FINANCE COMMITTEE MEETING

CITY OF COUNTRYSIDE, ILLINOIS

HELD IN THE COUNCIL CHAMBERS ON MONDAY, FEBRUARY 23, 2015

A motion was made and seconded for Alderman Sean McDermott to act as Chairman. Ald. McDermott called the meeting to order at 6:00 p.m. and called the Roll of those physically present as follows:

PRESENT: Alderman Sean McDermott, Alderman Karen Michalczyk, Alderman Scott Musillami

ALSO PRESENT: Mayor Ed Krzeminski, City Clerk Sharon Sweeney, Alderman Bob Pondelicek, Alderman John Von Drasek, Alderman James Jasinski, City Administrator Gail Paul, Police Chief Joe Ford

PUBLIC: Don McGoorty, Allen Arneson

COMMENTS FROM THE PUBLIC

None.

1. APPROVAL OF MINUTES

Administrator Paul made a change to the minutes, page two, paragraph three, delete the words TIF Fund and add Hotel/Motel Fund. Ald. Musillami moved to approve the Minutes of January 26, 2015, seconded by Ald. Michalczyk and carried unanimously.

2. PRESENTATION OF MONTHLY TREASURER’S REPORT

Administrator Paul presented the Monthly Treasurer’s Report for the period ending January 31, 2015. The General Fund has a net year-to-date surplus of approximately $665K although this does not include the annual contribution to the police pension fund. There are no expenditures budgeted from the MFT Fund in the current fiscal year in order to build up reserves for future projects. The City has not received any tax increment funding although $90K was budgeted. Capital projects are all completed for this year with the exception of the installation of LED lights. This project will be completed before the end of the fiscal year. Water revenues are on target while expenditures are exceeding budget due to the water mail replacement. The Flagg Creek Golf Course Fund and the Sewer Fund are on target.

3. UPDATE ON YEAR-TO-DATE VIDEO GAMING COLLECTION

It is projected that the city should collect slightly over $200K for the entire fiscal year which is more than double the annual amount budgeted of $95K. The FY 16 budgeted revenue for this tax has been increased to $200,000. A detailed report will be provided every six months.

4. RECOMMENDATION TO APPROVE ORDINANCE TO TERMINATE SPECIAL SERVICE AREA #1

The City established a Special Service Area #1 (SSA#1) on April 11, 1983 which encompassed approximately all of Ward 2. The purpose of the SSA#1 was to provide special municipal services to the area, primarily the furnishing of sanitary sewer facilities. In order to pay for the improvements, general obligation bonds were issued and became the responsibility of those owning the property rather than all residents and businesses with the City of Countryside. The last property tax levy for this area dated back to 1993 and was never formally terminated.

Staff recommended approval of an Ordinance which shall terminate Special Service Area #1. The committee recommendation is to approve the presented Ordinance.

5. Discussion item: Annual City Contribution Amount to Police Pension Fund

The City hired Goldstein & Associates (G&A) to perform an actuarial valuation to calculate the recommended City pension contribution to the Police Pension Fund for the period May 1, 2014 to April 30, 2015. The assumptions used for this valuation were the same as last year, including an annual $850 longevity amount. In addition, the Police Pension Fund Board hired its own actuary from the firm Lauterbach & Amen LLP (L&A LLP) to complete an annual actuarial valuation. The primary assumption used by L&A LLP which differed from that used by G&A was the use of a longevity amount of $22,100 rather than $850. A third valuation was completed by the Illinois Department of Insurance recommending an annual contribution amount of $1,113,411.

Administrator Paul explained the Illinois Department of Insurance typically tends to underestimate returns and overestimate salary increases. The same assumption is used throughout the state.

The committee recommendation is approve a contribution in the amount of $837,391 and to forward a letter to the Police Pension Board explaining the determination.

6. Discussion item: FY16 Proposed Budget Requests

Administrator Paul presented the FY16 Proposed Budget. Several items which may affect the final budget include: The Heritage Corridor’s request to be designated as the city’s convention bureau for an annual contribution of $1,500-$5,000. Flagg Creek Golf Course’s budget should be finalized in March. An Economic Incentive request was received from Holiday Inn.

7. OTHER BUSINESS

None.

8. ADJOURN TO EXECUTIVE SESSION

There being no further business to discuss, Ald. Musillami moved to adjourn to Executive Session to discuss personnel, seconded by Ald. Michalczyk. The regular meeting was adjourned at 6:25 p.m.

__________________________

Sean McDermott, Acting Chairman

lf/mc

Finance minutes 2.23.15