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City Council Minutes 1998 04-23-98 MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL OF THE UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS HELD AT THE KENDALL COUNTY BOARD ROOM, 111 W. FOX ST., YORKVILLE ON THURSDAY, APRIL 23, 1998. Mayor Bob Johnson called the meeting to order at 7:03 p.m. and led the Council in the Pledge of Allegiance. ROLL CALL Clerk Simmons called the roll. Ward I Spang Present Sticka Present Ward II Lynch Present Kot Present Ward III Jones Present Prochaska Present Ward IV Sowinski Present Stafford Present QUORUM A quorum was established. INTRODUCTION OF GUESTS Mayor Johnson welcomed those present and asked them to introduce themselves and to enter their name on the'attendance sheet provided. Alderman Spang made a special introduction of Zachary Crohn, who is working towards his Eagle Scout and in order to accomplish this he must complete a citizenship in the community badge and is in attendance to observe the meeting. AMENDMENTS TO THE AGENDA Alderman Jones stated that under Economic Development Committee reports the March Building Report had just gone to EDC on Tuesday April 7. She stated that it could go to Committee of the Whole or it could be voted on tonight. There were no objections from the City Council Members voting on it this evening. Mayor Johnson stated that the Executive Session was tabled. MEETING DATES Public Works Committee Monday May 18, 1998 6:30 PM Kendall County Building Conference Room - Suite 3 Economic Development Committee Tuesday May 19, 1998 7:00 PM Kendall County Building Conference Room - Suite 3 Public Safety Committee Monday April 27, 1998 6:30 PM Kendall County Building Conference Room - Suite 3 Administration Committee Tuesday May 12, 1998 6:30 PM Kendall County Building Conference Room - Suite 3 CITIZENS COMMENTS No citizens comments. PUBLIC HEARING No Public Hearing. PLANNING COMMISSION/ZONING BOARD OF APPEALS/SIGN REVIEW BOARD No report. Minutes of the Regular City Council Meeting, April 23. 1998 - Page 2 MINUTES FOR APPROVAL A motion was made by Alderman Prochaska and seconded by Alderman Jones to accept the minutes of the April 9 meeting as presented. Alderman Spang stated under Attorney's report the date typed should be Tuesday, April 14tH Motion carried by viva voce vote. BILLS FOR APPROVAL A motion was made by Alderman Prochaska and seconded by Alderman Jones to approve the corrected bills, subject upon approval of the sidewalk project, in the amount of $195,325.27 vendor, $59,479.34 payroll, for a total disbursement of$254,804.61. Clerk Simmons called the roll. Spang aye Sticka aye Kot aye Lynch aye Stafford present Sowinski aye Jones aye Prochaska aye Motion carried. Ayes: 7 Nays: 0 Present: 1 ATTORNEY'S REPORT No report. MAYOR'S REPORT Mayor Johnson made the following Committee Assignments for Fiscal Year 1998/1999. PUBLIC SAFETY COMMITTEE Larry Kot - Chairman Jim Stafford -Vice Chairman Art Prochaska - Member Jeff Spang - Member ADMINISTRATION COMMITTEE Kathy Jones - Chairman Richard Sticka - Vice Chairman Jerry Lynch - Member Jim Stafford - Member ECONOMIC DEVELOPMENT COMM. Art Prochaska - Chairman Jerry Lynch -Vice Chairman Tom Sowinski - Member Richard Sticka - Member PUBLIC WORKS COMMITTEE Tom Sowinski - Chairman Jeff Spang -Vice Chairman Kathy Jones - Member Larry Kot - Member Mayor Johnson stated that these assignments would be effective May 1, 1998. Mayor Johnson expressed his appreciation for the work the Committee's have done this past year. Mayor Johnson announced the invitation by Judge James Wilson to the Courthouse open house Wednesday, April 29th from 5:00 to 8:00 P.M. Mayor Johnson reminded everyone of the meeting Saturday May 2nd with the Planning Commission at 9:00 A.M. at Piggy's restaurant. Minutes of the Regular City Council Meeting. April 23. 