Rock Island County Finance and Personnel Committee met April 11.
Here is the minutes provided by the Committee:
1) Call to order and roll call
Committee members present: Richard Brunk, Scott Noyd, Dewayne Cremeens (arrived at 8:39 a.m.), Don Johnston, Ginny Shelton, Rod Simmer, Kai Swanson, Brian Vyncke
Committee members absent: None
Others present: Kenneth Maranda, Dave Ross, Hayleigh Covella, Jerry Clyde, Bill Long, Ed Langdon, John McGehee, Larry Wilson, Rebecca Bernard, Louisa Ewert, Darren Hart, April Palmer
2) Public Comments
There were no public comments.
3) Approval of minutes from the March 14, 2017 meeting
Motion to approve: Ginny Shelton
2nd: Brian Vyncke
Voice vote
Motion carried
4) Reports to the committee
Treasurer-
Ms. Ewert started with the supplemental sales tax report. Just last week, the county received the January receipts from the state. January is always super low and it was again, of course. It came in at $267,814 89. Ms. Ewert was hoping to stay above $300,000 every month, but that threw that out. The rest of the months are keeping up.
Ms. Ewert presented her monthly report and the cover letter. She reported that interest received for the month of March was $7,516. The total current year accrual is $700,928.
There was some movement in the interest rate like she expected. The money market went from 0.35% to 0.45%. That’s a little bit and hopefully it will keep trending upwards. Mr. Johnston asked where that account is. Ms. Ewert said Blackhawk Bank. Mr. Vyncke noted that as long as the county doesn’t have to borrow money at the upper rate. Ms. Ewert agreed and noted that they always move in conjunction with each other.
Ms. Ewert reminded the committee that at last month’s meeting, she was concerned that the General Fund would have to borrow money, but if they could get it within a close enough range they were going to let it ride on the balances of some of the other funds. That did happen at the end of the month. On the 31st, the county ended up getting almost $176,000 of income tax. Looking at the balances on the report, the General Fund actually did end up, because of that deposit, with a positive balance of $34,347.55. That goes to show that the General Fund would have ended up about $147,000 in the negative had it not received that.
Ms. Ewert noted that the General Fund didn’t have to borrow any more money from the bank. It does still have an outstanding loan of $750,000 at American Bank, an internal loan of $524,000 from working cash, and deferred EHP payments of $194,000. The total indebtedness for the General Fund is currently $1,468,018.30.
Hope Creek has not had to borrow any more money, but they are still in debt $1 million.
Liability Insurance has the tax anticipation warrant for $500,000. A couple weeks ago, and this also helped, Ms. Ewert drafted a letter and she and Mr. Maranda signed it and sent it to the state stating hardship because of some of the Probation Officer salary reimbursements and grants that they hadn’t reimbursed the county for since their fiscal year last July. The county hadn’t received any money, so she sent the letter to the state and also addressed it to Representatives Halpin and McCombie and Senator Anderson. Lo and behold, they did give the county two days later almost $95,000. That’s one month of reimbursements that they owed the county. Had it gone on, and really they still owe the county upwards of $700,000 for reimbursements that they’re behind. If they hadn’t given the county any money and the county had gone the whole fiscal year without, it would have been like $1.1 million. The county did get just one month squeezed out of them. Ms. Ewert noted that it looks like they’re going to have trouble making the second payroll this month. Rep. Halpin’s office, Dawn, was actually a big help with that. Ms. Ewert is going to reach out to her next week and see if they can get more squeezed out of the state towards the end of the month.
Ms. Ewert reported that at the end of April in the next couple of weeks, the County Clerk’s office will finalize the rates for all the taxing bodies so the county can get tax bills calculated. That file will go to the printer probably the week of the 24th and the bills are scheduled to be dropped in the mail on May 5th, which is a Friday. That way the county can start collections and get ready for that first distribution in June.
