Finance Committee - Regular Meeting

Tuesday, October 21, 2025
Transcript
Video
Agenda

About this meeting

Government Body
Finance Committee
Meeting Type
Finance Committee
Location
Joliet, IL
Meeting Date
October 21, 2025

Transcript

239 sections (from 272 segments)

0:01 – 0:310

Okay. Welcome everyone to the finance committee meeting for Tuesday, October 21 here in the chamber at city council. On the committee is councilman Hug, myself, Pat Mudran, and councilwoman Sherry Reardon cannot be here tonight. Moving ahead, Looking for an approval of the minutes. Can I get that motion?

0:321

I will make a motion to approve the minutes from the September 2025 meeting.

0:37 – 0:590

I'll second that motion. All in favor, aye. Aye. Any opposed, same size. Thank you. Citizens to be heard on agenda, obviously the weather is keeping everybody away tonight, so we'll move right into resolution, authorization to appoint proposal of the Illinois municipal retirement fund.

0:59 – 1:212

Yep. So this is, you know, as you know, director of HR is retiring. Her last date is October 31. So IMRF requires that there is one person who is responsible and designated as an authorized agent for IMRF matters. So this resolution is proposing to appoint assistant corporation counsel Gina Logalbo as that agent until a new HR director is onboarded.

1:240

Questions? Thoughts? Okay. Mister Singh?

1:29 – 1:442

So the next two, I'll talk about together. They're well, they're they're different SSAs. It's the same concept. So it's the levy for two different SSAs. One, the first one is the Joliet City Center SSA, which funds city center partnership.

1:44 – 2:192

The second one is the what is deferred to as the Park Hill SSA, which funds the maintenance of the detention pond in the Park Hill subdivision. That there is no HOA in Park Hill, so the SSA is needed to maintain that pond. So the amounts are the same as last year. Park Hill, we we collect the the full amount 8,000 that gets spread over those property owners. The city center SSA, while we levy 600 and some odd thousand, we only get 95¢ per 100 of EAV, which comes in in the 500 range.

2:19 – 2:502

But we do have a number of new properties that are hitting the tax rolls in that SSA, which is why we've kept it at six thirty. In the interest of time, I'll move on. Next item is approval of retiree medical, dental, and vision benefits. So as we kind of mentioned last night, this sets the level of benefits, excuse me, for our retirees. We handled actives last month and so the benefit offerings for retirees will remain the same as it did for '25 with one change.

2:51 – 3:152

That retirees who selected the 500 PPO plan would be able to purchase at 100% of their cost vision insurance. So as you remember, we moved to a fully insured vision plan for the active employees, So there is no liability or exposure to the city to offer the retirees to buy into that at their cost. So we're making that available to them if they pick the 500 plan.

3:160

Kevin, this has gone out to the retirees or it's going to be going out?

3:21 – 3:472

No. Have not scheduled or sent any open enrollment materials to retirees. We have open enrollment scheduled for actives, virtual tomorrow and then some in person. But given the confusion last year with all the changes we made, staff made a conscious effort to split the two apart so there was no confusion. So if approved at council tonight, we'll work on materials and send some information out to retirees for an open enrollment for them.

3:490

Okay. Any questions? 25 property tax levy discussion.

3:57 – 4:202

Yeah. So the property tax levy discussion. So just some background, statutory requirements. So the reason I have this on the agenda tonight is city council has to discuss the property tax levy twenty days before they adopt it. So because I've scheduled that for the Fees first meeting in November out of respect to finance committee, we should at least discuss it here before it goes to the full council.

4:20 – 5:022

So not really looking for a formal action on this. Just wanted to make sure we have discussion on it before it moves to the full council. So the timeline would be full council, first meeting in November, adoption first first available adoption, first meeting in December, has to be adopted by the or filed with the county by the December. So, hopefully, we don't wait till that long, but gave us two meetings to be able to take action on an ordinance for the tax levy. So, you know, as as the packet indicates, so this levy is basically or is designed to keep the property tax rate the same.

