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HomeMy WebLinkAboutMinutes - 3/13/1997 - Finance and Personnel Committee (2) � FINANCE COMMITTEE MINUTES March 13, 1997 Members Present: Chairman Lawson, Terry Locke, Bill Baird Others Present: Mayor Cuda, City Clerk Althoff, Senior Accountant Susan Christensen, Alderman Bolger, Director of Building and Zoning Lobaito, Director of Public Works Batt, Director of Parks and Recreation Merkel, Chief of Police Joyce, Budget Consultant Curt Carver. Alderman Baird arrived at 7:36 P.M. Chairman Alderman Lawson called the meeting to order at 7:12 P.M. He informed the committee that budget consultant, Curt Carver, had completed compiling the department head budget requests as well as the fund balances. Mr. Carver noted for budget purposes he had increased all salaries by 3%. Mr. Carver recommended the consolidation of the following funds within the `.- General Fund allowing for easier and better clarity; Police Protection, Vehicle Licenses, Road and Bridge. Mr. Carver stated City Auditor, John Eder of Eder, Ridel & Co., had been consulted and would offer no objection to this consolidation. Mr. Carver also recommended the consolidation of the Parks and Recreation Fund within the General Fund. He noted if the fund was to be an "Enterprise" Fund program rates needed to be reviewed and increased accordingly. Mr. Carver stated the 1997-98 budget was a 526,000,000 document with projected expenditures of S 1 1 ,300,000 in the General Fund, S 13,200,000 in the Water/Sewer Fund and a S 1 ,300,000 total in the remaining funds. He noted three adjustments in his 1997-98 presented figures: 1] a reduction from 5150,000 for the sidewalks program to 575,000 in response to Director Batt's request for a larger streets program 2] elimination of the 550,000 for the Route 31 Gary Lang left turn lane 3] elimination of the McHenry Shores Water Company purchase. Mr. Carver stated the City was not in a financial postion to purchase the Water Company based on the current committed capital expenditures, 1997-98 projects and the projected fund balances. He questioned the continuing obligation of the City to the turn lane. � Finance Committee Minutes �., March 13, 1997 Page Two Mr. Carver also noted most municipalities like to maintain fund balances equal to 25% of their annual expenses. If the City of McHenry were to complete all the budgeted projects, at the end of the 1997-98 fiscal year the general fund and water/sewer fund balances would be equal to 10% or less of annual expenses. Mr. Carver also noted the water and sewer fees should be reviewed. He provided the committee with rate comparisons of other local municipalities. Typographical errors were adjusted on the worksheets distributed to the committee. Alderman Baird arrived at 7:36 P.M. Mr. Carver noted the General Fund revenue contained separate line items amounts for the Police Protection Property Tax, Road and Bridge Monies and Vehicle Licenses allowing for clear and consistent account tracking. In conclusion Mr. Carver noted no monies were expensed for the possible Green �... Street, Phase III project. The City of McHenry's cost portion will be expended from Motor Fuel Tax monies. Department Heads were instructed to provide the committee with a brief synopsis of their capital expenditure items. CITY CLERK/ADMINISTRATION City Clerk Althoff noted the scanner cost of 54000 could be eliminated as this purchase will be reflected in the 1996-97 budget. Additional expenditures which the City has committed funds for include: -Computer support and software -Copier purchase. Ms. Althoff's top priority request for the 1997-98 fiscal year would be the fixed asset program. POLICE DEPARTMENT Chief of Police Joyce noted the following capital expenditures which the City has committed 1997-98 funds to: -two patrol vehicles He also noted the 2 PC's and 1 Printer can be reduced to 1 PC and 1 Printer �.- for a total cost of 52500. Finance Committee Meeting `.. March 13, 1997 Page Three PUBLIC WORKS DEPARTMENT Street Division- Director of Public Works Batt noted the following capital expenditures which the City has committed 1997-98 funds to: -Lakeland Park Drainage -Lakeland Park Engineering -Replacement doors for 105 Green Street. -Main Street Parking Lot -Green Street Phase III engineering Batt also noted the air curtain incinerator for S 125,000 can be eliminated as alternatives to burning via the City's scavenger contract are being explored. Building and Grounds- Director of Public Works Batt noted the following capital expenditures which the city has committed 1997-98 funds to: -Parking Lot Video System. `.