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Administration Minutes 2011 07-21-11 APPROVED W/ CORRECTIONS 8/18/11 UNITED CITY OF YORKVILLE ADMINISTRATION COMMITTEE Thursday, July 21, 2011 City Hall Conference Room COMMITTEE MEMBERS PRESENT: Alderman Spears, Chair Alderman Colosimo Alderman Munns Alderman Gilson Mayor Golinski OTHER CITY OFFICALS PRESENT: City Administrator, Bart Olson Treasurer, Bill Powell Finance Director, Rob Frederickson Laura Schraw, Interim Parks Director Tim Evans, Superintendent of Recreation Scott Sleezer, Superintendent of Parks CITIZENS: Tony Scott, The Record Anne Englehardt, City of Yorkville Green Committee Member Marta Keane, City of Yorkville Green Committee Member Citizens Comments: Anne Englehardt and Marta Keane from the Yorkville Green Committee came to address the garbage/recycle issue. Marta Keane wanted to address the solid waste contract. She stated that different citizens have attended their meetings asking for different things to be done regarding the waste. Anne Englehardt stated that the Green Committee has been together for four years. She stated that their mission is to get the citizens and community to become more environmentally friendly. Anne said that they would like to encourage more recycling and reduce the amount of garbage. She stated that they could offer rewards for more recycling. Anne said that lower prices for less waste would be an incentive. Anne stated that this would help seniors because they don't create as much waste. They would like to keep a weekly service. Marta said that a modified volume system has become more popular. Marta said that a volume based system has been in use for a long time in St. Charles, Batavia and Geneva. It creates an incentive. Marta stated that you pay per bag with a tag if you generate more, you pay more, if less, you pay less. You can still put out as much recycling as you want to. She stated that Aurora also uses this system. There is also a revenue on recycling that can be looked at. Marta stated that recycling markets have been going up and doing well. The metal and plastics are doing well. Some communities are getting revenues for their recycling. Mayor Golinski asked what the names of different carriers are that offer the recycling incentives. Alderman Colosimo asked how the homeowners are being rewarded for recycling. Marta stated that however much recycling the hauler Administration Committee July 21, 2011 Page 2 of 8 takes, the city would get a percentage of that. Bart Olson stated that we do technically have a modified volume based program. It is set so there is not much of an incentive, you can put out one large item and the 64 gallon can. Anne stated that they used to have five kids at home, but now that is just her and her husband, they only have one bag of garbage per week and not anywhere near what they used to have. She stated that they still continue to pay the same amount as they did before. She stated that she is helping to pay for others garbage that is going into landfills. She stated that she would like to encourage others to recycle more. Anne stated that if she could at least have a smaller can and pay a bit more, that would be an option. Scott Sleezer stated that the current vendor does provide totes for the parks for recycling. He stated that they tip them onsite for the city. He stated that at other special events they will bring in extra totes for recycling. Scott stated that they have been great to work with and helpful. Marta stated that it is not in the agreement as a formal obligation. Anne stated that we are not getting behind a particular waste hauler. She said they just want to look at the big picture for the future. The Green Committee is looking for improvements. Anne stated that when we were invited to be part of this group, anything environmentally related that the city wants information about, they are there to lend a hand in an area they are very interested in. Minutes for Correction/Approval: There were a few grammatical corrections to the minutes. The minutes as corrected from the June 16, 2011 meeting were approved. New Business: 1. ADM 2011-31 Monthly Budget Report for June 2011 Rob Frederickson went over the budget report. On the expenditures side he stated there is a list below. Rob stated that it is still early in the fiscal year. Bill Powell stated that last year for real estate taxes we received six distributions. Bill stated that the ones that are currently due will be the large ones and the others will trickle in. Alderman Spears asked about the police pension. Bill Powell stated that it depends when the real estate taxes are paid. Bill said the money goes directly from the county to the police pension. Alderman Spears asked if we are keeping up with the pension. Bart Olson said that nothing has changed and they are on track with what the city planned to do. Alderman Colosimo asked about the percentages. Bill Powell said that when we first formed in 2001 because of the change in the IMRF, the funding is different. Bart Olson stated that we have a young staff and few retired. Alderman Colosimo stated that we have to plan for the future. Bill stated that we are in deficit from what the officers put in as contributions and we are having to dip in from real estate to fund pensions at this point. Alderman Colosimo asked how to make up the 70% we are under, what is the number that would make that up. Bill Powell stated that they study it each year and presently the last