Finance & Administration Minutes

           

 

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 April 25, 2016.

 

CALL TO ORDER: 5:30 p.m.

 

ROLL CALL: COMMITTEE MEMBERS: Bennett, Chairman, Albrecht, Drolet McCoskey, Smallheer-Absent, Roach, Kueker

NON-COMMITTEE ALDERMEN: Holden, Cozad, Hagarty, Gerrish

STAFF: Evans, Funk, Denton, Randall, Litteken, Cavins, Stevenson

GUESTS/RESIDENTS: Malare, Zelms, Pitts

      

Approval Minutes: March 28, 2016 Motion Albrecht, Second McCoskey

 All Ayes. Motion carried.

     

 

Item A: Motion to approve Resolution Authorizing the Director of Finance to Secure a Lease/Purchase agreement for Equipment/Vehicles for FY 2016-2017:  Director of Finance explained that this is the annual resolution authorizing the Director of Finance to secure/continue lease purchase agreements for vehicles and equipment approved in the budget. This action allows the Director of Finance to enter into agreements with local banks that spread the cost of vehicles/equipment over a specific period of time, not to exceed 5 years.  Police vehicles are usually 3 years and some special use vehicles/equipment are for longer periods depending on the projected useful life.   Motion to approve by Albrecht, Second by Drolet

 

Director of Finance reported that Request for Proposals were issued for auditing services for the years ended April 30, 2016, 2017 and 2018.   The City received four proposals.  Stopp and Van Hoy submitted the low bid of $ 32,000 for 2016, $33,000 for 2017 and $34,000 for 2018.  Stopp and Van Hoy are located in Creve Coeur, MO.   Staff contacted the references provided and all were pleased with their services.  The audit will begin late June with completion by late September.   Their staff will be on site for 1-2 weeks.   Staff explained that the current auditors, Scheffel Boyle proposal came in at $49,950.   Motion to approve by McCoskey, Second by Albrecht

 

 

 

Director of Finance said that the City has grown substantially since the 2010 Census due to annexations and the completion of new subdivisions.  Staff is estimating an additional 2,400 residents which equates to approximately $350,000 of additional revenue per year.  Although the cost of doing this special census will cost approximately $150,500, it will more than pay for itself.  Staff hopes to start the special census over the summer months and have the final census report by the Fall.  Motion to approve by Albrecht, Second by Roach

 

 

Item A: Fee in Lieu of Taxes calculation: Director of Finance explained how the fee in lieu of taxes was originally calculated.  The amount was based on an original list of administrative employees’ salaries that were being paid out of the enterprise fund in FY 13.  It was suggested by the Aldermen that all administrative salaries should be reflected in the General Fund.  Therefore, a fee in lieu of taxes was calculated based on these original salaries and any benefits also being charged to the Enterprise Funds.  Each year that original amount is increased based on the budgeted increase. For example, if salaries increased by 3%, that amount was increased by 3%.  Staff explained that there is no scientific method for this calculation, it is just based on that original point in time.  Alderman Roach wanted to know what percentages these salaries were based upon.  Staff explained that there really was no basis for the percentages, that this amount was based on what was being allocated at that specific time.  

 

Motion to Adjourn: Albrecht, Second Roach All Ayes. Motion carried.                                                         

Next Meeting:   TBD