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City Council Minutes 2009 02-21-09 Special Meeting MINUTES OF A SPECIAL MEETING OF THE CITY COUNCIL OF THE UNITED CITY OF YORKVII.,LE, KENDALL COUNTY, ILLINOIS, HELD IN THE CITY CONFERENCE ROOM 800 GAME FARM ROAD SATURDAY, FEBRUARY 21, 2009, 9:OOAM CALL TO ORDER Mayor Valerie Burd called the meeting to order at 9:02am. ROLL CALL Ward I Allen Arrived 12:20pm Werderich Present Ward II Golinski Present Plocher Absent Ward III Munns Present Sutcliff Present Ward IV Besco Absent Spears Present Also present: City Administrator Brendan McLaughlin, Assistant City Administrator Bart Olson, Finance Director Susan Mika, Treasurer Bill Powell, Police Chief Harold Martin, Director of Parks & Recreation David Mogle OUORUM A quorum was established GUESTS: George Gilson, Tom Gilmour, Judy Gilmour, Todd Milliron BUSINESS: 1. FY 2008 -2009 Revised Budget Susan Mika led the budget discussion and each department was discussed as follows. Administration Department Alderman Golinski said he objected to including $130,000 from the County in the Investment Income in this fiscal year since the City does not have it yet. He said that money is interest and the other $600,000 of the total amount of $700,000 is not included. Ms. Mika will include it as well. Mayor Burd disagreed and said she felt the $130,000 would be received soon. It was noted this item could be pulled from the budget before a final vote, if not resolved. The amusement tax was questioned and Ms. Mika said it was the amount received from Raging Waves. The Park Planner salary was discussed and it was noted that part of that salary comes from Land Cash. Since no parks are being planned at this time, Alderwoman Spears voiced concern about using that money for salary. Alderman Golinski said he reviewed past minutes and clarified that the Planner was requested by Parks and later the position came under Community Development. He said the salary should come from Community Development. Werderich also voiced his concern about using Land Cash for salaries. Treasurer Powell offered to have his salary reduced by $1,000; however, Mayor Burd noted that the amount was set by Resolution. Alderwoman Spears requested that the Legislative Attorney position be put back into the budget. The legal services need to be scaled back where possible in regards to Attorney Orr's bill ings. Alderman Golinski suggested reducing the number of phone calls placed to her and said a comparison should be done of past attorney fees. It was also noted that a "Green Committee" member had placed a call to Attorney Orr. Overall, it was decided The Minutes of the Special Meeting of the ON Council — February 21. 2009 — page 2 that the phone calls should be coordinated. Alderman Werderich said questions should be asked prior to the meetings she attends since she is already being paid by the City at that time. Attorney Orr is required to attend one committee meeting per month. When ordinances are prepared by her assistant, the City is billed at a lesser rate. Alderwoman Spears said some revisions should be done in -house to save money. Finance Department Ms. Mika said one person had resigned and the position was not filled. She will adjust the salaries accordingly. The health insurance costs will be up 12% for next year. Ms. Mika briefly reviewed an HRA plan and also talked about increasing employee costs. Alderwoman Spears suggested that the City should look at proposals from other insurance carriers; however, it can not be done until the following year. Communitv Relations One salary in this department was up 9% based on an employee evaluation. Most others were increased by 4 %. Alderwoman Spears requested a copy of all pay increase percentages and also asked for an executive session to discuss particular salaries. It was noted there will be no increases for next year. Line items for postage and shipping costs are for newsletters and `welcome' packets. Alderwoman Spears suggested that new residents pick up these packets. Mr. Olson added that some postage was decreased in Administration and moved to Community Relations. EnQineerina Treasurer Powell questioned the EMRF amount being 75% year to date. It resulted from the difference in posting and what was actually on the budgets provided at the meeting. Public Safetv Crossing guards are paid from this budget. Also, cadet funds were decreased due to a cadet leaving the program for another job. Hospital lab fees were down this year and Chief Martin said that his department tries to recoup these fees during court proceedings. Any such reimbursements are put into the general fund. Training has been cut considerably partly due to televised cable training. Chief Martin said he likes to have 40 hours of training per officer each year and in -house training is also conducted_ When an additional person is promoted to Sergeant, he would like to have him/her attend a class. This would require additional money. Alderwoman Spears said she would like to see additional evidence technician supplies, however, the