HomeMy WebLinkAboutPacket - 07/13/2017 - Finance and Personnel Committee v �+-,
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Finance and Personnel Committee
McHenry Municipal Center
Council Chambers
333 S Green Street
McHenry,H, 60050
July 13, 2017, 5:30 PM
AGENDA
1. Call to Order
2. Public Comment: Any person wishing to address the Committee will be asked to
identify themselves for the record and will be asked but are not required to
provide their address. Public comment may be restricted to three-minutes for
each individual speaker. Order and decorum shall be maintained at public
meetings.
3. Motion to approve March 22, 2017 and April 5, 2017 Finance and Personnel
Committee Meeting Reports.
4. Motion to approve a Fiscal Year 2017/18 Finance and Personnel Committee
meeting schedule.
5. Discussion: Role of the Finance and Personnel Committee.
6. Discussion: How are topics identified for the Committee?
7. Discussion: Expectation of meeting packet details on topics.
8. Discussion: Potential FY 17/18 Committee topics.
9. Motion to adjourn the meeting.
The City of McHenry is dedicated to providing its citi,.ens,businesses,and visitors with the highest yttalit},of programs
and services in a customer-oriented,efficient,and fiscally responsible manner.
FINANCE & PERSONNEL COMMITTEE
MEETING REPORT
March 22, 2017, 5:30 PM
McHenry Municipal Center
In Attendance at Roll Call: Committee Members: Chairman Alderman Wimmer, Alderman Curry. Absent
Alderman Condon. Also in Attendance: City Administrator Morefield, Deputy City Administrator
Hobson, Finance Director Lynch, Human Resources Manager Campanella, Community Development
Director Polerecky, Water Division Superintendent Palmer, Street Division Superintendent Scott Schweda,
Superintendent Wastewater Division Ruzicka,; Recreation Center Manager LaPorte, I.T. Manager Larson,
and Superintendent of Parks/Downtown Maintenance Gorniak.
1. Call to Order: The meeting was called to order at 5:30 PM.
2. Public Input: None
3. Motion to approve the October 17 2016 Meeting Reports Alderman Curry made a motion, seconded
by Chairman Alderman Wimmer to approve the July 18, 2016 Finance and Personnel Committee
meeting reports as presented. All ayes,motion carried.
4. Discussion on Proposed FY 17/18 Annual Budget.
Chairman Wimmer asked City Administrator Morefield to begin the discussion. Following is a
summary of the items discussed at the meeting:
The focus of the presentation was on General Fund Revenues and Expenditures, General Fund Fund
Balance,Personnel Summery of Wages(All Funds),Proposed General Fund Expenditures—Operating
Budgets, Recreation Center Budget, Capital Improvement/Capital Equipment Projects for Discussion,
Water and Sewer Fund, and Personnel Requests.
Administrator Morefield reported the Draft FY 2017/18 budget is subject to further modification based
on input from the Committee and/or further needs identified as part of the ongoing review. Staff
identified some corrections/clarifications that were discussed during the review.
Amendments: Three amendments to the information previously distributed to the Committee were
reviewed:
• In the General Fund, Revenues, Expenditures and Fund Balance Summary, Column H
beginning fund balance of$10,431,287 should have carried forward from FY 16/17 to the FY
16/17 estimate.
• Personnel Summary—Wages Only (All Funds) Rows 11, 35, 41 have been adjusted to reflect
non-dispatch employees and then the aggregate of the two and variances have been adjusted
accordingly.
• Personnel Requests — A fulltime Parks Maintenance position funded through the General
Fund/Parks and Rec budget was added to the list of requested personnel.
Alderman Curry asked if reimbursements received for the Dispatch Center construction will appear in
the GF main line and the answer was yes.
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General Fund (GF) Revenue & Expenditures. The spreadsheet depicts five years of actual for
revenues and expenditure and also includes the FY16/17 budgeted amount and FY17/18 estimated
amount.
