and the consumption rate be increased. CORPORATE FUND FUND BALANCE REPORTING WHB reported that the Village's cash and investment reserve and unreserved fund balance are at levels that exceed the policy minimums($6.3 million for cash and investments and$8.3 million in unreserved fund balance). HOME RULE SALES TAX SUNSET PROVISION In compliance of Ord.2004-16,a review took place to determine if the home rule sales tax rate should be amended or left as is. Based upon the necessity of the revenue earmarked for roadway construction to continue,the Board opted to leave the rate as it currently stands. CALENDAR 2007 MFT STREET PROGRAM LONG TERM FUNDING ISSUES WHB summarized his November 1,2006 memo to the Village Board addressing concerns regarding the level of funding for the street maintenance program.The program is funded by a percentage of the home rule sales tax and the state distribution of the motor fuel tax.The challenge is that the growth in the revenue is relatively stagnant in relation to the inflation in street construction.WHB suggested that the Village look to increase its maintenance schedule interval from the current 15 years to 20 years.This will allow 6 to 6.5 miles of roadway repair in a given plan year(down from 8 miles). RESIDENTIAL REFUSE COLLECTION CONTRACT RENEWAL WHB summarized staffs ongoing meetings with Waste Management regarding a contract extension.WM has offered a one time 15%increase on the waste hauling component of the current rate.With the increase,the rate would be frozen for another five years with the mutual option for a one year extension.The Board authorized the staff to move forward with discussions.The Commercial Waste Franchise concept was discussed and staff with waiting for a fee matrix to evaluate the price advantages and ensure that the business community realizes a benefit in comparison to current price levels. CALENDAR2007 GOAL SETTING WHB talked about the goal setting process for the next budget and how best to communicate those results to the Board.