Administration Minutes 2014 03-20-14Page 1 of 4
APPROVED 4/17/14
UNITED CITY OF YORKVILLE
ADMINISTRATION COMMITTEE MEETING
Thursday, March 20, 2014 6:30pm
City Hall Conference Room
Committee Members In Attendance:
Vice-Chairman Jackie Milschewski
Alderman Joel Frieders
Alderman Chris Funkhouser
Chairman Rose Spears (by phone)
Other City Officials In Attendance:
Bart Olson, City Administrator
Rob Fredrickson, Finance Director
Joseph Liberty, Better Business Planning
Guests: None
The meeting was called to order at 6:30pm by Vice-Chairman Jackie Milschewski.
Citizen Comments: None
Minutes for Correction/Approval: February 19, 2014
The minutes were approved as presented.
New Business:
1. ADM 2014-15 Monthly Budget Report for February 2014
Administrator Olson said the December sales tax was better than expected and consumer
sales was the second highest in the City's history. He said the tax is ahead of pace and
$2.6 million is expected for FY '14.
Alderman Funkhouser said that Jewel has been charging an extra 1% sales tax and this
has happened in the past. Mr. Funkhouser talked with the Dept. of Revenue last time and
the taxes were reset. He noted the City does not receive any of the overage, but residents
are affected. Mr. Fredrickson will discuss this with Jewel.
The budget report is for information only, no further action.
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2. ADM 2014-16 Monthly Treasurer's Report for February 2014
Mr. Fredrickson presented the Treasurer's report as follows:
Beginning Fund Balance : $12,266,413
YTD Revenue: $22,758,190
YTD Expenses: $23,843,021
Projected Ending Fund Balance: $11,181,582
3. ADM 2014-17 Cash Statements for January 2014
For information only. No comments.
4. ADM 2014-18 Bills for Payment
Alderman Frieders questioned the payment to Geneva Construction for $146,000 and
why it is paid before the work is complete. It is a “pay estimate” for the SSA of Kendall
Marketplace, reimbursement will be sought since it is a pre-approved contract and then
the contractor is paid.
5. ADM 2014-19 Benefit Insurance Program Renewal- FY 15
The City Health Insurance Broker, Joe Liberty, was present at this meeting for any
questions. Mr. Olson said the renewal rate is 6.1% for the health portion and 3.3% of that
is for ACA taxes. Staff had budgeted for an 8% increase so the extra money will be put
into the Fund Balance. Life and vision rates are locked in. Dental insurance was 19%
higher due to claims, but no benefits were changed. Blue Cross Blue Shield is used due
to ease of use and payouts.
This item moves forward for approval on the Mayor's report for City Council.
Old Business:
1. ADM 2013-52 Council Chambers Renovations
Mr. Olson said staff is working on RFP's and of particular interest is an upgrade to the
phone system. Dropped calls and line outages have been experienced and it has affected
the Police Dept. also. The current carrier is Call One and they contract with a third party
provider. Alderman Frieders suggested that emergency steps for repair be included in the
RFP in the event of outages. The City will be looking at other companies and will seek
the basic features plus add-ons. Ms. Milschewski said that the schools use Comcast and
unanswered calls are sent to email.
On-line streaming of meetings is another component being explored. Indexing the
packets/agendas is also being looked at to be able to find a certain part of a meeting. The
on-line video would tie in with the website and also allow the viewer to reference other
related information to track the history of a certain item. Airing the meetings on TV is
another option.
New carpeting in the offices is also a possibility and tiles need to be replaced. Painting
might also be done in a volunteer effort. Carpeting and painting will be done in stages.
RFP's will be brought back to the next meeting.
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2. ADM 2014-14 Water Rates/Utility Billing Formats
Mr. Olson briefly recapped discussions from other committee meetings. In the capital
improvement plan he isolated the water projects that need to be done and the $11 million
unfunded costs. The average water user pays $350 a year and with the proposed
increases and inflationary costs, it would be $700. If bonds were used to finance the
projects, the City would incur an additional $700,000 annual debt for 20 years. With this
scenario, the resident cost would go from $350 to $525 plus inflation costs. There would
also be associated asphalt, sewer and stormwater costs. Mr. Olson feels the 15% yearly
increase for the scaled-back projects is the most practical solution.
The projected growth rate and the future well/treatment facility in Bristol Bay were also
discussed. The water currently is pumped from Grande Reserve, but as the population
grows in Bristol Bay, the new well will be needed at sole cost to the City.
Alderman Milschewski said the proposed 15% increase should be presented as an
additional $5 per month for water users and show the residents what projects need to be
done. However, Alderman Frieders said the 15% is like putting a “band-aid” on the
problem and feels the increase should be greater to fund the projects. He said the City
needs to budget for the worst scenario. Mr. Funkhouser said the City should look at the
rates every 2-3 years to insure they are correct for the project costs.
Alderman Funkhouser asked if commercial users could be charged more than residents,
however, it was found that most towns charge less for commercial users. He suggested
that their rates could be raised temporarily and that they would conserve and thus self-
correct. Mr. Olson said the Council does have the authority to raise fees in this manner.
He added that the potential increases could be looked at each year for any adjustments.
Alderman Spears asked how Countryside would be affected if the 15% increase is
adopted. Unfortunately, there would still be no funding for this area of the City and
would require a 20-25% increase. Mr. Olson said the asphalt and sewer costs in this area
would be even greater than the water portion. Ms. Milschewski asked if the City could
use bonds for just Countryside. Grants or long-term bonds will be explored as the project
is planned.
Mr. Frieders expressed concern for incurring debt for the next 20 years and said the
minimum increase for water should be 25%. He asked about the possibility of one large
bond to fund the various projects. The drawback is additional debt service repayment.
With a $11 million bond, the yearly payment would be $700,000. He commented on the
statement the City is making without decent roads.
Alderman Funkhouser said the roads that were put in during the housing boom will all
need repair at the same time and said the problem compounds when the projects are all
done at the same time. Staggering the Countryside improvements was suggested by Ms.
Milschewski and she suggested bonding a smaller amount to make it affordable. Mr.
Funkhouser asked if any alternatives have been explored for the roads whereby the road
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is ground up, a stabilizer is added and the asphalt relaid. EEI would need to be contacted
regarding viability.
A line item showing the project, cost and projected ending date was suggested by Mr.
Frieders for the water bill. He added that Countryside roads deserve to be repaired.
Mr. Funkhouser requested a worksheet showing the various costs of asphalt,
underground, the rate increases needed to fund, the various streets needing repair and
totals. He also requested a rating for each project to justify that repair. Countryside will
be included in this worksheet. He also asked that this be taken to the full Council for
further discussion. Mr. Olson also pointed out that asphalt costs increase exponentially.
Additional Business: None
There was no further business and the meeting was adjourned at 7:40pm.
Minutes transcribed by
Marlys Young, Minute Taker