5:02 – 5:412

Now I'd say estimated to keep the property tax rate the same because we don't know what the rate will be until the final values come in. So to get to this level, I look at occupancies on permits that have hit the tax rolls over the last twelve months, projected those in new construction or new value. So that is things like new homes, new businesses, new industrial. So when I project that out and apply our current tax rate to what would then be the total value, I came up with about $2,500,000 in extra funds. So but remember, that extra money is solely from new businesses and homes.

5:42 – 6:072

The tax rate would estimate to be the same. So after we projected that out, that brought us enough funds to cover our increase in pension cost plus about a couple 100,000 for the general fund. And so actually pleased that we're able to move a levy forward that won't increase the tax rate. Also wanted to point out, same concept was last year. The rate actually went down by 6 and a half cents last year even though the levy amount increased.

6:07 – 6:312

And so thought it was a positive thing that, you know, once again, even though we're collecting extra money, the rate's not going up. So if people's values didn't change, they would they would pay the same amount they paid last year. I did check I had a question earlier about what our multiplier was at the county level for '24 as we I think it's been reported that 25 is a multiplier of one. So it was twenty four and one as well.

6:35 – 6:531

Now what happens you're talking about if the keeping the tax rate the same by expanding the lobby to try to capture what you're referring to as new value. Mhmm. What happens even with the new value, any additional buildings or property owners being taxed when you don't raise the tax rate? Well, the the tax or you don't raise

6:532

the lobby. The tax rate goes

6:541

down slightly.

6:552

Correct. Okay. Correct.

7:00 – 7:191

And real quick, out of respect for miss Divanadero. She's there because she's interested in learning more about it. Right? Mhmm. Can you explain briefly the process of, you know, from appraisal to tax? What you

7:202

mean appraisal? Assess? Appraisal properties.

7:221

Any all the properties. Mhmm. You know? And and, you know, what EAV is. What

7:272

Yeah. So property EAV

7:291

is one third of

7:30 – 7:412

Market value. Right? So the assessor determines what the value of your property is. He he factors in the market, and the assessed value is one third of of, basically, market value, if you will.

7:411

And that's owned by the township.

7:42 – 8:052

Township. Yeah. So every township has their own assessor. They submit those values to be reviewed by the supervisor of assessments that actually occurs around October at the county level. And so property is aside or taxes are the tax rate is applied to every $100 of assessed value It's how the tax rate gets applied. So So

8:051

if your house is worth $300,000, you are taxed on a $100,000.

8:082

Your assessment's a 100,000,

8:101

one third. Okay. And

8:132

You pay tax for every $100 of that one third.

8:161

You know, when you're when you're a levy to capture value, are you basing on EAV or on market?

8:22 – 8:522

I do it based on construction value. So I say that because there's a little bit of a because construction value was a self reported value from the builder or the property owner. So when you build a house, our permits ask you to state what your construction value is. So I'm factoring in on that number, which generally trends slightly lower than the actual market value what that property is sold at. So example, if you're a home builder, you know, you're putting in what your what your cost is to build it, not necessarily what you're selling it for.

8:531

But when you give an estimate, I give that 2 and a half million dollars in additional revenue. Mhmm. That's based on one third of the

9:012

Construction value. Construction value.

9:02 – 9:251

Yep. Yep. And when you do a you have you have x amount of, if you will, pin holders or property holders. Right? Mhmm. And when you do a levy, whether it's $10,000,000 $100,000,000 whatever, you're taking the number, explain how that is spread out across all taxpayers, which leads to hopefully a one point zero ultimately determining some kind

9:25 – 9:572

of Yeah. The multiplier goes so the the whole multiplier concept is at the state level, do they feel the assessors county wide are doing a good job? Are they undervaluing or overvaluing? So a, they feel the state is ruled that they feel that the county wide assessors are assessing property based on the true market of of what's occurring in that county. So when you then so what happens is all of our and if I understand the question, so all of now the the taxing districts roughly I'll say there's roughly 10 of them.