Chief said some money remains from this fiscal year. Communitv Development No discussion. Streets. Health & Sanitation Ms. Mika said it was anticipated that over $1million would have to be borrowed due to drastically reduced development fees. She will do a summary sheet for this category. Alderman Golinski said budget revisions should not be approved where there is a deficit involved. Permit fees will also be reviewed. A "Capital Budget" is now included in the overall budget which should allow for more precise reporting. Mayor Burd stated that no more of the Fund Balance can be spent. Mr. McLaughlin also commented that sales taxes are always in arrears and cannot be posted until the next fiscal year. Ms. Spears cautioned that the City should not totally rely on the sales taxes since the State of Kansas had recently withheld them. The Minutes of the Special Meeting of the Citv Council — February 21, 2009 — page 3 MFT This fund shows a surplus. No further discussion. Municipal Building This fund shows a deficit and a large portion of these funds will be moved to the general fund this year. Only one more bond payment for City Hall will be needed from this fund according to Ms. Mika. Fox Hill & Sunflower The City assumed responsibility for the SSA's for these 2 developments. Ms. Mika said the taxes for Fox Hill will always be one year in arrears. It was questioned why mowing was $7,000 in Sunflower and $2,000 in Fox Hill so this will be researched. Alderman Werderich suggested City employees should take over the maintenance to possibly help retain City jobs. A cost comparison of maintenance was also suggested. Police Capital This fund is balanced. Public Works A surplus of $92,000 was carried over from last year and will move forward to next year. Parks Capital This shows a balanced fund. Citv Wide Capital This fund is newly created in this year's budget and currently a deficit is shown, however, anticipated revenues should close this gap. The revenues in this portion of the budget come from road contribution fees, engineering capital fees and transfer from the general fund. The "downtown brown grant" was for a study of the parking lot near the train tracks and it is 100% reimbursable. It is important to track the negatives for accounting purposes according to Mr. McLaughlin_ Debt Service Fund A current deficit of $237,259 will be closed by April 30 and will come from the Water & Sewer Fund and the General Fund. Water Fund This fund is balanced. Sewer Fund A current surplus of $1.6 million is shown here, however, money will soon be paid to developers relating to agreements with them_ There was discussion about water tap -on fees to be repaid to MPI who is currently in foreclosure. Water expansion was also discussed. Plans for repayment will be reviewed in the future. Land Cash Ms. Mika will move the $130,000 discussed earlier in the meeting. She will also include the reimbursement for Prairie Meadows; however, it will not be included until the deed is obtained. Dave Mogle added that Whispering Meadows was not a donation property. Parks & Recreation This fund shows a negative balance of (431,925). A recent money market account was added to this fund leaving a negative balance of (- $27,539). An early transfer of funds was needed to cover payroll for January and Mr. Mogle gave an explanation of this transfer. There was a lengthy review of the numbers presented and Ms. Mika and Mr. Mogle did a comparison of how they each arrived at their figures_ Mayor Burd said a deficit of $208,000 was projected in this fund by the end of the fiscal year. The Minutes of the Special Meeting of the Citv Council — February 21. 2009 — Daze 4 Susan Mika will meet with Dave Mogle next week, then create a spreadsheet prior to any further meetings and will be solely responsible for reporting the budget for Parks. Library Fund Mayor Burd reported that the City cannot change the Library levy and must approve it as presented. The levy can be a maximum of 15 %. It was noted that the Library budget is almost comparable to that of the Police Department. There was a brief discussion of a possible Library District. The Library payroll is processed through the City and many other services such as auditing, health benefit administration, etc. are provided to the Library at no charge. The Mayor suggested a discussion between the Library Board and City Council and at that time a list of expenses incurred by the Library for these services will be presented to them. Susan Mika will compile the figures. TIF The TIF's are balanced and the revenues are covering the expenses. 2. 