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Home My WebLink About12-21-04 Canton City Council415 A regular meeting of the Canton City Council was held on December 21, 2004 in the Council Chambers at the Historic Depot, 50 North 4t'' Avenue, Canton, Illinois. PLEDGE OF ALLEGIANCE OPENED THE MEETING, FOLLOWED BY THE INVOCATION GIVEN BY NANCY WHITES, CITY CLERK. Mayor Bohler asked for roll call at 6:30 p.m. Present -Aldermen Larry Sarff, Elny Harn, Les Carl, Jim Hartford, Rick Reed, Craig West. Absent -Aldermen Mary Fillingham, and Bob Molleck. MINUTES CITY COUNCIL MEETING DECEMBER 7, 2004. Motion and second by Aldermen Hartford/Reed, the minutes of December 7, 2004 be accepted and placed on file. Voice vote, motion carried unanimously. TREASURER'S REPORT. Patty Beaird Franzoni was ill. BILLS FOR NOVEMBER. Motion and second by Aldermen Sarff/West, all bills as presented be authorized for payment. Roll call. AYES -Aldermen West, Reed, Hartford, Carl, Harn, Sarff. NAYS - None. 6 AYES, 0 NAYS, 2 ABSENT. Motion carried. AUDIT REPORT 2003. Jim Hocker of the firm Hocker/Fitzjarrald went through the Summary Financial Analysis of the Water & Sewer Funds. Comments made by Jim are... Cash and investments declined $168,000 due to $100,000 reimbursement for services, material, labor, and equipment useage paid to the General Fund. Also payment of the principal and interest on the $3,096,062 IL EPA loan began in fiscal 2004 which reduced cash flow $187,000. This reflects a 10% decrease. The Capital Improvement Fund decreased for the first time in five years due to the repayment of the EPA loan, Storm Building Improvements, and two engineering studies. General Fund. The net unrestricted assets position in the General Fund improved during the year ended 4/30/04 by $159,000. Receipts increased $196,000 in FY'04 vs. FY'03 due to $100,000 received from the Water & Sewer Fund and increased property tax levy for Worker's Compensation and Liability Insurance costs of $134,000 partially offset by a $46,000 reduction in the Social Security/IMRF tax levy. Total expenses decreased $232,000 due to $73,000 decline in workers' compensation insurance, $43,000 decrease in Economic Development Director placement and relocation costs, general across the board decrease of $69,000 in supplies expense and $137,000 reduction in debt service payments due to refinancing of the Police/City Building and Fire Truck loans. Salaries and benefits which comprise almost 75% of total General Fund expenses rose 5.4% in FY'04 vs. FY'03. Excluding the effect of a full year's salary and benefits vs. only 4 months in the prior year of the Economic Development Director total salaries and benefits only increased 3.6%. Health Care Fund Financial position The self-insured Health Care Fund has become increasingly more costly to the City as 416 Council meeting of 12-21-04 go" basis thus it is not aware of how much of a future burden this benefit will become. An actuarial valuation will provide a plan for setting aside monies to pay the future costs of this benefit. Jim Hocker mentioned that the health insurance is a drag on the City finances. Alderman Sarff asked about any professional people that will do actuarys? Jim said not in Fulton County but in Peoria Small Parker & Blossom. Jim Hocker then went to the Management Letter and talked about the recommendations and material weaknesses: Currently the City Treasurer is the only authorized signer on some of the checking and investment accounts. Further, checks issued only require one signature to be valid. The practice of only having one authorized person to access investments and sign checks may limit the City's ability to meet its obligations during his/her absence, whether expected or unexpected. The City should consider adding a second or third authorized signer on all accounts, and requiring two signatures on all checks or investment transactions to be valid. This action would reduce the likelihood of potential unauthorized disbursements and for unexpected delays in accessing City funds. City purchasing procedures should be written in detail and formally adopted as policy. Central purchasing should be considered in order to benefit from economics of bulk purchases and ensure that excessive and/or unauthorized purchases are not made. Purchase orders should be prepared by the authorized department head prior to placing an order for goods or services. All vendors' invoices should be routed directly to the accounting clerk and matched against the approved purchase order. The original vendor invoice should be carefully reviewed by the accounting clerk and compared to data provided on the purchase order. After payment the invoice and the accompanying approved purchase order should be attached to the paid invoice and placed on file in the accountingLdepartment. For purchases with vendors that involve a large transaction volume of relatively small amounts a standing purchase order number that includes a code for each department could be used to reduce the clerical time involved preparing purchase orders. Currently bills must be processed and given to the Finance Committee by the second Tuesday of each month. This puts a lot of time pressure on the accounts payable clerk to check the bill, review the account distribution, ensure that the bill has been properly approved, and prepare the check. ACTURARIAL VALUATION OF POST EMPLOYMENT BENEFITS This is a repeat of our 2003 recommendation.) 