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HomeMy WebLinkAboutMinutes - 10/01/2018 - Finance and Personnel CommitteeFINANCE AND PERSONNEL COMMITTEE Monday, October 1, 2018 Municipal Center Classroom, 5:30 PM Call to Order: The meeting was called to order at 5:30 p.m. Roll Call: Deputy Clerk Meadows called the roll. Roll call: Members present: Chairman Curry, Alderman Schaefer and Alderman Mihevc. Also in attendance: Finance Director Lynch, Human Resource Director Campanella and Deputy Clerk Meadows. Public Comment: None. Motion to approve the September 10, 2018 Finance and Personnel Committee meeting report. A Motion was made by Alderman Schaefer and seconded by Alderman Mihevc to approve the September 10. 2018 meeting report as presented Roll call: Vote: 3 ayes: Alderman Schaefer, Alderman Mihevc and Alderman Curry. 0-nay, 0-abstained. Motion carried. Items of Discussion Property Tax Alderman Curry noted that the continuation of the discussion regarding the Sales Tax Incentive Policy has been postponed due to the fact that Staff has not had sufficient time to research and develop a recommendation on this matter. The draft policy will be discussed at an upcoming Finance and Personnel Committee meeting. Finance Director Lynch reported that the property tax discussion is taking place tonight due to the upcoming holiday schedule and the City Council meeting schedule changes in the month of November. In order to comply with the Truth in Taxation Act and the public hearing notice this year's levy amount will need to be determined and presented at the November 12th City Council meeting. The change in the meeting schedule might necessitate an additional Finance and Personnel meeting in October. The Committee Members agreed to meet on October 15th at 5:30 p.m. if necessary. Finance Director Lynch provided the Committee Members with a summary of the PTELL calculation. She reported that the CPI was calculated at a rate of 2.1% other than salary increases which were calculated at a rate of 1.7%. The estimated limited extension is $4,737,159 which is $118,373 higher than the previous year and after the audit adjustments for the fiscal year ending April 30, 2018 the General Fund Balance is $7,266,368. However, the General Fund balance falls short by $84,079 of the amount set forth in the Fund Balance and Reserve policy. Finance Director Lynch continued on to discuss the 5 year capital improvement plan. She reported that all department heads have been notified that there are $0 excess funds available for capital improvements in the FY-2019/2020 budget. However, during the budget process if there were budgeted revenues over expenses capital improvement items could be added. Finance Director Lynch discussed the projected salary increases for both union and non -union employees. She reported that the total estimated salary increases is $449,616. She noted that the Police Pension actuarial report has not yet been received. However, the Police Pension Fund investments have performed well this fiscal year. Finance Director Lynch reported on the projected EAV which is higher this year than the previous year. This year's projected EAV is $643,321,108 and last year's EAV was $624,662,787. Alderman Curry asked if Staff anticipated any increases to the employees' benefits. Director Campanella reported that insurance coverage cost is estimated to increase by 3%. However, the IMRF benefit cost is anticipated to decrease by approximately 2%. She continued on to discuss the recent organizational restructuring. The departmental restructuring produced an increase in efficiency and reduced salary and benefit costs. The Committee along with Staff discussed ways in which the City could increase revenues. During the discussion it was noted that sales tax revenues had increased. Alderman Curry reported that historically he has not supported a property tax increase. The property tax has remained flat for several years. There was some discussion with respect to a % % sales tax increase. Alderman Curry thought that a sale tax increase was a fairer tax than a property tax. In addition, a %% sale tax increase would also impact the people living outside of the City. There was some discussion on the surrounding communities' current sale tax percentages. The Committee Members agreed to hold a special meeting on October 15th at 5:30 to discuss and take action on the corporate levy dollar amount. Staff Reports Director Campanella discussed her ongoing research with respect to salaries and wages. She reported that she continues to investigate other surrounding communities full and part-time overtime expenses compared to the City's overtime expenses. Director Campanella discussed the overtime expenses associated with special events. She will continue to investigate this matter and report back. Any Other Business There was no other business to discuss. Motion to adjourn from the meeting There being no further public business to discuss, a Motion was made by Alderman Mihevc and seconded by Alderman Schaefer to adjourn from the public meeting at 6.4S p.m. Roll call: Vote: 3-ayes: Alderman Mihevc, Alderman Schaefer and Alderman Curry. 0-nays, 0-abstained. Motion carried. Respectfully submitted, Debra Meadows, Deputy City Clerk Reviewed and approved this , day of -, - r"' 2018. Aldermab Curry, Ch irmaii