HomeMy WebLinkAboutMinutes - 4/6/2005 - Finance and Personnel Committee FINANCE AND PERSONNEL COMMITTEE MEETING
Tuesday,Apri16, 2005
Aldermen's Conference Room, 7:00 p.m.
`— 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.
Discussion: 2005/2006 Fiscal Year Budget
General Fund
City Administrator M�einer opened the discussion regarding the 2005/2006 Fiscal Year Budget,
noting a slight modification in the budget review process. He stated he had met with each of the
department heads prior to the creation of this year's tentative budget. Department requests were
reviewed, weighed, and amended in an effort to present a balanced budget to the Finance and
Personnel Committee.
City Administrator M�einer stated the General Fund is projected to be in the black pending
refunding of bond issues as described in his memorandum of April 6, 2005. Re-apportioned
carry-over items totaling $295,000 is shown as well.
Referencing the projected revenues for 2005/2006, City Administrator Maxeiner noted a
proposed increase in the amount of sales t� received. City Administrator M�einer also noted a
projected increase in telecommunications dispatch fees received as Nunda Township Fire
Protection District is seeking City dispatch services. Should Council approve an
�, intergovernmental agreement authorizing these services, additional revenue would be realized.
He noted this service would not create additional expenditures on the City's police department.
He reminded the committee, the City currently provides dispatch services pursuant to agreements
with the McHenry Township Fire Protection District, the Village of McCullom Lake, and the
Village of Johnsburg.
A brief discussion followed regarding various miscellaneous revenue sources. City
Administrator Maxeiner suggested sales tax revenue could increase due in part to the addition of
the Buick franchise and possible Saab franchise acquisitions at Gary Lang Auto Center. In
addition, the Staples office supply store will provide revenue and sales tax while diversifying the
City's commerciaUretail base.
City Administrator Maxeiner pointed out building permit fee revenues are down, largely due to
the diminished available capacity of sanitary sewer service. These amounts will continue to
decline until the south plant expansion is completed and ready for use.
City Administrator M�einer then went over each of the department's proposed budgets:
Administration O1
The administration department went through reorganization within the last year. The proposed
2005/2006 budget reflects the change from 13 to 5 full time employees. The reduction in
employees impacts across the board line items and results in a substantial overall reduction in
� department requests.
Finance and Personnel Committee Meeting
Apri16, 2005
Page 2
`- Elected Officials 02
The elected officials account also reflects the modification of City reorganization, particularly
with the reduction of the City Clerk's position from fulltime to part time. Additionally, the
budget includes an increase in the Mayor's salary and compensation as liquor commissioner, an
increase in the Treasurer's salary, and an increase in the number of Aldermen salaries. City
Administrator M�einer pointed out that while the Mayor served in both the capacity of Mayor
and Alderman Ward 3, she only received compensation as Mayor. Therefore, as a result of the
recent election, the City will once again be paying the salary of seven Aldermen after May 1�`.
Communitv Development 03�
The request for a 'h time plumbing inspector represents the only major change to the Community
Development Department budget. The position would be shared with Public Works Water
Division. Increa.ses in the Community Development Department budget include reconfiguring
the work place cubes to accommodate the increase in Staff. Community Development is also
seeking replacement of one vehicle plus authorization to purchase (shared with Public Works
Water Division) an additional vehicle for the Plumbing Inspector.
Finance(04�
The Finance Department reflects the reconfiguring which occurred during the past year. In
addition, the department is seeking an increase of six hours per week to a part time employee for
payroll functions.
�, City Administrator Maxeiner stated Staff has extensively researched the possibility of refunding
the Series 1997A and 2002 Bonds. If the bonds were refunded, the City would have more
flexibility now and realize immediate cash flow improvement. City Administrator Maxeiner
stated Staff is suggesting this option to free up cash in order to address the needs of the
community and to appropriately grow the City services. He noted the departmental requests for
increased Staff have been denied for several years, particularly in Public Works. At this point it
is imperative that the City increase personnel, replace old vehicles, and otherwise attempt to be
proactive in at least attempting to maintain the status quo.
