HomeMy WebLinkAboutMinutes - 2/3/2003 - Finance and Personnel Committee FINANCE AND PERSONNEL COMMITTEE 1VIEETING
Monday,February 3, 2003
Aldermen Conference Room, 6:30 p.m.
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In Attendance: Committee Members: Alderman Bolger, Alderman Low, Alderrnan Murgatroyd. Also in
Attendance: Mayor .Althoff, City Administrator Maxeiner, Assistant City Administrator Lockerby and City
Clerk Jones.
Also in attendance: John Eder of Eder, Casella and Company
Chairman Alderman Murgaxroyd called the meeting to order at 6:33 p.m.
Review and Discuss Fiscal Year 2001/2002�udit
Chairman Murgatroyd introduced John Eder of accounting firm Eder, Casella and Company. Mr. Eder
summarized the 2001/2002 Fiscal Year Audit, conducted in accordance with Government Auditing Standards.
He stated the City of McHenry continues to use sound financial management practices and complies with
financial reporting guidelines. Mr. Eder complimented Senior Accountant Bijal Maniar noting her grasp of the
details of municipal accounting work is excellent.
Responding to Alderman Bolger's inqairy regarding the excessive cost of the Police Pension Fund
actuarial services, 1�'fr. Eder responded actuarial services are highly specialized and the work e�remely
complicated.
Mr. Eder noted the following observations and recommendations:
• The City has no formal documented accounting policy and procedures manual. It was recommended a
� manual be prepared detailing the job requirements of each employee and each function in the Finance
Department, including any changes in soflware and accounting procedures.
• The liability account Due to Developers in the Development Escrow Fund should be reconciled. The
information for the account does not coincide with the General Ledger balance.
City Administrator M�einer stated Senior Accountant Maniar is currently in the process of reconciling
the Development Escrow Fund.
Mr. Eder apprised the Committee of a new required format for audit reporting entitled GASB 34, which
will be implemented in 2004.
Discussion Regarding Staff Authoritv to Grant or Withhold Merit
Increases for Non-Department Head Personnel
City Administrator Maxeiner informed the Committee the Compensation Study completed in November
2001 emphasizes mure utilization of inerit based step increases to foster acknowledgement of exemplary
performance in the workforce. He stated Staff is seeking authorization to administer merit based step increases
for non-contract employees, as well as authorization to withhold steps for employees e�ibiting deficient
performance.
City Administrator M�einer noted implementing steps in this manner allows for rimely administration
of inerit based pay-for-performance and can also serve as a useful management tool encouraging exempla.ry
performance. Responding to Alderman Bolger's inquiry, City Administra.tor Ma�ceiner stated he is directly
wolved with the performance appraisal process.
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Finance and Personnel Committee Meeting
February 3, 2003
Page 2
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Alderman Bolger opined his support of Staff having the authority to grant or withhold merit increases to
non-department head personnel. Alderman Low concurred with Alderman Bolger.
Motion by Bolger, seconded by Low, to recommend to Council authorizing the City Administrator to
administer the merit-based step component of the compensation plan which may include the granting of an
additional step to an exemplary employee or the withholding of steps from employees receiving an
unsatisfactory performance appraisal. The committee also recommended that the Personnel Policies and
Procedures Manual be altered to reflect this authority. All ayes. Motion camed.
Citv Policv Regardin�Pro�ertv Tag Auaeals
City Administrator Maxeiner stated Staff is seeking direction regarding how to proceed when
responding to appeals of property tax assessments. Staff is suggesting a set of guidelines be established to
determine which appeals to challenge and which to ignore.
City Administrator Maxeiner informed the Committee in the last few months a number of notices have
been received from townships regarding property owners challenging their assessments. The City's property
tax revenues are directly impacted by the assessed value of property. Therefore, a reduction of property
assessments correlates to a reduction in property taxes received. In the past, following receipt of the Notice, the
City Administrator, �ia the Friday Report, advises Council of the challenge. The Council, in turn, directs the
City Administrator to file an objection, or not. A response from the City is typically requiured within 10-days of
the date of the notice. The current procedure does not provide sufficient time to review and discuss the matter
�rior to the deadline for response.
City Administrator Maxeiner noted if a set of guidelines were provided regarding when ta object to or
disregard a challenge, a response could be provided to the townships and county in a timely fashion. Two
suggestions were posed:
1. Respond to every request for reduction in assessed value for property assessed at a certain level (e.g.,
$300,000, or more), or
2. The actual requested change triggers a response(e.g., over$100,000 of assessed value).
Responding to Alderman Bolger's inquiry, City Administrator Maxeiner stated he would research the
number of persons on the appeals panel and provide the Committee with additional information.
City Administrator M�einer stateti the information was provided for consideration only. He is
requesting no action at this time.
New Business
There was no new business.
Adjournment
Motion by Bolger, seconded by Low, to adjourn the meeting at 7:25 p.m.
All Ayes. Motion carried.
- ,espectfully submitted,
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Steven C. Murgatroyd, Chai