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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 th 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. 1 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 2 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 3 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 4