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City Council Minutes 2011 02-26-11 special meeting UNITED CITY OF YORKVILLE SPECIAL CITY COUNCIL MEETING City Council Chambers Saturday, February 26, 2011— 9:00am The meeting was called to order at 9:10am by Mayor Valerie Burd. Roll Call by Clerk: WARD I: Werderich Absent Gilson Present WARD II: Golinski Present Plocher Present WARD III: Munns Present (left 12:30pm) Sutcliff Present WARD IV: Spears Present Teeling Present Establishment of Quorum: A quorum was established. Other City Officials in Attendance: Mayor Valerie Burd City Administrator Bart Olson Treasurer Bill Powell Finance Director Rob Fredrickson City Engineer Joe Wywrot Supt. Of Parks Scott Sleezer Public Works Director Eric Dhuse Police Chief Rich Hart City Park Designer Laura Schraw Supt. of Recreation Tim Evans Code Compliance Officer Paul Zabel Community Relations Officer Glory Spies Deputy Chief Delaney Community Development Director Krysti Barksdale -Noble Other Attendees: Chris Funkhouser Tony Scott, Kendall County Record Jill Duchnowski, Yorkville Patch Lisa Peterson Jeff Peterson Russ Walter Citizen Comments: None The Mayor gave an overview of the past years' budgets. She commented on some of the events that led to the continuing financial crisis, the layoffs in 2010, the Fund Balance over the past years, landfill litigation and other topics. With conservative budgeting, the City expects to generate additional revenue by the end of the next fiscal year and that the Fund Balance will be increased. Alderman Gilson asked to go on record as saying he thought some of the comments made were inaccurate. He also stated he did not vote in favor of the last budget and had in fact, proposed many cuts that were not accepted. For the record, Mayor Burd said she spoke in generalities and her comments did not reflect Alderman Gilson's opinions. Mr. Gilson further stated some hard budget decisions need to be made and he wants to decrease taxes and fees to residents. He asked for improved communication especially in reference to the landfill fees. Alderman Golinski said the deficit numbers changed in this budget. The Finance Director stated that it is due to adjustments in sales tax revenue. I Mr. Golinski also questioned what steps have been taken to instill confidence that there will be a surplus. Administrator Olson said the Council must vote to implement some policy decisions, staff must stay within budget and the accounting system must be fluid. He added that the City will overestimate their expenses somewhat as well. Olson also said that the year over year numbers have improved. i Minutes of the Special City Council Meeting, Saturday, February 26, 2011 Business: (discussion began at 9:33am) 1. FY 2011 -2012 Proposed Budget Mr. Olson prefaced the discussion by saying that many different sources are used for budget projections. A 3 -year budget is being developed taking into consideration long -term goals and capital projects. Some of the projects are: Rt. 47 improvements, River Oak bridge, downtown development that he hopes to fund without borrowing. He estimated that money would have to be borrowed for Game Farm Road improvements. Administrator Olson explained the new budget format and then began the review. General Fund The City currently has a $492,939 deficit for 2010. The Fund Balance is expected to grow each year through 2014, however, less than the 25% recommended in City policy. Fox Industrial TIF Fund This fund has been closed since the bond is paid off and any surplus funds will be dispersed to taxing bodies including the City at about $23,000 this year. Countryside TIF Fund The developer is in default and the bond is outstanding. In 2019 there will be no money remaining. The debt service payments are being paid from the bond proceeds. i Alderman Spears commented that TIF documents stated that the City would never be responsible for these bonds. For the record, she asked why the Council receives this misinformation that will cost the City money. Mayor Burd commented that the TIF was approved in 2005. At that time, the numerous revenue sources would cover the TIF and was also based on developers not abandoning these projects. In the future, attorneys will be asked to consider worst -case scenarios. Fox Hill TIF (pg. 78) Each year the City goes out for bids for maintenance of the common areas. Sunflower SSA (pg. 81) Mr. Olson reported the same situation as for Fox Hill, however, there is a pond to maintain in this subdivision. A one -year levy may be required for pond dredging. Debt Service Fund (pg. 84) Mr. Olson recommended, going forward, that the City not abate this debt service fund in order to pay for the Rt. 47 and bridge improvement. Money will need to be borrowed for Game Farm Road improvements. Alderman Sutcliff commented that the City should not delay this, however, Olson said the City could not secure a loan at this time. Public Works