KANE COUNTY FINANCE AND BUDGET COMMITTEE WEDNESDAY, SEPTEMBER 30, 2015 Minutes
County Board Room
9:00 AM
Kane County Government Center, 719 S. Batavia Ave., Bldg. A, Geneva, IL 60134
1.
Call to Order Chairman Hoscheit called the meeting to order at 9:04 AM. Attendee Name Deborah Allan Theresa Barreiro Cristina Castro Drew Frasz Thomas Smith Susan Starrett John Hoscheit
Title Board Member Board Member Board Member Vice-Chair Board Member Board Member Chairman
Status Present Late Late Present Present Late Present
Arrived 9:14 AM 9:08 AM
9:15 AM
Also Present: Co. Bd. Chairman Lauzen; Co. Bd. Atty. Kinnally; Co. Bd. Member Dahl; Finance Dir. Onzick & staff Waggoner, Dobersztyn, Calamia, Ramer-Holmes, Carlstrom, Keovongsak; Bldg. Mgmt. Exec. Dir. Biggs; ITD Exec. Dir. Fahnestock & staff Garza, Chidester, Lake, Peters; Sheriff Kramer; KDOT staff Hopkinson; HRM Exec. Dir. McCraven; Auditor Hunt & staff Rich; Chief Judge Brawka; Treasurer D. Rickert & staff Brady; Asst. State's Atty. Niermann; Health Dept. Exec. Dir. Jeffers & staff Snowden; Court Svcs. Dir. Aust; and members of the press & public. 2.
3.
Approval of Minutes: August 26, 2015 RESULT:
APPROVED WITH VOICE VOTE [UNANIMOUS]
MOVER:
Drew Frasz, Vice-Chair
SECONDER:
Deborah Allan, Board Member
AYES:
Deborah Allan, Theresa Barreiro, Cristina Castro, Drew Frasz, Thomas Smith, Susan Starrett, John Hoscheit
Public Comment None
4.
Treasurer's Report (D. Rickert) Referencing a written report included in the agenda packet, Treasurer Rickert reported that the yield on all county investments for August was .67%. He reported that in order to improve our investment structure they are looking at the secondary market for purchases, and there have been some significant opportunities in that area. He noted they used to purchase in million dollar increments in the initial offerings and now they are able to look at smaller pieces and devote a significant amount of time to doing that, which is improving our yield.
5.
Finance Director's Report (J. Onzick) Monthly financial reports were included in the agenda packet. Finance Dir. Onzick reviewed his monthly report, noting that with the exception of the Coroner's Office, all of the variances shown in the reports for the most part are normal, related to timing differences. The Coroner's Office continues to trend about 1% over the year-to-date budget. Onzick said he had no new information that would cause him to change that projection. They continue to project that they will be about 7% ($55,000) over the annual budget
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Minutes
Finance and Budget Committee
September 30, 2015
assuming there will be 150 autopsies performed for the year. Onzick said they continue to closely monitor the Sheriff's Office budget performance. According to the standard budget report, the Sheriff's Office is within the year-to-date expense budget for the General Fund. However, according to the custom YTD report total revenues are about $509,000 under budget, and total expenditures are about $183,000 over budget for net unfavorable variance of $692,000. The major sources of the variance continue to be the decrease in Chancery Foreclosure Fees, Eviction Fees, and Adult Prisoner Board & Care expense that was removed from the budget earlier in the year. If those variances are excluded, the net remaining variance is an unfavorable $157,000. This represents an $82,000 improvement over last month's variance. Overtime in Corrections is the major contributing factor to the negative expenditure variance. YTD, overtime hours are now running about 11% below 2014 levels. Onzick said they continue to closely monitor the Sheriff's budget performance and encourage him to continue to work toward reducing expenditures so as to be within the annual budget by year end. Onzick reported that sales tax collection and RTA sales tax collection is running 4.9% over prior year YTD. YTD state income tax revenue is running about 12.2% over prior collections. The General Fund contingency balance remains unchanged with roughly $1.2 million. However, there is a resolution on the agenda for consideration today for the Sheriff's Office Collective Bargaining agreement for Corrections employees which would utilize $700,000 of that contingency. He noted that 44% of the Capital budget is expended YTD, with about $5.2 million remaining. Purchasing Dir. Dobersztyn reviewed the monthly report that was included in the packet. Dir. Onzick thanked his staff for their hard work on the budget. (Barriero arrives @ 9:14 a.m.) He provided highlights from the budget presentation that was made at last night's Committee of the Whole meeting. (Starrett