Revenues
FYl6/17 Total Revenue collected is 7.13% higher than the amount budgeted due to increases in the
amount of State and Local Sales Taxes collected and revenue generated by the dispatch center, which
is approximately $300,000 higher than estimated due to the larger than expected participation in the
dispatch center for FYI 6/17.
FYI 7/18. The increase in estimated Reimbursements for FY17/18 is again mostly due to the dispatch
center. City Administrator Morefield reported that these increases should not be expected in future
years—the increase is solely due to dispatch consolidation. The only way the revenues will increase is
if the city increases the dispatch center customer base and when we are able to adjust the rates.
Property Tax is estimated to be (3.27%) lower; State Sales Tax is estimated at 5.41% higher; Local
Sales Tax estimated 4.84% higher; and State Income Tax (0.98) lower than this fiscal year will results
in an increase of approximately $264,000. Alderman Curry asked if the state provides projected
numbers for sales taxes or do we estimate them ourselves. Finance Director Lynch answered income
tax estimates come from the state; staff estimates local sales tax. Alderman Curry asked why state
sales tax is up by I I%and our local sales tax is basically as low as it has been since 2011/12. Finance
Director Lynch answered car sales are not subject to local sales tax. Alderman Curry stated it is hard
to imagine our local sales tax collected is flat.
Another source for the increase in revenues is Video Gaming estimated to be 53.06% higher in
FY17/18.
Expenditures
GF Expenditures include all personnel, contractual, supplies, internal fund transfers, and capital
improvement and capital equipment costs related to the functions of the city with the exception of
water, sewer, utility personnel funded by water/sewer rates collected; recreation center personnel
funded through revenues and Information Technology Fund funded through inter-fund transfers from
each department.
Personnel - $279,447 (1.8%) than budget; Contractual - $80,967 (4.3%); and Supplies - $122,107
(11.8%)than budget.
"Other" (Row 32) includes sales tax reimbursements per agreements and is estimated at $115,317
higher than budget.
Capital Outlay is typically for capital purchases that do not qualify for inclusion in the CIP (under
$10,000), or are added during the budget year. As an example, in FY16/17, Council approved the sale
of a Police seized vehicle and purchased a new vehicle and equipment.
Transfers (Row 34) includes Capital Improvement/Capital Equipment project. As an example, the
Band Fund does not have its own revenue source so we transfer money out of the GF to the Band
Fund.
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Alderman Curry asked for clarification and a discussion ensued on the process of assigning capital
transfers in the budget and recording the actual amounts spent.
FY17/18 proposed expenditures is $363,808, or 1.6% higher than FY16/17 budget and this amount
includes $1,261,370 in capital for FYI 7/18.
Personnel expenditures represent a total of$16,583,537 or 72%of all FYI 7/18 proposed expenditures,
which is 9.6%higher than FYI 6/17 due to full staffing of the dispatch center, police pension funding,
and bargaining and non-bargaining unit wage and insurance costs.
Alderman Condon entered the meeting at 6:30 PM.
Alderman Curry asked if the difference is due to Dispatch and City Administrator Morefield answered
yes, due to wages and insurance. Alderman Curry said by his calculations and removing Dispatch
personnel, the city has increased personnel costs by 10% over the last two years. City Administrator
Morefield reminded the Committee that the bargaining unit agreements have to be factored into these
figures. Referring to the section of the presentation referring to the Personnel Summary&Wages for
Police, total estimated in FYI 6/17 is $743,000 and the proposed for FY17/18 is $1.3M. That is only
the wage costs—benefit costs and Police Pension funding are not included.
Alderman Condon asked if proposed personnel costs include new positions and City Administrator
answered no.
Contractual costs are proposed slightly higher by$21,564; supplies lower by$243,320 and, "Other"is
proposed higher by$233,400 due to expected increase in sales tax incentive costs.
Alderman Curry asked why the large increase in the amount budgeted for sales tax increased. Finance
Director Lynch stated the city has five additional incentive agreements.
City Administrator Morefield reported proposed expenditures overall for FY17/18 total$23,090,414.