9:58 – 10:362

All are doing the same thing we're doing now. They're saying how much money do I need? So we're all gonna say how much money we need. We will file those with the county clerk. Once the county clerk with the assessor's offices generates all of the values, they then take our dollar amounts and apply them to the properties throughout the city. It actually goes by taxing district. So, you know, because certain parts of Joliet, not everyone in Joliet pays the same taxes to every district. You've got different school districts. You've got other other districts that apply. So they then take the values based on those districts and then come up with the tax rate.

10:37 – 11:042

So while the city tax rate will be the same and the school tax rate is the same, an individual, Jolie, to confuse things on property taxes, the total tax rate of all districts varies throughout the city based on the districts that a property pays for. So as an example, we have properties in Will and Kendall Counties. So, obviously, there's different tax rates for a property that's in Kendall County because it has different districts that it's paying towards.

11:061

Right. And we have those that pay Joliet Park District and those that pay Plainfield Park

11:112

District.

11:110

Correct.

11:111

Or Joliet Library, Plainfield

11:132

Library Correct. Schools.

11:141

Correct. How's that, Rosemary? Sir. Nice.

11:182

I I think they could have made property taxes just a little more confusing just to help everybody. Really? They could have done a little better job to make it more confusing. Exactly.

11:261

So when we choose an amount of levy, where are we basing that?

11:30 – 12:132

So I base it on the rate we had last year. So I always do that every year. I look at it and say, well, if we were to you know, because keep in mind, we have new properties we have to provide service. We have to provide police, fire, public works. So my logic is, alright. Same tax rate. Let's apply it to that new property. Then the equation is, does that get us enough funds to at least cover our pension obligations so that we're not having to cut elsewhere just to fund those that we can at least look at it as contributing to the to the funding for essential services. And so with this levy, that it does that. We so I'm not asking for any extra money or any that people should pay more.

12:142

My request is that people should pay the same. It's just these new properties should pay the same as people did that the people did last year.

12:211

Well, wait. Because are are you also capturing any increased value in the existing properties?

12:272

I've not factored that in. I've only factored based on permits.

12:311

You understand what saying?

12:322

You just keep You you that fact that the assessor thinks your your your house went up 3%.

12:361

Right. So if if, you know, if you keep the tax rate the same, what was the tax rate last

12:42 – 13:162

I know you're gonna ask me that. It was when you include all of the the city has two different levies. You have a fire protection and the city, and then we have the library. So I bumped lumped all those together. It was a dollar 1 a dollar and 20 1.234¢. So $1 and 23 and a half or 23.4¢. And so that's what I'm estimating it is. The year before was at almost a buck 30. So and that's that's why you'll see our rate go down is because I'm not factoring in those reassessments.

13:171

But the tax rate will be applied to when the county applies it to what the current

13:212

value is. Yes.

13:221

So that's why they even if you keep the tax rate the same, they may see a noticeable increase in their in their property tax because of the

13:312

If their value went up. Yeah.

13:321

The value went up. You know?

13:33 – 14:062

Yeah. And the rate and if in fact the value goes up and the rate doesn't decrease like it did last year. Right? Because remember, our concept last year was the same. We wanted to apply our rate to new properties and the rate went down. So once again, if the rate doesn't go down, you're you're correct. But the fact that I've not factored the impact of those reassessments in, there's a chance the rate could go down. I just don't wanna sit here in front of you saying, I think where our rate's gonna go down and it stays the same. So I'm I'm expecting it to stay the same or go down.

14:061

And we know but we know for sure that if we were to keep the money the same

14:102

The rate will go down.

14:111

That's guaranteed.

14:122

Correct. But then we'll have to find additional 2 and a half million

14:151

dollars sixty days, two months left. We still stand about 10 and a half million dollars ahead on projected revenues. We'll see how much of that still exists after Yeah.

14:242

We'll talk about that in my report, but honestly, it's not gonna stay the same thing.

