Finance Committee: September 2007

City of Evansville
Finance & Labor Relations Committee

Regular Meeting
Thursday, September 6, 2007, 5:30 pm
City Hall, 31 S. Madison Street, Evansville, Wisconsin

MINUTES

I. Call to Order. The meeting was called to order at 5:30 pm by Chair Tom Cothard.

II. Roll Call. Present: Chair Cothard and Alderpersons Mason Braunschweig and Diane Roberts. Also present: Mayor Sandy Decker, Finance Director Eric Jepperson, Administrator Dan Wietecha, Library Director Kathi Kemp-Tejeda, Dave Wagner, Greg Johnson, Roger Berg, and Dick Woulfe.

III. Approve Agenda. Braunschweig moved, seconded by Roberts to approve the agenda as presented. Motion approved unanimously.

IV. Minutes of August 9, 2007, Meeting. Cothard moved, seconded by Braunschweig, to waive the reading of and to approve the minutes as presented. Motion approved unanimously.

V. Citizen Appearances. None.

VI. Water and Light Bills. Cothard made a motion, seconded by Braunschweig, to approve the Water and Light bills in the amount of $825,609.95 and authorize their payment. Motion approved unanimously on a roll call vote.

VII. City Bills. Cothard made a motion, seconded by Braunschweig, to approve the City bills in the amount of $537,816.86 and authorize their payment. Motion approved unanimously on a roll call vote.

VIII. Unfinished Business:

a. Evansville Hotel Group LLC. Wietecha presented the draft development agreement. He noted that the draft contained two forms of assistance: TIF as a $270,000 development incentive and a $50,000 low-interest loan. He recommended a simpler package of just a $300,000 development incentive. Johnson noted that they had reviewed the development and pro forma budgets for the project and found them to be reasonable with the proposed level of assistance. Wietecha said that, like other agreements, this one contains a guarantee that the project produce sufficient increment to cover the city’s debt service. Wagner asked that they be granted some flexibility if minor details within the overall structure of the agreement still needed to be negotiated prior to Tuesday’s Common Council meeting. Cothard asked that a requirement be added that local contractors have the opportunity to bid on the construction. Braunschweig made a motion, seconded by Cothard, to recommend to the Common Council approval of the development agreement with Evansville Hotel Group LLC. Motion approved unanimously.

IX. New Business:

a. Fall 2007 Bonds and Notes. Johnson distributed a memo outlining proposed borrowings for TID #6, TID #8, and building acquisitions. Taxable general obligation bonds are proposed to provide $300,000 assistance in TID #6, $500,000 assistance in TID #8, include capitalized interest, and cover issuing expenses totaling about $950,000. Tax-exempt general obligation bank notes for $169,000 are proposed for purchase of the current Fire Hall property; the balance of the purchase comes from savings in the police and EMS accounts. Taxable general obligation bank notes for $200,000 are proposed for the purchase of the current Post Office property to enable the future expansion of the library.

Braunschweig made a motion, seconded by Roberts, to recommend to the Common Council approval of a resolution authorizing notice and sale of not-to-exceed $1,000,000 in taxable general obligation community development bonds. Motion passed unanimously on a roll call vote.

Braunschweig made a motion, seconded by Roberts, to recommend to the Common Council approval of a resolution authorizing Ehlers & Associates, Inc., to solicit competitive bank loan proposals for approximately $169,000 general obligation promissory notes of the City of Evansville, Rock County, Wisconsin. Motion passed unanimously on a roll call vote.

Braunschweig made a motion, seconded by Roberts, to recommend to the Common Council approval of a resolution authorizing Ehlers & Associates, Inc., to solicit competitive bank loan proposals for approximately $200,000 taxable general obligation promissory notes of the City of Evansville, Rock County, Wisconsin. Motion passed unanimously on a roll call vote.

b. 2008-2012 Capital Plan. The committee reviewed the proposed five-year plan. Jepperson noted that it contained the recommendations coming out of the various committees. Cothard made a motion, seconded by Braunschweig to recommend to the Common Council adoption of the five-year capital plan for 2008-2012. Motion approved unanimously on a roll call vote.

c. Library Expansion. Wietecha gave an overview of the library expansion situation. Acquiring the current Post Office property is the only realistic means of providing for the library to expand. The expansion is not scheduled until 2010 in the capital plan, but the city has the opportunity to purchase the property now. The asking price is $200,000 which he indicated to be a fair price based on the property’s capitalization rate.

Wietecha said the Post Office has a lease through December 2014. The city could receive rent to offset the purchase price until ready of the library expansion. Forcing the Post Office out of the building prior to 2014 would require helping them relocate to a similar facility. Similar to eminent domain proceedings, the city would be responsible for any relocation expenses. If rent were higher at the new facility, the city would also be responsible for the difference through the end of the 2014 lease.

In answer to questions, Kemp-Tejeda said space is already tight but the library could wait about three years before expanding. Wagner noted that using a bank note to finance the purchase would allow some flexibility for prepayment if favorable for the city. He noted that approval of the financing would enable the purchase if the negotiations on the property proceeded to the Common Council’s liking.

d. Sale of Lot on Water Street. Wietecha said the city owns a small, surplus parcel in the industrial area on Water Street. The city has been approached by Roger Berg about selling the property; Berg’s company owns the adjacent property. According to the zoning standards, the minimum lot size is 40,000 square feet or 20,000 square feet with a conditional use permit. The property has not yet been surveyed, but it is expected to be smaller than the minimum lot size so the adjacent property owner is the most realistic purchaser. He proposes to purchase the lot and construct an $80,000 building similar to the four already on his property. When the city sold other properties on Water Street for industrial development, a formula had been established to calculate the sales price based on tax base and job creation. The committee asked Wietecha to research the original formula.

e. US Cellular Contract. Wietecha noted that the city’s contract for service with US Cellular expires in October. In reviewing the changes in consumer contracts since the city first started contracting with US Cellular, it may be advisable to encourage a number of employees using the city contract for their personal phones to enter individual contracts on their own. The committee indicated that US Cellular is the only provider with reliable coverage in Evansville and that the city really had no choice but to continue with them.

f. Veolia Solid Waste Contract. Wietecha noted that the current contract expires in December. The committee indicated that Veolia (formerly Onyx) has done a very good job at a fair rate; their preference was to negotiate an extension of the contract.

g. Collective Bargaining Contracts. Wietecha noted that an initial meeting was scheduled for October 9 with the Wisconsin Professional Police Association. The committee asked that a meeting also be scheduled with the Teamsters Local 579 as soon as possible.

h. Employee Health Insurance Rates. Wietecha presented a memo from Human Resources Administrator Jodi Sam. Under the state’s Employee Trust Fund, the lowest cost qualified provider in Rock County for 2008 will be Unity Community. The city’s portion of insurance premiums is estimated to be about 12% higher in 2008 than in 2007.

i. 2008 Operating Budget. Jepperson noted that a special Common Council meeting would be held on September 27 for discussing the 2008 operating budget with department heads.

X. Adjournment. On a motion by Braunschweig, seconded by Roberts, the meeting adjourned at 7:05 pm.