HomeMy WebLinkAboutMinutes - 04/06/2015 - Finance and Personnel CommitteeFINANCE AND PERSONNEL COMMITTEE MEETING
Monday, April 6, 2015
Alderman Conference Room, 6:00 p.m.
In Attendance: Committee Members: Chairman Alderman Wimmer, Alderman
Condon and Alderman Schaefer. Absent: None.
Also in Attendance: Mayor Low, City Administrator Morefield, Deputy City Administrator
Hobson and Director of Finance Lynch.
Chairman Alderman Wimmer called the meeting to order at 6:03 p.m.
Public in Attendance: Mr. Scott Curry
Mr. Greg Van Nostrand
Chairman Alderman Wimmer called the meeting to order at 6:03 p.m.
Mayor Low arrived at 6:06 pm
Alderman Santi arrived at 6:20 p.m.
Public Input
Mr. Scott Curry, 5802 Amherst, McHenry, addressed the Committee regarding the proposed
Fiscal Year 2015/2016 Budget. Mr. Curry stated that he has reviewed the entire budget and
expressed concerns regarding portions of the budget.
Discussion Regarding the City of McHenry
Fiscal Year 2015/2016 Budget Final Draft and Motion to
Present the Budget Document to the Full Cpuncil for Consideration
Chairman Alderman Wimmer recognized City Administrator Morefield.
City Administrator Morefield reiterated to the Committee that the first draft of the FY15/16
Proposed Budget was reviewed at the Finance and Personnel Committee meeting held on
March 5, 2015. This second draft of the budget document has been modified as a result of the
topics discussed by the Committee at the meeting on March 5, 2015. Specifically, the tiered
implementation of Capital Improvement and Capital Equipment projects and the
implementation of a merit-based compensation system fqr non-bargaining unit employees.
As in previous years, the City Administration has taken a conservative approach in
developing the proposed budget. Revenue projects continue to be based on historical trends
and economic forecasts, while taking into account the current state of the economy and
financial instability of the State of Illinois.
Budget development guidelines provided to Department Directors continue to stress the need
to keep proposed operating expenditures level where possible and to continue to identify
opportunities to reduce expenditures and/or increase revqnues and the efficiency of providing
services.
Finance and Personnel Committee Meeting
April 6, 2015
Page 2
In considering the proposed FY15/16 Budget, the City must be mindful of the recent
announcement by Governor Rauner regarding the potential for reductions to the Local
Government Distributive Fund (LGDF). While the LGIJ>FJ reduction to the FY14/15 State of
Illinois Budget was recently withdrawn, the potential eki^ts for a reduction to the LGDF in
the FY15/I6 Budget. City Administrator Morefield h(j>ted that as proposed, an LGDF
reduction of 50% would result in an estimated $1.3 millibiji in reduced revenues for the City's
General Fund. j
City Administrator Morefield stated that the City ha$ [)een successful in rebuilding the
General Fund Balance not only to a level that meets theiCJity's minimum General Fund Fund
Balance Policy (20% of operating expenses), but also t(j» insure that funding is available for
the implementation of significant capital improvement projects. Unfortunately, funds would
quickly be depleted should it become the sole source of jfujnding for capital improvement and
capital equipment projects, because of reductions to the lUfrDF.
| !
City Administrator Morefield noted that while it is larjderstood that Governor Rauner's
proposal is preliminary, and subject to extensive modification, the City of McHenry remains
mindful of the impact that any reductions could have.
City Administrator Morefield stated that the FY15/16 IjJijdget, as proposed is operationally
balanced. The proposed spending plan totals $44,627,35^ |for All Funds and $19,978,962 for
the General Fund.
City Administrator Morefield provided a brief summar
expenditures to the Committee. Additionally, he provided
Funds:
• Special Revenue Fund;
• Capital Project Funds;
• Debt Service Fund;
• Proprietary Funds;
• Internal Service Funds; and
• Fiduciary Funds.
Responding to an inquiry from the Committee, City Adm|
Water Improvements and the Wastewater Improvements
Sewer Fund.
of the General Fund, revenue and
brief summaries of the following
nistrator Morefield stated that the
are paid for through the Water
Responding to an inquiry from the Committee, Director
Bond Payment and Salt would eat up the Motor Fu
2015/2016.
of Finance Lynch noted that the
:1| Tax (MFT) Fund allotment for
Finance and Personnel Committee Meeting
April 6, 2015
Page 3
Alderman Schaefer suggested that, at some point, the Finance and Personnel Committee
should address future commitments to the General Fund balance.
Alderman Condon stated that she noticed an increase in the Alderman salary in the Budget.
Director Lynch stated that it was an oversight and would be addressed prior to the final
Budget.
Alderman Schaefer inquired about whether outsourcing the Human Resources position,
rather than filling the position following Director Zannini's departure had been explored.
City Administrator Morefield stated that outsourcing the position had been researched by
Director Zannini. There is no cost savings. Staff opined that outsourcing the position of
Director of Human Resources for that reason and with a contractual employee because there
is no day-to-day employee contact outsourcing is not a viable option.
Responding to an inquiry from Alderman Schaefer regarding contractual accounts, City
Administrator Morefield noted that legal costs were reduced this year, and the only other
contractual employees are in the Parks and Recreation Department.
City Administrator Morefield informed the Committee that the FY15/16 Budget document is
organized as follows:
• Budget Summary of Revenues and Expenditures; \ General Fund Operating Budgets;
• Special Revenue Fund Budgets
• Capital Projects;
• Debt Service Funds;
• Proprietary Funds;
• Internal Service Funds; and \ Fiduciary Funds
Motion by Condon, seconded by Schaefer, directing Staff to present the draft Fiscal Year
2015/2016 Budget document to full Council.
Aye: Condon, Schaefer, Wimmer
Nay: None.
Absent: None.
Motion carried.
New Business
No new business was discussed.
Finance and Personnel Committee Meeting
April 6, 2015
Page 4
Adjournment
Motion by Condon, seconded by Schaefer, to adjourn the meeting at 6:25 p.m.
Aye: Condon, Schaefer, Wimmer.
Nay: None.
Absent: None.
Motion carried.
Respectfully submitted,
Richard W. Wimmec/Chairman