14:271

Yeah. Right. But it does turn that way. And you and I talked about it. Mhmm. This isn't brand new for Kevin and I. We we had

14:332

a long

14:33 – 14:481

conversation a few days ago, couple days ago. And it you know, as a conservative accountant, you're saying, well, I I don't know for sure that it's gonna do the same thing year. Yes. And and I'm saying, Pat, just so you know what I mean. Because, you know, I'm sure you talked to Pat about it too.

14:482

Right? The lobby. Yeah.

14:49 – 15:271

Yeah. And I'm what I'm saying is right. And he's like, you know, what if they don't what if what if it goes backwards? What if it returns to last year's levels and and doesn't Mhmm. Even stay the same as this year's level or continue to trend up. Because if factor in the increase of this year that seems likely and then factor in a similar increase for next year, there is no we have no need to to get additional levy off on the property tax taxes because the other revenues will cover everything. You're saying if it doesn't happen, we'll really do. That's when you reach in as an emergency. If you come up at 2 and a half million short because everything goes backwards and goes, you know, down the crapper. We have about what? Is it 80 or what? 90,000,000?

15:272

Yeah. We've got roughly four to five months I think about five months of reserves.

15:301

What's the number on that?

15:322

Probably about a 100,000,000.

15:33 – 15:531

100,000,000. Yeah. So we would then have no problem drawing off that 2 and a half million and then addressing very publicly, and that would make the communications department's job easy saying, hey, were with it last year. The economy is going backwards. Now we have to increase to make up the difference. So that's what my saying was. Yeah.

15:53 – 16:042

And then as, you know, folks I mean, my concern was, yes. Yeah. That is an option, but if we also experience economic downturn, it's just compounded. Now those are the reasons we have reserves.

16:041

So But up here

16:052

It's your guys' decision. Right. Kevin, what I'm

16:071

thinking is if we serve is not gonna have a downturn. That'd so are the households.

16:102

Yeah. Yeah.

16:111

So they're gonna have a hard time paying the current tax level of of property tax.

16:181

And that's what happened last time when you had so many people going to foreclosure. They couldn't afford a house anymore. So this is my position.

16:242

Yeah. No. I I understand.

16:26 – 16:391

Alright. That's all I have. Okay. Did this help at all, Rosemary? Yeah. Mean, did you know about all the Yes. Oh, okay. Well, then we didn't need to do that. Okay. It's fine. But it's also good for the public.

16:392

It's fine. Yeah. And all the funds. So another good good news point, this is not on council tonight. I'm looking to bring this in November.

16:48 – 17:282

There's no rush on it, but I I think it is a positive thing. So so approval of a contract with MMARX Solutions for prescription drug rebate management. Basically that's a fancy way of saying it's our drug audit, a drug rebate audit. So we're self funded insurer, as such we get we're eligible for rebates based on the prescriptions that our plan covers and so those rebates are administered through Blue Cross. So this is engaging MMARX solutions which is actually a branch of our broker, full disclosure, That's 57 a little over $57,000 a year that they would manage and audit our drug card rebates.

17:28 – 18:082

So their experience with similar sized clients throughout the the country or The US, I'm sorry, is that we're probably missing out on about a half million to $800,000 worth of rebates. Now the good thing part of this is, let's say they're wrong. It was a sales pitch. They don't find anything. We don't pay them. So this is truly risk risk free to us that if they don't at least save their fee, they don't get paid. So but they're confident that they will find, you know, three digit, you know, 300,000, you know, six digit savings. I'm sorry. It got me got me all excited about saving money. Couldn't talk.

18:08 – 18:472

Could see that. Yeah. So but in context, we get about $4,000,000 in rebates. They think we should be closer to five. And so this is a good thing. And if that's the case, this would carry forward annually and basically layered on top of that other half million dollars we're saving just on plan design. So if this holds true and the savings we saw in '25 moves forward, it's a million 3 in savings that just from plan design and this towards our health care cost. So I think it's a good good for the city to do that because that doesn't that doesn't impact anybody per se. That's just better administration.

18:481

Well, they find $58,000 of savings to wash.

18:512

It's a wash.

18:521

And they find $20,000 of savings without paying that.

18:552

Correct. But there's really no

18:581

If they do find a million, a million, 1,400,000.0

19:002

They get 57,000.