General Fund Fund Balance
City Administrator Morefield reported reasons for fund balance growth include economic recovery,
conservative revenue estimates, introduction of new revenues such as video gaming, expenditures
under budget, and the Local Sales Tax adopted by the Council in 2010 to generate additional revenues
to fund the Police Pension and capital projects.
In FYI 6/17, the budget was developed with a beginning General Fund Fund Balance of$10,431,287
(pre-audit). Budgeted revenues over budgeted expenditures including capital required the use of
$2,349,593 from the GF Fund Balance leaving a budgeted amount of$8,081,694 in the fund.
Application of the Fund Balance and Reserve Policy resulted in the need for a reserve of$7,271,548
including transfers, leaving a balance of$810,146 assigned for capital.
The combination of higher starting GF Fund Balance, higher estimated revenues and lower
expenditures results in a year-end GF Fund Balance of $9,025,466 and an assigned for capital GF
Fund Balance amount of $1,753,918 to carry into FY17/18. Alderman Curry asked if this is the
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amount that will go into the following year for capital development and Morefield answered yes. City
Administrator Morefield reminded the Committee that this is an estimated amount only, not money in
the bank and will most likely change after closing out FYI 6/17; completion of the audit; any budget
amendments prior to the end of the fiscal year; and dispatch center cost adjustments (waiting for
seizure funds and 911 grant)and sales tax incentive payments.
Personnel Summary—Wages(All Funds)
Non-bargaining proposed increases for FYI 7/18 is $83,241 or an average of 2.75%. This is 2.38%
higher than the FY16/17 estimate. Bargaining Unit increases are determined by contract and include
steps each year. City Administrator Morefield reported that in the past non-bargaining employees pay
was based on steps, just like contract employees. Every job classification included a 10-step pay
matrix. Every year increases were given on a combination of step and cost of living, similar to
bargaining employees. When the recession hit, a part of the concessions that were made by the city
was to freeze and/or heavily modify the matrix for approximately six year. Because of the freeze to
the matrix, it was no longer effective. The city cannot pay those employees for the time the matrix
was frozen. However, two years ago the evaluation system for non-bargaining employees was revised
to create entry, mid, and high levels of pay with no steps, reevaluated jobs, and each year they receive
an evaluation and if eligible, an increase based on a combination of a merit and CIP-U increase. The
merit component is adjusted each year based on the budget.
Alderman Curry commented on the increase in personnel wages noting with the exception of
Bargaining Unit 2,the main reason for the increase in cost seems to be the effect of the steps.
General Fund Operating Departments
The GF Operating Departments include all personnel, contractual, supplies and other operating
expenses except for those of the Recreation Center, Information Technology, and Water, Sewer, and
Utility Divisions. Directors develop annual budget requests based on previous actuals, year-to-date
actuals, estimated expenditures through the end of the year, and anticipated expenses for proposed
budget year.
As previously identified, in general personnel costs include wage increases of 2.29% overall for non-
bargaining unit employees, 2.75% for police sergeants, 11.92% for IUOE 150, 2.21% for FOP Unit 1,
89.82%for FOP Unit 2 (dispatch center), and police pension.
Overall, contractual costs are up slightly($21,000). Supply costs are down primarily due to the drop
in fuel prices. Other costs, which include internal transfer for Risk Management and Information
Technology and sales tax incentive payments increased by$233,000.
McHenry Recreation Center
FY17/18 represents the first full budget year for the Recreation Center, which opened on February 29,
2016. The goal was to build a membership based to have an operationally balanced budget and pay
off the annual debt service on the construction loan. At the end of FY16/17, it is estimated that
McHenry Recreation Center will cover all operating costs, pay $132,356 in debt service, and end the
year with a$42,510 surplus.
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FYI 7/18 revenues were estimated conservatively at $99,200 or 19.75% higher and expenditures are
$18,653 or 4.8%higher than last fiscal year.
