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Minutes for the Finance Committee meeting on April 17, 2003.
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Minutes of
Finance & Administration Committee Meeting
April 17, 2003 @ 4:30 p.m.
Alderman Alec Farmer called the meeting to order. Aldermen Jim Hargis, Ann Williams, Darrel Dover, Harold Perrin and Alec Farmer were present. City Clerk Donna Jackson, Finance Director Larry Flowers, Human Resources Director Suzanne Hackney, Grants Coordinator Jim McKinnon and Becky Sharp were present.
The minutes of the February 20, 2003, the March 17, 2003, and the March 20, 2003, Finance and Administration meetings were handed out. No action was taken.
The committee discussed the city’s current non-uniform employee pension fund, the Defined Benefit plan. Mr. Flowers introduced representatives from Principal Financial Group. Ms. Rae Willis of PFG made the presentation. The city is currently $1.8 million underfunded with a fund balance of approximately $1.3 million. Three options were provided to bring the fund current: immediate payment, 10-year payment or 30 payment. The fund allocation is stable - 16%, bonds - 9%, domestic - 54%, foreign - 12%, & specialty - 8%. The fund is on the calendar year. PFG will provide fund recommendation service fee schedule. The return for the 1st quarter of 2003 was -1%.
The committee discussed the salary survey ranking. Ms. Hackney reported that 6 firms had responded to the RFP. Ms. Hackney provided a review of the firms. The committee then selected the top three firms. Upon a motion by Darrel Dover and second by Jim Hargis, the committee selected Johanson & Associates, Condrey & Associates and The Hay Group as the top three firms and asked Ms. Hackney to schedule an interview with the firms.
Ms. Hackney advised the committee that an employee had used up her sick leave and was requesting additional time. Ms. Hackney stated that the situation did not meet the personnel policy requirements for extended leave. No action was taken.
Ms. Hackney advised the committee of another employee requesting an additional 30-day non-paid leave extension. Ms. Hackney advised the committee that this situation met the personnel policy. Upon a motion by Alderman Dover and a second by Alderman Perrin, the committee unanimously approved the extension.
Alderwoman Williams asked Ms. Hackney to review the personnel policy handbook to ensure compliance with the Family Medical Leave Act.
The committee then discussed the independent audit RFP. Upon a motion by Alderman Dover and a second by Alderwoman Williams, the committee unanimously approved publication of the RFP.
The committee then discussed the budget calendar resolution. Upon a motion by Alderman Dover and a second by Alderman Hargis, the committee unanimously recommended its adoption by the council.
The committee then discussed the purchasing policy resolution requiring invoices which have not met the city’s purchasing procedures to go before the Finance Committee for review and approval. Upon a motion by Alderman Dover and a second by Alderwoman Williams, the committee unanimously recommended its adoption by the council.
The committee then discussed the budget reserve policy resolution. Mr. Flowers reported that he had reviewed reserve policies from other large Arkansas cities which ranged from 10% to 20%. No action was taken.
The committee then discussed a travel and expense reimbursement policy. Ms. Jackson presented a proposal. The committee reviewed the proposal. No action was taken.
The committee then discussed the need to reimburse Alderman McCall and Farmer for a recent trip to Washington, DC. Mr. Flowers reported that last year, the city reimbursed Alderman Perrin and Young, one-half the cost based upon the Chamber of Commerce invoice. Upon a motion by Alderman Dover and a second by Alderwoman Williams, the committee unanimously recommended reimbursement of the expenses.
The committee then discussed the need to update and correct the city’s municipal code book. Ms. Jackson reported that the code book had not been updated in 12 years and that the Arkansas Municipal League would provide this service for $4,000.00. Mr. Flowers stated that the money existed in the current budget for this expenditure. Upon a motion by Alderman Hargis and a second by Alderman Dover, the committee unanimously approved this expenditure.
The committee then discussed the list of city property parcels provided by Ms. Jackson. The committee asked Ms. Jackson to recommend procedures for complying with state law at the next regular meeting.
No report was given by Mr. McKinnon concerning grants. Alderman Farmer asked that Mr. McKinnon report on Randle grant writing contract at next meeting.
Alderman Dover reported that no meeting had taken place in the last 30 days concerning GASB, but that the mayor and David Eagle were gathering information.
Ms. Sharp reported on the city’s franchise fees as compared to other Arkansas cities. She also requested that the personnel committee review long-term employee vacation policy. Ms. Hackney stated that the salary survey should include this information.
There being no further business, the meeting was adjourned at 6:45 p.m.