Finance Caucus - February 3rd 2014

MINUTES OF THE FINANCE CAUCUS COMMITTEE MEETING
Monday, February 3, 2014 – 7:30 p.m.
Main Conference Room
Mayfield
Village Civic Center

The Finance Caucus Committee meeting was held on Monday, February 3, 2014 in the Main Conference Room at Mayfield Village Civic Center.  Mr. Marrie called the meeting to order at 7:30 p.m.

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Present: Mr. Marrie, Mr. Marquardt and Dr. Parker

Also Present: Mr. Jerome, Mr. Wynne, Mr. Metzung, Mr. Dinardo, Mr. Marrelli, Chief Carcioppolo, Lieutenant Jablonski, Ms. Wolgamuth, Mr. Esborn, and Mrs. Betsa

1: Bureau of Workers Compensation Yearly Assessment – 2014 ($121,397.57)

Mr. Wynne reported, this is calculated based upon 2013 wages.  It’s approximately $25,000 higher than last year. The reason for that is we had a couple of significant claims over the past several years that are kind of now maxed out and are starting to cycle out of the rotation.  This is catching up on the expenses that were involved with those two claims.

I have already gotten the rates for 2015.  We will be dropping back down to the $90,000 range again next year but this is just a final year that those two major claims are still involved before they cycle out of rotation. They drop off and it’s no longer part of our responsibility.

Mr. Marrie asked, how long do they keep a claim before they drop it off?

Mr. Wynne replied, generally three to four years.  Even at $121,000 we are still saving significant dollars because we are part of the Ohio Municipal League rating program.  Our rating is set by our experience as well as the rating experience of the pool.  Our experience is impacting this year’s premium.

Mr. Marrie asked, so going in a pool still helped save some money on this?

Mr. Wynne replied, yes.  It would have been another $20-25,000 higher than the $121,000 if we weren’t part of the pool.

Mr. Marrie stated, okay. Any other questions? There were none.  Mr. Marrie stated, okay, we will put this on Finance Committee agenda.

2: AD&D and Life Insurance Renewal (Metlife)

Mr. Wynne reported, this is up for renewal come April 1st.  We have gotten the renewal from MetLife. There is no increase.  Dental which is typically up at the same time is not this year. When we went with Delta Dental last year, they gave us a two year proposal, so we are obligated for a second year with them.  The increase for the second year was pennies.  It was very nominal. We are pretty much locked in with that.

Dr. Parker stated, in terms of insurance, two issues, Ron. One, Council has not had an increase in their salary in upwards of 7-10 years.  I think it would be appropriate for someone to look at it.  That’s a thought.

Secondly, at one point there was talk of healthcare being available to Council members. Maybe that should be an issue at this point.  If people want to take advantage of it, maybe they should be allowed to.  For some people, maybe it’s more of an issue than others.  I hate to bring up the issue, but I think there are a lot of people that may need it. Does anyone else have any thoughts on that?

Mr. Marquardt replied, it’s something to take a look at and see what’s appropriate. 

Mr. Metzung asked, don’t you have to vote on a raise, but it doesn’t take effect until the next election?

Mr. Marquardt replied, it’s a referendum.

Mr. Wynne replied, it has to go to the electorate.

Dr. Parker stated, which is fine.

Mr. Marquardt stated, if you get the background on it, I suppose it’s appropriate.

Mr. Wynne asked, do you want to see what other communities do?

Mr. Marrie replied, yes. Start with that.

Mr. Jerome asked, would it match the employees, like their schedule?

Mr. Wynne replied, not the Mayor’s or Council’s compensation.

Mr. Marquardt stated, that’s referendum.

Mr. Wynne added, it’s set through legislation.  You would have to put an issue on the ballot.

Mr. Marrie stated, you would have to have the folks vote on it.

Dr. Parker stated, which wasn’t a problem the last time.  It was about 7-8 years ago.

Mr. Marrie stated, it’s more than 12.  I have been here 12 years and there’s been no increase.

Mr. Marquardt stated, I think you need the history.

Mr. Marrie agreed.  Look at the history and what other communities are doing. Get the facts first before we even kick it around too far.

Mr. Jerome asked, wouldn’t it have to be turned into the Board of Elections by a certain point?

Mr. Marrie replied, yes.  It would be like any other vote.  You would have a deadline date. If you don’t make it, it’s not on the ballot.  Let’s get the facts.

Mr. Marquardt asked, are any other communities looking at healthcare as a contribution and you pick up your own healthcare on the Obamacare for employees?

Mr. Wynne replied, I don’t know.  I have definitely heard of that in the private sector.

Mr. Marquardt replied, it’s on the OPERS schedule.

Mr. Wynne asked, for what?

Mr. Marquardt replied, retirees. They are just going to make a contribution. I am sure that corporations are going to be moving in that direction too.

Mr. Wynne replied, from what I have heard, a lot of the smaller employees are looking to definitely whatever they have just drop it all together and steer their employees to the healthcare.gov website and subsidize part of the cost of it.

Dr. Parker stated, it all depends on how valuable your employees are.  It’s a complex situation. If you have employees that you want and desire and need, you are going to look at it differently.  Big corporations who are paying people to live in these cubicles, I think they can replace those people much more quickly.  Smaller companies are very reliant on a select group of individuals so they are hesitant to do that because they will go looking elsewhere. You have to look at both ends.

Mr. Marrie asked, any other questions? There were none.  Any other comments?

Mr. Wynne stated, I just wanted to mention that I will have a draft of the capital budget and operating budget in packets this weekend. It won’t be 100% complete.  I don’t know if the Finance Committee wants to have a Special Meeting to talk about the budget before it goes to Council for the first read or if you want to just have the Finance Committee meeting two weeks from tomorrow to address any questions the Committee might have on the budget.

Mr. Marrie stated, Finance should meet before it gets out on the table, but we could put it on the end of the meeting two weeks from now. What are your thoughts?

Mr. Marquardt stated, we could have it next week or the week after.

Mr. Wynne stated, you will have a draft in your packets this weekend. If you wanted to have a Special Meeting next week.

Mr. Marquardt stated, let’s make a decision at the next meeting as to whether to hold a Special Meeting or not.

Dr. Parker stated, at times what we have done in the past is we have had a meeting with the entire Council for people who had comments. Everyone was involved.

Mr. Marrie stated, it still will be. It will still go to Council. The Finance Committee would look at it first after they get their packets and read it so if there are any questions, they have something to ask or to comment on.  Let’s go that route. Do you agree?

Mr. Marquardt replied, yes.  If we decide to have a Special Meeting we could do it at the next Finance Caucus.

Mr. Wynne stated, the intention would be to have the First Reading in two weeks and have a Special Meeting at the March Caucus for the Second Reading. The Final Reading would be at the March Council meeting.

Dr. Parker stated, I thought we normally set aside time at Caucus to do that.

Mr. Marrie stated, we could just bring it on the floor at the next Caucus. It would be brought on the floor for all of Council.

Mr. Marrie asked, any other questions or comments?  There were none.

ANY OTHER MATTERS

Mr. Marrie asked if there were any other questions or comments.  There were none.

There being no further business, the meeting adjourned at 7:40 p.m.  The next Finance Committee meeting is scheduled for Tuesday, February 18, 2014 at 7:30 p.m. in the Main Conference Room. 

Respectfully submitted,

Mary E. Betsa,
Clerk of Council