City Council

MINUTES SPECIAL JOINT MEETING OF CITY COUNCIL AND FINANCE ADVISORY COMMITTEE CITY OF DEKALB May 15, 2012 The City Council of DeKalb, Illinois, held a Special Joint Meeting with the Finance Advisory Committee on Tuesday, May 15, 2012 in the Council Chambers of the DeKalb Municipal Building, 200 South 4th Street, DeKalb, Illinois. Notice was given and the meeting was called pursuant to the provisions of Chapter 2, Section 2.05 of the Municipal Code of the City of DeKalb, Illinois. Mayor Povlsen called the meeting to order at 6:00 p.m. A. ROLL CALL: City Clerk Wright called the roll and the following members of City Council were present: Mayor Kris Povlsen, Alderman David Jacobson, Alderman Tom Teresinski, Alderman Kristen Lash, Alderman Ronald Naylor and Alderman Monica O’Leary. Absent were: Alderman Brendon Gallagher and Alderman David Baker. Also present were members of the Finance Advisory Committee: David Conlin, Lon Clark, Connie Golden and Mike Peddle. Absent were Ryan Gifford and Gary Peele. Also present were: Rudy Espiritu, Assistant City Manager; Dean Frieders, City Attorney, Laura Pisarcik, Finance/Purchasing Director; Jeremy Alexander, I&T Director, Michelle Anderson, Assistant Human Resources Director, Jeff Birtell, I&T Technician, and Diane Wright, City Clerk. Mayor Povlsen announced that Ald. Gallagher and Mr. Peele contacted him and advised they would be unable to attend the meeting. B. CONSIDERATION ITEM: 1. REVIEW OF PROPOSED FY-2013 BUDGET Ms. Pisarcik introduced Mr. Ron Amen of Lauterbach and Amen, recently contracted with the City as its auditors. Mr. Amen provided a background and services provided by his firm, and noted that they specialize in municipalities. Mr. Amen discussed the recent news regarding the City of Dixon and the issues surrounding the alleged embezzlement of funds. He explained to Council the internal controls that are in place in DeKalb and emphasized it is critical for the City City Council Special Meeting May 15, 2012 Page 2 of 3 to have checks and balances. Discussion ensued regarding the appointment of an audit committee; Mr. Amen stated he has had experience with the same. Council asked further questions of Mr. Amen regarding reporting and procedures. Ms. Pisarcik introduced Ms. Dee Coover, Executive Director of the Public Library who presented the Library’s budget, and noted that this budget was passed by the Library Board last month. She pointed out there will be no tax increases. The Library, she said, has set two major goals: 1) work more closely with the high school to explore options for all students to have access to the Library; and 2) increase cardholders by 10%; currently there are 17,000 active cardholders. She stated that the Board approved the addition of four full-time positions for the upcoming year. Mr. Frieders next discussed the corporate representation of the City through the Legal Department. He noted that the City contracted out legal services last September through Mickey Wilson, et al. This past Council meeting, he added, Council approved a new agreement with his firm at a fixed fee of $1,700 per month for the upcoming fiscal year, which will amount to $15,000 per month in savings, or $180,000 annually. He pointed out that the City contracts other outside attorneys for labor negotiations and other complicated legal matters. Mr. Espiritu added that the rest of the budget is the same as previously He noted that all legal fees have been charged to legal and not individual funds; this procedure will be changed. Ald. Naylor requested a summary of legal expenditures. Mr. Espiritu replied staff could provide it. Ms. Pisarcik presented the Legislative budget which encompasses the Mayor and City Council along with Human Services funding. Mr. Espiritu pointed out that the Red Cross is not applying for Human Services funding this year; their previous allocation has been $7,000. He added that this amount will remain in the total and Council can decide on this allocation. Ald. Jacobson questioned the insurance figure for Council. Mr. Espiritu replied that due to the Health Insurance Portability and Accountability (HIPAA), the total was divided among the accounts. However, Mr. Frieders has opined that it is not a HIPAA issue and if it is the direction of Council to put actual figures, staff will provide them. Ald. O’Leary asked if the account 8376 could be increased so that Council may participate in more training. Mayor Povlsen suggested that specifics be suggested by Council for training. Mr. Peddle added that it is appropriate to consider training for Council but suggested looking at departments’ training budgets and address that also. Ald. O’Leary asked that a line item be added for computers for Council so that copying of Agendas be eliminated. This issued was discussed at length. Ms. Golden stated that it is apparent staff needs their office computers updated. Ms. Pisarcik discussed the Municipal Band budget and pointed out that all members including the new director are contracted. She added that they have requested to purchase some music this year. Ms. Wright presented the City Clerk’s budget, noting that the only significant change was an increase in part-time salaries due to the addition of a part-time Deputy next fiscal year. Mayor Povlsen stated that the full-time salary will be discussed as Council may decide to reduce it. Ms.  Special Meeting May 15, 2012 Page 3 of 3 Wright stated there are many responsibilities and duties associated with the office. Mr. Peddle asked if she believed that certificate was important for a Clerk; she agreed. Mr. Espiritu discussed the Administrative Services Department and introduced Mr. Alexander, Ms. Anderson and Ms. Pisarcik who are Directors of the divisions. He noted that the budget includes a part-time assistant to be shared by Human Resources and Legal along with the addition of four part-time clerks in Finance. Also, he pointed out an increase in 8285 in the IT budget which includes a finance software package. Ms. Pisarcik discussed the package and answered questions on its compatibility. Questions were asked and discussion continued regarding the four additional part-time clerks in Finance. Ms. Pisarcik explained their duties and the need for them. Additionally, the concern over lack of security measures was discussed for the lobby. Mr. Espiritu noted at the end of discussion that staff will prepare a Memo for the May 29th Council meeting, incorporating Council’s and the Finance Advisory Committee’s comments. A Public Hearing is scheduled on the 29th, he added, with the first reading of the budget ordinance. Ald. Teresinski discussed his concern about drawing down the worker’s compensation fund balance, and stated this must be reviewed. Ald. Naylor discussed the negative fund balances and making them “whole,” and not transferring motor fuel tax (MFT) money into the General Fund. He noted that the goal is to have a 25% balance in the General Fund, but he would like to take care of the deficits in these funds. Ald. Jacobson stated it is a disservice to say the General Fund has an 11% balance when other funds are in a deficit. Ald. Teresinski stated that the operating budget must be reduced by $500,000. Mayor Povlsen stated these issues will be revisited next week at the budget hearing. Mayor Povlsen thanked Council, the Finance Advisory Committee and staff for their work on the budget. MOTION Ald. Lash moved to adjourn the meeting; seconded by Ald. Jacobson. Motion carried on voice vote. Mayor Povlsen declared the meeting adjourned at 8:00 p.m. DIANE WRIGHT, City Clerk Approved by City Council May 29, 2012