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City Council Minutes 2009 01-13-09 MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL OF THE UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS, HELD IN THE CITY COUNCIL CHAMBERS, 800 GAME FARM ROAD ON TUESDAY, JANUARY 13, 2009 Mayor Pro Tem Werderich called the meeting to order at 7:03 p.m. and led the Council in the Pledge of Allegiance. ROLL CALL Clerk Milschewski called the roll. Ward I Allen Present Werderich Present Ward II Golinski Present Plocher Present Ward III Munns Present Sutcliff Present Ward IV Besco Present Spears Present Also present: City Clerk Milschewski, City Attorney Gardiner, City Administrator McLaughlin, Assistant City Administrator Olson, Finance Director Mika, Police Chief Martin, Lieutenant Hart, Director of Parks & Recreation Mogle, Community Development Director Miller, Public Relations Officer Spies and City Engineer W; QUORUM A quorum was established. INTRODUCTION OF GUESTS Mayor Pro Tem Werderich asked the staff and guests to introduce themselves. He welcomed the guests and asked them to enter their names on the attendance sheet provided. AMENDMENTS TO THE AGENDA A motion was made by Alderman Sutcliffto table the Boundary Agreement Discussion (CC 2008 -118) under the Mayor's Report: seconded by Alderman Plocher. i Motion approved by a viva voce vote. COMMITTEE MEETING DATES Public Works Committee 6:00 p.m., January 20, 2009 City Hall Conference Room Economic Development Committee 7:00 P.M., February 3, 2009 City Hall Conference Room Administration Committee 6:30 p.m., February 12, 2009 City Hall Conference Room Public Safety Committee 6:00 P.M., January 22, 2009 City Hall Conference Room PRESENTATIONS None. PUBLIC HEARINGS None. CITIZEN COMMENTS None. CONSENT AGENDA 1. Agreement between the United City of Yorkville Park & Recreation Department and Yorkville Youth Baseball/Softball Association — authorize the Mayor to execute (CC 2009 -01) The Minutes of the Regular Meeting of the City Council — January 13, 2009 — page 2 Mayor Pro Tem Werderich entertained a motion to approve the Consent Agenda as presented. So moved by Alderman Spears; seconded by Alderman Golinski. Motion approved by a roll call vote_ Ayes -8 Nays -0 Golinski -aye, Werderich -aye, Plocher -aye, Spears -aye, Munns -aye, Sutcliff -aye, Allen -aye, Besco -aye PLAN CONMSSION /ZONING BOARD OF APPEAL Approving a Variance for Merlin Corporation -102 Beaver Street, Yorkville ZBA 2008 -05 A motion was made by Alderman Allen to approve an ordinance approving a variance for Merlin Corporation, 102 Beaver Street, Yorkville and authorize the Mayor and City Clerk to execute; seconded by Alderman Besco. Director Miller explained that the Zoning Board of Appeals met and reviewed the request. They recommended against the variance (4 opposed, 2 in favor and 1 abstention). Alderman Allen stated that in light of the ZBA's lack of support, he could not support the variance. He stated that that while he looked forward to Merlin's coming to Yorkville he liked standards and didn't feel it was good direction to change the rules. Alderman Spears commented that she liked how the sign looked and she did not feel the petitioner was asking for much. She supported the variance. Alderman Besco agreed saying it was a tasteful sign. He asked if this was the standard sign and the petitioner stated it was. Alderman Spears noted that the ZBA is to review each request however ultimately the City Council makes the decision. There was a similar problem with the Wendy's sign and now it is not very visible. Motion defeated by a roll call vote. Ayes -5 Nays -3 Golinski -aye, Besco -aye, Allen -nay, Sutcliff -nay, Munns -aye, Spears -aye, Plocher -nay, Werderich -aye Attorney Gardiner explained that the motion was defeated because a super majority or 2/3's vote was needed to approve the variance. He read a statement from Attorney Orr regarding this. Alderman Spears asked if this could come back before the City Council and Attorney Gardiner explained that it could if one of the City Council who voted against it asked for a motion to reconsider at the next City Council meeting. ME TES FOR APPROVAL A motion was made by Alderman Mums to approve the minutes of the City Council meetings of November 10, 2008, November 25, 2008 and December 9, 2008; seconded by Alderman Golinski. Alderman Spears noted that on the bottom of page 4 of the December 9, 2009 minutes the vote is incorrect and Alderman Golinski's name is not mentioned. Clerk Milschewski stated she would correct the minutes. Motion approved by a viva voce vote. BILLS FOR APPROVAL A motion was made by Alderman Munns to approve the paying of the bills listed on the Detailed Board Report dated January 5, 2009 totaling the following amounts: checks in the