one was around $500,000 that was suggested for funding and we are funding $375,000. Bart Olson said that the difference is a phase in period and then you are required to kick that up. The difference is 33% to 40%. Bill Powell stated that theoretically you should be 100% funded after 40 years and they are talking about extending that. Bart Olson said that we should be 100% by 2043. Bart Olson said the solution would be to levy a higher amount. Bill Powell stated that at one time they were looking at pulling out of the city's tax levy. Bart Olson said that he believes that has to be done by referendum. The aldermen had a discussion about different things in the budget seeking clarification on some items. Alderman Administration Committee July 21, 2011 Page 3 of 8 Gilson stated that we should revise the budget and take out community relations. There was a discussion on doing that or not. Alderman Gilson asked about River Road Bridge, Julie and Repair and Maintenance in the budget and if they anticipate staying within budget. 2.ADM 2011-32 Monthly Treasurer's Report for June 2011 Bill Powell stated that they still don't have their audit done so there is no beginning or ending balance. June revenues were $4,004,876 and the June expenses were $2,105,641. 3. ADM 2011-33 Cash Statement for May 2011 Rob Frederickson stated that this is just an informational item. 4. CC 2011-48 City Debt Obligations and Options – Refinancing Bart Olson stated there are a couple charts in the committee packets. The last meeting the committee asked Bart to itemize what the gap between what the financing payment is each year and what the city would be collecting in non sales taxes that could be dedicated toward roads. The other chart is what the city would be looking at tax rate wise if the city refinances, versus if they do not. He stated that yes it can decrease from year to year, but after that they increase slightly each year and five years from now they go up again, if we haven't gotten on our feet again. Bart Olson said that he is recommending refinancing. Alderman Colosimo asked about the details of the refinancing and how much the property taxes are going to be reduced. Bill Powell stated that we kept the taxes too low for too long and did not exercise the tax cap which has a compounding effect over years. Bart Olson stated that the past four years, we have exercised tax cap, so we will not have that issue again. Alderman Gilson asked if we can put this information in a press release so that the people can see it. Alderman Gilson stated that those who wanted the sales tax wanted property tax relief and that is why they voted for it, but he stated that the only way that will work is if the city does refinance. Bart Olson stated that there is relief each year thereafter compared to where we are right now if the city doesn't refinance. Alderman Gilson asked if we decide not to refinance and dedicate surplus toward repayments could we accomplish the same thing? Bart stated yes. Alderman Munns stated that there is no money for roads or anything else if we do that. The aldermen discussed maybe scheduling a meeting to discuss this with the public. Alderman Gilson stated that he would like to reach more than the few that would attend the meeting. Alderman Gilson said that he wants the people to really understand what is going on. Bart Olson stated that he doesn't think he will be able to adequately explain all of this information in a press release. Alderman Colosimo stated that he too is worried about the same thing and he stated that is why we were elected by the people and we have to make the decision. Alderman Colosimo said that we cannot go five more years without putting money toward roads. Alderman Gilson said that is why he would like to ask the people if they want the roads or want us to put all surplus toward debts. Mayor Golinski stated that the deadline is coming up soon, so a decision needs to be made. Alderman Munns said that we need to have a black and white plan for refinancing, and decide where the money is actually going and be detailed in the planning. Mayor Golinski stated that the sales tax was put through to provide a property tax relief. Mayor Golinski stated that he believes that the refinancing is Administration Committee July 21, 2011 Page 4 of 8 the way to go. Alderman Gilson stated that is okay, if we stay conservative. Alderman Colosimo said that not refinancing is really not an option at this point. He stated that we should have a nice steady step down in property taxes to get back to where we were. The aldermen discussed the future of the city and what will be coming up and how refinancing benefits the city. Alderman Munns asked about road money and how to allocate it so that all of the parts of the city will benefit. Mayor Golinski stated that yes, a maintenance schedule can be done by a third party and decide what roads are in the worst shape and make a schedule so that the citizens can see the progress. Bart Olson stated that $350,000 to $400,000 per year would be budgeted for roads and resurfacing. The aldermen suggested that 15 years is the longest time that they would want to refinance. The aldermen agreed that refinancing for 15 years sounds like the right decision. The recommendation will now go to city council. 