HomeMy WebLinkAboutMinutes - 10/15/2018 - Finance and Personnel CommitteeSPECIAL FINANCE AND PERSONNEL COMMITTEE
Monday, October 15, 2018
Municipal Center Classroom, 5:30 PM
Call to Order: The meeting was called to order at 5:30 p.m.
Roll Call: Deputy Clerk Meadows called the roll. Roll call: Members present: Chairman Curry,
Alderman Schaefer and Alderman Mihevc. Also in attendance: Finance Director Lynch.
Public Comment: None.
Motion to approve the October 1, 2018 Finance and Personnel Committee meeting report.
Alderman Curry asked if any of the Committee Members had any questions or comments
regarding the October 1, 2018 Finance and Personnel Committee meeting report. The Committee
Members offered no comments. Roll call: Vote: 3 ayes: Alderman Schaefer, Alderman Mihevc
and Alderman Curry. 0-nay, 0-abstained. Motion carried.
Property Tax Levy -Discussion and Recommendation
Alderman Curry commented on the fact that he is not a supporter of raising property taxes. He
reported that the City's property tax levy has remained flat for several years. Alderman Schaefer
agreed with Alderman Curry, he too is not in favor of raising property taxes. He noted that that
there are two Referendums on the upcoming November General Election Ballot, both asking
voters to approve a property tax increases.
Alderman Schaefer commented on the fact the City struggles with identifying ways in which to
fund the Capital Improvement Fund and the Road Program Fund. The Committee Members
collectively discussed the possibility of increasing the sale tax rate by %%. Alderman Curry
reported that currently the City's sale tax rate is lower than the majority of the surrounding
Communities.
The Committee Members discussed the possibility of raising the Telecommunications Tax.
Finance Director Lynch reported the revenue received from the Telecommunications Tax
continues to decrease. She attributes the decrease with the fact that more users are video
streaming programing and using wireless electronic devices. Alderman Schaefer believed the
revenues would be greater if the City were to increase the Sale Tax by a % of a percent. This
matter will be discussed at greater length in a future Committee meeting. A Motion was made
by Alderman Schaefer and seconded by Alderman Mihevc to recommend to the full City Council
that the Property Tax Lew remains flat. Roll call: Vote: 3-ayes: Alderman Mihevc, Alderman
Schaefer and Alderman Curry. 0-nays, 0-abstained. Motion carried.
Finance Director Lynch provided the Committee Members with an overview of the draft
FY2017/2018 audit. She reported that the total General Fund balance is $7,266,961, which
reflects a transfer to the Capital Improvements Fund of $0 due to the fact that the Fund Balance
and Reserve Policy requires the General Fund Balance to be $7,350,447. Which is $83,486 more
than the current fund balance.
Finance Director Lynch continued on to discuss the Proprietary Fund balance showing the annual
operating income and expenses for the Water and Sewer Fund. The Water and Sewer Fun has an
operating income of $1,101,529. Water/Sewer rates will still need to be reviewed and adjusted
as operating revenues have increased due to debt service fees incurred with the IEPA Loan.
Finance Director concluded her overview presentation noting that this year again includes
additional required information per GASB 68, Accounting and Financial Reporting for Pensions
and GASB 71, Pension Transition for Contributions made Subsequent to the Measurement Date.
Alderman Curry questioned why the General Fund Unassigned Fund Balance had a negative
balance. Finance Director Lynch reported that the negative fund balance reflects a deficit in the
overall General Fund Balance umbrella.
The Final FY-2017/2018 Audit will be presented to the full City Council during an upcoming
Council meeting.
Staff Reports
Finance Director Lynch reported Director Martin has completed his recommendation on a Sale
Tax Incentive Policy. This matter will be discussed at the next Finance and Personnel Committee
meeting.
Any Other Business
There was no other business to discuss.
Motion to adjourn from the meeting
There being no further public business to discuss, a Motion was made by Alderman Mihevc and
seconded by Alderman Schaefer to adjourn from the public meeting at 6.15 p.m. Roll call: Vote:
3-ayes: Alderman Mihevc, Alderman Schaefer and Alderman Curry. 0-nays, 0-abstained. Motion
carried.
Respectfully submitted,
Debra Meadows, Deputy City Clerk
Reviewed and approved this � day of 114211AMAW 2018.
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Alderman urry, Chair a