HomeMy WebLinkAboutMinutes - 3/4/1996 - Finance and Personnel Committee FINANCE COMMITTEE MINUTES
� March 4 , 1996
Members Present : Chairman Lawson, Bill Baird Greg Bates
arrived at 7 : 25 PM
Others Present : Mayor Cuda, City Clerk Althoff, Senior Clerk
Susan Christenson, Alderman Locke, City Auditor John Eder
Alderman Lawson called the meeting to order at 7 : 06 P.M. Lawson
stated that the purpose of the meeting is to continue the review
of various department requests and recommendations for the 1996-
97 budget year and to review those funds with projected deficit
balances and determine the appropriate remedies .
John Eder of Eder, Riedel & Co. , the City' s auditing firm was in
attendance . Chairman Lawson explained Mr. Eder was in attendance
to review the deficit funds and make some recommendations on how
to remedy the deficit .
Police Pension Fund
Chairman Lawson noted he, Mr. Eder, and Paul Adamczyk from the
police actuarial firm, the Wyatt Company, had met with the Police
Pension Board members to review the actuarial study and review
the Police Pension Fund' s financial health. Mr. Eder noted the
actuarial study was being conducted every two years as opposed to
� every year. This every other year approach causes some
inconsistencies, particularly with the assumptions . An
alternative solution would be to use the State of Illinois
figures every year. After a lengthy discussion it was the
committee' s consensus to budget for an actuarial study every year
and if feasible to increase next year' s levy to erase the deficit
balance . The committee also directed staff to require the
actuarial study be conducted and completed in coordination with
the year end audit .
Retirement Fund
Mr. Eder noted the IMRF retirement fund was also projecting a
deficit balance at the fiscal year end and explained the
simpliest remedy would be to levy a higher amount next year if
the fund had not reached it' s capped level . If the fund is
capped, Mr. Eder suggested shifting funds from the general fund
and replacement tax area. He also recommended staff investigate
the water/sewer department' s contribution and determine if this
is the correct amount .
Alderman Bates arrived at 7 : 25 PM
It was the committee' s consensus to levy higher for this fund
next year, however funds from the general fund should be
transfered to correct the deficit balance this fiscal year.
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Finance Committee Meeting
March 4 , 1996
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Employee Insurance Fund
Mr. Eder noted this fund also was projecting a significant
deficit balance and should, as it was a "pass through" fund,
reflect more of a zero balance. It was noted during discussion
that this fiscal year was a particularly bad year for the city
with regard to insurance claims which for the most part accounted
for the deficit balance.
Mr. Eder was excused at 7 :30 PM.
ADMINISTRATIVE/GENER.AL FUND
City Clerk Althoff noted several personnel changes reflected in
the General Office regular salaries account . Suggested changes
reflected a fulltime personnel clerk, a parttime job share
receptionist position, the possibility of removing the
legislative action clerk, the addition of a finance director or
planning coordinator, and the addition of an administrative
assistant position. After some discussion it was determined that
all these personnel changes be discussed further at a later date
with all other personnel recommendations .
� Some discussion occured with regard to the $15, 000 carryover for
the Beautification Committee line item under Account 455, Boards
and Commission Expenses . It was the consensus of the committee
to budget monies for Beautification however the specifics would
be determined at a later meeting during the Capital Projects
discussion.
Althoff noted the newsletter expenses were moved from the
contractual account, #510, to the printing account #500 and
postage account #501 .
After some discussion the usage line item in the Telephone
account, #502 , was increased from $1, 500 to $3 , 000 to reflect the
actual 1995-96 expense .
Some discussion occurred regarding the retirement of Deputy Clerk
Marth and the feasibility of contracting codification services .
Althoff had budgeted $8, 000 startup costs for this service . It
was the consensus of council to discuss the contracting of
codification services after personnel issues had been determined.
Some discussion followed regarding the amount to be budgeted for
the trans�er of general funds to the Recreation Fund. It was the
consensus of the committee to budget $200 , 000 at this time . Some
further discussion focused on the merits of creating a park
district as opposed to a parks department .
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Finance Committee Minutes
March 4 , 1996
`.- Page Three
City Clerk Althoff was directed to provide the cost of the Fort
McHenry parking lot to the finance committee before the next
scheduled meeting.
Chairman Lawson explained that the next two meetings would be
devoted to reviewing all the Capital Projects and determining
which projects need to be included in the 1996-97 budget figures .
Motion by Baird, seconded by Bates to adjourn the meeting at 8 : 55
PM.
Voting Aye : Bates, Lawson, Baird
Voting Nay: None
Absent : None
Motion carried.
The meeting adjourned at 8 : 55 PM.
Respectfully submitted,
� David Lawson, hairman
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