arrives @ 9:15 a.m.) He noted that thanks primarily to the Sheriff's Office, the budget gap has been closed. After adding back $333,702 to fund five Corrections officer vacancies, the Sheriff made an additional contribution of $665,159 through a combination of additions to revenue and cuts to expenditures. Onzick discussed the FY16 health insurance budget, noting that rates are estimated to be 13.4% higher than FY15 due to the one-time transition to a fully insured plan. Since only a 6% rate increase has been budgeted for FY16, Onzick proposed that the $900,000 difference be funded from the $1.6 million reserve in the Health Insurance Fund. Expenses over and above the 5% increased budget for dental insurance would also be funded from the Health Insurance reserve. The reserve would be partially replenished by the annual dividend we will likely receive from the IPBC. In subsequent years, the rate increase should be smaller, requiring less of a subsidy. Onzick discussed additional revenue coming from the Court Security Fee increase, noting there is an assumption built into the budget that we will increase Court Security revenue by about $600,000. In order to bridge the gap of the remaining revenue shortfall for Court Security, Onzick said he included a subsidy from the Public Safety Sales Tax Fund in the FY16 budget. Hoscheit acknowledged the tremendous effort required to come up with a balanced budget. He thanked everyone for their hard work. Co. Bd. Chairman Lauzen provided examples of Board members' commitment to fiscal responsibility. He noted there was no property tax levy increase for the fifth year in a row, less than a 2% increase in General Fund disbursements, paying down the debt by $5.7 million, the reserves comfortably meet our AA+ rating, the spirit of cooperation in working together on the Sheriff's Corrections CBA, etc. He also talked about the challenges ahead, noting that if the stock market is foreshadowing the economy, we have a recession coming up. He hoped we wouldn't have to use the reserves set aside. .
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Minutes
6.
Finance and Budget Committee
September 30, 2015
New Business A.
B.
Resolution: Authorizing an Intergovernmental Agreement to Establish an Agency Fund by Kane County for the Forest Preserve District of Kane County RESULT:
MOVED FORWARD WITH VOICE VOTE [UNANIMOUS]
Next: 10/7/2015 9:00 AM
TO:
County Board
MOVER:
Cristina Castro, Board Member
SECONDER:
Drew Frasz, Vice-Chair
AYES:
Deborah Allan, Theresa Barreiro, Cristina Castro, Drew Frasz, Thomas Smith, Susan Starrett, John Hoscheit
Resolution: Authorizing Search for Unidentified Bank Accounts This will provide the Auditor with appropriate authorization to make inquiries of area financial institutions. The Auditor is authorized by the state to maintain a continuous internal audit, which includes financial records of officers, agents and divisions of the county. RESULT:
MOVED FORWARD WITH VOICE VOTE [UNANIMOUS]
Next: 10/7/2015 9:00 AM
TO:
Executive Committee
MOVER:
Drew Frasz, Vice-Chair
SECONDER:
Cristina Castro, Board Member
AYES:
Deborah Allan, Theresa Barreiro, Cristina Castro, Drew Frasz, Thomas Smith, Susan Starrett, John Hoscheit
C. Resolution: Authorizing Contracts Providing 2016 Group Health, Dental, Vision, Life and Accidental Death and Dismemberment Insurance Plans through the Intergovernmental Personnel Benefit Cooperative (IPBC) and Approving Employee Contribution Schedule This authorizes contracts for health, dental and vision group insurance. Membership in the Intergovernmental Personnel Benefit Cooperative (IPBC) is effective January 1, 2016, which will be the county's first year of participation. RESULT:
MOVED FORWARD WITH VOICE VOTE [UNANIMOUS]
Next: 10/7/2015 9:00 AM
TO:
Executive Committee
MOVER:
Susan Starrett, Board Member
SECONDER:
Cristina Castro, Board Member
AYES:
Deborah Allan, Theresa Barreiro, Cristina Castro, Drew Frasz, Thomas Smith, Susan Starrett, John Hoscheit
D. Resolution: Authorizing Contract for Kane County Jail & Sheriff Facility HVAC Controls Project
E.
RESULT:
MOVED FORWARD WITH VOICE VOTE [UNANIMOUS]
Next: 10/7/2015 9:00 AM
TO:
Executive Committee
MOVER:
Susan Starrett, Board Member
SECONDER:
Deborah Allan, Board Member
AYES:
Deborah Allan, Theresa Barreiro, Cristina Castro, Drew Frasz, Thomas Smith, Susan Starrett, John Hoscheit
Resolution: Amending Kane County Financial Policies to Comply with Federal Uniform Grant Guidance
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Minutes
Finance and Budget Committee
September 30, 2015
This amends the Financial Policies to comply with the Federal Uniform Grant Guidance.