Mr. McGehee asked, on the payment on the tax bill, if people start paying early so the money starts coming in right after the bills go out. Ms. Ewert said yes. That Monday they’ll have people coming in. Usually the early birds pay in full to get it done and over with. That’s why the first distribution is approximately 33% of the total distribution.
Mr. McGehee asked if the state has paid the State’s Attorney reimbursement. Ms. Ewert said she thinks the State’s Attorney reimbursement is not that far behind. Ms. Palmer said the State’s Attorney salary reimbursement is to date through February 2017.
Mr. Cremeens is present.
Auditor-
Ms. Palmer noted that on the State of Illinois payments report, they’ll see a note under the replacement revenue that the replacement tax was overstated by $300,000. She reminded the committee that in 2015, the state gave out a big schedule of everybody they overpaid. They were saying they were going to start deducting in 2017 in monthly installments the $300,000 they overpaid. When something like that happens, Ms. Palmer is required by the audit to book that into the future as an overpayment. She pulled money that would have counted as revenue in 2015 and it’s now sitting in 2017 to basically reduce it down to $0. They’re not taking from the county’s revenue; they’re taking from that revenue she pulled forward. If someone looks at the total replacement tax revenue, it looks like it’s overstated by $300,000 like the county got some crazy replacement taxes it wasn’t supposed to get.
Ms. Palmer reported that the external auditors are done doing field work. This year went even more smoothly than years past. She thanked all the departments, especially the Treasurer's Office which has a lot of stuff to gather and get to the external auditors in a timely manner, and the HR office. Everyone was very much on the ball this year. Ms. Palmer said she appreciates it. The State’s Attorney’s Office Civil Division has lots of reports to write and things to go through and get to the outside auditors timely. She appreciates all the time and trouble it takes all the other offices to make sure the county has a smooth audit. She expects the draft toward the end of April and the audit will be on time in May.
Mr. Johnston asked if the state shows where the county was overpaid that $300,000. Ms. Palmer said they have not come forward, started collecting, or proven it yet. Nothing has happened, but she has to record it. Mr. Johnston said he has talked to them down there and they can’t give him anything. He can’t find anyone who can tell him the formula they used to pay that replacement tax. Ms. Palmer asked if Mr. Johnston’s township was one they said they overpaid. Mr. Johnston said yes, most townships were. As ridiculous as it sounds, he talked to the gal down there and she literally told him when he pushed her about a formula for how to figure out that tax, they didn’t know. It was put in their computers in 1979 and they run off that. He doesn’t know what kind of computer they had in 1979, but that’s literally what he was told. He doesn’t know what to do about it, but he doesn’t think anyone knows what that formula is. Someone must. Mr. Johnston asked if Mr. Ross knows anything about it. Mr. Ross said no. They reached out and the state never answered.
Ms. Palmer noted that also on her State of Illinois Payments Report, the committee will see the July payment Ms. Ewert was talking about, the Probation Officer salary reimbursement. It’s listed at the bottom. It will say it was for the month of July that came in. The county also, in March, received the primary election reimbursement. She’ll show that next month. That was about $3,200. Probably not until June will they see the general election reimbursement, but those are coming.
5) Consider transfers of appropriations
Mr. Brunk noted that there are two in the General Fund totaling a little over $6,200 and one from the Bridge Fund for $358 and change.
Motion to approve: Kai Swanson
2nd: Rod Simmer
Voice vote
Motion carried
6) Consider appropriation resolutions for funds
Mr. Brunk noted that there’s no new money here. The Sheriffs’ Department has seizure funds and grant funds. There are IDOT grant funds and the SWAG grant.
Motion to approve: Brian Vyncke
2nd: Ginny Shelton
Voice vote
Motion carried
7) Consider claims and TDs
Mr. Brunk noted that along with the claims and TDs amount that were listed in the packets, there is an additional $28,833.25 for Election Day expenses in addition to the original amounts posted.
