FINANCE COMMITTEE MEETING
Monday, April 23, 2012 – 6:00 p.m.
1. Call to Order & Roll Call.
Committee Members: Chairman Steve Jasinski, Ald. Karen Michalczyk, Sean McDermott, Scott Musillami; Finance Director Steve Drazner
2. Approval of the Minutes: March 26, 2012.
3. Presentation of Monthly Treasurer’s Report for March, 2012.
4. Informational item related to the State debt recovery program (delinquent accounts)
5. Discussion item related to City contribution for Pet Parade.
6. Discussion item related to City contribution for Chili Cook-off.
7. Informational item providing update on Series 2006 bond refunding.
8. Discussion item related to amendments to FY13 Proposed Budget.
9. Discussion item related to City police pension contribution for FY12 (actuarial report – hardcopies to be distributed)
10. Discussion item related to the WCMC Annual Dinner Meeting on May 11 at the Donald Stephens Convention Center – $75 pp.
11. Other Business
MINUTES OF THE FINANCE COMMITTEE MEETING
CITY OF COUNTRYSIDE – CITY HALL
APRIL 23, 2012 – 6:00 P.M. COUNCIL CHAMBER ROOM
1. The meeting is called to order at 6:00 P.M. Present: Chairman Steven Jasinski, Alderman Karen Michalczyk, Alderman Sean McDermott, Alderman Scott Musillami.
Also present: Mayor Ed Krzeminski; City Clerk Sharon Sweeney; Alderman James Jasinski; Alderman Bob Pondelicek, Alderman John Von Drasek; Assistant Administrator Sharon Peterson; Finance Director Steven Drazner.
APPROVAL OF MINUTES
2. The minutes of March 26, 2012 were approved as submitted.
PRESENTATION OF MONTHLY TREASURER’S REPORT FOR MARCH 2012
3. Fin. Dir. Drazner presented the monthly Treasurer’s Report for March 2012. It was reported overall the proceeds from sales tax was stronger than expected and all of the other funds were at or above target.
INFORMATIONAL ITEM RELATED TO THE STATE DEBT RECOVERY PROGRAM
4. Fin. Dir. Drazner explained the Debt Recovery Program allows the Illinois Comptroller’s Office to enter into an intergovernmental agreement with a municipality to collect debts such as parking tickets, fines, fees, and other types of outstanding obligations. The primary benefit of participating in the program would be the savings on the collection agency contingency fees which range from 33% to 50% for all recovered amounts. Participation in this program requires the city to create a very specific file format of the delinquent accounts to be submitted to the Comptroller’s Office. A significant amount of programming costs could be associated with creating such a file. The Comptroller’s Office is in the process of trying to simplify the process for municipalities interested in participating and recommended the city defer making a decision until the standardized project is completed in mid-summer. The city does not have a significant amount of uncollected debt and will review the program again in mid-summer.
DISCUSSION ITEM RELATED TO CITY CONTRIBUTION FOR PET PARADE
5. The LaGrange Pet Parade requested a donation in the form of advertisement in their booklet. This item was not budgeted.
The committee members recommended to deny this request.
DISCUSSION ITEM REALTED TO CITY CONTRIBUTION FOR CHILI COOK-OFF
6. The 3rd Annual Chili Cook-Off event held at William Tell Restaurant requested a donation. This item was not budgeted.
The committee members recommended to deny this request.
INFORMATIONAL ITEM PROVIDING UPDATE ON SERIES 2006 BOND REFUNDING
7. Chair Jasinski reported Fin. Dir. Drazner did a great job researching interest rates for the outstanding bonds. The city was able to re-finance for a savings of $133,413.
DISCUSSION ITEM RELATED TO AMENDMENTS TO FY13 PROPOSED BUDGET
8. An additional $3,000 for legislative training and an additional $2,500 for city marketing and promotion were added to the budget following the last Finance Committee meeting. Since no particular training is presented, committee recommended if someone is interested in a training session it can be presented and added to the budget at that time. The committee furthermore recommended not to add $3,000 for legislative training to the budget at this time.
Previously it was discussed city staff could sell City of Countryside T-Shirts/hats at City Hall or the items could be sold in stores in the city. The stores did not appear to be receptive to the idea since the items would not come from a vendor they currently use. Mayor Krzeminski noted there are specific vendors that are willing to pay for the design and manufacturing; the items could possibly be used as giveaways at the summer concerts. Members recommended approaching the Countryside Business Association (CBA) with the idea; the businesses may be interested in selling these items. The committee member’s recommended not to add $2,500 for city marketing and promotion at this time. If the CBA is interested the $2,500 could be added back into the budget.
DISCUSS ITEM RELATED TO CITY POLICE PENSION CONTRIBUTION FOR FY12
9. The City of Countryside Police Pension Fund uses the actuarial services of Tim Sharpe for preparing the annual police pension actuarial valuation. The Pension Board instructed Mr. Sharpe to include the amount of $22,100 longevity to the calculation. Using this assumption, Mr. Sharpe’s valuation determined a City contribution of $643,487. Staff was directed to hire its own independent actuary, Mr. Sandor Goldstein, to prepare the actuarial valuation for the same period and assumptions except to use the actual paid longevity of $850 rather than the $22,100. Based on this assumption the city contribution would be $532,241.
The committee recommended that the city contribute $532,241 to the Police Pension fund for FY12.
DISCUSSION ITEM RELATED TO THE WCMC ANNUAL DINNER MEETING ON MAY 11 AT THE DONALD STEPHENS CONVENTION CENTER
10. The WCMC is hosting an annual dinner meeting on May 11, 2012 at the Donald Stephens Convention Center at a cost of $75 per person.
The committee member’s recommendation is approval for the Mayor and Department Heads to attend the event.
11. Beds Plus requested a donation to sponsor the Beds Plus Prom. This item was not budgeted.
The committee members recommendation is to deny this request.
12. Fin. Dir. Drazner requested direction for three additional items in order to proceed with the Electric Aggregation Program:
Electric supply vendors typically offer municipalities a choice between a civic contribution based on population which in the City’s case would be between $10,000 to $15,000 or extend a lower electric rate to the residents in the aggregation program. The committee preferred to extend the lower electric rate to the residents.
There is a one, two or three year term available. Staff recommended a two-year term and the committee members concurred.
Once the supplier is chosen, the city can opt to allow each customer in the aggregation program to select or not select a green option for electric supply or the city can decide whether or not to take the green option for all those participating in the electric aggregation program. This option only adds a very minimal amount to the electric rate. The committee prefers to give each individual customer the option to choose if that is permitted by the energy supplier.
13. No further discussion. Motion and seconded to adjourn at 6:36 p.m
Dated: ______________________ __________________________
Steven Jasinski, Chair