FINANCE COMMITTEE MEETING
Tuesday, November 15, 2011 – 6:00 p.m.
I. Call to Order & Roll Call.
Committee Members: Chairman Steve Jasinski, Ald. Michalczyk,Sean McDermott Others Present.
II. Approval of the Minutes: October 25, 2011.
III. Presentation of monthly Treasurer’s Report as of October 31, 2011.
IV. Presentation of quarterly Investment Report as of October 31, 2011.
V. Discussion item related to an electric energy savings program (ESP)
VI.Discussion item related to recommended amendments to Flagg Creek Golf Course Agreement.
VII.Discussion item related to Fiscal Year 2013 General Fund Budget and property tax abatements.
VIII. Other Business
INUTES OF THE FINANCE COMMITTEE MEETING
CITY OF COUNTRYSIDE – CITY HALL
NOVEMBER 15, 2011 – 6:00 P.M. COUNCIL CHAMBER ROOM
1. The meeting was called to order at 6:08 P.M. Present: Chairman Steven Jasinski, Alderman Karen Michalczyk, McDermott, Jasinski, Von Drasek, and Pondelicek. Also present: Mayor Ed Krzeminski; City Clerk Sharon Sweeney; City Administrator Gail Paul; Asst. Administrator Peterson, Finance Director Steven Drazner, Police Chief Ruth, DPW Essig, Deputy Clerk Bartelt, ESDA Norman; IT Consultant Carrigan. Treasurer Jasinski arrived at 6:11 pm.
APPROVAL OF MINUTES
2. The minutes of October 25, 2011 were approved as submitted.
PRESENTATION OF THE OCTOBER 31, 2011 TREASURER’S REPORT
3. Finance Dir. Drazner highlighted some major points of the report mentioning that most General Fund expenditures were below YTD amounts with a few exceptions and sales tax is $71K below last year’s figures. Other funds are on target. The water fund is $300K below estimates because there is a one month delay in monthly water payments to McCook. Committee accepted these statements which will be on the next Council meeting for approval.
QUARTERLY INVESTMENT REPORT – 10-31-11
4. Finance Dir. Drazner raised the subject of investing a CD scheduled to mature in January 2012 with IMET even though MB’s rate of return is slightly higher. He felt that there should be some diversification since the $5 million in loan proceeds was deposited into the MB operating account. Treasurer Jasinski felt that getting a higher rate superseded this logic since the funds are collateralized and wanted to maximize our return. Committee agreed.
DISCUSSION ON ON ELECTRIC ENERGY SAVINGS PROGRAM (ESP)
5. Fin. Dir. Drazner informed the Committee that this was different than the Opt-Out Energy Aggregation Program. Residents and small businesses could immediately realize a savings from the Com-Edison rate of 7.73 to 6.2 per KHz. with Integrys through June’13. The average savings would be approximately $250 per year.
He explained that the only downside is that Integrys Energy, the supplier under the ESP, assesses a $50 penalty if any account under the ESP was terminated prior to June 2013. Under the aggregate program, the City could require this $50 penalty fee be absorbed by the supplier and factored in their bid; the water customer could be responsible, or lastly and not recommended, the City could pay for the termination fee.
Committee agreed to promote the program through the City’s website allowing the customer to decide if they want to make the change with the customer bearing full responsibility for any termination fee.
RECOMMENDATIONS TO THE FLAGG CREEK INTERGOVERNMENTAL AGREEMENT
6. Mr. Drazner referred to his recommendations whereby he summarized the suggested changes. The committee agreed to accept all recommendations and authorized him to present the proposed agreement to the Park District Board for their review.
SECOND REVIEW OF THE FY13 GENERAL FUND BUDGET & POTENTIAL PROPERTY TAX LEVY
7. The Mayor began by suggesting reducing line items in the Legislative Fund: eliminate $3862 – ICSC-NV; reduce Rotary to $1K; eliminate NLC – $1K; reduce Library Reimbursements to $8K; reduce Pool Reimbursement to $3K; reduce Clerks operating supplies to $3500; reduce Finance Dept. Conference to $600; reduce ICSC Conference by $1,200; in General Admin fund, remove ICSC of $1931. Other line items were questioned and clarified.
Chief Ruth stated that in Police Expenses, Conference amount can be reduced from $5048 to $1948, and transferring difference to the Drug Asset Forfeiture account. He further offered to remove $13,520 from Contractual to ETSB Fund.
The Recreation Department’s operating supplies account can remove $3K for Garden, and remove ICMA and ILCMA dues bringing total to $1240. In ESDA, reduce Maintenance of Equipment to $500; also remove the cell phones reducing maintenance by $600. In addition, remove portable radios for $6K reducing Operating supplies to $3880.
In the Infrastructure Improvement Capital projects fund it was decided to postpone a $400K street improvement, and try for a grant to improve 57th Street under the FAU route.
At this point, Ald. McDermott said instead of continuing with this method, he would prefer to see a budget where $1.4 million in additional cuts is removed from the budget. Discussion ensued and it was agreed to have options of what more cuts would affect the City’s operation. Finance Dir. Drazner was instructed to present a summary for the past 10 years and what the deficit was during that period. He will also present a budget showing what effect a $1.4 million cut might look like. This should be ready for the next Finance meeting on November 29.
8. Having no further business to discuss a motion was made and seconded to adjourn at 7:53 p.m.
Dated: ______________________ __________________________
Steven Jasinski, Chair