City Council Minutes 2009 03-24-09 Special Meeting MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL
OF THE UNITED CITY OF YORKVILLE, KENDALL COUNTY. ILLINOIS.
HELD IN THE CITY COUNCIL CHAMBERS.
800 GAME FARM ROAD ON
TUESDAY. MARCH 24.2009
Mayor Burd called the meeting to order at 6:00 p.m.
ROLL CALL
Clerk Milschewski called the roll.
Ward I Allen Present
Werderich Absent
Ward II Golinski Present
Plocher Present
Ward III Munns Present
Sutcliff Present
Ward IV Besco Absent
Spears Present (arrived 6:03)
Also present: City Clerk Milschewski, City Treasurer Powell, City Attorney Orr, City Administrator
McLaughlin, Finance Director Mika, Public Works Director Dhuse, Police Chief Martin, Lieutenant Hart,
Interim Director of Parks & Recreation Olson, Community Development Director Miller and City
Engineer Wywrot.
OUORUM
A quorum was established.
BUSINESS
Proposed FY 2009/2010 Budget
Mayor Burd reported that as it now stands the city has a balanced budget. She asked Director Mika to
prepare a memo showing the reduction each department made during the FY 08/09 budget along with the
amounts they cut for the proposed FY 09/10 budget. She went over the March 24, 2009 memo from
Director Mika (see attached).
Mayor Burd reported that there was good news. Raging Waves has sold 400% more passes this year as
compared to last year. This will net the city approximately $150,000.00. Also, the Illinois Municipal
League insurance will cover the Aspen Ridge litigation fees so this decreases the amount needed in the
budget for litigation. Administrator McLaughlin added that the city will be reimbursed for the amount
already spent and there also may be coverage for the LayCom litigation.
The Council went over the following:
Revenues
The proposed General Fund Revenues are $11,488.253.00.
Alderman Golinski commented on the following:
• Building Permits - was the projected amount of permits realistic. Director Miller went over the
amount of permits issued in the previous year versus the few issued this year. He stated that he
felt that 100 permits was a conservative projection.
• The $70,000.00 transfer from Land Cash, 50% to be used for the park planner's salary and 25%
to be used for the park supervisor's salary. He felt this was an inappropriate use of the funds and
opposed the transfer.
Alderman Spears questioned the following:
Real Estate Tax - is the amount of $431,504.00 justified with the number of foreclosures?
Director Mika and Attorney Orr explained that real estate taxes are still paid by the bank in the
event of foreclosure.
° Liquor licenses- are more business applying for them? Assistant City Administrator Olson
explained the estimate was based on existing licenses and additional restaurant and package
liquor licenses. He stated that the city has not seen a decreased in the amount of licenses and that
turnover in businesses brings in new applications,
° Development Fees increased 80 %. Director Miller explained that these fees are separate from
building permit fees. Development fees include engineering and administrative review fees
which are due at subdivision platting. He felt this was a conservative number based on expected
projects.
The Minutes of the Snecial Meeting of the Citv Council — March 24, 2009 — nage 2
• Beecher Lease Agreement — this hasn't been a line item on any previous budget: where are the
funds going? Director Mika explained that the funds were going into the Building Fund however
everything was switched to the General Fund and a line item was created. She never recorded the
income to the line item but has corrected the mistake.
• Ordinance Fees increased 229% - due to Administrative Adjudication. Director Mika stated that
this was broken out of the Administrative Adjudication line item and perhaps she should have
removed the comment. Alderman Spears stated that funds are being taken out of the Police
Department to pay for staff for the Administrative Adjudication process. She asked how the
revenue from the process would be coded. Director Mika explained that after the budget is
passed, she will issue a number to track. Alderman Spears asked if the revenue went to the Police
Department and Mayor Burd stated that it did not; it goes into the General Fund. Alderman
Spears was concerned that the Police Department reflected the expense but not the revenue.
Director Mika explained that all revenues collected in the city go to the General Fund. Alderman
Spears asked why the expense was not reflected under the Administration Department and
Director Mika stated that she decided to put it under public safety. Chief Martin explained that
the expense is paid out of the Police Department however their money comes from the General
Fund. He noted that the revenue from traffic fines is similar. He stated he was comfortable with
the budget this way. Mayor Burd commented that Oswego is projecting an income of $80,000.00
from this process next year. They also put the income in the General Fund. She noted that the
City Council always tries to comply with Chief Martin's request for the budget and the Police
Department's needs come out of the General Fund.
• Investment Income — does this include the $130,000.00 the city is expecting to receive from
Kendall County? Director Mika stated that the $130,000.00 was collected last year.
• Land Cash — Alderman Spears shared Alderman Golinski's concern about the use of these funds
for salaries.
