MINUTES OF THE FINANCE COMMITTEE MEETING
CITY OF COUNTRYSIDE – CITY HALL
OCTOBER 22, 2012 – 6:00 P.M. COUNCIL CHAMBER ROOM

1. The meeting called to order at 6:00 P.M. Present: Chairman Steve Jasinski; Alderman Sean McDermott; Alderman Karen Michalczyk, Alderman Scott Musillami. Also present: Alderman James Jasinski; Alderman Bob Pondelicek, Alderman John Von Drasek; City Administrator Gail Paul; Finance Director Steve Drazner; DPW Essig, Asst. Administrator Peterson, Police Chief Ruth, DC Novak, Deputy Clerk Bartelt, ESDA Director Steve Norman, Planner Swanson.

APPROVAL OF MINUTES

2. The minutes of September 24, 2012 were approved as submitted.

ACCEPTANCE OF CAFR & MANAGEMENT LETTER FOR FY12 AUDIT

3. Brian LeFevere and Jim Savio of Sikich LLC presented financial highlights regarding the management letter and audit. This CAFR is on file and available for inspection and will also be posted to the City website. It was noted that the City received a Certificate of Achievement for Excellence in Financial Reporting for the FY ended 4-30-11. Sikich further stated that on pages 3-5 of the independent auditor’s report there is a good narrative of the City’s finances for FY12. Finally, fund balances continue to be in good shape for a city which relies primarily on sales tax revenue. There were no questions or concerns from the committee.

TREASURER’S REPORT FOR 9-30-12

4. Chair Jasinski presented the Treasurer’s report for questions and/or comments. Fin. Dir. Drazner gave an overview on the year-to-date figures. With no questions, this item will be approved at the next Council meeting.

PRELIMINARY BUDGET REQUESTS FOR GENERAL& CIP FUNDS

5. Fin. Dir. Drazner began the budget review for Legislative, #411. The changes decided were to delete $1K assigned to Rotary Club in the memberships and licenses account and add $800 for the West Suburban Chamber in that same account. Also, $700 was also added to the Senior Citizen account to bring it up to $1,000.

6. Dep. Clerk Bartelt presented City Clerk’s department, #412. There was a $10,000 increase from the prior year, with approximately $6K attributed to the salary and benefits accounts. The remaining $4K increase was split among Legal Notices, up $1K, Contractual Expenses $1K, with the remaining difference spread among the other accounts. Chair Jasinski questioned whether the IIMC training was necessary. DC Bartelt responded that to remain a certified municipal clerk continuing education is required. Ald. Michalczyk questioned if we should go thru RFP’s for legal publications. Staff will contact the local paper for their legal publication costs.

7. Fin. Dir. Drazner presented the Finance department, #413, noting budget adjustments for Auditing costs, Conference & Travel, and contractual Services. This budget reflects training for 3 finance staff and would allow two to attend either the State or National conference. Mandatory increases were shown in the Bond Interest and Principal accounts. Contractual increased by $2K to allow for website changes.

8. Asst. Adm. Peterson presented BFPC, #414, noting that Consulting Services has decreased from the current year due to not needing the services for the promotional testing. Otherwise, all other expenses are static.

9. City Planner Swanson presented the Planning & Zoning Fund, #415, with no real increases for the 2014 FY.

10. Adm. Paul presented General Administration, #416, and noted an increase of one person to the Retiree Insurance allowance fund. She further pointed out that depending on an outsourcing decision for dispatch, there could be 2-4 people on unemployment. They should know in about a month. The Police Pension account is based on actuarial figures and will be updated soon. Labor Negotiations will be involved in arbitration hearings in Feb, 2013 and should be settled sometime this year. Also under the Tax Sharing account budget, the Westfield Ford agreement accounts for the increase.

11. In IT Department, #418, the budgeted amount increases slightly. The Operating Capital fund shows zero since $15,000 for two server replacements were budgeted in the CIP Fund. There was a question about possibly going to a cloud service but there was some concern about the security of such a service so for the time being, this will stay in-house.

12. DPW Supt. Essig reported on the public works capital improvement items in the CIP Fund. Biannual inspection of sidewalk replacement is $30K. Street resurfacing will approximate $800,000, $500,000 of which is in the CIP Fund with the balance to be budgeted in the MFT Fund. The Welcome to Countryside signs are being worked on to incorporate the new City Center logo and budgeted at $72,000. $150,000 is budgeted for the reconfiguration of the Countryside Park BMX project. A suggestion was made to have the Recreation Committee review this plan to see if there is another use for the area.

13. ESDA Coordinator Norman stated that a vehicle should be replaced. A 99 vehicle acquired free from Brookfield. Adm. Paul suggested that a vehicle can be transferred to ESDA when the time comes. The $25,000 budgeted for a new ESDA vehicle will be deferred and should be removed from the CIP Fund budget.

14. Police budget contained no major changes from the current year. There was some discussion about the reason for two SWAT programs although it was decided that no changes should be made to the requested budget. Chief Ruth stated that his goal was to bring a flat budget in for the coming year. He pointed out account 5120, to include the addition of the cameras in Ideal Park in case some repairs are needed as a contingency; also depending if the trees are trimmed or height raised for cameras to have a clear view.

It was noted the City is a member of two SWAT teams. NIPAS goes South as I-55 and north of the Wisconsin border. It was asked if the other SWAT membership could fill the void and save a number of days an officer is off duty in the City. The Chief will check if there is a duplication to see if we need to be in both SWAT teams. Other changes: under 5890, the account was increased $500 for animal pickup. Under 6520, for printing costs due to the CPA program, annual report and power point demonstrations.

15. Dir. Drazner pointed to the bigger picture surrounding the Property Tax levy. Fin. Dir. Drazner stated that the amount currently in the requested budget has $1,398,796 for the property tax levy (to pay Series 2008 annual debt service) which is after subtracting $75,000 anticipated from the new gaming tax. Different options were presented, most of which would affect the capital projects just reviewed. Ald. McDermott stated that Staff was directed to reduce the budget by $500,000. Dir. Drazner stated that we can defer projects or eliminate them. There are 6-7 of the projects that would come up to the $500K amount.

16. Adm. Paul suggested that repaving the Bob-O-Link alley with regular materials could save $125,000. Dir. Drazner emphasized that the savings for potential outsourcing of 911 Center is not included in these figures and could save at least another $200,000. After additional discussion among all elected officials, it was decided that in order to reach the $500,000 abatement target, $200,000 cost savings would be derived from E911 outsourcing, $125,000 from changing the Bob-O-Link alley paving project from Green to Non-green, $25,000 from deferring the ESDA vehicle purchase, $75,000 from the gaming tax, and approximately $75,000 from applying the surplus in the requested budget towards the abatement. All of these items add up to $500,000.

17. Dir. Drazner asked the Committee if November 19^thwould be better than November 26^thto avoid any scheduling conflicts with the Thanksgiving holiday. All concurred that 11/19/12 would work for the next meeting date.

18. Adm. Paul asked if the Council is agreeable to continue the practice of hiring an independent actuary again to determine the annual required contribution without the spike. Council agreed.

19. There being no further business, a motion to adjourn @ 7:40 pm was carried unanimously.

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Dated: Chair Jasinski