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Home My WebLink AboutMinutes - 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. � 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. � 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. � 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 � 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. � � � Steven Murgatroy Fin ce Chairperson � �