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HomeMy WebLinkAboutMinutes - 03/25/2019 - Finance and Personnel CommitteeSPECIAL FINANCE AND PERSONNEL COMMITTEE Monday, March 25, 2019 Municipal Center Council Chambers, 5:30 PM Call to Order: Alderman Curry called the meeting 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: Administrator Morefield and Finance Director Lynch. Alderman Curry recognized the fact that Alderman Santi was also in attendance. Public Comment: Alderman Curry asked if anyone in attendance wished to comment on any matter listed on the agenda. Alderman Santi provided the Committee Members with a brief comment regarding the proposed FY-19/20 Budget. He noted that he was not in favor of utilizing the new sale tax and telecommunication tax revenues to fund additional personnel cost. In his opinion the new revenues streams should be used to fund Capital Improvement projects and vehicle purchases. Motion to approve the March 11, 2019 Finance and Personnel Committee meeting report Alderman Curry asked the Committee Members if they had any comments with respect to the March 11, 2019 Finance and Personnel Committee meeting report. The Committee Members offered no comments. A Motion was made by Alderman Mihevc and seconded by Alderman Schaefer to approve the March 11 2019 Finance and Personnel Committee meeting report as presented. Roll call: Vote: 3-ayes: Alderman Mihevc, Alderman Schaefer and Alderman Curry, 0- nays, 0-abstained. Motion carried. Discussion/Recommendation-Fiscal Year 2019/2020 Budget Administrator Morefield provided the Committee Members with an overview of the revised FY- 19/20 Budget. He reported that the Committee along with Staff had recently reviewed the proposed budget on March 12 and as a result of the input provided at that meeting Staff has since amended the proposed budget and made adjustments to the General Fund Miscellaneous Revenues along with adjustments to the Fund Summary pages for the Administration, Community Development, and Street Departments. Based on these changes, the proposed revenues has decreased by $135,000 and expenses have decreased by $154,374. Administrator Morefield continued onto report that the amendment to the Administration Fund Summary reflects capital item expenditures that will be paid in full or in part through the General Fund. In addition, the Community Development, Public Works and the Enterprise Fund Summaries reflect amendments to include uniform expenses which were inadvertently omitted. Alderman Schaefer asked if the amended FY-19/20 Budget reflects the elimination of vehicle stickers. Administrator Morefield replied yes, the General Fund has been amended to reflect the decrease in anticipated revenue which were once generated from the sale of vehicle sticker in the amount of $145,000.00 along with the expenses associated with the sale of vehicle stickers in the amount of $21,484.00, Administrator Morefield went on to report that the draft budget also included the expenditure to fund the Boone Creek dredging project. However, the budget is balance and still provides funding of operational expenses for 90 days. Although the fund policy does require 180 day of operational cost on hand. The City will have to draft a plan to replenish the General Fund. However, the plan will not have to be implemented at this time. Alderman Curry distributed a handout outlining his concerns with respect to the proposed budget. He noted that Staff is proposing to increase personnel and contract service cost in the estimated amount of $1,068.517 which exceeds the newly projected revenues gains from the in the local sale tax and the telecommunication tax. In addition, this action would leave no additional funding for Capital Improvements. In his opinion the proposed budget and staffing levels is unstainable. The departmental overtime percentage does not justify an increase in staffing levels. A lengthy and lively debate ensued. Alderman Curry made a motion that directs the Committee to reject this budget and also directs Staff to provide a budget document which eliminates any new previously proposed positions and present the new document to the Committee at the April 1, 2019 Finance and Personnel Committee meeting. Alderman Mihevc stated that he would second the motion if the language was amended to state that the Committee directs Staff to draft an alternative budget which eliminates the creation of any new Staffing positions. Alderman Curry concurred with Alderman Mihevc's amended motion. A Motion was made by Alderman Curry and seconded by Alderman Mihevc to direct Staff to draft an alternative budget which eliminates the creation of any new Staffing positions. Roll call: Vote: 3-ayes: Alderman Curry, Alderman Mihevc and Alderman Schaefer. Motion carried. Staff Reports Staff offered no reports at this time. Motion to adjourn the meeting A Motion was made by Alderman Schaefer and seconded by Alderman Mihevc to adiourn from the public meeting at 6:45 p.m. Roll call: Vote: 3-ayes: Alderman Schaefer, Alderman Mihevc and Alderman Schaefer. 0-nays, 0-abstained. Motion carried. Respectfully submitted, Debra Meadows, Deputy City Clerk Reviewed and approved this L_day of 1KIZ. 2019. Alderman Curry, Chair a