Director Dhuse had previously suggested that the City purchase a paving machine and do the necessary work. This will be discussed in a future meeting. Municipal Building Fund (pg. 87) The City received $22,000 this year from Pulte as payment for a subdivision obligation. No new annexation agreements are currently on the table. Parks and Recreation Capital Fund (pg. 90) Any future impact fees received will be transferred from this fund to the Public Works Capital Fund towards debt service on the building shared by Public Works and Parks. Olson commented briefly on money earmarked for a park site in Raintree. The money was originally received from Lennar Builders and is being held in a separate bank account. I Police Capital Fund (Pg. 93 & 95) The budget will allow one new car purchase per year. It was noted that the replacement schedule is not being following due to budgetary constraints and that cars are not being purchased until another breaks down. More money is being spent on maintenance costs, however, Olson said that by not replacing cars, money is being 2 Minutes of the Special City Council Meeting, Saturday, February 26, 2011 saved. Spears asked if this should be a Council decision and asked to have it re- addressed. An informal poll was taken of the Council members and after discussion, it was decided to allow the Police Department to make the decision about repairing or replacing. This decision will be reviewed next year. Chief Hart stated that the department has 23 cars at this time and that half the fleet is past the rotation time. The current cost of replacing a squad is $20,000 for the car and $20,000 for equipment per car according to Administrator Olson. Olson said he has data that shows individual car maintenance. A memo will be sent to all Council members. Alderman Spears asked for a maintenance comparison of Public Works vehicles. Public Works Capital (pg. 96) Impact fees will be coming in and according to Olson, the primary expense in this budget is the purchase of the building shared with Parks. Debt service is $82,000 per year. The Fund will be depleted by the end of next year without a transfer from the General Fund. Administrator Olson said the policy question is whether the money should be repaid as a loan or if the General Fund should subsidize Public Works budget. Mayor Burd took an informal poll of the Council members and the consensus was that the amount should be shown as a loan. The money will be paid back proportionally and will be shown as a loan and negative Fund Balance. Library Fund (Pg. 1171 The City has no authority to change this budget that has already been approved by the Library Board. They have approved their 2011 -2012 budget and will approve their 2012 -2013 and 2013 -2014 budgets in March. Olson said he issued a memo to them about deficit spending. Mayor Burd added that the Library Board informs the City of their projected levy by April to include the levy in the City budget. MFT Budget (Pg. 57) The City will receive $350,000 additional from the State over 3 fiscal years. It is proposed to transfer money from the General Fund in FY 2013 -2014 to use on the River Road bridge and Rte. 47 repair. Bart said that MFT payments are based partially on populations, he explained how payments are made to municipalities and explained MFT - eligible purchases for road repairs. Downtown TIF (pg. 75) Mr. Olson said many buildings have been torn down and some projects are committed to be done. Rt. 47 improvements, sidewalk and street light improvements are some of those projects. The current TIF fund has about $500,000 that is co- mingled in the General Fund. However, it can only be spent on certain things. Mayor Burd asked if it should be co- mingled. Mr. Olson said it is OK to do this from an accounting standpoint and it is budgetarily tracked. Olson also said, additional interest costs could be incurred to borrow funds for departments operating in deficit. The TIF money will not be spent until there is a positive Fund Balance in the General Fund. C y Wide Capital Fund Project (pg. 99) Grant reimbursements and road contribution fees were discussed. Bart said money would be kept in the general fund for Planning & Building/Zoning salaries only and other funds would be transferred to a city -wide capital fund. Permits & fees have been decreased from last year. He noted that next year is the final payment for the Clark property. No Rt. 47 expenses are in this category. Alderman Teeling asked about the Safe Route to School Grant and asked if it could be placed on the developer punchlist. This cannot be done. Land Cash (pg. 66) All expenses and revenue in Land Cash are related to grant projects. A portion of these funds pertain to salaries. IDNR recently opened a grant program, but the time frame for submission was very soon. Municipalities were told to submit materials 3 Minutes of the Special City Council Meeting, Saturday, February 26 2011 they