HomeMy WebLinkAboutMinutes - 4/15/2004 - Finance and Personnel Committee FINANCE AND PERSONNEL COMMITTEE MEETING
Thursday,April 15, 2004
Aldermen's Conference Room, 7:30 p.m.
`•• In Attendan��e: Committee Members: Chairman Alderman Murgatroyd and Alderman
Peterson. Absent: Alderman Bolger. Also in Attendance: Mayor Low, Administrator Maxeiner,
Assistant Adrninistrator Lockerby, Director of Finance Kline, City Clerk Jones.
Chairman Alcierman Murgatroyd called the meeting to order at 7:30 p.m.
Discussion Re�arding 2004/2005 Fiscal Year Bud�et—Water/Sewer
And Miscellaneous Funds
Chairman Margatroyd announced the Committee would continue discussions regarding the
Fiscal Year �004/2005 Budget, focusing primarily on funds other than the General Fund. He
turned the meeting over to City Administrator Maxeiner.
City Administrator Maxeiner stated a close look would be necessary regarding the following
funds:
• Sewer and Water Operating Fund
• Capital Improvement Fund
• Utility Improvement Fund
City Administrator Maxeiner informed the Committee that in order to address the deficit in the
Water/Sewer Fund Staff is suggesting a rate increase of 9¢ per 1,000 gallons of water and 14¢
per 1,000 gallons of sewage. He noted Staff has estimated a bill for a resident utilizing 13,500
per billing cycle would be approximately $62.18 per billing cycle as compared to the current
� estimate of$59.87, realizing a difference of$2.31 per billing cycle. If the suggested increase
was adopted, the City of McHenry would remain mid-range in the ranking of eleven surrounding
municipalities regarding water/sewer rates.
Chairman Alderman Murgatroyd opined the Water/Sewer Fund, up until the last five years, has
not been reviewed and an increase is timely.
City Administrator Maxeiner stated Staff would be seeking direction from Council regarding
preparation of ordinances adopting the proposed rate increases.
He noted recommended adjustments would be discussed for a number of revenue and
expenditure items, stating Staff would be seeking an overall recommendation on the budget
request from the Committee for submission to full Council at the April 26, 2004 Annual
Meeting.
City Administrator Maxeiner stated there are three internal service Funds:
• Risk Management Fund
• Information Technology Fund
• Employee Insurance Fund
City Adtninistrator Maxeiner noted 92% of the Risk Management Fund was marked for
MCMRMA. He informed the Committee that quotes are being sought for year 2005/2006.
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Finance and Personnel Committee Meeting
April 15, 2004
Page 2
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City Adminisrrator Maxeiner provided an overview of the following non-operating Funds:
• Band Fund
• Civil I)efense Fund
o Primarily for warning sirens
• Audit Fund
o Significant increase in this fund is due to implementation of GASB 34
• Public Benefit Fund
• Annexation Fund
o Primary funding source for non-water/sewer capital projects this fiscal year
• Motor Fuel Tax (MF'T)Fund
o Significant amount of this fund utilized for debt service, snow and ice control and
any contingency projects
• Developer ponation Fund
• Park Donation Fund
o Money acquired through new development used to fund park and playground
improvements
� Recreation Center Construction Fund
• Tax Increment Financing (TIF)Fund
o Set aside to record T'IF receipts
• Debt Service Fund
o Set aside for payment of long term debt, other than water/sewer
�"" � Bond and Interest Fund
o Water Service Projects
o Long term debt
• Bond Reserve Fund
o Guarantee on bonds
• Depreciation Reserve Fund
o Guarantee on bonds
• Special Service Area#lA Fund
o Set aside for payment of tr�c signal at Shamrock Lane and State Route 3 l.
• Capital Improvement Fund
o Four priority projects:
■ Parking facility for Public Works Department
■ Tr�c signal at Ridgeview and Bull Valley Road
■ Civil defense sirens
• Radio infrastructure improvements
• Proprietary Fund
City Administrator Maxeiner noted two Capital Improvement Projects would be funded by the
Water/Sewer Fund:
o Renovation of Water Plant No. 1; and
o Central Waste Water Treatment Plant Improvements
`'" It was noted that the January 2004 Sales Tax Receipts were nearly 6% higher than in January
2003. A rebounding economy and additional revenue from retail establishments was credited for
the increase. A brief discussion ensued.
Finance and Personnel Committee Meeting
April 15, 2004
Page 3
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Motion by Peterson, seconded by Murgatroyd, to recommend the Budget for Fiscal Year
2004/2005 be brought before Council for consideration at the April 26, 2004 Annual Meeting,
with conditio�ial approval on specific budget items subject to Council approval.
Aye: Murgatroyd, Peterson.
Nay: None.
Absent: Bolger.
Motion carried.
Motion by Peterson, seconded by Murgatroyd, to recommend an increase in water/sewer
rates, with an implementation date of July 1, 2004, be brought before Council for consideration
at the April 26, 2004 Annual Meeting as follows:
• 9¢ per 1,000 gallons of water; and
• 14¢ per 1,000 gallons of sewage.
Aye: Murgatroyd, Peterson.
Nay: None.
Absent: Bolger.
Motion carried.
Adiournment
� Motion by Peterson, seconded by Mur�atroyd, to adjourn the meeting at 9:10 p.m.
Aye: Murgatroyd, Peterson.
Nay: None.
Absent: Bolger.
Motion carried.
Respectfully submitted,
C.
Steven C. Murgatroyd, Ch rman
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