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Administration Minutes 2014 02-19-14 Page 1 of 4 APPROVED 3/20/14 UNITED CITY OF YORKVILLE ADMINISTRATION COMMITTEE MEETING Wednesday, February 19, 2014 6:00pm City Hall Conference Room Committee Members In Attendance: Vice-Chairman Jackie Milschewski Alderman Joel Frieders Alderman Chris Funkhouser Absent: Alderman Rose Spears Other City Officials In Attendance: Bart Olson, City Administrator Rob Fredrickson, Finance Director Administrative Intern Jeff Weckbach Guests: None The meeting was called to order at 6:00pm by Vice-Chairman Jackie Milschewski. Citizen Comments: None Minutes for Correction/Approval: December 19, 2013 The minutes were approved as presented. (New Business Item #7 was moved to the beginning of the agenda). New Business: 7. ADM 2014-14 Water Rates/Utility Billing Formats (out of sequence) Mr. Olson recapped the discussion of the Public Works meeting of the previous night and reviewed the chart he drafted showing proposed percentage increase rates for 2015 to 2019. He also summarized the possibility of taking no action or not moving forward with any of the water/sewer programs. Alderman Milschewski noted an average household increase of $60 per year if there is a 15% yearly increase. With this increase, the City could still move forward with the Roads to Better Roads and the Rt. 71 project. There were no water rate hikes from 1998 to 2008 when the 5-year increase was instituted. There was a 40% increase the first year with a 1.5% increase thereafter. Mr. Olson noted that if the population reaches 25,000, the City must fund the Bristol Bay well and treatment facility. Page 2 of 4 Alderman Funkhouser asked if the City will wholly fund the Rt. 71 watermain project. The City will be responsible for the funding and it is the opinion of Engineer Sanderson that the City cannot afford it. Mr. Funkhouser asked if the City could spread the payments over a few years, but Mr. Olson replied that the State has already denied any type of payment plan. Mr. Funkhouser said he favors a rate increase based on usage, rather than funding through bonds. Mr. Olson said that a 50% increase might even be needed to be able to fund the Rt. 71 watermain move. Since sales tax revenue has been higher in the last 2 years, Mr. Funkhouser suggested using some of that revenue towards water and sewer, reduce scope of services in other areas, or transfer some items from the sewer/water budget and place them in the general fund. Mr. Olson said that while it is legal, it is desired to make the water and sewer funds self-supporting. He added that the bond rating could slip and there could be future major deficits. Alderman Frieders suggested a one-time 45% increase for one year and then bring it down to normal levels. It was agreed that it would be a financial hardship for many. Ms. Milschewski said any increase must be marketed well with a cost breakdown. Alderman Milschewski revisited Alderman Ken Koch's previous idea of raising money through a real estate tax bill. However, Mr. Olson said it would require a referendum dedicated to water and sewer. Alderman Funkhouser asked if commercial and residential rates are the same. Since they are the same, Alderman Funkhouser suggested the commercial rates be raised. He said this would also encourage eco-friendly efforts. He also said that many new plumbing fixtures conserve water and free programs are offered as well. Proposed higher commercial rates will be prepared for the next committee meeting or City Council. Alderman Milschewski also suggested that EEI do a presentation at a possible town meeting. Alderman Milschewski asked how Raging Waves affects the water. Mr. Olson said they have a lesser impact than a small subdivision and they recycle their water. It was noted they also pay minimal tax at this time. Discussion turned to YBSD billing. Mr. Olson said that if YBSD processed their own billing, it would free up staff time spent on questions and there would be fewer complaints at city hall. The City said it costs the City $150,000 yearly to do the YBSD billing. Suggestions also included billing water and sewer on alternate months, however, citizens would then be writing 2 checks and City postage costs would increase. Only 5- 10% of citizens use the on-line bill payment. A separate utility billing module would need to be purchased to bill water and sewer separately and in alternating months according to Mr. Fredrickson. A quarterly billing was suggested, however, Alderman Milschewski said it might be more difficult for residents to pay and there could be increased water shutoffs. Another suggestion was to increase the monthly fee to do the YBSD billing. The contract with YBSD will end on April 30, 2014 and it was suggested by Mr. Funkhouser that the Page 3 of 4 checks sent to them be reduced to maintain/buy software. He suggested approaching YBSD with this option. In summary, staff was asked to meet with YBSD and review some of these options. 5. ADM 2014-12 Lockbox RFP Mr. Olson said this is an RFP that would be given to banks for the possibility of collecting utility bills and distributing the payments to the City. There would be a small cost, but it would save on manpower. A report of the transactions would be downloaded from the bank. Any payment lacking pertinent account information would be sent to the City for processing. Alderman Funkhouser said he would like to see a Yorkville Post Office Box for the payments because he has concern for payments going outside of Yorkville. Yorkville banks will be asked for bids first, but not all offer this service. Based on cost, Mr. Fredrickson said the City might use a bank outside the City. Mr. Funkhouser added he would like a shorter contract such as 3 years rather than 5 to allow for renegotiation of terms if needed. Alderman Frieders expressed concern about using the Post Office regarding postal/delivery errors. Aldermen Funkhouser and Frieders want the City to receive a hard/digital copy of all checks from the bank as well. The committee approved the RFP's for lockbox service. This moves forward to the consent agenda. 6. 2014-13 Ordinance Amending City Code Removing the Time Limits on the Display of Political Signs on Residential Property All Alderman approved this ordinance and it moves forward to City Council consent. (Alderman Funkhouser left at this time, 5:55pm) (resume agenda order) 1. ADM 2014-08 Monthly Budget Report for December 2013 and January 2014 Alderman Frieders asked why the liquor licenses fluctuate. They are due in April and revenue appearing in other months could indicate a business changed management or owners. If the amount is negative, it indicates withdrawal of the application. 2. ADM 2014-09 Monthly Treasurer's Report for December 2013 and January 2014 The committee approved these reports and they will move forward to City Council Mayor's Report since there was no quorum at this time. 3. ADM 2014-10 Cash Statements for October, November and December 2013 These are for information. Alderman Frieders inquired if these reports are accessible on the Microfiche. They are not available yet, but will be in the future. December 2013Januar y 2014 Beg Fund Bal.$12,266,413$12,266,413 YTD Revenues $19,664,411$20,890,543 YTD Expenses $20,152,193$22,156,311 Proj. End. Fund Bal.$11,778,630$11,000,644 Page 4 of 4 4. ADM 2014-11 Bills for Payment The committee approved these payments. Old Business: 1. ADM 2013-52 Council Chambers Renovations Alderman Funkhouser had asked that this item be tabled until next month. Improvements are proposed in the 2015 budget for audio, visual and integration with the website. Additional Business: Mr. Frieders asked if the City website link to the rec center could be removed or be re-directed to the website. The City would have to pay for this removal according to Mr. Olson. The new website will be customizable and changes will not cost anything. There was no further business and the meeting was adjourned at 7:03pm. Minutes transcribed by Marlys Young, Minute Taker