Minutes: September 8, 2015
A MEETING OF THE OGLESBY CITY COUNCIL WAS HELD ON TUESDAY, SEPTEMBER 8, 2015, AT CITY HALL. THE MEETING WAS CALLED TO ORDER AT 7:00 P.M.
PRESENT: COMMISSIONERS CAREY, PORTER, RIVARA, YBORRA, MAYOR FINLEY, ATTORNEY ANDREONI, AND CITY CLERK CLINARD.
A MOTION WAS MADE BY PORTER, SECONDED BY CAREY to approve the regular meeting minutes from the August 17, 2015, meeting. AYES: CAREY, PORTER, YBORRA, RIVARA, FINLEY. MOTION CARRIED.
A MOTION WAS MADE BY RIVARA, SECONDED BY CAREY to approve the bills presented for payment: Comcast, $149.40; Illini State Bank, $51.98; United States Postal Service, $739.47; Petty Cash, $101.00; AEA, Inc., $5060.00; AFLAC, $117.67; Air One Equipment, $2,172.85; Ameren IP, $298.00; Mary Ames, $38.01; Apple Press, $80.00; ASK Enterprises, $9,866.81; Benefit Administration Services, $ 342.92; Benefit Planning Services, $342.92; BHMG Engineers, $317.99; Bio-Tronic, Inc., $300.00; Bob’s Business, $276.64; Brownstown Electric, $658.23; BSN, $24.98; Call One, $2,606.17; Michael Collins, $14.57; Comcast, $67.90; Communications Direct, $99.00; Compass Minerals, $1,871.46; Connecting Point, $1,298.50; Nellie Crew, $227.58; D&M Landscaping, $650.00; Daley’s Super Service, $48.94; Dever & Sons, $519.25; Dresbach, $284.20; Eagle Engraving, $52.00; Econo Signs, $258.40; Cathie Edens, $77.37; Katie Edwards, $221.33; Efficient Billing Systems, $1,750.68; Emergency Medical Products, $400.62; Fastenal, $6.36; Ficek Electric, $120.00; Flags USA, $434.00; Cody Flynn, $147.86; Gallagher Materials, $2,299.38; Grainco FS, $392.29; Grosenbach’s, $13.08; Halm’s Auto Parts, $173.82; Hawkins, Inc., $1,414.03; Henry Schein, Inc., $382.37; Holloway’s Portables, $275.00; Hy-Vee, $.18; Il Public Risk Fund, $5.910.00; Il Valley Community College, $17,527.64; IRBY, $424.58; IVCH, $120.00; JW Ossola Company, $11,781.00; John Senica Jr., $286.37; John’s Service and Sales, $248.54; Kendrick Pest Control, $105.00; LaSalle Office Supply, $347.20; LP High School, $45,346.79; Lawson Products, $143.21; Martin Equipment, $196.43; Mautino Distributing, $18.00; Maze Lumber, $71.88; Menards, $153.67; Mertel Gravel, $623.75; Dollar General, $57.30; NCPERS, $48.00; Newstribune, $140.00; NIMCA, $110.00; Oglesby Grade School, $63,138.72; OSF St. Francis, $265.50; PDC Laboratories, $408.00; Quad City Electric, $5,071.80; Republic Services, 19,268.50; Revere Electric, $213.75; Chuck Reynolds, $500.00; Dominic Rivara, $162.15; Romeoville Fire Academy, $660.00; Sherwin Williams, $66.00; Smith’s Sales & Service, $44.00; St. Margaret’s Health, $40.00; Staples, $134.25; Sunrise Supply, $168.99; Ronald Thompson, $122.39; Universal, $724.92; Water Products Company, $5,204.98; WEX Fleet Services, $3,542.19; Witmer Public Safety Group, $553.96; Zoll Medical Corporation, $426.78. Total $220,099.84. Before the vote, Commissioner Rivara noted the new format of the invoice listing. AYES; CAREY, PORTER, RIVARA, YBORRA, FINLEY. MOTION CARRIED.
There was no public comment on agenda items.
