Peoria Standard

Collaborative committee met Tuesday, July 26.

Approved 9/27/16

Minutes

County Board and Elected Officials

Collaborative Committee

July 26, 2016

2:00 P.M.

The meeting was called to order at 2:15 p.m. by Vice-Chairman Williams.

Call to Order

Mr. Sorrel advised that there are no substantive updates due to the lack of a state budget.

Legislative Update

Mr. Sorrel advised that meeting requests have gone out for the next scheduled strategic planning

sessions, which will be more traditional sessions. The facilitator, Craig Rapp, is affiliated with the

Center for Governmental Studies at NIU. The two sessions have been scheduled for Monday, August

22, 2016 and Tuesday, August 23, 2016 from 4:00 p.m. to 8:00 p.m. at the Jump Trading and

Simulation Center on the OSF campus. He advised that discussion will focus on implementation,

which will enable the management team and elected officials and their management teams to work

on implementation going forward. He asked that Board Members complete the Strength,

Weaknesses, Opportunities, Threats (SWOT) Analysis Survey so that the facilitator may be properly

prepared for the sessions.

Efficiency Study Implementation/Strategic Planning

Mr. Dubrowski summarized the three revenue categories within General County that are of

concern: CPPRT, Income Tax and Unincorporated Sales Tax. He advised that the underlying

growth rate for personal income tax is expected to be slightly higher in 2016 than in 2015; however,

the Corporate Property forecast has been revised downward which translates into no economic

growth for CPPRT in 2016. He advised that while the State's economy has strengthened over the

past year and will continue to do so in 2016, it is important to recognize that challenges remain and

the State's economic rate will grow at a slower rate than the nation as a whole.

General Fund Report

COUNTY BOARD

MEMBERS

PRESENT:

Sharon Williams - Vice-Chairman; Robert Baietto, Allen Mayer,

Stephen Morris, Andrew Rand - Board Members; Jerry Brady -

State's Attorney; Elizabeth Derry - Regional Office of Education;

Jason Hauer - Recorder of Deeds; Gene Huber - Health Department;

Edward O'Connor - Treasurer; Steve Sonnemaker - County Clerk;

Robert Spears - Circuit Clerk; Carol VanWinkle - County Auditor

MEMBERS

ABSENT:

Mary Ardapple, James Dillon, James Fennell, Michael Phelan,

Johnna Ingersoll, Stephen Kouri, Michael McCoy,

OTHERS PRESENT: Scott Sorrel - County Administrator; Mark Rothert, Shauna

Musselman - Assistant County Administrators; Steve Giebelhausen -

State's Attorney Office; Thomas O'Neill - County Board Member; Eric

Dubrowski - Chief Financial Officer; Randy Brunner - Finance;

Nicole Demetreas - Treasurer's Office; Gretchen Pearsall - Director

of Strategic Communications; Doug Gaa -Sheriff's Department; Tom

Bride - Elections Commission

Mr. Dubrowski stated that one of the largest concerns related to Peoria County is the result of the

recently identified over-allocation of CPPRT and the subsequent under-allocation of local

government distributive funds (LGDF) which is most closely associated with income tax, and the

associated adjustments that will have a large impact on this year's distributions. He commented

that the over-allocation of CPPRT was corrected going forward beginning with April 2016

disbursements, and noted that the original proposal by the State was to make a downward

adjustment for errors prior to April 2016 distributions over a two-year period starting in January

2017. He added the State overpaid all governments a total of $170 million and that recent

conversation with State officials indicate that the State will take $100 million in the first year and

$70 million in the second year, as opposed to two equal installments over the two years. The

Finance Department has booked liabilities for “unearned revenue” as of 12/31/2015 in order to

properly reflect those adjustments.

Mr. Dubrowski stated that it is uncertain how much CPPRT will decrease in 2017, as the State has

not released how much is related to overpayment. He advised that he is meeting on a monthly basis

with his counterparts in other counties to see how they are handling some of these issues, and he

anticipates speaking with his contacts at the Department of Revenue seeking direction.

Mr. Dubrowski advised that in 2015, LGDF income tax receipts were strong despite the CPPRT

over-allocation that resulted in the income tax (LGDF) distributions being understated in 2014-

2015. He noted that some of the increases were due to final tax payments that were greater than

anticipated, and advised that underlying growth will be driven primarily by income tax receipts

from wages and salaries. He said that he has inquired of the Department of Revenue the status of

the understated LGDF revenues, but has received no response.

Mr. Dubrowski stated that Unincorporated Sales Tax showed positive growth in the 2nd quarter of

2014 through the majority of 2015, as an unknown business was added to the Department of

Revenue's system in 2014; however, the business appears to have been removed in late 2015. He

added that although Unincorporated Sales Taxes have been problematic in 2016, with adjustments

necessary for 2017, a $314,000.00 Ameren payment received in June as unanticipated

miscellaneous income will provide a buffer for this year. He advised that a bill was recently passed

which will enable the County to enter into an Intergovernmental Agreement with the State to

obtain a limited amount of data related to unincorporated areas of the county.

Mr. Rand asked the impact on the budget from decreased fees, fines and charges. Mr. Sorrel

advised that fines and fee revenues are down across the State. He stated that the reduced revenues

are being taken into account in the preparation of the 2017 budget. Mr. Dubrowski advised that

revenues in the General Fund are down $951,000.00 compared to historical year to date budget.

He advised that much of that decrease is located in General County, also includes fees, fines and

charges. Mr. Sorrel advised that approximately $200,000.00 to $250,000.00 of that total is in the

area of charges for services.

Mr. Sorrel introduced Gretchen Pearsall, the new Director of Strategic Communications.

Miscellaneous

There being no further business, the meeting adjourned at 2:45 p.m.

Adjournment

/jk