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Admin Committee Minutes 1999 02-09-99 UNITED CITY OF YORKVILLE Committee Minutes - Administration Date of Meeting: February 9, 1999 Time Convened: 7:00 P.M. Location: 111 W. Fox Time Adjourned: 9:35 P.M. Attendees: Richard Sticka Richard Scheffrahn Valerie Burd Jeff Spang Rose Spears Dennis Lloyd Doug Brian Gene Sheeley Jim Nanninga Discussion: 1.) Police Department Petty Cash Increase Request - Graff would like to increase the petty cash amount to $300. This money is accounted for with receipts. City Administration spends money on small stuff like batteries. The Police Department has never gone over $200. Spears and Spang would like to see an itemized list of what the money us actually used for. We basically do not know what we are approving. Spears suggest maybe just listing it on the bill list instead of account numbers. If the money is used for travel expenses, then list where. Scheffrahn suspects that the cash is probably pretty low by replenishing time. Petty cash is usually replenished at the end of the month. 2.) Route 47 Lot Sale - Posting will be in next weeks Kendall County Record. Dan said it needs to be posted for two weeks and septic needs to be checked out. At the current time it will have to be sold on the condition that the septic field is being used. Sewer is there and Mrs. Gauer will need to hook up to the sewer. We do not have an offer yet. They have been holding off until it is posted. Spang is concerned with the South lot. We need to get the lot sellable first, by getting Mrs. Gauer on City water. 3.) First Time Home Buyers Loan Program - This offer is through Gates Capital. Program is for first time home buyers. Interest rate is slightly below the regular interest rate. Loan includes three percent to cover the closing cost. Forty percent of the people that rent can not come up with the money to cover the closing cost. City of Aurora, Springfield and several other towns are taking part. The only repayment is the amount of the loan and the bonds. Aurora is very active in this program. Under Federal law there are guidelines. Income for one person must be $70,000 or higher and for two people, must be $80,000. Cost of the house needs to be between 149,000 and $190,000. The home need to be occupied by the homeowner. It is not meant to be rental property. We would need to pass a ordinance and inter into a cooperative agreement that those 9000 XVJ OU VI 66 /LO /EO Administration Page 2 Cities can then loan money to other residents in other towns. Yorkville is not home ruled. We can apply to the State by January 1 to lead a program. There is no risk to the City. The upside is that more homes will be purchased. Family living improves. The people will still need to qualify for the loan. It does not cover the full down payment. We need to pass an ordinance by the end of February. Nanninga will check to see if we have a copy of an ordinance. Spang would like to hear from the Illinois Municipal League. Home ruled cities are targeted along with active real estate communities. Mostly in the smaller suburbs. Naperville is not part of the program because there homes cost too much money by the Federal standards. City Council will need to have copies of the documents before the meeting to review them. 4.) Budget Review - The budget shows the budgeted amount, the revised budget and the proposed budget. The percentage is on the revised budget. Spang would like to see the percentage on the original budgeted amounts. We need to have justification to increase the line item. Scheffrahn said last year we showed a percentage. We could just list the percentage increase over the revised budget. Sticka thinks we should show both, it is a simple calculation. Public Works talked about where the money is going in the capital projects. The rebuild on Morgan /State and Countryside Parkway in streets will come from MFT. Public Works does not think they have enough money to do Countryside Parkway. The problem if we do Countryside is that we will not actually have the money until the spring of 2000, but it would still be within this fiscal year. We could do some interfund borrowing but then we need to make sure the funds get put back within the same fiscal year. We are trying not to do any interfund borrowing, but it is not such a big deal to repay within the same fiscal year. Maintenance of streets shows State. State and Morgan are lumped together. $138,000 is not enough to do the entire project if we bid it out. Under Finance there is a new program, Facade Program - to improve facades. Burd is writing a resolution for this program. Telephone tax is higher then what we budgeted. Revised budget is at $16,300 we are increasing to $20,000 and Nanninga said that is still higher then what we have budgeted. Population is based on the State. A lot of things will change once we go over 5000 people. At that time we will have to do a special census. Mayor Johnson will be discussing