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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 i 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. I 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. 1 i 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. i 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. i 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. 2 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. I I The item was moved forward to City Council June 23 consent agenda. i 3 i 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. I Minutes respectfully submitted by Tim Dlugopolski 4 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 „ Sm O <CE PLEASE SIGN IN MEETING: DATE: NAME COMPANY PHONE NUMBER fJiLQ P's c) c- u Cd T�at u �►�JL � �g y SS 3 -% 72-V �(anc let I l 779-7 1/ CTI i