HomeMy WebLinkAboutMinutes - 3/14/2011 - Finance and Personnel Committee FINANCE AND PERSONNEL COMMITTEE MEETING
�,. Monday, March 14, 2011
Aldermen's Conference Room, 4:00 p.m.
In Attendance: Committee Members: Chairman Alderman Schaefer, Alderman
Blake and Alderman Wimmer. Absent: None.
Also in Attendance: City Administrator Black, Assistant Administrator Hobson,
Construction and Neighborhood Services Director Schwalenberg, Deputy City Clerk
Kunzer.
Chairrrian Alderman Schaefer called the meeting to order at 4:07 p.m.
Discussion: 2011/2012 Fiscal Year Bud�et
General Fund Preliminary Overview
City Administrator Black provided an overview of the General Fund Revenue Summary
to the Committee. He pointed out the anticipated revenue increase due to the
establishment of the Local Sales Tax. He also noted the projected loss of revenue of
approximately $470,000 which will be realized when WalMart relocates to Johnsburg.
He noted, however, the loss would likely be realized as part of two fiscal years
(2011/2012 and 2012/2013).
� City Administrator Black explained the terms of the Sales Tax Agreement with Gary
Lang Auto Group and noted the rebate of 100% is applied when Lang Sales Taxes are
paid in an amount between $450,000 and $750,000 annually. A 60% rebate is provided
for any amount in excess of$750,000 annually.
In response to an inquiry, City Administrator Black stated the tax information is provided
to the City by Gary Lang with verification from the State of Illinois. The agreement is in
place for a 20-year term or until the City has concluded paying for the current Lang
expan�ion project. City Administrator Black also noted that typically in a very good year
the sales tax proceeds would be approximately$600,000.
City Administrator Black noted the number of full time equivalents (FTE) has decreased
in the past four years from 132.55 to 109.45 which reflects the City's intent to maintain
services while reducing costs to the taxpayers. He commended Staff and Department
Heads on their willingness to assist in finding ways to reduce City expenditures.
Chairnzan Schaefer inquired as to the salary adjustment line item in each of the
departments. City Administrator Black responded a 1.5% increase was shown for all
employees not covered by collective bargaining agreements. Union employees are
protected by their agreement and would be provided raises pursuant to the terms of their
bargaining agreement. Staff believes a 1.5% increase may be palatable but it would of
course be up to Council for consideration and approval.
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Finance and Personnel Committee Meeting
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Page 2
Administration Deaartment
City Administrator Black stated Administration will be reduced by one FTE upon the
retirement of the Building and Grounds employee prior to the end of the fiscal year.
Recently Staff has secured the services of a janitorial company to perform these services
on a regular basis. City Administrator Black noted this becomes difficult when there is no
one on Staff to set up for meetings, mechanical oversight, etc. No decision has been made
at this time regarding whether or not to maintain the FTE for this position. The position
has bevn included in the proposed budget, however.
City Eldministrator Black noted an increase in contractual services largely due to an
increa;�e in users of the Dial-A-Ride program. An increase in corporate legal fees of
$10,0(►0 is targeted for the negotiation process for collective bargaining which will occur
during this fiscal year.
City Administrator Black stated the vehicle maintenance category covers the Downtown
Maintenance vehicle which is included in Administration. He also pointed out the
increase in the proposed employee health insurance premiums which reflect a 10%
increase. He noted this is a modest increase as it relates to the industry.
� Alderman Wimmer inquired if the uniform allowance line item was specifically for
uniforms. Assistant Administrator Hobson stated in some cases it was actually a clothing
allowance as a uniform was not required. Alderman Wimmer recalled the clothing
allowance was deleted as a line item during budget discussion last year and inquired why
it was still shown in this year's budget. City Administrator Black responded the
clothing/uniform allowance was removed from all non-represented and/or exempt
employees last year. However, the collective bargaining agreements provide for this item
for represented employees.
Chairman Schaefer noted this is a "fluff' category. He understands the need for uniforms
and reimbursing for their cost. However, he deems clothing allowance to be unnecessary.
He inquired if the committee could recommend changes in the budget regarding this
matter. City Administrator Black responded the clothing allowance and uniform issue
would have to be negotiated with the represented employees when contract renewal
comes forward.
Elected Officials Department
City Administrator Black noted this department's budget is basically the same as last
year.
Chairtnan Schaefer noted there should be a decrease in Council and City Clerk pay
reflected by the reduction in number of ineetings scheduled. City Administrator Black
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acknowledged he would make that correction.
Finance and Personnel Committee Meeting
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Page 3
Construction and Neighborhood Services Deaartment
City Administrator Black noted an increase in contractual services which reflects the
increased cost of mowing additional properties as a result of foreclosures. There is also
an increase of$2,000 which covers the cost of providing legal services for Administrative
Adjudication for department cases. There is a 90%(Police)/10% (Construction and
Neighl�orhood Services) split on the adjudication legal costs.
