HomeMy WebLinkAboutMinutes - 10/20/2003 - Finance and Personnel Committee FINANCE AND PERSONNEL COMMITTEE MEETING
Monday,October 20,2003
- Aldermen Conference Room,6:30 p.m.
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In Attendance: Committee Members: Chairman Alderman Murgatroyd, Alderman Bolger, Alderman
Peterson. Also in Attendance: City Administrator Maxeiner, Assistant City Administrator Lockerby, Director
of Finance Kline, City Clerk Jones,John Eder of Eder Casella&Co. and Shelly Casella of Eder Casella& Co.
Mayor Low arrived at 6:50 p.m.
City Attorney McArdle arrived at 7:09 p.m.
Chairman Alderman I�lurgatroyd called the meeting to order at 6:30 p.m.
. Report Regardin�City of McHenry 2003 Audit
John Eder of F,der Casella provided a summary to the Committee of the Independent Auditor's Report
dated April 30, 2003. He stated the audit was conducted in accordance with the auditing standards generally � �
accepted in the United States of America and the standards applicable to financial audits contained in
Government Auditing Standards. The standards require that the audit obtain reasonable assurance about
whether the general purpose financial statements are free of material misstatement. He stated an audit includes
examining evidence supporting the amounts and disclosures in the general purpose financial statements. It also
includes assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall general purpose financial statement presentation.
Mr. Eder stated in the opinion of Eder Casella& Co. the financial position of the City of McHenry, as of
�pril 30, 2003, and the results of its operations and the cash flows of it proprietary fund types and
nonexpendable trust funds for the year then ended in conformity with accounting principles generally accepted.
Mr. Eder informed the Committee that in accordance with Govemment Auditing Standazds, Eder
Casella & Co. issued a report dated June 13, 2003 regarding the City of McHenry's internal control over
financial report and its compliance with certain provisions of the laws, regulations, contracts and grants. He
noted the report is an integral part of the audit and should be read in conjunction with the report in considering
the results.
Mr. Eder stated the audit went well and complimented Senior Accountant Maniar regarding the
condition of the records.
Mr. Eder introduced his partner, Shelly Casella. He stated she would be explaining GASB 34.
Mayor Low arrived at 6:50 p.m.
Report Regarding Governmental Accounting Standards Board Statement No 34
GASB 34
Ms. Casella explained that beginning with the fiscal year ending April 30, 2004, Governmental
Accounting Standards Boazd ("GASB") Statement No. 34 would be effective for the City of McHenry. T'he
Illinois Comptroller's Office had indicated that implementation of GASB Statement No. 34 is required. GASB
� �.tement 34 establishes a new financial reporting model for governmental units. The establishment of the new
�-porting model creates a more consistent format of reporting from government to government. It also makes
governmental financial statements more similaz to business financial statements. Ms. Casella stated that the
basic purpose of GASB 34 is to provide a more understandable and useful financial reporting method to a wider
range of users than the previous model.
Finance and Personnel Committee Meeting
October 20, 2003
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Ms. Casella st�ited the implementation of GASB 34 would require some significant changes, such as:
• Changes to the fund structure
• Changes in the number of funds;
• Accounting for capital assets and depreciation of those assets;
• Writing a new section called Management Discussion and Analysis
• Changes to the format of the financial statements;
• Additional fin�tncial statements and note disclosures; and
• Changes to the budget.
Ms. Casella suggested planning for the implementation should begin as soon as possible as there would
be changes that would need to be made well before the year begins. , .
Cha.irman Alderman Murgatroyd thanked Mr. Eder and Ms. Casella for their concise reports.
City Administrator Maxeiner noted Eder Casella& Co began employment with the CiTy of McHenry in
1999 and has guided the City through difficult financial periods. He encouraged the Committee to support
moving forward with another 3-year contract with the accounting firm of Eder Casella& Co.
Discussion Regarding Citv C1erWCollector Position
`„ City Administrator Maxeiner noted at the most recent Finance and Personnel Committee meeting held
on September 29, 2003, consensus was reached regarding the separation of the City Clerk/Collector position
however the Committee tabled the discussion regarding the future of the City Clerk position pending
prepazation of a job description covering the duties of the City Clerk for the proposed part-time position.
City Administrator Maxeiner outlined the proposed job description for the City Clerk have been
delineated as follows:
• Keeper of the City Seal
• Maintain City Records and Documents
• Serve as Local Election Authority for Municipal Elections
• Document the Proceedings for all Meetings of the Corporate Authority
.• Oversee the Quarterly Production of the City Newsletter
• Administrative Duties for the City Clerk's Office
He noted a proposed revised job description has also been prepared for the Deputy Clerk to reflect the
removal of the Collector's duties from the City Clerk's domain. He stated duties associated with the Collector
position would fall under the responsibility of the Finance Director.
City Administrator M�einer outlined the structure of compensation as expressed by the Committee
based predicated upon Chairman Alderman Murgatroyd suggestion for a part-time City Clerk of:
• $400.00 per month salary, plus a per diem of$75.00 for each meeting attended; or
• A flat dollaz amount annual salary.
�ty Attorney McArdle arrived at 7:09 p.m.
Finance and Personnel Committee Meeting
October 20, 2003
Page 3
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City Administrator Maxeiner stated based upon a monthly salary of $400 ($4,800 annually), with an
additional stipend of$75 per meeting, based upon 41 anticipated meetings per yeaz (36 regular meetings, one
annual meeting and four committees of the whole), the Clerk would make an additional $3,075 for a total of
$7,875. Should the (:lerk provide coverage for Committee meetings as well, approximately 25 additional
meetings would generate $1,875, for a total of$9,750 annually.
Alderman Peterson had numerous questions about the City Clerk's proposed job description.
City Attorney McArdle arrived at 7:00 p.m.
City Attorney McArdle stated the City Clerk position performs a statutory requirement throughout most
of McHenry County and Lake County. He stated while it is no reflection on the incumbent, nor any
predecessor, the independent elected position reduces accountability to the Mayor, Council and City � �
Administrator and could be mismanaged. He opined it is in the best interest of the City's that the
Administrative body of the municipality control the position of City Clerk.
Mayor Low departed at 7:21 p.m.
Chairman Alderman Murgatroyd requested a motion if the Committee is comfortable with StafPs
proposal.
`"' Motion by Peterson, secor�ded by Bolger modifying the City Clerk's position from, a full-time to a part-
time position with the following compensation:
• $400.00 per month salary plus a per diem of$75.00 for each City Council meeting attended.
All ayes. Motion carried.
Personnel Policv and Procedures Manual
Assistant City Administrator Lockerby informed the Committee that Staff is reviewing and updating the
Personnel Policy and Procedures Manual and is interested in identifying any issued Council would like to revise
or modify. He noted some of the issues already identified are:
�• Concerns regarding the current Uniform/Clothing Allowance
� Vacation Accruals
• General Clean up in an effort to mirror the Collective Baxgaining Agreement.
Assistant City Administrator Lockerby stated a comprehensive review of the Manual would be
presented at a future meeting for discussion and direction.
Alderman Bolger opined it is an unnecessary expense for the City Attorney to attend every Council
meeting.
New Business
� :re was no new business.
Finance and Personnel Committee Meeting
October 20, 2003
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Adiournment
Motion by Bolger, seccnded by Peterson, to adjourn the meeting at 7:30 p.m.
All ayes. Motion carrie�3.
Respectfully submitted.
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Steven C. Murgatroyd, air an
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