City of
Special City
Council Meeting
March 14,
2011
The Mt.
Vernon City Council held a Special City Council Meeting on Monday, March 11,
2011 at 3:00 p.m. in the Council Chambers at City Hall,
Mayor Mary
Jane Chesley called this Special Meeting to order.
Roll call
showed present: Council Member Mary Burgan, Council Member Dennis McEnaney,
Council Member Todd Piper, Council Member David Wood and Mayor Mary Jane Chesley.
City Clerk
Jackie Sharp read the Notice of Special City Council Meeting.
The notice read: “I, Mayor
Mary Jane Chesley, hereby call a Special Meeting of the Mt. Vernon City Council
on Monday, March 14, 2011, at 3:00 p.m. in the Council Chambers at City Hall,
Results of
Bid Opening for Trash Contract
3rd Quarter
Budget Review
Fiscal
Policy Review
Dated in
The first
item was the results of the bids for trash service.
City Manager Ron Neibert stated that four bids had been received. Council
went over some of the parts of the bids, such as if we should buy our own totes
or use the companies, extra pick ups of bulk items, etc. City Manager Neibert
stated that per the bids, Midwest Waste was the low bidder on the 3 year
contract and the 5 year contract.
Council stated that they prefer to just do the 3 year contract.
Council
discussed that all trash pick up should be moved to the front or curb for
everyone. No more alley pick up.
That should eliminate people putting out bulk items in the alleys and
leaving them. The bulk items would also be picked up at the curb.
Midwest Waste stated that they would pick up large items as they go and
as they can, but they would for sure pick up bulk every Friday. Ken Miller of
Midwest Waste stated that they will do yard waste pickup three days a week. He
stated that they would do the bulk item pick up May 1 per the old contract.
Mayor
Chesley stated that Council will expect some service growing pains with this
change, but hopes it will help clean up the town. Council Member David Wood
commented about changes in the billing for the trash pickup and how much it
might be. Council stated that they would be happy because of the increased
service, especially the bulk pick up every week.
Since
Midwest Waste already has the totes out, the City does not need to purchase
them.
Motion by
Council Member David Wood to accept the low bid from Midwest Waste for three
years waste pick up for the City in the amount of $ 1,978,992.00. Second by
Council Member Todd Piper. Yeas:
Burgan, McEnaney, Piper, Wood and Chesley.
City Manager
Ron Neibert turned the meeting over to City Finance Director Merle Hollmann to
discuss the 3rd Quarter Budget Review. Mr. Hollmann passed out copies of the
current nine month budget review to Council. He went through the General
Corporate Fund and gave the Operating Cash Balance at 1/31/11 in the amount of $
938,667.00. He discussed the Health Insurance Fund paid in May.
Mr. Hollmann then discussed the Working Fund Balance as of 1/31/11 in the
amount of $1,891.341.00. He stated that the amount is higher than anticipated
due to funds coming in higher then expected.
He then gave the Actual Budget Deficit for the nine months <
$137,595.00>.
Mr. Hollmann
then went on to discuss the Public Utilities Fund. The Operating Cash Balance of
this department for 1/31/11 was $1,849.00.
Low because of a $ 300,000.00 insurance paid out. The Working fund
balance as of 1/31/11 was $ 500,518.00. Mr. Hollmann stated that the Actual
Budget Surplus for the nine months ending for this department was $ 25,493.00
Council
stated that this was good because several years ago, the Public Utilities
Department was always in the red. It took a few years to get it back in the
black.
Mr. Hollmann
stated that $2 million balance would be two months of funds for operating
expenses.
Council
discussed why two months funds. Mr. Hollmann explained why.
Council said they would like to discuss this further.
Mayor
Chesley stated that it is good to have the quarterly reviews so we can see
exactly where we are and where we need to be. City Manager Neibert stated that
through the budget works we hope to bring the last numbers to 0.
Mayor
Chesley asked how we did the third quarter last year.
Mr. Hollmann stated that we did about the same and the Public Utilities
is doing better.
Finance
Director Hollmann went through the income.
The 1% State Sales Tax for nine months is up $ 3.7%.
Mr. Hollmann
went through the State Income Tax funds. We have not received the funds for the
November-December or the December-January funds yet and then there are 4 more
months to come to us. All in all
the funds are up 2.25%.
Mr. Hollmann
discussed the Food & Beverage Tax Receipts.
He stated that they are up 3.1%.
These are restricted funds for Capital Debt Services.
The final
fund discussed was the 2 cent Diesel Fuel tax.
This is also restricted revenue. This fund is down <1.7%> Council
wondered why this fund was down.
City Manager Neibert stated that truckers have automatic radios that tell them
where the diesel is cheaper so they try to go to those locations.
Finance
Director Merle Hollmann discussed a Fiscal Financial Policy for the City. Mr.
Hollmann stated that the reason for this policy was to maintain a balanced
budget. Our Auditors Jim Leuty and Brian Charlton suggested that this would be a
good thing for the City to do. It
will give management guidance on how to run funds as policies.
The Auditors will then check to see if we comply with the policy and it
will be in the Audit Report. There is no
local Ordinance that dictates standards.
Mayor Mary Jane Chesley stated that we are accountable to the public on
spending money. Mr. Hollmann gave specific objectives designed to ensure the
continued fiscal health of the City. Mr.
Hollmann then went through several budget policies that the City will follow for
the auditing. He then discussed the fund balance policies. These policies again
spoke about the two month worth of operating expenses. Council will discuss this
again later. Some of the funds simply said that they would keep enough to allow
payments of monthly obligations. Or keep enough to allow minimum balance within
a reasonable period of time.
Council discussed the Revolving Loan Funds. Discussion of Grant Funds was held.
The Grant Funds are usually just in and out funds. Council Member Wood
spoke regarding a Finance Committee and the need for one.
At this time
Council stopped and will finish this discussion at a later date.
Motion by
Council Member Mary Jane Chesley to go into Executive Session to Discuss the
Sale of Real Estate. Second by Council Member David Wood.
Yeas: Burgan, McEnaney, Piper, Wood and Chesley.
ADJOURNMENT
Motion by
Council Member Mary Burgan to adjourn this Special City Council Meeting.
Second by Council Member David Wood.
Yeas: Burgan, McEnaney, Piper and Wood.
Absent: Chesley.