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2002-02-19 - Finance Committee - Minutes Board or Commission: ❑ Finance Committee Document Type: 0 A e g nda 0 Minutes Meeting ate: 02/19/2002 Type of Meeting: ❑ Regular Meeting Thank you for your participation at last evening's Finance Committee. I believe the following capture the nature of comments raised by those in attendance. From the Board: Elliott Hartstein, John Marienthal (late), Jeff Braiman, DeAnn Glover, Jeff Berman, Chuck Johnson, Bruce Kahn (late). From Staff: Bill Balling, Ghida Neukirch, Scott Anderson,Art Malinowski, Bill Brimm. Treasurer Joe Tenerelli also in attendance. Review of FY 2002-2003 Budget Concepts: A review of the upcoming budget presentation was given concentrating on areas of staffing, health based insurance, capital projects, and end of year forecasting for the Corporate Fund. On matters of staffing, the Committee accepted the initiatives for the Police Civilian Family Crisis Specialist and second part-time Technical Service Specialist positions. In addition,the 5th Administrative Fire Captain position as a promotional move within the Department was approved as well as retaining as open the Public Works Administration Special Projects Representative (Jack Weyrauch). The most concern was raised regarding the Water& Sewer Utility Locator. There was concern about what this person would do in terms of workload, especially if full time. The Committee asked for clarification of duties and anticipated work loads. They also wanted to have an understanding about what this person would do when there are no utility locates. Comments included possibly retaining as part time; spreading locate work out amongst other staff; can a recent or anticipated retiree be used to staff this position on an as needed basis; is it possible to share this position with another community;what is the average weekly workload necessary to undertake locate work? Ray will be asked to prepare further analysis either as part of or ahead of the budget presentation. The Committee accepted, generally without comment, the 4% salary adjustment proposed as well as retaining the group insurance plan as described with funding required in excess of what has been applied to the budget to come from prior accumulations of the insurance rate stabilization reserve. A detailed work effort to be undertaken by staff on matters of group health insurance was described for full implementation in FY 2003-2004 to coincide with the next round of fire negotiations. The Committee was aware of challenges with the insurance industry as a whole, mostly as a direct result of the September 11 disasters in general compounded with rapid escalation of health sector costs specifically. Two end of year purchases or reserve set-asides were discussed. Based upon further analysis, it would appear that a cash out of the Oce copier will not occur with lease payments to continue toward final purchase. Additionally, a thought on selling copier services was brought up but based on office configuration and staffing, this may not be feasible or should receive an aggressive marketing effort. On the matter of the Pace initiative, the Committee supported continued work with Pace to refine the current proposed shuttle schedules and were supportive of the Pace Van Pool program. An amount equal to as much as $40,000 was identified and based on program parameters, would be set aside if the final service profile is accepted. A minimum commitment of one year was acceptable and continuing beyond that point would be based on ridership. On the matter of the van, staff will need to determine vehicle flexibility if ridership exceeds the capacity of the van (15 passengers, including driver). Lastly, the Committee supported the concept of re-bidding custodial services but allowing staff the flexibility to negotiate away from a low bidder with service and quality control the dictating forces in any final contract recommendation. Amusement Tax Ordinance: Staff reviewed the Amusement Tax ordinance and supporting detail. The Committee asked that the rate be increased to 4% rather than have to come back at some time in the future to increase to what appears to be a consensus maximum rate. In addition, it was suggested that action on the Ordinance wait until after the proposed bowling alley and entertainment center issues are resolved. Discussion took place on if the tax applied to coin operated amusement devices (pinball, video games, etc). The consensus of the Committee was to review individual machine licensing fees and this will be undertaken by staff with a recommendation concurrent with the Amusement Tax ordinance. Other comments-notify Les Ottenheimer about the ordinance, review policy on impact on educational and not for profits if they sponsor a for profit event or organization as a fund raiser(World Wrestling Federation example). Staff will continue their work and will present an ordinace(s) at a later date. Revenue Diversification: This issue was discussed briefly without direction from the Committee. One concept that was raised by staff dealt with a video rental tax that is in place in some other communities. This appeared to be interesting to the Committee and will be explored. The members were asked to direct any ideas to staff for further review. It was noted that in FY 2002-2003, reviews will be undertaken on fees paid for liquor licenses, business licenses and permit fees for garage sales. Ambulance Transport Fee-Resident Component?: This matter was discussed by the Committee based on analysis prepared by the Fire Service. The Committee supported further work in this area possibly based on an average of ALS/BLS fees charged to residents by area fire companies (Assumption#2). This would be reviewed for implementation as part of the FY 2003-2004 budget. Comments-our policies should be that the Village will only recover what insurance or other similar programs will remit and will not balance bill or send to collections; also,we should refrain from sending any non-paid billing to collection if the resident cannot pay or if insurance programs will not remit; notification of collection and payment approaches should be part of the billing process, not advised ahead of the process or no one will pay, especially if collections efforts are not to be undertaken. Staff will continue to evaluate this and make an ordinance recommendation later in FY 2002-2003 for May 1, 2003 effective date. CIP Project Status: The Committee approved of the concept CIP project status document and asked that it be part of the Monthly Manager's Report but reported on a fiscal quarterly basis. Therefore, the first status report will be as of April 30, 2002 to kick off the reporting going into the new fiscal period and to capture initial project status. Adequacy of Water and Sewer Rates: The preliminary FY 2001-2002 analysis of water and sewer rates was distributed along with a proforma for FY 2002-2003. Initial indications for FY 2001-2002 note a positive operating variance of$240 thousand which includes an estimated $315 thousand of fixed fee transfers. Without this transfer, the operating rate to expense variance would have been approximately$75 thousand or$.04/thousand (break-even based on $1.84/1,000 water versus $1.80) Going forward, the initial rate necessary for FY 2002-2003 is $2.03. The staff recommendation is to retain the flat fee charge at$5.50/month and transfer any excess collections to offset the rate deficit. This was approved by the Committee. Based on initial budget values and estimates, applying these fees deduces the expense variance to $.03/1,000 gallons ($1.83). The break-even is a final expense reduction based on actual performance of$54 thousand or the net sale of an additional 30 million gallons at$1.80 or a combination thereof. Other Item: Staff was asked to evaluate whether in-house legal counsel is warranted or if the current approach toward legal representation is sufficient.