HomeMy WebLinkAboutMinutes - 4/12/2005 - Finance and Personnel Committee FINANCE AND PERSONNEL COMMITTEE MEETING
Tuesday,April 12,2005
Aldermen's Conference Room, 7:00 p.m.
L-- In Attendance: Committee Members: Chairman Alderman Murgatroyd, Alderman Bolger
and Alderman Peterson. Absent: None. Also in Attendance: Mayor Low, City Administrator
Maxeiner, Assistant to Administrator Martin, Deputy Clerk Kunzer, Finance Director Kline.
Chairman Alderman Murgatroyd called the meeting to order at 7:00 p.m.
Continued Discussion: 2005/2006 Fiscal Year Bud�et
City Administrator Maxemer stated this evening's discussion would begin with the Water Sewer
Operating Fund. The committee would then review and discuss the remaining funds. It is Sta�s
expectation that should the committee approve the budget as presented a recommendation would
be made to Council for approval at the Annual Meeting on April 25�'.
Water Sewer Operating Fund—Water Division•
City Administrator Maxeiner provided a fund summary noting the fund would end up with a
reserve balance largely due to the Series 1993 Bond Maturity. When the 1993 bonds were issued,
the City was required to maintain an $800,000 bond fund reserve and a $300,000 depreciation
fund reserve. As the 1993 bonds mature in November of this year, the reserves are freed-up
enabling the City to project a positive reserve in the Water Sewer Operating Fund at year end.
City Administrator Maxeiner noted although the comfort level in the positive balance of the
Water Sewer Operating Fund is good for this coming year„ next year the City would likely be
looking at rate increases to keep the fund balanced. Current increases implemented as a result of
� annual CPI adjustments do not keep up with the cost of providing the service to the City's
customers.
City Administrator pointed out the 'h time plumbing inspector has been included in the water
division budget as discussed during the General Fund review last week. City Administrator
Maxeiner noted the plumbing inspector would implement an inspection program as dictated by
the IEPA as well as be trained to look for illegal sump pump connections to the City's sanitary
sewer system.
Some discussion occurred regarding the status of the McHenry Shores water system. Staff
opined the value of the system is solely based on the ability to sell water as the infrastructure of
the system is in very poor condition.
City Administrator Maxeiner stated the only other increase in the water division portion of the
fund, is the replacement of two vehicles and 'h the purchase of the plumbing inspector vehicle. In
response to Alderman Peterson's inquiry, City Administrator Maxeiner stated the utility
inventory atlas is required to deternune the exact locates of all City utilities, particularly the old
original lines. The atlas of the known utilities is cunently in both paper and electronic format.
The goal is to input the entire utility inventory electronically. The cost for contractual services to
accomplish this is estimated at $34,000.
Responding to inquiries regarding the high cost of materials and supplies, City Administrator
� Maxeiner stated these items have been padded considerably to account for unknown possible
repairs, replacements, etc. The cost of water meter replacement is actually proactive as the
program replaces old meters which may not be reading accurately, or which may cease operation
Finance and Personnel Committee Meeting
April 12, 2005
Page 2
entirely. City Administrator M�einer acknowledged padding of expenditures in the water sewer
`-- operating fund is actually volume driven.
Chairman Murgatroyd noted padding the expenditures in this account is done as a precautionary
measure. The water sewer operating fund is treated as a business and allowances must be made
for any/all eventualities.
Finance Director Kline stated as the water sewer operating fund is an enterprise fund, a budget is
not required. However, the City has always completed a budget for this fund.
Water Sewer Operatin�Fund— Sewer Division�
City Administrator M�einer reported due to the increased number of lift stations and increased
capacity of the treatment plants, the sewer division is requesting one additional employee. The
division is also requesting replacement of a pickup truck.
Carry over items from the 2004-2005 budget include Risk Management Compliance in the
amount of$7,000 and Central Plant Roof Replacement in the amount of$8,000.
CIP Prioritization Results:
City Administrator M�einer noted the results of the CIP Prioritization for the General Fund,
Water/Sewer Fund, Park Donation Fund, and Capital Development Fund have been included in
this evening's agenda packet. A brief discussion occurred regarding the priorities for each fund.
