HomeMy WebLinkAbout09-26-2011 Regular Meeting,,
STATE OF ALABAMA
COUNTY OF BALDWIN
)(
)(
The Financial Advisory Committee met at 4:45 p .m .,
City Hall, Delchamps Room, 161 orth Section Street ,
Fairhope, Alabama 36532, on Monday, 26 September 2011.
Present were:
Chuck Zunk, Chairman
Members : Stan Grubin , Mac McCawley, Marv in Wilder, John Brow n , Bob Ri gg s, and
Mayor Kant. Ex-Officio Members : Debbie Quinn , Dan Stankoski , Lonnie Mixon , and
Rick Kingrea.
Mike Ford was absent.
Chuck Zunk called the meeting to order at 4:45 p.m. He announced that the first item
is to approve the minutes from the July 25 , 2011 Financial Advisory Committee meeting
and the minutes from August 15, 2011 Special Meeting . Marvin Wilder moved to
approve the minutes from the July 25 , 2011 Fairhope Financial Adv is ory Committee
meeting. Seconded by Stan Grubin , motion pas sed unanimously by v oice v ote .
Stan Grubin moved to approve the minute s from the August 15 , 2011 Special
Financial Advisory Meeting. Seconded by Marvin Wilder, motion pas sed unanimou s ly
by voice vote.
The next item on the agenda was the Report and Recommendation for Self-Insurance
Option for Employees Healthcare. City Treasurer Nancy Wilson discussed the recap of
considerations. Mr. Zunk commented Blue Cro ss Blue Shield would be a comfort level
and transparent for employees. Ms . Wilson recommended being partially self-insured
through BCBS with a stop loss policy with $50 ,000 deductible per person. Mayor Kanf
stated BCBS will audit the claim ; however, if we w ent with Occidental we would ha ve to
audit claims . After further discussion , Stan Grubin moved to recommend Nancy
Wilson's recommendation for Self-Insured In surance through Blue Cros s Blue Shield
with a stop loss policy; $50,000 for each person. Seconded by Lonnie Mixon , motion
passed unanimously by voice vote.
The Report and Recommendation for the Utilities Revenue Refunding Warrants , and
additional borrowing for water main , water tower , and improvements at s ewer plant was
the next agenda item. City Treasurer ancy Wilson gave a r e port and her
recommendation based on the respon ses that were received . Ms. Wil son 's
recommendation is to go with BBV A Compass for a 20 y ear fixed rate at 3.15 %. She
said there were legal issues and questions regarding the surety bond which is the rea son
for not recommending until tonight. Other entities could not commit for 20 years . The
proposal is for $16 ,140 ,000 which includes $8.6 million for water & s ew er.
Financial Advisory Committee
Monday, 26 September 2011
Page-2-
After further discussion, John Brown moved to recommend Ms. Wilson's
recommendation for Self-Insured through Blue Cross Blue Shield with a stop loss policy;
$50 ,000 for each person. Seconded by Lonnie Mixon , motion passed unanimously by
voice vote.
Stan Grubin discussed the next item on the agenda , the Report and Recommendation
for the Fiscal 2012 Budget. Mr. Grubin discussed the high points of the budget. Stan
Grubin moved to recommend to the City Council to approve the budget as presented
along with the Gas Tax documents. Seconded by Bob Riggs , motion passed unanimously
by voice vote.
There being no further business to come before the Financial Advisory Committee,
the meeting was duly adjourned at 5:45 p.m.
City of Fairhope Financial A dvisory Committee
Agenda -Monday, September 26, 2011
4:45 p.m. in the Delchamps Room
City Hall -161 N. Section St., Fairhope, AL
1. Approva l of Minutes for July 25 , 2011 Re g ular Meeting, and Minutes of August
15 , 2011 Special Meeting
2. Report and Recommendation -Se lf-Insurance option for emp loyee healthcare
3. Report and Recommendation -Utilities Reve nue Refunding Warrants, and
additiona l borrowing for water main , water tower, and improvements at sewer
plant
4 . Report and Recommendation -Fiscal 2012 Budget
Schedule Of Future Meetings
(Note: Regular meetings are on the 4 th Monday of each month at 4:45 p.m. in the
Delchamps Room at City Hall, 161 N. Section St., Fairhope, AL.)
• Next regular meeting: Monday, October 24, 2011
~F-INSURANCE CONSIDERATIONS
50 single coverage
228 famil~ coverage
278 total
$50,000/person deductible
BCBSFully Insured BCBS Occidental
a. Stop Lo ss Monthly Premiu m $0.00 $32 ,500 $37 ,806
(Lloyds of London) (Optum)
b Monthly Aggregate Premium Rate $0 .00 $1,365 $1 ,587
(ra te x 278) ($4 .91/person) ($5 .71/person)
C Total Annual Premium $2 ,714 ,250 $406 ,380 $472 ,716
(a+b)x12
d Minimum Annual Attachment $0 .00 $2 ,532 ,612 $2,436 ,079
e Administrative Fee $0 .00 6 .6% 10 .0%
f Average Claims (2007-2010) $2 ,373 ,708 $2 ,373 ,708 $2 ,373 ,708
g Settle-up Exposure additional 20% of claims pa id 0 0
h Est. Claims Exposure
(avg. of Claims under $50k
2007-2010) n/a $1 ,985 ,680 $1 ,985 ,680
Total Cash Out (c+h) $2 ,714 ,250 $2 ,392,060 $2 ,458,396
Note : Claims subject to Stop-Loss pol icy are pa id directly by BCBS for subsequent re imbursement to BCBS by Ins. Co.;
Claims subject to Stop-Loss policy under Occidental must be paid by City and later reimbursed by Ins. Co.
