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HomeMy WebLinkAboutMinutes - 04/04/2016 - Finance and Personnel Committee (2)FINANCE & PERSONNEL COMMITTEE MEETING REPORT April 4, 2016, 5:30 PM McHenry Municipal Center In Attendance: Committee Members: Chairman Alderman Wimmer, Alderman Curry and Alderman Condon via teleconference. Absent: None. Also in Attendance: City Administrator Morefield, Deputy City Administrator Hobson; Finance Director Lynch; and Deputy City Clerk Geraghty. 1 2. 4. Call to Order: Chairman Alderman Wimmer called the meeting to order at 5:30 PM. Chairman Wimmer reported Alderman Condon was attending the meeting via audio conferencing for medical reasons and pursuant to the Open Meetings Act; he called for a motion to authorize this action. Alderman Curry made a motion, seconded by Alderman Wimmer to participate in the April 4, 2016 Finance and Personnel Committee meeting via audio conference. Voting Aye: Curry, Wimmer Voting Nay: None Absent:None Motion carried. Public Input: None Motion to approve the March 23, 2016 Finance and Personnel meeting_re o�rt. This item was postponed to the next Finance and Personnel Committee meeting as the minutes were not provided in the meeting packet. forward the document to the full City Council for adoption at the April 25"' Annual City Council meeting. Chairman Wimmer asked City Administrator Morefield to begin the discussion. Administrator Morefield reported the agenda supplement provided to the Committee summarizes the comments, revisions, additions and/or clarifications as identified at the March 23rd meeting as follows: Revisions/Additions Administration Line item 5110 Contractual Services was increased by $3,000 to provide funding for a municipal internship opportunity. Line item 5440 Training was increased by $3,000 to provide funding to send a candidate to Leadership Greater McHenry County. Finance Line item 9942 Transfer to Capital Improvements Fund was increased by $87,866 to recalculating the amount needed to cover new capital items. Line item 5110 Contractual Services was increased by $50,000 for the completion of the Lakeland Park Drainage Ditch Study. In summary, these additions result in an increase of $143,866 in budgeted expenditures from what was presented in the previous draft. Clarifications Director Morefield addressed inquiries made by Alderman Curry at the March 23rd Committee meeting regarding certain salary increases: Fund 100.01 Administration: The Executive Assistant increase is the result of a promotion to include responsibilities as Deputy City Clerk. Fund 100.01 Administration: The Building Custodian salary incorrectly identified in the detail sheet 2015/16 column has been corrected. Fund 100.03 CED: The Administrative Assistant increase is due to the transfer of a full position from Fund 100.02 Elected Officials to 100.03. The Office Assistant now reflects a 0.4 position, which is shared with Finance 100.04. Fund 100.04 Finance: The increase in the Office Assistant reflects the addition of a 0.4 position, which is shared with CED 1006030 Fund 100.41 Parks &Recreation: The Parks Maintenance increase reflects the switch of an employee who was at step 4 of the IOUE 150 contract for an employee that is at step 10 of the IOUE 150 contract; a 27% difference in wages when comparing these two positions. A discussion ensued on what is reflected on 4010 pages for non -bargaining employees versus the amounts shown on 4090 sheets that reflect proposed increases that will go into effect FY 2016/17. Alderman Wimmer called for questions/comments from the Committee: Alderman Condon had none. Alderman Curry questioned the amount budgeted for salary adjustments. City Administrator Morefield provided a brief history on the introduction of the city's merit -based compensation system approved by the City Council for non -bargaining employees. He reported the CPI-U is .7% and the average increase budgeted for non -bargaining employees is 2.5%; some may be higher; some may be lower using the merit -based system. Alderman Curry opined the Council should be approving the overall amount not individual salaries within a budget. Alderman Curry said he is use to a corporate approach in determining salaries. A discussion on revenues and how they are determined each year was discussed. Alderman Curry is concerned that staff intentionally underestimates projected revenues. 2 Alderman Condon stated it is not always best to use a corporate mentally with a government entity as they are not transferrable. In a corporate environment if a catastrophe occurs and money is not available, a corporation folds and that is on the owners yet the Council has a responsibility to continue to provide services to our residents. We should not diminish the fact that we are being conservative and will always be able to provide for our community. Finance Director Lynch explained to the Committee the amounts estimated for income and use taxes are provided by the State. For FY 2016/17, the State's estimate was $2.00/per capita under actual receipts. Director Lynch further explained video gaming just began and it was not know the city was going to receive over $250,000 in gaming revenue; drug asset forfeiture revenues are also unpredictable.. Alderman Curry said the city has to do the best job they can in predicting revenues and that does not appear to be what is done, adding the state income is not going to be flat as shown in the budget. Director Lynch said the information comes directly from the State Municipal League who provides the city with the estimates for next year. Alderman Curry said he disagrees with the State's estimates. Further discussion ensued on Alderman Curry's questions and staffs explanations on the reasons for various expenditures and how the budgeted amounts are depicted on the detail sheets throughout several accounts. With no further questions from the Committee, Chairman Alderman Wimmer called for a motion on agenda item #4. Alderman Condon made a motion, seconded by Alderman Wimmer to forward the proposed Fiscal Year 2016/17 Budget to the full City Council for adoption at the April 25th Annual City Council meeting. Voting Aye: Voting Nay: Absent: Motion carried. 5. Adi ournment: Condon, Wimmer. Curry None Motion by Curry, seconded by Condon to adjourn the meeting at 6:50 PM. Voting Aye: Condon, Curry, Wimmer. Voting Nay: None Absent:None Motion carried. Reviewed and Approved: Alderman R. Wimmer, 3