HomeMy WebLinkAboutMinutes - 4/9/2012 - Finance and Personnel Committee FINANCE AND PERSONNEL COMMITTEE MEETING
\.. Monday,April 9, 2012
Aldermen's Conference Room, 5:00 p.m.
In Attendance: Committee Members: Chairman Alderman Schaefer, Alderman Blake and
Alderman Wimmer. Absent: None. Staff in Attendance: City Administrator Black, Deputy
Administrator Martin, Finance and Personnel Manager Lynch, Deputy Clerk Kunzer.
Others in Attendance: Mayor Low, Derek Morefield.
Chairman Alderman Schaefer called the meeting to order at 5:01 p.m.
Continued Discussion: 2012-2013 Fiscal Year Bud�et
City Administrator Black summarized modifications made to the proposed General fund 2012-13
Fiscal Year budget based upon discussions which occurred at the Committee's March 26, 2012
meeting. Chariges were made to more accurately reflect proposed expenditures as follows:
Administration
Salary/Benefits $9,976 - Increased salary for new City Administrator
Service Contracts ($3,450)
Legal Fees ($15,000)
Admin Expense ($5,000)
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Transfer to Capital Equip $50,000—to increase total transfer to $750,000 for FY
Police Commission
Service Contracts ($6,375)—No patrol officer testing required during this FY
Police Department
Salary/Benefits ($7,374)—Result from contract negotiations
Travel ($2,200)
Training ($7,200)
Materials/Supplies ($1,000)
Parks $Recreation
Personnel $5,472
Service Contracts ($30,000)—Result from reduced program registrations
General Fund Expenditures Total Amendments: ($12 151)
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City Administrator Black noted the following amendments to the General Fund Revenue:
Local Sales Tax $81,887
Inter Track Wagering $ 5,000
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Other $11,392
Finance and Personnel Committee Meeting
Apri19, 2012
Page 2
�"" General Fund Revenue Projection Amendments:$98,279
City Administrator Black stated the amendments also include an adjustment to the Risk
Management Fund from the General Fund in the amount of $110,000 in order to increase the
reserves in the Risk Management Fund which have been reduced as a result of recent settlements
of MCMRMA claims.
Chairman Schaefer inquired if the proposed revenue increase from Inter Track Wagering was
based on typical receipts to which City Administrator Black responded in the affirmative.
Alderman Wi�nmer stated it appeared the proposed budget was pretty conservative as far as
revenue projections were concerned.
City Administrator Black noted the proposed budget would result in a flat property tax levy; i.e.
same rate as last year. He concluded noting a $37,000 surplus would be realized if the amended
budget is approved.
City Administrator Black referenced the memo distributed to the Committee and highlighted
various modifications and adjustments made resulting from the March 26, 2012 Committee
meeting. He noted an overall budget increase of 1.4% which included a 2% wage increase with
no step for non-represented employees. An increase in development incentives was shown in
order to accommodate expected payouts resulting from development agreements with Gary Lang
L and Regency Centers.
Chairman Schaefer inquired if the 2% increase to non-represented employees would be merit-
based. City Administrator Black responded if there is an under-performing employee the
increase could be withheld. However,he does not anticipate that would occur.
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City Administrator Black noted a proposed expenditure of$571,000 for capital equipment and
stated the proposal does not represent an aggressive replacement schedule. The vehicles being
replaced all have in excess of 90,000 miles and are at least 10 years old.
City Administrator Black pointed out the Water Division expenditures indicate a reduction of
one fulltime equivalent, a meter reader position which has gone unfilled and is now being
removed from the budget.
City Administrator Black stated the Capital Improvements Fund includes the Local Street
Program and a repair of Draper Road, a portion of which will be funded by the Legend Lakes
settlements (in the amount of$130,000).
City Administrator Black noted the City would issue bonds for the improvements covered in the
Utility Improvement Fund.
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Finance and Personnel Committee Meeting
Apri19, 2012
Page 3
�' Chairman Schaefer inquired when the City would like issue the bonds, to which City
Administrator Black stated he would confer with bond counsel. However, he speculated the City
would be prepared to issue bonds in July.
There were no further inquiries regarding the proposed Fiscal Year 2012-13 Budget.
Motion by Black, seconded by Wimmer, to recommend that the Fiscal Year 2012-13 Budget as
amended be presented to Council for consideration.
Voting Aye: Schaefer, Blake, Wimmer.
Voting Nay: None.
Absent: None.
Motion carried.
Other Business
City Administrator Black stated when the City implemented its Home Rule Sales Tax, one of the
targeted funds for receipts was the Police Pension Fund, as well as the Capital Equipment Fund.
The deficit in the Police Pension Fund (PPF) was problematic as the State requires the PPF to be
brought within 90% of required funding as dictated by actuarial statistics. Even though the date
for compliance was recently extended by the State legislature, it would be in the City's best
interest to transfer money to the PPF from the Home Rule Sales Tax revenue in order to reduce
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the PPF shortfall. The PPF is currently funded at a 55% level.
City Administrator Black stated the revenue generated by the Home Rule Sales Tax has
exceeded early projections by approximately $350,000 to $400,000. The possibility now exists
for the City to transfer funds from the General Fund into the PPF so that the PPF would become
100% funded now as opposed to slowly attaining that status by the year required by State statute.
If that were to occur, however, the City would be required to further amend the Supplemental
Appropriation Ordinance which was approved at the Apri12, 2012 regularly scheduled meeting.
City Administrator Black noted the reserves in the General Fund will increase to between 23-
24% at the end of the Fiscal Year and Staff feels comfortable in recommending the transfer to
the PPF. He noted even with the transfer he would expect the City to maintain reserves in the 23-
25%range.
Some discussion occurred regarding the pros and cons of transferring the money to the Police
Pension Fund.
Chairman Schaefer inquired if there was any financial benefit to paying the one-time transfer to
the PPF from the General Fund. City Administrator Black responded the City is currently
matching the payouts to retirees with the money collected from police officers pension payments.
The City is therefore not losing ground at the current time.
It was the consensus of the Committee that this matter be brought to full Council for
consideration and discussion.
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Finance and Personnel Committee Meeting
Apri19, 2012
Page 4
`'" Adiournment
Motion by Blake, seconded by Schaefer, to adjourn the meeting at 5:29 p.m.
Voting Aye: Schaefer, Blake, Wimmer.
Voting Nay: None.
Absent: None.
Motion carried.
Respectfully submitted,
J f ey ch fer, Chairman
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