Finance & Administration Committee

         

 

Minutes of a regular meeting of the Finance and Administration Committee of the City of O’Fallon, held at the Public Safety Building, 285 N. Seven Hills Road, O’Fallon, Illinois on November 24, 2014.

 

CALL TO ORDER: 5:00pm *Special Time*

 

ROLL CALL: COMMITTEE MEMBERS: Bennett, Chairman, Drolet, Gerrish

Absent: McCoskey, Albrecht

NON-COMMITTEE ALDERMEN: Holden, Meile, Roach, Hagarty, Cozad, True

STAFF LIAISON: Evans, Denton

GUESTS/RESIDENTS:  Malare, Pitts, Robichaux Rider

    

Approval Minutes: - September 22, 2014 Motion Gerrish, Second Drolet All Ayes. Motion carried.

   

 

Item A: Tax Levy: Director of Finance presented the proposed tax levy for tax year 2014.  The rate setting EAV is the base for the next years estimate as provided by the county which they project to be $637,601,201, only $865,000 more than last year’s EAV.   However, the county is also expecting to apply a 2% O’Fallon Township multiplier and a 2% negative Caseyville multiplier, thereby negating any change.  Due to the large number of petitions filed with the Board of Review to review property assessments resulting in possible loss of assessed values, the projected EAV was reduced by $850,000.   This reduction resulted in the 2014 estimated EAV to be almost the same as last year’s rate setting EAV, or $ 636,751,201.  Staff recommends requesting the same dollar amounts /levy rate as requested last year with a few exceptions.   The amount requested was increased for IMRF by $122, 902 and lowered for ambulance by $122,866.  This adjustment was required in order to get the IMRF rate in step with the current expense.   The library levy request remained the same as last year.  Director of Finance reminded the aldermen that we are requesting the dollar amounts, not the tax levy rate.  So, if the EAV is actually higher, we will get the same dollars requested, but the rate will be lower, and vice versa, if the EAV is lower, the rate will be higher in order to get the same dollar amount.  Aldermen Drolet asked about the 4% Loss of Collections and the Director of Finance said that she will most likely decline that increase since the City doesn’t normally have much in the way of bad debt.   All agreed.     Director of Finance also gave several scenarios as to what the tax levy rate would increase and how much additional a  homeowner would pay if the Aldermen were interested in increasing the General Fund in order to get additional funds for street projects. There was no interest or discussion of increasing levy rate.   Motion to approve the proposed 2014 Tax levy made by Drolet, second by Gerrish.  All Ayes.

 

Other Business:

 

         Item A: Social Media Policy:  Director of Finance explained that these were discussion points and no action needed to be taken.  She explained that the Personnel code already had a detailed policy regarding social media in the workplace.  Alderman Drolet commented that he was more interested in a policy regarding the posting of social media on the City’s official social media site and what mechanism was in place to override a posting, should it be required.   After some discussion, no formal suggestions were made in formulating a policy.

 

         Item B: Fraud Policy:  Alderman Bennett suggested Director of Finance investigate the possibility of doing an IT Audit as part of our fraud policy.  Director of Finance explained the internal control/fraud evaluation the auditors do annually.   As Alderman Drolet pointed out, only about 6% of fraud is discovered during an audit.   There was discussion of looking into an anonymous tip line to an independent 3^rd party for employees to use.  Director of Finance will research and report findings.   A written fraud policy will also be developed for distribution to employees.

 

Motion to Adjourn: Gerrish, Second Drolet   All Ayes. Motion carried.                                              

Next Meeting:   TBD