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Administration Minutes 2009 02-12-09 APPROVED 4/9/09 UNITED CITY OF YORKVILLE 800 Game Farm Road Yorkville, IL 60560 ADMINISTRATION COMMITTEE MEETING City Hall, Conference Room Thursday, February 12, 2009 — 6:30 P.M. PRESENT: Chairperson Munns, Committeemen Golinski, Spears, Werderich ABSENT: None ALSO PRESENT: City Administrator McLaughlin, Assistant City Administrator Olson, Finance Director Mika, Treasurer Powell, Mayor Burd, Alderman Sutcliff, Alderman Allen, Parks Director Dave Mogle, Sue Swithin of the Recreation Department. The meeting was called to order at 6:32 p.m. in the Conference Room of City Hall. PRESENTATION: None MINUTES: The minutes of November 13, 2008 were approved. i NEW BUSINESS: 1. ADM 2009 -01 Monthly Budget Report for October, 2008 2. ADM 2009 -02 Monthly Budget Report for November, 2008 3. ADM 2009 -03 Monthly Budget Report for December, 2008 Committeeman Spears inquired about Parks and Recreation accounts. She noted that Salary - Contractual is listed at 104% and Expense - Instructors at 356 %. Finance Director Mika stated that difference is between the Recreation Department and the Rec Center. She will prepare a memo explaining why journal entries were done to show these items in the appropriate accounts. Committeeman Spears inquired about the explanation in the December report on line #58 which states ` #65 & #81 are same — repetition incorrect'. Mr. Mogle stated he would look into the matter. Committeeman Spears inquired as to why the instructor fees are so high at the Rec Center. Mr. Mogle stated that the revenues cover the instructor salaries. Adjustments need to be made to make this more accurate. Ms. Switbin stated that this is a learning curve for the staff this first year and that they are trying to put expenses and revenues in the right facilities. They hope to have everything fixed 1 by next fiscal year. She added that All Sports is a large program and it's budget was in Recreation, it has been moved to the Rec Center. City Administrator McLaughlin added that the City moved funds from one account to another in the same department, but still the overall budget is less than the original budget. Director Mika stated that although the City Council did not approve the 6 -Month Revised Budget, she will include that information in future reports as the City is trying to stick to those figures. Committeeman Spears was concerned that the City Council was not given the opportunity to approve the revised budget as they are the policymakers and should have done so. Mayor Burd explained that the revised budget only included cuts as the City is trying to be more fiscally responsible. Committeeman Spears asked again why the City Council did not approve the 6 -Month Revised Budget. Mayor Burd stated that there was no meeting. City Administrator McLaughlin stated that it was on the agenda, moved to City Council, then sent back, then the meeting was canceled. Committeeman Spears stated that a Special Meeting should have been held. Alderman Allen stated that Committeeman Spears had asked to reduce the number of meetings to keep expenditures down. Committeeman Spears asked for proof of that statement in meeting minutes. Committeeman Spears re- iterated that a special meeting should have been held to approve the 6 -Month Revised Budget, similar to the goal meeting held 2 months before the election. Mayor Burd stated that only budget cuts were made, Director , Mika will share the information with the council members now. Committeeman Golinski asked if any budget revisions were made. Mayor Burd responded again that only budget cuts were made. Committeeman Golinski stated that they approved a transfer of $600,000.00 to the fund balance, is that what the City is sticking to? City Administrator McLaughlin stated that staff made efforts to save money. There was a recommendation to close the gap and reduce the total expenses. Mayor Burd stated that money was moved from within a department, not outside of a department. Committeeman Golinski asked if the City had adopted the 6 -Month Revised Budget or were they working off the original budget. Mayor Burd stated that the city is working off the original budget and will be under budget. They will try to keep the $600,000.00 for the fund balance. The goal is to meet the revenues. Committeeman Golinski asked if the sales tax from December was released. City Administrator McLaughlin explained that it was released for spending in November. They are about 3 months behind from when the funds were spent. Committeeman Golinski advised that when you add up this year vs. last year, the City is about $20,000.00 behind. We have budgeted $2.9 million, but could only receive $2.5 million and be off by $400,000.00. City Administrator McLaughlin stated that at mid -year, the target was $2.65 million, it is unknown how the December spending will affect that target. Committeeman Golinski stated that he doesn't know how the City can do this without a budget revision, he is concerned that Staff will come to City Council at the end of the year and ask for funds to fix the shortfalls. Treasurer Powell stated that perhaps the City Council could revisit 2 the 6 -Month Revised Budget even thought it would be unofficial, then they would have an idea of what the City is shooting for. Alderman Allen felt that would be very