1998 - Page 3 Mayor Johnson reminded everyone to turn in their Economic Interest Statements to the County Clerk due by May 1st. CITY CLERK'S REPORT No report. CITY TREASURER'S REPORT City Treasurer Richard Scheffrahn reported for the month of February 1998, $237,219.07 revenue, $330,671,07 expense, for the month of March 1998, $410,586.32 revenue, $206,060.42 expense, leaving a balance of$855,719.79. Treasurer Scheffrahn stated that he handed out a copy of a Repayment of Funds dated April 2, 1998. He stated that he added a final page on the back, which was a request to consolidate some of the inter fund borrowing which currently stands at $772,000.00, and with this action the inter fund borrowing would be $264,857.00. He stated that some of these are repayment of loans and others are transfers.. A motion was made by Alderman Prochaska and seconded by Alderman Lynch to accept the Treasurers report for the months of February 1998 and March 1998 as presented. Motion carried by viva voce vote. A motion was made by Alderman Prochaska and seconded by Alderman Lynch to accept the recommendations of the City Treasurer for the adjustment of funds as he has presented. Clerk Simmons called the roll. Kot aye Lynch aye Stafford aye Sowinski aye Jones aye Prochaska aye Spang present Sticka aye Motion carried. Ayes: 7 Nays: 0 Present: 1 CITY ADMINISTRATOR `S REPORT No report. SCHOOL COMMUNITY REPORT No report. Alderman Sticka stated that he had asked one of the School Bus drivers why school buses were being parked at the Cozy Corner parking lot. He stated the bus driver told him that the bus company had acquired the TCD property in the Industrial Park and they were parking there until sometime in the summer, that they did not have a contract to park there but they did receive permission from the property owner to park there. City Administrator stated that he did address this issue today on a complaint basis. He stated that Bill Dettmer would be giving tickets on all the vehicles parked there. He stated that they would notify the owner first and give notice. OLD BUSINESS None. NEW BUSINESS None. COMMITTEE REPORTS Minutes of the Regular City Council Meeting. April 23, 1998 - Page 4 PUBLIC WORKS COMMITTEE REPORT (ORDINANCE) 98-12 ORDINANCE APPROVING VARIANCE REQUEST OF WHITE OAKS ESTATES HOMEOWNERS ASSOCIATION A motion was made by Alderman Sowinski and seconded by Alderman Kot to approve a variance for White Oaks Subdivision locating a trail system as set out in the petition for the variance of the White Oaks Homeowners Association waiving the requirement of a sidewalk on River Birch Drive. Clerk Simmons called the roll. Lynch aye Stafford aye Sowinski aye Jones aye Prochaska aye Spang nay Sticka nay Kot aye Motion carried. Ayes: 6 Nays: 2 GREENBRIAR UNIT 2, LETTER OF CREDIT REDUCTION AND REPLACEMENT A motion was made by Alderman Sowinski and seconded by Alderman Lynch to reduce the outstanding Letter of Credit on Greenbriar Unit 2 and accept a replacement Letter of Credit for the City Ordinance period for remaining work to be performed in the amount of $5,000.00. Clerk Simmons called the roll. Sowinski aye Jones aye Prochaska aye Spang aye Sticka aye Kot aye Lynch aye Stafford aye Motion carried. Ayes: 8 Nays: 0 SIDEWALK REPLACEMENT/801 S. MAIN ST. A motion was made by Alderman Sowinski and seconded by Alderman Lynch to replace the sidewalk not to exceed the amount of$371.00 at 801 S. Main Street. Clerk Simmons called the roll. Alderman Sowinski stated that at the Public Works meeting they discussed designating the month of September or October as sidewalk replacement month. He stated that they are considering going to a 60-40 share program and it would be on a first come, first basis. Stafford aye Sowinski aye Jones aye Prochaska aye Spang aye Sticka aye Kot aye Lynch aye Motion carried. Ayes: 8 Nays: 0 IDOT AGREEMENTS-SUPPLEMENTAL CLAUSE A motion was made by Alderman Sowinski and seconded by Alderman Lynch to approve the addition of a supplemental clause in all joint agreements with IDOT which voids those agreements if the Illinois General Assembly or Federal funding source fails to appropriate or otherwise make funds available for the projects covered by the joint agreements. Jones aye Prochaska aye Spang aye Sticka aye Kot aye Lynch aye Stafford aye Sowinski aye Motion carried. Ayes: 8 Nays: 0 Minutes of the Regular City Council Meeting, April 23, 1998 - Page 5 PURCHASE OF 7 CUBIC YARD TRUCK FOR THE PUBLIC WORKS A motion was made by Alderman Sowinski and seconded by Alderman Lynch to authorize the Mayor and City Clerk to execute a purchase contract with Prairie International for the State purchase of a 1998 International Model 4900 6 x 4 truck as specified by the State of Illinois purchase program, for the Public Works Department, at cost not to exceed $69,000.00 upon passage of the Budget. Clerk Simmons called the roll. Prochaska aye Spang aye Sticka aye Kot aye Lynch aye Stafford aye Sowinski aye Jones aye Motion carried. Ayes: 8 Nays: 0 ECONOMIC DEVELOPMENT COMMITTEE REPORT (ORDINANCE) 98-13 ORDINANCE APPROVING FINAL PLAT OF SUBDIVISION