Administration Minutes 2010 03-22-10
APPROVED 8/19/10
UNITED CITY OF YORKVILLE
800 Game Farm Road
Yorkville, IL 60560
ADMINISTRATION COMMITTEE MEETING
City Hall, Conference Room
Monday, March 22, 2010 – 6:00 P.M.
PRESENT:
Chairperson Robyn Sutcliff Valerie Burd - Mayor
Diane Teeling – Alderman Administrator Olson – City Administrator
Gary Golinski - Alderman Kathy Orr – City Attorney
George Gilson - Alderman Wm Powell – Treasurer
Susan Mika – Finance Director Tony Scott – Kendall Record
Rich Hart – Chief of Police
PRESENTATIONS: Administrator Olson gave a presentation for the General Fund
Budget (See Attached)
The meeting was called to order @ 6:02p.m.
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MINUTES FOR CORRECTION/APPROVAL:
Minutes for Feb. 18 2010 were
approved.
NEW BUSINESS:
1.ADM 2010-14 Monthly Budget Report for February 2010
Alderman Gilson inquired about Bad Debt. He asked if this was in addition to the
amount that was already written off. He questioned what the total write off
amount was year to date. Susan Mika said the total is $940,738 and there was
nothing new written off in the month of February. She said anything new written
off will be reported in a Bad Debt Report.
Alderman Gilson asked if there is a reason for “No Analysis of Line Items” for
several areas on the Budget Report. Administrator Olson explained that items are
highlighted if there is a significant amount of things that are either over budget for
the month, for the year to date or for the entire year. Also highlighted are items
he wanted the committee to know about because he thinks they are important. If
an item doesn’t meet those criteria or if there’s normal spending for the month, he
won’t put it on the report.
Alderman Gilson also inquired about expense cuts. Administrator Olson said
there have been no expense cuts.
Alderman Teeling asked about income from towing charges. Administrator Olson
said towing charges were implemented at the end of February. This should appear
on the next Budget Report.
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Alderman Golinski asked about a Trust and Agency Fund. He wanted to know
why the fees collected don’t match the payments going out. City Treasurer Powell
and Susan Mika explained that these will are on a billing cycle of 2 months so
they will never be exactly the same, but they should be close.
This item will move forward to consent agenda.
2.ADM 2010-21 Monthly Treasurer’s Reports
a)November 2009
b)December 2009
c)January 2010
d)February 2010
In the interest of spending more time on the General Fund Budget, Treasurer
Powell asked if he could only report on February. All agreed. The beginning
balance was $23,923,577. The revenues were $1,600,345. February expenses
were $1,838,488. The ending balance is $23,685,434. He stated the General Fund
Balance is not good as everyone knows.
Alderman Golinski said this is more of a cash on hand report. Treasurer Powell
said it was not. Susan Mika explained that the beginning balance and ending
balance is the statement of net assets and liabilities. She also stated that revenues
and expenses are actual cash. Alderman Golinski felt that total assets shouldn’t be
in this report as it makes it confusing. Alderman Golinski asked if the report has
always been like this. Director Mika said that it has since she’s been with the
city. Treasurer Powell said that the report was changed at one time to try and give
the committee more clarity. The fund balance was added as well as the
miscellaneous information on the bottom. It also reflects YTD as well as the
month.
Alderman Gilson asked how the real numbers are monitored. Administrator Olson
asked Director Mika if an unreserved, undesignated fund balance report could
accompany this report. Director Mika stated she could try to create such a report.
These items will move forward to consent agenda.
3.ADM 2010-16 FY 2010/2011 General Fund Budget
Administrator Olson stated that he had memos and a PowerPoint to present on the
budget. He talked about policy options for next year as discussed in his memo.
Alderman Sutcliff commented that for the first time in about 3 years the city
actually knows how much money is on hand. Administrator Olson agreed that it is
much clearer.
