FINANCE AND ADMINISTRATION
MINUTES
March 27, 2006
Minutes of a regular meeting of the Finance and Administration Committee of the City of O’Fallon, held in the Mayor’s Conference Room, City Hall, 255 S. Lincoln, O’Fallon, Illinois on March 27, 2006. CALL TO ORDER: Time: 5:30 p.m.
ROLL CALL: MEMBERS _Medford - X____ _Reckamp - _____
_West - X____ _Drolet - X_____
_Grogan - X____
STAFF LIAISON: Dean Rich, Alderman Albrecht, True, and Schmitt
Approval of the minutes from February 27, 2006____ __________________________
___________________________
Item 1 Old Business
Alderman True reported on the cost of the Sister City program. The local cost is $10.00 per year, the state cost is $25.00 per year and the National Sister City Council cost is $438.00 based on population. The next step is to form a committee to work the program details of selecting a city and organizing a volunteer citizen committee to support the Sister City program. Alderman True volunteered to chair the committee and Alderman Grogan volunteered to help. Alderman True will report on the program at the April meeting.
Item 2 Budget Status
Director of Finance reported the draft budget is to council and the budget will be on first reading Monday, April 3rd with a public hearing and final approval on April 17th. As there were no questions on the draft, the Director of Finance reviewed the current budget year-to-date (11 months)(attachment 1). Eleven months into FY 2006 the revenue has generated at 93% ($31,922,962) and expenses are 92% ($31,217,705) and projections are for a successful year.
Item 3 Economic Development Review/Funding
Director of Finance reviewed the history and current status of economic assistance agreements and briefed the committee on two upcoming programs. Subaru of O’Fallon approached the city in September, 2005 and asked for SSA assistance with a $1,642,590 dealership. Since that time, the cost has grown 23% to $2,029,840. Mr. John Hanna has now asked the city for additional economic assistance in the form of a sales tax rebate. After much discussion and thorough review of the presented financial information staff recommended a $150,000 sales tax rebate, 50/50 for NLT 10 years. A formal proposal will be presented at the next committee meeting. Director of Finance also informed the committee that both SSA and sales tax rebate talks continue with Frieze Harley
Davidson.
Item 4 Personnel Manual Review
It has been several years since the last major revision of the personnel manual and new issues are surfacing. The Director of Finance gave as an example the sick leave policy and specifically the lack of a formal policy on the donation of sick leave. An informal policy has allowed employees to donate their accrued sick leave to a needy fellow employee. The current requirement for review surfaced when employees were donating hours that they could not receive compensation for (banked hours in excess of 480 hour maximum reimbursable hours per career). In addition, employee earning hours at a lesser rate ($19.00 per hour) donating to an employee earning at a higher rate ($31.00 per hour). This informal policy could result in spending city money without council approval. A complete review and a legal opinion will take at least three months.
ADJOURNMENT: 6:00 p.m._________ PREPARED BY: ___Dean Rich _
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