FOR PC97-10 GEORGE WASHINGTON SUBDIVISION (MC CURDY) A motion was made by Alderman Jones and seconded by Alderman Prochaska to approve PC10, McCurdy Final Plat for George Washington Subdivision. Clerk Simmons called the roll. Spang aye Sticka aye Kot aye Lynch aye Stafford aye Sowinski aye Jones aye Prochaska aye Motion carried. Ayes: 8 Nays: 0 MARCH BUILDING REPORT A motion was made by Alderman Jones and seconded by Alderman Lynch to approve the March Building Report as presented. Motion carried by viva voce vote. PUBLIC SAFETY COMMITTEE REPORT No report. ADMINISTRATION COMMITTEE 1998-1999 FISCAL YEAR BUDGET A motion was made by Alderman Prochaska and seconded by Alderman Lynch to approve the 1998 Budget submitted 4-15-98, expense $6,677,321.00. Clerk Simmons called the roll. Kot aye Lynch aye Stafford aye Sowinski aye Jones aye Prochaska aye S pang aye Sticka aye Motion carried. Ayes: 8 Nays: 0 • + • w Minutes of the Regular City Council Meeting. April 23. 1988 - Page 5 ADDITIONAL BUSINESS APPROVE PLAN FOR ROUTE 47 AND COUNTRYSIDE TRAFFIC SIGNAL AND AUTHORIZE TO BID A motion was made by Alderman Sowinski and seconded by Alderman Lynch to accept the plans for Route 47 and Countryside Traffic Signal, upon approval and authorize the bid contingent upon IDOT. Clerk Simmons called the roll. Sowinski aye Jones aye Prochaska aye Spang aye Sticka aye Kot aye Lynch aye Stafford aye Motion carried. Ayes: 8 Nays: 0 ADJOURNMENT A motion was made by Alderman Spang and seconded by Alderman Prochaska to adjourn the meeting at 7:45 p.m. Motion carried by viva voce vote. By: Deborah K. Simmons, City Clerk City of Yorkville, Illinois • To: Committee of the Whole From: Richard A. Scheffrahn, Treasurer Date: April 2, 1998 Subject: Repayment of Funds United City of Yorkville During the last few Administration Committee meetings we discussed the desire to continue the reduction of the interfund borrowing and increasing the balances of those funds with a negative balance. This will be accomplished primarily through repayment of interfund borrowing as shown on the due to / due from schedule. Recommendations made in repaying interfund borrowing are intended to be instituted after April 1 and before April 30, so that we can close out the current fiscal year with the recommended action taken. Some revisions to the previous recommendations were made as a result of the Special Administration Committee meeting held on March 25, 1998. For continuity of discussion, the January budget numbers will be used here. The current fund balances and interfund borrowing, as of January 31, 1998: No. Fund Balance 01 General 20,708.18 10 Water Operations (69,633.89) 20 Motor Fuel 69,349.21 30 Municipal Building 292,921.42 40 Sewer Maintenance Fee (114,447.50) 60 Land Cash 63,332.47 80 Working Cash 130,242.18 85 Dev. Fee - Public Works 85,245.25 86 Dev. Fee - Police Dept. 1,481.94 87 Dev. Fee - Building 31,843.73 95 Trust and Agency (227,826.22) 98 Debt Service 395,664.84 11 Water Improvement & Expand 17,426.20 41 Sanitary Sewer Improvement 48,338.08 94 South Sewer 0.00 TOTAL 744,645.89 The current interfund borrowing is as follows: Fund Due To: Due From: General Debt Service 95,897.00 Water Operations 35,162.00 Municipal Building 32,244.00 • • Water Operations General 35,162.00 Debt Service 125,871.00 Municipal Building 201,064.00 Sewer Maintenance Fee Debt Service 149,276.00 Trust and Agency Municipal Building 19,710.00 Debt Service 77,086.00 Municipal Building General 32,244.00 Debt Service 35,872.00 Water Operations 201,064.00 Trust and Agency 19,710.00 Debt Service General 95,897.00 Trust and Agency 77,086.00 Municipal Building 35,872.00 Water Operations 125,871.00 Sewer Maintenance Fee 149,276.00 TOTAL INTERFUND BORROWING: 772,182.00 772,182.00 Specific recommendations: 1. The Water Operations Fund owes $201,064.00 to the Municipal Building Fund. The City's auditors reviewed past records and have identified this as an incorrect entry made during the fund consolidation effort at the end of last year. Action: Remove that due to/ due from entry. 