Minutes of the Finance Committee Meeting of the City of Herrin, Il Held in the Council Chambers

MINUTES OF THE FINANCE COMMITTEE MEETING OF THE CITY OF HERRIN, IL HELD IN THE COUNCIL CHAMBERS

MONDAY, NOV. 16, 2015 AT 5:30 P.M.

Chairman Paul York called the meeting to order at 5:30p.m. In attendance were finance committee members: Alderman Paul York and Alderman Dave Shoemake along with Mayor Steve Frattini, Treasurer Carl Goodwin, Alderman Sheila Ahlgren, Alderman Steve Miller, City Clerk Shelly Huggins, Budget Director Carrie Cravens,Deputy Police Chief Jimmie Loyd and Public Works Director Tom Somers.

Alderman York stated that Carl Goodwin, Treasurer will run the meeting and we are lucky to have a treasurer who is getting involved.

Carl started off with the treasurer’s report recently published in the newspaper. We operated last year with a deficit of $2,547,138.74 not including depreciation of $485,880.00. So far we have done the following to help alleviate the deficit: increased home rule by ¼ percent, reduced ½ of civic center payment and increased trash fee by $5 per month, setting aside $2,000 each month for equipment fund.

Immediate items of concern are: the deficit, borrowed funds from MFT, underfunded police pension fund, need to increase water & sewer rates. Recommendations for solutions are to increase the tax levy up to 60% and raise sewer rates. Also hiring and pay freezes until the deficit is resolved. We will need to act quickly on the tax levy as a public hearing will be required and we will need to pass the levy at the December 14th council meeting.

Carl & Carrie will meet with Randy Youngblood, CPA to see what levels we can increase levy to. Department heads and other employees have worked diligently to cut costs and are continuing to do so.

Proposed sewer increase is 1-2,000 gallons from $13.70 to $15.32 and over 2,000 gallons from $1.90 per 1,000 to $3.17 per 1,000. This matter will be brought before the council next meeting.

The 911 Administrative Office currently rents a portion of City Hall for $700 per month. Per Alderman Miller in recent months the board had discussed moving the operation to Marion. However, more recently they have decided to ask the City to lower the rent and they only use a portion of what they are using now. Maybe cutting down to $500 per month. This matter will be discussed next council meeting.

Next Finance Committee Meeting will be Saturday, November 21, 2015 at 9:00 a.m.

Meeting adjourned at 6:11 p.m.