- BUILDING AND ZONING DEPARTMENT Director of Building and Zoning Lobaito noted the following capital expenditures which the City has committed 1997-98 funds to: -2 PC's for the City Planner and Code Enforcement Officer -City Entrance Sings (2). PARKS AND RECREATION DEPARTMENT Director of Parks and Recreation Merkel noted the following capital expenditures which the City has committed 1997-98 funds to: -Water main extension at the Learning Garden Site [It was the committee's recommendation to remove this expenditure from the capital expenditure category although allow the expenditure elsewhere. -Lakeland Lot Resurfacing -Petersen Lot Resurfacing -Reroofing of the three park shelters. Further discussion followed. Director Merkel noted council previously had allowed large park infrastructure projects to be expensed through the General Fund. He inquired as to council's direction with regard to the Brookside Park Infrastructure project. It was noted the committee would recommend the Brookside Park water and sewer extension be expensed through the Developer ponation Fund. Further `— discussion occurred regarding the proposed water/sewer extension for Brookside Park. Director Merkel informed council that the City would be in a better position for grant monies if a commitment toward infrastructure improvements is demonstrated. Finance Committee Minutes March 13, 1997 � Page Four WATER AND SEWER DEPARTMENTS Water- Director of Public Works Batt noted the following capital expenditures which the City has committed 1997-98 funds to: -'96 truck purchase Some discussion followed regarding the need for an elevated tank. Director Batt noted he would not begin construction this fiscal year, however a site might be purchased. Three possible sites were discussed -behind the Amoco gas station on Bull Valley and Crystal Lake Rd -the Inland Business Park lot -behind K-mart on Route 31 and McCullom Lake Road. Sewer- Director of Public Works Batt noted the following capital expenditures which the City has committed 1997-98 funds to: -Anne Street Engineering -Donovan Street Lift Station Engineering -Donovan Street Lift Station. Director of Public Works Batt also noted the Park Department's shelter roof repairs � and the Water Division's garage roof repair should not be capital expenditures. In reality they are just large maintenance items. CIVIL DEFENSE Some discussion followed regarding the feasibility of relocating existing sirens and purchasing a larger new siren allowing for maximum City coverage. MOTOR FUEL TAX Director of Public Works Batt noted the Crystal Lake/Dartmoor Signal project must also be approved by IDOT as Motor Fuel tax monies will be used. ANNEXATION FUND Director of Public Works Batt noted the following expenditure which the City has committed 1997-98 funds to: -Industrial Drive straightening. PARK DONATION FUND `.. Director of Parks and Recreation Merkel noted the following expenditures which the City has committed 1997-98 funds to: -Brookside Park Improvements -McCullom Lake Restoration. Finance Committee Minutes March 13, 1997 � Page Five Some discussion occurred regarding the Lakeland Park Drainage Project. Director of Public Works Batt informed council Baxter and Woodman's drainage survey results will be distributed in Friday's, March 21, 1997, agenda packet. He also noted the current city contract with Gluth Brothers for drainage work at Eastern and Clearview could be amended to include additional work at Parkway and Central for an approximated cost of $160,000. Severe flooding has been experienced by several home owners in this area, specifically the Ghilarducci family at 4316 Parkway. The 1997-98 budget requests reflect S 125,000 for the continuation of the Lakeland Park Drainage project and if council wishes to consider correcting the Parkway and Central Avenue problem an additional 530,000 should be budgeted. A lengthy discussion followed. Director Batt noted the phasing of this project was not in an order of severity, but more in a geographical nature. Further discussion occurred regarding the Anne Street flooding problems. Director Batt explained the nature of the problem and how the problem could be corrected. He noted detention on the north Pacini property would be the best permanent solution. �. Alderman Bolger left the meeting at 8:45 P.M. Director of Building and Zoning Lobaito noted the Tonyan Industrial Park located on Route 31 was negotiating with a potential user for 15 acres of property located directly on Route 31 in the Industrial Park. If development occurs on this site it may provide the City of McHenry with an opportunity to improve the lane configuration on Route 31 . City Clerk Althoff was directed to provide the committee with a comparison of benefits provided contracted employees and not provide to the noncontracted employees. Budget consultant Curt Carver informed the committee that revenue sources for the water/sewer fund, ie: rates, capital development and tap on fees, should be reviewed and increased in the very near future. Mr. Carver will supply a formula to determine actual construction costs and the capital development fee required to offset the cost. Some discussion occurred regarding the possibility of purchasing the McHenry Shores Water Company and utilizing their wells as the replacement site for Well #2. � Director of Public Works Batt noted the existing McHenry Shores elevated tank is the wrong height for City water service. Connection is available at two locations. Finance Committee Minutes March 13, 1997 � Page Six The next Finance Committee Meeting will be scheduled for some time the first full week in April. Motion by Locke, seconded by Baird, to adjourn the meeting at 9:10 P.M. Voting Aye: Baird, Lawson, Locke Voting Nay: None Absent: None Motion carr�ed. The meeting was adjourned at 9:25 P.M. Respectfully submitted, `.. David Lawson, Finance Chairman �.