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Home My WebLink AboutMinutes - 6/7/1993 - Finance and Personnel Committee E}�.ECUTIVE SESSION MINUTES: FINANCE CONlNIITTEE NfEETING June 7, 1993 L Members Pre::ent: Chairman Locke, Aldermen Bates and Bolger. Others present: Mayor Cuda, Alderman Baird, Administrator Peterson, Sergeant Kinnerk. Chairman Locke stated he wished to have the Committee consider a pay issue in the Police Department concerning sergeants. He asked Sergeant Kinnerk to be present at the meeting tonight. Mr. Locke explained the current pay differential for the Sergeants and Detective Sergeant positions. He asked the Committee to consider ad�usting the Sergeants pay grade to the same grade as the Detective Sergeant position. Chairman Locke presented a financial analysis (attached) of this recommendation which included the elimination of overtime pay for sergeants. Alderman Bolger stated this recommendation should receive additional review. Mayor Cuda stated the idea has some merit but he did not want to rush into a decision regarding this salary recommendation without receiving input from the Chief of Police and from information from a salary survey for sergeants and lieutenants. Sergeant Kinnerk pointed out the timing of this request was unusual but due to unionization efforts of patrolmen and sergeants, and the subsequent removal of sergeants from the unit, this was the first opportunity to consider his request. Mr. Kinnerk was then asked to leave the meeting. Discussion took place concerning the merits of ad�usting the pay for � sergeants an additional 8.9% when a 4.25% increase had already been made May 1. The Administrator pointed out this ad�ustment would create problems with the two lieutenants and that he was unable to complete a survey of comparable communities requested by Chairman Locke this morning for this meeting. The issue of how this proposed increase might affect discussions should the patrolmen unionization efforts be successful was also discussed. The Committee agreed to consider this issue at the next City Council meeting and asked they be provided with a salary survey of comparable commun ies for sergeants and lieutenants. � � , Gerald R. Peterson � � SALARY SURVEY AS OF J[JPE 11, 1993 Ser�eant Det. Sergeant Lieutenant McHenry $47,420 $49,569 $51,592 -16,177 Algonquin $44,590 ---- ---- -11,663 Bartlett $48,075 --- $61,381 -24,323 Crystal Lake $51,000 --- $58,000 -24,512 Libertyville $48,924 --- $53,937 -19,174 Mundelein $50,740 --- $58,337 -21,215 Woodstock 43 178 -- - --- -14,353 ,� Average $47,704 $49,557 $56,649 * Figures represent average pay of all persons currently employed in each classification by each 3urisdiction and include longevity where applicable. � �-- PATROL SERGEANT SALARY LONGEVITY TOTAL BURG $45,596.00 $1,823.84 $47,419.84 KINNERK $45,596.00 $1,823.84 $47,419.84 PRAZAK $45,596.00 $1,823.84 $47,419.84 MILITANO $45,596.00 $1,823.84 $47,419.84 DETECTIVE ERKENSWICK $47,650.00 $1,906.00 $49,556.00 DETECTIVE $49,556.00 PATROL SERGEANT $47,419.84 $ 2,136.16 If a Patrol Sergeant retired today with 20 years of service, less ttie $2,136.16 a Detective makes, it would equal: (20 Years) $2,7.36.16 X 50%= $1,068.08 per year - $89.00 per month = $21,361.00. (30 Years) $2,136.16 X 70%= $1,495.31 per year - $124.61 peL month= $29,906.00 _ (35 Years) $2,136.16 X 75%= $1,602.12 per year - $133.51 per month= $32,042.00 � The De�ective pay has a $2,054.00 FIXED more than the Patrol Sergeant, biit he will not receive overtime. The Patrol Sergeant does receive overtime. The bi� difference is that tt�e fixed rate qualifies for PENSION and overtime DOES NOT. 'rhe Patrol Sergeant requests that all Sergeant pay be equal when reaching top pay. In order to help accomplish this, the Patrol Sergeant will relinquish overtime pay. Patrol Sergeant 1992 overtime pay = $3,175.52 Patrol Sergeant 1991 overtime pay = $4,388.03 TOTAL = $7,563.5� (TWO YEAR) AVERAGE _ $3,781.78 • Four Patrol Sergeants at $2,136.16 = $8,544.64-$3,781.78 = �4,762.86 � MINUTSS: FINAftCB COMMITTSB June 7, 1993 Members Present: Chairman Locke, Aldermen Bolger and Bates. � Others Prese�nt: Mayor Cuda, Alderman Baird, City Administrator Peterson, Steve Murgatroyd, Pat Buhrman, Sergeant Daniel Kinnerk. The meeting was called to order at 7:35 P.M. by Chairman Locke. Mr. Locke stated he wished to see the Finance Committee become proactive regarding City financial issues and that he would like the Committee to meet on a regular basis. Regarding this meeting, Chairman Locke indicated he had added an item for consideration and except for the additional item, he did not expect any recommendations from the Committee tonight. Chairman Locke asked Administrator Peterson to give a brief introduction to items on the agenda. 