General Fund Capital Improvement/Capital Equipment Proiects
The 17/18 —21/22 CIP includes $89M in projects and $45M in local roadway that is funded from GF
revenue sources. In 2016, the Council adopted the Fund Balance and Reserve policy to establish a
120-day operational reserve with an understanding that revenues over this amount assigned to capital
for GF CIP projects.
Based on the FY16/17 budget, the year will end with an assigned for capital amount of$810,146.
Based on actual GF fund balance of$10,431,287
General Fund Operating Departments
City Administrator Morefield provided an overview of the GF Operating Departments that include all
personnel, contractual, supplies and other operating expenses with the exception of the Recreation
Center, Water, Sewer, and Utility Divisions, and Information Technology.
Generally, personnel costs include wage increases of 2.29% overall for non-bargaining unit
employees, 2.75% for police sergeants, 11.92% for IUOE 150, 2.21% for FOP Unit 1, 89.82% for
FOP Unit 2 and police pension. Other costs including internal transfers for Risk Management,
Information Technology and sales tax incentives. No new positions are include in any of the operating
budgets except for the dispatch center as previously identified.
Alderman Curry noted the city has a 100% increase in telephone charges. Deputy Administrator
Hobson said all telephone charges will soon be transferred to the IT Fund for all departments. Finance
Director Lynch added when the budget is completed, the telephone line item for each department will
be eliminated.
Alderman Curry asked why we are showing a 41% increase in salaries for Community Development
as of two years ago. City Administrator answered this is due to the addition of the Department
Director and Plans Examiner positions.
Alderman Curry asked why IT services increased vs. two years ago. Finance Director Lynch
answered the increase in employees, increases the number of computers and Microsoft software
licensing agreements. IT Manger Larson added we are purchasing more licenses to eliminate a three-
year contract at $20,000/year, which will be off the budget for next year.
Alderman Curry asked about why the large increase in Forestry supplies. City Administrator and
Superintendent Schweda answered funds remaining from a grant were spent on the tree program.
Alderman Curry asked why Parks and Recreation salaries in two-years show a 105% increase not
including the Recreation Center. HR Manager Campanella explained this occurred when we stopped
paying using 1099's and moved them into payroll. Deputy City Administrator Hobson said he will
identify the fund they were previously paid from and inform Alderman Curry.
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Alderman Curry asked why special events are up 69%. Deputy City Administrator answered we
added some special events, which also increased revenue.
McHenry Recreation Center
FY 17/18 represent the first full budget year for the McHenry Recreation Center. At the end of FY
16/17, we estimated the center would cover all operating costs, pay debt service of$132,326 and end
the year with a $42,510 surplus. FY17/18 revenues are estimated conservatively to increase by
19.75%or$99,200. Expenditures are estimated to increase by$18,653 or 4.8%.
General Fund Capital Improvement/Eguipment Proiects
The recently adopted GF CIP includes $89M over a 5-year project, which includes a full range of
projects; $45M of the CIP is devoted to streets. Our focus when developing the CIP projects is to
leverage dollars. The city was able to obtain STP funding for McCullom Lake improvements, with a
20% match. The same for the Bull Valley/Curran Road improvements project. Funding for the Pearl
Street/Lincoln Road project with a 20% match has been put off until FYI 8/19. Our 20% match for
the rebuilding and replacement of infrastructure from Route 31 to Chapel Hill Road is approximately
$700,000. There is also potential funding from DCEO for Public Works Facility lighting. City
Administrator noted the city has vehicles that need replacing, equipment replacement needs, needed
parks maintenance/improvements, and general maintenance on public facilities i.e. VAC replacement
for the Municipal Center. During the recession,the city also froze capital project for several years. As
a result, city vehicles and equipment were not replaced and all replacement programs ceased.
Based on the FY16/17 budget, the assigned amount for capital is $810,000. However looking at the
revenue estimates, staff feels relatively confident in increasing the CIP for next year. Although a
$1.75M is in the Assigned for Capital line item, City Administrator Morefield is asking the committee
to consider saving a portion of those funds for unexpected expenses and dedicate $1.385M for the
Capital Equipment/Capital Improvement program. Only $2.6M is from the GF; the remaining will
come from other funding sources, leaving an ending Assigned for Capital fund balance of
approximately$315,000; this amount will most likely increase because of receipt of grant funding and
differences next year between revenues and expenditures.
