DeKalb Times

DeKalb County Finance Committee met Nov. 6.

Here is the minutes provided by the committee:

The Finance Committee of the DeKalb County Board met on Wednesday, November 6, 2019, in the Administration Building’s Conference Room East. Chairman Bagby called the meeting to order at 7:00 p.m. Those Members present were Mr. Scott Campbell, Mr. Steve Faivre, Mr. John Frieders, Ms. Dianne Leifheit, Mr. Jerry Osland, Ms. Sandra Polanco, and Chairman Tim Bagby. A quorum was established with all seven Members present.

Others present included Gary Hanson, Pete Stefan, Jim Scheffers, Sheila Santos, and Greg Millburg.

APPROVAL OF THE AGENDA

It was noted that Item #11: Executive Session for Collective Bargaining as Provided for in 5 ILCS 120/2(c)(2) was no longer necessary and could be omitted.

It was moved by Ms. Polanco, seconded by Mr. Osland and it was carried unanimously by voice vote to approve the agenda as amended with no Executive Session.

APPROVAL OF THE MINUTES

It was moved by Mr. Faivre, seconded by Mr. Campbell and it was carried unanimously to approve the minutes of the October 2, 2019 Finance Committee Meeting.

PUBLIC COMMENTS

There were no public comments.

FY 2020 BUDGET PUBLIC HEARING

Chairman Bagby opened the FY 2020 Budget Public Hearing at 7:01 p.m.

Hearing no comments, Chairman Bagby closed the FY 2020 Budget Public Hearing at 7:02 p.m.

FINAL FY 2020 BUDGET RECONCILIATION

Mr. Stefan shared that although there were no successful budget appeals to incorporate into the final FY 2020 budget, he wanted to provide information to the Committee on final budget reconciliations for the FY 2020 budget to account for any items that have developed since the original recommendation was issued on September 4th, to refine certain estimate, classifications, and transfers including in the budget, and to clarify existing language, correct typos, etc. These items include updates to Tax Increment Financing District increment recapture revenue, additional funding provided to the Court Services Department by the Administrative Office of the Illinois Courts for the Pretrial Program, an increase to the fee for participation in the State’s Attorney’s Appellate Prosecutor Program, and revising the revenues for the law Library Fund among other items.

More specifically, Mr. Stefan detailed that the State’s Attorney’s Appellate Prosecutor Program fee went from $24,000 to $28,000 for Fiscal Year 2020 and that will be picked up as an additional $4,000 expenditure in the General Fund. The Law Library Fund somehow slipped through with no revenues. Revenues are generated through certain case filings and will generate about $60,000 in revenues in the All Funds Revenue. Court Services were awarded additional funding for the Pretrial Supervisor position as well as one of the County-funded positions that they had previously received no funding for. Those awarded funds pick up the salary only and the County picks up the benefits but the net effect of all of that is $97,000 in additional revenues and $89,000 in additional expenditures, so there will be a net positive to the General Fund of $8,000. Mr. Stefan also explained that over the past week the County was notified by the City of DeKalb that they had an amendment to their TIF Recapture figures that they had provided. The parcels that were ported from one TIF to another are going to generate an additional $91,000. Mental Health will get $10,000 of that and the County’s portion is $81,000. What they are proposing to do with those funds are matching those up with the $4,000 loss from State’s Attorney and $8,000 net positive from Court Services and take the total $85,000 and put that into the Tort & Liability Fund. Along with that, the tax rate was initially going to be decreased by 2.3% and it will now be a 1.9% decrease to the tax rate by recapturing the TIF increment. The last change is within the Federal Highway Matching Fund. The State called the County Highway Department and said someone dropped a project and asked if they had one that could be done. Mr. Schwartz would like to move up the project of paving Peace Road from Bethany Road to IL Route 64 and Mercantile Drive from IL Route 23 to Peace Road. The total cost is $1,250,000 and State/Federal Funds will pick up 80% so the County’s local match will be $250,000 (to come out of the Federal Highway Matching Fund). Mr. Hanson further explained the TIF recapture more to the Committee.

Mr. Faivre moved to forward the FY 2020 Levy and Budget Ordinances to the full County Board recommending their approval. Mr. Campbell seconded the motion and it carried unanimously.

LIABILITY & EXCESS WORKERS COMPENSATION INSURANCE COVEREAGE

Mr. Stefan provided a summary of the County’s liability/property and workers compensation claims for the past ten years to assist the Committee in determining whether or not to accept any of the proposals submitted in connection with the liability and excess workers compensation insurance coverage RFP that was previously issued and reviewed last month.

The State’s Attorney’s Office send out a response to the RFP and noted that they were looking a plan that would assist more with outside counsel. Mr. Stefan shared that after speaking with Mr. Mike Nugent of Nugent Consulting, LLC (consultant), noted that that they (SAO) are looking for a product that just does not exist.

Another question that the Committee asked last meeting was whether the County could issue bonds in the instance that a large claim would be filed again them and they received confirmation that yes, they could issue bonds with a limit of a 10-year time limit.