Mayor Burd talked about a letter from Global Credit Portal. The letter informed
the city that its debt rating has been lowered. Mayor Burd felt that this is a
credible rating based on the city’s financial situation. The city received an “A”
rating which in this economic downfall is still good. Mayor Burd congratulated
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Director Mika and Administrator Olson for their work in clarifying the city’s
financial position.
Alderman Gilson asked if the City Council would be able to discuss the budget at
the next City Council meeting or was the public hearing just for resident input.
Chairperson Sutcliff said it was for resident input. Alderman Gilson was
concerned that there were quite a few items which could make this meeting
lengthy. Chairperson Sutcliff stated that the items could be discussed tonight or
there could be another budget meeting. Alderman Gilson suggested another
special budget meeting. Alderman Golinski clarified that the City Council would
not be able to comment at tomorrow’s public hearing. Mayor Burd said the
budget could be discussed tonight, in two weeks at the City Council meeting or at
a special meeting. Chairperson Sutcliff thought the committee should try and get
an overview of the budget and that Administrator Olson’s presentation may
answer some questions. Mayor Burd said she would like the committee to keep in
mind that some of the things that are being proposed are being proposed because
of the City Council’s goal of rebuilding the fund balance.
(See Attached)
Administrator Olson proceeded with giving the presentation.
Alderman Golinski pointed out a couple of mistakes on the General Fund Budget.
One was Transfer to Land Cash. Director Mika agreed there was an error and
stated she would fix the entry. Another error was a transfer to Police Capital not
being shown as revenue in Police Capital. Director Mika noted it was there, but in
the wrong line item. She stated she would also correct this.
Alderman Gilson asked for details of the budget for the following; Community
Relations - $111, 803; Public Relations - $1,750; Community Events – increased
$4000; NICOR Gas - $31K; Grant Writing - $14K; Beacon News Subscription;
IML Conference; Publishing & Advertising - $2K; Senior Services Rent Refund
$5K; water park rebate; etc. Alderman Gilson asked about the loss of one
engineer and the volume of current engineering projects. He felt this was an area
for cuts. He also discussed $500 in overtime in the budget. He wanted to know
about Contractual Services and the Computer Replacement Policy. Administrator
Olson addressed all of Alderman Gilson’s concerns.
Alderman Golinski commented that any serious budget discussion has to include
staff cuts because the budget can’t sustain the current level of staffing. Alderman
Gilson agreed with Alderman Golinski.
Chairperson Sutcliff questioned holding a special budget meeting so that the
entire City Council would hear the questions and answers being presented tonight.
Alderman Golinski & Alderman Teeling agree. Alderman Golinski noted that in
past years there has been a special budget meeting but this year the budget has
been presented without a meeting where the entire Council could give input.
Alderman Sutcliff agreed that a budget meeting should be arranged in order to
expedite the Administration Committee meeting. Alderman Gilson suggested that
members of the City Council volunteer their time to have this meeting in order to
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save the city money. He asked if anyone opposed the idea. Chairperson Sutcliff
opposed the idea. After more discussion it was decided to have a Special Budget
Meeting. Pending notification and confirmation from the other aldermen, April
10, 2010 was set as a tentative date.
4.ADM 2010-17 Health Insurance Renewal – Discussion
Director Mika reported that she heard from Joe Liberty, the city’s health
insurance broker, and he was going to try to re-negotiate a lower renewal. The
final number was 19.9%, which equates to $40K.
Alderman Gilson questioned the renewal date and Director Mika replied it was
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May 1The deadline for open enrollment for employees is April 15. Alderman
Gilson asked what effect the change in the drug card or implementing an HRA
program would have on a savings. Administrator Olson said the drug card could
create a $90K savings and the HRA Program could generate an additional $50K
to $80K. Alderman Gilson asked how the change would affect the coverage for
the employees. Administrator Olson explained the effect.
5.ADM 2010-18 Resolution of Authorization to Close Money Market Acct &
Transfer Funds (Fox Industrial)
Director Mika is requesting that one account be closed and consolidated with the
Fox Industrial Account.
This item will move forward to consent agenda.