9/20 /20 11
2
3
4
5
6
7
8
9
11
12
13
• -
CITY OF FAIRHOPE
URW 2002 REFUNDING WITH NEW PROCEEDS OF $8.GM
PROPOSALS RECEIVED 9/2/2011
Financial ADDITIONAL
Institution RATE TERMS
• BancorpSouth Not participatinq
BB&T No response
BBVACompass Bank 3 .15%
Bank Trust Not participating
Citizens Bank no response
First Nat'I Bank of Bldwn Co. no response
Not participating due
Hancock Bank to curr. Loan exposure
Iberia Bank no response
RBC Centura no response
Regions Bank no response
United Bank no response
Vision Bank no response
Wells Fargo no response
TOTAL INTEREST
ON LOAN TERM
$5 ,347 ,519 .34
City of Fairhope Budgets 2011 & 2012
Revenues and Transfers 2011 2012 Expenditures 2011 2012
Taxes $5 ,714 ,687 $5 ,755 ,090 General Government $6 ,066 ,700 $6 ,390,115
Sales Ta x $4 ,460 ,400 $4 ,750,000 Police $5 ,136,166 $5 ,167 ,582
Licenses & Permits $2 ,101 ,488 $2 ,343,140 Fire $470 ,782 $468,804
Fines & Forfeitures $300 ,000 $275 ,000 Recreation $1 ,165,332 $1 ,229,970
Intergovernmental $536 ,484 $427 ,500 Street $3,702 ,522 $2 ,595 ,177
Rent & Interests $211 ,022 $238,500 Sanitation-·11 incl udes $SOOK-outsource $2 ,147 ,102 $1 ,868 ,108
Charq es for Service $4 ,394 ,475 $4 ,874 ,250 Golf $1 ,014 ,919 $1 ,091,029
Golf $1 ,014 ,429 $1 ,091 ,028 Library $565 ,000 $600 ,000
Adult Recreation $49 ,925 $38 ,400 Airport (Debt Svc 221 K , Appropriation SOK) $281 ,124 $281 ,124
Recre ation Dept $403 ,604 $391 ,704 The Haven $65 ,002 $65 ,000
All Other Revenues $1 ,581 ,755 $234 ,250 Sen ior and Special Services (Nix+) $886 ,474 $895 ,672
Utility Transfers* $5 ,101,784 $4 ,902 ,949 Baldwin Cly Transit Hub 0 $24 ,000
Total Rev/Transfers $25,870,053 $25,321,811 Transfer to capital projects 0 $90 ,000
Sales Tax Transfer to "Lock Box" -$2 ,230 ,200 -$2 ,375 ,000 Debt Services-•11 includes 1 OOK fire truck $1 ,840 ,188 $1 ,961 ,230
debt service
Sub Total $23,639,853 $22,946,811
Total Expenditures: $23,341,311 22,727,811
Revenue minus Expenditures $298,542 219,000
LESS PROVISION FOR EMPLOYEE RAISES (219 ,000)
Excess Revenues over Expense
Utilities
2011 2012 2011 2012
Gas Fund Operating Revenues $8 ,205 ,900 $8 ,382 ,847 Electric Fund Operating Revenues $19 ,595,529 $20 ,847 ,135
Gas Fund Operatin g Expense $5 ,719 ,022 $5 986 018 Electric Fund Operating Expense $16,094 ,066 $16 ,956 ,936
Earning from Operations $2,486 ,878 $2 ,396,829 Earning from Operations $3 ,50 1,463 $3 ,890,199
T ransfer to General Fund $1 ,492 ,126 $1 ,307 573 Transfer to General Fund* $2 ,100 879 $2 ,122 ,271
Funds to build reserve & repair $994,752 $1,089,256 Funds to build reserve & repair $1,400,584 $1,767,928 infrastructure infrastructure
Transfer to General Fund-percent 60.00% 54.55% 60.00% 54.55%
Water Divis ion Operating Revenues $5 ,962 ,320 $6 ,686,878 Sewer Divis ion Operating Revenues $3 ,405 ,339 $3 ,654,851
Water Division Operating Expense $3 ,447 ,688 $3 740 668 Sewer Division Operating Expense $3 317 692 $3 ,495,570
Earning from Operations $2 ,514 ,632 $2 ,946,210 Earning from Operations $87 ,647 $159,281
Transfer to General Fund • Water & $1 ,508 ,779 $1 ,473,105 T ransfe r to General Fund * Sewer
Funds to build reserve & repair $1,005,853 $1,473,105 Funds to build reserve & repair $87,647 $159,281 infrastructure infrastructure
Transfer to General Fund-percent 60.00% 50.00%
Sta 9/12/2011