beneficial. City Administrator McLaughlin stated that it would be beneficial to revise it to clean it up and create a larger general fund balance. Treasurer Powell felt that the real benefit would be public perception. Committeeman Werderich asked if it could be addressed at the February 21, 2009 meeting. Director Mika stated that she and Mayor Burd had to meet to discuss a few items, then it could be sent out prior to February 21, 2009. It was determined that item #1 on the agenda would be the revised budget, followed by the preliminary budget for next fiscal year. Committeeman Spears stated that she would appreciate having the prior weekend to look over the documents and wanted to be sure that they would be distributed early enough. The statutory date for approval is April 30, 2009. Additionally, the newly elected members of City Council will take over on May 12, 2009. Committeeman Golinski stated that the December budget report shows legal fees at over 200 %. He feels that this line item needs to be increased for next year. City Administrator McLaughlin stated that this included all legal fees, including the landfill. Committeeman Golinski inquired about when Attorney Orr's contract is up for re- negotiation, to which he did not receive a reply. These items were moved to the Consent Agenda. 4. ADM 2009 -04 Monthly Treasurer's Report for October, 2008 5. ADM 2009 -05 Monthly Treasurer's Report for November, 2008 6. ADM 2009 -06 Monthly Treasurer's Report for December, 2008 Treasurer Powell stated that the beginning balance was $9,632,413.00, with revenues of $2,147,083.00 and expenses of $3,285.160.00 for an ending balance of $8,394,337.00. The fund balance for the general fund is 15.37% and the overall fund balance is 16.7 %. Committeeman Spears noted that every month the expenses are twice as much as the revenues. Treasurer Powell noted that the month of December was better. With no further discussion, this item was moved to City Council. 7. ADM 2009 -07 Rec Center Report Mr. Mogle noted that the building opened on July 1, 2007 (7 months ago). The major positive aspect is that they have good membership retention. The facility has allowed them more space and therefore some programs have been moved into the facility. In the month of December, approximately 260 classes were held there. The major challenge is that the City took over the facility in the 2 slowest months of for Club 47 historically. It has been a learning curve in that they had to merge staff and inherit staff, but overall they are pleased. Additionally, many compliments have come from members. 3 Through January, the Park and Recreation fund is under budget by $75,000.00 and the Rec Center fund is over budget by $75,000.00, however, they are 1 month ahead on the rent payment of $17,500.00 therefore, Rec Center has actually made money and not simply broke even. At the 3 / mark of the year, the revenues are at 78% and the expenditures are at 77 %, so they are doing ok. Mayor Burd asked if those figures included the budget cuts. Mr. Mogle stated it did reflect the $123,000.00 budget cut. Committeeman Spears asked why the City is paying advance rent payments. Mr. Mogle stated that the first payment was late, therefore they sent 2 at a time and now they have kept up that schedule of being 1 payment ahead. Chairperson Munns and Committeeman Spears stated that the residents were told that the facility would be self sufficient. Ms. Swithin stated that they are trying to fix the budget line items to get everything coded together and that by May 1 St they will have better understanding. Additionally, she added that the revenues are behind approximately 1 month and will be caught up by April 30, 2009. Mr. Mogle added that there were some start up costs as well including computer software and phone systems, construction costs, and repairs to the pool. Ms. Swithin stated that the report includes a breakdown of the programs and PASS options. More options are available than were through Club 47. In July they had 650 -700 members. Through January 31, 2009 they had 1145 members. They conducted an open house, which they will do each season, and signed up 86 new members. Many of the Club 47 memberships were up in December /January. Out of the 650 brought over from Club 47, only 31 members dropped which is really good. She is pleased that the membership , numbers have increased so j much. However, they will have their work cut out for them during this tough economy. She added that the trend in Recreation is to sell basic level membership, then add options. Committeeman Munns asked about the recruiting efforts and whether or not someone is trained to handle those matters. Ms. Swithin stated that there is someone on each shift with knowledge about the contracts, etc. When asked how they handle tougher sales, Mr. Mogle replied that Ms. Swithin is the best salesperson. Ms. Swithin added that the staff has gone through lots of training and they all wear name tags now. She stated that she would eventually like to see the staff in uniforms. Committeeman Spears asked Mr. Mogle to elaborate on a recent complaint. Mr. Mogle stated that a woman complained about a staff member eating at the front counter. Ms. Swithin stated that there is no more eating at the front counter. She encourages the committee members to come by and see what goes on there. Mr. Mogle stated that other improvements include the signs going up, construction of the preschool so that it is not housed in the church anymore, repairs in the mechanical room, new carpet, and new flooring in the nursery. 