Loading...
HomeMy WebLinkAboutMinutes - 08/23/2021 - Finance and Personnel CommitteeFinance & Personnel Meeting Minutes August 23, 2021 Page 1 Finance & Personnel Committee Meeting August 23, 2021 Call to Order: Alderwoman Miller called the meeting to order at 3:03 p.m. The meeting was held remotely via Zoom due to the COVID-19 pandemic. The meeting was held in accordance with the Illinois Open Meetings Act. Roll Call: Deputy Clerk Johnson called the roll. Roll call: Members present: Alderwoman Miller, Alderman Strach, Alderman McClatchey. Public Comments: There were no members of the public present to make a comment. Approval of Minutes: A motion was made by Alderman McClatchey and seconded by Alderman Strach to approve the minutes of the August 19, 2019, Finance and Personnel Committee meeting. The motion was made with the acknowledgement that Aldermen McClatchey and Strach were not present at that meeting. Roll Call: Vote: 3-ayes: Alderman McClatchey, Alderman Strach, Alderwoman Miller. 0-nays, 0-abstained. Motion carried. Review and discussion of the First Quarter FY-21-22 Budget Report Director Lynch stated that we ended the year well financially despite the issues with COVID. We have almost $10 million in fund balance with a 120-day reserve. We must keep the reserve at 90 days or we would have to come up with a plan to get back to that threshold. We have almost $2 million that can be transferred from the general fund to the capital improvement fund. Properties that might be purchased would come from this amount, as well as any parking lot improvements. Alderwoman Miller explained that page 10 out of 10 shows the different funds and what the balances are of each of those. Director Lynch explained what each of those funds consist of and what we can and can’t do with each fund. There was a discussion about the SSA 6 and its negative balance. It was explained that the City spent money on engineering for a sewer expansion to the Hunterville Park subdivision, but they elected not to move forward. It was debated why those residents would not want to hook on, and the costs for each resident may have been estimated close to $20,000. It was discussed if those costs could be lower now that there is other sewer on the east side of the river, and if the City should check with them to see if they may want to move froward now. Director Lynch stated that it would be wise to close out that negative balance if that SSA will not be used. Director Lynch explained that the City’s revenues are done on an accrual basis accounting. Therefore, the sales tax numbers shown in May/June/July are actually from Feb/March/April. At Finance & Personnel Meeting Minutes August 23, 2021 Page 2 the end of the fiscal year, we must make an adjustment, but those figures are plugged in there for now so that we have numbers we can use for reference. Director Lynch stated that the income tax figures appear to be a lot higher than expected. Those could come down when COVID relief and unemployment starts to run out. Telecommunication taxes continue to go down, but video gaming remains strong. In the general fund the Parks & Rec took a hit due to COVID, but the swimming pool has doubled their budgeted amount, and programming is at 61% of the budget. Overall, the general fund revenues are at 36% while we are 25% through the fiscal year. Alderman Strach suggested that it may be helpful to have the video gaming numbers pulled out separately so that we can help justify the way we vote for gaming at Council meetings. The tourism fund is at 37% of budget, although it took a hit last year. That is an important fund because the Green Street parking lot payment is paid from that fund. The alarm board receives payments from businesses to hook up to our system at $270 each per quarter. MFT is based on the population of each municipality and figured throughout the State. We have only collected two months of the local motor fuel tax this year. Director Lynch began discussion about the IEPA fee on the water/sewer bills that is collected each month. We have gathered a balance in that fund that could be lowered and then rolled into a capital fee to help pay for other upgrades that have been recently discussed. It would not make a lot of sense to pay that loan off early as the loan only has a 1% interest rate. Director Lynch will look into how much money customers might be able to save and see if that same monthly amount can be used for the existing debt and for upcoming projects. The audit is finalized in October, and that could cause a few of the existing numbers to shift around. But there usually is nothing that would make much of a difference in the overall picture. She also explained that the recovery funds that we will be getting from the federal government can be used for the utility relocation that must take place for the Route 31 expansion. This is good news because that is one less big project that we will need to find money for. Alderman Strach asked if it will be possible to keep the tax levy flat for very much longer or if we will need to have a discussion about that in the near future. Director Lynch stated that it will not be possible to keep that levy flat for very much longer and to keep our operations where they have been. We try to use the local sales tax for roads and for capital projects, and with the contracts we have with our current employees, it will not be possible to keep the levy flat. This discussion will definitely have to take place and be considered. Alderwoman Miller explained that people like to see what our tax money is doing, and they don’t see things happen with sewer lining. But they do see road improvements, sidewalks, and streetscaping happen. Nobody complained when the new pavilion was done in Veterans Park. She believes we can show residents that their money is being spent wisely and that will help sell the need for increased taxes. Finance & Personnel Meeting Minutes August 23, 2021 Page 3 Adjournment: A motion was made by Alderman McClatchey and seconded by Alderman Strach to adjourn the meeting at 4:10 p.m. Roll call: Vote: 3-ayes: Alderman McClatchey, Alderman Strach, Alderwoman Miller. 0-nays, 0-abstained. Motion carried. Deputy Clerk Monte Johnson _________________________________