North Cook News

Village of Bartlett Committee met December 19.

Here is the minutes provided by the Committee:

President Wallace called the Committee of the Whole meeting to order at 7:15 p.m.

Present: Chairman Camerer, Carbonaro, Deyne, Gabrenya, Hopkins and President

Wallace

Absent: Trustee Reinke

Also Present: Village Administrator Paula Schumacher, Assistant Village Administrator Scott Skrycki, Finance Director Todd Dowden, Community Development Director Jim Plonczynski, Assistant Community Development Director Roberta Grill, Economic Development Coordinator Tony Fradin, Director of Public Works Dan Dinges, Public Works Engineer Bob Allen, Building Director Brian Goralski, Food & Beverage Manger Paul Petersen, Chief Patrick Ullrich, Deputy Chief Chuck Snider, Deputy Chief Geoff Pretkelis, Village Attorney Bryan Mraz and Village Clerk Lorna Giless.

Finance & Golf Committee:

1. Six Month Budget Review

Chairman Deyne introduced the Six Month Budget Review and asked the finance director to proceed.

Finance Director Todd Dowden presented the projections for our major operating funds based upon actual activity through October 2017. Below is a highlight of the funds:

General Fund Overall, the General Fund is projected to have an operating deficit at year-end of $507,694 compared with a deficit budget of $413,016. Revenues in total are expected to be under budget by approximately $457,100. Changes to the State shared income tax is the as main reason for the revenues being under budget and are expected to be short by $465,000. The State reduced the amount to be distributed to municipalities by 10% with its fiscal 2018 budget.

Revenues that are doing well in the General Fund include:

➢ Real Estate Transfer Tax – 15% ahead of budget

➢ Building Permits – 5% ahead of budget

➢ Gaming Tax – 10% ahead of budget

Revenues that are projected to finish the year under budget include:

➢ State Income Tax – 11% below budget

➢ Local Use Tax – 2% below budget

➢ Telecommunications Tax – 5% below budget

Expenditures are projected to be $362,422 under budget. This Police Department is projected to be under by about $200,000 mainly due to open positions during the year. The Streets Department is under budget for tree purchases by about $50,000. Other departments also had positions open that contributed to the lower costs. The Building Department again has increased plan review fees which are billed to the developer and recorded as revenue. Community Development is over due to the health inspector expense being moved from the Administration Department.

Water Fund-

Water Fund is projected to have an operating surplus of $831,725 based on the first six months of activity. The operating surplus is being used for capital projects including water tower painting, main replacement, and the Lake Michigan water transition. Water sales are very close to budget at this point in the year. Expenses are also projected to be close to the amounts budgeted. Service Agreements for maintaining the wells and water purchases from Elgin are being closely monitored.

Sewer Fund-

The Sewer Fund is projected to finish the year very close to the budgeted surplus of $394,308. Like the Water Fund, the surplus operating revenue will be used for capital projects. Revenue for the Sewer Fund is expected to finish about $18,000 over the amount budget. The projected operating expenses are expected to be over budget mainly for chemical supplies.

Parking Fund-

The Parking Fund is projected to end the year with an operating surplus of approximately $26,000 as a result of not needing to replace two parking meters.

Golf Fund-

The Golf Fund is projected to end the year with an operating surplus of approximately $17,900. Revenues for the Golf Course and food & beverage divisions combined are projected to be about $3,550 over budget. Operating expenses for all divisions of the Golf Course are expected to be over budget by $32,345.

Mr. Dowden stated that there are a few parts to the fund balance policy and stated that for the General Fund the main part is to have between 25% and 35% of the operating expenditures. Average increase in the property tax levy is another piece to the fund balance policy and they have not been raising it. Annual current liabilities is another piece and covers accounts payable and accrued payroll for an average total of $900,000. Designated reserves include funds earmarked for projects are added to the policy amounts. Currently, $1.2 million is designated to be used for the police building. He stated that 2016/17 unassigned fund balance ended with $10.5 million. For 16/17 the minimum fund balance is $7.5 million and the top of the fund balance policy would be $9.6 million. With the projection of using $507,000 in 17/18, it will bring the unassigned fund balance to just over $10 million. We are projected to be $250,000 over the fund balance policy. In 2018/19, we are transferring the $1.2 million out of the General Fund to the Municipal Building Fund. This will drop the policy amounts. Projections are assuming an increase of 2% for expenditures and no increases to revenue. 2% or $450,000 is very conservative for an annual increase. It would increase the use of fund balance to $945,000 for 2018/19 and by the 19/20 year, if there were no increases in revenue and we continue with the 2% increase, the ending unassigned balance would be under the minimum fund balance of $6.5 million.

Chairman Carbonaro asked why they are transferring $1.2 million and where is it going?

Mr. Dowden stated that it was for the police building. It is going from the General Fund to the Municipal Building Fund.

President Wallace stated that if nothing happens, in a few years our fund balance is going to be under the minimum guidelines.

Chairman Hopkins stated that we definitely should not let that happen.

Chairman Deyne agreed.

President Wallace questioned Mr. Dowden if 2% is a good number?

Mr. Dowden stated that 2% is very low, very conservative.

President Wallace stated that it is too conservative when you talk about the general cost-of-living. Everyone should keep this in mind that this was based on a really conservative cost of operating anything. He did not know any business that could keep operating with a 2% increase annually. He did not think it was realistic.

Chairman Hopkins asked how much salt they had on hand.

Public Works Director Dan Dinges stated that they are full.

President Wallace stated that he has heard some rave reviews from staff about not having to do the brush pickup. He thought they would see some real benefit to that in regards to injuries, etc.

Chairman Camerer moved to adjourn the Committee of the Whole meeting and that motion was seconded by Chairman Hopkins.

Roll Call Vote To Adjourn

Ayes: Chairman Camerer, Carbonaro, Deyne, Gabrenya, Hopkins

Nays: None

Absent: Chairman Reinke

Motion Carried

The meeting adjourned at 7:32 p.m.

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