HomeMy WebLinkAboutMinutes - 4/12/2000 - Finance and Personnel Committee FINANCE AND PERSONNEL CONIlVIITTEE
� MINUTES
April 12, 2000
Comrrzittee Members Present: Chairperson Alderman Murgatroyd,
Alderman Baird, Alderman McClatchy arrived at 7:00 p.m.
Others In Attendance: City Clerk Althoff, City Administrator Lobaito,
Assistant Administrator Maxeiner, Alderman Glab, Director of Community
Development Napolitano, Chief of Police Kostecki, Director of Public Works
Batt, and Public Works Assistant Director Marcinko.
Finance and Personnel Chairperson Alderman Murgatroyd opened the
meetin.g at 6:45 p.m. He stated the purpose of this meetin�was to begin
2000-2001 budget discussions. Assistant Administrator Maxeiner
presented the proposed 2000-01 budget noting the new format. Both the
General and Water/Sewer �.tnds have overall achedules delineating cost
expenditure differences between the 1999-2000 budget, actual 1999-2000
e�enditures and the proposed 2000-2001 budget figures. In additi.on a
personnel schedule has been provided for each department.
Chairperson Alderman Murgatroyd suggested Assistant Administrator
Maxeiner review the proposed 2000-01 budget figures for each of the
Miscellaneaus Funds.
� Assistant Maxeiner informed the committee the 2000 tax levy figures had
been received from the County Clerk's Office and have been incorporated
into the proposed budget.
BAND FUND
Assistant Maxeiner noted the bud�et as presented, reflectin.g actual levy
amounts inciudes a$1,450 deficit, howe�ver a$24,133 fund reserve e�sts
offsetting the deficit.
CIVIL DEFEN8E FUND
The Civil Defense �znd reflects a$30,000 capital expenditure for a siren
and tower. Assistant Administrator Maxeiner explained each year council
approves a levy amount of approximately$4500, which is accumulated until
enough funds are available for siren and tower purchase. Director Batt
informed the committee current tower sites might require relocation in an
effort to provide better coverage for the city's expanding corporate boundary.
AUDIT FUND
The Audit �nd reflects a levy amount of$14,400 and police pension
revenues of$2000. Expenditures total only $14,750 Ieaving a potential
excess of$1,650. The $2000 police pension revenues reflect a reimbursable
expense.
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Finance and Personnel Committee Minutes
� April 12, 2000
Page�vo
INBURANCE FUND
The Insurance F�nd addresses premium expenses for the city's risk
management pool [MCMRMA] insurance coverage. The pool was created in
1988 with the express purpose of providing liability, workers compensation
and property loss protection for participating members. The current levy
amount is $292,860 with an anticipated renewal expense of$302,350. This
fund has a projected reserve amount of approximately$185,900. Assistant
Administrator Maxeiner noted actual renewal figures would be provided pool
participants sometime this month prior to final budget approval.
In response to Public Works Director Batt's inquuy Assistant Administrator
Maxeiner noted cash reserve numbers reflected the specif ed funds projected
balance at year-end, Apri130�.
RETIREMENT FUND
Assistant Administrator Maxeiner noted the Retirement F�nd addressed
Federal FICA and Medicare expenditures in addition to the city's portion of
the Illinois Municipal Retirement program plan participation. The tax levy
amount for thi.s fund is$632,327 with anticipated expenditures of
approximately$758,705. Assistant Administrator Maxeiner noted the city's
IMRF paxticipation percentage decreased from 8.94% to 8.26% for the 2000-
� O1 fiscal year. In addition both the revenues and expenditures for this fund
are directly attributable to current salary levels and must be adjusted for
any potential increases and/or decreases in personnel and salary levels.
PUBLIC BENEFIT
Every year the city levies monies for Public Benefit associated with the
McHenry Shores Sewer Assessment Project. These monies are transferred to
the Project Assessment �ind for loan repayment.
RECREATION FUND
Assistant Administrator Maxeiner noted these figures were based on
previous council discussion and determination regarding the institution of a
telecommunications tax. Council is scheduled to discuss this issue further
at the April 19, 2000 regularly scheduled meeting. Fund revision may be
subsequently required.
ANNEXATIOI� FUND
Assistant Administrator Maxeiner explained these monies were discretionary
and could be used for a variety of proposed capital projects including the
expansion of Public Works Department facilities, specifically land
acquisition. The projected Apri130+� fund balance is $440,000.
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Finance and Personnel Committee Minutes
� April 12, 2000
Pa�e Three
DEVEIAPER E8CROW
These monies are earmarked for spec�ed fizture projects as delineated in
existing annexation agreements.
Alderman McClatchey arrived at 7:00 p.m.
