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
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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