amount of $667,700.60 (vendors); $279,142.88 (payroll period ending 12/20/08); for a total of $946, 844.48; seconded by Alderman Golinski. Alderman Spears questioned a bill on page 11, Engineering Enterprises, Inc. — General Work in the amount of $319.50. She wanted to know what comprised general work. Director Mika stated she would pull the invoice and report back to Alderman Spears as to the particulars of the item. Motion approved by a roll call vote. Ayes -8 Nays -0 Mums -aye, Plocher -aye, Spears -aye, Sutcliff -aye, Werderich -aye, Besco aye, Golinski aye, Allen aye i The Minutes of the Regular Meeting of the City Council — January 13, 2009 — page 3 REPORTS MAYOR'S REPORT No report. CITY COUNCIL REPORT Anti- Nepotism Policy (CC 2009 -119) A motion was made by Alderman Allen to approve the Anti - Nepotism Policy; seconded by Alderman Munns. A motion was made by Alderman Allen to table the Anti - Nepotism Policy to the Administration Committee; seconded by Alderman Munns. Motion to table approved by a roll call vote. Ayes -8 Nays -0 Mums -aye, Spears -aye, Plocher -aye, Werderich -aye, Golinskiaye, Besco aye, Allen aye, Sutcliff -ave ATTORNEY'S REPORT No report. CITY CLERK'S REPORT No report. CITY TREASURER'S REPORT No report. CITY ADMINISTATOR'S REPORT Special Census Update Administrator M cLaughlin reported that the census has been wrapped up and the workers have moved out of the office. He thanked the Public Works Department, the Chamber of Commerce and City Secretary Bonnie Olsem for their help. Alderman Werderich asked when the city would be getting the results. Assistant City Administrator Olson stated that the unofficial numbers should be available in two to three weeks and the official numbers soon afterwards_ Chamber of Commerce Administrator McLaughlin reported that the annual Chamber of Commerce dinner was being held on January 115, 2009 from 5:00 to 10:00 p.m. at White Tail Ridge. Aux Sable Creek Planning Meetings Administrator McLaughlin reported that the Aux Sable Creek Planning Meetings are scheduled for January 15, 2009 at the Historic Court House at 1:00 and 5:30 p.m_ FINANCE DIRECTOR'S REPORT Director Mika distributed information from Standard and Poor's and reported that the city's bond rating has been raised to A+ and the debt certificate rating is up to an A from an A -. Alderman Allen asked how the audit was coming along. Director Mika stated that a draft will be presented to the City Council at the January 27, 2009 meeting. DIRECTOR OF PUBLIC WORKS REPORT Director Dhuse reported that the Public Works Department is trying to keep up with the snow and he asked for patience from the residents. He reminded everyone that there is an ordinance prohibiting people from shoveling snow into the street and those violating it can be fined $25.00. Alderman Werderich stated that he received telephone calls regarding driveways being plowed in. One call was from an elderly couple and he wanted to know if anything could be done about this_ Director Dhuse explained that unfortunately this was unavoidable. CHIEF OF POLICE'S REPORT Chief Martin reported that the Police Department has issued quite a few citations for vehicles parked on the street after two or more inches of snow. Two cars were towed. He advised the public to keep their cars off the roadway after a snowfall or the cars will be ticketed or towed. The Minutes of the Regular Meeting of the City Council — January 13, 2009 — page 4 DIRECTOR OF PARKS & RECREATION'S REPORT Director Mogle reported that the Recreation Department had a successful open house at the Rec Center. Eighty -six new members signed up and over $5,000.00m' membership fees were collected. The Rec Center was crowded with people using the pool, gym and exercise equipment. A new class, Zumba, was demonstrated and sixty people participated. Also, fifty people tried the power class. Alderman Allen asked if there was an empty seat on the Park Board to be filled by the School Board. Director Mogle stated that there was and has been for some time. The School Board recommended an ad hoc committee that meets four times per year. Alderman Allen asked if the open seat was specific to the School Board and Director Mogle stated it was. Alderman Allen suggested that the Administration Committee may want to re- address this since there was no quorum at the last Park Board meeting. Alderman Munns, chairman of the Administration Committee, agreed to put this on the committee's agenda. COMMUNITY DEVELOPMENT DIRECTOR REPORT Director Miller reported that on January 15, 2009 at 4 :30 p.m. there will be an Integrated Transportation Planning meeting at the Library. This will he the second of three meetings and the first meetings since the public input meeting. COMMUNITY RELATIONS OFFICER'S REPORT No report. COMMUNITY & LIAISON REPORT Library Board Alderman Allen reported that he attended the Library Board meeting where they discussed establishing a Library District_ Kendall Senior Providers Alderman Spears reported that she attended the Kendall Senior Providers meeting on January 6, 2009. Items discussed were: • Efforts to establish a transportation system • A volunteer meeting for home delivered meals and the Yorkville Junior Women's club donation of $300.00 to the meal program • Rush- Copley seminars on faster blood sugar tests and beating the blues • Upcoming events such as "Everybody's Birthday" and a golf outing • Oswego's meals program which has eighty -five participants Rush - Copley Meeting Alderman Allen reported that Rush - Copley was holding a meeting at the Library on January 23, 2009 to discuss their proposed emergency center. COMMITTEE REPORTS PUBLIC WORKS COMMITTEE REPORT No report ECONOMIC DEVELOPMENT COMMITTEE REPORT No report. PUBLIC SAFETY COMMITTEE REPORT Code Amendment Ordinances (PS 2008 -46) Ordinance Amending the Code of Ordinances Regarding Advertising on Signs and Buildings A motion was made by Alderman Spears to approve an ordinance amending the Code of Ordinances regarding advertising on signs and buildings and authorize the Mayor and City Clerk to execute; seconded by Alderman Werderich. Alderman Gohnski commented that he felt that the ordinance went too far requiring City Council consent and written consent from the building owner. Alderman Munns asked if the ordinance was discussed at the Public Safety Committee meeting and Alderman Spears indicated that it was and that the committee was split. The consensus of the committee was to bring this to the City Council for discussion. The Minutes of the Regular Meeting of the City Council — January 13, 2009 — Vase 5 There was discussion on the wording of the ordinance and its vagueness_ A motion was made by Alderman Besco to table the ordinance to the Public Safety Committee meeting; seconded by Alderman Mums. Motion to table approved by a roll call vote. Ayes -8 Nays -0 Spears -aye, Plocher -aye, Wcrderich -aye, Gohnski -aye. Besco aye, Allen aye, Sutcliff-aye, Munn ave Ordinance Amending the Code of Ordinances Regarding Fireworks A motion was made by Alderman Spears to approve an ordinance amending the Code of Ordinances regarding fireworks and authorize the Mayor and City Clerk to execute; seconded by Alderman Plocher. Alderman Spears noted that the Public Safety Committee made changes to Item B of the ordinance. The wording was changed to "... of this code; however the mayor and City Council may issue a permit for the discharge of fireworks for pyrotechnical displays." Alderman Golinski commented that again the ordinance was too vague and questioned if the city had a fireworks ordinance on the books and how did this one differ from it. He also questioned the limitations to toy guns. He stated that he was against the ordinance and questioned where these ordinances were originating from. Chief Martin explained that the toy guns being referred to were explosive ones not cap or squirt guns. He felt that the ordinance addressed a crime at a lower level before the misuse of fireworks becomes criminal. He stated that he was not sure how this ordinance differed from the current fireworks ordinance and that City Attorney Orr put the ordinance together. Alderman Besco agreed with Alderman Golinki. He noted that ordinance refers to blank cartridges and stated that under this ordinance a starter gun could not be used at a track meet in the city. Also, construction workers use blank cartridges in nail guns_ Alderman Spears noted that Chief Martin did not bring these ordinances forward and the Public Safety Committee suggested that they not be approved and the current ordinances be kept on the books. She also stated that Alderman Werderich cited where these ordinances are in conflict with state statute. Chief Martin agreed that criminal laws were on the books and reiterated that the wording and reasoning behind the code amendments came from Attorney Orr. Attorney Gardiner stated he discussed the philosophy of the amendments with Attorney Orr and she indicated that they gave the city more ability to administer enforcement Alderman Werderich stated that the Public Safety Committee had a lengthy discussion about the code amendments. His major concern was that the amendments incorporate state statute into city laws. He also noted that with criminal charges a person is innocent until proven guilty whereas with the adjudication process it is up to a person to prove their innocence. He stated that some of these code amendments are for jailable offenses and he felt it appeared the city was taking a lesser stance on crime in order to line its pockets. He commented that if