There was a discussion regarding the use of Land Cash for salaries. Mayor Burd explained that the park
planner was hired with the use of this fund for the salary in mind. Alderman Golinski noted that currently
the city isn't developing any parks and this employee is in the Community Development Department.
Mr. Olson stated he wasn't aware of any current park designs but he hadn't had time to discussed
upcoming parks with Park Planner Haake. He stated that from a construction perspective there were two
maybe three parks being planned in the budget. Mayor Burd added that the Recreation Department
cannot support the Park Planner at this time and that she believed it is more expensive to contract out for
these services. Director Miller explained that Ms. Haake also prepares construction documents for the
Community Development Department instead of using an outside source. Alderman Golinski stated that
the use of Land Cash for salaries could be challenged by a developer for instituting a hidden tax. Land
Cash is supposed to be used for the development of parks that are attributable to a subdivision. He stated
that if Ms. Haake is planning parks, document the time and charge it to Land Cash but to say a blanket
percentage comes out of Land Cash is wrong. Administrator McLaughlin stated that her time could be
tracked this year to confirm that the percentage of time is correct. He stated he spoke with both
employees affected by this and they both felt the percentage of their jobs reflected from Land Cash was
fair. Mayor Burd thought this documentation was being done. Mr. Olson stated that he put it on his list
of things to be done when it was mentioned two weeks ago. Alderman Spears asked if Alderman Golinski
would be more comfortable waiting until tracking has been done and then address this at the six month
review of the budget. Alderman Golinski stated he would be more comfortable with waiting if the
Council agreed to tit. Mayor Burd stated that she did not think Alderman Golinski was in the majority on
this matter. Alderman Spears suggested they find out and the City Council present was polled. Aldermen
Plocher, Sutcliff, Munns and Allen were comfortable leaving the budget as is, tracking the hours and
reviewing it in six months. Alderman Spears reminded the Council that this use could be challenged and
she would rather they be on the safe side.
Administration
Alderman Golinski noted that last year the projected year end amount for legal expenses was $385K but
now the budget looks different as far as the breakdown. He asked Director Mika to explain. Director
Mika stated that Corporate Counsel is Attorney Orr's fees, Litigation Counsel is Attorney Gardiner's or
any other legal fees for litigation and Special Counsel is for legal fees for specialized attorneys such as the
labor attorney. Alderman Spears stated that at the February budget meeting it was decided that
$200,000.00 would be placed in the Special Counsel and Litigation Counsel line items. She asked why
this was changed. Mayor Burd explained that the Illinois Municipal League insurance will cover the
Aspen Ridge litigation so this line item was decreased. There is also the possibility they will cover the
LayCom litigation. She added that I1%IL was going to allow Attorney Gardiner to stay on the case. Also,
Attorney Orr's fees were reviewed and it was determined that the city paid her $150,000.00 so the
Corporate Counsel fees were reduced. Alderman Spears stated that she would feel more comfortable
allocating more funds to these accounts. She asked if it was a sure thing that the LayCom litigation
would be covered. Attorney Orr explained the recent lawsuit that required insurance carriers to
The Minutes of the Special Meeting of the Citv Council — March 24, 2009 — page 3
cover this type of litigation. She stated that Attorney Gardiner was feeling confident that this will be
covered. Alderman Spears asked if the I IL would deny coverage if confidential documents were
released and Attorney Orr stated they would not.
Alderman Allen asked if the Facade Program was designed to improve the appearance of the downtown
and Mayor Burd explained it was and $10,000.00 was placed in the fund again to help encourage the
program.
Alderman Golinski questioned the273% increase in Office Cleaning. Administrator McLaughlin stated
that staff is looking at outsourcing the cleaning in City Hall alone however a cleaning service for all city
buildings is being investigated. Alderman Golinski commented that outsourcing should save money and
Administrator McLaughlin explained that there will be a staff reduction to coincide with the increase. .
Alderman Spears asked for clarification; $7,500.00 was in the FY 0809 budget and now $28,000.00 was
being proposed for the FY 0910 budget because the city was going out for bids for a service for all the
buildings. Administrator McLaughlin explained that the $28,000.00 was strictly for city hall alone. He
stated that currently there is a full-time employee and contractual staffthat cleans the building and the
city is spending an excess of $60,000.00 for cleaning the building. W. Olson added that there is an
increase in this line item however there is a decrease in another line item. Alderman Plocher asked if
someone was being let go and Administrator McLaughlin stated that this was possible. If another
position is available in the city the employee will be moved but that wasn't reality.
Alderman Spears questioned the flowing:
• Dues — what does this include? Mr. Olson explained that this includes things like the city's
membership to Metro West, the Chamber of Commerce as well as for professional
organizations that the City Clerk, Administrator McLaughlin and other staff belong to.
