The Finance Committee of the DeKalb County Board, met on Wednesday, February 7, 2007 @ 7:00p.m. in the Administration Building’s Conference Room East.  Chairman Michael Haines called the meeting to order.  Members present were Jerry Augsburger, John Hulseberg, Roger Steimel and Ruth Anne Tobias. Mr. Vince Faivre and Ms. Julia Fullerton were absent.  Others present were Gary Hanson, Michael Stuckert, Ken Campbell, Joan Berkes-Hanson, Sheriff Roger Scott and Greg Millburg.

APPROVAL OF THE MINUTES

          Moved by Ms. Tobias, seconded by Mr. Hulseberg, and it was carried unanimously to approve the minutes from December 6, 2006.

APPROVAL OF THE AGENDA

          Moved by Mr. Augsburger, seconded by Ms. Tobias, and it was carried unanimously to approve the agenda as presented.

PROPERTY TAX ABATEMENT

          Mr. Gary Hanson, Deputy County Administrator, said that this is for the 1997 bond issue and it was refinanced in 2005, but there is an automatic levy that the County Clerk is required to do which protects the investors then they will get their money from property taxes.  However, if we have enough money on hand, we can to abate the property taxes. We would like to abate $551,518.00, said Mr. Hanson.

          Mr. Steimel asked if this is a consistent amount?  Mr. Hanson said that relatively speaking, the nursing home pays their own share, and we set aside a little bit each year into the county’s renewal and replacement fund. So that number is smaller by $25,000.

          Moved by Mr. Steimel, seconded by Mr. Augsburger, and it was carried unanimously to forward this resolution to the full board for approval.

          Chairman Haines said to clarify a point, the money that is paying this down is coming out of the nursing home’s budget, right?  Mr. Hanson said yes.  And the renewal line that you just spoke about is our line?  Mr. Hanson said that it is set aside for that campus (Health Facility).  Have we ever not done one of these?  Mr. Hanson said no.  He did remind the committee that this is outside of the tax cap, that is, the money is put in before the tax cap.

Finance Committee Minutes

February 7, 2007

Page 2 of 4 pages

CHANGES TO FORMAT OF THE MONTHLY CLAIMS LIST

          Mr. Hanson passed out the proposed changes to the monthly claims list.  He explained that this proposal is a way to streamline the way that we pay our bills.  The claims list is prepared for the County Board in the packet each month, he continued.

          The committee discussed the Sequence and the Notes to Board items.  The committee thought that the Sequence changes were very practical (see sheet attached to these minutes).  They said that it might be nice to see some of the comments that departments might make regarding a certain claim. Mr. Hanson explained that if the committee would prefer this item that it may generate a third more paper to produce.

          Mr. Hulseberg asked if it could be produced electronically?  Mr. Hanson said yes.

          The committee decided to come back to this item at the end of the meeting to discuss the increase in paperwork further and see if it is worthwhile to do.

          The committee then discussed the items regarding per diems and mileage paid that appear in the claims.  Since this is paid through payroll it is not easily inserted into the claims list, said Mr. Hanson.  The committee asked Mr. Hanson if it would save time for his office?  Mr. Hanson said yes, by combining the mileage and per diem together it would save time.  The committee decided to keep the mileage and per diem combined.

          The committee then discussed whether or not they wanted an additional report published showing how much the county pays annually to each vendor.  If it would be useful to the county board, then his office would produce an Annual Report for the board showing the vendors in alphabetical order and the total amount that vendor is paid each year.  The committee said that they prefer that as opposed to a monthly report.

          The committee returned to discuss the Notes to Board item.  The committee agreed that they would like to try it once and see how it works out.  Mr. Hanson said that his office would be able to try it out in a couple of months.

          The committee agreed to leave the distribution of the claims list as is.

Finance Committee Minutes

February 7, 2007

Page 3 of 4 pages

JAIL PROBLEM DISCUSSION

          Mr. Hanson handed out an update on the Jail Problem Task Force meetings.

          Chairman Haines said that the committee was formed to look at what to do about the overcrowding issue in the jail.  The options are to reduce the load at the jail or continue to have the same number and find more funding to do something about it, either rent space for them or house them one way or the other.

          The update addresses the need to utilize the Public Safety Building for at least ten years and how to fund it.

          Mr. Hanson said that we are all looking at other options yet too, besides what we have before you this evening.  This is what we have come up with so far, he continued.  Our growth would be the “x” amount and then take the annual growth and divide it into three different areas, cost of living increase, 4% set aside in a savings account to build and operate a jail, and growth, that is, try to increase service demands as the population grows.

          Under Column K he took the $20 million and increased it by 5% for each year.  Take that down to the figure in the box on line 9 (see sheet attached to these minutes), which shows that in 2016 it will then cost the county $31 million to build.  Likewise, in Column L it would cost the County $4 million to operate the jail now and then if we took that and increased it by 7% it would cost us in 2016 - $7.3 million.  We are trying to build up to those figures.  A word of caution, he continued, is that the $20 million and $4 million dollars are the studied figures from 2003.

          Under Column C the figure under 2007 is $15,785,000.00 which is what the County is levying this year.  Mr. Hanson said that he took that number and if you go down to the year 2016 – it amounts to $34,283,335.00.  We would be starting to save the money every year and by year 9 we are at $31 million, right at the level that we need to be at to construct the jail.  You will also note that under Column G in 9 years we will have operating money equal to $7,621,482.00.  That’s the good news, the bad news is if we start building it based on what we need today, we will be full by the time we finish the construction and will be running out of space immediately.

          Mr. Hanson pointed out that in Column J, it does not include interest.

          Chairman Haines said the he is speaking in favor of this concept.  The idea that we are responding actively, that we still have a full jail and to be able to put aside money to build and operate a jail without going to the voters. 

Finance Committee Minutes

February 7, 2007

Page 4 of 4 pages

There could be another referendum in the future too, for either building a new jail or for the operating costs.  He feels that the County is doing the right thing here, which is setting forward a fiscal plan.

          Mr. Steimel said that he supports this concept and that we should begin a savings account for the jail.

          Mr. Hanson reminded the committee that the State’s Attorney’s Office and the Judicial System are running out of space.  We need to use ingenuity there too.  If they don’t have resources, it will clog up the judicial system again.

          Chairman Haines said that the consensus of the committee is that we support this concept.

ADJOURNMENT

          Moved by Ms. Tobias, seconded by Mr. Augsburger, and it was carried unanimously to adjourn the meeting.         

                                                          Respectfully submitted,

                                                          ____________________________________         

                                                          Chairman Michael Haines

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