it was up to him he would "ash can" all the amendments. He asked the City Council if they wanted to look at the amendments as a whole or go through them individually. Alderman Besco agreed that the amendments should be "dumped" however Alderman Allen felt he would like to know which ones people supported. Alderman Spears asked that all of the amendments be addressed at this meeting. Alderman Munns suggested that the language of this amendment be made cleaner in respect to the references to guns. Alderman Sutcliff noted that the wording was changed at the Public Safety Committee meeting and that the word "explosive" was added to the reference to toy gun. Alderman Besco still disagreed with the wording and felt that the current ordinance addressing this is fine. A motion was made by Alderman Allen to table the ordinance to the Public Safety Committee meeting; seconded by Alderman Besco. Motion to table approved by a roll call vote. Ayes -5 Nays -3 Werderich -aye, Golinki -nay, Besco -aye, Allen -aye, Sutcliff -aye, Munns -aye, Spears -nay, Plocher -nay The Minutes of the Re6ular Meetinz of the City Council — October 14, 2009 — Daze 6 Ordinance Amending the Code of Ordinance Regarding Possession of Paint or Marker with Intent to Deface A motion was made by Alderman Spears to approve an ordinance amending the Code of Ordinance regarding possession of paint or marker with intent to deface and authorize the Mayor and City Clerk to execute; seconded by Alderman Allen. Alderman Spears stated that this ordinance was discussed at length by the committee_ She questioned how intent can be proven if a person is found walking down the street with a magic marker. She stated that if this is sent back to committee she strongly encouraged comments from the City Council. Alderman Sutcliff stated that this was another ordinance brought forward by Attorney Orr and that she would like Attorney Orr to be able to explain and/or defend the ordinance. She felt that Attorney Orr should be part of the discussion and suggested tabling this until the next City Council meeting. Alderman Werderich stated that these amendments have been discussed at length and he did not feel Attorney Orr needed to be present. Alderman Besco asked if Attorney Orr attended a Public Safety Committee meeting to discuss the amendments and Alderman Spears stated she did. Chief Martin stated that Attorney Orr explained that she suggested the amendments based on her experience in other co mmuniti es. He also stated that state law covers vandalism and the amendment could be used to give an individual a chance to learn from their mistakes. Alderman Besco felt that the amendment limited artistic individuals from carrying art supplies. Motion defeated by a roll call vote. Ayes -2 Nays -6 Gohnski -nay, Besco -nay, Allen -aye, Sutcliff -aye, Munns -nay, Spears -nay, Plocher -nay, Werderich -nay Ordinance 2009 -01 Amending the Code of Ordinances Regarding Removal of Graffiti A motion was made by Alderman Spears to approve an ordinance amending the Code of Ordinances regarding removal of graffiti and authorize the Mayor and City Clerk to execute; seconded by Alderman Plocher. Alderman Plocher stated he was dead against this ordinance because it is absurd and he suggested that the City Council vote it down. Chief Martin explained that the purpose of the code amendment is to address gang graffiti which if left displayed opens the door for more graffiti. Alderman Golinski felt that the ordinance penalized the victim and he did not like the wording. Alderman Spears agreed with Alderman Gohnski. She stated that recently the Home Depot store was graffitied with gang signs and she supported the removal of this type of graffiti. However if this happened to an elderly resident it could be upsetting to them to have to remove it or pay to have it removed. Alderman Besco also agreed with Alderman Golinski. Chief Martin stated that he felt the city should find a way to work with residents to remove graffiti so that victims are not penalized. He explained that there isn't a state law covering the removal of graffiti. Most people remove it themselves or work with the city to remove it. He thought it would be good for the city to have something on the books addressing this but with different languag Alderman Werderich stated that the ordinance is to prevent and discourage gang graffiti. He supported the development of a program to address gang graffiti; to be proactive. Alderman Besco suggested changing the wording to "...the property owner may be liable...." and adding language that the city will assist with removal of graffiti. A motion was made by Alderman Allen to amend the ordinance to change the wording as suggested by Alderman Besco; seconded by Alderman Besco. A motion was made by Alderman