North Cook News

Village of Glencoe Board of Trustees Finance Committee met May 15.

Here is the minutes provided by the Board:

I. Call To Order And Roll Call

The Finance Committee of the Board of Trustees meeting was called to order by Trustee Vree at 6:01 p.m. on the 15th Day of May, 2018 in the Village Hall Conference Room.

The following were present:

Jonathan Vree, Chairman

Barbara Miller, Trustee

Dale Thomas, Trustee

Also present were:

Lawrence Levin, Village President

Philip Kiraly, Village Manager

Denise Joseph, Interim Finance Director

David Mau, Public Works Director

Cary Lewandowski, Public Safety Director

Sharon Tanner, Assistant Village Manager

Megan Hoffman, Assistant to the Village Manager

II. Public Comment

There were no comments from the public.

III. Consideration Of The Minutes

Trustee Thomas moved, seconded by Trustee Miller to approve the minutes of the April 17, 2018 Finance Committee meeting. Said motion passed with a unanimous voice vote.

IV. Review Of Monthly Financial Reports

The committee moved directly into questions about the April Monthly Financial Report. Trustee Miller inquired whether the report could include an additional prior year-to-date expenditure comparison to account for the transition of the Garbage Fund into the General Fund. President Levin suggested that might be accomplished by combining General Fund and Garbage Fund prior year-to-date expenses for comparisons sake.

Trustee Thomas asked about the overall trend for utility tax revenues, noting that revenues are ahead of prior year, but inquiring if overall utility tax revenues are trending down. Interim Finance Director Joseph noted that utility tax revenue is typically dependent on timing.

In reviewing sales tax revenues, Manager Kiraly explained that while there is not a major variance in sales tax revenues currently, the Village will keep a close eye on sales tax once the Walgreens at Hubbard Woods closes, which is expected in June. He also reminded the committee that sales tax revenues lag two months behind and that can delay the effect a major change would have on receipts.

Discussion then moved to State income tax revenues, with President Levin explaining that the impact of the 10% reduction in distributions will soon be realized by local governments, because the State of Illinois is no longer speeding up distributions to cover the reduction. As budget deliberations continue, the legislature is considering whether to continue the 10% reduction again this year. He added that they are also considering another reduction to the personal property replacement tax (PPRT).

Trustee Vree asked if there is a way for the Monthly Reports to show whether the year-to- date amounts are in line with the budgeted revenues and expenditures, to which Manager Kiraly responded that such changes will be considered and incorporated into future Monthly Reports by the new Finance Director. Trustee Vree also requested an explanation of the Risk Management expenses that contributed to the $351,634 year-to-date five year average line item, which Interim Finance Director Joseph agreed to provide an explanation for in advance of Thursday evening Village Board meeting.

In discussing Water Fund revenues, Interim Finance Director Joseph explained that this is the first month that captures revenues from the new water rate structure, including the new volumetric rate and fixed charge. Revenues from water sales are trending $82,429 ahead of prior year-to-date and are expected to continue trending ahead. President Levin noted that there should not be a year-to-date five year average figure for the Water Sales-Fixed Charge line item, which would also contribute to the total operating revenue figure. Manager Kiraly confirmed that the figure was included in error and will be corrected in advance of Thursday evening’s Village Board meeting.

Moving to permit revenues, Director Mau explained that while current year-to-date revenues are trending below prior year-to-date, the Village has only issued three building permits to date this year, but 14 others have been submitted and are being processed. He went on to note that in Fiscal Year 2018, 26 building permits had been issued in comparison to the 11 issued in Fiscal Year 2017. He added that each building permit results in anywhere from $60,000-$100,000 in revenue depending on square footage, the extent of work and landscaping plans. Manager Kiraly reminded the committee that a complete analysis of the building permit fee structure is scheduled for later this year.

Trustee Vree inquired and Manager Kiraly confirmed that budgeted revenues and expenditures are closer to actuals than in the past. Manager Kiraly added that a number of projections were modified with the Fiscal Year 2019 Budget, especially on the expenditure side, to bring the budget more in line with actual budget performance.

V. Review Of Fiscal Year 2019 Community Improvement Program Schedule

Manager Kiraly explained that there are no Community Improvement Program (CIP) related contracts coming to the Village Board for consideration at the May meeting. He noted that a number of projects that had been slated for Quarter 1 have been moved to Quarter 2 and will come to the Village Board for consideration in June, July and August.

Trustee Vree asked about the status of the enterprise resource planning (ERP) project, to which Assistant Village Manager Tanner explained that a contract with the new vendor, Tyler Technologies, is coming to the Village Board for consideration in June. She added that the analysis will include a breakdown of the project budget to illustrate costs for each year. This is in addition to the 10-year cost of ownership already provided to the Board, which included costs associated with implementation support and hardware. A second contract for the implementation support from Plante Moran is expected to come to the Village Board for consideration in July. Manager Kiraly added that the contract and cost breakdown will also be on the Finance Committee agenda in June for discussion. Trustee Vree suggested that a technology report be added to the Committee of the Whole or Finance Committee agenda as a standing item, considering the significant investment being made.

VI. Other Items For Discussion

Interim Finance Director Joseph shared that the response to the Vehicle and Animal License renewal deadline improved this year, with revenues $24,000 ahead of prior year-to-date. This was likely due to the threat of the $50 late fee encouraging residents to renew (adopted in Fiscal Year 2017), as well as to increased communication efforts. It was noted that the new vehicle registration data from the Secretary of State did not have a major impact on the process.

Trustee Thomas inquired how the Village might encourage more residents to purchase annual commuter parking lot permits. Manager Kiraly shared that the new Finance Director will be tasked with evaluating the overall structure for parking permits, including the potential of moving away from rear-view mirror hangers and to more sophisticated solutions, such as credit card machines and license plate readers.

VII. Adjourn

Trustee Dale moved, seconded by Trustee Miller to adjourn the meeting at 6:30 p.m. Said motion passed with a unanimous voice vote.

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