Mr. Stefan also reiterated that what began this process was the question of how much Fund Balance they should have in the Tort & Liability Fund. There are a few firms that the County could hire as an Actuary and provide them with a number that would fit their comfort level. Mr. Stefan shared that while looking it looked as though the costs for an Actuary ranged from $3-18,000.

The Committee discussed further their opinions on whether or not to purchase insurance. Most commented that after reviewing the claims history it just did not seem warranted to spend the money to do so. Others were interested in seeing what an Actuary would suggest a Tort Fund Balance should be.

Mr. Campbell moved not to accept any of the proposals submitted in connection with the liability and excess workers compensation insurance coverage RFP and not purchase any additional insurance coverage and further moved to hire an Actuary to conduct a study to find out how much Fund Balance should be in the Tort & Liability Fund. Ms. Leifheit seconded the motion and it was approved unanimously.

CLAIMS REVIEW

Mr. Stefan highlighted the significant expenditures included in the October Claims List including any items that were unusual from either a dollar amount perspective or due to the nature of the expenditure.

The monthly Claims Lists are available on the County’s website via this link:

https://dekalbcounty.org/departments/finance-office/financial-tax-information/vendor-payments/

PROCUREMENT POLICY

The Ad Hoc Rules Committee recently reviewed a new Procurement Policy that was prepared by the State’s Attorney’s Office. The Rule Committee forwarded the draft policy to the Finance Committee for review and input. Prior to the Committee Meeting, the Members were additionally sent the County’s current Purchasing and Award of Contracts Policy for further review.

Mr. Scheffers provided a few scenarios regarding County facilities utilities and how they go out for big and how the current County Policy would provide the best pricing as opposed to what the proposed Procurement Policy is suggesting.

The Committee had a discussion on this topic and what the County currently does and why it has the policy it does and what some potential benefits could be of have a more centralized approach.

Mr. Hanson noted that to him, the County Board’s control is in the budget. If there are items in there that the Board does not agree with then that is the time to remove them. Once the money is approved the ship has partly sailed already.

Mr. Faivre expressed that he appreciated all of the work that went into drafting the proposed policy but after reading it, this seemed like a policy for a much bigger County and one that had more staff or full-time Board Members.

Mr. Frieders shared that he spoke with Chairman Pietrowski following the Ad Hoc Rules Committee Meeting about speaking with Assistant State’s Attorney David Berault about sizing the proposed policy way back. There was some initial pushback but could still be considered if the Finance Committee agreed with the need to scaled way back on the proposed 27-page document.

Chairman Bagby reiterated from Rules Committee that Mr. Berault described this as a first draft policy and that the Board could pick and choose what to keep at their discretion. The Chairman expressed that he would like to see a compromise between the current 3-page policy and the proposed 27-page policy before a consideration is made on this item.

Mr. Hanson questioned what the Committee thought if the items within the proposed draft Procurement Policy were procedures rather than Board policy. He added that he didn’t see how someone goes out and buys something is a Board issue, it is a manager issue. The Board sets the policy that they want a good price, a competitive price, and an open process and staff need to comply with those directives.

The Committee directed staff to pair down the proposed draft Procurement Policy and look to it being more of procedure to follow as opposed to a Board Policy.

DISCUSSION ITEM

Analysis of Operational Efficiencies & Five-Year Capital Spending Plans

Ms. Polanco shared that she recently began with a new employer who has really dedicated themselves to reducing waste of all formats. She added that the County approved a Zero Waste Policy in 2014 and she would like to see this Board look for ways to continue on the path of reducing as much paper and single-use plastics as possible.

Information Management Office Director Sheila Santos and Facility Management Director Jim Scheffers shared ways that their Department and the County keep track of paper use through copiers and printers.

Mr. Hanson explained that there are five-year schedules for capital projects as well as County assets but there are no operational schedules. Ms. Santos additionally provided some details on the schedules for PCs, servers, and technology equipment which come out of the Asset Replacement Fund.

COLLECTIVE BARGAINING AGREEMENT

Mr. Hanson shared that the County currently has a tentative agreement with the Metropolitan Alliance of Police, Local Chapter #318 for the Sheriff’s Department however the exact language is not completely final. MAP has not voted on it yet but should very soon. Mr. Hanson requested the Committee to forward the agreement to the full County Board where there will be an Executive Session and the agreement will be presented to everyone at the same time.

Mr. Faivre moved to defer the “Approval of Labor Contract with the Metropolitan Alliance of Police, Local Chapter #318” directly to the County Board for action, including a recommendation to hold an Executive Session at the meeting to allow a full discussion by the entire Board of the specifics of the proposed contract. Mr. Osland seconded the motion and it was approved unanimously.

ADJOURNMENT

It was moved by Mr. Osland, seconded by Ms. Leifheit, and it was carried unanimously to adjourn the meeting at 8:23 p.m.

https://dekalbcounty.org/wp-content/uploads/2019/12/min19-finnov.pdf