Plocher to add the word "gang" before the word "graffiti" in the ordinance; seconded by Alderman Allen. Alderman Spears stated she was against adding the word "gang ". Alderman Allen withdrew his second; Alderman Plocher withdrew the motion. The Minutes of the Regular Meeting of the City Council — January 13, 2009 — page 7 Motion to approve amended ordinance approved by a roll call vote_ Ayes -6 Nays -2 Allen -aye, Sutcliff- -aye, Munns -aye, Spears -aye, Plocher -aye, Werderich -nay, Golinski -nay, Besco -aye Ordinance 2009 -02 Amending the Code of Ordinances Regarding Cannabis A motion was made by Alderman Spears to approve an ordinance amending the Code of Ordinances Regarding Cannabis and authorize the Mayor and City Clerk to execute; seconded by Alderman Munns. Alderman Munns asked for clarification as to what comprised 2.5 grams of cannabis and Chief Martin explained that this applied to one joint or cigarette. Alderman Golinski noted that last year a neighboring community de- criminalized 10 grams or less of cannabis and he questioned the ordinance's lower amount. Chief Martin stated that he was unfamiliar with the specifics of the other community's ordinance and that the reason for the amendment was to work with individuals who may be testing themselves. He felt that an individual possessing 10 grams of cannabis was probably a more serious user. Alderman Werderich did not agree with the reduction and explained that possession of 10 grams is a class "A" misdemeanor and possession of 2.5 grams is a class `B" misdemeanor. He stated that while he likes the adjudication process this is crossing over to something else. He felt that this was taking a soften stand on crime. He reiterated that violation of this ordinance assumes the person is guilty and they have to prove their innocence. Chief Martin disagreed that this ordinance was soft on crime. He explained that police officers have the discretion as to strictness of enforcement. This gives them the opportunity to deal with the offense on a city level however if they see repeat offenders they can charge them with a crime. Alderman Besco stated that as a parent he understood the possibility of a lighter stance for first time offenders. He agreed that that the officers should have discretion. Alderman Werderich noted that he has run into situations where a LEED report is done and ordinance - violations show up. If this is the case, the city is not doing anything to help first time offenders. Chief Martin explained that Yorkville does not report ordinance violations unless the matter goes to court. Lieutenant Hart added that if a suspect is finger - printed then the report goes to LEED. Alderman Allen stated he opposed the amendment and he was concerned it might backfire. He felt it may look like the city is soft on drugs. Motion approved by a roll call vote_ Ayes -5 Nays -3 Mums -aye, Spears -aye, Plocher -aye, Werderich -nay, Gohnski -nay, Besco -aye, Allen -nay, Sutcliff -aye Ordinance 2009 -03 Amending the Code of Ordinances Regarding Retail Theft (Shoplifting) A motion was made by Alderman Spears to approve an ordinance amending the Code of Ordinances regarding retail theft (shop and authorize the Mayor and City Clerk to execute, seconded by Alderman Besco. Alderman Werderich stated that he had the same objections to this amendment as he did the previous ones. He commented that if an individual had multiple cases pending, they would not show up when a background check was performed. Alderman Sutcliff stated that this code amendment gives police the discretion to avoid giving someone a permanent record. Alderman Munns felt that as long as police enforce the law with professional shoplifters he supported the amendment. Alderman Besco stated that theft really bothered him and if someone steals they should pay the price. Motion approved by a roll call vote. Ayes -5 Nays -3 Spears -aye, Plocher -aye, Werderich -nay, Golinski nay, Besco -nay, Allen -aye, Sutcliff -aye, Munns -aye The Minutes of the Regular Meeting of the City Council — January 13, 2009 — page S Ordinance Amending the Code of Ordinances Regarding Disorderly Conduct A motion was made by Alderman Spears to approve an ordinance amending the Code of Ordinances regarding disorderly conduct and authorize the Mayor and City Clerk to execute; seconded by Alderman Sutcliff Alderman Spears noted that the Public Safety Committee had questions regarding Item h. They felt it was vague. Alderman Werderich commented that the ordinance was written exactly per the state statute. Motion defeated by a roll call vote. Ayes4 Nays -4 Plocher -nay, Werderich -nay, Golinski -nay, Besco -nay, Allen -aye, Sutcliff -aye, Munns -aye, Spears -aye Ordinance Amending the Code of Ordinances Regarding Trespassing on Property A motion was made