Kankakee County Finance Committee met April 26.
Kankakee County Finance Committee met April 26.
Here is the minutes provided by the Committee:
Mr. Johnson, Mr. LaGesse, Mr. Washington, Mr. Vickery, Mr. Hess, Mr. Mulcahy, Mr. Sirois, Mr.
Hildebrand, Ms. Webber, Mr. Payton, and Mr. Ritter
Mr. Skutt and Mr. Einfeldt
Mr. Wheeler, Mr. Liehr, Ms. Peters, and Ms. Parker
Jim Rowe, Bruce Clark, Tom Latham, Delbert Skimerhorn, Kevin Duval, Mark Rogers, Nick Africano, Steve McCarty, Bob Gessner, Lori Gadbois, Erich Blair, Brian Gadbois, and Sheriff Mike Downey
1. Call to Order
The meeting was called to order by the Committee Chairman, Mr. Johnson, at 9:00 a. m. Quorum present.
2. Executive Session – Lease of Property – 5 ILCS 120/2(c)(5)
Mr. Sirois made a motion to enter executive session, and Mr. LaGesse seconded it.
Motion carried with a roll call vote of 12 ayes and 0 nays. Voting aye were Mr. Johnson, Mr. LaGesse, Mr. Washington, Mr. Vickery, Mr. Hess, Mr. Mulcahy, Mr. Sirois, Mr. Hildebrand, Ms. Webber, Mr. Payton, Mr. Ritter, and Mr. Wheeler.
The committee went into executive session at 9:03 a.m. and came out at 9:15 a.m.
Approval of Early Lease Termination Agreement for 270 North Schuyler Avenue, Kankakee, IL (State’s Attorney’s Office)
Mr. Rowe stated that regarding the early lease termination agreement that the committee will be voting on, the terms would be that the lease for the State’s Attorney’s office at 270 N. Schuyler Avenue would terminate effective May 31st of this year. There is roughly $70,000 in back additional rent that is owed the landlord that was negotiated down to $40,000, payable at $1,666.66 for two years, beginning July 1, 2017. The County will then have no future lease obligations to that space. Going forward, it will probably save the taxpayers approximately $100,000 in additional rent, plus some related costs, along with fact that we’ve negotiated down the back rent. It will also free up the Maintenance Department about 20 manpower hours per week.
Mr. LaGesse made a motion to approve the early lease termination agreement, and Mr. Washington seconded it. Motion carried with a roll call vote of 11 ayes and 0 nays.
Voting aye were Mr. Johnson, Mr. LaGesse, Mr. Washington, Mr. Vickery, Mr. Hess, Mr. Mulcahy, Mr. Hildebrand, Ms. Webber, Mr. Payton, Mr. Ritter, and Mr. Wheeler.
4. Public Comment
David Hoover from NIMEC – Electric Aggregation Program
Mr. Hoover spoke to the committee about the electric aggregation program.
6. Approval of Minutes: March 29, 2017
Mr. Payton made a motion to approve the minutes, and Mr. Washington seconded it.
Motion carried with a voice vote.
7. County Auditor’s Office – Jake Lee
Mr. Lee was not present.
Mr. Sirois made a motion to combine and approve the monthly claims, and Mr. Hildebrand seconded it. Motion carried with a roll call vote of 12 ayes and 0 nays. Voting aye were Mr. Johnson, Mr. LaGesse, Mr. Washington, Mr. Vickery, Mr. Hess, Mr. Mulcahy, Mr. Sirois, Mr. Hildebrand, Ms. Webber, Mr. Payton, Mr. Ritter, and Mr. Wheeler.
8. Insurance/HR – Lynn Mackin
Staffing Levels Report
Ms. Mackin reviewed and discussed the report with the committee. The current staff level is at 498.
Michael Lynch – Insurance Update
Mr. Lynch stated that they were going to make a presentation in three parts to the committee.
Joining him were Lorraine Wilbourne, a representative of United HealthCare (UHC), and Dave Underkoffler from Clemens & Associates. Ms. Wilbourne spoke about the experience report, a copy of which was handed out to the committee, and how it affects the renewal process globally.