417 Council meeting 1-21-OS PERSONNEL (Repeat of our 1998, 2001, 2002 and 2003 recommendation.) An employee manual should be developed that will clearly explain personnel policies, fringe benefits, pension eligibility and benefits, compensation policy, code conduct, conflict of interest policy, dealings with suppliers, etc. i ~, The City must convert its accounting system to the financial reporting system required by GASB #34 effective May 1, 2004. This conversion will require a significant effort by LOCIS and City administration. The implementation of GASB #34 has begun in order to meet the new accounting and reporting requirements for the fiscal year ending April 30, 2005. Our firm will assist the City with this project as needed. Jim said that presently there is a deficient of $120,000 in the workman's comp fund, and a deficient in the Audit Fund and ESDA Fund. Mayor Bohler thanked Jim for the hard work. COMMITTEE REPORTS: Finance. Council Action Motion and second by Aldermen Hartford/Carl, to accept the Insurance Committee's recommendations on Health Insurance. Discussion. City Attorney Ron Weber explained that two motions need to be made. Motion by Alderman Hartford and second by Alderman Carl were withdrawn. Motion and second by Aldermen Hartford/Carl, enrollment into HCH services and increasing employer premium of 10% and one time assessment of $350.00. Discussion. Motion and second by Alderman Hartford/Carl, $350.00 one time assessment, park/library personnel agreed to 10% assessment becoming affective on October 1st. Discussion. Alderman Carl mentioned if adopted will -have positive affect on the city's deficient of $145,000. Roll call. AYES -Aldermen Sarff, Harn, Carl, Hartford, Reed, West. 6 AYES, 0 NAYS, 2 ABSENT. Motion carried. Motion and second by Aldermen Hartford/Sarff, to enter into negotiations with the unions to make health insurance plan changes to become affective March 1, 2005 to increase the co-pay for Rx to $7.00 for generic, $25.00 for brand, $45.00 for Non- formulary, increase mail order co-pay to 2x per 90 day Rx, implement a DAW penalty, offer duratech medical equipment program becoming affective on March 1, 2005; also, enroll in HCH's Disease Management, Predictive Modeling, becoming affective January 1, 2005, and a On-line service that would become affective February 1, 2005. Roll call. AYES -Aldermen West, Reed, Hartford, Carl, Harn, Sarff. NAYS -None. 6 AYES, 0 NAYS, 2 ABSENT. Motion carried. Motion and second by Aldermen Hartford/Reed, to approve of expenditure from Water 418 Council meeting 1-21-OS AYES -Aldermen West, Reed, Hartford, Carl, Harn, Sarff. NAYS -None. 6 AYES, 0 NAYS, 2 ABSENT. Motion carried. Motion and second by Aldermen Hartford/West, to authorize the concept of the Water Study. Discussion. Alderman Carl asked what is the concept? One time we had the same and the next time Ethanol Plant was approved. Mayor Bohler said it is just what the study was. And nothing will move forward until brought before this council and that was the same as the Ethanol Plant. Alderman Sarff said some other things that was brought up like the intake facility of CILCO. Alderman Sarff said he was not ready to approve anything yet. Voice vote, motion carried unanimously. Legal & Ordinance. Council Action None. Community & Industrial Development. Council Action None. Negotiations, Grievance & Personnel. Council Action COMMUNICATIONS FROM MAYOR BOHLER. Wished everyone a "Merry Christmas." OLD BUSINESS: None. NEW BUSINESS: RESOLUTION -APPROVING AN AGREEMENT BETWEEN THE CITY OF CANTON AND COUNCIL 31, ON BEHALF OF LOCAL NO. 1372, AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES, AFL- CIO. First reading, read by title. Motion and second by Aldermen Sarff/Hartford, the resolution be adopted. Roll call. AYES -Aldermen Sarff, Harn, Carl, Hartford, Reed, West. NAYS -None. 6 AYES, 0 NAYS, 2 ABSENT. Motion carried. Resolution being #. 3717. ADJOURNMENT: Motion and second by Aldermen Hartford/Carl, to adjourn. Voice vote, motion carried unanimously. The regular scheduled meeting of the Canton City Council adjourned at 7:00 p.m. ,., .~ ~