Kankakee County Finance Committee met January 23
Kankakee County Finance Committee met Jan. 23.
Here is the minutes provided by the committee:
Mr. Liehr, Mr. Lagesse, Mr. Washington, Mr. Hess, Mr. Payton, Mr. Kinzinger, Mr. Zenz, Ms. Haas, Mr. Swanson, and Ms. Zuccollo
Mr. Olthoff, Mr. Byrne, Ms. Webber, and Ms. Parker
Mr. Wheeler and Mr. Sirois
Steve McCarty, Jake Lee, Nick Africano, Anita Speckman, Delbert Skimerhorn, Sheriff Mike Downey, Lori Gadbois, Erich Blair, Dan Hendrickson, and Mark Rogers
1. Call to Order Roll Call
The meeting was called to order by the Committee Chairman, Mr. Liehr, at 9:00 a.m. Quorum present.
2. Public Comment
No Public Comment
4. Approval of Minutes: December 20th, 2018
Mr. Hess made a motion to approve the minutes with the corrections, and Mr. Payton seconded it. Motion carried with a voice vote.
5. Treasurer’s Office - Nick Africano
County Treasurer’s Report – December 2018
County Collector’s Report – December 2018
Monthly Resolutions for February 2019
Mr. Washington made a motion to combine and approve the reports and resolutions, and Mr. Zenz seconded it. Motion carried with a voice vote.
Mr. Africano distributed a flyer to all the committee members that explains the new tax payment program that his office is introducing.
Mr. Africano stated that he had spoken with committee member, Mr. Kinzinger, about an option to enhance the Treasurers monthly report. Mr. Africano advised that he would review options with Chairman Wheeler and Finance Director, Mr. McCarty.
6. Finance Department - Steve McCarty
Miscellaneous Financial Reports & Discussion
Mr. McCarty reviewed and discussed the financial reports with the finance committee. Mr. McCarty said there was a nice change in the sales tax for the month.
Mr. Liehr asked if there were any questions regarding the financial reports. There were no questions from the committee.
• Cash Flow Update
Mr. McCarty discussed and reviewed the cash flow update with the committee. Mr. McCarty advised that the cash flow update will look a little different this month and he will spend a little time speaking about the federal government shutdown. A few weeks ago, we learned that our Federal Marshall and DHS programs are involved in the shutdown. What that means for us right now, is our receivables for the monthly billing are not being processed at the federal level.
After discussion with Chairman Wheeler, there was review and a forecast of 4-6 months ahead. Mr. McCarty reviewed the options with the committee, including expanding the tax anticipation warrants and line of credit.
Mr. Kinzinger asked for clarification in the amount of line of credit. Mr. McCarty advised the line of credit would be for 4.9M
Mr. Kinzinger asked if the county was going to keep accepting federal inmates if they are digging deeper into a hole.
Mr. Liehr advised that would be a question for Sheriff Downey. Sheriff Downey confirmed that they will be accepting federal inmates.
Mr. Wheeler stated that he would highly recommend that we continue to accept federal inmates. If we make any changes in revenue coming in, we just have expenses at least for 60 days. Mr. Wheeler advised that they are only here for a short time, it’s a constant roll.
Mr. Wheeler stated that until we are in a surplus situation, we will continue to have interfund borrowing. The federal shutdown couldn’t have happened at a worse time for the county. Even with the improving situation that we were in, our payables are expanding.
Mr. Liehr stated that the finance department has recommended this as the wisest thing to do and we can revisit the topic again at a later time if needed.
Mr. Wheeler advised that this is several months of time to review, this will last through April.
Mr. McCarty said he ran a model out for 8-10 months and the property taxes will carry us. If the shutdown lasts longer than 4-6 months we will need to have an additional conversation about this topic. This is a 4-6 month discussion to get us through our most difficult time of year for cash flow.
