City of Peru Finance and Safety Services Committee met June 22.
Here is the minutes provided by the committee:
THE FINANCE & SAFETY SERVICES COMMITTEE MEMBERS PRESENT: Aldermen Radtke, Sapienza and Payton present; Alderman Buffo absent. Mayor Harl present.
OTHER PERSONS PRESENT: Deputy Clerk Stephanie Piscia, Treasurer Powell, Aldermen Ferrari, Waldorf, Lukosus, Alderman Ballard, ASM Doug Bernabei, PSM Jeff King, City Engineer Eric Carls and Finance Officer Justin Miller, Corporate Counsel Scott Schweickert, Special Counsel Herb Klein, Tom Collins of The News Tribune and Jeremy Aiken of WLPO
MATTERS DISCUSSED
Alderman Sapienza made a motion to approve the minutes of the June 8, 2020 Finance & Safety Services meeting. Alderman Radtke seconded the motion; motion carried.
The Committee reviewed and approved the disbursements for payment on June 24, 2020.
PRESENTATION
Board Members Dave Potthoff and Don Piano along with Peru Volunteer Ambulance Service (PVAS) Director Brett Hanson addressed the Committee regarding cutting funding received from the City of Peru.
Mr. Potthoff began by stating how essential PVAS is to the community, noting having police, fire and ambulance are essential services and how important the revenue source is from the city.
Mr. Piano, a founding member of PVAS provided a brief history of the ambulance service. Mr. Piano stated before PVAS was funded, funeral directors provided the service. Mr. Piano stated PVAS was formed in the 1980’s and the City of Peru provided the training and purchased the ambulance and housed it at the fire department where it was held for many years. Mr. Piano stated the building known as Peru Volunteer Ambulance Service was built in 1998. Mr. Piano stated until 2012, PVAS was covered under the City of Peru’s insurance umbrella and now is payed through the service which is very costly. Mr. Piano stated PVAS depends on the city’s contribution to pay many expenses.
Mr. Potthoff stated he was part of the city when the ambulance service was cut from the city’s insurance policy, amounting to $100,000 in savings. Mr. Potthoff stated PVAS doesn’t have a very big revenue flow especially with Medicare and private insurance paying a fixed amount for services. Mr. Potthoff noted the mandated training is very costly and capital costs continue to rise despite the fact that revenue doesn’t increase. Mr. Potthoff stated should the city cut funding to the service, it could be forced to close and then it would be the city’s responsibility to provide the service and urged the committee not to cut funding.
Alderman Potthoff stated he has an issue with cutting an essential service.
Alderman Lukosus asked if PVAS has been able to collect money from the residents. Mr. Potthoff stated that according to the 2019 audit $1.16 million was collected.
Alderman Sapienza asked what the total budget is. Mr. Potthoff noted $1,667,000 in revenue. Alderman Sapienza stated he is not in favor of cutting essential services. Alderman Potthoff stated the revenue does not cover capital expenses.
Mr. Potthoff stated the Payroll Protection Program (PPP) really helped through the pandemic along with a one-time boost from Medicare.
Alderman Radtke asked how many employees does PVAS have. Mr. Potthoff stated they have 13 full-time employees and 22 paid-on call employees.
Mayor Harl stated he asked the council to look at all expenses to see where cuts could be made. Mayor Harl stated there are no plans to cut funding to PVAS and that no one in the city wants to own an ambulance service.
OLD BUSINESS
Finance Officer Justin Miller presented the following update:
Finance Report- 06/22/2020
Investment Strategy
➢ Update
• Staying liquid waiting for CD’s to improve
Grant Items
➢ Plank Road
• No update
Police Station Funding
➢ Bond Rating
• Call with Moody’s was very good. Staying at the AA3 status
• Will be locking in interest rate soon
FY2020 Audit
➢ Update
• This year’s process is being done electronically and we are half-way through with the process.
Mayor Harl noted that Finance Officer Justin Miller did a fantastic job on the regarding the bond rating.
Finance Officer Justin Miller stated Moody’s was very impressed on how we approached the budget.
Committee discuss approving annual membership fees in the amount of $3,088.50 to NCICG. City Engineer Eric Carls stated we use NCICG more now than ever as there are more grant opportunities out there due to the COVID-19 pandemic.
Committee discussed donation request from the Parents of LP Class of 2020 Prom 3.0. Aldermen reached a consensus to help fund the prom. Committee asked Deputy Clerk Stephanie Piscia to
inquire what dollar amount they are requesting. Alderman Payton stated he don’t have an issue helping kids stating their senior year got stolen from them.
NEW BUSINESS
PUBLIC COMMENT
CLOSED SESSION
Alderman Payton made a motion to adjourn. Alderman Sapienza seconded the motion. Meeting adjourned at 6:38 p.m.
https://www.peru.il.us/city-government/minutes/finance-and-safety-services-minutes/2020-fs-1/4971-finance-and-safety-services-minutes-06-22-20/file
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