HomeMy WebLinkAboutMinutes - 12/2/2001 - Finance and Personnel Committee FINANCE AND PERSONNEL COMIVIITTEE MEETING
Tuesday,December 4, 2001 �
Alderman's Conference Room, 7:00 p.m.
� In Attendance: Committee Members: Alderman Bolger, Alderman Low, Alderman Murgatroyd.
Also in Attendance: Mayor Althoff, City Administrator Lobaito, Assistant Administrator Maxeiner,
City Treasurer Welter, Senior Accountant Christy Lanphier and City Clerk Jones.
Chairman Alderman Murgatroyd called the meeting to order at 7:00 p.m.
Municipal DepositoryBanking Services
Chairman Alderman Murgatroyd advised the existing banking services agreement with Amcore Bank
expires December 31, 2001. In 1998 Council deterniined banking services should be revisited following
each Mayoral election. Pursuant to this policy, City Treasurer Welter and Staff received authorization
from Council to conduct a competitive process for the selection of the depository bank for the City.
Requests for information and proposals were forwarded to fourteen banks operating within the Cit}% of
McHenry. Eight responses were received.
City Treasurer Welter advised of the eight responses, Assistant City Administrator Maxeiner, Senior
Accountant Lanphier and he concur the proposals received from American Community Bank, First
National Bank, McHenry Savings Bank and Amcore Bank are clearly more favorable than the others,
based upon services offered and fees charged. Representatives from the four institutions were invited to
meet with Treasurer Welter and Staffto more fully elaborate upon their proposals.
City Treasurer Welter advised, discounting the existing relationship with Amcore Bank, any of the four
finalists could provide the services desired at an attractive price. Considering the City already has a
�. working relationship with Amcore and the existing payroll direct deposit system is working smoothly,
Treasurer Welter stated he and Staff recommend continuing the relationship with Amcore Bank for an
additional four years.
In response to Assistant City Administrator Maxeiner's inquiry City Administrator Lobaito advised
while the City Treasurer has statutory authority to choose the financial institution used by the City for
the investment of funds, the process of forwarding the matter to Council relieves the Treasurer of
liability. Upon action by Council the decision becomes the responsibility of the City.
City Administrator Lobaito opined reviewing the banking services agreement every four years is a good
process for the City and avoids the vender's becoming complacent. Alderman Low concurred with City
Administrator Lobaito.
Assistant City Administrator M�einer noted the banking services agreement is not a formal contract
and if ever the City is dissatisfied, service can be ternunated with 30-days notice. Discussion ensued
regarding employees bonded by the City of McHenry, the possibility of investing in other banks, on-line
banking services and which individuals are authorized to make daily deposits.
Motion by Bolger, seconded by Low, to recommend to Council the City of McHenry continue the
existing banking relationship with Amcore Bank. All ayes. Motion carried.
Motion by Low, seconded by Bolger, directing Staff to investigate other lending institutions for
�y,` investment purposes. All Ayes. Motion carried.
Finance and Personnel Committee Meeting
December 4, 2001 _ _
Page Two �
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Fiscal Year 2002/2003 Budget Process
Chairman Alderman Murgatroyd requested direction from the Committee as to how they would like to
proceed with the budget review process for the coming year's budget. In the past the entire Committee
would go through the budget by department, making cuts prior to presentation to the full Council .
Chaitman Alderman Murgatroyd advised, in the past two years, he has met with City Administrator
Lobaito, the Mayor and Assistant City Administrator Maxeiner to review the budget request document
in an effort to identify potential cuts and adjustments to balance the budget. Following this review a
preliminary budget is presented to the entire Committee to discuss the budget and the proposed cuts and
adjustments. With the development of the Capital Improvement Plan process and the prioritization of
projects prior to budget deliberations, this process saves a considerable amount of time on the part of �
Staff and the Committee.
Alderman Bolger stated he is comfortable with this process as long as the Finance and Personnel
Committee is kept advised. Alderman Low concurred with Alderman Bolger.
City Clerk/Collector Position
Assistant City Administrator Maxeiner advised Council at various times over the past several yeazs, the
issue of modifying the position of the City Clerk/Collector has been discussed. As recently as a year
ago, conversation has centered on replacing the Collector position with a comptroller/finance director.
Action was delayed due to the proximity of the upcoming election. Staff was directed to bring the
� matter back to Committee within a reasonable period of time following the election in April, 2001.
Assistant City Administrator Maxeiner noted the discussion of modifying the position is not meant to
reflect negatively on either the position incumbent or prior offcials in this position and cites the
following logic for_such revisions to the position:
1. An organization with $20+ million in annual revenues should be managed by a trained
financial professional.
2. Elected officials should not be placed in a position of having to collect revenues from the
electorate.
3. The Mayor, City Council and City Administrator should have authority over the position in
charge of revenue collection to address performance issues.
City Administrator Lobaito stated this matter was first addressed in 1995 and has come up periodically
ever since, as recently as 200 days prior to the last election. City Administrator Lobaito adwised when
the subject last arose there was insuf�cient time to review the information and arrive at a decision. He
opined with the increasing intricacy of the work environment and changing regulations, the position
continues to become more complex.
Alderman Bolger opined nothing could be done regazding the position for the next three and one-half
years and stated he feels it is premature to discuss the matter at this date. Alderman Murgatroyd opined
the time for discussion is now when there is no interference with the political process. Alderman
� . Murgatroyd noted while the Clerk position is an elected position the Collector position is actually an
appointed position and requires an individual with financial acumen as the City continues to gow.
Finance and Personnel Committee Meeting -.
December 4, 2001
Page Three
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Responding to Treasurer Welter's inquiry, Assistant City Administrator Maxeiner stated the duties of
the Collector typically fall under the direction of the Finance Director.
Mayor Althoff recommended the position of City Clerk remain a full time position regardless of any
action that may be taken. Mayor Althoff iterated there is a lot of responsibility associated with the
position of City Clerk requiring full time attention. Mayor Althoff opined taking action on the issue
now avoids the matter becoming an election issue and allows everyone time to evaluate and make a
deternunation on how to best implement the program. Lengthy discussion ensued.
It was the consensus of the Committee to direct Staff to establish an organizational chart, for
administration. In addition, Staff was directed to define the duties of the City Clerk if the Collector
duties were transferred to a non-elected position in administration.
Ezecutive Session: Personnel
Motion by Low, seconded by Bolger to adjourn to Executive Session to discuss Personnel at 7:53 p.m.
Voting Aye: Bolger, Low, Murgatroyd
Voting Nay: None.
Absent: None.
Motion carried.
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The Finance and Personnel Committee went into Executive Session at 7:53 p.m.
Committee returned to Open Session at 8:20 p.m.
Motion by Bolger, seconded by Low, to recommend to Council the reimbursement to Payroll Clerk
Kristine Paprocki, for two terms of tuition expenses in the amount of $5,220 per term, with the
understanding should Kristine Paprocki resign her employment with the City of McHenry, repayment to
the City of the tuition expenses would be prorated over a 36-month period.
Voting Aye: Bolger, Low �
Voting Nay: Murgatroyd.
Absent: None.
Motion carried.
Motion by Low, seconded by Bolger, to adjourn the meeting at 8:23 p.m.
All Ayes. Motion carried.
Respectfully submitted,
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Steven C. Murgatroyd, hairman
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