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Home My WebLink AboutMinutes - 2/5/1998 - Finance and Personnel Committee � FINANCE COMMITTEE MEETING February 5, 1998 Members Present: Chairman Murgatroyd, Alderman Bill Baird Others Present: City Administrator Lobaito, City Clerk Althoff, Director of Public Works Batt and Senior Account Clerk Christensen Finance Chairman Alderman Murgatroyd opened the meeting at 7:30 p.m. stating the purpose of this evening's meeting was to continue to review the various department requests and recommendations for the 1998-99 budget year. Chairman Murgatroyd distributed updated year end projections for the General Fund and the Water/Sewer Fund. He noted approximately S1,037,000 were available or 1998-99 capital expenditures and staff had recommended S 1,150,000 in capital project expenditures for the 1998- 99 fiscal year. The committee needs to eliminate approximately S 125,000 in capital projects. City Administrator Lobaito noted the 5225,000 Lakeland Park Drainage project was included in the approximate S 1,150,000 figure. City Administrator Lobaito noted approximately 5900,000 had been expended for capital projects in the 1997-98 fiscal year. The water/sewer fund reflects a deficit amount of ($15,820) for capital projects while staff has recommended approximately 51,700,000 in capital projects. Chairman Murgatroyd opined this fund will need to be reviewed very carefully. `-- BUILDING & GROUNDS DIVISION Director Batt noted the overtime expenditure had been increased to reflect, more accurately, the projected 1997-98 figure. The 52,300 expenditure in account #503, Professional Development is the cost for building maintenance personnel to attend the maintenance seminar for the City of McHenry's HVAC system. City Administrator Lobaito noted the 55,600 mowing expenditure in account #510 Contractural Services has been reallocated to the Parks Department account #510. City Administrator Lobaito also noted all Building Improvements had been allocated to account #526 Building Improvements. Director Batt noted in the Building Improvements account the interior painting expenditure may be expensed in the 1997-98 fiscal year. City Administrator Lobaito noted the 55000 figure allocated for remodeling the Administration office was a very preliminary number. Director Batt noted the replacement of window blinds throughout the Municipal Building would most likely, be done in phases over the next two years. City Administrator Lobaito also noted the public works garage remodeling had been added to this account increasing the final account total to 578,200. The landscaping expenditure formerly included in account #527 Materials and Supplies has been reallocated to the Parks budget. The parking lot overlay project included in account #700 Capital Projects was discussed. Director Batt stated it was staff's recommendation to proceed with this project in the 1998-99 fiscal year. Alderman Baird suggested fabric be added to portions of the contracted work, particularly in the area of the sink hole as well as for the perimeter drive. Staff felt this addition would increase the cost by approximately 10%. WATER DIVISION Director Batt noted the overtime figure might be high, however it was difficult to determine based on the unpredictability of water main breaks. He noted union employees were entitled, by contract, � to a minimum of two hours overtime pay. Some discussion followed with regard to summer help. Director Batt stated the hiring of summer help would be reviewed with Water Superintendent Gough Finance Committee Meeting Minutes � February 5, 1998 Page Two with a final recommendation presented to the committee prior to the committee's final budget review. Director Batt also noted in account #510 Contractual Services the repairs to Wells #5 nd #6 had been eliminated. The committee concurred after some discussion and directed staff to reduce, by S 15,000, the utilities expenditure in account #529 Utilities. City Administrator Lobaito noted former accounts #555, Water Meter Purchases and #556 Fire Hydrant Purchases have been consolidated into account #527 Materials and Supplies. As in the Streets Division account #625, Property Damage has also been consolidated under the Administrative Department. A new account for Small Tools and Equipment purchases was also established to maintain consistancy within the Public Works Department. Discussion followed with regard to account #700, Capital Projects. Director Batt noted S 150,000 had been budgeted for the designing of a new Water Plant. He stated a new site would be considered particularly if Well #1 was abandoned. Staff noted if the current site could not be used the cost of the plant design might be increased. The City's Bull Valley property has been considered as a possible alternative site. Some discussion followed regarding the McHenry Shores water system owned by T.P. Mathews. City Administrator Lobaito also noted the addition of 585,000 for the Green Street and Beach Road water main designs. He stated it was staff's recommendation to begin addressing the Master Plan suggested improvements. Normally these projects are funded with developer monies, however these two areas were fully developed years ago and must be funded by city monies. �. WASTEWATER DIVISION Director Batt noted the addition of two employees within the 1998-99 budget year citing the expansion of the South Wastewater Treatment Plant as well as the addition of 4 lift stations. The additional personnel will also permit more effective cross-training. Account #505 Office Supplies was increased to reflect more accurately the current 1997-98 expense amount. In response to Alderman Baird's inquiry regarding Account #527 Materials and Supplies, Director Batt stated the chemical expenditure amount did not need to be increased even with the south wastewater treatment plant as the newer equipment will process the sludge more efficiently. Director Batt also noted no new vehicles had been budgeted for this fiscal year and account #537, Repair and Maintenance has been increased to reflect the repair of older vehicles. Director Batt also drew the committee's attention to account #556, Sludge Disposal noting the 524,000 increase. Some discussion followed regarding privatization of this service. Director Batt referencing account #700, Capital Outlay, noted some of the Anne Street Lift Station expenditure will be carried over into the 1998-99 fiscal year. City Administrator Lobaito also noted 5600,000 had been budgeted for 50% of the anticipated Central Wastewater Treatment land expansion. The 5600,000 balance has been expensed in the Capital Development Fund. Some discussion followed regarding the status of the City of McHenry's Central Wastewater Treatment Plant permit. Staff noted the current Central Wastewater Treatment permit expires in 2001. Permit renewal specifications include nitrification requirements. Director Batt informed the committee additional space will be required at the Central Plant to facilitate nitrification equipment. Some discussion followed. �... Finance Committee Meeting � February 5 1998 Page Three CAPITAL DEVELOPMENT FUND City Administrator Lobaito informed the committee capital development funds earmarked for the expansion of the South Wastewater Treatment Plant will be reserved until all bond monies for the project are expended. Some discussion followed regarding account #700, Capital Outlay which reflects 5600,000 for 50% of the anticipated land acquisition cost for the expansion of the Central Wastewater Treatment Plant. The committee noted the possibility of an FPA amendment and questioned the advisability of proceeding with expansion plans prior to an analysis of any potential change in the sanitary sewer planning area. City Administrator Lobaito noted the City's engineering firm of Baxter and Woodman is drafting a proposal for council review to amend the City of McHenry's FPA. The proposal permits Baxter and Woodman to review the City's growth patterns, present planning options and make recommendations regarding FPA amendments. The committee recommended elimination of the 5600,000 expenditure from the 1998-99 budget year in an effort to balance this fund. Motion by Baird, seconded by Murgatroyd to adjourn the meeting at 9:50 p.m. Voting Aye: Baird, Murgatroyd Voting Nay: None Absent: McClatchey The meeting was adjourned at 9:50 p.m. � � � �. �-- �' �ti'�t,.:, ��c. ,,.r��,* Steven Murgatroyd, Fir� nce C airman �