6.ADM 2010-19 Senior Services Rent Refund – Discussion
Administrator Olson discussed a $5K Rent Refund. Alderman Teeling asked this
was already in the budget. Administrator Olson said it was based on decreased
rent however as there are only two months left to this fiscal year the city would
have to cut them a check.
Alderman Gilson stated that while he is a large supporter of Senior Services he
didn’t think the city should subsidize then by giving rent away. He suggested that
the City Council form some sort of volunteer committee to help raise funds to
cover that $5K. Chairperson Sutcliff stated that the city currently has a couple of
committees that may be able to help with fund raising. She questioned what other
expenses they have and if the city made payments on the building. Administrator
Olson explained that the building is owned by the city free and clear. Expenses
are capital purchases or maintenance needs such as the HVAC system which is
hanging in but would cost $400K to replace.
After more discussion this was moved to discussion to City Council
OLD BUSINESS:
1.ADM 2009-19 Beecher Center Use Agreement
Administrator Olson stated that this was discussed last year and it was suggested
it come back in a year. He said in order to get this agreement done in a timely
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manner negotiations should begin in the next couple of weeks as the agreement
expires in October. Chairperson Sutcliff suggested this be discussed by the entire
in Council. Mayor Burd noted that a consensus was needed to determine if the
city wants to rent the center again. Alderman Gilson noted that if the city is going
to subsidize the rent it affects the renewal of the rent.
This will be put on hold until the budget is finalized.
2.ADM 2010-08 Amusement Taxes
Administrator Olson stated he researched this but completely struck out. He did
talk with North Aurora who explained that their revenue from this is about $80K.
It has fluctuated between $70K and $90K for the last 3 or 4 years. Most of their
revenue is from video gaming. Administrator Olson said he has budgeted $50K
from this tax. Raging Waves may be subject to amusement tax and there will be
other users such as the bowling alley and miniature golf facilities.
Alderman Gilson asked if the amusement tax would be on top of what the city
agreed to with the water park? Administrator Olson said this is to be determined.
Attorney Orr needs to review the annexation agreement.
Alderman Sutcliff asked Attorney Orr if she had any experience with the
amusement tax. Attorney Orr explained that this is a tax that everyone is using.
The tax that is 5% so if a movie ticket is $10 it will be $10.50 after the tax is
approved. In the last two years, it is the most popular tax.
Alderman Gilson asked what other types of businesses in Yorkville would be
affected. Attorney Orr said miniature golf, movie theatres, bowling alleys, kayak
rental or any other amusement. She stated it would be a good time for Yorkville to
implement.
3.ADM 2009-43 Ordinance Amending The City’s Ethics Ordinance
Attorney Orr said State’s Attorney Eric Weis has not gotten a response regarding
this. She presented an updated ordinance providing penalties, but recommended
this be amended to include an enforcement system before it goes on to the
Council for first reading. She asked the committee’s approval to amend the
ordinance to include the mentioned changes.
Alderman Gilson said he would like to wait until Attorney Weis gets an answer.
Alderman Golinski felt that if the city has to have a commission, why not use the
county commission that is already established. If any of the City Council is
charged with an ethics violation, why would they want to go in front of a
commission that is appointed by them?
Attorney Orr mentioned Montgomery’s and Oswego’s Ethics Commission. She
also stated that Sugar Grove uses the State’s Ethics Commission. Mayor Burd
said she would like to see it be a local commission by residents of the city of
Yorkville.
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After discussion, it is recommended to make the above changes and move
forward to council.
ADDITIONAL BUSINESS:
1.
Alderman Teeling talked about billing for the sanitary district. She said if the city
increased it again, they’re just not going to want to do that. If the city separates
from them, she felt it would lose money. Director Mika explained that the $120K
is based on actual costs, staff time, envelopes, and postage. Administrator Olson
explained that the city would have to eat half of the costs but it would save some
money on material costs.
ADJOURNMENT OF THE ADMINISTRATION COMMITTEE MEETING:
With no further business to discuss, the meeting adjourned at 8:59 p.m.
Minutes respectfully submitted by Tim Dlugopolski
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