For Local Streets and Pavement Manager, Staff proposing using$115,000 in MFT and include it in the
Local Street budget with the purpose of budgeting as much as possible for local streets. As a point of
information, state regulations do not allow MFT funds to pay for Reclamite. In total, staff proposes a
$900,000 local street program and $115,000 for pavement maintenance (Reclamite) using GF dollars.
The crack sealing carryover is approximately $75,000, which may be used in 17/18 if necessary. .
Alderman Curry asked if crack sealing were necessary, the dollars used would rollover into the
$900,000 amount and staff answered yes.
Other Capital Improvement/Capital Equipment Fund projects reviewed by the Committee included
Ringwood Road Improvements, Curran Road S Curve, Green Street Bridge Rehabilitation, Tree
Replacement Program, Public Works Facility Lighting, and Municipal Center Parking Lot
Lights/Caulking. GF Capital Equipment includes Vehicle/Equipment Replacements, Municipal Code
Codification, Parks Community Needs Assessment, Gateway Signage, Petersen Farm Improvements,
Recreation Center Parking Lot, and the Pearl Street Bridge Rehab/Installation, which is dependent
upon coordination with Riverwalk Foundation for use of funds.
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The total General Fund Capital Improvement and Capital Equipment requests is $1,385,370. A total
of $1,261,370 will come from the General Fund Assigned for Capital and $124,000 from MFT
transfer.
Other projects discussed at the meeting identified for consideration from non-General Fund sources
included:
• Municipal Code Codification Services: $16,000, IT Fund.
• Parks Community Needs Assessment: $40,000, Developer Donation Fund. Previously
approved by Council however funding will be re-budgeted in FY 17/18, as there were no
expenditures for this project in FY 16/17. Alderman Condon stated the need for an organized
codification system for city codes will more than likely result in less man hours used searching
for codes and redundancies and contradictions, especially in the Community Development
Department. Alderman Curry asked if there were any annual maintenance costs associated
with the service and City Administrator Morefield said there usually is an annual maintenance
fee and staff would get back to the committee with a definite answer.
• City Gateway Signage: $25,000, Developer Escrow Fund. Will be paid for by the developer of
Ricky Rockets on east Route 120.
• Petersen Farm Improvements: $75,000,Developer Donation Fund.
• ADA Park Improvements: $20,000 Developer Donation Fund.
• Sport Court Renovations at Shamrock Park: 47,500,Developer Donation Fund.
• Recreation Center Parking Lot Improvements: $400,000, Recreation Center Fund. This is
recommended from the Rec Center Fund however, the project would be bid as part of the
Local street Program to reduce cost. Alderman Curry noted looking back on the rec center
worksheet, we are showing an estimated fund balance for this year $529,000. Finance
Director Lynch stated the correct amount at the end of 2016 was $960,000. Staff will correct
the worksheet.
• Pearl Street Bridge Rehabilitation and Installation. $500,000. Funded with $330,000
Riverwalk Foundation reimbursement from Riverwalk Phase 2; $50,000 DCEO grant, $50,000
Blake Family donation; and $75,000 carryover from FY 16/17 CIP budget. Alderman Curry
commented that $330,000 is supposed to come back to us, which we had taken out of the GF
balance in the past. He said he assumes at the time the promise was that we will spend this
money and that would come back to the GF. To him, it is really GF dollars, not free money
that was not spent on other benefits to the taxpayer. He added as he recalls, about $400,000 of
this expenditure is the bridge. In last year's strategic session, we discussed the Riverwalk and
the direction was to go north to Weber Park, which in his opinion should be the focus. He
does not agree that the city should consider going the other way with a $500,000 project and
deserves a lot more discussion. Deputy City Administrator Hobson said that working with the
Riverwalk Foundation, everyone knew this would be an item for much discussion. He added
that while the $330,000 was paid from the GF, the city should decide if we are going to
reimburse the TIF with the money we receive from the Foundation. The money that was spent
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was spent on TIF capital improvements. Right now, we are showing a deficit of$750,000 for
the TIF. Director Lynch said the revenue is in the TIF.