4 I i Future items to be addressed would include a ceiling problem over the pool and other state mandated repairs to the pool such as the drains. Chairperson Munns stated that the water drip on the court could not be repaired until the weather was above 40 -50 degrees for 3 consecutive days. He wanted to be sure that the City held off payment until the repair was complete. Mr. Mogle added that he is happy with the direction of the facility. He has placed a moratorium on expenses except for essentials. There will be some fee increases and they hope to promote rentals. Additionally, he is working with Raging Waves to use the facility as their training facility. Also, there will be an environmental fair there are March 21, 2009. Discussion took place regarding the difference between resident rates and non- resident rates. Ms. Swithin stated that the gap is now 20 -30 %, which is comparable. Committeeman Spears stated that the difference is $8.00, and she feels there should be a larger gap. Ms. Swithin agreed that they should try to cater to residents within the City limits. Treasurer Powell stated that as the facility becomes more saturated, the gap should be widened. Committeeman Werderich stated that he is aware that in Hoffinan Estates, they offer more programs at a reduced rate to residents. Ms. Swithin stated that they are presently trying to determine how many members are needed to pay the bills and make a profit. This year there were a lot of 1 -time or infrequent expenses that won't be occurring , annually, which equates to approximately $25,000.00- $30,000.00. They also need to work on class structure. Director Mika stated that the analysis Mr. Mogle presented on the board indicates that the Rec Center will be profitable at year's end. This item was informational only. 11. ADM 2009 -11 Changing Positions on Committees Alderman Allen asked what procedure was in place for changing committees. Chairperson Munns stated that there is no procedure in place. Committeeman Werderich added that the Alderman will wait until after the election. Committeeman Spears asked to table the item as no information was available in order for them to discuss the matter. It was determined that the item would be removed from the agenda. Additionally, after the election, this item may be addressed through the Governing Ordinance. 13. ADM 2009 -13 School Board Representative for Park Board Alderman Allen stated that Chapter 5 states that one member of the Park Board should be from the School Board. He suggests removing this requirement. Mr. Mogle stated that the Park Board wants someone from the School Board to be on the committee. It certainly helps when there is a low turnout for the meeting and to discuss park/school development and park usage of school facilities. Committeeman Golinski feels that it is vital to have a representative from the School Board. Mr. Mogle added that the School Administrator suggests meeting 4 times per year to discuss topics of mutual concern. Mayor Burd states that the School Board not sending a representative does not make sense as the City sends 5 a representative to the Ad -Hoc Committee. Alderman Sutcliff stated that she could mention this item at the next School Board Meeting. Committeeman Golinski stated that approximately 3 1 /2 years ago, the Park Board sent a letter to Dr. Engler regarding this matter and that is when Seth became involved. It was determined that Alderman Sutcliff would discuss this item at the next School Board Meeting to see if there is any interest on their part. If not, it was suggested that the City send a letter to the School Board with a copy of the ordinance and ask them to sign off on it as it needs to be changed. This item will return to the Administration Committee in March for further discussion. 8. ADM 2009 -08 Kendall County Paratransit Commitment Chairperson Munns noted that the requested funds are now 3 times more than the City was originally advised. Committeeman Spears asked if the other communities have committed to the paratransit system and if so, at what cost. Assistant City Administrator Olson stated that Oswego and Montgomery have committed, others came back for more money, so he is unsure of their commitments. It was determined that this item would return to the next meeting for further discussion. At that time, the committee would like a list of other communities involved and a cost breakdown. Assistant City Administrator Olson stated that he believes the City of Yorkville would be the second largest match. Committeeman Golinski asked how the program works and if it is similar to a taxi service. Assistant City Administrator Olson advised that the program would be rolled out both ways, as a taxi type service and also a flexible route system with 11 different locations. It would be similar to a 24 hour subsidized taxi service. He stated that Kane County has a similar program, but he believes the usage is lower than anticipated. The service is geared toward the disabled and seniors, however, would be available to everyone. This item will return to the Administration Committee in March for further discussion. 