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HomeMy WebLinkAboutMinutes - 9/9/2013 - Finance and Personnel Committee �� v�fi .. v � � v s�+ McHen FINANCE AND PERSONNEL COMMITTEE 4:00 PM, Monday, September 9, 2013 Aldermen's Conference Room Call to Order Chairman Alderman Richard Wimmer called the meeting of the Finance and Personnel Committees to arder at 4:00 F'M. Other committee members present: Alderman Jeffrey Schaefer and Alderman Geri Condon. Alsc in attendance: Mayor Susan Low, City Administrator Derik Morefield, Deputy City Administrator pouglas Martin, Finance Director Carolyn Lynch, and Executive Assistant Marci Geraghty; Lisa Brand, Christina Kernes, and Dan Kernes representing Utopian Roast, LLC d/b/a Hidden Pearl Cafe. Public Input None. � Revolving Loan Fund Request, 1208 North Green Street Chairman Ald. Wimmer noted the Revolving Loan Committee, which consists of inembers of the Finance and Personnel Committee and the Mayor, will examine a request for a business loan through the City of McHenry Revolving Loan Program. Deputy City Administrator Martin presented a request for a Revolving Loan submitted to the city by Lisa Brand and Christina Kernes, principals of Utopian Roast, LLC. The applicants intend to open the Hidden Pearl Cafe, a coffee/pastry shop at 1208 N. Green Street(former site of The Pink Doar resale shop). Ms. Brand and Ms. Kernes are seeking financial assistance in the amount of$34,000 to remodel the existing building, purchase equipment, furniture, and fixtures for the new business. If approved,they plan to open the business in mid-October 2013. Ms. Brand told the committee she and her parmer looked at several downtown spaces. They selected this location in part because of its proximity to the McHenry Movie Theater, high school, and residences. She also expressed her fondness for McHenry and said they will use the funds to improve the space and purchase equipment. Finance Director Lynch reported First National Bank of McHenry has agreed to underwrite the loan. Terms of the proposed loan are similar to previous loans approved for Epic Cycle and Buddyz; a five-year term with an interest rate equal to prime currently 3.25%. Ald. Schaefer asked what will happen to the loan if the business closes before the loan is paid. Ms. Lynch �-- stated the principals will still be responsible to pay the loan with the same terms. Finance and Personnel Committee September 9,2013 Page Two � Chairman Ald. Wimmer asked about proposed business hours and if the business will offer food. Ms. Brand replied ihe hours will most likely be 6:00 AM to 8:00 PM however it depends on customer demand and theater trai'fic. She said they intend to serve coffee,tea, waffles and crepes, along with pastries and as the business gr�ws,they may offer sandwiches. It will be operated similar to a European cafe. Alderman Schafer made a motion, seconded by Alderman Condon to forward the proposed Revolving Loan request f�r $34,000 submitted by Utopian Roast, LLC d/b/a Hidden Pearl Cafe to the City Council for consideratiun. Aye: Schaefer, Condon, Wimmer Nay: None Absent: None Motion carried. FY 13/14 First Quarter Financial Report City Administrator Morefield presented the FY 13/14 First Quarter Financial Report for the period May 1, 2013 through July 31, 2013. Mr. Morefield explained the report is a checkup on ciTy finances and also presents an opportunity far the Council to be kept updated on the status of revenues and expenses, which will assist them during the next budget cycle. As City Administrator, he reviews the city's finances monthly and the Finance Director reviews them daily. These checks and balances are performed to insure the budget is followed and remains balanced. Mr. Morefield noted Finance Director Lynch prepared the narrative included in the report and asked her to provide the committee with a review of expenses, revenues,and comparisons for the first quarter. `-' Budget vs. Actual—Revenues & Expenditures. Ms Lynch reported this table reflects the current percent of budget reve�iues and expenses for the city's fund accounts. She noted although it would be logical for the funds to b� at 25% after the first quarter, however this is not always the case as equipment and services are often purchased or contracted early in the budget cycle. For example Capital Equipment Fund expenses are at 58.5% and Capital Development fund revenues are at 51.7%. Needed equipment was purchased early and as money is received, transfers from revenue to expense accounts are made thorough the year. Revenues b,�'y�e. The Property Tax account is at 50.5%. Property taxes are collected in June and September. Licenses and permits include vehicle stickers due in the first quarter. This account is currently at 61.8%of budget. Revenues by Fund. Ms. Lynch noted the Water/Sewer Fund is behind projected revenues at 22.1% of budget. This is most likely a result of the wet and cool summer. Expenditures bv TXpe. Salaries and overtime are monitored. Salaries currently are as projected at 22.7% however this number could increase sharply depending on the time of year, i.e. snow season. Expenditures by Fund. Ms. Lynch noted Debt Services is currently at 0.9% however the city will make principal payments in December at which time the fund will in all probability be in step with the budget forecast. Ald. Schaefer inquired about the status of the MFT Fund currently at 7.8%. Ms. Lynch explained MFT money is paid by the state one month behind. Ald. Schafer commented first quarter reports are always difficult due to timing. Ms. Lynch noted the Gary Lang Auto Group incentive has been paid. A discussion ensured on the terms of the Gary Lang development agreement. � Finance and Personnel Committee September 9,2013 Page Three L-' In summary, Mr. Morefield told the committee this report will be prepared for the benefit of the City Council one month after the end each quarter. The report will be brought to the Finance and Personnel Committee pri��r to review by the full Council. Adjournment There being n� further business to discuss in Executive Session, Alderman Condon made a motion, seconded by Alderman Schaefer to adjourn the meeting. Aye: Schaefer, Condon, Wimmer Nay: None Absent: None Motion carried The meeting was adjourned at 4:30 PM. Respectfully submitted, � �� � Ki'-- Alderman Richard W. immer, Chairman � �