2009/2010 Proposed Budget General Fund A $230,000 shortfall is projected. Possible employee furloughs of 4 days were discussed resulting in savings of $100,000. This would not include police department or exempt personnel. Traffic Fines /Adiudication Fee /Other Fees Chief Martin asked that adjudication fees be listed as a separate line item. He also mentioned that grants are available for personnel and squad cars. Liquor license fees will be reviewed with a possible 10 -25% increase. The line item for Beecher Center rentals includes only rentals from private citizens. Susan Mika will research where the $1,000 is deposited from the Senior rental. A recommendation was made by Alderwoman Spears to not charge the Seniors $1,000 a month for their rental at the Beecher Center. She said Golden Diners may have to discontinue their program at Beecher due to lack of funds. i Alderwoman Spears detailed the costs the Seniors have incurred over the years. They also pay for the cleaning of the building and she suggested the City repay them in some way. Township funding will also be explored. Ms. Mika will add a line item for monthly rentals. Ms. Spears also asked where the "polka money" is located in the budget. The Senior Services group generated the money in a fund- raiser. It is reflected in the Parks and Rec fund and Mayor Burd said Council approval will be needed on a bill list to release it. Betty Schoenholtz will be asked to send a request to Susan Mika for the $1,860.32 to be released. The money is earmarked for the Alzheimer Program according to Ms. Spears. The Council briefly discussed the increase in state income tax as well as MFT. Alderman Golinski voiced his concern for the transfer from Land Cash. He objected to the Park Planner's salary being paid for something other than park designing. It was suggested that Engineering and Community Development should be reviewed also since development is down. It was recommended that the $10,000 for the Green Committee be eliminated since they do not generate any revenue. However, Mayor Burd said the money was being put in the budget so that the Green Committee could request grants. It was decided that the money will be put into a line item called Green Ad Hoc Committee Administration Treasurer Powell said that his salary could be decreased to $6500. The Minutes of the Special Meeting of the Citv Council — February 21. 2009 — page 5 It was noted that KenCom was under Contingency. Bart Olson explained that KenCom may reorganize and would request additional funds. Currently they are funded 100% by the County. The $50,000 amount requested in the budget should be listed in a separate line item while $20,000 is placed in contingency. Finance Director Mika noted that "Dues" on page 2, should be changed to $9,250 rather than $250. Mayor Burd noted that Waubonsee Community College is offering classes for new Aldermen. Alderman salaries were briefly discussed. Alderman Allen questioned the $250,000 budgeted for legal services, saying that the previous budget actual costs were more. Alderman Werderich added that an in -house attorney could be hired for a reasonable rate and there would be funds left for litigators. A separate line for each "corporate counsel' and "special counsel" was suggested by Mr. McLaughlin. Alderman Golinski further stated that the legal budget should be increased to $400,000. It was decided that $200,000 will be put into each of the two categories.. It was noted that other departments also have legal budgets. All IML conferences were initially cut from the budget for a cost savings of $19,000 plus expenses for all attendees. Mayor Burd said she recommended this move since other city departments have cut conferences and to not omit the EVIL, conference would demonstrate "bad leadership ". Some Aldermen disagreed and other suggestions made were to cut lodging expenses by one night or pay the registration fee only and cut meals. The final recommendation was to leave this money in the budget, but to cut the Saturday lodging and the dinner. Tuition reimbursement will be suspended for one year. Public Relations at $150, covers grand opening gifts /flowers. The street naming program money will be deleted until next year. An annual telephone maintenance contract costs the City $3,000. This includes uarterl q Y inspections and maintenance. Ms. Mika said the City benefits by having the contract because it also covers moving phones, cancellations etc. Cell phones: The contract is no longer in effect according to Ms. Mika because it would cost the City more to lock into a contract. She estimated there are 79 out of 100 City employees who have City cell phones. A phone bill of $9,700 for Parks and Rec was discussed and Brendan McLaughlin and Dave Mogle will research ways to reduce those bills. Fagade Program: An amount of $10,000 was kept in the budget to help revitalize downtown. Office cleaning: The City Hall and Police Department have outside cleaning services twice a week. Bart Olson will complete an RFP for all cleaning services and report to the Council. Copying of City Council agenda packets has been reduced. It was suggested to combine the Appreciation Day and the volunteer /regular employee recognition in order to cut expenses by half. The Minutes of the Special Meeting of the Citv Council — February 21. 