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Admin Committee Minutes 2000 08-08-00 i UNITED CITY OF YORKVILLE ADMINISTRATION COMMITTEE MEETING AUGUST 8, 2000 6:30 P.M. In Attendance: Mike Anderson Art Prochaska Rose Spears Richard Sticka Jim Nanninga Kevin. McKenna Bob Allen i FINANCING OF BLACKBERRY CREED EXTENSION Mr. Kevin McKenna from Spears Financial discussed the issue of alternate revenue bonds, stating that we could pass it in September or October, and then publish it, in which after 30 days sell the bonds if the market is doing o.k. He also stated it is a straightforward project. There are two bond rating companies in Chicago, and North Aurora, Aurora, Elgin, Oak Park, and others worked out well. We need to show them the potential. Going out and seeing it is better than viewing it on paper. We will receive the money in approximately 60 -75 days, or on average 75 days for the whole process. Mr. Nanninga stated that there would be a meeting Tuesday, and then asked if you recommend to borrow the money. Mr. McKenna stated yes, that the schedule shows an average cost of 5.$, and today it is 5.6 or 5.7, in which 6.5 is the going rate. You can earn 3/4% legally. Mr. McKenna then asked if it was one building season. I i Mr. Nanninga stated yes. Mr. McKenna stated that it was reasonable, and to publish in August or September. Hold the money for 6 months, and make $5,000 to 10,000, investing in the 6% range. Mayor Prochaska asked if it should be done prior to the election. Mr. McKenna stated he was unsure, and that the job is to keep the economy going, so not to be negative. Everyone says something different. There might be a rate increase, so get everything lined up in October or November. Mayor Prochaska stated we are not doing anything until Menards breaks ground. Then Ave will start the process. IVienards will be running in fall. Mayor Prochaska then asked about the alternate revenue bonds with regards to the sales tax. 1 Mayor Prochaska stated that we'd look at the schedule on construction, and then asked where are we taking it to. Mr. Nanninga stated route 47 and Countryside. He then stated that there was a meeting on Tuesday to set up the schedule. Mayor Prochaska then stated that we need to give them an elevation day. Mr. Nanninga agreed, and then stated that there has been a business growth of 7 %, which is conservative. Mayor Prochaska asked what does this do. Mr. McKenna stated nothing, that the alternate bonds don't count—they are from non- property tax. This is neutral. 'Mr. Sticka asked what if you had to use some. Mr. McKenna stated even if a dollar was used, then it goes on the taxes. He then gave examples of this. He stated that there is no way to get out of it. Mayor Prochaska stated to Tim that you go and check about the sales tax as covering any debts. We have to be careful about this. We want to be sure we are not pledging the same dollars. Mr. Nanninga agreed. Mr. McKenna stated that on the first issue, the pledge is 125% in debt service based on the audit. If next year carne in with others, you cannot pledge it again. You can only pledge the difference. Mayor Prochaska agreed, and stated that we don't want to double - pledge it. Mr. McKenna stated call the bond council and ask them to draft it up. Give them a project description. This is a practical matter to show them in October. Mr. Nanninga agreed. Chairman Anderson asked if it should go to COW. Mayor Prochaska stated yes, and then asked if Mr. McKenna was available. Mr. McKenna stated he would see who could be available for this. Alderman Sticka asked if the referendum would be brought up again. 2 Mr. McKenna stilted that it was 7 '/i% of the voters. Alderman Sticks stated that this could pose a problem. Mr. McKenna then discussed the alternate revenue bonds again, stated that we can borrow earlier so you can invest it. Mr. Nanninga stated that our biggest cash was from Menards and F.E. Wheaton. He then stated that businesses would grow and pop up, and he is anticipating a small steady growth, on average 5% per year. F.E. Wheaton has a 27% growth each year. We projected 10 years where we'd be in revenue. We'll see what it does with the debt services. It should stabilize at 9 %. We can afford that. Alderman Sticks asked if it would be only with sales tax. Mr. Nanninga stated that it could be done that way. Alderman Sticka asked again if it could be nothing but the sales tax to pay off the debt. Mr. Nanninga stated ,yes, with no fees, etc. Alderman Sticka asked if there was any growth in