�, General Fund:
City Administrator M�einer stated Council's priorities are
l. Municipal Center Drive Extension(General Fund) $100,000
2. Radio System Upgades(Civil Defense Fund) $ 30,000
3. Civil Defense Sirens (Civil Defense Fund) $ 30,000
4. Street Resurfacing Program(1V�T Fund) $250,000
5. Whispering Oaks Walking Path(General Fund) $100,000.
A brief discussion followed regarding these items. It was the consensus of the committee to
reduce the expenditure of the Whispering Oaks Walking Path to $50,000 and to evaluate the
program prior to establishing progams for the next fiscal year. It was suggested the paths could
be reconfigured and the expense of refurbishing them thereby reduced.
Some discussion also occurred regarding the remaining items not deemed a priority for this fiscal
year. City Administrator Maxeiner stated the $350,000 requested allotment for the Route
120/Route 31 improvements would cover only the purchase of right-of-way . This project would
partially be funded by IDOT but not until 2009-2010. The projected IDOT contribution is $9
million. The total cost of this project in today's dollars is $12-$15 million.
Water/Sewer Fund:
City Administrator M�einer noted all renovations of existing water sewer infrastructure must be
paid for by user fees. Both projects proposed for this fiscal year, rehabilitation of Wells #2 and
� #3 and waster plant #2 flood proofing, would be paid for by fees earned this year at a total cost
of$95,000.
Park Donation Fund:
Finance and Personnel Committee Meeting
April 12, 2005
Page 3
At the suggestion of City Administrator M�einer, the committee deternuned to go forward with
`-- the first two items listed for the park donation fund:
1. Municipal C'enter Drive Main E�rtension $255,000
2. Playground Renovation $100,000.
The remaining three items would be re-prioritized following the completion of the Parks and
Recreation Needs Assessment Survey and implementation of the Parks Master Plan.
Capital Development Fund:
City Administrator Maxeiner stated the west side elevated storage tank #4 is needed at this time.
Well #13 is already being drilled although progress appears to be quite slow. In response to an
inquiry, City .Administrator Maxeiner stated he will inquire from Director of Public Works
Marcinko as to the need for the Farmstead Drive Main Extension at this time. Some questions
were raised as to the need for the e�ension to provide a loop for the water system. City
Administrator M�einer suggested the Pebble Creek Water Main Eatension be installed once
development of the Budreck Farm has been initiated. He noted a contribution could be sought
from the Budreck Farm developer for the Pebble Creek Water Main E�ension.
City Administrator Maxeiner provided the committee with a brief summary of the remaining
funds including the Band Fund, the Civil Defense Fund, the Audit Fund, the Bond Fund, the
Public Benefit Fund, the Project Assessment Fund, the Annexation Fund, the MFT Fund, the
Developer ponation Fund, the TIF Fund, and the Recreation Center Construction Fund.
`.. City Administrator Maxeiner noted the civil defense siren project would be closed out this year
in the Civil Defense Fund, the Public Benefit Fund would be closed out this year, and the Project
Assessment Fund would be closed out this year. The Developer ponation Fund is down due to
the reduced number of building permits being issued as the wastewater treatment plants cannot
handle additional capacity. The Recreation Center Construction Fund increases by approximately
$400,000 per year and the City's portion of the construction cost will be on hand when
construction is ready to begin.
Motion by Peterson, seconded by Bolger, to recommend to Council that the 2005-2006 Fiscal
Year Budget as prepared by Staff be approved as presented.
Voting Aye: Bolger, Murgatroyd, Peterson.
Voting Nay: None.
Absent: None.
Motion camed.
Adiournment
Motion by Peterson, seconded by Murgatroyd, to adjourn the meeting at 8:05 p.m.
Voting Aye: Bolger, Murgatroyd, Peterson.
Voting Nay: None.
Absent: None.
Motion carried.
.� Respectfully submitted,
�J� ��
Steven C. Murgatroyd, hai an