19:011

Which is fine. And my question with Blue Cross Blue Shield is, you guys are the experts, how did you miss this?

19:07 – 19:242

So they so the renewal the way the renewal goes is they project our rebates based on per member per month, and I don't know that it fluctuates beyond that. And so that's we have the ability of auditing it, hence the service, but, you know, they'll probably say, oops.

19:251

Yeah. They're not very much people.

19:272

No. We don't have the and we don't have the expertise in house to know No. To know this.

19:321

You would think

19:322

you can

19:331

count on Blue Cross Blue Shield to get it right.

19:352

Well, it's a million towards us or a million towards them.

19:380

Right. That that was my question, Larry. I don't know if they're actually auditing the drug companies that are

19:452

paying this rebate or they're auditing Oh, it's good point. Gets the rebates.

19:520

I mean, it's it's obviously a combination, but I don't know where do you think the money is gonna come from.

19:561

Yeah. You're right. That's a good point. Mhmm. If there's more money, even if the pharmaceutical company says, well, Joliet, they're paying attention. They're not gonna offer

20:052

it to you.

20:051

Blue Cross has to ask for

20:071

They have to say, Hey, here's

20:092

the amount money.

20:101

So I think it's still falling

20:112

Yeah. On Blue

20:13 – 20:270

I mean, on this particular drug, it's a rebatable drug that so these are all gonna be, obviously, name brand drugs that are expensive. The sad thing is we have a lot of name brand

20:272

drugs that are expensive

20:280

that are being used or need,

20:302

I should say.

20:330

Alright?

20:472

The action items, or do

20:481

you want

20:482

me to move on?

20:500

No. I think we should move we should looking for a motion, Larry, on the action items that we have.

21:001

Yeah. I just wanna have I wanna clear in case you know. I'm I'm just about SSAs. Right? These levies are specifically for the SSA.

21:081

They're separate

21:092

Geographic boundary only.

21:101

Right. They're separate property tax.

21:110

Correct.

21:121

They're just and this is something that a majority of the people wanted to institute an SSA in that area.

21:181

Some years back.

21:201

Alright. I'll give I'll give you a motion.

21:222

So it's every just to clarify, it's everything except ninety one thirty eight. There's no action on that one. Right.

21:29 – 21:451

So I would make a motion to send under agenda items, item ninety ninety five, ninety one twenty three, ninety one twenty five, ninety one twenty seven, and ninety one thirty nine to the full council of this committee's recommendation to approve after review.

21:450

Second it. All in favor? Aye. All opposed, same sign. Thank you. Reports.

21:53 – 22:282

So you got a monthly. Larry was given part of my monthly report. So year to date, the general fund is reporting a surplus of 10,000,000. So but keep in mind, September is when we received the second installment of property taxes. So a lot of that is attributed to that second installment. And as the year progresses, I do expect that to decrease from now until the end of the year. However, we, you know, we still are seeing some increases above budget. Those are gaming sales income, but then we are seeing some items trend below budget. And these aren't new. These I've talked about these the last few months.

22:28 – 23:112

Utility replacement tax, hotel, motel, and then cannabis taxes are all trending below budget. But overall, I do expect us to be at or slightly above budget when we look at revenues over expenses. Barring any big unforeseen, I don't show I just I don't have a gauge of what that's going to be. The state in shifting the SALTs deduction workaround phase out, more people moving to sales tax away from used is really playing havoc with some of our trends. That's why you're seeing things like sales and income be up, but replacement come down. And actually, personally, don't have that on here, but personal property replacement, which is where that SALTs deduction was coming in down as well. So or use tax. I'm sorry.

23:110

So, Kibman, wasn't the conversation that we were gonna start to factor in the health insurance unfunded liability?

23:20 – 23:462

We haven't done that yet. Right. But, yes, we need to. Yeah. But I've not I've not applied a telling me that's over is nowhere near over. No. No. So Okay. But so anyway, that's general fund. Sewer and water, you know, it's got its ups and downs, but overall, it it's basically trending according to how we would expect that fund to trend, so there's really no surprises there.