Motion to approve: Scott Noyd
2nd: Ginny Shelton
Voice vote
Motion carried
8) Consider delinquent tax resolutions
a. Parcel# (11) 0932165, Taxpayer ID 110932165, Blackhawk Township
Motion to approve: Brian Vyncke
2nd: Kai Swanson
Voice vote
Motion carried
9) Consider Health Department Inter-Fund Loan
Mr. Brunk noted that there is no need to take any action on Item 9. It was determined that it’s not needed at this time.
10) Review and award bids received on Monday, March 13, 2017 for road resurfacing project
Mr. Brunk noted that the recommendation is to approve the bid for $1,324,393.01 from Valley Construction.
Mr. Ross added that there were two options. There are 17 miles of road projects Highway is going to do this year. It’s just maintenance resurfacing projects. One of the two options was seal coat with a cape seal on top of it to extend the life of the seal coat a little bit. The life expectancy for that is eight years. The other option was to do an inch and a quarter grind mill of the asphalt surface and put an inch and a half of the asphalt back. There’s about a 14 year life span for the asphalt. The existing asphalt in some locations has been there for about 25 years. They’ve gotten a lot of life out of it. The cape seal average cost per year comes to $117,648/year. The asphalt based on its lifespan comes to $94,600/year. Asphalt is a better product. With that lifespan, even though it’s a higher cost right now, the long term benefit to the taxpayer is more by going with the asphalt.
The public works committee unanimously recommended awarding the asphalt bid to the lowest asphalt bidder, which was Valley Construction at $1,324,393.01
Mr. Maranda asked if Mr. Ross could mention the milling savings. Mr. Ross explained that if they go with the asphalt, they’ll also save an additional $69,000. The millings, when they mill it up, they use those in the right of way for shoulders and other projects the county has. If the county doesn’t do this, they have to buy it and have it trucked in. The difference between buying it or milling it and delivering it is an additional savings of $69,000 for the county.
Motion to approve: Kai Swanson
2nd: Scott Noyd
Voice vote
Motion carried
Mr. Simmer thanked Mr. Ross for breaking that down by year. That’s something they’ve missed in years past is the efficiency of some of that stuff. He likes how Mr. Ross did that. They haven’t done that in the past. They just take the low bid and he thinks that’s bitten them in the butt a few times.
11) Approve quotes for pipe culverts
Mr. Brunk noted that the committee has a two sided paper in front of them. The low bids are from Illowa Culvert and Supply for both.
Mr. Ross explained that there are two different lots they bid out. This is part of the road projects. There are some culverts under the roads that need to be replaced. Since they are going with asphalt, now is the time to do it. They have money in MFT. Rather than bid it, Mr. Massa went ahead and just had quotes come in, which is allowable. He was going back and forth whether or not to have these quotes accepted and then go out and bid it for subsequent work for the rest of the year. The public works committee unanimously recommended these quote amounts for $11,706 and $19,107. Both are to Illowa Culvert and Supply Company. Public works committee recommended awarding the low quote for all culvert work to them and Mr. Ross recommends that as well.
Motion to approve: Ginny Shelton
2nd: Rod Simmer
Voice vote
Motion carried
12) Consider IMRF Resolution for Elected Officials’ Participation in IMRF
Motion to approve: Brian Vyncke
2nd: Scott Noyd
Voice vote
Motion carried
13) Consider request from State’s Attorney’s Office for additional Assistant State’s Attorney position
Mr. Brunk deferred to Mr. McGehee.
Mr. McGehee thanked the committee for hearing him. He will be making a presentation that he be allowed to hire an attorney. In his office they were looking at some numbers that the committee has in front of them. He wants to briefly go over that. Mr. McGehee noted that this is a position for which he wants to hire an experienced Assistant State’s Attorney with anywhere from 5-8 years of experience. That pays, according to the Collective Bargaining Agreement in his office, $70,639.60. This position, however, most likely will be a nonunion position because they will be performing other duties that are outside the union contract. They’ll be a Drug Prosecutor as well as a Civil Attorney.