2. Close the Dev. Fee - Public Works Fund, the Dev. Fee - Police Dept. Fund and the Dev. Fee - Building Fund, then transfer their balances to the General Fund. Accounts for these development fees are currently maintained in the General Fund to administer their distribution. The General Fund has collected and distributed these funds during the past few years. The City's auditors do not show these as separate Funds. Action: Close the three Development Fee Funds, maintaining them as accounts, and transfer their balances to the General Fund. 3. The Water Operations Fund has a $69,663.89 negative balance with a total of $161,033.00 owed to it and the Sewer Maintenance Fund has a $114,447.50 negative balance with a total of $149,276.00 owed to it. Further reduction in interfund borrowing 2 • should be considered, and positive fund balances should be created. Previous discussions have determined that the net balance in the Debt Service Fund could be reduced to repay the interfund borrowing to it, as long as we can ensure that the repayment of municipal debts will not be impaired. The City has exercised effective control of its spending and is not at risk of defaulting on the current loans. Action: 1. Repay $85,000.00 from the Debt Service Fund to the Water Operations Fund. Repay $20,000.00 from the General Fund to the Water Operations Fund. This should provide a positive balance in the Water Operations Fund. 2. Repay$149,276.00 from the Debt Service Fund to the Sewer Maintenance Fee Fund. This should provide a positive balance in the Sewer Maintenance Fee Fund. 3. Repay $19,710.00 from the Municipal Building Fund to the Trust and Agency Fund and repay $77,086.00 from the Debt Service Fund to the Trust and Agency Fund. This should provide the net balance for the Trust and Agency Fund. 4. Repay $35,872.00 from the Debt Service Fund to the Municipal Building Fund. This, with recommendation 6, should provide the net balance for the Municipal Building Fund. The net effect of these interfund borrowing reductions would decrease the balance in the Debt Service Fund from $395,664.84 to $48,430.84, or 17% of next year's current debt payment schedule. The remaining funds should provide adequate protection for the anticipated water and sewer recapture fees ($42,000.00 budgeted), and still allow the reduction of the interfund borrowing. Any unanticipated shortage of funds in the Debt Service Fund would immediately be resolved by increasing the interfund borrowing as necessary. 4. Reassign the remaining $40,871.00 borrowed from the Debt Service Fund to the Water Operations Fund as borrowed from the General Fund to the Water Operations Fund and assign the same amount of balance from the General Fund to the Debt Service Fund. This will result in restructuring the interfund borrowing to the Water Operations Fund with out effecting the net amount of funds in the Funds. Action: 1. Reassign the $40,871.00 as noted and include $40,871.00 as borrowed from the General Fund to the Debt Service Fund. 5. The Working Cash Fund was created to provide a financial buffer at the beginning of the fiscal year so that normal expenses could be paid prior to receiving revenue. The Fund was established with a balance of$110,000.00, which must be repaid by the close of each fiscal year. The Fund currently has a balance of$130,242.18, which includes interest collected on the initial balance. Our annual budget call for this interest to be considered as revenue to the General Fund, however the interest has been entered as 3 revenue to the Working Cash Fund. Action: 1. Transfer $20,242.18 from the Working Cash Fund to the General Fund. Enter future interest funds collected to the General Fund. 6. During the past years some of the expenditures for building improvements were transferred from the General Fund to the Municipal Building Fund, while other funds were borrowed. This has resulted in an interfund borrowing that needs to be addressed. Action: 1. Transfer$32,244.00 from the Municipal Building Fund to the General Fund, then use those funds to repay the interfund borrowing from the General Fund to the Municipal Building Fund. This should provide the net balance for the Municipal Building Fund. With the adoption of these recommendations, the resulting fund balances are: No. Fund Balance 01 General 139,521.28 10 Water Operations 35,366.11 20 Motor Fuel 69,349.21 30 Municipal Building 309,083.42 40 Sewer Maintenance Fee 34,828.50 60 Land Cash 63,332.47 80 Working Cash 110,000.00 95 Trust and Agency (131,030.22) 98 Debt Service 48,430.84 11 Water Improvement & Expand 17,426.20 41 Sanitary Sewer Improvement 48,338.08 94 South Sewer 0.00 TOTAL 744,645.89 The fund balance in these Funds are equal to the net fund balance. The resulting interfund borrowing are as follows: Fund Due To: Due From: General Debt Service 136,768.00 Water Operations 56,033.00 4 • Water Operations