02/03/2003MINUTES
COMMITEE OF THE WHOLE
February 3, 2003
The Village Board met as a Committee of the Whole in the conference room of the
village hall at 8:58 p.m. on Monday, February 3, 2003. In attendance were:
Steven Harris, Mayor
Jerry Kayne, Trustee
Derek Ragona, Trustee
Harriet Rosenthal, Trustee
William Seiden, Trustee
Vernon Swanson, Trustee
Matthew Wylie, Trustee
2003-04 Budget
Robert D. Franz, Village Manager
Robert Fialkowski, Finance Director
Ellasion Phillips, Assistant Finance Director
Barbara Little, Director of Public Works/Engineering
Finance Director Fialkowski distributed a number of charts regarding the proposed FY
03-04 budget. Two of the charts presented the estimated expenditures and revenues
for the current fiscal year and next fiscal year and the effect on the ending fund
balances for both fiscal years. Generally, the funds were expected to remain in fairly
good shape.
A revised presentation of the major sources of revenues for all funds was also
discussed. For the General Fund, next year's proposed budget contained a 5%
increase in the general fund property tax levy, a 14% increase in the levy for the police
pension costs, decreases in the state shared revenues and no budget to budget change
in the hotel/motel tax revenue. Also estimated was 50% increase in building permit
revenue due to the expected development of the Baxter/Takeda land. With the
estimated expenditure increases coupled with the slight overall increase in revenues,
the budgeted fund balance draw down was about the same as the current budget.
Also presented was a revised chart of alternative revenues describing the home rule
sales tax, telecommunication tax and food/beverage tax. The telecommunication tax
would be an increase to the current 1 % tax that was converted from the infrastructure
maintenance fee to the simplified municipal telecommunication tax. He recommended
that the Village consider adding to the telecommunication tax or implementing a home
rule sales tax to have a revenue source that could keep pace with inflation. These
could be implemented in lieu of the vehicle license fee. However, staff recognizes that
this could impact the seniors who only pay $1 for a vehicle license.
The Water and Sewer funds were discussed next. Staff is recommending that the fees
be increased 4% for next year due to rising costs and needed. capital improvements.
The remaining funds were discussed briefly with no unusual activity noted. Manager
Franz indicated that these items were being presented for the Board's information to
generate later discussion concerning next year's budget. The annual fee and tax rate
survey was being prepared and would be distributed to the Board at a later date.
Committee of the Whole
February 3, 2003
Page 2
Mayor Harris asked that the estimated revenue from the Takeda development be taken
out due to the uncertainty of this activity and that he would like to see the estimates to
be as conservative as possible. Trustee Ragona asked if we could determine what the
breakdown in revenue from the telecom tax would be between residential and ,
commercial payers. Trustee Rosenthal asked if staff could prepare a pros and cons
listing of the alternative revenues presented.
The meeting adjourned at 9:30 p.m.
Minutes prepared by:
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