Administration Minutes 2010 11-18-10
APPROVED W/CORRECTIONS
1/20/11
UNITED CITY OF YORKVILLE
ADMINISTRATION COMMITTEE
Thursday, November 18, 2010
City Hall Conference Room
COMMITTEE MEMBERS PRESENT:
Alderman Robyn Sutcliff
Alderman Diane Teeling
Alderman George Gilson
Alderman Gary Golinski
OTHER CITY OFFICIALS PRESENT:
City Administrator Bart Olson
City Finance Director Rob Frederickson
Alderman Rose Spears
Treasurer Bill Powell
The meeting was called to order at 6:02pm by Chair Sutcliff
Minutes for Correction/Approval:
September 16, 2010
Alderman Golinski had two corrections to the minutes. First, he was listed as other city
official instead of Committee members. On page 3, last paragraph, should be Park Board
not Park District. The minutes were approved as corrected.
New Business:
1. ADM 2010-51 Treasurer’s Report for September 2010
2. ADM 2010-52 Treasurer’s Reports for October 2010
Chair Sutcliff suggested that both Treasurer’s reports be discussed at the same time.
Treasurer Powell noted the difference between the September and October report is that
Fund Balance has been removed but will be added back in later after the audit. Secondly,
the format has changed a little but once the audit is completed the beginning and ending
balances will be included again. Future Treasurer reports will be altered to be more
concise and easier to read. Finance Director Frederickson stated that field work for the
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audit will begin on December 6.
Alderman Golinski clarified that for funds 51 and 52, Water Operations and Sewer, the
City would no longer be listing the assets so the budget number is more acqurate. The
Committee agreed to forward both the September and October 2010 Treasurers Reports
to the Consent Agenda.
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3. ADM 2010-53 Administration Committee Meeting Dates for 2011
Alderman Gilson stated that he had a few conflicts but would review those after the
election and the reassignment of committees. The Committee approved the dates as
presented.
4. ADM 2010-50 Budget Report for September 2010
5. ADM 2010-54 Budget Report for October 2010
Administrator Olson reviewed the two reports. He noted that for the Admission tax the
City budgets the revenue as well as the rebate, which beat budget projections of $63,000.
Alderman Gilson referred to the Radium Compliance about bonds issues to pay for the
project and proceeds are exhausted. Finance Director Frederickson stated the proceeds
were put into a separate bank account and used towards capital improvements as well as
to pay down debt service. Administrator Olson clarified that a bond was sold to pay for
the Radium Compliance project, the project was built under budget, and the remaining
money placed in an account. The loan payments are paid from revenues received. The
remaining money in the bond account is excess and is pulled to pay for expenses. This is
the first time there is no leftover excess proceeds. Alderman Gilson requested a break
down of this account. Administrator Olson reiterated that this particular bond was
supposed to hit the Water Account and the excess proceeds only used for debt pay down.
Discussion then moved to the Business District Tax regarding the City’s practice to
budget separately for Sales Tax Revenues, Business District Tax Rebate as well as Sales
Tax Rebate. The positive about Business District is that what comes in goes out. If the
income, and correspondingly, the rebate, is greater than the budgeted amount, it is an
indication of how well the sales tax is doing. There was $140,000 variance in budgeted
rebate versus actual rebate that wasn’t caught. This means that other businesses that we
don’t share sales tax have declined and the businesses that do, have increased. On
another note, the year to date total of $1.289 millions Sales Tax amount does contain
months that need to be journaled back to the prior fiscal year. The City receives Sales
Tax three months in the rears. Currently, we have received ¼ of our annual sales tax.
Discussion then began regarding the Water Operations Revenue specifically the year to
date total of $933,295, which out performing budget estimates. This is due to
conservative budgeting as well as the increase in water rates. Additionally, the Water
Improvement revenues of $112, 611 reflect the 8.25% fee passed to pay for debt
obligations. This is beating estimates as well.
