Finance Advisory Committee

MINUTES FINANCE ADVISORY COMMITTEE CITY OF DEKALB NOVEMBER 13, 2014 The Finance Advisory Committee held a meeting on Thursday, November 13, 2014 in the Council Chambers of the DeKalb Municipal Building, 200 South Fourth Street, DeKalb, Illinois. Chairman Peddle called the meeting to order at 6:05 p.m. ROLL CALL Deputy City Clerk Ruth Scott called the roll and the following members of City Council were present: Alderman David Jacobson (arrived at 6:09 p.m.), Alderman Bill Finucane, Alderman Kristen Lash, Alderman Bob Snow, Alderman Ron Naylor, and Mayor John Rey. Absent: Alderman Dave Baker and Alderman Monica O’Leary. Finance Advisory Committee members present were: Dave Conlin, Connie Golden, Mike Peddle, Tom Teresinski and Mike Verbic. Also present were: City Manager Anne Marie Gaura, Police Chief Gene Lowery, Fire Chief Eric Hicks, Finance Director Cathy Haley, Public Works Director T.J. Moore, City Engineer John Laskowski, and Ruth Scott, Deputy City Clerk. TAX LEVY 2014 Finance Director Haley reviewed with City Council and the Finance Advisory Committee the 2014 Property Tax Levy timeline with the Public Hearing and first reading taking place on November 24, 2014 and the second reading taking place on December 8, 2014. Finance Director Haley reviewed the 2013 tax bill allocations with City Council and the Finance Advisory Committee. Finance Directory Haley reviewed charts with City Council and the Finance Advisory Committee regarding the 2014 Property Tax Levy which included a list of 14 communities with comparable economic data, property tax dollars per capita, the top three revenue sources as a percent of the total General Fund, and the City’s FY2015 revenue sources. There was discussion amongst Council, the Finance Advisory Committee and City staff regarding the TIFs and what will happen when they expire. The General Fund will lose $942,600 from annual transfers from the two TIF funds along with $492,500 of tax surplus revenue when the TIFs expire. A total loss of $1,435,100.  Finance Advisory Committee November 13, 2014 Page 2 of 2 Finance Director Haley reviewed a chart that listed the City’s last seven years of Equalized Assessed Valuation (EAV). Over the past five years, the City’s EAV has continued to drop while levy dollars have remained consistent. This drop in EAV has caused the City’s tax rate to increase. Finance Director Haley reviewed a chart that listed the history of the tax levy allocation for the City. The City’s past practice was not to levy dollars for debt payments. Further, the funding level for the employer contribution in to IMRF has fluctuated and dropped significantly. Finance Director Haley reviewed and discussed Options A, B, C and D with City Council and the Finance Advisory Committee for the 2014 tax levy. Option A was recommended by City staff. After a lengthy discussion regarding the options presented, City Council and the Finance Advisory Committee concluded to proceed with Option B. As the general consensus was split somewhat evenly, staff will bring both Options B, C and D to the City Council meeting of November 17, 2014 for continued discussion and a first reading. ADJOURNMENT Ms. Golden moved to adjourn the meeting, seconded by Mr. Teresinski. The meeting adjourned at 8:17 p.m. ___________________________________ RUTH A. SCOTT, Deputy City Clerk Return to Agenda