Mr. McGehee offered the committee a little history. When he became State’s Attorney in 2012, the county cut one of his civil attorneys. Mr. Miller was the Chief of the Civil Division and he retired in October. Mr. McGehee was elected in November and the County decided not to fund that position. He lost a civil position at that time. He has been working with two attorneys in civil. This new attorney will most likely help with some civil responsibilities, including representing the county and other litigation matters.
Mr. McGehee noted that, as identified on the handout, he estimates about $35,000 of the salary will be civil, so almost half are going to be civil responsibilities. The other portion would be the drug fund contribution which is from the Civil Asset Forfeiture Fund. It’s $25,000 from that. The balance will come from the General Fund, which is a relatively small amount. Mr. McGehee noted that this person will be what he considers a floater. Summer is coming and with it, vacations, holidays, sick time, and things like that. This attorney will also be doing some felony work as well to cover attorneys who are unable to or are in some kind of overflow of the criminal cases and maybe even some traffic cases. This year, Mr. McGehee anticipates hiring someone, if the County Board allows it, as of June 1. That would be about half of this year. For this year, the only funding needed out of the General Fund is $2,288.50.
Mr. McGehee recognized that the issue comes next year. He identified $41,910.72 will be needed out of the General Fund. He knows there have been some discussions that there will be a lot of pressure on the General Fund next year. He is trying to work some things out in his office for how they can hopefully deal with that kind of cost. If his office has to make some cuts, he will hopefully present a plan to the Board as it relates to that. That will hopefully prevent his office from losing attorneys. He can’t lose attorneys. They’re already operating with not enough. Since he has been State’s Attorney, he has lost a couple. In the fall of last year, an attorney who had been there for 35 years retired and the funding was not available for Mr. McGehee to hire another lawyer, so he cut that position. He cannot tell everyone how much they miss that attorney. The workload that attorney was accomplishing was substantial in the office. Mr. McGehee needs this attorney to fulfill his responsibilities as the State’s Attorney for Rock Island County.
Mr. McGehee noted that he has not hired a Secretary/Paralegal this year in the Civil Division. That saved the county about $18,666 this year. That was in the budget for this fiscal year. He has not hired someone. That’s how he reduced that number down to the $2,288. Once he gets this attorney, he anticipates he will need to hire a Paralegal because they will have three attorneys in the Civil Division. That’s why that amount is $0 for next year and going forward. Also the Paralegal from last year in the 2016 budget, that’s the bottom $11,949.43, he did not fill that position at that time and saved the General Fund and taxpayers $11,949.43. That does come out of the Civil Liability Fund, not the General Fund, because they do civil work.
Mr. Swanson said he’s trying to recollect, but his understanding is that Mr. McGehee operates with a fraction of the staff of counties Rock Island County’s size, but he can’t remember if it’s one-half or one-third the staff comparable counties. Mr. McGehee said it’s about one-third. Mr. Swanson said thank you very much. Mr. McGehee noted that it’s not a luxury item for him at all. It’s really a requirement for his office. He noted that he has not been as active at providing legal advice to the county because he has been so busy trying cases and being involved in the felony part of his job. He would like to get back involved with representing the county. Mr. Swanson noted that he appreciates the work Mr. McGehee’s team does.
Mr. Johnston noted that if they see some of the civil actions that have come through and look at some of the contract attorneys, it adds up to a lot more money than this. Anything will help. This seems like a small amount to cover some of that. Right now they are contracting out and the contract attorney, got to love them, but he doesn’t think they cut the county a break for the extra hour they put in that someone inside might. He would say it’s needed and well worthwhile. It might cut expenses in the long run.