Joel Hopkins, of Hopkins & Associates, then presented the FY15 Audit findings to the council. Hopkins pronounced the audit “a clean audit” except for two items: The city has not adopted GASB 43 and 67 which involved police pension reporting. Hopkins said that to comply would require hiring an outside actuarial, which would be “very costly.” He also noted that most cities the size of Oglesby also choose not to adopt those standards. He said that with this audit, the city has fully adopted GASB 34, which moves the financial records from a “strict cash basis to accrual.” Hopkins noted that the city should have done this “10 years ago.” Hopkins said the city’s control system is “well documented and working” and although the small staff does not allow for optimal segregation of duties, the clerk’s office does have other controls in place. The commissioners, who had not had a chance to review the audit before the meeting, did not have any questions for Hopkins.
Hopkins then moved onto “other matters.” He told the council that the appropriations ordinance was “not an adequate budgeting tool” and urged them to get a budget in place. He will work with Commissioner Rivara to put together a budget. Hopkins also suggested that the city consider transferring fund balances in the proprietary funds to the general fund. That would give the city “a clear picture” of where the city stands financially. Hopkins pointed to the city’s “steadily declining cash balance” as a reason for concern, noting that for the first time since 2008, the city’s short-term debt (debt payments for FY16 and the line of credit) is greater than the cash balance on hand at the end of the fiscal year. He also said that the city’s deficit is comprised of more than $351,337.00 of monies owed to the restricted funds accounts. He urged the city council to find ways to raise revenue and cut expenses, noting that the city “shouldn’t consider borrowing” additional funds to keep the city afloat.
Attorney Andreoni told the council it was limited in the number of ways it could raise revenue. He also said that with state funding in danger, it’s even more difficult for the city to close the gap. Commissioner Yborra pointed out that the city had raised both the utility and sales tax in recent years, and had both temporary and permanent layoffs in some departments to cut costs, but that issues such as the current one with Well No. 4, made it difficult to get ahead. He is currently looking at water and sewer rates, which have remained the same for more than 15 years.
Commissioner Porter noted that the council had just received the audit, adding that it was a “much different audit presentation” than in the past. He thanked Hopkins for a “very thorough” audit. Commissioner Rivara said the city had tough decisions ahead of it, but that it
“must find a way to do business within its means.”
A MOTION WAS MADE BY PORTER, SECONDED BY RIVARA to grant Starved Rock Runners Club’s request to close streets for the annual Turkey Trot and for police assistance. AYES: CAREY, PORTER, RIVARA, YBORRA, FINLEY. MOTION CARRIED.
The Mayor then opened the floor for public comments on any topic.
Tony Dennett asked for an update on the Walnut Street project. Commissioner Yborra told him that the project was complete except for the striping and that that would be done as soon as the contractor had time to do it.
Vern Seimers asked for an update on the property at 351 E. Walnut St. Mayor Finley told him that he had contacted the bank which held the mortgage on the property because the owner had allowed the insurance to lapse. The bank is waiting for its insurer to agree on an amount for demolition of the property. Finley said he hoped that there would be some progress by the end of the month.
A resident of Heritage Gardens asked if the city would intervene if a dispute arose with the new owner of a parcel at the end of the driveway that houses a garage. The resident did not want to allow the new owner access to the parcel. Mayor Finley and Commissioner Yborra both responded that the driveway is private property and the city has no authority to control access nor responsibility to maintain it. Mayor Finley said he would look into the matter.
Mayor Finley reported that the $96,491.50 check for monies spent on the river access project had come in. He also said that the Park Board would be hosting a fundraiser on October 26th from 4:30 to 6:30 at the Elks. He also said that the purchase of the Jessen property would be placed back on the agenda at the next meeting. The city plans to purchase the property, then sell it with the stipulation that the property be razed within a certain timeframe.
A MOTION WAS MADE BY PORTER, SECONDED BY YBORRA to adjourn the regular meeting at 7:46 p.m. AYES: CAREY, PORTER, RIVARA, YBORRA, FINLEY. MOTION CARRIED. MEETING ADJOURNED.
Becky Clinard, City Clerk