had. Public Hearings are also required. This will come to City Council on March 8 and the Hearing is on March 10. The City's application will be for trails. If awarded, it is a 2 -year grant and there will be no impact to land cash. Alderman Golinski noted he does not approve of salaries taken from land cash and asked for justification. The meeting paused at 11:35 and resumed at 12:33pm. Parks & Recreation (pg. 60) This budget is formalizing what has occurred in the last 2 years. Mr. Olson is proposing no fund balance until the City General Fund increases 15 -25% and then returning to a budgeting process. Programs will be added and he hopes for 30% profit margin on each class. He discussed revenue that is received from a cell phone tower located in one of the parks. Alderman Gilson commented that the revenue should be placed in the General Fund, not in Parks and Rea Mr. Olson had decreased the fund transfer from General Fund because of this. Alderman Spears questioned why the cell tower fees would be treated differently than adjudication funds that are placed in the General Fund. Mr. Olson answered that the Police Department is paid from the General Fund while the Parks & Rec has funding from programs. Alderman Gilson suggested that changes should be made and the cell tower funds should be placed in the General Fund. Proposals made for next year are: no furloughs and that a small increase be made for the IT department. Mr. Olson also said that City should join a consortium with other towns and share GIS personnel. IT services will be used as needed and spending will be monitored. Cell phones for Park personnel were also discussed and Alderman Gilson commented that he did not think all the phones were needed. Administrator Olson said that cell phones will become necessary in the future and will actually save money. Alderman Gilson suggested cuts to contract services and program instructors. He also said money for hand tools should be decreased. Alderman Plocher suggested cutting trees and flowers by $500. It was noted that there are now 42 parks with only 15 in 2000. The Parks Department is maintaining 270 acres and 50 locations. The Parks Department also maintains boulevards. Mayor Burd said it is important to keep the community attractive. In the Recreation portion of the budget, Mr. Olson noted that the Superintendent of Parks position will not be filled. Insurance for Hometown Days was discussed. The insurance would guarantee generating a certain amount of money. A recommendation was made to delete the "publishing" from Recreation, however, this money is for printing the class offerings. Mr. Olson said that most participants get their information from these printed programs. Alderman Spears said there was a suggestion in the public that aldermen had said recreational programs should be cut, however, she said that is not true. She wanted that clarified. Recreation Center (pg. 113) Mr. Olson noted that the surplus is covering the deficit in Parks and Rea It is not shown in the budget at this time. He said the deficit will be $80,000 due to taxes and an increase in the lease. The lease is being re- negotiated, however, an appraisal is needed due to decreased property values. Replacing the HVAC system is also needed at a cost of about $30,000, however, it is not clear who pays for it. Grant programs were discussed in conjunction with the building, however, City ownership might be required. This would be a policy decision and will be discussed at a Council meeting. Audited memberships and all other fees generated $574,000, however, projections showed $582,000. Gilson suggested not doing the upgrades and let the lease expire, however, Mayor Burd said the City has a contract for repairs. Other repair costs 4 Minutes of the Special City Council Meeting, Saturday, February 26, 2011 were discussed also. Mayor Burd said many people pass through that building each year, more than the Parks and Rec building and that it serves the public's need for recreation. Gilson replied that it is not self - sustaining as represented nor is it generating enough revenue. He said it will be in deficit for several years. For the record, Alderman Spears stated that she did not support a bond for a community center or a new police building, as earlier stated in the meeting. She said this subject was discussed when she was chairman of the Administration committee. She further clarified that the community center would have been for both seniors and youth. Also for the record, Alderman Golinski stated that he did not assist in the Rec Center negotiations. He said he attended an Executive Session, but did not negotiate. General Fund (Pg. 26) Mr. Olson predicted a surplus of $765,000 next year and a surplus thereafter. This year the Police Pension was broken out separately in order to levy for contributions and to insure the actuarial plan is being planned. Fox Industrial TIF will generate money this budget