Alderman Golinki introduced the issues of pensions, specifically the Police Pension, and
the amount of $162,500 plus encumbrances of $318,000. Administrator Olson stated
these were not employee contributions but reflected income from Real Estate taxes for
Police Pension. The police pension is a sub-levy of the Real Estate tax, it is received by
the City and deposited in the Pension Fund. Alderman Golinski did ask if there are
employee contributions. Treasurer Powell stated that employee contributions are not
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reflected because they go directly into the pension and never hit the general fund. It is
important to note that the Police Pension is still underfunded by $125,000.
The committee approved the report and recommended it be forwarded to the Consent
Agenda.
6. CC 2010-81 Budget Update
The Committee began discussing the Budget update. Alderman Gilson had several
questions regarding the budgeted Amusement Tax of $162,964. Administrator Olson
explained this was based on the assumption that the Amusement Tax would be in place at
5% on May 1, but it was actually 3%. Raging Waves had a good year but not
exceptional. The City has had preliminary talks and a tentative agreement over shared
distributions for the following year.
Alderman Gilson requested clarification regarding Building Permits, Traffic Fines and
the Amusement Tax revenue of $162,000. Administrator Olson stated that revenue
would be revised downward, closer to $112,000, depending on other vendor receipts.
Alderman Golinski questioned the overage for over-time under the Police Department
budget. Administrator Olson stated the two likely explanations are staff shortages and
increase reports at end of shifts. Alderman Golinski questioned if Police get over-time
for Hometown Days and Holidy Under the Stars. Administrator Olson stated that he
would have to verify that with the Police Department
Discussion continued regarding Council input for Training. Alderman then expressed
concern about the Audit Fees, wondered if we could rebid this in 2011/2012, in order to
bring these costs down. Administrator Olson stated that we have one more year in the
contract; however, we will go out for RFP when the contract expires. Additionally, the
increase in the Accounting System Service Fee was attributed to contract obligations for
computerized software and includes training and technical support.
Further discussion revolved around increases to Insurance Liability and Property due to
two additional riders for the old jail and one for Park District inflatables. The staff is in
the process of reviewing the amounts and the broker is out getting bids. Our losses have
decreased from prior years, however, there are things they have recommended we do to
decrease our costs. The amount for Contractual Engineering Services reflects an estimate
based upon past usage, even though this year we hadn’t used it completely this year.
The Committee went on to discuss the front funding for the Yorkville Bristol Sanitary
District based on future growth. Comments were made regarding the cash flow and use
of funds by YBSD. In addition, there was discussion regarding the City’s roll in printing
bills and providing customer service. Administrator Olson pointed out this is a good
consolidation of services that benefits the residents. The YBSD sets the connection fee
and the Village sets the Sewer Connection fee. The Sewer fee was set for the 03/04
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budget and reflects $1,800 capital and $200 maintenance. Any change to this fee would
require an ordinance.
Finally, the Committee reviewed the Sewer Fund Debt Obligations and the practice of
using revenue pledged on growth when growth des not come. Alderman Tilman
wondered the consequences if the City did not refinance or issue another bonds.
Administrator Olson said that if the City did not increase fees or refinance, then the bonds
would be abated, meaning they would become part of the property tax, outside of the cap,
which could result in litigation.
There were no further questions or discussion on the Budget Reports.
Old Business:
1. ADM 2010-49 Historical Street Naming Policy
After a brief discussion and review of the attachments, the Committee agreed to
indefinitely table the issue.
Additional Business:
Alderman Gilson wondered if any planned staff reductions would be presented to the
Council at their meeting Tuesday. Administrator Olson stated he was not prepared to
respond.
Alderman Golinski commented on the condition of the old sawmill property.
Administrator Olson stated that property maintenance issues are on a complaint basis and
that it is difficult for the City to be proactive with only one employee responsible for
finding all the issues.
There being no further business, the meeting was adjourned at approximately 7:50pm.
Minutes Respectfully Submitted by:
Kristia Leyendecker, Minute Taker
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