Mr. Simmer asked if Mr. McGehee thinks that’s enough to get a quality person. He wants to make sure he gets what he needs by all means. He thinks a lot of stuff gets left on the table that they could take a little further if they had the staff. He would like to see these people go away and there are times the State’s Attorney’s Office has to make deals because they don’t have the staff. Mr. Simmer asked if Mr. McGhee thinks that’s enough to get a good, qualified, educated attorney. He’d rather see someone in their twilight years looking for someone to do that has a lot of knowledge. That would be really great. Mr. McGehee said that’s kind of what he is looking for – someone with experience to step right in and do this kind of work. That would be the goal. He wanted to be reasonable with the salary. There are some attorneys out there he can talk to who are more senior attorneys who want to do this for variety of different reasons. He’s trying to approach those attorneys so there won’t be a big training issue. That will be very helpful.
Mr. Noyd agreed and noted that they’re probably getting ahead by doing this. The more money they put into it, the better person they’ll get so they don’t lose out on the other end somewhere.
Motion to approve: Rod Simmer
2nd: Ginny Shelton, Kai Swanson
Voice vote
Motion carried
Mr. Ross noted that in so doing, Mr. McGehee will start the process of getting the attorney hired by June 1. Next month, two resolutions will come back to this committee: one is a $17,500 new money resolution out of the Liability Insurance Fund, which isn’t there yet because the county doesn’t have money coming in from taxes yet, but it will be there shortly thereafter that the money starts coming in. The Liability Insurance Fund was what was bumped up this year to cover anticipated expenses in years forward. There will also be a new money resolution for the $2,289 out of the General Fund. He wanted the committee to be aware of that. Mr. Ross noted that he and Mr. McGehee talked about this and surprisingly he supports this. It’s absolutely needed.
Mr. Noyd noted that they’re probably saving money in the long run even though it looks like they’re spending more per year. Over the long run, they’ll probably come out ahead
Mr. Ross noted that they talked about a couple of other things also. Mr. McGehee is in the process of renegotiating the contract with an attorney who works for the county to save a little bit of money. He’s also fully aware of the challenges associated with next year’s budget and the potential of having to reduce his General Fund expenses. No one knows for certain what that will be yet, but he fully understands. Knowing that, Mr. Ross supports this as well.
14) Consider request from County Clerk’s Office for additional employee
Mr. Brunk noted that they are not actually ready to hear a presentation on this request. He anticipates this coming back next month.
15) Consider Board member per diem/mileage report
Motion to approve: Rod Simmer
2nd: Brian Vyncke
Voice vote
Motion carried
16) Consider approval of Dixon settlement
Mr. Brunk asked if anyone has any need for further explanation or questions. They can go into closed.
Mr. Johnston noted, in general, not to mention any names, this is a prime example. The settlement proposed was agreed on in litigation committee. The attorney fees going with it are an example of how much extra it is because it was an outside contract attorney. That adds up.
Mr. Simmer said he doesn’t remember this one, but he doesn’t want to go into closed. Mr. Vyncke suggested going into closed because he doesn’t remember it either and he’d like to know.
The committee voted on Item 16 after Item 17.
Motion to approve: Rod Simmer
2nd: Kai Swanson, Don Johnston
Voice vote
Motion carried
17) Closed session as per 5 ILCS 120/2(c) (11) – Litigation: when an action against, affecting, or on behalf of the particular public body has been filed and is pending before a court or administrative tribunal, or when the public body finds that an action is probable or imminent
Motion to enter into closed session: Brian Vyncke
2nd: Rod Simmer
Roll call: Brunk – yes; Noyd – yes; Cremeens – yes; Johnston – yes; Shelton – yes; Simmer – yes; Swanson – yes; Vyncke – yes
Motion carried
The finance and personnel committee entered into closed session at 9:03 a.m.
Motion to enter into open session: Don Johnston
2nd: Brian Vyncke
Voice vote
Motion carried
The finance and personnel committee entered into open session at 9:07 a.m.
18) Committee member opportunity for brief comments (no decisions will be made)
There were no additional comments.
19) Adjourn
Meeting adjourned at 9:08 a.m. by Chair Richard Brunk.
http://www.rockislandcounty.org/CountyBoard.aspx?id=40517
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