The Administrative Services Committee of the DeKalb County Board met Wednesday, September 5, 2001 at 7:00 p.m. at the DeKalb County Government Administrative Building's Conference Room East. Chairman Steimel called the meeting to order. Ms. Conway, Mr. Hoffman, Ms. Leifheit, Mr. Morreale, Mr. Pritchard, Ms. Tobias, and Mr. Wilson were present. Mr. Hutcheson was absent. Also present were Ms. Joan Berkes-Hanson, Mr. Ray Bockman, Mr. Ken Campbell, Ms. Margi Gilmour, Ms. Karen Grush, Mr. Gary Hanson, Ms. Sharon Holmes, Ms. Christine Johnson, Mr. Greg Millburg.

                Ms. Leifheit moved, seconded by Ms. Tobias to accept the minutes of June 6, 2001. Motion carried unanimously by a voice vote.

                Mr. Wilson moved, seconded by Mr. Hoffman to approve the agenda. Motion carried unanimously by a voice vote.

                Ms. Christine J. Johnson, County Treasurer distributed a resolution to approve the tax deed for parcel 08-12-476-003 to the committee (a copy of which is attached with these minutes and will be placed on file in the Finance Office). Ms. Johnson was called upon by Chairman Steimel to review the tax deed process. Ms. Johnson stated that properties that have been delinquent many years are purchased by the County at the tax sale. The County contracted with Joseph Myer & Associates to go through the process of taking deed to the properties on behalf of the County who in turn offers them up for sale through a catalog sale process she said. Ms. Johnson told the committee the County recently sold a piece of property through that process.

                Mr. Morreale asked Ms. Johnson if the committee could give her general authority to sign the deeds rather than bringing them forward to the committee. Ms. Johnson stated that she believed that the deeds must be signed by the County Board Chairman.

                Mr. Morreale asked if the County would be taking in more revenues than the County planned on spending this year? Mr. Hanson said that he always estimates revenues conservatively and that salaries are always annualized even if some changes are only for a partial year. Mr. MorreaIe asked if this was the largest increase in 6 years? Mr. Hanson said the tax levy schedule shows a 8.2% in 1997/98. He went on to say that the effect on an existing homeowner would have a 4.1% increase based on this budget which is adjusted for increased assessed value homeowner. Chairman Steimel asked what the new construction cost was a year ago compared to this year's 3.4%? Mr. Hanson said that the he estimated it at 3% but it ended up being 3.4 or 3.5%. Mr. Bockman stated that one of the problems of determining estimates relates to the County's Fiscal year being December 1^st. He reported it is the only governmental unit putting together a budget actually before they know precisely what that new construction amount will be. He said that he would recommend that the County publish a rate that is higher than the County anticipates needing to protect the County from last year's situation reoccurring. He stated that the County lost $40,000 -$50,000 in base which the County will never get back. Chairman Steimel asked if Mr. Hanson's figures were conservative? Mr. Hanson said he had conferred with Margaret Whitwell, Chief Assessor and thought the figures would be a good estimate. Mr. Bockman said it was their recommendation to publish and adopt a levy which is slightly higher than is needed. Mr. Hanson stated that if a levy is imposed at the maximum, the choice is to automatically put it into operations or put it towards future needs.

Item #4 is a new item in the budget to create a Renewal and Replacement Policy for the new Health Facility, reported Mr. Hanson. At some point repairs will need to be done and the recommendation is to start saving now, he said. Mr. Hanson stated that an initial fund of $50,000 adds to the property tax levy about 3/10 of 1%.

Item #6 is a substantial revenue for the County said Mr. Hanson. Mr. Bockman told the committee about a new business that moved into Sycamore and had negotiated with the City of Sycamore to receive a tax give back arrangement based on the City's sales tax. He explained that Sycamore, being a Home Rule Municipality, has the legal authority to rebate all or portions of their sales tax to individual businesses as an incentive to locate into their jurisdiction. He reported that the County does not have authority and did not enter into those discussion but the sales are taxable at the point of sale so the County is a benefactor of this business location as well. He estimates in the coming year that the County will receive some $600,000 in additional sales tax revenues from this project. He stated that it is recommended for the utilization in the 1^st year of these funds to go half into operations and the other half into the health insurance reserve.

