HomeMy WebLinkAboutMinutes - 1/20/1997 - Finance and Personnel Committee �
FINANCE COMMITTEE MINUTES
January 20, 1997
Members Present: Chairman Murgatroyd, Bill Baird, Frank McClatchey
Others Present: City Administrator Lobaito, City Clerk Althoff, Alderman Glab
arrived at 7:40 and Senior Account Clerk Christensen
Finance Chairman Alderman Murgatroyd opened the meeting at 7:08 P.M. stating
the purpose of this evening's meeting was to initiate discussion regarding the City
of McHenry's 1998-99 Budget. Projeted year-end fund balances as well as
revenue projections and expenditures will be reviewed as well as the City's current
financial status.
City Administrator Lobaito referencing the 1997-98 year-end projections summary
pages noted all the projected expenditures were based on figures submitted by
each of the departments and have not been modified or evaluated. As the budget
process continues these figures will be reviewed and modified accordingly. The
� projected year end General Fund balance with all the departmental proposed
expenditures is 52,958,800. And, although the Sewer Department projected
balance reflects a 5391 ,450 deficit the total Water/Sewer Fund reflects a positive
balance of 5520,255. City Administrator Lobaito also noted the Revolving Loan
Fund balance is now 578,452 which reflects not only the monthly payments of the
current revolving loan participant but the accrued interest as well.
Page B of the projected summary pages reflects tentative first figures for the 1998-
99 budget which, if approved, would reflect a deficit expenditure amount of
approximately 5400,000. In response to committee inquiry, City Administrator
Lobaito stated the General Fund line item balance of 52,354,000 does include the
initial 5350,000 payment for Petersen Farm. Chairman Murgatroyd stated the
committee must address, at some future time, from what funds the full purchase
price will be expensed.
The projected water/sewer revenues are very conservative and reflect the May 1 ,
1998 rate increase, however do not account for any projected growth and/or
development. Chairman Murgatroyd noted the approved water/sewer rate
increases over the next three years will, in many situations, pay for the
water/sewer capital projects expensed and initiated in the 1998-99 budget year.
City Administrator Lobaito referenced the Detailed Fund Sheets. He reported the
L.. General Fund revenues will equal or exceed budget figures. The retail sales dollars
Finance Meeting Minutes
�, January 20, 1998
Page Two
report for the east of the river properties has been requested from the Illinois
Department of Revenue and the City Clerk anticipates an arrival date of February
28th. City Administrator Lobaito also stated these sales tax dollars have been
collected by the City of McHenry since September of 1994 and were not
specifically allocated to future east of the river sanitary sewer extension bond
payments until this past budget year. Some discussion followed regarding
allocating more monies toward the bond repayment. City Administrator Lobaito
noted the recommendation.
GENERALFUND
GENERAL OFFICE (page 3)
City Administrator Lobaito noted only the Land Acquition line item is projected to
reflect an expense higher than the budgeted amount. He cited the recently
approved Petersen Farm purchase as the cause.
POLICE DEPARTMENT Ipage 4)
City Administrator Lobaito noted the 1997-98 total budget figure for this
department was S2,782,000 with the projected total reflecting a $2,646,000
� figure.
PUBLIC WORKS DEPARTMENT/ADMINISTRATION (paQe 5)
City Administrator Lobaito noted the salary line item projected figure was higher
than the 1997-98 budgeted amount. Senior Account Clerk Christensen stated the
public works administration salary expense includes City Engineer Marciniko's
overtime costs which are in most cases reimbursed through retained personnel
charges. Revenue line item entitled Engineering Inspection Fees reflects a 56,356
amount.
PUBLIC WORKS DEPARTMENT/STREETS DIVISION (page 6)
City Administrator Lobaito noted the 1997-98 budget reflected $782,000 in capital
outlay projects and the projected expenditure amount is only 5382,000. Many of
these budgeted projects will be carried over into the 1998-99 budget year as they
are currently in progress. City Administrator Lobaito also informed the committee
all property and personal damage claims will be centralized under the
Administrative General Fund Accounts.
BUILDING AND ZONING DEPARTMENT (page 8)
City Administrator Lobaito noted the year end projected salary for this department
was substantially less due to the loss of the Building and Zoning Department's
Director.
�
Finance Committee Minutes
� January 20, 1998
Page Three
MISCELLANEOUS FUNDS
BAND FUND
It was noted a minimum of two additional band concerts will be added this summer
which accounts for the increase in the contractual amount expense.
CIVIL DEFENSE
City Administrator Lobaito noted S 16,000 had been allocated for new sirens. Staff
members and City of McHenry ESDA Director, Bill Stevens, are drafting a proposal
for council consideration regarding emergency siren coverage, repair and purchase.
Better coverage is required for the recently annexed east of the river area as well
as the McHenry Shores subdivision and Martin Woods areas.
