City of Peru Finance & Safety Services Committee met May 26.
Here is the minutes provided by the committee:
THE FINANCE & SAFETY SERVICES COMMITTEE MEMBERS PRESENT: Aldermen Radtke and Payton present; Aldermen Sapienza and Buffo present. Mayor Harl present.
OTHER PERSONS PRESENT: City Clerk Dave Bartley, Treasurer Powell, Alderman Ferrari, Alderman Lukosus, Alderman Ballard, ASM Doug Bernabei, PSM Jeff King, City Engineer Eric Carls and Finance Officer Justin Miller
MATTERS DISCUSSED
Alderman Payton made a motion to approve the minutes of the May 11, 2020 Finance & Safety Services meeting. Alderman Buffo seconded the motion; motion carried.
The Committee reviewed and approved the disbursements for payment on May 27, 2020.
PRESENTATION
OLD BUSINESS
Finance Officer Justin Miller presented the following update:
Finance Report- 05/26/2020
Investment Strategy
Update
• CD market to low; Illinois Funds offer a better rate
Fiscal Year 2021 Budget
Budget hearing set for June 8th
• Mayor Harl discussed options for reducing our monthly contribution to the Peru Volunteer Ambulance Service from $74,000 to $10,000. Committee discussed liability saved from not having PVAS on the City’s insurance. PVAS net income is $150,000 annually
• Finance Officer Justin Miller reported on adjusted budget line of $30,000 in the recreation fund from the cancellation of fireworks and adjusted budget line of $100,000 in economic development due to the cancellation of the TBM Avengers event.
• Mayor Harl asked Clerk Bartley to get a more detailed list on rates and services from PVAS
• Committee discussed and recommended reducing the contribution to PVAS from current rate to $50,000 with no 3% annual increase
• Alderman Lukosus read a letter from BHMG reporting on progress with the new Water Street Substation planning
Fiscal Year 2020 Budget Amendments
Finance Officer Justin Miller outlined the major changes within the FY2020 Budget
Amendments
• Purchase power/sale of power
• Sale of CVS
• Commercial sewer
• $125,000 donation to cemetery
• MFT
• Police Department project
Police Station Funding
• Finance Officer Justin Miller recommended limiting our initial offering for the calendar year with $10,000,000 which keeps a bank qualified tax savings
• Finance Officer Justin Miller noted the handout and the bond offering was the most favorable compared to the bank offering
• Finance Officer Justin Miller noted the differences between the bond (legal and closing costs are imbedded) with bank option there is $65,000 up front
• Alderman Payton noted the bond option is less expensive, but he was concerned with the optics of supporting and legacy projects with local banks
Bonding would afford the local banks a first option to participate
• Treasurer Jackson Powell noted the flexibility with a capital market and the administrative burden on Finance Officer Justin Miller
• Finance Officer Justin Miller noted both option rates were locked in
• Mayor Harl noted the big picture with overall of deferred infrastructure projects and the impact of COVID-19. The plan was to split up the offering between banks and bonding.
• Committee was overall in favor of the bonding option
Committee discussed and recommended a $500.00 contribution to IVCIL for the curb address painting fundraiser
Committee discussed and recommended a $10,000 contribution to Illinois SBDC at Starved Rock Alliance
NEW BUSINESS
PUBLIC COMMENT
CLOSED SESSION
Alderman Buffo made a motion to adjourn. Alderman Payton seconded the motion.
Meeting adjourned at 7:01 p.m.
https://www.peru.il.us/city-government/minutes/finance-and-safety-services-minutes/2020-fs-1/4929-finance-and-safety-services-minutes-05-26-20/file
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