23:47 – 24:202

And then parking, I've got in my notes that it's better than budget, but obviously, paid paid parking on street goes away. And so it has gone away, but, you know, we're still kinda seeing how that's gonna shake out because the deck is moving to be automated, I think, in the next month. And then, obviously, you've got violations associated with people violating that two hour that's gonna come into play as well. So at some point, you may see this fund kind of get folded into general or another fund, but that's a discussion for the future.

24:21 – 24:531

And just to clarify on the concept of the unfunded health insurance liabilities, right, they're unfunded until they're funded. So we actually do address the unfunded on a year to year basis because we put it in the budget of what we expect to pay that year, And the unfunded liabilities is about $700,000,000 now. And you and I discussed this. Depending on the actuarial particulars you use, it could be twenty to forty years. Mhmm. Divided amongst twenty to forty. We don't and and you said at the time, you couldn't get you couldn't tell it was twenty, thirty, or forty. It's twenty to forty years. Am I correct?

24:532

You are. Now I think what you know, so we we've we've been meeting with the unions or we've had a couple of meetings with the unions to talk about insurance.

25:03 – 25:362

I think it was even my even for myself. So I actually did what I call the lay person's calculation of the unfunded liability. And I took current cost of insurance and actually projected out based on if you're gonna work twenty years and then go out, what age you're gonna be until you hit Medicare age, and then once you hit Medicare age until we we picked a a you you know, how many what year you were gonna die. And so we actually took those, didn't have any increase in premiums, and said, alright. So the cost of your benefits from when you walk out the door till when you die is x.

25:36 – 26:092

And then we assigned a 10% premium increase during your retirement lifetime, and quite frankly, numbers were right around the unfunded liability side. And so it was kind of a shock, and it put a real sense to you're right. If we do nothing and all these people go out the door, that's how much money will be spent over the next so many years. But the shocking part was if you divide that annually at once they're out the door, that number is quite frankly large. It's scary.

26:09 – 27:062

And so that's where I think it kind of I think everyone's eyes opened up to say, maybe it's not a fuzzy math or such a long term number when our rates are going up, you know, so much a year, our cost is going up so much a year that, yes, we'll pay as we go, but it's gonna be so large it's gonna impact other stuff. And so I'll be honest, some of the comments we saw was really because we're offering family at retirement, it could impact single retirees. I mean that's how granular the discussion got because of how big those numbers were. And so I think the outcome was a, we should do we should do something and b, it's really not a fuzzy number. It's something we should pay attention to and should consider putting money in the bank to help smooth that ramp as opposed to going like this to keep it more like this.

27:06 – 27:232

So I think that's where that's what you're I think councilman Mudran was mentioning is we should start putting you know, there was a discussion to start putting something aside so that when that number goes up, we're not having to fund $1,020,000,000 dollar jumps a year. It's small.

27:240

So As you know, we have more younger people retiring.

27:27 – 27:500

And that we know our number from Blue Cross this year, we're at a double digit increase. Low double digit. Mhmm. Still double digit. That's not what's going on on the outside. The community is a lot closer to 20% increase. The individuals still haven't come out on what that's gonna be, but it's gonna be around 20% from it appears from where it was last year.

27:501

And You probably probably to Probably have to have. Okay.

27:540

And so it's I mean, it's gotta be considered.

27:57 – 28:232

Yeah. I mean, I know the library had 20% increase in theirs. So just local district I was talking Yeah. So so you're right. It is it is a pay as you go, you know, it's kind of a future problem, but I think what what what opened everyone's eyes was if we wait till the future to solve it, it's gonna be a bigger problem than if we start something small now is really what it amounts to. So

28:250

Did you take ask for volunteers to die early?

28:292

Nobody took it.

28:300

Oh, okay.

28:31 – 28:512

Nobody took it. Well, I got volunteered, but Alright. Invoice exceptions, you've got those. So those are just basically things that are in between meetings so they're not late in utilities and reimbursements. Rialto's quarterly is there.