Water/Sewer Fund Expenditures and Capital
The Water/Sewer Fund is an Enterprise Fund and includes all operating and capital costs related to
water, sewer, and utility divisions.
Water Division: Operating expenditures proposed at $2,709,970 representing a decrease of$266,736
from FY 16/17 due to overfunding of the Utility Division transfer.
Wastewater Division: Operating expenditures are projected at $3,232,996, a decrease of$68,944 from
the FY 16/17 due to overfunding of the Utility Division transfer.
Utility Division: FY 17/18 Utility Division operating expenditures are projected at $1,057,504, a
decrease of$127,132 from FY 16/17 due to overfunding of the Utility Division transfer.
A discussion ensued on the rates charged for water and sewer use. The committee expressed their
desire to maintain rates at necessary levels and to not decrease rates one year and find it necessary to
increase rates the following year.
Personnel—New Position Requests
City Administrator announced that more than 50% of the city's workforce will be eligible to retire in
the next five to six years and job skills and requirements are changing. The FY 17/18 budget will
include a summary of the Staffing Needs Assessment recently completed by Department Directors.
The plan is similar to the five-year CIP and is a snapshot of staffing needs including skills
requirements for existing and new employees, succession planning, position evaluation and revision
upon vacancy and the identification of new or expanded part-time and full-time employees that may be
needed to fulfill the service needs of the community for the next five-years.
The Staffing Needs Assessment identified the following positions:
• Marketing/Communication Specialist, $50,000/year+benefits, Tourism Fund.
• Recreation Center Supervisor, $50,000/year + benefits, Rec Center Fund/Budget. Deputy
Administrator Hobson stated another title for this position could be Membership Services
Supervisor.
• Parks Maintenance Worker, GF Parks&Recreation Budget.
• Part-time FOIA/Evidence Technician, $21,000/year+benefits, GF Police Budget.
• Part-time Human Resources Assistant, $16,000/year+benefits,GF Admin Budget.
• Part-time Mechanic($15,000, GF Public Works Streets Budget.
• Part-time Seasonal (Spring-Fall) Code Enforcement Officer, $8,000 GF Community
Development Budget.
• Public Works Intern, $8,500, GF Public Works Admin Budget.
City Administrator Morefield stated funding for these positions is not included in the proposed budget.
Alderman Condon stated there is a benefit for all these positions and in her opinion,the city has a need
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to hire a Marketing/Communication Specialist. The city does as good of a job as they can in relaying
information to the public however, our staff is not trained in disseminating information to the public
properly. As a result, we may have had disinformation out to the public and rumor start. It would be
beneficial to have information go out to the public from one centralized location. Aid. Condon added
a large section of the population gets their information from social media and the city is not
captivating that audience in ways that they want to hear the message. She believes a full,part time, or
contract employee is essential to include in this year's budget. City Administrator Morefield noted
staff could research other communities and put together an RFP to contract these services if that is the
route Council chooses to take to get a handle on the cost to add this position. Alderman Curry stated
we need to specifically define the position and begin with contracting the services as opposed to
committing to salary and benefits. The Committee agreed to add the need to contract for these
services in the proposed budget.
5. Adiournment:
City Administrator Morefield noted updated budget documents would be provided to the Committee
prior to the next meeting scheduled on April 5, 2017 at 5:30 PM.
Alderman Curry stated the budget documents presented this evening are much easier to read than in
past years and added he would prefer to look at actual numbers rather than prior budget.
Motion by Alderman Condon, seconded by Alderman Curry to adjourn the meeting at 8:05 PM. All
ayes,motion carried.
Reviewed and approved this day of 2017.