Approval of 2019 Tax Anticipation Warrants
Mr. McCarty reviewed the 2019 Tax Anticipation Warrants with the committee, stating that without exact numbers from the banks, he has provided the committee with a summary and will have the exact numbers for full county board.
Mr. Sirois asked what the interest rate would be.
Mr. McCarty stated that he doesn’t have that information yet, but in the past, we had received federal interest. Mr. McCarty advised he is waiting for that confirmation.
Mr. Zuccollo made a motion to approve the 2019 Tax Anticipation Warrants, and Mr. Hess seconded it. Motion carried with a roll call vote of 11-0. Voting Aye were: Mr. Wheeler, Mr. Liehr, Mr. Lagesse, Mr. Washington, Mr. Hess, Mr. Payton, Mr. Kinzinger, Mr. Zenz, Ms. Haas, Mr. Swanson, and Ms. Zuccollo
Approval of Actuarial Valuation Study with Menard Consulting Inc.
Mr. McCarty reviewed the Actuarial Valuation Study contract with the committee. This is related to the annual audit, we are required to do an audit every two years for post-employment benefits.
Mr. Kinzinger stated that he wasn’t familiar with the consulting company. Mr. McCarty confirmed they are a reputable company.
Mr. Liehr asked how often this needs to be done.
Mr. McCarty confirmed that it is required every two years.
Mr. Wheeler asked if we go with them, does it lock in the rate for 2020 and wanted to clarify if the committee was voting on just one, or both to lock in the rate.
Mr. McCarty advised that would be his recommendation if the committee is comfortable with that.
Mr. Kinzinger made a motion to approve the Actuarial Valuation Study with Menard Consulting Inc. for both years, and Mr. Zuccollo seconded it. Motion carried with a roll call vote of 11-0. Voting Aye were: Mr. Wheeler, Mr. Liehr, Mr. Lagesse, Mr. Washington, Mr. Hess, Mr. Payton, Mr. Kinzinger, Mr. Zenz, Ms. Haas, Mr. Swanson, and Ms. Zuccollo
Property Tax Abatement for Tax Year 2018
Mr. McCarty reviewed the Property Tax Abatement for Tax Year 2018 with the committee. This is an item that has to be done every year. Mr. McCarty reviewed the document with the committee.
There were no questions or discussions from the committee.
Mr. Payton made a motion to approve the Property Tax Abatement for Tax Year 2018, and Mr. Zenz seconded it. Motion carried with a roll call vote of 11-0. Voting Aye were: Mr. Wheeler, Mr. Liehr, Mr. Lagesse, Mr. Washington, Mr. Hess, Mr. Payton, Mr. Kinzinger, Mr. Zenz, Ms. Haas, Mr. Swanson, and Ms. Zuccollo
• Claims Not Recommended for Approval
There were no claims to discuss for this month.
Mr. McCarty asked if there were any other questions. There were no other questions from the committee.
7. Sheriff’s Department - Sheriff Mike Downey Monthly Update
Sheriff Downey updated the committee, mentioning that the government shutdown was already discussed and there was a government shutdown in 2013. It didn’t last near as long, but we have been through this before. We do not have the interest rate as to what they pay when they are late. The information is not available because there is nobody in the government offices to answer the question.
Something brought up in the Criminal Justice meeting was the number of inmates being released back into our community. In December, the number was 91. The national average of recidivism is 68% of those released, will reoffend within 3 years. Approximately half of the 68% will be arrested within their first year of release. So, that is an impact on the Sheriff and the community. Of course, those released have access to programs and reentry for those that are in need of services. Sometimes they work and sometimes they don’t.
Sheriff Downey stated that there is an increase from last year of over $300,000, but he wants to remind the committee that those numbers will level off. March through the end of the year the numbers are high and Sheriff Downey doesn’t see the numbers increasing from there, simply because of the number of beds. The increase will not continue.
Declaration of Surplus Vehicles – Sheriff’s Department
Mr. Liehr advised the committee that the information for surplus vehicles was in the committee information packet.
