Minutes: Finance Committee: June 2011

City of Evansville
Finance & Labor Relations Committee

Regular Meeting
Thursday, June 9, 2011, 5:30 pm
City Hall, 31 S. Madison St., Evansville, Wisconsin

MINUTES

I. Call to Order. The meeting was called to order at 5:30 pm by Chair Mason Braunschweig. Present: Alderpersons Mason Braunschweig, Todd Culbertson, and Jim Brooks. Also present: City Administrator Dan Wietecha.

II. Approve Agenda. Culbertson made a motion, seconded by Brooks, to approve the agenda. Motion approved unanimously.

III. Minutes of May 5, 2011. Culbertson made a motion, seconded by Brooks, to waive the reading of and to approve the minutes as presented. Motion approved unanimously.

IV. Citizen Appearances. None.

V. Water & Light Bills. Brooks made a motion, seconded by Culbertson, to accept the Water & Light bills in the amount of $643,151.09. Motion approved unanimously on a roll call vote.

VI. City Bills. Culbertson made a motion, seconded by Brooks, to accept the City bills in the amount of $237,180.98. Motion approved unanimously on a roll call vote.

VII. Unfinished Business:
a. Accounting and Billing Software. Brooks made a motion, seconded by Braunschweig, to recommend to Common Council approval of upgrade to Clarity accounting and billing software. Wietecha noted that this was a recommendation from the Water & Light Committee to FLR. Because this will be needed for a smart metering system in the future, WPPI Energy is offering a grant to cover the utility billing portion of the upgrade, approximately $28,000. They will also offer a 0% loan to finance the non-billing portion of the software, approximately $32,000. With reduced annual maintenance fees, the city would actually come out with a net savings. The upgrade also provides a timely opportunity to consolidate the accounting databases: streamlining office procedures and eliminating duplicative efforts. Motion approved unanimously on a roll call vote.

b. Refinance Post Office Property. Brooks made a motion, seconded by Braunschweig, to recommend to Common Council adoption of Resolution #2011-07, Borrowing $144,000 from State Trust Fund for Refinancing BCPL State Trust Fund Loan #02008047.01 (Post Office). Wietecha explained that last month Council had approved application for the loan and that this was the approval of the actual loan. The difference between 5.00% and 3.75% would save the city about $6700 in interest. Motion approved unanimously on a roll call vote.

c. Bridge Construction. Brooks made a motion, seconded by Culbertson, to recommend to Common Council adoption of Resolution #2011-08, Borrowing $159,000 from State Trust Fund for Financing East Main Street Bridge Replacement. Wietecha explained that last month Council had approved application for the loan and that this was the approval of the actual loan. Motion approved unanimously on a roll call vote.

d. State Budget. FLR noted some of the state budget items coming out of the Joint Finance Committee. Local impacts will be reviewed in detail when the State actually adopts its budget.

VIII. New Business:
a. Water & Light Projects. Culbertson made a motion, seconded by Brooks, to recommend to Common Council Resolution 2011-09, Authorizing the Issuance of a $330,000 General Obligation Promissory Note. Wietecha explained that two unanticipated projects would require financing and budget amendments. One, replacing the watermain under the East Main Street Bridge had been planned, but the budget estimate was much below the actual bid. Two, upgrading electric lines east of the city had been expected to occur a few years in the future, but tests this spring required doing the project now. Bids opened this afternoon for the line project were very competitive. Wietecha explained that the note had been negotiated directly with Union Bank and Trust for ten years at 3.27%; there are no prepayment restrictions. The note is a general obligation, since banks typically do not offer notes on revenue projects. Negotiating this note offered the most favorable terms compared to revenue bonds, a state trust fund loan, and other finance mechanisms. The city will still be below its targeted limit for outstanding general obligation debt. Motion approved unanimously on a roll call vote.

b. Teamsters 695 Grievance. Wietecha noted that the Teamsters Local Union #695 has filed a request for grievance arbitration with the Wisconsin Employment Relations Commission. Their request did not conform to the grievance process of our collective bargaining agreement. An arbitrator has been selected; next steps are synching up schedules for the arbitration hearing.

IX. Adjournment. Culbertson made a motion, seconded by Brooks, to adjourn the meeting. Motion approved unanimously at 6:15 pm.