HomeMy WebLinkAboutMinutes - 7/19/2004 - Finance and Personnel Committee FINANCE AND PERSONNEL COMMITTEE MEETING
Monday, July 19, 2004
Aldermen's Conference Room, 6:30 p.m.
�, In Attendance: Committee Members: Chairman Alderman Murgatroyd, Alderman Bolger
and Alderman Peterson. Absent: None. Also in Attendance: City Administrator Maxeiner,
Assistant City Administrator Lockerby, Director of Finance Kline, City Clerk Jones.
Chairman Alderman Murgatroyd called the meeting to order at 6:30 p.m.
Discussion Re�arding Sewer User Rates
City Administrator M�einer informed the Committee that during the budget process
Staff identified an operating shortfall of approximately $300,000 in the Water/Sewer Fund for
fiscal year 2004/2005. At that time Staff proposed a rate increase to o�set half of the operating
deficit, which would have resulted in a rate increase of $0.09 per 1,000 gallons of water
consumed and $0.14 per 1,000 gallons for sewer. The Council endorsed the rate increase and
Staff prepared the Ordinance increasing the rates, effective July 1, 2004.
While reviewing the existing ordinance it was discovered that the way the ordinance is
written and the way it has been implemented are not consistent. The discrepancy concerns the
fixed and variable debt service charges for sewer. The fixed rate was set at $3.00 per account per
month, which amounts to $6.00 per billing cycle. The fixed rate was implemented in 1990 and
continues to generate approximately $300,000 annually to be applied toward debt service. The
variable debt service rate was set at $0.35 per 1,000 gallons but was never included in the billing
calculations for metered accounts. Consequently, metered accounts have been under billed for
the past 14 years.
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Staff recommends the cunent rate structure should be correctly implemented prior to
consideration of any rate increase. Based upon the calculation of$0.35 per 1,000 gallons it is
thought that implementation of the ordinance as written would generate revenue to be applied to
debt service. City Administrator Maxeiner noted it is likely an additional increase would still be
necessary in the future.
City Administrator Maxeiner stated Staff is seeking direction from the Committee on
how to move forward.
Chairman Alderman Murgatroyd opined he supports implementation of the method
currently on the books rather than establishing a new rate increase.
Alderman Bolger suggested September 1, 2004 as the date for implementation of the
variable debt service charges. Alderman Peterson opined the charges should be implemented as
soon as possible. A brief discussion ensued.
It was the consensus of the Committee to implement the variable debt service rate at
$0.35 per 1,Oc)0 gallons as soon as administratively feasible.
Discussion Regarding Non-Sufficient Funds (Returned Check)Fee
And Ordinance Review
� Director of Finance Kline informed the Committee that Staff has reviewed the fees and
language in the Municipal Code and recommends the following changes:
• Fee for Non-Sufficient Fund Charges
o Recommendation to increase the fee from $15.00 per item to $25.00 per item
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July 19, 2004
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• Fee for Turn-On/Turn-Off
o Recommendation to increase the fee from $20.00 to $70.00 during normal
business hours and $50.00 to $100.00 during off hours.
• Retained Personnel
o Recommendation to increase the initial deposit from $250.00 to $500.00
• Update the language regarding utility billing to accurately reflect billing cycles.
Direct�r Kline noted the volume for NSF checks has historically been low, approximately
85 to 90 per year, encompassing all departments. She stated the proposed adjustment reflects an
increase in the overall cost charged to the City by the bank.
Director Kline stated that in accordance with the ordinance the water supply might be
shut off for n�n-payment after 30-days notice. Staff is requesting an increase in the turn-on/turn-
off fee to recoup some of the expenses attributable to the process for labor and materials.
Director Kline informed the Committee that Retained Personnel Deposits covers the need
for professional services relative to zoning requests. While the cost of services has increased the
amount of deposit required has not increased in many years.
Director Kline stated the language within the utility billing ordinance assumes that the
City is still billing only certain months of the year. In order to correctly reflect the City's
\.• scheduled two-cycle billing the language is being updated. Previously the City billed every
account on the same bi-monthly billing cycle. The process was modified in 2002 and the City
now bills approximately half of the accounts each month. In order to properly reflect the billing
cycle Staff recommends the language be revised to remove reference to the billing months.
