HomeMy WebLinkAboutMinutes - 3/30/2004 - Finance and Personnel Committee � FINANCE AND PERSONNEL COMMITTEE MEETING
. Tuesday,March 30,2004
Aldermen's Conference Room, 7:30 p.m.
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In Attendance: Committee Members: Chairman Alderman Murgatroyd, Alderman
Bolger, Alderman Peterson. Also in Attendance: Administrator Maxeiner, Assistant
Administrator Lockerby, Director of Finance Kline, City Clerk Jones,Alderman Glab.
Chairman Alderman Murgatroyd called the meeting to order at 7:34 p.m.
Discussion Re�arding 2004/2005 Fiscal Year Budget
Chairtnan Murgatroyd stated tonight the Committee would be reviewing the General Fu.nd
Budget, as presented, with suggestions from Staff.
City Administrator Maxeiner informed the Committee that the original General Fund budget
requests submitted by the department heads amounted to approximately $16.8 million dollars,
representing a�l increase of $3.5 million over the prior year. He noted the original revenue
estimate was approximately $13.3 million, leaving a budget deficit of$3.4 million in the initial
budget request. Staff has taken a close look at both revenue and expenditure requests and
proposes a number of adjustrnents regarding requested expenditures.
Responding to Alderman Bolger's inquiry, City Administrator M�einer sta.ted the reserve
remains at 33%. City Administrator M�einer provided an explanation to Alderman Peterson
regarding the reserve.
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City Administrator Maxeiner indicated the original estimate for General Fund revenues
portrayed weal: sales and income tax revenues, based upon nine-month year-to-date receipts. He
noted while the outlook has not changed significantly, with the addition of data from the month
of February 2004, Staff is comfortable recommending an increase of$160,000 for those two line
items. City .Administrator Maxeiner stated with additional recommendations in place for
modifications on a number of other General Fund revenue line items, Staff is requesting a
General Fund revenue budget of$13,651,276, an increase of$353,585 over the original estimate.
City Administrator Maxeiner stated, if the revenue and expenditure adjustments presented by
Staff are approved by the Council, a budget deficit of $476,725 remains after eliminating re-
appropriations. City Administrator Maxeiner informed the Committee they might want to
consider addressing the deficit through utilization of reserves or a planned cut in service levels.
He noted it is Staf�s opinion that any further cuts would impact current service levels. At this
time, Staff is not recommending implementation of any new tax or fee mechanisms.
City Administrator Maxeiner responded to Alderman Peterson's inquiries regarding income
derived from Room Rental and Rental Property Income.
Responding to Alderman Bolger's inquiry, City Administrator M�einer sta.ted it appears Federal
and State Grants have been depleted.
� City Administrator Maxeiner informed the Committee that the cost of Illinois Municipal
Retirement Fund (IMRF) has increased this year by 24% and health insurance costs have
increased by 8%.
Finance and Personnel Committee Meeting
1V�arch 30, 2004
Page 2
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City Administrator Maxeiner informed the Committee that this is the first year the Finance
Department has been separated out of the Administrative Budget.
City Administrator Maxeiner, indicating that each line item would not be discussed individually,
summarized the recommended adjustments to the following budgets:
Administrator '�
4010 The line item for Temporary Empl�yees will be eliminated as it has become unnecessary
to employ the services of temporar,�,the last few years.
6940 Affected residents have indicated a reluctance to utilize the City's assistance regarding
installation of overhead sewer systems;therefore this line item will be reduced.
9942 This line item will be transferred to the Capital Improvement Fund.
• Seeking alternative funding
o It appears this line item could be funded through discretionary Annexation
Fund money.
Elected Officials
City Administrator Maxeiner noted only minor adjustments were made to this Department's
budget.
Communi Development
\.- City Administrator Maxeiner stated two additional employees were requested in the 2004/2005
budget;however,there are insufficient funds to accommodate the request.
Staff suggests the addition of one (1) building inspector, as the current inspectors are performing
20-25 inspections per day, while the industry target is 8-13 inspections per day. City
Administrator Maxeiner noted the department is still meeting the 2-week turnaround and
inspections performed by an outside agency is an available option to developers.
City Administrator Maxeiner indicated the addition of an Inspector 2, at a starting salary of
approximately $40,000 annually, would add approximately $58,000 to the department's budget.
This amount would include both the salary and benefits.