General 56,033.00 Debt Service General 136,768.00 TOTAL INTERFUND BORROWING: 192,801.00 192,801.00 7. The Trust and Agency Fund has a $131,030.22 negative balance. Including the funds currently (12/31/97) held in trust, the fund has a net $153,617.62 negative balance (as of December 1997 billing cycle). The February 1998 billing cycle will not be completed until the April bills are distributed, so the current billing shortage has not yet been determined. This balance has accumulated for many years and has increased monthly. It is important to recognize that these funds have already been "spent" during the past several years and that we are now accounting for it. The City is currently negotiating a revised revenue collection contract with the Yorkville- Bristol Sanitary District that will create a true pass-through fund. The City's auditors and staff are reviewing past records to identify any excess funds that may have been distributed to the Sanitary District or other agencies, and will advise the City about the feasibility of trying to seek a return of some or all of those funds. Action: 1. Approve the YBSD revenue collection contract (April 1998) and determine the final net Trust and Agency Fund shortage ($153,617.62 current). 2. Loan $72,056.00 from the Municipal Building Fund to the General Fund. This interfund borrowing is budgeted to by repaid during the next fiscal year. 3. Transfer the current fund shortage, $153,617.62, from the General Fund to the Trust and Agency Fund. This will result in the Trust and Agency Fund regaining its current true net balance. Please note that some minor adjustments may need to be made to the recommended repayment of the interfund borrowing to account for the changes in the Fund balances by the end of this fiscal year. With the adoption of these recommendations, the resulting fund balances are: No. Fund Balance 01 General 57,939.66 10 Water Operations 35,366.11 20 Motor Fuel 69,349.21 30 Municipal Building 237,027.42 5 • 40 Sewer Maintenance Fee 34,828.50 • 60 Land Cash 63,332.47 • 80 Working Cash 110,000.00 • 95 Trust and Agency 22,587.40 98 Debt Service 48,430.84 • 11 Water Improvement & Expand 17,426.20 • 41 Sanitary Sewer Improvement 48,338.08 • 94 South Sewer 0.00 TOTAL 744,645.89 The fund balance in these Funds are equal to the net fund balance. The resulting interfund borrowing are as follows: Fund Due To: Due From: General Debt Service 136,768.00 Water Operations 56,033.00 Municipal Building 72,056.00 Water Operations General 56,033.00 Municipal Building General 72,056.00 Debt Service General 136,768.00 TOTAL INTERFUND BORROWING: 264,857.00 264,857.00 The net results of some of these recommendations create a transfer within these funds while others create a repayment of borrowed funds. The total amount of borrowed funds was reduced from $772,182.00 to $264,857.00, or a net decrease 66%, 8 of the 12 funds will have their actual net balance and all funds will have a positive balance. An increase in the balance of the General Fund through a net positive cash increase (more revenue than expenses) is necessary by the end of the fiscal year to further improve the repayment of interfund borrowing. This total interfund borrowing should be reduced by providing a contingency of at least$50,000 each year for repayment of interfund borrowing, provide a contingency for debt service (should additional borrowing be required), and increasing the cash balance in the General Fund. Recommendations 1 & 2 can and should be implemented at this time. The other recommendations will be implemented during the month of April as the fiscal year is closed out. Some of the other recommendations will require city council action when it is deemed appropriate. 6 • 4 . Updating these funds to the current balances with the adoption of these recommendations, the resulting fund balances are: No. Fund Balance Balance 1/31/98 3/31/98 01 General 57,939.66 21,817.64 10 Water Operations 35,366.11 40,815.88 * 20 Motor Fuel 69,349.21 77,399.43 30 Municipal Building 237,027.42 237,555.68 * 40 Sewer Maintenance Fee 34,828.50 26,653.21 * 60 Land Cash 63,332.47 68,472.77 * 80 Working Cash 110,000.00 110,000.00 * 95 Trust and Agency 22,587.40 109,632.24 98 Debt Service 48,430.84 105,674.67 * 11 Water Improvement & Expand 17,426.20 7,106.75 * 41 Sanitary Sewer Improvement 48,338.08 50,591.52 * 94 South Sewer 0.00 0.00 TOTAL 744,645.89 855,719.79 * The fund balance in these Funds are equal to the net fund balance. 7