Administration Minutes 2015 04-15-15Page 1 of 3
APPROVED 5/20/15
UNITED CITY OF YORKVILLE
ADMINISTRATION COMMITTEE MEETING
Wednesday, April 15, 2015 6:00pm
City Hall Conference Room
Committee Members In Attendance:
Vice-Chairman Jackie Milschewski
Alderman Chris Funkhouser
Alderman Joel Frieders
Alderman Rose Spears (via phone)
Other City Officials In Attendance:
Bart Olson, City Administrator
Rob Fredrickson, Finance Director
Guests: None
The meeting was called to order at 6:00pm by Vice-Chairman Jackie Milschewski.
Citizen Comments: None
Minutes for Correction/Approval: March 18, 2015
The minutes were approved as read.
New Business:
1. ADM 2015-12 Monthly Budget Report for March 2015
Alderman Frieders questioned several items on the report as follows:
1. He asked if telephone utility tax is lower due to a decrease in house phones and if so,
he suggested decreasing the budget for it by 50% next year. Mr. Olson said there has
been discussion about reform at the State level regarding the 9-1-1 funding and the part
of the excise tax that goes towards it. The excise tax currently does not apply to the
substantial data usage on cell phones. This issue was discussed at KenCom according to
Alderman Funkhouser.
2. The low federal grants at 60% were discussed. This money is reimbursement for
overtime assistance for the Cook County drug task force. Mr. Fredrickson said receipt of
the money is lagging.
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3. Mr. Frieders asked if certain fees/court fines such as for littering could be increased.
If the violations can be handled in the City adjudication system, the fines can be
increased, but violations going through the courts cannot.
4. Investment earnings were discussed along with the possibility of earning higher
returns. Mr. Fredrickson said a collateralized account has been opened that yields higher
basis points and is fully secured.
5. Rental income is shown at zero. It was most likely under $.50 and rounded down.
6. Operating supplies for police was questioned. This includes kits with holsters and was
offset with grants.
7. It was noted that Public Works and Community Development have or will be
attending conferences.
2. ADM 2015-13 Monthly Treasurer's Report for March 2015
Finance Director Fredrickson reported the following:
3. ADM 2015-14 Cash Statement for January and February 2015
For information/review. No further action.
4. ADM 2015-15 Bills for Payment
No comments
5. ADM 2015-16 Pension Funding Policy
Mr. Fredrickson said that GASBY recommends having a formal pension policy for
transparency and to define the actuarial assumption. This year's contribution is $722,000.
He presented some of the highlights of the policy and said that if all conditions are met,
the fund should be at 100% in 2040. Mr. Olson added that due to slightly reduced
property taxes and a decrease in the funding, there is a gap of $16,000 this year which
will come from the General Fund. A budget amendment will be drafted to cover this.
There was discussion about assuring that each employee would be covered by a pension
and how the rates of contribution are determined. The City recommends contribution
percentages necessary to meet the funding and the actuary also reviews the rates.
Alderman Funkhouser questioned if there is a point at which the fund becomes
burdensome and not sustainable if the tax base does not grow. Mr. Olson replied the
City has taken a position of not supporting pension reform and based on many factors,
many neighboring towns have determined the funds will not be sustainable. Alderman
Funkhouser said the State has already reached that point and he predicted the City will hit
that “tipping point” as well. He suggested revisiting this issue in six months after the
State discussions about this topic. This item will move to the consent agenda.
Beg. Fund Balance $10,894,313
YTD Revenues $31,780,849
YTD Expenses $27,298,134
Proj. End. Fund Balance $15,377,028
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6. ADM 2015-17 EEI Hourly Rates for FY 16
This is an annual/semi-annual rate adjustment. Mr. Olson said the numbers are
comparable to other firms. Alderman Funkhouser asked about the percentage of increase
and how many fewer hours the City will get due to this increase. Those numbers will be
calculated prior to the next City Council meeting. This moves to the regular agenda of
the Council meeting.
Old Business:
1. ADM 2014-89 Aurora Area Convention and Visitors Bureau (AACVB) Agreement
Mr. Olson said the administrators of the four area towns in discussions, will meet next
week after the Executive Director interviews. This will be moved to next month's
meeting for further consideration.
Additional Business:
1. Alderman Funkhouser asked about an item from last month's meeting regarding the
possiblity of MSI waiving the setup fee for the outsourcing of the utility bills. MSI only
agreed to decrease that fee by $150.
2. Alderman Milschewski inquired about the amount of revenue received from gas
stations. MFT is $.17 a gallon and a sales tax is a percentage. She asked if the City sees
a decrease since the gas prices are high in the City and some people go to Plano for gas.
There has been no decrease noticed and there is a proposal that the State would eliminate
sales tax, (taking the city share) and increase the per gallon tax (which would benefit the
State).
There was no further business and the meeting adjourned at 6:26pm.
Minutes respectfully submitted by
Marlys Young, Minute Taker