F.
RESULT:
MOVED FORWARD WITH VOICE VOTE [UNANIMOUS]
Next: 10/7/2015 9:00 AM
TO:
Executive Committee
MOVER:
Drew Frasz, Vice-Chair
SECONDER:
Susan Starrett, Board Member
AYES:
Deborah Allan, Theresa Barreiro, Cristina Castro, Drew Frasz, Thomas Smith, Susan Starrett, John Hoscheit
Ordinance: Amending Kane County Ethics Ordinance to Comply with Federal Uniform Grant Guidance This amends the current Ethics Ordinance to comply with the Federal Uniform Grant Guidance regarding penalties for those who intentionally violate the provisions of the Ethics Ordinance. RESULT:
MOVED FORWARD WITH VOICE VOTE [UNANIMOUS]
Next: 10/7/2015 9:00 AM
TO:
Executive Committee
MOVER:
Drew Frasz, Vice-Chair
SECONDER:
Susan Starrett, Board Member
AYES:
Deborah Allan, Theresa Barreiro, Cristina Castro, Drew Frasz, Thomas Smith, Susan Starrett, John Hoscheit
G. Resolution: Approving a Supplemental Budget Adjustment and Authorizing Execution of Collective Bargaining Agreement - Kane County Sheriff's Office (Corrections) FY2014 through FY2017 This authorizes both the execution of the Collective Bargaining Agreement for the Sheriff's Office Corrections for fiscal years 2014 through 2017, and approves the corresponding FY15 budget adjustment. The budget adjustment contains certain wage increases for fiscal years 2014 and 2015 that were not previously budgeted, and will be drawn from contingency. The total amount of the FY15 adjustment would have been $921,632, however, $221,354 had previously been accrued in FY14, therefore, reducing the remaining total needed for the FY15 budget adjustment to $700,278. RESULT:
MOVED FORWARD WITH VOICE VOTE [UNANIMOUS]
Next: 10/7/2015 9:00 AM
TO:
Executive Committee
MOVER:
Theresa Barreiro, Board Member
SECONDER:
Deborah Allan, Board Member
AYES:
Deborah Allan, Theresa Barreiro, Cristina Castro, Drew Frasz, Thomas Smith, Susan Starrett, John Hoscheit
H. Resolution: Authorizing FY15 Budget Adjustment Capital Project/Public Safety Sales Tax Funds This is FY15 budget adjustments to the capital project fund that will not increase the capital expenditures, but will appropriately align the projects with expenses. RESULT:
MOVED FORWARD WITH VOICE VOTE [UNANIMOUS]
TO:
Executive Committee
MOVER:
Cristina Castro, Board Member
SECONDER:
Theresa Barreiro, Board Member
AYES:
Deborah Allan, Theresa Barreiro, Cristina Castro, Drew Frasz, Thomas Smith, Susan Starrett, John Hoscheit
Kane County
Next: 10/7/2015 9:00 AM
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Minutes
I.
Finance and Budget Committee
September 30, 2015
Resolution: Adding Fees of the Clerk of the Circuit Court This adds fees for each alternate juror requested by a party, and increases revenue due to additional jurors.
J.
RESULT:
MOVED FORWARD WITH VOICE VOTE [UNANIMOUS]
Next: 10/7/2015 9:00 AM
TO:
Executive Committee
MOVER:
Cristina Castro, Board Member
SECONDER:
Theresa Barreiro, Board Member
AYES:
Deborah Allan, Theresa Barreiro, Cristina Castro, Drew Frasz, Thomas Smith, Susan Starrett, John Hoscheit
Resolution: Adjusting the FY15 Budget for Pretrial Program Expansion This is a budget adjustment for Court Services to expand the Pretrial Program. Kane County has been selected by the Administrative Office of the Illinois Courts (AOIC) as a pilot site for this evidenced based program. This expansion is needed in order to participate in the pilot program to implement a the Public Safety Assessment Court Pretrial risk assessment tool for bond call and pretrial services to bring the current program into compliance under the new and expanded evidenced based risk program, AOIC standards, and statutory guidelines.
K.
