BACKGROUND

In the current fiscal year 2014/15 budget $38,000 was budgeted for Contractual Services.  This was budgeted under Contractual Services in order to contract with a qualified individual or firm to provide assistance in permit review and coordinating development projects. Responsibilities would include assisting the development review process, zoning, signage review, permit review and helping customers at the front counter and other projects as needed.  In order to obtain help for the department so that other longer term projects can move forward, this Contractual Services item was budgeted for this fiscal year.  

Two options to provide such assistance were explored. Option 1 - contract with an individual to perform such services or Option 2- contract with a consultant firm.  It was determined that the most cost effective would be Option 1 - contract for such services with an individual seeking temporary or part-time employment.  As a result, a Contractual Planning Consultant job description was posted and after reviewing applicants, a well qualified candidate has been selected.   

However, based upon IRS guidelines, an individual may not be legitimately characterized as an independent contractor if performing employee functions.  Therefore, this would be categorized as a temporary employee, working approximately 20 hours per week as needed.  The result of this IRS regulation and classification is the need to amend the Planning & Community Development budget by transferring $38,000 currently budgeted in the Contractual Services account to the Temporary Help account.  By taking this approach, the Village would also need to contribute toward Medicare and Social Security, but no other insurance or IMRF contributions. The significant benefits are a much lower hourly rate than what could be obtained from a consultant firm.  There is no budget increase as a result of this budget transfer.  

RECOMMENDATION

It is recommended that the Village Board approve a budget transfer of $38,000 from the Planning Department's Contractual Services account #101-4001-521-20-05-to its Temporary Help Account #101-4001-521-18-01 and the appropriate fringe benefit accounts.