5. ADM 2011-34 Home Rule – Discussion Bart Olson explained that home rule is additional authority under the state constitution the city can only do things the state allows us to do. If you are home rule, you can do anything that the state doesn't allow and it creates a lot more flexibility. Generally, it is seen as a good thing as far as managing the city like creating landlord ordinances and gives flexibility to decrease taxes. For example, if we wanted to implement a gas tax to collect tax from out of town people that can reduce the property tax burden. For home rule to be put into place, it is put on a referendum. Alderman Colosimo stated that he likes the idea as long as we are responsible with the money. He stated that they do not want to raise taxes, but 10 years from now, he doesn't know if in the future others will want the same. The aldermen discussed that the idea of putting less of a tax burden on the city's citizens is a good idea. Mayor Golinski stated that he likes the idea for the self government aspect. He stated right now we are mandated on how to use our hotel taxes. Mayor Golinski said that the people will ultimately decide. The aldermen discussed the good and bad to home rule. Mayor Golinski stated that the council can put more restrictions into place with home rule. Bart Olson stated that we can change speed limits and have landlord rules if we are home rule. Bart Olson stated that if the aldermen wanted this on the st March primary we would have to decide by January 31. Alderman Gilson said that 10% of Illinois municipalities are home rule. He asked if there is no drawback, then why aren't more cities home rule. Bart Olson stated that most cities are under 25,000. Alderman Gilson said that if it was all positive more cities would be doing this. Bart Olson stated that there is a fair amount of outreach that needs to occur for it to be put on the referendum. Alderman Munns stated that a pro and con list needs to be put out there for the citizens to decide. The aldermen reviewed the packet of information and discussed different pros and cons of home rule. Alderman Gilson stated that he would like to hear the opinions of the residents on this topic. Mayor Golinski stated that ultimately the voters will decide on this issue. The aldermen discussed that we should look at this topic, but we need to wait and do what the people voted them in to do, lower taxes and be responsible with the funds etc. and earn the trust of the residents. 6. ADM 2011-35 City Intern Discussion Alderman Spears stated that this was her idea. She feels that it could really assist public works for weed complaints and inspections. The aldermen discussed that there are a lot of tickets that have to Administration Committee July 21, 2011 Page 5 of 8 be issued for weed violations and it takes a lot of time and an intern could be a big help in that area. This would be a seasonal position. The aldermen stated that they want this intern to spend 30 hours a week being proactive at going out to neighborhoods and document violators and then issue the tickets. Bart Olson stated that he will get this position posted immediately. 7.ADM 2011-36 Library Impact Fee Ordinance Alderman Colosimo stated that this topic is a revision of the impact fee. The library wanted more flexibility as to how they use the money. They have around $293,000 sitting in a fund. They would love to buy books, or new technology. The way this ordinance is written, they cannot use this money for anything but brick and mortar. Alderman Gilson asked if they are trying to stockpile money to form a positive budget to form a district. Alderman Gilson stated that he wants to make sure that they are using this money for books and technology. Alderman Munns asked if we can lower the impact fee from $500 to $400. Alderman Munns stated that we could lower the fee to make it better for businesses that come to Yorkville. The aldermen wanted Alderman Colosimo to go back to the library board and ask them where they really want the money to go they are asking for. Old Business: 1. CC 2011-71 Ordinance Approving the Revision of the 2011-2012 Fiscal Budget Rob Frederickson stated that there are five amended budgets to look at. Bart Olson and Rob Frederickson stated that the Library Board decided to break into three different funds. There are operational issues now that it has been split up. The aldermen discussed that when the library budget was combined it was difficult to see where the money was being spent it didn't show the true costs. Alderman Munns asked about the library employees and discussed that there are a lot of janitors and clerks. Bart Olson stated that they have cut back since going over the budget. Alderman Gilson asked about taking public relations out of the budget and using that money for something that might be needed such as paying for the intern position. Alderman Spears suggested maybe creating a fund to send out surveys. Bart Olson stated that it also could be put toward training. Alderman Colosimo stated that we can do surveys online instead, which saves a ton of money. The alderman discussed doing a monthly question online. Alderman Gilson stated that we should put it toward contingencies, so we can use it for whatever is needed. He stated that it doesn't mean we have to spend it. The aldermen discussed putting a code on the water bill that is sent out to citizens and then each household gets one vote per survey. Bart Olson stated that what item wants approval is the difference between the fiscal year 2012 adopted column and the fiscal year 2012 amended column. He stated that in parks none of those have changed. We are not asking for any additional