Alderman Scott Curry, Chairman
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FINANCE & PERSONNEL COMMITTEE
MEETING REPORT
April 5, 2017, 5:30 PM
McHenry Municipal Center
In attendance at Roll Call: Committee Members: Chairman Alderman Wimmer, and Alderman
Condon. Absent: Alderman Curry. Also in Attendance: City Administrator Morefield, Deputy
City Administrator Hobson, and Finance Director Lynch.
1. Call to Order: The meeting was called to order at 5:37 PM.
2. Public Input: None
3. Complete Review and Motion to forward proposed Fiscal Year 17/18 Fund budgets,
includingall ll supplemental information to the full City Council at the April 24, 2017 Annual
Council meeting for consideration and adoption.
Chairman Alderman Wimmer asked City Administrator Morefield to begin the discussion.
City Administrator Morefield announced he is seeking a motion to forward the FY 17/18
budget numbers as discussed on March 22nd and April 5 b to the Council as part of the full FY
17/18 budget document.
As a result of input provided by the Finance and Personnel Committee on March 22nd
amendments, new, and revised information was presented to the Committee:
General Fund (GF) Summary of Revenues, Expenditures and Fund Balance. This page
in the budget was modified to reflect the composition of the GF Fund Balance at the
beginning of each fiscal year by identifying the Assigned for Capital and Operating Reserve
amounts.
Parks and Recreation Fund Summary. This sheet was amended to reflect accurate
revenues and expenditures for FY 13/14, FY 14/15, and FY 15/16.
Recreation Center Fund Summary. Regarding the parking lot expansion, the sheet reflects
accurate fund balance amounts.
Water/Sewer Fund Summary. A fund sheet line item was added for "Total Operating
Revenues" and "Total Operating Expenditures" to reflect the rate changes as proposed and
offer sufficient revenues to cover operating costs.
City Administrator Morefield noted a question was raised regarding fees charged to residents
who pay a flat rate for sewer. Answering Alderman Condon's question, Director Lynch
stated approximately 200 residents are billed a flat rate for sewer. Director Lynch said HR
Green performed an analysis and determined the flat rate fee was sufficient and it was not
changed. Now that we are initiating a significant increase in rates, we need to reevaluate this
fee. Alderman Condon noted it would be fair to the user to perform this analysis annually.
City Administrator Morefield agreed that the flat rate fee charged should be based on
operating costs.
Capital Improvement/Capital Equipment Projects. Some projects that have not been
completed that were budgeted in previous years are VAC controls, Seawall, and Generator
project. Funds are reserved to pay for these projects.
Riverwalk: the city does not control all the funds for the Riverwalk. These funds are
obtained through private donations and the Riverwalk Foundation controls most of the funds.
Discussions to determine which projects to fund will need to occur. The foundation received
$200,000 from the family that contributed to the original bridge and may now wish to restart
their efforts towards the north end of the Riverwalk. Staff feels our best opportunity to
rehabilitate and install the Pearl Street Bridge will be when the Savings Bank property
redevelops.
Personnel Requests. The Committee concurred that no additional personnel positions
would be added to the FY 17/18 budget.
The remaining fund sheets, comprised mostly of Internal Service Funds, were provided to the
Committee. City Administrator Morefield asked for questions or comments from the
Committee regarding these funds. Director Lynch noted the budgets for these funds are
fairly standard from year to year.
Alderman Condon restated her view that the city should contract out for Marketing
Communications/Social Media services and her desire to contract these services in FY 17/18.
Director Lynch noted if approved, these services would be funded by the Tourism Fund.
As there were no further questions or comments, Alderman Condon made a motion seconded
by Chairman Alderman Wimmer to forward the FY 17/18 budget numbers as discussed on
March 22"a and April 5 h to the Council as part of the full Fiscal Year 2017/18 budget
document. All ayes, motion carried.
4. Adjournment:
Alderman Condon made a motion, seconded by Chairman Alderman Wimmer to adjourn the
meeting at 6:05 PM. All ayes, motion carried.
Reviewed and approved this day of 2017.
Alderman Scott Curry, Chairman