The URL can be used to link to this page

Home My WebLink AboutMinutes - 11/11/2013 - Finance and Personnel Committee � ^ `Y�� r�. � �.► ,�► McHe FINANCE AND PERSONNEL COMMITTEE 4:00 PM, Monday,November 11, 2013 Aldermen's Conference Room Call to Order Chairman Ald�,rman Richard Wimmer called the meeting of the Finance and Personnel Committees to order at 4:00 I'M. Other committee members present: Alderman Jeffrey Schaefer and Alderman Geri Condon. Also in attendance: Alderman Robert Peterson, City Administrator Derik Morefield, Deputy City Administ��ator pouglas Martin, Finance Director Carolyn Lynch, and Executive Assistant Marci Geraghty. Public Input None. � Consideration of an Increase to the 2013 Property Tax Levy Request Chairman Ald. Wimmer noted for the record Finance Director Lynch was participating in the meeting via telephone conference. City Administrator Morefield told the committee the Property Tax Resolution indicating the levy amount and request to schedule a public hearing on December 2"d will be presented to the full City Council on November 1 g`n For the past two years, the City Council has approved a levy that has remained flat and equal to the 2010 levy in an effort to be mindful of the economic climate and property tax burden of McHenry residents. The Council and staff have continuously worked to reduce operating and capital expenditures while maintaining high quality programs and services residents desire. Unfortunately, despite these reductions, certain operating costs continue to rise and significant capital projects need to be addressed such as the Street Program; park improvements including ADA compliance; stormwater/drainage projects; and various maintenance related improvements to existing public facilities. To determine the amount of the levy increase,two items were considered. 1) In FY 13/14, the city paid approximately $124,000 in dues to the Northern Illinois Special Recreation Association (NISRA). This money currently comes from the general fund, and consequently decreases the amount of funding available for implementation of programs, projects, and services. Implementing a levy increase for the purpose of funding NISRA dues and related projects such as ADA improvements to municipal parks and public facilities would generate additional revenues of approximately$146,000. � Finance and Personnel Committee November 11,2013 Page Two 1 2) The Police Pension Board has estimated an additional $94,000 is required in FY 14/15 for the � fund. The committee may recall the fund had fallen behind in funding requirements in past years and city administration and the police pension board have worked diligently to bring the fund current. The recent sales tax increase generated $93,000 and was used to increase the pension fund levels. Mr. Morefield is of the opinion an increase in the t� levy to account for these costs is appropriate at this time and recommends an increase in the city's property tax levy from $4,761.610 in 2012 to $5,001,485 in 2013; an increase of $239,875; or approximately $24.82 per year per household. Mr. Morefield reminded the committee the increase per household is based on the EAV and should it decline, household taxes will increase to cover the declining EAV. Chairman Alderman Wimmer opened the floor for discussion. Alderman Schaefer asked if it would be feasible to create a dedicated line item in the budget for NISRA instead of increasing the levy. Director Lynch said ultimately it doesn't make a difference and, the money in the levy could be re-appropriated by the Council for a future projects if needed. Alderman Schaefer asked if the special sales tax increase was forever dedicated to the police pension fund and Ms. Lynch said there is no longer a need to use that money for the pension fund as we will be able to meet our funding requirements through the levy. Chairman Alderman Wimmer said he is concerned the public may ask why we still need the special sales tax if we increase the levy. Mr. Morefield said staff will provide more detailed information to the Council to explain past expenditure reductions we have made over the past five years and why the sales tax is still needed. Alderman Wimmer said staff should also point out how long it has been since Council has increased the levy. �' Alderman Schaefer asked how many citizens in McHenry use NISRA and said the question could be asked why NISRA participants do not pay for programs in the same method residents pay for parks programs. Alderman Peterson noted it would be more expensive for the city to hire and train qualified persons to provide the types of programs required far NISRA Alderman Schaefer made a motion, seconded by Alderman Condon to forward a recommendation to the City Council to increase the 2013 tax levy from $4,761,610 collected in 2012 to $5,011,485 to be collected in 20l 3. Aye: Schaefer, Condon, Wimmer Nay: None Absent: None Motion carried. PACE Suburban Dial-a-Ride Voucher Program Deputy City Administrator Martin provided the committee with background information regarding the Dial-a-Ride voucher program. Initially in 2001, the city was awarded a $20,000 grant to fund a senior bus program to augment limited transportation for senior citizens in McHenry. At that time, a senior was considered by the state to be at least 55 years old. The city was reimbursed from the grant for costs to issue and print vouchers. After two extensions, the grant expired in 2003 however the city continues to fund the program for seniors through the General Fund. Since 2003, the program was expanded to also include people with physical disabilities and others with `.- mental impairments who are unable to operate a motor vehicle. Persons eligible receive up to 40 one-way vouchers per month for rides within city limits. Finance and Perscmnel Committee November 11,20 i 3 Page Three � A discussion ensued on the financing costs of the program. A total of 75% of operating costs are funded by PACE and 25% is funded by the city. Staff estimates 40% of the vouchers issued are not used. The cost per ride increased in 2012 to $0.85 for seniors and disabled and next January, the cost will be $1.00. The city pays to print and mail vouchers every three months for a total annual cost of approximately $10,600, which includes printing costs and voucher reimbursements. Alderman Condon asked if other communities in the county offer this program and Mr. Martin answered no. Alderman Schaefer asked if Dial-a-Ride services would be affected financially if the city were to discontinue the program and Mr. Martin answered no,the current service would remain the same. Staff is seekin;; direction from the committee as to whether the city should continue to issue free Pace Dial-a-Ride vouchers and recommends the adoption of guidelines to govern eligibility and the creation of an application. similar to the application for handicapped parking permits, to determine applicants' eligibility to participate in the program. Chairman Alderman Wimmer suggested staff develop an application form and also phase-out the program over the next two years. Alderman Schaefer noted the need for Dial-a-Ride subsidies for seniors is increasing and the city should be diligent in enforcing the rules of the program. Alderman Condon agreed the guidelines should be established and followed. Alderman Schaefer asked how many physically handicapped ci�:izens are using the program and Mr. Morefield answered that information is not available. Chairman Alderman Wimmer suggested phasing out the physically and mentally disabled and maintaining thc, program from seniors only. Alderman Schaefer agreed and recommended developing criteria for staf'to follow when issuing vouchers. Mr. Morefield agreed and noted trying to determining who is mentally disabled could be a liability issue. It would be easier to administer the program for ,� seniors only. Alderman Condon agreed with the phase-out recommendation and suggested an expiration date should be determined and if possible stamped on the vouchers. After more disrussion, the committee agreed to recommend to the full Council to offer the program only to seniors as it was initially intended and to establish April 30, 2014, as the expiration date for physically and mentally disabled persons to use the program. A letter will be mailed and handed to persons requesting vouchers explaining the program guidelines in effect on May 1, 2014. Mr. Morefield said staff will notify Pace. Adjournment There being no further business to discuss Alderman Condon made a motion, seconded by Alderman Schaefer to adjc�urn the meeting. Aye: Condon, Schaefer, Wimmer Nay: None Absent: None Motion carried. The meeting was adjourned at 5:00 PM. Respectfully submitted, � � �� Alderman ichard W. immer, Chairman