Sheriff Downey stated that the vehicles are of no use to the department or to anybody, with the committee approval the vehicles will be sent to the auction.
Mr. Hess made a motion to declare the vehicles as surplus, and Mr. LaGesse seconded it. Motion carried with a voice vote.
Sheriff Downey stated that he would contact the State’s Attorney to correct a date error.
Mr. Hess added that at the executive meeting, there was a discussion on Kankakee being a gun sanctuary county and Mr. Hess requested that item be added to the Criminal Justice Committee agenda for discussion.
8. Auditor’s Office - Jake Lee Monthly Claims
Mr. Lee highlighted various items in the monthly report. Mr. Lee stated that the rate for business travel reimbursement has increased. Any claims that were received with the incorrect amount were sent back.
Mr. Lee stated that he had conversations with a company called Asavar, a 22 year company with expertise in analyzing utility bills for overpayment. It’s a useful technology with software solutions that analyze the data and suggest reimbursements for any overpayments the county has paid. The company comes well recommended. The company will calculate how much the county will be saved and then they get a percentage of 45% of the monies saved. If they do not find anything, they do not charge.
Mr. Lee continued to state that he recommends a forensic audit and the statutory functions of the office. Other than that, the claims report was emailed to the committee for the recommendation process.
Mr. Lee asked the committee if they had any questions.
Mr. Kinzinger stated that he appreciated Mr. Lee checking into the Utility audit and the 45% rate is probably fair. How would the committee proceed if they wanted to do that?
Mr. Liehr advised that this was completed several years ago and the time lapse is something to consider, if there has been enough time in between to do the audit again.
Mr. Kinzinger said he still recommends the audit.
Mr. McCarty stated that the utility audit was done in 2012-2013. Most of what they found was the county shutting off phone lines that were no longer in use. Mr. McCarty said that it is definitely something we could look at and how often we want to do that.
Mr. Washington made a motion to accept the auditor’s monthly report, and Mr. Swanson seconded it. Motion carried with a voice vote.
9. Other Business
DEVNET Software Contract Renewal
Mr. Wheeler stated that he could provide a brief explanation that the renewal was already brought by Mr. Blair to community services. The terms are outlined in the contract itself on page 17 and 18. Mr. Wheeler advised that the rates were negotiated by Mr. Blair and the software is highly recommended by the departments.
Mr. Liehr asked if there were any other comments or questions, there were not.
Mr. LaGesse made a motion to approve the DEVNET Software Contract Renewal, and Mr. Zenz seconded it. Motion carried with a roll call vote of 11-0. Voting Aye were: Mr. Wheeler, Mr. Liehr, Mr. Lagesse, Mr. Washington, Mr. Hess, Mr. Payton, Mr. Kinzinger, Mr. Zenz, Ms. Haas, Mr. Swanson, and Ms. Zuccollo
10. Old Business/New Business
2019 Revised Travel Expense Form
Mr. Wheeler advised the committee that with the mileage reimbursement amount changing, the county needed to have a new form with that dollar amount. All forms must go through finance and full board so the form can be added into the policy and handbook manual and emailed to employees. Mr. Wheeler advised that the IRS announced the new rate on December 14th, 2018 and the form came as a recommendation from the auditor in January, so it is now brought before the committee.
Mr. Wheeler advised that the line item stating the rate is coming from the IRS is extraneous and can be eliminated from the form.
Mr. Wheeler made a motion to approve the form with the recommended change, and Mr. Zenz seconded it. Motion carried with a voice vote.
Mr. Liehr asked if there was any old business to discuss, there was not.
Mr. LaGesse requested that the committee double check the sign in sheets, some signatures were missing. The committee agreed to double check signatures.
Mr. LaGesse made a motion to adjourn the meeting at 9:48 a.m., and Mr. Hess seconded it. Motion carried with a voice vote.