wages with the Committee. Parks show revenue twice and no expenditures. We are doubling the Economic Development funds, this is in anticipation of the EDC Coop. Money is only shown as a proposal. This would eliminate our EDC Director. We can keep her on month to month until the Coop is in place. Safety Equipment - We do need some equipment. $22,000 is budgeted to get trench boxes. Scheffrahn thinks that if we are doing something pretty risky that we should hire an expert to do it. We need the trench boxes just to dig five feet deep. There is $11,000 coming from sewer and $11,000 from water. We have not gotten bids yet. Maintenance of storm sewers in increased by £00[n XV3 OT :VT 66 /LO /£O Administration Page 3 $1,500. Maintenance supply is at $11,000. We have $14,000 for fence for the River Front Park. J.T. and Wywrot will get three quotes. Scheffrahn found some used fencing. 5.) Additional Business - Fund Balancing - There are three funds with negative numbers that should not have negative numbers. There are seven recommendation to do. If all seven steps are done then all balances will be positive numbers and all but three will show a net fund balance. The three items net balance must be established by an audit. we need to access a true value of the pass through accounts. General fund has basically loaned to the debt service to payback bonds. We must continue to increase the balances in the funds, in particular the general fund to provide an increase level of comfort in repaying the debt incurred with these projects. When we do an audit, all funds should have a positive balance. Cash must be a positive number. Cash may be held in a different account. This i5 based on where we were at the end of December. There is a difference in transferring and borrowing money. When money is transferred there is no intention of repayment. When borrowing there is the intention of repayment. There could someday be a need to borrow, but the money has to be repaid, and not by borrowing from another fund, that was a problem in previous years. Scheffrhan will find out next month where we are. Options on Funding Debt - Some of the figures that Scheffran has are different then what Nanninga has. Scheffrahn figured on a five year payback and Nanninga is on a four year payback. This year we need to pay half of year worth of interest and loan. SSES bid of $1.77 million. Bid on unit price contract. It is based on units. Bottom line may change. Scheffrahn used a $2,000,000 contract. One half done by the end of the fiscal year and completely done next fiscal year. Funded on bonds by the State of Illinois at 2.8 percent. Nanninga thinks it will end up around 2.58 percent. Scheffrahn believes that we would spend the same $1.3 million on the new building or the Old Court House. This will be an encumbered fund in next years budget. We are anticipating an elevated water tank but we do not know when. Cost will depend on size. We do have an agreement with some developers to pay $50,000. The City may have to pay their share sooner. Radium issue may need a treatment plant. There is a lot of assumptions in this. 94/95 is where the increases started. We will be doubling the debt service. 99 to 03, Scheffran is hoping that we understand that we should not'be borrowing from a bank to buy an automobile. We are spending $381,000 this year and then we jump to $699,000. Spang is wondering if we are getting $300,000 in new revenue. We need to look at both sides. Proposed budget does show enough money to cover everything. Nanninga will let Spang know where the $300,000 is coming from. Limit of allowable debt, in 1991 we were at less then five percent of the allowable. Right now we are at 20 percent of the allowable. With projects for next year, we will be at 40 percent. We were t00 In XVd OT:VT 66/LO/E0 Administration Page 4 discouraged from this high of percentage because we did not have control over our spending and we did projects without a means to repay. We have doubled our allowable percentage. Tourism Council - They are putting together a brochure. Looking for input on some of the things that happen before September. Big Band, Fourth of July festivities, River Front Festival, etc. Dam Study - State did a study on dams. Four steps below the dam looks to be the safest. It is still dangerous because you could fall and hit your head. Looking at putting in a canoe shoot. DNR says that our fish are lazy and they need to jump and rest. Need right of way and then to maintain it. Has to be on the south side up next to the enbutment. Canoe shoot will be more like rapids. This will increase the fishing. Batavia is looking to do the same thing. We need a letter of support. DNR is coming out February 18. Gift Ordinance - Illinois Municipal League did not have anything. We will have to write our own. Wheeler -Y2K Letter - We have not received letter yet. Nanninga will check on this. He thinks we may have it. i Minutes by: Mollie Anderson 9001p] XVA OT : VT 66/LO/£0