FINANCE COMMITTEE MEETING

CITY OF COUNTRYSIDE, ILLINOIS

HELD IN THE COUNCIL CHAMBERS ON MONDAY, JANUARY 26, 2015

Finance Director/Interim Treasurer Steve Drazner called the meeting to order at 6:00 p.m. He called the Roll of those physically present as follows:

PRESENT:Finance Director/Interim Treasurer Steve Drazner; 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, Assistant Administrator Sharon Peterson, Police Chief Joe Ford, Deputy City Clerk Margaret Cary, DPW Superintendent Jim Essig, Lead Water Operator Mike Hartigan, Flagg Creek Golf Course Manager Billy Rosinia, Flagg Creek Golf Course Superintendent Doug Davis, Flagg Creek Golf Course Food & Beverage Manager Chrissy Roti

PUBLIC: Don McGoorty, Allen Arneson, Carm Scarpace, Sheila Benson

COMMENTS FROM THE PUBLIC

None.

1. APPROVAL OF MINUTES

Ald. Michalczyk moved to approve the Minutes of November 24, 2014 as presented, seconded by Ald. Musillami and carried unanimously.

2. PRESENTATION OF MONTHLY TREASURER’S REPORT

Finance Director/Interim Treasurer Steve Drazner presented the Monthly Treasurer’s Report for Period ending December 31, 2014. FD Drazner stated that the General Fund has a current surplus of over $700,000. However, we have not paid our annual police pension contribution which will exceed $800,000. As the year proceeds, he expects the operating fund to end approximately on target. The other funds are expected to end at or near the budget target except the Water Fund which will require a supplemental appropriation.

3. UPDATE ON IMET FRAUD

Finance Director/Interim Treasurer Steve Drazner updated the Committee about the IMET fraud. He discussed a memo received from IMET. The potential loss for the City is $189,000-but will probably be much smaller. That is worst case scenario. IMET is working to recover the stolen money.

4. BUDGET DISCUSSION FOR FY16 OTHER FUNDS

Finance Director/Interim Treasurer Steve Drazner presented the requested budgets for all City funds except for the General Fund which discussion will continue in February. City Department Heads recapped each fund for the Committee.

Staff started with the Emergency 911 Fund. Chief Ford reported that the E911 Fund will be affected by an increase coming from Southwest Central Dispatch for 25% in October, 2015 which is when the discount will end. The only other item is a new Moducom server which was approved at last council meeting and will be able to be paid from the current budget. FD Drazner pointed out that beginning with FY17 an inter-fund transfer will likely be necessary to cover the deficit. The only way to increase revenue is to increase the surcharge, which is not currently being considered.

Assistant City Admin. Peterson reported on the MFT Fund. The only change is 8020 for infrastructure improvements for resurfacing to Hillsdale, Stalford, and 9^th Avenue. The total proposed budget in this fund for these projects next year is approximately $401,000.

Assistant City Admin. Peterson reported on the Hotel/Motel Fund. Overtime salary for the CBA Carnival is budgeted at $6,600. That is approximately half the overtime expense needed. Do we want to increase that amount to $13,200 and cover all of the overtime? Committee directed staff to increase the budgeted amount to the full amount of $13,200. Other major expenses in this fund are $40,000 for billboards and $25,000 for carnival sponsorship.

Commercial TIF Fund was presented by FD Drazner. He reported that the City anticipated receiving tax increment revenue in the current fiscal year but that did not materialize. The county believes we are likely to receive some next year, though it is hard to estimate and not guaranteed but FD Drazner stated that he believes there are some parcels with EAVs which currently exceed the frozen values. There is $50,000 for legal expenses because we have a couple parcels remaining. City Admin. Paul said Lot 3B is moving forward. We are working on the hotel site. We are working with Lil’ Kickers. The Phelan agreement was completed and Honda is pending. We could have Russell’s Barbeque coming soon.

The Capital Projects Fund was presented by FD Drazner. An additional $10,000 will be added to grant revenue for the LED Project and an amount will need to be added to the CIP budget for replacement or upgrade of the City’s phone system. There will be a more detailed review of this fund next month.

Chief Ford reported on The Drug Forfeiture Fund. No major changes. One larger addition is a Taser purchase. He is looking to add 12 Tasers and also adding ballistic shields for officer safety.

The Water Fund was presented by FD Drazner and DPW Superintendent Jim Essig. The water charges were updated to reflect the recent rate increase. All other revenue is about the same. DPW Superintendent Essig stated the only increase is maintenance to motor vehicle. He added the 6^th Avenue loop capital project–$435,000. Last year the City had 3 water main breaks there.

The Sewer Fund was presented by DPW Superintendent Jim Essig. He added $7,000 to maintenance for televising. FD Drazner stated that our cash balance is getting low in that fund. For an unexpected emergency, there may be not enough cash to cover it.

Flagg Creek Golf Course Manager, Billy Rosinia presented an overview of the Flagg Creek Golf Course Fund. Mr. Rosinia explained that the golf course has not had a rate increase since 2008. Compared to other 9-hole municipal golf courses in the area, a $1.00 green fee across the board would still keep them competitive. This rate increase would amount to an annual revenue increase of approximately $38,000 – $40,000. The Committee agreed with the rate increase and directed staff to include on the next FCGC Board meeting agenda.

Mr. Rosinia stated that the golf course will be replacing carts and computers. They will also replace the clubhouse roof and sidewalks and the parking lot. He will work with PW to get a better rate. Concessions are basically the same. Staff is considering whether to outsource catering. A new ice machine and cooler have been included in the budget.

Flagg Creek Golf Course Superintendent Doug Davis presented the Maintenance items. Most items will remain the same. There may be a decrease in fuel cost. Airflow and lighting improvement costs have been added. There are many Ash trees that will require removal and replacement. There is also a $33,000 bank mower that has been budgeted. The current mower is 11 years old. It has passed its useful life by at least 2 years and is not working properly. It is not cost effective to keep up with repairs. FD Drazner also pointed out that out-of-state conferences have been budgeted; 1 for Doug and 2 for Billy.

FD Drazner reported that the bottom line to the proposed budget is that there is currently a small surplus of about $2,000.

5. REQUEST TO ADVERTISE FOR BIDS FOR CITYWIDE LED LIGHTING PROJECT

Asst. City Admin. Peterson and DPW Superintendent Essig stated that the Citywide LED replacement project needs to be completed soon to receive the grant money from the Department of Commerce & Economic Opportunity (DCEO). The deadline given to the City was April 1, 2015 to have the lights installed and running and all paperwork to the DCEO. The project was budgeted for $230,000 from FY16 budget, but the project will actually need to begin prior to May 1, 2015. The Committee was presented with 2 recommendations from Novotny & Associates, who also requested to waive the formal bidding process-one for the materials and one for the installation. Committee concurred with staff’s recommendation and approved this item for placement on the Jan. 28, 2015 City Council meeting.

OTHER BUSINESS

None.

6. ADJOURNMENT

There being no further business to discuss, Alderman Michalczyk moved to adjourn, seconded by Ald. Von Drasek. Finance Director/Interim Treasurer Drazner adjourned the meeting at 6:45 p.m.

__________________________ _____

Interim Treasurer Gail Paul