by Alderman Spears to approve an ordinance amending the Code of Ordinances regarding trespassing on property and authorize the Mayor and City Clerk to execute; seconded by Alderman Allen. Alderman Spears stated that the Public Safety Committee requested that this ordinance be re -written and it did not appear to have been done. i A motion was made by Alderman Spears to table the ordinance to the Public Safety Committee meeting; seconded by Alderman Allen. Motion approved by a roll call vote. Ayes -6 Nays -2 Golinski -nay, Besco -aye, Allen -aye, Sutcliff -aye, Munns -aye, Spears -aye, Plocher -aye, Werderich -nay ADMINISTRATION COMMITTEE REPORT No report. ADDITIONAL BUSINESS - Leash Law Alderman Munns requested that Alderman Spears place the leash law on the Public Safety Committee agenda since new information has come forward. Alderman Spears agreed. Shop Yorkville Alderman Munns asked Alderman Golinski to place the "Shop Yorkville" idea on the Economic Development Committee agenda. Alderman Golinski agreed. Rush- Copley Alderman Munns stated that it was very important that the community show support for the Rush - Copley Emergency Center. He encouraged residents to participate in the public hearing for the center. Abandonment by Builders Alderman Plocher stated that there is a problem with builders abandoning stuff. He spoke with the City Administrator about this and he asked if the Public Works Committee could look into it. Alderman Werderich added that he had multiple complaints about this in his ward. Alderman Besco noted that developers have bonds posted. Alderman Werderich suggested a policy to address what can be taken out of the bonds. Alderman Besco agreed to place this on the Public Works Committee agenda. Aux Sable Creek Plan Alderman Allen stated that a meeting regarding the Aux Sable Creek Plan was scheduled for January 15, 2009 at the Old Courthouse. He encouraged people to attend. EXECUTIVE SESSION Mayor Pro Tem Werderich entertained a motion to go into Executive Session for the purpose of discussing: o For litigation, when an action against, affecting or on behalf of the particular public body has been filed and is pending before a court or administrative o tribunal, or when the public body finds that an action is probable or immin ent, in which case the basis for the finding shall be recorded and entered into the minutes of the closed meeting. o For the appointment, employment, compensation, discipline, performance or dismissal of specific employees of the public body or legal counsel for the public body, including hearing testimony on a complaint lodged against an employee of the public body or against legal counsel for the public body to determine its validity. o For the discussion of minutes of meetings lawfully closed under this Act, whether for purposes of approval by the body of the minutes or semi - annual review of the minutes as mandated by Section 2.06. The Minutes of the Regular Meeting of the City Council — January 13, 2009 — page 9 So moved by Alderman Besco; seconded by Alderman Allen. Motion approved by a roll call vote. Ayes -7 Nays -1 Spears -aye, Sutchff- -aye, Werderich -aye, Besco -aye, Golinski aye, Allen-aye, Munn aye, Plocher -nay The City Council entered into Executive Session at 8:45 p.m. The City Council returned to the meeting at 9:38 p.m. MORE ADDITIONAL BUSINESS Resolution 2009 -01 Allowing Deputy Clerk to Accept Election Petitions Mayor Pro Tem Werderich noted that a resolution was needed for the Deputy Clerk to accept election petitions. He entertained a motion to approve this. So moved by Alderman Munns; seconded by Alderman Spears. i Motion approved by a viva voce vote. ADJOURNMENT Mayor Pro Tem Werderich entertained a motion to adjourn the meeting. So moved by Alderman Allen; seconded by Alderman Besco. Adjournment of the meeting was unanimously approved by a viva voce vote. Meeting adjourned at 9:39 P.M. Minutes submitted by: Jacquelyn Milschewski, City Clerk City of Yorkville, Illinois I' REGULAR CITY COUNCIL MEETING January 13, 2009 PLEASE PRINT NAME: ADDRESS: e ' o C.-Wojot� n Nic , wr.