9. ADM 2009 -09 Elected Officials Communication with Staff Committeeman Golinski stated that he asked a question of a staff member and now this has become an issue. His problem is that if he asks a staff member a question in a meeting, he expects to get an answer. Furthermore, Committeeman Golinski wants to know if there are topics that are inappropriate to discuss with staff. Mayor Burd stated that Travis is uncomfortable with politically sensitive issues. Staff should give facts or information, not politically based opinions. Mayor Burd apologized for the misunderstanding and stated that it had nothing to do with the staff being told not to talk to City Council. She simply asks that City Council members not involve staff members in political situations. Committeeman Golinski pointed out that job descriptions and the tenets of the ICMA state that staff will advise the City Council. Committeeman Spears wished 6 to note that the City Attorney was incredibly rude to the auditors. Treasurer Powell indicated he too was uncomfortable at the time. 10. ADM 2009 -10 Ward Meeting Protocol Committeeman Werderich asked if a ward meeting is conducted and both Alderman are in attendance, but then another Alderman arrives, is it now considered a Special Meeting. Mayor Burd stated that in fact it is as more than 2 Alderman are in attendance. She stated that Alderman very seldom have the opportunity to speak with their constituents, therefore, perhaps this topic should be brought back to City Council for re- consideration. The committee agreed that it's good to connect with the public. 12. ADM 2009 -12 Police Pension Actuarial Report Treasurer Powell reviewed the report and highlighted the following items: • The pension fund will be 100% funded by 2033. • There are 2 pensioners at the present time. • The actuarial report shows it is currently funded between 37.7 % - 35.6 %. • As officers are added and salary increases take effect, we can expect the tax levy to increase as the years go on. • There are problems on the pension side. Alderman Sutcliff asked if the City is still responsible for contributing if an officer leaves between 1 -5 years of employment. Treasurer Powell indicated that in that case, the employee would not be vested and they can either take their contribution or transfer it to an IRA. Alderman Sutcliff asked who manages the fund. Treasurer Powell replied that the Pension Board manages the fund, but they have an investment firm that handles the finances, there is also a legal attorney and the fund files their reports with the IPPFA. Mayor Burd stated that Metro West brought forth an agenda item to lobby not to keep increasing pension mandates. Alderman Allen asked if we could reduce the annual contribution by 3% during the tough economy, to which Treasurer Powell advised that it is state mandated. He advised separating the tax levy from the tax cap during a better economic situation. Treasurer Powell stated that the problem with the fund stems from converting from an IMRF pension to a Police Pension. Director Mika stated that the City has been increasing its contribution point and are on track to correct the problem. The City is not ignoring it. Treasurer Powell was advised to keep the committee updated as needed. This item was informational only. 14. ADM 2009 -14 Anti - Nepotism Policy Amendments Alderman Allen stated that he felt it was a good time to bring this item forth. Committeeman Golinski stated that he is not in favor of a change as it restricts too many people. Alderman Allen stated that the language would be `engage in 7 i contract or control by'. Chairperson Munns feels it needs to be fair to everyone. Committeeman Spears stated that if the policy is changed as drafted, it should also include cousins. Mayor Burd is surprised by how encompassing the policy is. Alderman Allen supports adding Ad -Hoc committees and commissions, but not cousins. Alderman Golinski feels that including all of the committees adds a lot of people. He is concerned that if 2 current employees get married, the City would have to terminate one of them. City Administrator McLaughlin stated that he is concerned about large community organizations that the City could no longer do business with. Minute Taker Hartigan stated that the City of Naperville recently adopted a new policy and suggested that the City obtain a copy for review. It was determined that the committee would consider this item for the time being and return it to the next agenda for further discussion/action. OLD BUSINESS: 1. 2008 -78 Solid Waste Facility Siting Ordinance Committeeman Werderich asked that this item be tabled until the March meeting. ADDITIONAL BUSINESS: Committeeman Werderich — None Committeeman Golinski — He received two phone calls this evening regarding Fox , Road. He suggests that the goals of the stimulus funds should include fixing that road. Additionally, he would like the details of the grant to send to residents. Committeeman Spears — She asks that the March agenda include 3 readings of ordinances with a 1 page attachment. Additionally, she asked about the status of grievances. City Administrator McLaughlin stated that they are resolved and there is nothing pending. i Chairperson Munns —None I ADJOURNMENT OF THE ADMINISTRATION COMMITTEE MEETING: With no further business to discuss, the meeting adjourned at 9:03 pm. i Minutes respectfully submitted by Margaret M. Hartigan. 8