Alderman Glab opined he would support a shared position with the individual performing 50%
of the duties as an inspector and 50%as a code enforcement officer.
9922 Request for building permit software. Staff is recommending postponement pending
further investigation regarding utilization.
Finance Department
5110 Special Census Estimate. City Administrator Maxeiner noted this line item was
duplicated in the Administrator Budget and would be eliminated as a line item for
Contractual Services in the Finance Department Budget.
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Police
City Administrator Maxeiner stated the Police Department Budget is currently one of the two
largest budgets the City deals with each year.
Finanoe and Personnel Committee Meeting
March 30, 2004
Page 3
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City Administrator Maxeiner noted five new positions have been requested:
1 Community Service Office (CSO)
2 Sergeants
2 PatrolOfficers
Staff suggests elimination of the CSO and two patrol officers from this year's budget. Currently
there are five (5) sergeants on Staff and Chief suggests, due to the number of relatively
inexperienced officers on the force, that two (2) sergeants on each shift would be beneficial. He
noted there are 20 patrol officers with less that 5 years experience and only 7 with greater than
13 years of experience.
He infortned the Committee the cost of two sergeants would be approximately $190,000 per
year, which included salary and benefits. The net cost would be approximately $81,000, due to
elimination of a position with the pending retirement of the current Communications Supervisor
and the promotion to sergeant of a qualified candidate.
City Administrator Maxeiner answered numerous questions from Alderman Peterson regarding
various line items.
�.. Public Works -Administration
City Administrator Maxeiner informed the Committee of Director Marcinko's request for three
positions, a Project Manager, which would be promoted from within and two engineering
inspectors. Staff suggests elimination of all three requests.
Public Works - Streets
City Administrator Maxeiner informed the Committee of Director Marcinko's request for five
maintenance workers as follows:
- 1 worker with an electrical background;
- 3 street maintenance workers; and
- 1 JLJLIE locate worker
Staff suggests elimination of all five requests, recommending the JULIE locate worker could be
paid for out of the Water/Sewer Fund as a requirement of the cost of doing business.
Public Works—Building and Grounds
City Administrator M�einer informed the Committee that Director Marcinko has rnade a
request for a building and grounds crew leader. Sta.ff suggests elimination from the budget of the
request.
Parks and Recreation
City Administrator Maaceiner stated there were no new employee requests from the Director of
Parks and Recreation. However, Director Merkel has requested a reclassification of the Athletic
� Supervisor position to that of Recreation Superintendent. Staff indicated there is currentiy no
support regarding this reclassification.
Finance and Personnel Committee Meeting
March 30,2004
Page 4
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City Administrator Maxeiner informed the Committee that Staff has been able to reduce the
requested budget by$2.4 million. He noted a deficit of$476,000 currently remains.
To increase future revenues StafFproposes the following:
1. Looking into financial advice regarding restructuring of debt;
2. Finalization of the Special Census. Staff anticipates an additional $200,000 per year in
revenues beginning in 2005;
3. Review possible increase in all city fees including user fees for Parks and Recreation
Department and permidinspection fees in the Community Development Department.;
4. Possible increase in dispatch fees.
Staff proposes the Committee consider the following options to address the current deficit:
1. Utilize a portion of the reserve;
2. Hold off on Capital purchases for three to six months;
3. Cut additional capital purchases, services or positions;
4. Implement new ta��es
City Administrator Maxeiner noted that following numerous discussions he, Assistant City
Administrator Lockerby and Director of Finance Kline recommend the following in order of
preference:
1. Utilize reserves for the current shortfall;
\... 2. Examine alternative funding options;
3. Assess user fees during the Summer 2004;
4. Freeze Capital purchases; and
5. Finalize the Special Census.
Alderman Bolger opined exploring the possibility of refinancing bonds seems a worthwhile
option.
Chairman Alderman Murgatroyd stated he supports utilizing a portion of the reserves, on a one-
time only basis,to cover the deficit.
Alderman Glab suggested further adjustments to the budget.
Chairman Alderman Murgatroyd reminded the Committee of the Finance and Personnel
Committee meeting, scheduled on April 15, 2004 in the Aldermen's Conference Room at 7:30
p.m. at which time the remaining Funds would be discussed.
Adiournment
Motion by Bolger, seconded by Peterson,to adjourn the meeting at 9:55 p.m.
All ayes. Motion carried.
Respectfully submitted,
�... � �r �
Steven C. Murgatroyd, hairm