MINUTES

FINANCE COMMITTEE MEETING

Monday, August 24, 2015 6:00 P.M.

Countryside City Hall-Council Chambers

I. CALL TO ORDER

The meeting was called to order at 6:00 PM.

II. ROLL CALL

Those physically present as follows:

Present: Treasurer Stancik, Alderman John Von Drasek, Alderman Mark Benson

Also Present: Mayor McDermott, Alderman Musillami, Assistant City Administrator Peterson, Finance Director Schutter, Joseph Bouse

Absent: Alderman James Jasinski

Resident Present: Don McGoorty

III. APPROVAL OF MINUTES

The Minutes of the Regular Meeting of March 23, 2015 and the Public Hearing of April 22, 2015 were previously distributed to the members of the Finance Committee.

I move to approve the minutes of the Finance Committee Meeting of March 23, 2015 and the Minutes of the Public Hearing of April 22, 2015.

A motion was made by Alderman Von Drasek, seconded by Alderman Benson and carried unanimously.

IV. PUBLIC COMMENT-NONE

V. PRESENTATION OF THE MOTHLY TREASURER’S REPORT

Finance Director Schutter presented the Monthly Treasurer’s Report for the period ending July 31, 2015. He indicated that the General Fund is showing a year-to-date net surplus of approximately $1.3 million, which resulted primarily from the land sale of Lot 3B in the City Center. A short summary of specific items in other City funds ensued including the following: The Hotel Fund is up year to date due to increases in the Hotel/Motel tax and due to delays in the expansion of the Holiday Inn Project, the first quarterly payment will be foregone. The TIF fund will produce tax increment for the first time since inception, although the projected increment will be about å_ of what was budgeted/expected for this year. The Water Fund appears to be approximately $300,000 under budget although this is due to timing of water payments to McCook-only two payments are reflected although three payments have been incurred but not paid yet year to date. Flagg Creek has a year to date surplus of approximately $165,000-generation of a surplus early on in the cycle is key to being able to carry the monthly deficits in the slow winter months.

CONSIDERATION OF POTENTIAL AMENDMENTS TO THE INVESTMENT POLICY

Finance Director Schutter reviewed the City’s most recent investment policy of 2010. Although municipalities must follow the Illinois Fund Investment Act, the Act is inherently conservative and our policy is even more restrictive than the Act. The suggested changes would make our policy less restrictive and enable us to generate a reasonable return. The Committee reviewed the changes and concurred with staff.

A motion was made by Alderman Von Drasek, seconded by Alderman Benson and carried unanimously.

VI. CONSIDERATION OF MEMBERSHIP IN THE WEST SUBURBAN CHAMBER

Alderman Benson asked how a membership in the West Suburban Chamber would benefit the City. Assistant City Administrator Peterson stated that membership helps to promote municipalities through publications and events. The cost of membership is $3,956. This number is determined by population. The committee discussed the cost versus our past membership contributions and decided to approve a $1,500 membership contribution.

A motion was made by Alderman Von Drasek to approved $1,500 for a membership to the West Suburban Chamber, seconded by Alderman Benson and carried unanimously.

VII. CONSIDERATION OF AN ANNUAL CONTRIBUTION TO THE I&M CANAL NATIONAL HERITAGE CORRIDOR CIVIC CENTER AUTHORITY

Treasurer Stancik said there are 2 separate requests; $1,470 for the annual contribution and $1,000 to support the River through History event. The Committee considered the contributions and decided to approve the $1,470 annual contribution, but $500 to support the event.

A motion was made by Alderman Von Drasek to approve $1,470 and $500 for the River Through History event, seconded by Alderman Benson and carried unanimously.

VIII. CONSIDERATION OF A REQUEST TO DRAFT A RFP FOR CUSTODIAL SERVICES

Assistant City Administrator Peterson stated that the City desires to go out to bid for custodial services. Our current cleaning service is lacking. We would like to have the cleaning services performed during the day instead of at night. We will open the bids on September 25^th. Final approval and award bid at City Council on October 14, with the new contract beginning on November 1, 2015.

A motion was made to approve staff going out to bid for custodial services by Alderman Von Drasek, seconded by Alderman Benson and carried unanimously.

IX. DISCUSSION ITEM: DEPOSIT ACCOUNTS AND INVESTMENT PORTFOLIO

Finance Director Schutter explained that the City’s Deposit Account structure should be restructured to reduce fees, increase interest income, and improve the collateral position of balances exceeding FDIC limits.

Currently the City pays $4,500 in bank fees annually and earns approximately $2,400 in interest. A restructuring will result in no fees and will actually earn interest. We can write off the fees with the earnings credit. Also the collateral for our accounts is secured by 3^rd party securities. Another way to do it is to get a letter of credit from the Federal Home Loan Bank that will also collateralize the Flagg Creek accounts. The restructuring of the accounts will provide better electronic access to cancelled checks and other data. The Committee concurred with staff recommendations.

Regarding investment accounts, the City’s investments are in the IMET Convenience Fund (.29% return annually) and the Illinois Funds Account (.02% return annually). There are other options out there with manageable risks that could generate much better overall returns.

X. UPDATE: IMET RESTRICTED FUNDS

Finance Director Schutter updated the Committee. IMET has been pursuing several different recovery efforts, which continues. The City has received 2 checks-$3,289.46 and $6,101.05.

XI. OTHER BUSINESS

The Shared Cost tree program is running out of money for this fiscal year. Last year Council agreed to increase an additional $15,000 for FY15. We kept that same amount – $35,000 for FY16. At this point there is no money left in the budget and staff is looking for direction. The Committee recommended increasing the program budget at an additional $10,000. This item will be placed on the September 9, 2015 City Council meeting.

XII. MOVE TO EXECUTIVE SESSION

There being no further business to discuss, Alderman Von Drasek moved to recess to Executive Session to review the Executive Session Minutes of March 23, 2015 under Section 2(c)(21) of the Open Meetings Act.

XIII. RECONVENE TO REGULAR SESSION

The Committee reconvened to regular session at 6:31PM. All the same members were present. Alderman Benson motioned to approve the Executive Session minutes of March 23, 2015, seconded by Alderman Von Drasek and carried unanimously.

XIV. ADJOURNMENT

There being no further business to discuss, Alderman Von Drasek motioned to adjourn, seconded by Alderman Benson and carried unanimously.

Treasurer Stancik declared the meeting adjourned at 6:33 PM.

APPROVED.

DATE Treasurer Caryn Stancik, Chairman

/mc