Finance Department
City A dministrator Black stated the Finance Department has been reduced by 1.5 persons
follow ing the retirement of two full time individuals and the internal promotion of one
part time individual to full time status.. City Administrator Black stated the City has
realized a savings of more than $121,000 in salary as a result of this decrease in
personnel. He noted the administrative assistance and two part time office assistants are
still shown in the Parks Department budget.
City Administrator Black noted an increase in accounts 5310 and 5330 which relates to
the changeover in vehicle sticker software and mailing. He also pointed out line item
6945 Development Expense which represents an estimate of reimbursement relating to
the Gary Lang Development Agreement next year.
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Chairman Schaefer inquired if all debt service was shown in the Finance portion of the
General Fund. City Administrator Black responded that there is also debt service shown
in the Water and Sewer Departments as well as in the TIF Fund.
Police Commission
City Administrator Black noted the increase in budget for the Police Commission as the
current candidates list will expire in August and testing must be done to create a new list
to be posted. Each police officer candidate list is good for only two years.
Police Deuartment
City Administrator Black stated the department has decreased its sworn personnel from
60 to 58.6 FTE. There has been a decrease of one sergeant. The department has one .6
FTE IT person and one member of the IT Department is likewise dedicated to the Police
Department for 911 services and related IT matters. The remaining .4 FTE is being
utilized for patrol officer overtime.
City ��dministrator Black noted the large increase in pension contributions for the
department. This increase was mandated by the state and will be financed by the revenue
realized by the Local Sales Tax. An increase is also shown in the dispatch line item in
order to accommodate when someone needs to work in the absence of another.
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Finance and Personnel Committee Meeting
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Question was raised as to the dual career line item. City Administrator Black noted this
item was one that was part of the concessions granted by the union during last year's
budget discussions.
City Administrator Black noted discussions would occur in the near future regarding the
issue c�f newer command Staff salaries not being in line with patrol officers who are at the
top of their pay scale. He noted with the recent retirement of sergeants, patrol officers
have been promoted to sergeant. However, due to the recent salary freezes, they have not
been 7�r�anted salary increases, while patrol officers, represented by the union, have
continued to receive increases. He suggested this matter be discussed in more detail at the
next F inance Committee Meeting.
City Administrator Black stated an increase was also shown in the legal fees line item.
This increase reflects the legal costs associated with administrative adjudication,
approximately$18,000.
Chairman Schaefer inquired if the proposed $609,000 police pension expenditure would
bring up the City's contribution level to what should be in the fund during this fiscal year.
City Administrator Black responded this is the required amount by the State and noted
� this amount could likely decline somewhat next year due to the state's extension of the
timeline for compliance an additional ten years.
In response to an inquiry from Chairman Schaefer, City Administrator Black noted the
amount of the police pension payment reflects the status of inembers of the police force,
both retired and those currently serving the City.
Public Works Administration
City Administrator Black stated the line items for this department remain basically the
same �is last year with a slight increase in training.
Public Works Streets
City Administrator Black noted this department's budget also maintains the status quo.
However, expenses did decrease due to the conclusion of the LUST removal project at
the fo�mer Public Works garage reaching its conclusion.
Parks and Recreation
City Administrator Black noted the department has the same staffing levels as last year.
He stated the program staff(i.e. teachers, class leaders, etc.) are being moved from 4110
Seasonal Workers to 5110 Contractual.
City Administrator Black noted the Parks Committee and Staff have encouraged treating
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McCullom Lake for milfoil. The remediation is included in this year's budget. Discussion
Finance and Personnel Committee Meeting
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Page 5
occurred regarding the proposed remediation and questions were raised as to this being a
desire or a need.
Chairman Schaefer inquired if the City has been directed by any entity to remediate
McCullom Lake. City Administrator Black responded he will look into this matter and
advise the committee of his findings.
City Administrator Black also noted the replacement of the Veterans Memorial Park
gazebc� is also included in this year's budget. It was the consensus of the committee that
roof replacement could be justified, particularly in light of the heavy use of the park and
the gazebo for events throughout the year.
City Administrator Black stated the two projects if brought forward would be paid for by
a transfer of funds from the Tourism Fund.
Chairman Schaefer requested Staff investigate how much the City annually pays to lease
facilities for City/Park-sponsored events.
Proarietary Funds
Public Works Water Division
,� City Administrator Black stated there have been minimal changes to this department
budget. He noted an increase in 5110 of$1,000 and a transfer of$175,000 to the Utility
Improvement Fund to cover the anticipated cost of engineering for water infrastructure
improvements. He noted an upcoming bond issue in the amount of $750,000 which
would also cover in part the cost of public works garage roof replacement. City
Administrator Black stated there was a possibility of reducing the water division staff by
one FTE during the next year upon retirement of one individual.
