Loading...
HomeMy WebLinkAboutMinutes - 1/24/2001 - Finance and Personnel Committee FINANCE AND PERSONNEL COMMITTEE � MINUTES January 24, 2001 Committee Members Present: Cha.irperson Alderman Murgatroyd, Alderman Baird Alderman McClatchy arrived at 7:16 p.m. Others In Attendance: City Clerk Althoff, City Admirustrator Lobaito, Assistant Administrator Maxeiner, Alderman Glab Chairperson Alderman Murgatroyd opened the meeting at 6:40 p.m. He stated the purpose of this Finance and Personnel Committee meeting was to review the Capital Improvements Program Policies and Project Selection Guidelines. Assistant Administrator Maxeiner reminded the committee _ , Council at the November 15+� Workshop Meeting suggested the Capital Improvements Project selection policies be redefined as guidelines. The project selection criteria have been so titled. He also explained the Capital Improvements Project financial policies identify the information required in the CIP and identify specific funding mechanisms. The use of bonds in funding capital projects, including limitations, is also included. `-- Noting Alderman Baird, at the November 15� meeting suggested the proposed Capital Improvements Projects be identified by year and funding source, Assistant Administrator Maxeiner distributed copies of the projects identified in such a manner. Assistant Administrator M�einer also explained the development and adoption of a CIP could be an excellent public relations tool informing the general public of pending city projects and use of funds. The committee reviewed the proposed project selection guidelines (attached to minutes) as follows: 1. established the minimum criteria of a CIP project 2. permits long-range budgeting. Assistant Administrator Maxeiner noted the adoption of the CIP as presented does not in any way commit or appropriate city monies. The plan can be amended and revised in accordance with council action. 3. establishes a financial safeguard so future councils can not issue more debt than the city can responsibly manage. Committee Chairperson Murgatroyd noted the proposed guidelines in this case are more stringent that those of the State of Illinois. In response to committee inquiry, Assistant Administrator Maxeiner noted the city is currently at a $2.5 million debt level. Alderman Glab arrived at 6:50 p.m. � Finance and Personnel Minutes � January 24, 2001 Page'I�vo 4. broadens flexibility of bonding policy to consider both the current policy of short-term debt and longer-term debt maturity, equivalent to the useful life of the project. Some discussion followed. Committee member Alderman Baird expressed some concern regarding the potential to accumulate more and higher debt over years if all bond maturity schedules were expanded over the useful life of the project. Assistant Administrator Maxeiner noted in many instances longer debt maturity schedules permit new growth to share in the cost of the expensed benefit. It was the consensus of the committee to develop language permitting longer-term bonding debt, but to establish the preference for short-term debt. , . 5. establishes criteria for favored priority 6. establishes criteria for favored priority 7. provides criteria to determine need, advisability, and creation of Special Service or Assessment area. City Administrator Lobaito noted this specific guideline could be used as a marketing tool for the general public as well. �.. 8 - 10. establishes criteria for favored priority. Motion by Ba.ird, seconded by Murgatroyd to recommend to full council the adoption of both the Capital Improvement Project Selection Guidelines and Financial Policies as present subject to the language revision as specified for Project Selection Giaideline #4 establishing greater bonding debt maturity consideration. Voting Aye: Baird, Murgatroyd Voting Nay: None Absent: McClatchey Motion carried. Assistant Administrator Maxeiner informed the committee he would attach the amended project selection guidelines and financial policies to the proposed Capital Improvement Plan for formal council action at one of the regularly scheduled council meetings in February. Committee member Alderman Ba.ird requested the adoption of the guidelines and policies be placed on a light agenda to facilitate in-depth consideration of the Capital Improvement Projects included in the proposed Plan. Some discussion followed. Assistant Adnunistrator Maxeiner explained future capital projects � Finance and Personnel Committee Minutes � January 24, 2001 Page Three should be discussed and considered six-months prior to the next fiscal year budget, and not during current budget discussions. In response to Chairperson Alderman Murgatroyd's inquiry engineering for the selected capital projects will be e�ensed and included in the prior year budget. Some discussion followed. Assistant Administrator Maxeiner noted both the improvement expense and purchase of McHenry Shores Water Company have been included in the Capital Improvement Plan. As per committee direction Assistant Maxeiner will present the Capital Improvements Plan Project Selection Guidelines and Financial Policies as a separate agenda item. The Capital Improvement Plan will be considered as a corresponding subsequent agenda item at the same regularly scheduled council meeting. BUDGET PROCESS-Chairperson Alderman Murgatroyd addressed the committee requesting input for the 2001-2002 budget process. Committee member Alderman Baird suggested the process initiated for the 2000-2001 budget be repeated. He did request the committee be provided each department's budget requests and recommendations after review by the Committee Chairperson, Mayor, Administrator and Assistant Administrator. � It was also the consensus of the committee to receive a raw copy of the budget as opposed to a balanced draft. Comrnittee member Alderman McClatchey arrived at 7:15 p.m. Chairperson Alderman Murgatroyd directed staff to submit no requests for grade reclassification. In response to committee inquiry, Assistant Administrator Maxeiner reported the supervisor salary review was being conducted by staff. . . Motion by McClatchey, seconded by Baird to adjourn the meeting at 7:20 p.m. Voting Aye: Baird, McClatchey, Murgatroyd Voting Nay: None Absent: None Motion carried. The meeting was adjourned at 7:20 p.m. � .,. `,�� G Chairperson Steven Mur atro �