28:51 – 29:242

So if you remember, they were planned to be closed for HVAC for June through September because of the asbestos that got pushed back. But because they were planned to be closed, they didn't have shows that were booked. So that's why their numbers are down, but they anticipate it's in the it's in the report, but they anticipate starting in October, obviously, they're back to their normal schedule and will have shows. They still did have some minimal attendance and some minimal fill ins with things like weddings and the movie, but but nothing really to write home about for the Rialto.

29:241

And how are we doing with monitoring our contribution? Our subs to them?

29:292

Or So yeah. So they

29:301

for capital only.

29:31 – 29:472

Yeah. I believe they've already spent it for capital. So well, let's back up. The the HVAC was what ours was going towards. So so I'll have to verify with him. I thought he had some of it already expanded, but I'll have to double check on HVAC.

29:471

You're still restricting them to

29:482

using Capital. No operations. Yes.

29:521

Alright. Yeah.

29:55 – 30:082

I think that's it for me. Oh, travel expenses. It's a little larger than normal, but a lot of public safety. I'll turn it over to

30:080

Gina, can handle

30:11 – 30:473

I'll evening, councilman. As detailed on pages fifty two and fifty three of the agenda packet, there are nine open positions that are covered under the ASPE Local four forty CBA. Actually, since this agenda packet was published, we've filled two additional positions. So there's actually seven open under Local four forty. And moving on to other positions across all other unions and positions not covered by a CBA, there are five open positions.

30:49 – 31:073

As far as positions filled to date, there are 40 listed on the agenda packet. And because we've filled two additional technically, we have 42 positions that have been filled to date. And that's not including police officers and firefighters and union covered positions.

31:091

The economic development specialist is somebody leave? There's four. Right?

31:153

There's currently two.

31:162

There's two specialists, one director.

31:191

I don't know when she came in to introduce them. She introduced two young ladies.

31:232

Probably the

31:241

at at college course.

31:252

Maybe intern. Summer intern.

31:271

Is that what it was?

31:282

Yeah. Okay. Yeah.

31:293

So there's there's two employees in the economic development department.

31:331

So one of the two left?

31:343

Correct. Okay.

31:443

Any questions?

31:440

None. Okay. Nothing.

31:46 – 32:293

And then moving on to page 54. I I did want to mention that we recently underwent a comprehensive claims review of all of the city's workers' comp claims with our third party administrator, Gallagher Bassett, and our broker. And after reviewing all of those claims, technically we have 65 open workers' compensation claims. Those claims are at various stages in the workers' compensation process. So I'd like to amend the number listed on page 54 if you want to be total right. For transparency purposes and just to encompass all of them at all stages in the claims process.

32:29 – 33:012

So in that number, obviously, it's people that were close to resolution waiting on final settlement with the commission, people that are not responding that, you know, it's just a claim been filed, you know, more of a report only. I don't want you to walk away thinking we have sixty five injured employees that we're processing claims for. Many of them are back to work, and so but that is the total number of claims we did review through that claims review. Was an a full day's worth of review. I know Jean and I were part of it.

33:02 – 33:172

Do have we will have some follow-up on on some of the discussions internally on those claims, but it was a nice process. I know it taught me a lot on things that go into a work comp claim and how the process of a claim moves through from beginning to end.

33:180

Is there a schedule that this is going to be done on a Quarterly. Quarterly basis? In quarterly? That's correct.

33:262

Quarterly. So

33:271

does that mean there's 65 that have not been finalized and paid out yet?

33:312

Correct. No work Yeah. They can be back to work. We could have one employee that has two incidences, and that's in that 65. Because it's two claims.

33:411

Mhmm. It's

33:422

it's in there, obviously, twice. So that's why I said I don't want you to think there's 65 employees that have open claims.

33:483

And if there's interest for a more detailed report in the future to to break down those different phases, we could discuss that.

33:551

You can

33:563

let us know.

33:561

I'm curious. What does eight current open claims mean, you know, as it pertains to the 65 claims?

34:012

They've reported it, and it hasn't been settled.