Alderman Glab arrived at 7:40 p.m.
INSURANCE FUND
City Administrator Lobaito noted this fund was the City's insurance liability fund,
where MCMRMA payments aare expensed. Property Insurance, Workmen's
Compensation, Auto Insurance, etc. is provided through the McHenry County
� Municipal Risk Management Agency pool.
EMPLOYEE INSURANCE FUND
City Administrator Lobaito reported transfers are made to this account from the
general fund to account for departmental employee positions. City Administrator
Lobaito also reminded council of the health insurance partnership distribution
benefit where the City will share with enrolled health plan participants the retained
balance from the current health plan year on a 50/50 basis. Some discussion
followed regarding the self-insured program costs. City Administrator Lobaito
noted the all the current health/dental expenses were still lower than the Blue
Cross/Blue Shield premiums quoted in 1993/94.
RETIREMENT FUND
In response to Alderman McClatchey's inquiry, City Administrator Lobaito informed
the committee he and City Clerk Althoff will be meeting with IMRF representative,
Jon Remmer on February 5th to discuss the feasibility of initiating an Early
Retirement Incentive Program. Full information will be presented the the committee
for review and final action.
ANNEXATION FUND
City Administrator Lobaito stated these funds might be used to finance the City's
recent purchase of the Petersen Farm.
�
MOTOR FUEL TAX FUND
City Administrator Lobaito noted the City of McHenry had received approximately
5600,000 in Motor Fuel Tax monies this fiscal year. Road projects and the City's
streets program are expensed from this fund.
Finance Committee Meeting
January 20, 1998
� Page Four
PARK DONATIONS FUND
City Administrator Lobaito noted the fund had a projected fund balance of
$1,100,000 with 5260,000 in revenues from the 1997-98 fiscal year.
WATER/SEWER FUND
City Administrator Lobaito noted the 1997-98 budget figure for capital projects in
this fund was 5180,000 with an 580,000 projected year-end expense. Next year's
1998-99 budget reflects $406,000 in capital projects. The projected sewer
revenues are in sinc with the 1997-98 figures as are the sewer expenditures. All
sewer projects are complete for the 1997-98 fiscal year.
BOND & INTEREST FUND
This fund reflects the City of McHenry's refinancing in 1993 of the 1986 and 1988
bonds as well as the 1993 General Obligation Bonds for the Municipal Building and
1997 Series A and Series B bonds for the sewer extension east of the river and the
expansion of the south wastewater treatment facility.
BOND RESERVE FUND
The maintenance of this fund is required as a condition in our bond agreements
A reserve amount, at the highest payment level of any year, is maintained.
�� These funds may not be used under any circumstances.
DEPRECIATION FUND
This fund is also a requirement of the bond agreements, however these monies
may be used under unexpected emergency situations.
CAPITAL DEVELOPMENT FUND
City Administrator Lobaito stated the projected year end expenditure amount is in
line with the 1997-98 budget figure. With regard to the expansion of the South
Wastewater Treatment Plant project, expenses will be deducted from the
S 1 ,600,000 bond fund monies and then drawn from the Capital Development
Fund.
McHENRY SHORES
City Administrator Lobaito noted the last installment for this special assessment
was due January 2, 1998. Very little income will be derived during the 1998-99
fiscal year. The Water/Sewer Fund will be forced to pay the remaining Project
Assessment debt payments and fees.
REVOLVING LOAN FUND
City Administrator Lobaito stated the revolving loan fund balance was healthy and
it was anticipated loan participant Eco-Tech would be repaying the balance of their
� loan before January 31, 1998. A second loan application had recently been
received from Joseph Rubino of D&J Automotive.
Finance Committee Meeting
January 20, 1998
� Page Five
DISCUSSION OF THE BUDGET CALENDAR
As Director of Public Works Batt would be unavailable the week of February 9th,
the Public Works Department Fund requests will be discussed on Tuesday,
February 3rd and Thursday, February 5th. The Parks and Recreation Department
Fund requests will be presented on Tuesday, February 10th and the Administrative,
Building and Zoning, and Police Departments requests will be presented on
Thursday February 12th.
Alderman Murgatroyod requested the Department Heads provided a three year
personnel projection for committee review.
In response to Alderman Baird's inquiry regarding employee requests, City
Administrator Lobaito informed the committee all requests were presented to
Department Heads who, in return, presented them to him for final action.
Susan Christensen was directed to present salary increase scenerios at 3%, 4%,
and 5% for the next finance committee meeting.
� Motion by McClatchey, seconded by Baird to adjourn at 8:35 p.m.
Voting Aye: Murgatroyd, Baird, McClatchey
Voting Nay: None
Absent: None
The meeting was adjourned at 8:35 p.m.
/� �
r J/�Ly�� � ����� ��_
Steven Murgatroyd Fin ce Chairman
L