funds. Alderman Gilson stated that he still had questions about different items in the Rec budget. There was a discussion breaking down different items in the Rec budget to clarify how money is being spent. Alderman Gilson stated that he wants to make sure that we are running a positive budget and we might have to make more cuts to do that. Bart Olson stated that in a big picture policy the message has been clear that if we have extra money in certain areas, if it doesn't need to be spent, do not spend it. Alderman Gilson stated that the ward is putting their trust in him to make sure that is how things are being run. Scott Sleezer stated that he doesn't operate that way and he has been under budget every year. Administration Committee July 21, 2011 Page 6 of 8 Alderman Gilson asked about some details on the Rec Center budget and where funds are being spent and why. Tim Evans stated that those costs are being offset with revenues. Tim stated that they have expanded their preschool and were in need of another person to work part-time. Tim stated that staff needs to update their certifications. Tim stated that they need to get another person certified for food handling besides himself. There is a cost for those things. Alderman Spears asked what things are included in the budget for Hometown Days. Tim Evans and Scott Sleezer went through and explained what that entails and they have sponsorship and they charge admissions etc. Vendors help pay for the costs of the festival. Alderman Spears asked for a breakdown of costs to get to the citizens. Bart Olson stated that there were only two changes in Rec Center. One was on revenue side because prices increased on some of the membership classes and that was offset by an increase in staff hours at the front desk, so that it was better staffed. The Park Board voted on that back in April. Alderman Spears asked if the Park Board votes on something, do we have the authority to deny it? Bart Olson stated that is correct. Alderman Colosimo and Alderman Munns asked why is it that Park Board can still sign checks. The aldermen discussed the fact that the bill list needs to be integrated back into one big central billing. The aldermen stated that they are responsible for that money and would rather have better control. Alderman Gilson stated that the trend for the Rec Center is losing money and it has to change. Alderman Gilson went through the budget and discussed different areas where they have lost money consistently. Alderman Gilson stated that they need to start cutting the Rec Center. Tim Evans stated that they have made a lot of changes in cutting into this deficit and are addressing these issues. Alderman Gilson stated that he knows they are trying, but he doesn't believe that it can be done. Bart Olson pointed out that Tim had last year’s deficit down to $67,000. Bart Olson stated that they have not been authorized to use any money from the general fund. Bart stated that Parks and Rec has one bank account and they have been able to operate enough on the surplus side under Parks and Rec from a cash flow perspective to offset any deficit. Bart stated that ff you wanted to combine the two budgets you would be at zero between Parks and Rec and the Rec Center. You have chosen to separate them so you could see how much the Rec Center operates. Bart stated that they have not said it is okay to run a deficit. Then each year it rolls into a debt. Alderman Munns stated that the deficit keeps going up. Alderman Gilson stated that it is projected through 2014 to be a deficit. Alderman Gilson stated that he believes they were elected to see where dollars are being spent and we need to be conservative and cut things that are not operating correctly. Alderman Munns stated that things should be leveling out. The aldermen agree that this needs to be addressed. Alderman Spears stated that Parks money is going into the Rec Center. She stated that she would like to eliminate the Rec Center and put that money into Parks. Bart Olson stated that if you get rid of Rec Center it will not have an impact on budgets on Parks and Recreation Department, general fund or land cash fund. If there is a surplus, it is budgetary and offsetting the negative Rec Center on paper. Alderman Gilson stated that the council has already made a policy decision and tonight we are looking at raw data and there is a loss. He stated that if we don't start peeling back what we see here, we are not doing what our constituents want us to do. Bart stated that Tim has cut the budgetary deficit and he thinks he can do it again. Bart Olson stated that he doesn't want them to act too soon. The aldermen asked then when do they take action? The aldermen don't think that it is going to change. Alderman Gilson asked do you think that by 2014 the Rec will be self sustaining. Tim Evans said it depends on what we do with renegotiating the lease, he thinks it could be done. Alderman Gilson Administration Committee July 21, 2011 Page 7 of 8 stated that is a hope. Alderman Colosimo stated that we have made it clear we are not renewing the lease. Alderman Gilson said this was originally sold to the community as a money maker and it is not doing that. Tim stated that the membership is continuing to rise. Alderman Gilson stated that by December they have to make a decision. Tim stated that by December you will know more on the numbers and what to do to make this work. Alderman Colosimo stated that the Rec Center has been nursed for four