2009 — Vaae 6 Finance Health insurance was discussed. The staff will look at employees sharing a greater cost and they will talk with the vendor to maintain the present cost. It was proposed to have the employee pay $50 a month for HMO and $100 for PPO. The police contract will also be considered when police salaries are negotiated. Computer Eauinment Only a few computers will be replaced this year. Ms. Mika noted a cost of $150 -$200 an hour for tech service with a contract. Emnlovee Assistance This is a mandatory program. Communitv Relations Finance Director Mika will research the contractual services in this category. The newsletter was discussed and it was suggested that perhaps it could be delivered door to door at a cost of 17 cents per house. The parks and rec catalog could be delivered at the same time. Holidav Under the Stars Revenue collected from this event is approximately $18,000 and some thought the cost was too high at a budgeted amount of $21,000. It was the opinion of most Council members that the City needs to continue holding certain events. Sponsorships also defray some of the costs. It was thought that the City and Chamber of Commerce could work together on this project. Mayor Burd commented that if businesses wish to donate, the City should go ahead with the event. Community Events: Ms. Mika will research the $6,000 line item. Printina & Cobving: This category will be cut to $1,000.00. Public Safetv: Ms. Mika corrected a salary figure shown as $743,793 to $749,327 for the Chief, Lieutenants and Sergeants. The cost for the canine should be $1,000 rather than $11,000. Chief Martin said he will apply for a grant to fund an additional officer. Alderman Allen asked about the police pension fund and it was noted that the fund reimburses the city for their share of the audit. Alderwoman Spears said the fund should be increased to $375,000. The $325,000 amount shown is the exact amount levied according to Ms. Mika. Chief Martin said the fund is now 35% funded and it should be kept at $325,000 now and fully funded next year. Treasurer Powell said the auditors should audit this fund first so that accurate information can be given to Ms. Mika. Communitv Develobment The Council briefly talked about the number of positions there are in this department. There are six including the park planner. With reduced development, fewer people in those departments was discussed. But Mayor Burd cautioned that this department handles more than just new development. It includes GIS and downtown redevelopment. YEDC. Currently the City contributes $45,000 to YEDC and originally help set up the organization. The Council members talked about the possible effect of not contributing that large of an amount or not belonging to the YEDC. Alderman Munns said each of the 17 executive board members contribute $5,000 to YEDC. Mr. McLaughlin stated, that in his experience, cities usually match the dollars given by private sector businesses. This matter and the contract with YEDC will be taken to Administration for review and brought back to Council at a later time. The Minutes of the S n Ly ecial Meetin of the Citv Council — Februarl 21. 2009 — page 7 Streets Salaries increased in this department partly due to half of the Public Works Director's salary now being reported under Streets and half under Water /Sewer. Alderman Sutcliff said that Eric Dhuse has eliminated overtime and also part-time employees for this summer. The in -town road program has been suspended. There is some money remaining for sidewalk replacement. Health & Sanitation Susan Mika said the garbage service contract is based on the number of households. Senior citizens (400 households) receive discounts_ Summary and Final Comments 1. Ms. Mika said that revenues are at $11.1 and expenses are $11.4 leaving a shortfall of between $200,000 4300,000 2. Ms. Mika will research the effect of furloughs on the budget 3. There will be a second meeting at night to finalize the budget, permanent cuts may be needed 4. Most Councilmen agreed, they will only vote for approval of a balanced budget 5. Suggestion to put $5,000 back into sidewalk program 6. Chief Martin asked if there could be an item in the budget reflecting officers' time in schools and the parks using the schools in turn. The officers would be paid if the Parks department did not use the schools. Susan will research. 7. Why are schools still being used —since City has new Rec Center. 8. Parks and Rec budget to come back for review 9. Question raised on Park & Rec salaries: In 2008/2009 salaries listed as $359,525 and in 2009/2010 listed as $371,000. Susan will research. 10. Public Works has volunteered to help Parks & Rec with mowing, etc. 11. Parks & Rec has cut most seasonal employees 12. Examine shift work as a cost- cutting measure 13. Council should have goal session prior to doing the budget 14. Recommendation to postpone goal session until after election ADJOURNMENT: Alderman Golinski made a motion to adjourn this special session and Alderman Werderich seconded the motion_ Motion approved unanimously on roll call vote: Roll Call: Werderich -yes; Allen -yes, Golinski -yes, Munns -yes; Sutcliff -aye; Spears -aye. Meeting d at 4:12 g � ourned m. p Minutes respectfully by Marlys Young