Public Works Wastewater Division
City Administrator Black, referencing the Wastewater Division, noted the increase in
contractual services in the amount of $6,000, an increase in System Repairs and
Maintenance in the amount of$25,000, and an increase in Sludge Disposal in the amount
of $10,000. There is also an increase shown in 7100 and 7200 which reflects the debt
service for last year's plant improvements. The $8,000 transfer to the Utility
Improvement Fund is for the wastewater treatment plant clarifier.
City Administrator Black stated there would be an increase in salary of the plant
super�isor once the employee has attained Class I Operator status. This would have to be
incorporated into this year's budget.
Capital Development Fund
City Administrator Black noted there are no scheduled expenses in the Capital
Development Fund.
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Finance and Personnel Committee Meeting
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Page 6
Marina Fund
City Administrator Black stated the expenses indicated in the Marina Fund relate to real
estate taxes and anticipated building repairs.
In response to an inquiry, Assistant Administrator Hobson stated there would likely be
building repairs required this year.
Utilit� Improvement Fund
City Administrator Black noted this year's expense is targeted for the engineering for the
closure of the Central Wastewater Treatment Plant.
Risk Mana�ement Fund
City Administrator Black stated there would likely be a decrease in premiums from
MCMRMA this year. There is stability in the City's liability due to recent resolution of
several outstanding cases.
Information Technologv
City Administrator Black noted this is an internal services fund which charges the cost of
personnel and supplies across the board to each of the departments. This department
� handles both network and desktop computer maintenance.
City Administrator Black stated there are minimum changes to this fund this year which
has maintained the status quo for the past three years. There was a small increase in
contractual services and small equipment purchases due to the planned purchase of four
in-car laptop computers for the Police Department. The department also plans to purchase
two Dell servers to be used for virtual desktop computer service. Rather than having
computers on a desk, the employee would have a virtual PC which reflects a cost
reduction per unit of$1,000 to $400. Utilizing a virtual PC would result in all software
and data being stored on the server and not on the desktop. This would be cost effective
for the City.
Some discussion occurred regarding the possibility of the IT Department being
contracted out as opposed in in-house staff. City Administrator Black stated Staff could
look into the possibility of having a 50/50 split regarding in-house and contracted service
in this department.
Discussion also occurred regarding the IT services provided to the Police Department. It
was noted the .6 FTE employee is responsible for in-car computer installation and
maintenance while one of the two FTE IT personnel works almost exclusively with the
Police Department as far as 911, department server, etc.
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Finance and Personnel Committee Meeting
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In response to an inquiry, City Administrator Black noted there is very limited
opportunity to obtain support assistance from the software providers as opposed to in-
house staff largely due to the old software currently being used by the City.
Emplovee Insurance Fund
City Administrator Black stated over the past three years, the City has been able to
decrea�e the deficit in this fund to the point the proposed budget reflects only a $150,000
deficit Three years ago the deficit was more than $700,000. He projected the deficit
should be removed in its entirety by the end of this year or next year.
Capital Develoament Fund
City Administrator Black provided the committee with an overview of the new Capital
Development Fund which is targeted to pay for the expenditure of funds to purchase
replacement vehicles and equipment on a scheduled regular basis, optimally an 8-year
rotatio n.
City Administrator Black stated the Police Department is looking to replace one of its
two SiIV's which are used by command staff and five of its interceptor fleet vehicles at
an ap�roximate cost of $30,000 per vehicle for a total of $180,000. The Parks and
� Recreation Department would like to replace its 1998 tractor mower used to prepare
athletic fields for use at a cost of$35,000. The Public Works Street Division is requesting
to replace one loader at a cost of$200,000 and one dump truck at a cost of$135,000.
City Administrator Black stated Staff is proposing an initial fund balance of $750,000
plus a $45,000 transfer from the Water Fund due to the Water Division using on an as-
needed basis a Street Division dump truck. The fund would therefore break down as
follows:
In Out Balance
Initial Balance: $750,000
Transfer from Water Fund $ 45,000
Less purchase of Police vehicles -$180,000
Less purchase Parks tractor mower -$ 35,000
Less purchase PW Streets loader -$200,000
Less purchase PW Streets dump truck -$135,000
$795,000 -$550,000 $245,000
City Administrator Black recommended retaining the $245,000 balance in the fund to
leave a cushion in place. He stressed the Capital Development Fund is solely for General
Fund capital improvements. He noted the estimates provided for each vehicle are based
on state-contracted pricing. City Administrator Black stated he would provide the
committee with additional information and specific detail sheets at its next meeting.
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Finance and Personnel Committee Meeting
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Page 8
It was the consensus of the committee to meet again on March 28, 2011 at 4 p.m. to
continue deliberation of the 2011/2012 fiscal year budget. Meeting agenda would include
executive session to discuss personnel.
New Business
No ne�v business was discussed.
Adiournment
Motio�i by Wimmer, seconded by Blake, to adjourn the meeting at 5:48 p.m.
Aye: Blake, Schaefer, Wimmer.
Nay: None.
Absent: None.
Motion carried.
Respectfully submitted�,
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J re}� . haefer, Chai
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