A lengthy discussion followed regarding the advisability of refunding the bonds, and possible
alternative means of increasing City cash flow.
City Administrator Maxeiner stated if the bonds are not refunded, the City would have to deny
all requests to increase personnel, as well as other capital expenditures, in order to provide a
balanced budget. In response to an inquiry, City Administrator Maxeiner stated sales tax
revenues have not increased at the rate anticipated when the City set up the bond payment
schedules. As a result, payments due within the ne� three years will spike and reduce the City's
available cash flow. Refunding the bonds would eliminate this problem, but would e}rtend the
lifetime of the bonds at an overall increase at completion of approximately $1.5 million.
Basically, the C'ity is looking for more flexibility for the next three years versus flexibility at the
end of the term
� Chairman Murgatroyd suggested following recommendation to Council of budget approval, the
Committee could also recommend action regarding the refunding of the Series 1997A and 2002
Bonds.
Finance and Personnel Committee Meeting
Apri16, 2005
Page 3
�-- Police Commission 21
There were no changes in the Police Commission budget.
Police Department 22
City Administrator M�einer stated following discussion with Chief O'Meara, it was determined
the department would seek a third community service officer and an additional patrol officer.
The community services o�icers are able to assist with traffic directing, fingerprinting, and other
tasks, which do not require sworn personnel. By increasing the community service officers to
three, the sworn officers' time would be freed up to cover more enforcement and/or investigative
issues.
The department is seeking the purchase of six taser weapons. City Administrator Maxeiner noted
the weapons could be used by officers who would otherwise have to draw their guns. The taser
weapons would provide an additionaUalternative means of self-defense for the officers in the line
of duty.
Alderman Bolger left the meeting at 8:30 p.m.
A brief discussion occurred regarding the need to address traffic, speeding, stop sign violations,
etc. in the City. Alderman Peterson requested the City consider increasing the number of patrol
officers and to create a fulltime traffic officer. City Administrator Maxeiner stated Council
should communicate to Chief O'Meara that traffic violations are a priority. Chairman
� Murgatroyd suggested this matter be placed on the agenda for consideration at a future Finance
and Personnel Committee meeting.
Public Works Administration(30�
There were no major changes to the Public Works Administration budget.
Public Works Street Division(33�
The Street Division is seeking two additional maintenance workers. With the increase in City
streets over the past few years, the Street Division has been unable to keep up with snow plowing
during snow falls. The intent is to break the City streets into 18 routes in order to more
effectively keep up with plowing as well as other street maintenance.
The Street Division is also requesting the replacement of a 'h ton pickup, a 3/4 ton pickup, and
two dump trucks.
Public Works Building and Grounds(41�
The Building and Grounds Division is seeking replacement of its 3/4 ton pickup truck. City
Administrator Maxeiner noted the $110,000 Building Improvement line item is for unexpected
repairs/improvements which could be needed throughout the municipal building.
Pa.rks and Recreation Department (41�
The Parks and Recreation Department has requested an additional maintenance worker. Noting
� the increase in City parklands over the past few years, the request is reasonable. City
Administrator Maxeiner stated there are no other significant increases in the department budget.
Finance and Personnel Committee Meeting
April 6, 2005
Page 4
`-- City Administrator Maxeiner reminded the committee budget discussions would continue on
Tuesday, April 12, 2005 at 7 p.m. The remainder of the funds would be reviewed and discussed
at that time.
Adiournment
Motion by Peterson, seconded by Murgatroyd, to adjourn the meeting at 9:05 p.m.
Voting Aye: Murgatroyd, Peterson.
Voting Nay: None.
Absent: Bolger.
Motion carried.
Respectfully submitted,
J �
Steven C. Murgatroyd, Chai an
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