year. The decrease in traffic fines and legal expense reimbursement were also discussed. Administration (pg. 30) All departments have a full year of salary budgeted for employees. Training money was allocated, but Alderman Spears did not favor money for training in view of the poor economy. This department e showed a high cost of postage, Bart Olson said all postage p g p g> e p g expense was shown in this category. Gilson questioned what would happen if Metra West fees were not paid. Olson said the City would not reap the benefit of lobbying and the value received outweighs the fees in his opinion. Alderman Sutcliff said it has been 2 years since staff has attended conferences and feels it would be beneficial for the City. Bart will provide a breakdown of training issues. Finance (pg. 34) Auditing services were decreased and the auditor contract will be expiring. Alderman Golinski questioned what the City pays for auditors and said that other cities pay much less. It is expected the City will save money in the next budget year. Previous reconciliations had to be done to revise the books and increased auditing fees resulted. Community Relations The full time employee was reduced to part time. Holiday Under the Stars will not be shown in the budget and sponsorship money will be used for expenses and handled on a balance sheet level. Most employees who work the event work flex time. Mr. Gilson recommended cutting this department until the City is solvent, however, Alderman Teeling said this department sends out vital information to the residents. Ms. Spears said she felt the Aldermen can distribute information to their ward. Alderman Sutcliff also defended the department saying the Community Relations Officer disseminates information on line and sends e- blasts. Events planned by this department attract people who spend money in the City. Mayor Burd took an informal poll of the Council members and the majority recommended retaining this department. Engineering (pg 37) Mr. Olson said there are fewer staff members. The increase in computer software will allow the department to replace outdated equipment. The Engineering Tech also performs JULIE and sewer locates. Police Department (pg. 39/41) Mr. Olson said there were some corrections on this budget. Alderman Plocher asked if the school system could help pay for crossing guards and the resource officer. The inter- governmental agreement covers this according to Mr. Olson. Services provided by the City should roughly equal those provided by the school, however, he said the City costs are usually greater. There was also discussion of refurbishing the track and 5 Minutes of the Special City Council Meeting, Saturday, February 26, 2011 parking lot. Alderman Spears said she supports the Public Works and Police Department and the City should concentrate on keeping them maintained accordingly. She stated the Police Department is short- staffed. To help in that area she tried to establish a Neighborhood Watch due to short - staffing. She added that the officers have not had raises in 3 years. Ticket revenue has also decreased. Mr. Olson said the training items were mandatory. Mayor Burd said the police received pay raises due to their - contract, but did not have furloughs. Chief Hart said hiring has stopped at this time due to lack of grants and growth The Police Department now has about 28% of the budget. Alderman Spears said, by comparison other towns have a higher amount, averaging around 50 %. Mr. Olson asked the City to refrain from adding officers until the City can afford them. Community Development (Pg. 44) There are fewer staff members and a reduction was made in computer equipment. The overall budget is 16% less than last year. Krysti Barksdale -Noble also gave a brief overview of the department. Administrator Olson added this will be the first department to expand when growth resumes. Public Works (pg. 46) Mosquito spraying was a sizeable expense in the 2010 budget, but it is proposed to not spray in the next couple years. Overtime also decreased. The training included in the budget is mandatory according to Director Eric Dhuse. His department is also doing more of their own equipment repairs. Administrative Services (pg. 49) The sales tax rebate was increased based on trends. Bad debt is being shown in the budget as well. Also reflected is a large increase in health insurance and Cobra costs. At this time, the Mayor suggested adjourning the meeting due to the lateness of the day. The remainder of the budget will be discussed on March 8 A motion was made by Diane Teeling to adjourn and seconded by Robyn Sutcliff. The meeting adjourned at 4:19pm. Minutes respectfully submitted by Marlys Young 6 C°,® United City of Yorkville AL 'I` 800 Game Farm Road ,ass Yorkville, Illinois 60560 � ®; Telephone: 630-553-4350 ® 5� ® Fax: 630-553-7575 � �w E PLEASE SIGN IN MEETING: `7'e0E DATE: -2- 2 NAME COMPANY PHONE NUMBER biz �v ­vo s