property tax that could be used for others. Mr. Nanninga stated yes. Mayor Prochaska stated that it creates an alternate revenue bond. It doesn't count against j the city's borrowing capacity. We'll see how it works before we take the loan. i Alderman Sticka asked how do you show revenue prior to this year for Menards. Mr. Nanninga stated he would have to look at it. Alderwoman Spears stated that the chart was accurate. Alderman Sticka then discussed the graph. Mr. Nanninga then stated that on the graph, Menards and F.E. Wheaton were switched. Mayor Prochaska stated that we should bring it to COW. Mr. Nanninga and Mr. McKenna agreed. CITY VEHICLE POLICY Mr. Nanninga stated Mr. Graff does not have a policy. 3 Chairman Anderson asked if the department heads should establish it. Mayor Prochaska talked about a `general' policy, and that there were special issues with the police, being that they could be called out at any time. Chairman Anderson stated yes, the police chief and the city administrator. Mayor Prochaska stated the difference, though, is that the police are considered `on call' 24 hours a day. How do we log it? There needs to be tracking. Items come up like seatbelts, smoking, etc. Chairman Anderson stated they should obey all applicable laws for Illinois. Mayor Prochaska stated these are things to look into. Alderman Sticka asked is there anything in Kendall County. Chairman Anderson stated yeas, and there would be a copy at the next meeting. Alderman Sticka asked if we could show the police this. Chairman Anderson stated yes. Mayor Prochaska stated this is for working hours, too. Sue includes a `trip' form. This is good for tracking vehicles. Chairman Anderson stated it would be good for Public Works, also. Mayor Prochaska stated we have to look at this. Maybe a daily log on the vehicle —the police already do this. We should have separate policies for other workers. Chairman Anderson stated yes, and that we should put it on the agenda again. i Alderwoman Spears asked if we could review and comment on this next month. Chairman Anderson stated yes. Mayor Prochaska stated that he would discuss it and have an opinion from Dan Kramer. We don't want it to conflict with the insurance policy. Alderwoman Spears asked about the criteria for the parks and recreation department—if `high risk' employees take course, who would pay. Mayor Prochaska stated this is a good question, and that the vehicle policy here should be strictly `city vehicle'. 4 Alderwoman Spears agreed. Mayor Prochaska stated there are two issues —legal issues, and policies for treatment of the vehicles. Mr. Nanninga stated there should be additional first aid kits, fire extinguishers, and flares for the public works. Alderwoman Spears agreed. Chairman Anderson asked if the public works had anything in place on this. Mr. Nanninga stated Mike Price keeps track of the vehicles, and most of the vehicles are assigned. Mayor Prochaska stated that we need a `daily report' for the vehicles like public works, and also a policy for allowing things like passengers, etc. Chairman Anderson stated that there should be no `personal business' outside the city limits. There are gray areas here. Mayor Prochaska stated there are state laws regulating this also. If we can find models, that would be good. Chairman Anderson stated DAL, has something for this. We will bring it back next month. ADDITIONAL BUSINESS Alderman Sticka stated he had a question on Mr. Nanninga's chart. Igo we figure in the rebates from Menards. Mr. Nanninga stated yes, we'd get the full amount in 2006. I did it net. Alderman Sticka asked could it be better. Mr. Nanninga stated yes. Alderman Sticka then asked about the utility tax. Mr. Nanninga stated that it was not on the chart, only sales. Alderman Spears asked what about the gift ban act, stating that Ground Effects requested a City Flag. Should we bring it to COW. I I I Mayor Prochaska stated that it was an identity with the City, and that it is not really a problem.. Alderwoman Spears stated that everyone agreed on the police patch. Chairman Anderson asked if it never got to the committee. Alderwoman Spears asked if we have room to put up a pole at the City Hall. Mr. Nanninga stated that we need another pole, and stated that Verne Henne has a source of poles. Mayor Prochaska stated we should get the updated numbers. Alderwoman Spears stated is there interest on this, and interest for other business. We will bring it back to the next meeting. Meeting Adjourned 7:50 p.m. Minutes by Lisa Sleezer I 6