Loading...
HomeMy WebLinkAbout11/26/1985 COW MinutesMINUTES COMMITTEE OF THE WHOLE DECEMBER 10, 1985 I. ROLL CALL The meeting was called to order at 7:33 p.m. Present at the meeting were: Mayor Carolyn H. Krause; Trustees Ralph Arthur, Gerald Farley, Leo Floros, Norma Murauskis, George Van Geem and Theodore Wattenberg. Also present at the meeting were: Village Manager Terrance Burghard, Assistant to the Village Manager Michael Janonis, Director of Finance David Jepson, Chief of Police Ronald Pavlock and Mr. Sal Rizzo from A. S. Hansen and Company. Also present was one person from the print media. II. MINUTES The Minutes of the Committee of the Whole meeting of November 26, 1985 were accepted and filed. III. CITIZENS TO BE HEARD There being no citizens present who wished to make a presentation before the Committee of the Whole, the Committee moved on to the next item of business. IV. VILLAGE'S INSURANCE COMPENSATION PROGRAM Finance Director David Jepson reviewed with Committee members his memo outlining the proposed expansion of the Village's. Flex Benefit Program which was established earlier in the year to cover the payment of employee health insurance premiums with pre-tax dollars. Mr. Jepson explained that the proposed expansion of the Flexible Benefit Compensation Plan would allow full-time Village employees to pay for an expanded array of benefits with pre-tax dollars thereby increasing their purchasing power without a corresponding cost to the Village. Eligible costs included such health care items as dental and vision care, health insurance deductibles and co -payments, child care costs and additional life insurance coverage. The philosophy behind this program was to put Village employees on an even keel with employees in other munici- palities and private industry where all fringe benefits, such as health insurance, are paid 100% by the employer. Concomitantly, the addition of this program would allow the Village to more easily resist requests by employee groups to expand the current fringe benefit package the Village now offers to cover such items such as dental, vision and extra life insurance. Mr. Sal Rizzo, of A. S. Hansen and Company, a benefit consultant group, explained to Committee members that the Plan was acceptable under the current Internal Revenue Service Code, and that the proposed Tax Reform legislation now pending in Washington would probably not affect the eligibility of such flex benefit programs. Additionally, Mr. Rizzo expanded upon Mr. Jepson's statement that the cost to the Village was minimal in that employees were simply being allowed to purchase the same type of medical and other benefit coverage they purchase now with taxable income, but now with pre-tax dollars. Mr. Rizzo explained that the concept behind this type of plan was to allow an employee to pick and choose those health care and other benefits that that individual felt he needed to best protect his family. Upon questioning by Committee members, Mr. Jepson explained that there was a minimum of administrative staff time and expense that would be required to administer the program. Mr. Jepson explained that basically the Village would handle a bookkeeping - type function in that it'would show deposits into an employee's spending account and any transactions or payments out of that account over the year. Additionally, ¢'fir. Jepson stated that for the f i rst year of the Plan's implementation, staff would have to monitor employee use of the program on a close basis to ensure that employees did not suffer loss of income due to a misunderstanding or imprudent use of the system. He also indicated that a detailed booklet fully explaining the program and its mechanisms would be drafted _by staff and distributed to employees so that they would have time to study the program before its implementation on February 1, 1986. Another aspect of this program, but not part of the official Plan document establishing the Flexible Benefit Compensation Program, was the proposed ability of employees to cash in certain accrued benefits such as vacation and personal time. With income received from this "cash -in," the employee could then purchase flex dollars or put into Deferred Compensation or an IRA or to be used as disposable income. -2- Village Manager Terrance Burghard explained to Com-nittee members that the cashing in of vacation time and personal time could result in a net cos -t to the Village of $10,000 mainly from the loss of investment income. However, Mr. Burghard pointed out that the Village could expect to realize a real increase in productivity in that vacation time not taken presently or in the future dispensed with the need to fill vacant positions at overtime rates of pay. Mr. Burghard estimated that a 16% increase in productivity would cause the Village to break even on its $10,000 loss of investment income. Committee members were generally favorable with regard to the implementation of this Program. Staff was instructed to draft necessary Resolutions for the adoption of the Plan document and be available to offer further clarification on certain points of the Program. V. SAFETY BONUS SYSTEM Assistant to the Village Manager Mike Janonis briefly reviewed with Committee members the activities of the Executive Safety Committee over the past eighteen months in its attempt to develop and implement a Safety Bonus Award System. Mr. Janonis explained that the original premise of the Award System was to foster increased safety through friendly competition both within Departments and between Departments. In'designing a program, the Executive Safety Committee found that the Village of Mount Prospect already enjoyed a reduced rate of loss' due to on-the-job injuries and it was 'their hope that an Award Program would reduce that incidence even further. However, upon a thorough review of existing Award Programs in other municipalities, it was the consensus of Committee members that the design and implementation of a completely objective and equitable bonus system was not feasible. Safety Committee members felt that the $6,000 allocated for the Program would be better spent on a Safety and Health Awareness Program that did not result in employee awards. Subsequently, the Village Manager's office determined that the funds would best be utilized out of the Manager's office and that a program using available safety and health films, speakers and printed material would be implemented. The Corrmittee of the Whole members agreed with the Manager's recommendation that plans for a Safety Bonus Award System be dropped and that in its place a Safety and Health Awareness Program be implemented through the Manager's office. -3- VI. CHARITABLE AND CIVIC CLUB APPROPRIATIONS This item was placed on the Agenda at the request of Trustee Gerald Farley because he missed the original discussion of this item when it was first brought before the Committee of the Whole for its review. It was Trustee Farley's feeling that the Finance Comnission could serve a useful function as an initial reviewing body for requests from charitable and social organizations. It was his feeling that such recon endations would not be binding on the Board and that, therefore, the Board make the final determination as to whether a particular organization was to receive funding. Discussion among Committee members produced a general consensus that the Finance Commission could serve a valuable function in reviewing requests and producing recommendations which the Village Board could use but was not bound to follow in its deliberations. Trustee Arthur, however, raised the question of whether it was Village government's role to spend tax money on these charitable organizations. It was his feeling that such expenditures should be left up to individual citizens through their own private contribu- tions. It was the consensus of Committee member's that all future requests for funding be sent to the Finance Commission for their initial review and recommendation. VII. MANAGER'S REPORT Village Manager Terrance Burghard reported that LAKE MICHIGAN WATER had been turned on in the Village as of Friday, December 6 but that because of minor difficulties that water was not flowing generally to Mount Prospect residents. Mr. Burghard also reported that on Tuesday, December 10, a small ceremony was held at the Highland Avenue Pumping Station to inaugurate the official turn on of the system in Mount Prospect. The Village Manager reported that negotiations for property acquisition were continuing for the downtown TAX INCREMENT FINANCING DISTRICT and that the Village was to take receipt of the initial TIF Bonds before year end. Mr. Burghard stated that the next two Tuesdays in December fell on Christmas Eve and New Year's Eve respectively and it was the consensus of Committee members that no meetings be held on those two evenings. -4- Mr. Burghard reported that progress was being made on the ARTS AND CULTURAL COMMISSION and that a set of Goals for the Commission was being drafted and typed up for distribution to Commission members at their next meeting. VIII.ANY OTHER BUSINESS There being no other business to discuss before the Conmittee of the Whole, the Committee moved on to the next item of business. I X . ADJOURNMENT There being no further business to come before the Corrmittee of the Whole, the meeting was adjourned at 8:52 p.m. Respectfully submitted, MICHAEL E. JANONIS MEJ/rcw Assistant to the Village Manager �5-