Mr. Lynch discussed the HRA portion, one of five pieces of insurance that is a part of the offering UHC makes. Mr. Underkoffler discussed putting the HRA and the health insurance plan together in an overview to show how one is affected by the other.
Cyber Insurance Coverage
Mr. Wheeler stated that the county has a cyber policy, which is a small line in our current liability policy. This subject came up with the Health Department because they have a lot of Protected Health Information (PHI), and have to make sure, with all of the things that are going on with the internet these days, and safety and security, that they had a policy that covered and protected them. George Ryan, Jr. was present to explain our current coverage and limitations, and what might be available to us.
Mr. Ryan discussed various aspects of cyber liability with the committee.
9. Treasurer - Nick Africano
Mr. Vickery made a motion to combine and approve the reports and monthly resolutions, and Mr. Sirois seconded it. Motion carried with a voice vote.
County Treasurer’s Report – March 2017
County Collector’s Report – March 2017
Monthly Resolutions for May 2017
Mr. Africano reviewed and discussed the above reports and monthly resolutions with the committee.
Bids for Outsourcing Printing of Tax Bills
Mr. Africano stated that, in the past, tax bills have been printed in the Treasurer’s office on the copy machine. They were then given to the Auditor’s office, who then uses the machine we have in house to fold and stuff. Then they were given to the Maintenance Department who took them to the post office. That’s the way it’s been done since 2013 when this contract was signed for $2,000 a month, for 60 months, for the mail machine. He is not doing it that way this year, and the reason is simple – it doesn’t make sense financially. All of the costs associated with that machine never take into account the cost of labor, which is a very large cost. For example, last year, the Auditor and her assistant spent five days doing the mailing. At 70 hours, their joint cost was $81.00 an hour. With salary and benefits, that’s roughly $5,600. Add the postage on, the cost of the paper, the cost of the envelopes, and it’s well over $10,000. The quote that he’s going with is $10,088 to do it all, out of house, professionally, from Devnet, a supplier who the county has a contract with and have been using for years. Everything is on schedule for the tax bills to go out in May.
Mr. Blair also discussed with the committee various facts in relation to the mail/folder/inserter machine, its’ usage, and the effect on his budget.
Reimbursement to Tax Buyer for Demolition of Property by City of Kankakee
Mr. Africano stated that he was informed that this matter has been taken care of now.
Mr. Wheeler stated that, yes, they weren’t aware at the time, but the checks were with the County Clerk’s office, and they just needed this committee’s permission to take those checks and return them to the trustee.
Mr. Vickery made a motion to return the checks to the trustee, and Mr. Washington seconded it.
Mr. LaGesse asked if there was something in place so that this will not happen again, where the City doesn’t notify us that they’re demolishing something.
Mr. Africano stated that his understanding was that, in the process of the tax buyer going for deed, and the time it took, the City demolished the house during that two month window. The City was entitled to demolish the house as they had a lien on it and went through the Court process.
Original motion carried with a voice vote.
Resolution for Transfer of Property
Mr. Africano stated that there was a problem with a trustee property that they called a “soft title”.
Apparently the person who purchased the property had obligations to another individual. That individual exercised his legal options and said he wanted the property, paid for it, and all we’re doing is conveying the property from the one tax buyer to another person. There is no money exchanged, so it’s an absolute wash.
Mr. Wheeler stated that the tax buyer bought it, and the lienholder had a lien on it, so they’re just conveying the property to the lienholder.
Mr. Sirois made a motion to combine and approve the resolution, and Mr. LaGesse seconded it. Motion carried with a voice vote.
Mr. Africano discussed a new procedure he is planning on implementing for collection of late fees in relation to hotel/motel taxes. He is unsure as to whether to go after the past late fees or to just start fresh. He will discuss it with the State’s Attorney’s office prior to proceeding.
10. Finance Department – Steve McCarty
FY16 Contingency Budget Adjustment
Mr. McCarty stated that, during the course of the year, various departments, either at their committee or at this committee, report that there will be changes to their original budget and, in the past, contingency has been adjusted to cover those things. He provided the committee with a list of those items. There are some grants and some activity within various departments. It doesn’t change the overall General Fund budget, just changes and reallocates the original budgets that contingency was given for this purpose in FY16. It is here for this committee’s consideration and review, and then the adjustments will be made for the final report.
