HomeMy WebLinkAboutMinutes - 11/7/2005 - Finance and Personnel Committee FINANCE AND PERSONNEL CONIlVIIT"I'EE MEETING
� Monday,November 7, 2005
Aldermen's Conference Room,6:30 p.m.
In Attendance: Committee Members: Chairman Alderman Murgatroyd, Alderman
Schaefer, Alderman Peterson. Absent: None. Also in Attendance: Mayor Law, City
Administrator M�einer, Deputy Clerk Kunzer.
Chairman Alderman Murgatroyd called the meeting to order at 6:35 p.m.
Vehicle Sticker Pragram
City Administrator Ma�ceiner stated a request has been made to consider eradication of the City's
eunent vehicle sticker pro�ram. He noted the program realizes approximately $163,000 annually
which would be difficult to replace. The vehicle sticker program fund is restricted to roadway
maintena.nce and improvement expenses.
Suggestion was made to implement a NISRA(Northern Illinois Special Recreation Association)
levy which could be utilized to replace the revenues garnered from the vehicle sticker pro�-am.
The difficulty comes in the use of the revenues. Money rea.lized from the NISR.A levy could onIy
be utilized to fund 1VISRA. annual dues. Municipal Center remodeling to accommodate ADA
requirements andlor inclusion monies required for special needs individuals to receive the same
recreational benefits as non-special needs individuals in the community.
� City Administrator Maxeiner noted the NISRA annual dues are .0175 times the equalized
assessed valuation (EA� of the City. This year's dues are approximately $90,000. This City is
permitted to levy up to 4% of the EAV for Special Recreation Tax. However, as previously
stated the monies raised from the tax must be e�ended on 1VISRA dues, ADA compliance costs
to remodel Municipal Center, and inclusion costs. The Special Recreation Tax levy would be
implemented as a property t�which would be applicable to all properties in the district.
Chairman Murgatroyd stated the City has not been presented with any inclusion-types issues to
date.
Alderman Peterson stated a Special Recreation Tax levy of 2% would realize $120,000, which
would make up a considerable portion of the current vehicle sticker program revenue. City
Administrator Maxeiner noted funds generated by the levy could be used for limited purposes as
previously noted. City Administrator Maxeiner also noted the 4%EAV Special Recreational Tax
levy is not sub}ect to the tax cap.
Alderman Peterson suggested an increase in property taxes whieh could then be used for road
maintenance and repair. He opined a gasoline tax, which is basically a hidden tax, would be
more equitable as it would impact those who actually use the roadways. However, as pointed out
by City Administrator Maxeiner, a gasoline tax cannot be implemented unless or until the City
achieves Horne Rule status, i.e. 25,000 or more residents as determined by the U. S. Census
Bureau.
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Finance and Personnel Committee Meeting
November 7, 2005
Page 2
`" Chairman Murgatroyd a telephone tax to be implemented to fund a recreation center was
overwhelming voted down by City residents several years ago. He stated he is not in favor of
deleting the vehicle sticker program at this time. He further noted the public is generally not in
favor of new ta.xes. He would prefer to maintain the status quo.
Some discussiun occurred regazding the use of vehicle stickers as identification for use of the
Knox Park Drop Off Site in the annual yard waste program. Tt was suggested stickers be
provided to residents at no cost for identification purposes.
City Administiator M�einer noted if the City shifts from vehicle sticker program to a property
tax, the commerciaUbusiness entities in town would be burdened with an increase as weil as
re�idents. City Administrator Maxeiner stated a resident who has five vehicles and pays for five
vehicle stickers utilizes the City's roadways more than a resident who has ozlly one car and
purchases one sticker.
Mayar Low expressed concern that if the NISRA levy were implemented and the vehicle sticker
program dropped, the City would lose the ability to expend all of the levy raised for the purposes
specified. These funds could not be used to maintain and repair the City's roads. Concurring with
Mayor Low, City Administrator Maxeiner noted the use of vehicle sticker revenue is more
discretionary. There is always a road maintenance repair project which can be done to use those
funds. A Special Recreation Tax would be more difficult to find creative ways to spend.