EA�PLOYEE FLEX-8PENDIN(� FU1�D
Assistant Administer Maxeiner noted trus fund was newiy created for the
2000-01 budget format to better monitor employee participation in the
cafeteria 125 insurance benefit program. Employees contribute, via payroll
deduction, in a tax-free insurance program. The fund must reflect a zero
balance at the end of each fiscal year.
E11�PLOYEE INSURANCE FUND
This fund addresses the city's self-insured meclical, dental and prescription
drug insurance program expenditures. Both the administrative (fixed) and
claun costs are expensed through this fund. Individual employee single and
family coverage costs are determined and expensed against each
department. The 2000-01 individual premium figures reflected in the
proposed budget are less than those expensed in 1999-2000. Assistant
Administrator Maxeiner noted the renewal figures reflect the positive claim
� experience of the City's insurance program over the past two years. As with
the Retirement F�znd, the revenues and expenditures for this fund are
directly attributable to the number of participating employees. Therefore
adjustments may be required dependent upon final approval of proposed
personnel issues.
MOTOR FUEL TAX
Assistant Administrator M�einer noted Motor F4�e1 Tax revenues are based
on the city's per capita prorata share. For the Municipal Fiscal Year 2000
the municipal share of the motor fuel tax was estimated to increase 2.1% .
A separate fund would be created for the Street Improvements Project once a
bond program has been approved and bonds issued. The bond program
would be established requiring only interest payments until the beginning of
the 2001-02 fiscal year.
In response to Chairperson Alderman Murgatroyd's inquiry, Assistant
Administrator Maxeiner noted the Apri130� project reserve figure wa.s, in all
likelihood, overestimated. F�.irther review of the fund would be undertaken.
BTREET IMPROVE�tENT FUND
This is the fund that would be esta.blished once the Street Improvements
Project Bond Issue was approved and created. The fund will permit better
bond proceed monitoring.
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Finance and Personnel Comm:ittee Minutes
� April Z 2, 2000
Page Four
DEBT SERVICE FUND
This fund is used to monitor the bond and interest payments for both the
1990 General Obligation Bonds and the 1997 Series A General Obligation
Bonds.
SPECIAL SERVICE AREA FU1�D
This is a new fund established for the 2000-01 fiscal year as well. The fund
will reflect all property tax proceeds, interest and the general fund public
benefit transfer as well as the bond payment expenditures for the Shamrock
and Route 31 traffic lane improvements and traffic sig�al installation
project.
POLICE PENBION FU1�D
Assistant Administrator Maxeiner noted the fund is at 90% of full-funded
sta.tus. The current actuarial study has not yet been submitted for City
Council review.
DEVELOPER DONATIONS FIIND
Assistant Administrator Maxeiner noted this is actually a holding account
for developer donation monies collected on behalf of the other taxing bodies
including both local school districts, the library and the fire protection
� district.
REVOLVINQ LOAN FUND
This fund currently has only one active participant, D 8v J Automotive
Service. The specified monthly payments are received on a timely basis. The
anticipated fund balance as of Apri130+� is $92,000.
In response to Alderman Baird's request, Assistant Administrator Maxeiner
provided additional information regarding the employee insurance program
renewal costs and rates.
Chairperson Alderinan Murgatroyd informed the cornmittee the
Water/Sewer and Park Developer ponation F�,inds would be reviewed at the
next Finance and Personnel Committee Meeting scheduled for tomorrow
evening, April 13� at 7:00 p.m. Proposed capital projects and personnel will
be discussed in addition to individual line items.
Some discussion followed. City Administrator Lobaito noted the most
significant 2000-01 budget change was the cost of additional personnel. He
suggested the committee review and study the fund schedules.
Chairperson Alderman Murgatroyd also informed the committee
this evening's a�enda item addressin�Chief of Police Kostecki's
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Finance and Personnel Committee Minutes
� April 12, 2000
Page Five
request for Universal Hiring Program grant submission needed further
clarification. The grant as presented requests funding for an additional
three patrol officers. If successful these grant monies must be used for new,
unbudgeted patrol officers. Chairperson Alderman Murgatroyd noted if the
the budget is approved as presented, including Chief Kostecki's request for
three �.dditional patrolmen, and the city was successful in obtaining the
UHP grant a total of six new officers would be hired and expensed in the
2000-01 fiscal year. Some discussion followed. No formal action was taken.
Motion by McClatchey, seconded by Baird to adjourn at 7:20 p.m.
Voting Aye: Baird, McClatchey, Murgatroyd
Voting Nay: None
Absent: None
Motion carrie+d.
The meeting was adjourned at 7:20 p.m.
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Steven Murgatroy Fin ce Chairperson
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