years and we have to make a decision on the past history. Tim Evans stated that by October we would have a better idea of what the numbers will need to be to break even. Alderman Gilson stated that no matter what we negotiate, we will still be in a deficit by the time we have to make a decision on lease renewal. Alderman Colosimo stated that renewing the lease is not an option. Alderman Colosimo asked if we leave the budget the same what happens. Bart Olson stated that we will have to cut back on some part-time hours and underestimating the membership fees. Alderman Colosimo stated that he agrees with waiting until December and seeing if the Walkers renegotiate. Bart stated that instead of ratifying the Rec Center budget do the Library, the Parks and Rec and you can have Tim go back and do a inter revised budget. He has three extra months since April of what his costs are going to be and get you a better idea and in a month give you more clarity where he is going to be. Bart Olson stated that the staff was not prepared tonight for this level of revision to a budget. The purpose of this item was that Park Board threw a technicality, so this budget didn't get approved. Bart stated give him some time to work on this. Alderman Colosimo stated that the other budgets can be approved tonight, but not this one. Tim Evans stated that for an informed decision down the road, we have seen that being combined as one staff there in one building, we have seen a dramatic increase in our 79 budget. Tim stated that we have been able to expand in that one facility and the membership is increasing. The aldermen suggested that this item be brought back in August. Bart Olson stated that they will bring recommendations and the committee can do as they see fit. 2. PW 2011-39 Residential Solid Waste Franchise Agreement Bart Olson asked do we want to change the program at all. Bart stated that at city council people stated that they like it the way it is and said not to touch it. Alderman Colosimo stated that he appreciates the Green Committee's input. I understand there are more fair ways to do it, but the pay as you go program, you see it like in Aurora, it promotes public dumping. He stated that if it is not broken, don't fix it. The system we have is working and is liked by the public. Alderman Spears and Gilson agreed. Alderman Gilson stated that we need to keep the container program and the residents don't want to see a change. Alderman Munns agreed. Alderman Spears stated that she got a lot of e-mail stating to leave it alone. Alderman Colosimo stated that he would like to see a fee reduction for people that take a small can. He stated that an incentive would be good for those that don't throw out as much garbage to save money. Aldermen all agreed that we can entertain other bids. The aldermen all agreed that they have done a great job and been very responsive. The aldermen all agreed that they do not want a sticker system. Additional Business: Mayor Golinski asked about IML. He stated that he thinks it is invaluable. He said they are going to be addressing the ghost subdivisions. Alderman Gilson stated that we took it out of the budget. The aldermen discussed how much it would be they self paid. Alderman Munns stated that we can learn things. Mayor Golinski stated that if one alderman comes back with a great idea it could save us Administration Committee July 21, 2011 Page 8 of 8 thousands. It was discussed that maybe each alderman takes one day and pay their own way. Alderman Spears recommended that we should wait until next year. Mayor Golinski agreed, but stated that he believes that they should do it next year. Mayor Golinski asked if we are still planning on doing Holiday Under the Stars again. The Alderman stated that yes it should be planned again. It was discussed doing it all in the same location instead of two. Alderman Gilson liked the idea to condense it to Riverfront Park and the other aldermen agreed. Mayor Golinski suggested that the committee get more involved. Mayor Golinski asked what the committee wants to do about the Old Jail. The Mayor stated that the Cultural Commission has been doing a lot of work on the jail and asked if we want them to keep working on it? Alderman Colosimo stated that someone should buy it from the city and make it a museum or a private industry. We don't need to make money on the sale. It is not the city's responsibility. Bart Olson stated that $162,000 was paid for it. Mayor Golinski stated that they raised $6,000 for fixing it up. The aldermen stated that they don't want to have to maintain the building. Bart Olson stated that it could be used as an extra office space. Bart Olson stated that the haunted house was a great thing because it made money. All of the alderman agreed it would be great to restore the building and have a museum, but the city should not own it. They stated that they are not in the restoration business. Alderman Spears asked if the ads for Hometown Days have been put out yet. The alderman had a discussion about getting the ads out and getting volunteers. Alderman Spears said that a citizen called her that lives on West Kendall and she stated that she would be willing to collect funds from the neighborhood to get their roads done. Bart Olson stated that they can tell her the cost, but the Alderman stated that they should discourage her from doing so. There being no further business, the Committee adjourned at 9:35 p.m. Minutes Respectfully Submitted by: Lisa Godwin