Council Meeting Minutes 12-18-17
REGULAR COUNCIL MEETING
December 18, 2017
The City Council of the city of Fayette, Iowa, met Monday, December 18, 2017 at 5:30pm in the Fayette City Hall pursuant to law and rules of said council, Mayor Wenthe presiding.
Roll call: Present - Council members Larson, Nefzger, Tucker and Wulfekuhle. Absent – Kragnes.
Moved Wulfekuhle, seconded Nefzger, to approve the consent agenda consisting of the regular meeting minutes of 12/4/17, the claims list of 12/5/17 – 12/18/17, and the November 2017 Financial Reports. Roll call, all ayes, motion carried.
Treasurer's Balance for Fund Accounts as of November 30, 2017: Total November Receipts: $125,747.92 (General $40,488.75; Streets $15,454.50; Employee Benefits $21,071.09; LOST $15,013.40; TIF $13,134.66; Bolger $112.88; Library Fund $1,493.48; Water $4,526.75; Sewer $4,734.91; Sewer Fund $9,575.50; Storm Water $142). Total November Disbursements: $89,869.65 (General $36,865.54; Employee Benefits $11,440.57, Bolger $46.25; Library Fund $669.16; Debt $4,010.56; Water $9,018.12; Sewer $27,819.45). Treasurer’s Balance: $2,886,325.43.
Moved Larson, seconded Tucker, to approve the agenda as presented. All ayes to approve, carried.
Mayor Wenthe informed the council he had included some information on the last Fayette Community email asking for volunteers for different work groups in reference to the Creative Placemaking recommendations. He has the first agendas ready for each work group and is hoping the first set of meetings will be held in January. Upon Mayor Wenthe’s request and the Fayette Fire Departments recommendation, moved Larson, seconded Wulfekuhle, to reappoint Jason Rohde as Fayette Fire Chief for 2018. All ayes, carried.
Administrator/Clerk McGrane would like the council to consider hosting a City Finance 101 training in Fayette for city of Fayette board members, department supervisors, crew chiefs, council members, etc. The Iowa League of Cities would put on the training, which will give the participants tools to understand government financial information to assist with purchases, budgeting, projects and safeguarding the assets of our community. The cost of the training is $500. The council recommended choosing some dates to host the training and place it on the next council agenda to discuss.
Police Chief Pisanti advised that there is nothing new to report.
Moved Tucker, seconded Nefzger, to approve the Fayette Community Library Board Minutes from November 8, 2017. All ayes, carried.
Moved Wulfekuhle, seconded Larson, to have Maggie Burger with Speer Financial, Inc., the city’s Financial Advisor, give a presentation on Fayette’s finances. Maggie explained that the State Revolving Fund (SRF) now requires the use of a Financial Advisor. The SRF is acting as an underwriter, meaning they are the ones buying bonds, and they can no longer provide financial advice. Instead, we must depend on someone else such as a Financial Advisor. Since the SRF is forcing the use of a Financial Advisor, they will pay the Financial Advisor fee, up to $4,000. As of July 1, 2018, Fayette’s actual value for debt limit calculation is $46,641,962 (total assessed value, no rollback is figured into this). The state code says cities can borrow up to 5% of this amount, which means Fayette’s legal debt limit for FY18 is $2,332,098. As of this month, the city does not have any General Obligation debt outstanding. The city currently has revenue debts (which do not count against the debt capacity), which would include water, sewer and storm water. The city does have outstanding rebate agreements, which would be TIF rebate agreements. This amount does count against the debt capacity, which is $198,354. That leaves the remaining legal debt margin of $2,133,744. Speer Financial recommends cities to never borrow more than 80% of what the total debt capacity is. That leaves 20% available for emergencies, which is $466,420, leaving a legal debt margin of $1,667,324. Maggie put together an analysis of Fayette’s water and sewer utility systems. The council has a 2% rate increase each year for water and sewer which is good as Maggie recommends assuming a 2% increase in expenses each year as prices for everything goes up. The water utility fund system is currently not bringing in enough money to cover all the expenses and the water tower loan, so we are drawing down on cash balances. Since the water tower loan will be paid off this fiscal year, the water system fund will start getting caught back up. Overall, the sewer system fund seems to be keeping up, but the water system fund is not, but will hopefully start next fiscal year. If we have any future water projects within the next ten years or so, our water rates will probably not be enough to cover the costs of a revenue loan. Maggie also provided some financial examples for a few different projects, including the Downtown/Main St. project and the Water St. project. The examples included some estimates on how much the tax rates would need to increase to cover the project.
There being no further business, moved Nefzger, unanimous, to adjourn at 6:23pm.