1. Emnlovee Health Insurance Administrator Peterson gave an overview of the process used to review employee health insurance coverage and carriers for the past two years. He stated review of the City's group health insurance plan is a sensitive sub3ect for City employees. Chairman Locke suggested the Finance Committee meet with Arthur J. Gallagher representative Jim Relyea to begin the process of developing a request for proposal to solicit bids for providing the City with group health insurance coverage (using current schedule of benefits) for the next benefit year (January 1, 1994). He asked that a list of communities which provide health insurance coverage through self insurance be provided, - along with an indication of communities which switched from self � insurance back to a fully funded plan. 2. Annexation Fees Administrator Peterson explained the existing annexation fee schedule endorsed by the forraer City Council. It includes $500.00 per acre payable for all annexed property (residential, commercial, industrial) within 90 days of approval, and $500.00 per residential unit payable at the time of building permit issuance. Alderman Bolger stated he felt annexation fees should be increased to perhaps $1,000 for new developments. Alderman Bates indicated the Council cannot be held to standards approved by past City Councils, as the new administration will develop its own standards. Mayor Cuda pointed out that any fee increase proposal needs to be specific as to how it will be applied. 3. 1988 �2,700,000 Waterworks and Sewera�e Bond Administrator Peterson reported on the status of the 1988 revenue bond used to finance the construction of the sanitary sewer system to service McHenry Shores, as follows: 1) 67 of 595 lots assessed for payment under special assessment financing are currently delinquent; 2) 378 lots have paid their special assessment in full; and � 3) funds from special assessment pre-payments are currently invested at a rate of 4.25% which will result in a revenue shortfall in the out years of the 1988 bond issue (current amival deficit aprpoximately $30,000.00) . Finance Comrr,ittee Meeting June 7, 1993 Page 2 Recommendation: After discussion, the Committee recommended a letter � from the City be sent to the delinquent property owners advising them the City was considering taking action to collect delinquent special assessments through a tax sale process in con�unction with the County Collector/Treasurer. 4. Bud�et Action Revenue Items Administrator Peterson reported the 1993-94 Budget contains several line items for increased fees, three of which he wished to review, including: 1) Increase in building permit fees 2) Increase in fees from a renegotiated cable franchise agreement, and 3) Increase in fees for leaf bag purchase Peterson reported no action was needed on the budgeted increase in leaf bag sales until bids are received and a contract awarded for residential waste collection services. The Mayor asked that the cable franchise not be discussed until the fall, as more pressing issues currently face the city. Regarding budgeted increases in building permit fees, Mr. Peterson stated this sub3ect was discussed last year at both the Finance Committee and City Council level, but no agreement could be reached concerning how any � proposed increase in building permit fees should be applied. In fiscal � year 1992-93, building permit fee revenues were $82,933 with Building and Zoning Department expenses of $202,186. Alderman Bolger stated he felt consideration should also be given to increasing the fee for vehicle stickers to become effective in 1994. Chairman Locke felt a license fee for bicycles should be considered. Recommendation: The Committee felt the Building and Zoning Committee was the appropriate Committee to consider increasing building permit fees and should begin its review shortly. 5. April 30, 1993 BudAet Renort Administrator Peterson recommended the Finance Committee review the monthly Budget Reports that are included in City Council agenda packets. He also recommended a quarterly review of the City's fiscal condition take place in early June, August, November, and February each year. The fiscal year ending report for 1992-93 was briefly reviewed. Alderman Locke asked the next agenda item be discussed in Executive Session as it dealt with a personnel matter. Committee members, the Mayor, Alderman Baird, Administrator Peterson and Sergeant Kinnerk remained for this discussion. The meeting was ad3ourned to Executive Session at 8:50 P.M. � The meeting reconvened to public session at 9:20 P.M. and on a motion made and seconded, wa adjourned. Gerald R. Peterson