Peoria Standard

City of East Peoria City Council met December 4. 

Here is the minutes as provided by the council:

Mayor Mingus called the Working Session of the City Council of East Peoria, Illinois to order at 5:30 P.M. with the meeting having been properly noticed.

Upon the roll being called the following answered present: Mayor David W. Mingus, Commissioners Daniel S. Decker, Timothy J. Jeffers, and John P. Kahl.

Absent: Commissioner Gary R. Densberger.

Mayor Mingus explained that we are here for a Working Session and that no final action would take place by the City Council at the meeting. He explained that the purpose of the meeting is to have a Working Session regarding a presentation on the Audit. Mayor Mingus introduced Director of Finance/Treasurer, Jeff M. Becker, and the turned the discussion over to Director Becker. Director Becker introduced Adam Foley, the principle for the Audit for the FYE 2018 from CliftonLarsonAllen LLP (“CLA”) joined by Lindsey Samp who performed the manager detailed review duties of the audit. Mr. Foley presented a handout to the City Council consisting of ten pages on 8 ½ x 11-inch size paper. Mr. Foley summarized the Audit and explained that CLA issued a clean, unmodified opinion. Page 4 of the Audit includes Assets plus deferred outflows of $214 million, liabilities plus deferred inflows of $196 million, net positions of $18 million. Overall, the change in net position of the City is a decrease by $2.2 million. Mr. Foley commented on the fund balance. Pension and budget actuals were stated. Non-major governmental and fiduciary funds are explained on page 82 of the audit. He explained that the revenues exclude the business type funds with total revenue increasing – mainly due to an increase in taxes. The City received 13 months of revenue as compared to 11 months the year before. Increases in expenses went up largely due to police pay, fire overtime increases and ambulance calls, and the early retirement incentive costs. The majority of increase in revenues was due to the increase in tax revenues. The majority of the decrease in the capital projects fund was a result of the increase in debt service expenditures in the year.

Mr. Foley commented on the enterprise zone funds. He explained Internal Control Letter and Governance Letter provided by CLA. During the year, all items in the internal control letter are repeats from the previous year. Material weaknesses were explained. There could be tightening of controls in certain areas by trying to segregate duties. Another recommendation is that there was not a consistent process to reconcile Eastside Centre’s credit card account and there was an unreconciled amount of around $11,000. Nothing new other than the segregation of duties at Eastport Marina. Mr. Foley commented on the Letter of Governance in which he indicated that there was nothing to discuss other than there is a new accounting standard that will take place in the April 30, 2019 for post-employment benefits, healthcare benefits are being recognized in a different way.

Mr. Foley thanked Jeff Becker for his patience. Mayor asked for questions from City Council. There were none.

Mayor Mingus asked for any comments for the audience.

Don Norbits came up to the podium and inquired whether revenues are down and expenses are up and there is an $18 million additional amount. Mr. Foley explained that the $18 million is already on the books for the longterm liability for what employees are earning for healthcare benefits. New amount will be put on the books in the next fiscal year audit. It is a change in accounting standards that will cause the actuarial estimate amount to be recognized. This is a new accounting standard that is more long-term focused. It is a significant estimate as it is forward thinking based on actuarial estimates. Mr. Norbits asked about the revenues being down and the expenditures being up. Mr. Foley explained that the increase in revenues is not only due to the extra months of revenues to the City. Mr. Norits asked about whether all of the increase in expenditures is due to early retirement. Mr. Foley explained that $1.3 million in the increase in expenses is due to the early retirement expenditures. Commissioner Jeffers inquired about the early retirement incentive and some of the payback and cost avoidance in the future. Director Becker stated that there were positions eliminated and hiring of union positions back at lower wages. Commissioner Jeffers commented on the payback of the early retirement. There is an estimate of the payback over time and it is not just a straight cost expense. He stated that it is a positive on the ledger in the future.

Motion by Commissioner Kahl, seconded by Commissioner Jeffers; Mr. Mayor, I move you that we adjourn the meeting.

Yeas: Commissioners Decker, Jeffers, and Kahl and Mayor Mingus.

Nays: None.

Mayor Mingus declared the motion carried and the meeting adjourned at 5:45 P.M

http://www.cityofeastpeoria.com/AgendaCenter/ViewFile/Minutes/_12042018-594