• Training and conferences — the note indicates that is for the B4L conference for elected
officials only. Alderman Spears asked what it covered. Director Mika stated that it covers
the $110.00 /person E\4L registration fee plus meals and lodging for two nights.
• Office Supplies - she questioned that $1,000.00 increase. Mr. Olson explained that this line
item went over this year so it is being increased_
° Computer Equipment and Software — Alderman Spears stated that she thought equipment
was not going to be automatically replaced. Mr. Olson explained that this line item could be
decreased because staff rotated a vacant computer to one that crashed. Director Mika stated
that the funds could remain in case another computer crashes or she could transfer it over to
the computer line item under Finance. It was the consensus to move the funds to the finance
line item.
• Polka Parry Funds — she questioned where the funds were and if they will go back to Senior
Services. Director Mika stated that the funds are under Parks and Recreation. Alderman
Spears asked that the funds be moved to the administration budget. Mayor Burd stated that
the transfer of the funds back to Senior Services needs to be place on a City Council agenda.
She asked for documentation to show who is to get the donation. It was the consensus of the
Council to place this on the bill list once documentation is received.
• NICOR — is this line item being increased enough? Director Mika explained that because the
city is a government entity it gets a break in its gas cost and she was confident in the increase
of 1%.
Alderman Munns questioned what the city was getting for spending $14,000.00 /year on a grant writer.
Mr. Olson explained that he would prepare a memo for the City Council to show that the city is getting a
return for its money. Alderman Golinski listed the amount for the different grants the city has received
and felt it was money well spent.
Alderman Plocher stated he would not like to see the cleaning service changed because he did not see
where the city would be saving.
Alderman Sutcliff commented that she did not see the need for $10,000.00 for a legislative attorney.
Alderman Allen agreed. Alderman Golinski noted that Mayor Burd brought forward this idea when she
was an alderman and that it had never been used. He supported leaving it in the budget as a safety net.
The Council was polled — Aldermen Allen, Plocher and Sutcliff wanted it removed from the budget while
Aldermen Spears, Golinski and Munns wanted it to remain as a safety net. Mayor Burd noted that it was
on the agenda of the regular City Council meeting later in the evening that a majority approval was
needed to spend the funds.
Alderman Sutcliff questioned the change in the Kendall County paratransit line item. Mayor Burd stated
that the county originally gave the city a higher figure but this has been reduced.
The Minutes of the Special Meeting of the Citv Council — March 24. 2009 — pa 4
Finance
Alderman Golinski asked who put the commented in the budget and Director Mika stated that the
department heads did. Alderman Golinski commented that more comments would be useful, would help
alleviate questions and would make the budget more transparent to the public. Alderman Golinski
questioned the sales tax rebate increase. Director Mika explained that more stores came on line at
Kendall Marketplace late in the year.
Alderman Spears has the following questions:
• Salaries — Over -time — she thought that all overtime was being cut out. Administrator
McLaughlin stated that certain departments such as the Public Works Department need to have
overtime funds available. Director Mika noted that the Finance Department is down two
positions which won't be filled. Staff may need overtime to cover the loss of these employees.
• Health Insurance decreased_ Director Mika explained that the health insurance for the water and
sewer employees will be reimbursed from their fund not finance's.
• Cellular phones — line item increased. How many phones did this cover? Director Mika
explained it was for her and the IT person's phones.
• Postage increased 150% and printing and copying increased 100 %. Director Mika explained the
increases are due to the adjustment made by breaking out the cost from the Administration
Department's budget.
• Computer Equipment and Software — was this for a computer replacements? Director Mika
stated that the amount reflected the expense for the entire city.
Alderman Spears noted that it was 7 :00 p.m. and time for the regular City Council meeting to begin. She
asked if another meeting was going to be scheduled to finish going over the budget. The Council
discussed that the budget had to be approved by April 30, 2009 and it had to be displayed for thirty days.
The public hearing was scheduled for April 14, 2009. Administrator McLaughlin stated that there was
nothing that precluded the current draft from being the working document. Attorney Orr agreed and
explained that the City Council could make any amendments at the time of approval. Alderman Golinski
commented that he questioned if there would be enough time at this meetings to go over the budget and
he requested another meeting so the City Council could get its questions answered. It was decided to
display the current draft but no date for an additional meeting was determined.
Alderman Spears asked one last question on the budget; were replacement vehicles addressed in the
budget. Director Dhuse stated that he had one pick -up truck and Chief Martin added he had a few.
Alderman Spears requested information on the vehicles being replaced and their mileage.
ADJOURNMENT
Mayor Burd entertained a motion to adjourn the meeting. So moved by Alderman Golinski; seconded by
Alderman Spears.
Motion unanimously approved by a viva voce vote.
Meeting adjourned at 7:00 p.m.
Minutes submitted by:
Jacquelyn Milschewski,
City Clerk City of Yorkville, Illinois