Item #7 Mr. Hanson stated that some union contracts are up for renewal. A cost of living increase is recommended using the same rate as the property tax cap 3.4% and a merit increase of 0-2% which is 1% less than the last several years.

Item #8. Mr. Hanson stated that health insurance is a very big problem area for the County and frustrating for employees to pay additional increases. He said that the increase is 12% this year which won't cover the costs. Mr. Bockman stated that there is a bright light in that this year's forecast as it doesn't appear as dismal as the two years proceeding it. He stated that the County had back-to-back years where the County penetrated the aggregate point of attachment (which is improbable) but done the past two years in a row. He said that the underwriter's estimate is based on claims in the proceeding year, then they elevate that number for medical inflation, and then add 25% to make sure the client cannot get to the number that they are guaranteeing to pay beyond. He explained the reasons the County reached the number twice in back-to-back years was due to an unusual combination of events. The County had an improbable number of cases that penetrated the specific point of attachment and any individual cases in a year that goes beyond becomes the reinsurer's problem. He did say that this year's forecast looked much better. He stated that health insurance is a much treasured benefit and heavily utilized recruitment tool to attract and retain quality employees and the County has many valued employees. He stated that the County continues to bare 75% of the cost of $720.00 for family insurance per month per employee. He said that as fall progresses they hope to refine the numbers and bring it to the committee each month to give a better picture of the situation. A discussion ensued to research insurance premiums in the private industry and research efforts to trim the amount paid by the employees.

Items #10-19 are responses to requests from departments for specific increases for an employee upgrade or new positions said Mr. Hanson. He reported that there were a lot more requests than normal this year.

Item #21 Is a reminder by Mr. Hanson to the committee of their recommendation on April 4, 2001 to increase pay for Election Judges.

Item #22 Addresses the Highway's budget and priority for their projects reported Mr. Hanson. He asked Mr. Bockman to address the specific recommendation. He said that money should be taken not out of the transportation improvement but to look at the wisdom of funding the construction or any portion of the construction of Airport Road. He stated that Airport Road should be development driven. He did add that the County may want to build the road at some point but not at this point in time. He stated that he didn't see the need had been demonstrated for this road to date. He added that there was $50,000 in this year's budget and another $1.6 million in the out year's for this project.

Item #25 is a new item out of Special Project Funds for Regional Planning, said Mr. Hanson. Mr. Bockman said that the County is seeking an appropriation over the next two years of $200,000 to fund a collaborative effort with as many of the communities in the County who wish to participate. Mr. Bockman stated that he and Mr. Paul Miller, Planning & Zoning Director have had meetings with County Board Members and Mayors from all the communities in the county to discuss planning for a possible effort of joint powers to take a more regional approach in planning. He stated that the 1^st phase would involve the writing, rewriting, and updating the comprehensive plans for each of the partners. He continued saying that the plans would be woven into the fabric of the countywide comprehensive plan. He thought it would take 1 ½ to 2 years to accomplish. The original commission may even be appointed prior to the adoption of the plans and would actively begin defending those plans. He stated that the local contribution in the 1^st phase would be an in kind contribution of time and effort to make sure that the hearings were held, that there was the highest possible level of community participation, and that the plan that was produced was an adoptable plan that actually got adopted by the community.

                Mr. Hanson reported that the last three items were capital in nature to furnish the Legislative Center and to move the Public Defender into the basement of the Courthouse once Probation moves into the new building. He also stated that there was a sundry of smaller things which included tuckpointing at the Courthouse, new network servers, and continued work for ADA compliance.

                Mr. Hanson went over the budget schedule noting the committee meetings would start the next night. He stated that anyone who did not agree with the Administrative Recommendations should start the appeals process. He pointed out that the form was attached and that they could use photocopies as needed for each item. He stated that the form must in by middle of September but the sooner the better. He also stated that the committee may have to have a Special Committee Meeting if there was a need but hopefully it would be avoided. He said that on October 3^rd, this committee will pass along the final recommendation to the Full County Board where it will be placed on file. He added that it would then go to the Public Hearing at the November committee meeting. Chairman Steimel asked for further questions and there being none, the committee moved on to the next item on the agenda.

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                                                                                                                                        Roger Steimel, Chairman

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Lisa K. Sanderson, Secretary