FINANCE COMMITTEE MEETING
Tuesday, January 25, 2011 – 6:00 p.m.
1. Call to Order & Roll Call.
Committee Members: Chairman Jasinski, Ald. Michalczyk, Smetana; & Others Present.
2. Approval of the Minutes: November 16, 2010.
3. Consider recommendation to continue participation with the Intergovernmental Risk Management Agency for property, general liability, and workers’ compensation insurance coverage.
4. Consider recommendation to continue participation with the Intergovernmental Personnel Benefit Cooperative for employee health insurance coverage.
5. Consider recommendation to select one of the two finalist audit firms, Lauterbach & Amen or Sikich LLP for the City’s annual financial audit over the next five fiscal years.
6. Consideration of a renewal contract with Illinois Convenience & Safety Corporation to provide bus shelters in the City of Countryside.
7. Consider approval of a standardized calculation method and a minimum/maximum fee range for businesses subject to a payment in lieu of tax fee within the arterial road corridor.
8. Presentation of monthly and year to date financial report for the period ending December 31, 2010.
9. Discussion of the City’s FY 11/12 Proposed Budget for the Corporate Fund.
10. Other Business.
11. Adjournment .
CITY OF COUNTRYSIDE – CITY HALL
FINANCE COMMITTEE MEETING MINUTES
JANUARY 25,2011 – 6:00 P.M. CHAMBER ROOM
CALL TO ORDER & ROLL CALL
1. Meeting called to order at 6:00 P.M. Present: Chairman Jasinski, Aldermen Michalczyk. Smetana. Also present: Mayor Conrad, City Clerk Sweeney (6:08); Aldermen Sean McDermott (6:45), Straza, Pondelicek, VonDrasek, City Administrator Gail Paul, Finance Director Steve Drazner, Police Chief Ruth, Asst.Adm.Peterson, DPW Director Essig, ESDA Coordinator Norman, Deputy Clerk Bartelt
APPROVAL OF MINUTES
2. The meeting minutes of November 16, 2010 were approved as submitted.
CONSIDER REMAINING WITH IRMA FOR PROPERTY, GL & WC INSURANCE
3. Finance Director Drazner reviewed the aspects of his recommendation and suggested that the City stay with IRMA after a thorough review of the details.
Committee’s consensus was to accept his recommendation and remain with IRMA.
CONSIDER REMAINING WITH IPSC FOR EMPLOYEE HEALTH INSURANCECOVERAGE.
4. Finance Director Drazner presented his recommendation to continue with the IPBC pool. The next window to withdraw membership would be 90 days prior to the 71-14 contract. Committee asked for more information to be presented before a decision is made.
SELECTION OF AUDIT FIRM FOR NEXT 5 FISCAL YEARS
5. Finance Director Drazner reported that the 2 audit firms he is recommending are both well qualified. The only consideration being to remain with the existing auditing firm (Sikich) would reduce Staff’s time submitting background materials to a new firm.
Committee’s consensus was to recommend remaining with the existing auditing firm, Sikich for a five year term for $132,921 which includes the single audit or TIF compliance opinions.
CONSIDER REMAINING WITH ILLINOIS CONVENIENCE & SAFETY CORP
6. Deputy Clerk Bartelt presented the renewal contract for review. This company has maintained four bus shelters in the City for more than 20 years with very good service and no complaints. They have offered to increase the revenue return to 22%, guarantee a $500 return yearly, and to replace any shelter as the City needs. Committee’s consensus was to recommend approval of the 10 year contract.
CONSIDERATION OF A STANDARDIZED METHOD FOR CALCULATING PILOT
FEES & A RANGE.
7. Finance Director Drazner presented his recommendation to implement a Payment in Lieu of Tax (PILOT) fee calculations for the Arterial Road Corridor (ARC) for those businesses that derive less than 50% of their income from sales tax.
A multi-step process is involved and the general guideline will be 1) determine actual square footage; 2) receive projections of estimated gross sales which do not fall under sales tax; 3) take into account the average of sales tax per square foot for surrounding businesses; 4) if business surpasses the 50% guideline for 2 consecutive years, agreement will be terminated; and 5) each PILOT fee would be adjusted each March 1 based on the increase in the Chicago CPI. Also, PILOT fees would be between $2.75 and $3.70 per square foot.
It was the Committee’s consensus to accept the PILOT program as presented.
PRESENTATION OF FINANCIAL REPORT FOR PERIOD ENDING 12-31-10
8. Finance Director Drazner presented the report and called attention to certain fund balances He noted that the Water Fund is doing well, and stated the City will end up with a surplus. Committee accepted his report and recommend it be approved at the next Council meeting.
DISCUSSION OF THE CITY’S FY 11/12 PROPOSED BUDGET FOR THE CORPORATE FUND
9. Finance Director Drazner presented a report with total projections by account and a detailed discussion ensued. Next, the Administrator and each Department Head explained their respective Budget and fiscal year expenses and was followed up with Council’s comments and discussion.
Treasurer Jasinski stated that he was comfortable with the $250,000 figure listed under the Recreation Fund for land acquisition. Ald. McDermott stated the acquisition is a win-win. Staff was directed to draw up a position paper to start the grant process to offset expenses to construct a passive park on Edgewood. All changes will be incorporated into the Corporate Fund, and the next Finance Committee meeting will address those funds other than Corporate.
10. Ald. Smetana motioned, and Ald. Michalczyk seconded to adjourn at 7:49 pm.