Minutes of the Budget Hearing of the Gurnee Village Board - March 21, 2011

MINUTES OF BUDGET HEARING #3
OF THE GURNEE VILLAGE BOARD
 
GURNEE VILLAGE HALL
MARCH 21, 2011
 
Call to Order
Mayor Kovarik called Budget Hearing #3 to order at 6:30 p.m.
 
Other Officials in Attendance
James T. Hayner, Village Administrator; David Ziegler, Community Development Director; Diane Lembesis, Finance Director; Tom Rigwood, Director of Public Works; Fred Friedl, Fire Chief
 
Roll Call
PRESENT:       5- Ross, Garner, Jacobs, Balmes, Morris
ABSENT:         1- Schwarz
 
 
 
a) Special Revenue Funds
 
Mr. Hayner gave the following Power Point presentation.
 
 Special Revenue Fund
 
  • Funds established for those activities that must be accounted for separately from general government operations.
  • 911 Fund
  • Debt Service
  • Impact Fee Fund
  • Asset Forfeiture Fund
  • Golf Course Fund
 
b) Debt Service Fund
 
  • Bond Fund accounts for repayment of long-term debt.
  • Abated property tax levy; therefore transfer required from the General Fund.
  • FY10/11 expenses:
  • Principal of $ 1.05 million;
  • Interest $214 thousand;
  • Bank fees of $700.
  • Special Service Area #2 accounts for payments made by taxpayers related to special assessments.
  • Not backed by General Obligation of the Village.
  • FY 10/11 expenses:
  • Principal of $25 thousand;
  • Interest of $16 thousand;
  • Bank fees of $350.
 
General Obligation Debt
 
  • Series 2004 Refunding
  • Principal Outstanding: $1,925,000 as of 5/1/11
  • FY 11/12 Principal Payment: $360,000
  • FY 11/12 Interest Payments: $ 64,732.50
  • $254,840 paid by General Fund
  • $169,893 paid by Utility Fund
  • Series 2009 Refunding
  • Principal Outstanding $5,270,000 as of 5/1/11
  • FY 11/12 Principal Payment $690,000
  • FY 11/12 Interest Payment $149,775
 
Asset Forfeiture Fund
 
  • Accounts for monies acquired through outcome of drug-related criminal cases or DUI court fines collected.
  • May 1, 2011 cash balance estimated at $56 thousand, and looking to add $4,150 to that balance.
  • Federal and State law require monies expended in local law enforcement efforts such as purchase of D.U.I equipment.
 
Impact Fee Fund
 
  • Accounts for monies collected from developers to defray future costs associated with additional traffic, sidewalk, storm water, and public safety needs.
  • May 1, 2011 cash balance estimated at $2.6 million.
  • FY 11/12: Proposing $330,000 transfer to fund improvements to 3 detention facilities. The locations of the detention facilities are: Waveland Ave., Gurnee Industrial Park, and Country Trails.
 
Golf Course Fund
 
  • Established in 1992 when property was donated.
  • Lease term expires 2031.
  • Income limited to investment income on cash balances in fund, projected to be $15.
  • Expenditures limited to occasional legal or other expense. Budgeting $2,000 to allow for contingencies.
 
Questions / Comments:
 
No questions.

c) Police and Fire Pension Funds

  • Account for resources necessary to provide retirement and disability pension benefits to sworn personnel.
  • Financing provided by Village contributions, employee payroll withholdings, and investment income.
  • Each fund has its own board which contracts for professional investment management, approves expenditures, and reviews requests for retirements and/or disability.
 
Police & Fire Pension Revenues
 
  • Investment Income projections
  • Police $1,023,500
  • Fire $750,000
  • Employer contribution and change over prior year:
  • Police $1,259,628, .9% decrease or $11,046
  • FY10 investment return 12.32%; and funding level of 66%. Funding level was 61% last year.
  • Fire $1,068,451, .3% decrease or $3,484
  • FY10 investment return of 10.18%; and funding level of 71%. Funding level was 67% last year.
  • Projected employee payroll withholdings and rate:
  • Police $610,000 (9.910% pretax);
  • Fire $439,000 (9.455% pretax)
 
Police & Fire Pension Expenditures
 
  • Total Expenditures: Police - $1,021,950       Fire - $642,900
  • Benefit Payment (Salaries & Wages) including retiree, surviving spouse & disability pensions.
  • Police $925,500, and Fire $596,600
  • Personnel expense includes seminars for Board members, medical reviews, etc.
  • Police $6,750, and Fire $5,500.
  • Professional Services include Investment Management, Bank Fees, and proportional share of Audit fees.
  • Police $72,200, and Fire $24,200.
  • Contractual includes cost of out-sourced Pension Accounting and Benefits Administration, and other miscellaneous items.
  • Police $17,500, and Fire $16,600.
 
Questions / Comments:
 
No questions.
 
It was moved by Trustee Jacobs, seconded by Trustee Balmes to adjourn the meeting.
 
Voice Vote:      ALL AYE:          Motion Carried.
 
Adjournment
Mayor Kovarik adjourned the meeting at 6:45 p.m.
 
Andrew Harris,
Village Clerk