RESULT:
MOVED FORWARD WITH VOICE VOTE [UNANIMOUS]
Next: 10/7/2015 9:00 AM
TO:
Executive Committee
MOVER:
Cristina Castro, Board Member
SECONDER:
Drew Frasz, Vice-Chair
AYES:
Deborah Allan, Theresa Barreiro, Cristina Castro, Drew Frasz, Thomas Smith, Susan Starrett, John Hoscheit
Resolution: Authorizing Increase in Subsidy for Court Security A subsidy of $305,000 is needed in order to sustain operations through the end of the Fiscal Year. There is sufficient Fund Balance in the Public Safety Sales Tax Fund to fund this subsidy.
L.
RESULT:
MOVED FORWARD WITH VOICE VOTE [UNANIMOUS]
Next: 10/7/2015 9:00 AM
TO:
Executive Committee
MOVER:
Cristina Castro, Board Member
SECONDER:
Theresa Barreiro, Board Member
AYES:
Deborah Allan, Theresa Barreiro, Cristina Castro, Drew Frasz, Thomas Smith, Susan Starrett, John Hoscheit
Resolution: Authorizing a FY15 Budget Adjustment to Facilitate Implementation of CMS in Circuit Clerkâs Office at the Kane County Courthouse This is a housekeeping item as there is no net effect on the overall FY15 budget for this fund.
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Finance and Budget Committee
September 30, 2015
RESULT:
MOVED FORWARD WITH VOICE VOTE [UNANIMOUS]
Next: 10/7/2015 9:00 AM
TO:
Executive Committee
MOVER:
Cristina Castro, Board Member
SECONDER:
Susan Starrett, Board Member
AYES:
Deborah Allan, Theresa Barreiro, Cristina Castro, Drew Frasz, Thomas Smith, Susan Starrett, John Hoscheit
M. Resolution: Authorizing an Additional Contribution to IMRF and SLEP Pension Plans
An adjustment will be made to the fiscal year 2015 budget to reflect the allocation of the abovementioned additional payment of $500,000 in proportion to the unfunded actuarial liability balance. RESULT:
MOVED FORWARD WITH VOICE VOTE [UNANIMOUS]
Next: 10/7/2015 9:00 AM
TO:
Executive Committee
MOVER:
Cristina Castro, Board Member
SECONDER:
Theresa Barreiro, Board Member
AYES:
Deborah Allan, Theresa Barreiro, Cristina Castro, Drew Frasz, Thomas Smith, Susan Starrett, John Hoscheit
N. Resolution: Approving the FY16 Draft Budget to be Placed on Public Display This allows the FY16 DRAFT budget document to be placed on public display on October 26th, 2015. The document will be available on the County's website and hard copies will be available for public viewing in the County Board Office and the County Clerk's Office. RESULT:
MOVED FORWARD WITH VOICE VOTE [UNANIMOUS]
Next: 10/7/2015 9:00 AM
TO:
Executive Committee
MOVER:
Susan Starrett, Board Member
SECONDER:
Theresa Barreiro, Board Member
AYES:
Deborah Allan, Theresa Barreiro, Cristina Castro, Drew Frasz, Thomas Smith, Susan Starrett, John Hoscheit
Chairman Hoscheit asked for the committee's consent to move a resolution amending the code regarding Health & Sanitation that wasn't on the agenda to the Executive Committee. There was no objection to moving it forward. 7.
Old Business None
8.
Court Case Management Project Report (R. Fahnestock) ITD staff Garza reported staff has been busy working on the details of the project. A written report was included in the packet. She noted there were still some development issues pending.
9.
Auditor's Report (T. Hunt) Auditor Hunt provided highlights from the monthly report included in the agenda packet. Referencing a PowerPoint presentation, he reviewed the Auditor's Quarterly Report.
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September 30, 2015
10. Reports Placed On File RESULT:
PLACE WRITTEN REPORTS ON FILE [UNANIMOUS]
MOVER:
Susan Starrett, Board Member
SECONDER:
Theresa Barreiro, Board Member
AYES:
Deborah Allan, Theresa Barreiro, Cristina Castro, Drew Frasz, Thomas Smith, Susan Starrett, John Hoscheit
11. Executive Session (IF NEEDED) None 12. Adjournment RESULT:
ADJOURNED BY VOICE VOTE [UNANIMOUS]
MOVER:
Cristina Castro, Board Member
SECONDER:
Susan Starrett, Board Member
AYES:
Deborah Allan, Theresa Barreiro, Cristina Castro, Drew Frasz, Thomas Smith, Susan Starrett, John Hoscheit
This meeting was adjourned at 9:48 AM. Ellyn McGrath Recording Secretary
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