Administration Minutes 2009 06-18-09 APPROVED 8/24/09
UNITED CITY OF YORKVILLE
800 Game Farm Road
Yorkville, IL 60560
ADMINISTRATION COMMITTEE MEETING
City Hall, Conference Room
Thursday, June 18, 2009 — 6:00 P.M.
PRESENT:
Chairman Sutcliff, Vice - Chairman Teeling, Committeeman Gilson
ABSENT:
Committeemen Ald. Golinski
ALSO PRESENT:
City Treasurer — Bill Powell; City Admin. — Brendan McLaughlin; Interim Director
of Park and Recreation - Bart Olson; Finance Director - Susan Mika and City
Attorney — Kathy Orr I
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Chairperson Sutcliff called the meeting to order at 6:02 pm.
MINUTES FOR CORRECTION /APPROVAL: May 14, 2009 — Minutes were approved
NEW BUSINESS:
1. ADM 2009 -35 Monthly Treasurer's Report for April 2009
Bill Powell stated the beginning balance of $19,170,793.00
Revenue was worth $2,967,008.00
Expenses of $2,987,516.00
For an ending balance of $23,271,126.00
Our Reserved Balance in the General Fund is down to 2.38%
The item was moved forward to City Council June 23 consent agenda.
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2. ADM 2009 -36 Resolution of Authorization to Close Castle bank Checking
Acct. # 80515096 for the North Water Tower Project
Chairperson Sutcliff stated that this account has a zero balance. Recommend
approval to close. Approved to close.
3. ADM 2009 -37 Resolution Approving an Identity Theft Prevention Program
(Red Flag Rules Policy)
Susan Mika commented that the city has to put this policy in place to help prevent
identity theft.
City Attorney Orr said the law went in effect in 2003. The city was to comply
Nov. 8 1h and then extended to June. It effects every government that has water or
garbage billing system.
The item was moved forward to City Council June 23 consent agenda.
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4. ADM 2009 -38 Prevailing Wage Ordinance
No questions. The item was moved forward to City Council June 23 consent
agenda.
5. ADM 2009 -39 Departmental Spending /Budget - Discussion
Alderman Gilson brought this forward to council because he believes that
Yorkville will not be able to achieve a balanced budget as proposed. He feels that
it is time to be proactive as a city; to start micro - managing spending until things
look better. He would like to propose that all department heads give an oral report
at the City Council Meeting if they are spending over the budget and what
specifically what they spent and why.
Alderman Gilson asked Susan Mika if she believes we will meet the proposed
budget. Director Mika stated she is currently working on reviewing revenue
trends because we are 3 months behind. She said we have not closed the year end
out as of yet. We may not get the target line for the Municipal Sales Tax and State
Income Tax. We are half way through June and we haven't got in May's numbers
yet but based on what she is looking at, there's a possibility we may not hit those.
Once she gets more of an indication that we may not meet the targeted budget she
will present to the Mayor.
City Attorney Orr asked if the department heads report to the council, what
happens then. Alderman Gilson said if they are over spending, we would know
exactly what they are spending it on. City Attorney Orr said the information is
here; located in the committee report.
City Attorney Orr also said, by law, the City Council is a legislative body. It has
no right to administer the day to day operations. The city has a chief CEO, the
Mayor, so the accountability of the budget falls on her. The City Council is a
legislative body that decides the budget and gets quarterly reports on the budget.
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Chairperson Sutcliff feels that it would be a duplicate effort to report and also
stated that the budget has been cut to the bone. Alderman Gilson feels that there
are still travel expenses that appear and all kinds of other frivolous spending that
can be cut.
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Attorney Orr asked how much of the budget is under the control of the
department. Brendan McLaughlin estimated somewhere between 10 -15% is the
operational piece of the budget. There is about 6 or 7 departments, so each
department would have control of approximately 2% of the budget.
Alderman Gilson said 15% or 50 %, we need to watch it all. And if 50% is
staffing and we're still not meeting our proposed budget, then we need to look at
staffing. City Attorney Orr said it's not overspending; the problem is the revenue
shortfall, not the budget.
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Brendan McLaughlin stated last year's total expenditures were lower than the
total budget. At the end of last year, the revised budget for expenditures was
$12,003,730.00. The projected yearend total expenditures were $11,952,013.00.
Administrator McLaughlin also stated there were over 2 million dollars in cuts
this year. He believes there will be additional cuts this year, but he's not prepared
to make that statement one month into the year,
Bill Powell believes what Alderman Gilson is looking for is if there are any
unanticipated sizeable expenses that hit us at any given time.
Alderman Gilson is looking to do, for what he thinks is fair and he thinks
everyone here should agree, is to get all of the information for any set of over
spending over what we have to run this city in the black; we should know what it
is and we should know exactly what it is spend on and we should be accountable
for it.
The budget is set on annual basis and not on a month to month basis.
Alderman Gilson asked if everyone was under the same preconception that we are
not going to run in the black at the end of this budget and does anybody disagree
with that.
Chairperson Sutcliff disagrees with that, because adjustments will be made at the
appropriate time.
Brendan McLaughlin thinks it is far more productive to have 3 different budget
meetings during the course of the year than to sit in 24 City Council meetings
during the year and question each individual line item of each department head.
Administrator McLaughlin doesn't think you'll get the end results of a balanced
budget and cost reductions by having that type of discussion which would cause
longer and less effective council meetings. When the auditors wrap up the
numbers from the past fiscal year would be a good time to sit with the Mayor to
take a look at the current year's budget and be able to say here's where we have
revenue concerns and come in with recommended adjustments.
Chairperson Sutcliff asked if this item should be sent forward to council. This
item was declined 2 to 1 to move forward for consent.
6. ADM 2009 -40 Policy on Developer Deposits
Brendan McLaughlin explained that a policy needs to be created for outstanding
bills that are owed to the city. City Attorney Orr said currently there is no policy
in place. The policy states that the City Attorney will take action on items over
$30K and items under $30K will get referred to a collections agency. Attorney
Orr will inform the public by putting it on the attorney's report.
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The item was moved forward to City Council June 23 consent agenda.
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7. ADM 2009 -41 Committee Liaison Appointments
Metra Board — Choose not to participate at this time
Library Board — Alderman Plocher
Cable Consortium — Gary Golinski to continue
ADDITIONAL BUSINESS:
1. Strategic Plan — Vice - Chairman Teeling - Discussion
Vice Chairman Teeling introduced a relatively inexpensive Strategic Plan for the
City. Possibly start small with a survey or a questionnaire directed to the citizens.
Setting goals for the city and get input from the citizens of where they want to see
the city grow. Attorney On added that the Plan is only as good as the input but the
idea is to get the City as a whole to participate; Businessmen, Elected Officials,
Educators, Citizens and Recreational Businesses. Basically it is a priority list or a
wish list; if we had money today, what would be more important for the citizens
to have; Big Box Businesses, Movie Theatre, Public Transportation or classy
stores. Would they want to remain a hometown setting or move into the 21
century.
Committeemen Gilson said he is ok with it as long as it is not an added cost to the
city.
Vice Chairman Teeling will investigate more on the topic and look into a no cost
way to begin the process with a survey and possibly accompany the news letter.
ADJOURNMENT OF THE ADMINISTRATION COMMITTEE MEETING:
With no further business to discuss, the meeting adjourned at 7:16 p.m.
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Minutes respectfully submitted by Tim Dlugopolski
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4 o United City of Yorkville
800 Game Farm Road
1 1636 Yorkville, Illinois 60560
Telephone: 630 -553 -4350
11.211 Fax: 630 -553 -7575
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