Mr. LaGesse wanted to point out that this is no reflection on department heads or elected officials on some of these. At the time of the budget, we knew that they would probably go over because there are things that we just can’t control. For instance, the Coroner, as he has no control over the autopsies, and we knew that would probably happen due to past experience.
Mr. Wheeler stated that, just to clarify, they’re just moving it around, and it’s not an expenditure.
In order for us to tighten up the audit, we had the contingency, and it’s been done every year.
Mr. McCarty stated that the revenue since FY13 dropped a total of $7.7 million, and that’s a 23% decrease. From the expense side, that number is a $9.5 million decrease, or 27%, over a four year period of time.
Mr. McCarty stated that the net effect of all three major funds at this point is a positive $450,000 gain, and that’s a gain in cash. Technically, when the fund balance for all three funds can move in a positive direction, it means that we’re going in the right direction.
Cash Flow Update
Mr. McCarty stated that our receipts have been consistent although he had hoped they would have been better. The state has not released any additional items that we previously talked about, so it’s been consistent, but the accounts receivables still remain approximately the same.
Going forward, April and May will be the tightest months to get through.
Miscellaneous Financial Reports and Discussion
Mr. McCarty reviewed and discussed the reports with the committee.
Mr. McCarty also discussed with the committee the FY17 four year analyses, which is a year-to date comparison through March. It is a cash basis report, and does not build in accruals like the full year report does in looking at trends, both revenue and expense. He asked the committee to please note that March of FY17 is different from the other three years. In March of 2017, there were three payrolls, and there are not three payrolls in any of the other March years. If you take that out, and look at equal comparisons, the County is basically running between $900,000 and $1 million better off in FY17 than in FY16, from March to March on a cash flow basis.
Tax Year 2016 PTELL Model
Mr. McCarty stated that, for informational purposes, he provided the committee with PTELL worksheets for anticipated property taxes for the tax year 2016 that will be collected in 2017.
11. Sheriff’s Department - Sheriff Mike Downey
Sheriff Downey stated that their average housing in April, through April 25th, including everyone, is $23,775 per day. Compare that to March, which was $22,634 per day, and then compare that to February, which was $21,466 per day. Those are averages for what is being brought in per day. In April, we averaged 214 local prisoners, 201 in March, and 204 in February.
Declaration of Surplus Vehicles
Sheriff Downey stated that they have three vehicles that they want to surplus. There is a 2007 GMC Yukon, a 2010 GMC Acadia, and a 2011 Enclave. They are prioritizing their fleet, and these vehicles are starting to accumulate maintenance costs. Technically, they are non-police cars, so they would like to reduce their insurance costs and eliminate vehicles that they don’t need.
Mr. Sirois made a motion to declare the vehicles surplus, and Mr. Vickery seconded it.
Motion carried with a voice vote.
12. Other Business
Sexual Assault MDT Response Team Grant
Mr. Wheeler wanted to bring to the committee’s attention, even though it’s from the State’s Attorney’s office, that they had an opportunity to get a new higher level of funding, but we had to match that funding. The previous match was roughly $14,400, and the new match will be $18,000, so we’re basically money ahead if we do this.
Mr. Wheeler also wanted to speak with the committee about IKAN’s moving to their new building. They purchased it with their money, and it becomes the county property. There is a billboard on that property, so we have to execute a lease for that because it’s a revenue source for the County. He provided the committee with a copy of the lease to review. He stated that basically it’s a sliding scale as there is a minimum payment they’re going to pay us over certain amounts of time, but there’s also a revenue number. If they get a lot of business, the County also gets a percentage of the revenue. As the sign is paid off for that sign owner, then the amounts increase.
13. Old/New Business
A motion to adjourn the meeting at 11:19 a.m. was made by Mr. LaGesse, and seconded by Mr. Mulcahy. Motion carried.
Organizations in this Story
189 E Court St
Kankakee, IL 60901