Motion by Bolger, seconded by Peterson, to recommend the following changes to the
Municipal Code to Council:
• Fee for Non-Sufficient Fund Charges
o Increase the fee from $15.00 per item to $25.00 per item
• Fee for Turn-On/Turn-Off
o Increase the fee from $20.00 to $70.00 during normal business hours and $50.00
to $100.00 during off hours.
• Retained Personnel
o Increase the initial deposit from $250.00 to $500.00
• Update the language regarding utility billing to accurately reflect billing cycles.
Aye: Murgatroyd, Bolger, Peterson.
Nay: None.
Absent: None.
Motion carried.
BankinQ Services Agreement
`,., Director Kline informed the Committee that the last banking services selection process
was brought before Council in 2001. It has been the policy of the City to regularly review
banking services, historically every three to five years. The current banking service agreement
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July 19, 2004
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expired May 31, 2004. Pursuant to the City's policy regarding regular review City Treasurer
Welter and Sts�ff are preparing to conduct a competitive review process for the selection of the
institution whi;,h would handle the City's banking services.
Director Kline noted that in order to best service the needs of the community three items
have been added to this review process:
• ATM services;
• Credit card services; and
• Procurement card for the City's purchasing process.
Director Kline stated information had been obtained previously by Director of Public
Works Marcinko regarding possible placement of an Automated Teller Machine in the lobby of
the Police Department. Director Kline noted the lowest fee quoted was in excess of $600
resulting in the postponement of installation pending further research. Director Kline added with
the increased interdependence with the Internet, expansion of the permitted use of credit card
services is deemed beneficial. Also, in order to streamline the purchasing process, a review of
opportunities available for a procurement card program would be included in the request for
information.
Director Kline stated that following receipt of the completed requests for information
from the banking institutions an interview schedule would be developed to meet with the
� representatives interested in providing services to the City. The institutions will be evaluated
based upon the following criteria:
• Strength of financial assets;
• Services offered;
• Experience of the service team;
• Long-term stability of the institution in the area; and
• Cost of service to the City.
Director Kline informed the Committee that the interview board would likely consist of
Treasurer Welter, Assistant City Administrator Lockerby and herself.
Staff is requesting the Committee's recommendation to Council authorizing issuance of
the request for information to banking institutions and to conduct interviews with the interested
institutions. Director Kline stated a recommendation for award would be brought before Council
for consideration.
Motion by Bolger, seconded by Peterson, to recommend Council authorize the issuance
by Staff of a Request for Information to financial institutions interested in providing banking
services to the City of McHenry and authorizing Staff to conduct interviews with representatives
of the interested institutions.
Aye: Murgatroyd, Bolger, Peterson.
Nay: None.
`., Absent: None.
Motion carried.
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July 19, 2004
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Trev and Tom Corporation Lease Review
City Administrator Maxeiner informed the Committee that Trey Covalt, owner of Main
Street Station, has a lease with the City of McHenry for the property located at 4005 West Main
Street. Mr. Covalt has requested the Finance and Personnel Committee review the terms of the
lease, as the monthly lease amount has recently been substantially increased.
It was the consensus of the Committee to review and discuss the Trey and Tom
Corporation Lease at the Finance and Personnel Committee meeting scheduled on August 16,
2004 at 6:30 p m. in the Aldermen's Conference Room.
NISRA Taz Le�
City Administrator Maxeiner briefly summarized and explained the 1�]ISRA Tax Levy to
the committee.
It was the consensus of the Committee to discuss further the topic of the NISRA Tax
Levy at the Finance and Personnel Committee meeting scheduled on August 16, 2004 at 6:30
p.m. in the Aldermen's Conference Room.
Adjournment
Motion by Peterson, seconded by Bolger, to adjourn the meeting at 7:26 p.m.
� Aye: Murgatroyd, Bolger, Peterson.
Nay: None.
Absent: None.
Motion carried.
Respectfully submitted,
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Steven C. Murgatroyd, Chair n
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