HomeMy WebLinkAboutMinutes - 4/27/1998 - Finance and Personnel Committee �
FINANCE COMMITTEE MINUTES
April 27, 1998
Members Present: Chairman Alderman Murgatroyd, Alderman McClatchey
Absent: Alderman Baird
Others Present: Mayor Cuda, City Administrator Lobaito, City Clerk Althoff,
Alderman Glab, and Senior Account Clerk Christensen
Alderman Murgatroyd opened the meeting at 7:00 P.M. stating the purpose of this
evening`s meeting was to finalize the 1998-99 budget figures.
City Administrator Lobaito requested an Executive Session to discuss Personnel be
added to this evenings meeting agenda. The committee concurred.
Chairman Murgatroyd summarized the revenue and expense changes noting the
following:
Revenue Increases
Sales Tax revenue increased from 2% to 6% adding 5150,000
� Building Permits by 10,000
Traffic Fines by 15.000
Total Revenue Increase 175,000
Expense Decreases
Legal Fees/Negotiations ($10,000)
Landmark Commission ( 3,000)
Personnel Salaries (hires in Sept)
Administration ( 16,667)
Recreation Supervisor ( 10,000)
Insurance (new carrier) ( 63,516)
Sidewalk Program ( 30,000)
Building Improvements
blind replacement ( 6,000)
Administration remodeling ( 3,000)
Total Expense Reduction ($160,683)
Chairman Alderman Murgatroyd noted a total net change of revenues and expenses
of $523,683 with a projected deficit of 5627,724. After incorporating the new
revenue and expenditure figures the projected deficit is S 104,041 . Chairman
Murgatroyd stated if the "carryover projects" (those projects budgeted in 1997-98
and not completed) were segregated from the 1998-99 budget the 1998-99 budget
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Finance Committee Minutes
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April 27, 1998
would reflect a surplus. Carryover projects include:
Green Street Revitalization of 5146,500
Shamrock Traffic Signal 250,000
Landmark Facade Grant Program 18,500
Total 5415,000
The following projects should be then included in the cost expenditures of the
1998-99 budget:
Wetlands Management $5,000
Department Head evaluation pool 4%
Parks/Cellular Phones 400
Parks/Salary Correction 3,775
Parks/Mowing Contract Addition 29,000
In response to Chairman Alderman Murgatroyd's inquiry, City Administrator Lobaito
�. stated the only apparent obligations of the City of McHenry regarding wetlands
management for the 1998-99 budget year would be a burn for the County's Green
Street property, the South Wastewater Treatment Plant property and South
Riverfront property costing approximately 55,000. Although specific price quotes
for this work have been sought, none have been submitted as of this afternoon.
Additional discussion followed regarding the percentage increase in sales tax
revenue. City Administrator Lobaito noted historically the increase has been
approximately 5% to 6%. City Administrator also noted additional efforts are
currently under way with the County Board to increase traffic fine cotlections.
� Legal fees for contract negotiations has been reduced according to staff
recommendation. The committee suggested the appropriation ordinance reflect a
slightly higher number. The salary figures were reduced to reflect an eight month
expenditure as opposed to a full year as hires will not be initiated immediately. The
insurance figures were also decreased to reflect year-end claim figures and
premium adjustments. The sidewalk program expense was decreased as monies
are available for sidewalk development within the streets program.
A lengthy discussion followed regarding sidewalk development and construction.
Mayor Cuda noted sidewalk completion in some areas of town should be
considered a definate need. City Administrator suggested full council consider
amending the subdivision control ordinance permitting, in specified cases, cash
`— contributions for sidewalks to be used at the city's discretion as opposed to
Finance Committee Minutes
`.. Page Three
April 27, 1998
installation requirments for each developed property. He cited several properties
having sidewalks with no development on either side to connect to, including
Fleming Company and Super 8 Motel.
Further discussion followed regarding the need to initiate special assessment areas
for stormwater correction, sidewalk installation, and street curb and gutter.
Chairman Alderman Murgatroyd requested committee consideration and approval of
the creation of a restricted 1997-98 carryover fund for those projects budgeted in
the 1997-98 fiscal year, yet not fully expensed during this time frame. The 1998-
1999 fund balance must be reduced by this amount as well. Chairman Alderman
Murgatroyd stated this funding would permit a more accurate reflection of 1998-
1999 budgeted expenditures.
City Administrator Lobaito stated this accounting change should be cleared with
the City of McHenry's auditing firm. City Clerk Althoff noted although not
reflected within the 1998-1999 budget all projects and purchases expensed during
the 1998-1999 fiscal year must be reflected in the appropriation ordinance.
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Chairman Alderman Murgatroyd also requested a committee recommendation for
the creation of a sub-account within the Park Department's Developer ponation
Fund for the construction of a Recreation Center. He suggested an initial balance
of $750,000 as the Developer ponation Fund's current balance was S 1 ,200,000.
A policy should also be developed with regard to future developer donation funds.
A specified percentage of these monies should be allocated directly to the
Recreation Center subaccount. The Committee concurred with these
recommendations.
After some further discussion the Meyer Material annexation revenue was
increased to 575,000.
In response to Alderman McClatchey's inquiry, City Administrator Lobaito noted
after review, it was the finance committee's recommendation to eliminate the ERI
program because of the initial expense. An approximate cost of $500,000 was
calculated.
Motion by McClatchey, seconded by Murgatroyd to go into Executive Session at
7:28 p.m. to discuss PERSONNEL.
Voting Aye: McClatchey, Murgatroyd
Voting Nay: None
`- Absent: Baird
Motion carried.
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Page Four
� April 27, 1998
Motion by McClatchey, seconded by Murgatroyd to go back into Open Session at
8:02 p.m.
Voting Aye: McClatchey, Murgatroyd
Voting Nay: None
Absent: Baird
Motion carried
It was the recommendation of committee to permit an aggregate pool, not to
exceed 4%, of all Department Head salaries to be utilized as merit raises, as
recommended by City Administrator, for each of the Department Head raises and
to approve the 1998-1999 budget as presented.
Motion by McClatchey, seconded by Murgatroyd to adjourn the meeting at
8:06 p.m.
Voting Aye: McClatchey, Murgatroyd
Voting Nay: None
Absent: Baird
� The meeting was adjourned at 8:06 p.m.
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Steven Murgatroyd, Finance Chairman
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