Finance Advisory Committee

MINUTES FINANCE ADVISORY COMMITTEE CITY OF DEKALB OCTOBER 27, 2015 Call to Order The Finance Advisory Committee meeting of October 27, 2015, was called to order at 5:01 p.m. by Committee Chair Peddle. Roll Call for Attendance Committee members present were Mike Peddle, Connie Golden, Lynn Neeley, David Conlin, and Tom Teresinski. Absent committee members were Mike Verbic and Ron Partch. City staff present were City Manager Anne Marie Gaura, Finance Director Cathy Haley, Police Deputy Chief Wes Hoadley, Fire Deputy Chief Jeff McMaster, Interim Public Works Director/City Engineer John Laskowski, Community Development Director Ellen Divita and Account Technician Carri Parker. Absent executive team member was Assistant City Manager Patty Hoppenstedt. Approval of Minutes Minutes from Finance Advisory Committee July 14, 2015, Joint City Council and Finance Advisory Committee September 14, 2015, and the Joint City Council and Finance Advisory Committee September 28, 2015 were approved by omnibus, Committee Member Teresinski moved and Committee Member Neeley seconded, and they were unanimously approved. City Council Meeting Summary Committee Chair Peddle requested the Finance Director Haley provide a summary of the previous night’s City Council meeting with regard to the first reading of the water rate recommendations. Finance Director Haley summarized the meeting by stating the agenda item went to City Council with the Finance Advisory Committee recommendations as follows: The fund balance would be analyzed and the capital improvement projects would be reviewed prior to entering in to the States Revolving Fund program. Prior approval of taking out this loan would require City Council approval. 3 percentage points of the annual 4.5% increase would be put in to a separate revenue account to be used for capital expenditures only. Discussion went on to state that the reserve above and beyond the 25% operating balance monies should be reserved for Capital as well. Committee Member Teresinski asked for clarification of the about creating a separate Capital fund. Finance Director Haley stated the current water fund is for operations and all capital, except for new water main replacement. Finance Director Haley recommended a separate fund balance reserve be created to separate out capital and operations in fund 60 leaving fund 61 for new water main replacements only. This will be on the agenda for 2nd reading on November 9. Finance Advisory Committee approved these minutes on November 10, 2015  Finance Advisory Committee Meeting October 27, 2015 Page 2 of 3 Elizabeth Hennessy, William Blair Ms. Hennessy communicated her presentation on the Property Tax Limitation Law (Senate Bill 318), Aggregation Service Extension and Debt Service Extension (see Power Point presentation). Committee Chair Peddle clarified that the information for the 2015 levy is collected in the calendar year 2016. Moody’s October 2015 Ratings Report Ms. Hennessy summarized the Moody’s Investor Rating report in her presentation (see Power Point presentation). Committee Chair Peddle communicated to the citizens who have read this report, this is the most irresponsible report that he has ever read. Moody’s have not done their homework and have the reputation of doing so. Saying that we are dependent on State monies is absurd. We cannot continue to fund our pensions at the lowest possible contributions. Moody’s is suggesting what the state suggests. Committee Member Neeley left 6:27 p.m. Meeting break from 6:31 – 6:38 p.m. (all returned from break) 2015 Tax Levy Finance Director Haley presented to 2015 Tax Levy presentation to the committee (see Power Point presentation). Committee Chair Peddle stated that the tax levy this year is multi-facetted. There are other options, the tax levy for tax year in 2015 may need to be much more strategic. Committee decided for another meeting for further discussion. Public Participation Bessie Chronopoulos questioned if there are communications between other entities. Finance Director Haley stated that the school district is already capped so there will not be an increase. Ms. Hennessey responded that in 2018 (she believes) the school district bonds will be going up but not as high. City Manager Gaura recommended the public read the read the memo stating what the increasing amount of the school district. She pointed out that the City decreased, and the school district increased. Mr. Brown asked about the assessed value of $515 million for the year 2014 is done 28% $715 million in 2010. What was the assessed value of 2015? Finance Director Haley explained that the increase to 2015 is an estimate of $471 million. Community Development Director Ellen Divita stated that Mr. Brown had stated different numbers. Mr. Brown explained his numbers came Finance Advisory Committee approved these minutes on November 10, 2015  Finance Advisory Committee Meeting October 27, 2015 Page 3 of 3 from the Chronicle. Communities Chair Peddle stated that the Chronicle could have included the TIF funds which is not included in the EAV. Confirm Next Meeting Date and Time An email will be circulated to committee members to schedule next meeting. Adjournment Committee Chair Peddle requested a move to adjourn, moved by Committee Member Neeley and seconded by Committee Member Golden. Meeting adjourned at 7:39 p.m. __________________________________________ CARRI PARKER, Account Technician Finance Advisory Committee approved these minutes on November 10, 2015