�neL 103 - Et Ic c cki L Q bl'CL 4SV� I I � SIGNIN I �I 11001cs PUBLIC FINANCE A Yorkville, Illinois Primary Credit Analysts: Credit Profile Justin Formas US$2.13 mil GO rfdg bnds (alternate rev source) ser 2008 due 12/30/2017 Chicago (312) 233 -7032 Long Term Rating A+ /Stable New justin formas® United City of Yorkville standa rdandpoors.com Secondary Credit Analysts: Long Term Rating A+ /Stable Upgraded John Kenward United City of Yorkville debt Chicago (1) 312- 233 -7003 Long Term Rating A/Stable Upgraded john_kenward® United City of Yorkville ICR standardandpoors.com Long Term Rating A+ /Stable Upgraded United City of Yorkville debt carts Unenhanced Rating A(SPUR)/Stable Upgraded United City of Yorkville GO Unenhanced Rating A +(SPUR) /Stable Upgraded Many issues are enhanced by bond insurance. Rationale The issuer credit rating (ICR) on United City of Yorkville, Ill. and the standard long -term rating and Standard & Poor's underlying rating (SPUR) on its general obligation (GO) debt have been raised to `A +' from `A', reflecting consistently positive financial operations, maintenance of very strong reserves, and solid tax base growth. The city's GO refunding bonds series 2008 have been rated `A +'. In addition, the SPUR on the city's outstanding debt certificates has been raised to `A' from RatingsDirect `A -`. The city's debt certificates are rated one notch below the GO debt to reflect the Publication Date Dec. 16, 2008 certificates' limited security. In Standard & Poor's Ratings Services' opinion, the `A +' ratings reflect the city's: Yorkville, Illinois • Proximity to the strong DuPage County area economy; • Strong wealth and income levels coupled with extremely strong property values; and • Healthy financial operations, supported by very strong reserves. The city's high overall net debt burden and continued growth pressures offset the above strengths. Revenues derived from sewer connection fees will pay the series 2008 bonds, but the city's full faith and credit GO pledge ultimately secures the bonds. The city will use bond proceeds to refund a portion of its outstanding GO bonds (alternate revenue source) series 2005D and to pay the costs of issuance. Yorkville is a nonhome rule jurisdiction and is the seat for Kendall County, located southwest of Aurora, lll. (`AA' GO rating) and Naperville, Ill. (`AAA' GO rating). The city has seen significant _ population increases, due to the combination of the high demand for affordable housing in the area and numerous annexations. Population grew to 6,189 in 2000 from 3,925 in 1990, a 57% increase. According to a special census, the city's 2006 population was 11,204, an increase of 81 % from 2000. Equalized assessed value (AV) has had strong gains in recent history, increasing 26.1 % annually since 2004 to its 2007 total of $509 million. Total market value nearly reached $1.529 billion, equating to, in our opinion, an extremely strong market value per capita of $136,461. Residents commute to jobs in Kane and DuPage counties (`AA' and `AAA' GO ratings, respectively). Major area employers include: • Waubonsee Community College (1,460 employees); • Coldwell Banker Primus Reality (550); and • Eby -Brown Co., tobacco and confectionary (400). The city's unemployment rate historically has been below state and county averages. In 2005, the city's unemployment rate averaged 3.2 %, which was below the state (5.7 %) and the national (5.2 %) rates. We consider the city's income levels strong. Median household income levels for Yorkville are 119% and 127% of state and national averages, respectively. The city's financial position remains healthy, despite a levy cap and rapid population growth that is expected to translate into capital pressures on the city. At fiscal year -end 2007 (April 30), the unreserved general fund balance stood at $2.841 million, or 27.9% of operating expenditures, down slightly from the previous fiscal year, when it totaled $2.946 million, or 28.9% of operating expenditures. Up until the recent national economic downturn, the influx of new residents into the city had increased license, permit, and fee revenues by more than 10 times in a six-year period to $3.6 j million in fiscal 2007 from $342,000 in fiscal 2001. However, the city's unaudited figures for fiscal 2008 show that particular revenue stream decreasing to approximately $3.5 million. In addition, the unreserved general fund balance dipped to an estimated $2.666 million. The fiscal 2009 budget shows a break -even result. We consider the city's overall debt burden as high at $9,422 per capita, but moderately high at 6.9% of market value. In our opinion, debt service carrying charges were moderate at 8.5% of total governmental expenditures in fiscal 2007, but amortization of outstanding debt was accelerated, with 64% of outstanding principal maturing within the next 10 years. The city does not anticipate issuing any additional debt in the next 12 -24 months. Outlook The stable outlook reflects Standard & Poor's expectation that the city will make the necessary budgetary adjustments in order to account for decreased revenues related to licenses, permits, and fees. Standard & Poor's I ANALYSIS 2 Yorkville, Illinois The outlook also reflects our expectation that, despite a cooling of development, the city will maintain at least current general fund reserve levels because management expects growth to translate into capital pressures. 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