�. Alderman Mur�atroyd opined the two taxes are too dissimilar. He stated he would prefer to trade
the vehicle stirker program for something more in line with a gasoline tax. Responding to an
inquiry, City A.dministrator Maxeiner stated a gasoline t� is a p��of sale t�, whereas motor
fuel tax is per capita.
It was the consensus of the committee to wait until the City achieves Home Rule status before
revisiting the viability of the vehicle sticker program.
Eaecutive Session: Personnel
Motion by Schaefer, seconded by Peterson, to go into Executive Session to discuss Personnel at
6:5$ p.m,
Voting Aye: Schaefer, Mur�atroyd, Peterson.
Voting i�Tay: None
Absent: None
Motion carried.
The Finance and Personnel Committee went into Executive Session at 6:58 p.m.
Motion by Peterson, seconded by Schaefer, to go back into Open Session at '7:07 p.m.
Voting Aye: Schaefer, Murgatroyd, Peterson.
Voting Vay: None.
Absent: None.
� Motion carried.
Finance and Personnel Cornmittee Meeting
November 7, 4005
Page 3
`' The Finance and Personnel Committee went back into Open Session at 7:07 p.m.
Motion by Peterson, seconded by Schaefer, to recommend to City Council that Assistant to City
Administrator pouglas Martin be promoted to Assistant City Administrator, grade 22, step 4
(currently $70,016).
Voting Aye: Schaefer, Murgatroyd, Peterson.
Voting Nay: None.
Absent None.
Motion carried.
Senior Bus Voucher Program
Deputy Clerk Kunzer summarized the current Senior Citizen PACE Voucher Program. Each
senior citizen is permitted four booklets of ten vouchers each per month. The recipient is
required to provide identification indicating City residency and senior citizen status. The voucher
booklets have been disbursed at both the Municipal Center reception counter and at the Senior
Center in the McHenry Township building on Richmond Road. The City of McHenry totally
funds the program. The City provides 100 booklets to the Senior Center for disbursement each
quarter, as the vouchers are printed quarterly in different colors.
Current abuse of the program has caused the City to question its viability. Patrons state they are
able to secure as many booklets as they desire from the Senior Center. �olunteers who provide
the voucher booklets at the Senior Center are not awaze of the McHenry city limit boundaries
`- and do no question the City residency of those who receive booklets
In addition, bus drivers recycle vouchers and provide "used" vouchers to those patrons who run
out before the end of the month. As the City is charged $.75 per voucher use, this could add up to
a considerable expense for the program. Ea.ch senior citizen is permitted 40 vouchers (four books
of ten each)which represents 40 trips which should be more than adequate.
Discussion followed regarding potential ways to increase the accountability of the program and
prevent abuse hy its users.
It was suggested a two-step process be initiated to inerease accountability:
1. City to write letter to the Senior Center advising of the difficulties cunently being
encountered in the program. City to request the Senior Center log all disbursement of
vouchers on the same form currently being utilized in the Clerk's Office. The Senior
Center would then provide the log to the City at the end of each month. The Senior
Center would also return unused voucher booklets at the conclusion of each quarter.
2. City to write letter to PACE requestin�the submittal of used vouchers for payment each
month. [t is hoped the requirement to return the used vouchers would prevent"recycling"
by bus ctrivers.
It was the consensus of the committee that if results are not forthcoming, review of the program
� would take plac:e with the possibility it could be terminated.
Finance and Personnel Committee Meeting
November 7, 2005
Page 4
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New Business
There was no�Vew Business.
Adiaurnment
Motion by Peterson, seconded by Schaefer, to adjourn the meeting at 7:24 p.m.
Voting Aye: Schaefer, Murgatroyd, Peterson.
Voting Nay: None.
Absent: None.
Motion carried.
Respectfuliy submitted,
�-.��'.�i� ,cv�.l _ .
Steven C. Murgatroyd, Chai an
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