34:041

So the other 65 have it settled?

34:062

No. That this that's the 65 number is that there's been 65 reported accidents and not 65 settlements. Same people.

34:183

Well, and to be even more transparent, there's actually more reported accidents. It doesn't mean that they filed a workers' comp claim on all I of

34:27 – 34:402

think the takeaway is we're digging in more and doing more evaluation. And as we do that, we'll make sure we amend and correct the information coming to you guys. But we are on top of it and working towards a positive resolution.

34:40 – 35:160

So part of the explanation from the new broker was that this really needed to be done. It was something that we, the city, was not doing, and they felt that they could help us, you know, get a better handle and move them out quicker. And, you know, some of it maybe maybe was our fault that they needed an MRI, and we didn't approve it as quickly as we should have approved it so the person could get back things of that nature. So it wasn't wasn't all negative. Some of it was positive to see how it can go, and I'm glad to hear that the first quarterly meeting went well. Mhmm.

35:163

Thank you. Alright. That's it for me.

35:22 – 36:052

They also did we also did the property and casualty while we still have time. Give kudos to the HR department, you know, it falls under HR. Did a review of the property and liability claims as well just to make sure that we understood where they were at and what was going on to see if we needed to make any improvements in our internal processes. And while there wasn't anything major, I don't think that came out of it, we did walk away with some thoughts, some kind of looking at some best practices to make sure that we're keeping our exposure down as much as possible. So this, you know, damage to vehicles, trips and falls on a property, just general various things that that occur in in, you know, as you guys both know running a business.

36:052

So we got some some good takeaways to, you know, you can always strive to do better, I think we we did get some of those that we can look to see if we can do even better.

36:151

Are you gonna bring in that report forward to the committee at some point?

36:191

Property casual.

36:202

We we can look at incorporating some of that into here. Yeah.

36:231

I mean, I don't know why you've got it. I like them all. No. I'm not sure if somebody put the balls we have, you

36:272

know Mhmm.

36:271

Going at

36:282

a time.

36:291

And, you know, maybe a more detailed report about work comp so I can get my head around 65.

36:34 – 37:052

Yep. So one of the things, you know, Jean and I have talked about, you know, obviously, we're we're hoping, you know, look looks like we'll be transitioning to an HR director, you know, hopefully by the end of the year. And so looking at improvements to that report. And so, you know, quite frankly, wanna get somebody in the door, get tap into their expertise. I'm a finance guy. Right? Gina's an attorney. We're kind of helping as best we can, but, you know, getting someone with a little more expertise in the individual areas to bring something some other best practices to the table and reporting ideas.

37:061

Do we have applicants already?

37:082

I yes. There are just applicants. I I would refer you to the city manager for an update. And maybe at the

37:131

next meeting, we can update on that. Yeah. Maybe by next meeting, we'll hire somebody. Have they started the interview? And without detail. They they started the interview. Okay.

37:222

I believe so. Okay.

37:231

It's going along.

37:242

Yes. Yes. Okay.

37:280

Looking for a motion there.

37:301

Do you wanna call for public comment first? Just so you're on record.

37:360

A motion to move the items to the I council. Think I'm not. I'll take the second of

37:421

this one.

37:420

This yet. No. We got the adjournment. We got a lot of public here today. Yeah. I got a good feeling.

37:471

I would I would make a motion on the reports, all three reports, 1991, 1992, and 1993, move forward to the full council committee recommendation to accept and approve.

37:57 – 38:200

I'll second that. All in favor? Aye. Any opposed? Same sign. New business, not for final action? Nothing. Nothing here. Public comment. Anybody out there who wants to be public to comment? Father, you could be No comments. No. Okay. We did get a public comment. No comment. Make a motion, clearly.

38:201

I'll make a motion to return.

38:210

I'll second that. All in favor?

38:232

Aye. Also, thank you.

This transcript was automatically generated from the official public meeting video and is presented unedited. It reflects remarks made on the public record by elected officials, staff, and public commenters. Transcript accuracy may vary; view the original recording for reference.