2015.10.13 CC Minutes - Laserfiche WebLink

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October 13, 2015 Page 3 of 7 Council Business 1. Acceptance of Interim Financial Statements for the Third Quarter of 2015. City Manager Lotter indicated Finance Director Davitt would be presenting this item to the Council. Finance Director Davitt reported in an effort to keep the Council informed on the City's fiscal condition, a comparison of the 2015 revenues and expenditures for the period ending September 30, 2015 (unaudited) was reviewed with the Council. The comparison includes those programs and services that constitute the City's core functions for which changes in financial trends can have a near-term impact on the ability to maintain current service levels. Programs such as debt service and tax increment financing which are governed by pre-existing obligations and restricted revenues are not shown. In addition, expenditures in the City's Fleet and NonFleet programs are not shown as these expenditures are specifically tied to pre -funded asset replacement funds. These replacement funds are not susceptible to year-to-year fluctuations and therefore annual reviews are considered sufficient. The information is presented strictly on a cash basis, which measures only the actual revenues that have been deposited and the actual expenditures that have been paid. This is in contrast with the City's audited year-end financial report which attempts to measure revenues earned but not collected, as well as costs incurred but not yet paid. It should be noted that many of the City's revenue streams such as property taxes, are non-recurring or are received intermittently throughout the year. This can result in wide revenue fluctuations from month to month. In addition, some of the City's expenditures such as new capital purchases are also non-recurring and subject to wide fluctuations. To accommodate these differences, a comparison is made to historical results to identify whether any new trends exist. Staff reviewed the third quarter finances in further detail with the Council and requested approval. Councilmember Bauman discussed the deficit on the golf course. She commented that the expenses taken on this year would not have to be assumed in 2016. She appreciated the level of detail Finance Director Davitt included within her staff report Mayor Jacobsen agreed and thanked staff for the thorough report. Motion by Councilmember Bauman, seconded by Councilmember Burg to accept the Third Quarter 2015 Interim Financial Statements. 5 Ayes, 0 Nays -Motion Carried 2. Consideration of 2016 Health Insurance Bid from NJPA. City Manager Lotter explained Management Analyst/Human Resources Specialist Hatch would be presenting this item to the Council. Management Analyst/Human Resources Specialist Hatch reported the City of New Brighton has been a member of the NJPA cooperative for seven years. The agreement has been beneficial for the City as the majority of the past years we have cost the cooperative money. The total amount paid out for claims by NJPA has been more than the total amounts paid to NJPA in premiums. This significantly affected the cost of insurance for 2015 when the City received a nearly 23% increase for insurance. Council directed staff to look at all options in 2015 in order to keep costs low. The Insurance Committee looked at a number of options in order to get the lowest price for health insurance. The options included: • Going out to the market and an open bid • Looking at the "small group" option, do we qualify? • Improving the wellness program to encourage positive health outcomes. Council Business 1. Acceptance of Interim Financial Statements for the Third Quarter of 2015. 2. Consideration of 2016 Health Insurance Bid from NJPA.