«Present: Councilman Dwight Clark, Chair Councilman Dave Tadych Councilman Tom Henderson Also Present: Mayor Sutherland, Finance Director Mahoney, ...»
Minutes of a Meeting of Finance Committee January 13, 2014 Bay Family Service additional amount for 2013 may reflect the contract for the special speaker that was brought in to address the public regarding substance abuse. The city’s share of the contract is $40,000 per year. Mr. Koomar will confirm actual contract amount.
Equipment replacement for Police and Fire Departments still need to be finalized.
Police and Fire Pension numbers for 2014 include the new hires for both departments. It also includes the new payment schedule which requires a 13 month payment schedule per calendar year for the next two years, due to a change from quarterly payments to monthly payments required by the Police and Fire Pension Funds. The year 2014 is the second year of a three year requirement for this additional payment.
The Accrued Benefits Fund is projecting a reduction from last year’s expenses. Mr. Clark noted that there were many retirements and resignations in 2013. Two percent of municipal income tax goes to fund the Accrued Benefits Fund, in the amount of $110,000 to $115,000. Mrs. Mahoney also budgeted a $30,000 transfer from the General Fund.
The Community Band raises their own money, but they have asked for funding from the city this year as well. That has not been incorporated into the 2014 budget.
The General Bond Retirement Fund factors in the amount of $10,000 for the cost of issuing a note. The bond principal of $2,510,000.00 represents part of the initial note that will be done for 2014, including refinancing of the $ 1 million balance for 2013 borrowings plus 2014’s capital needs. Because of paying some debt down, the interest amount is reduced for 2014. This will tie out to the debt report that will be produced by Mrs. Mahoney for the next Finance Committee meeting.
Tree Removal of $20,000 is private property tree removal that is paid by the city and repaid by the residents, or certified to their property tax bill. Mrs. Mahoney would like to add an administrative fee for this service.
The Public Improvement Fund of $344,000 ties into the capital budget for 2014. The Municipal Building Improvements Fund reflects the $215,000 to be transferred out to fund public improvement projects for buildings. The $90,900.00 budgeted for pool improvements/aquatic repairs are for the renovation of the slide and painting of equipment.
Sewer Fund – Total Revenue for the Sewer Fund is budgeted at $2,573,200 for 2014. Total expenses are estimated at $3,033,653. There remains a budget deficit of $460,453. There is cash in the fund which would reduce the negative figure to $330,000. Mr. Clark noted that CT Consultants must be relied on heavily to review the report from the Rocky River Wastewater Treatment Plant. Mayor Sutherland stated that she is still waiting for a meeting to be set up.
There are labor negotiations going on currently with the union at the Rocky River Wastewater Treatment Plant. In initial conversations with Jeff Harrington, the plant superintendent, it was indicated that the company that did the strength and flow study does have all the documentation for the monitors. Mr. Clark commented that the committee would like to exhaust every option Minutes of a Meeting of Finance Committee January 13, 2014 they can before going to Plan B. If Plan B is required, a public meeting will be held with CT Consultants present to address the residents. The Mayor will keep the committee apprised.
Mayor Sutherland noted that the Sewer Fund is an enterprise account that cannot be in a deficit position at the end of the year.
Mr. Lee asked what the cost for the Rocky River Wastewater Treatment Plant was in 2013. The expenses were $625,830. The amount of $902,900 is budget for 2014, according to the latest estimate of Ray Thomas of Rocky River.
The Health Insurance Fund expense for 2013 was $1,300,686. The amount of $1,735,970 is budgeted for 2014. Mr. Clark stated that he is at a loss to understand why such a large increase is being budgeted going forward. This will be discussed further at the next Finance Committee meeting. Mrs. Mahoney stated that she is meeting with Medical Mutual this week and will have more information. Mr. Clark noted that the performance of the fund was better this year than the 2013 budget. The expense amount of $1,461.000 was budgeted in 2013. The amount of $1,300,686 was expended. This favorable $130,000 variance increased the balance in the Health Insurance Fund to $930,000. Mrs. Mahoney stated that with any new hires she budgets a full family coverage, even though the employee could only require single coverage.
Mr. Lee asked if the administration charge is a per employee charge or per claim charge. Mrs.
Mahoney stated that it is about $200 per employee, per month. Mr. Lee asked if the addition of six new employees is going to take us from $198,000 to $240,000. Mrs. Mahoney stated that the increase shown is too high and will be corrected.
Mr. Clark thanked everyone for their participation.
The next Finance Committee meeting will include a year in review for 2013. A pro forma debt report will also be submitted. Health Insurance will also be discussed. Mr. Tadych stated that he assumes the budget draft will be rewritten with the corrections.
The next Finance Committee meeting will be held Monday, January 27, 2014 at 5:30 p.m.
There being no further business to discuss the meeting adjourned at 7:30 p.m.