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HomeMy WebLinkAbout10-11-2011 Clerical Committee Meeting Minutes CLERICAL COMMITTEE Tuesday October 11, 2011- 6:30 p.m. Donald E. Edwards Way 50 North 4th Avenue Canton IL 61520 Aldermen in attendance: Dave Pickel, Justin Nelson, Jim Hartford, Jeff Fritz, Aldermen absent: Jeremy Pasley, Eric Schenck, Craig West, Gerald Ellis Staff in attendance: City Clerk Diana Tucker, City Attorney Chrissie Peterson, City Administrator Jim Snider, Mayor Kevin Meade, Comptroller Caty Campbell, Police Chief Dan Taylor, Fire Chief Keith Frank, Joe Ginger Video Services. SRPED Mark Rothert In the audience: Dan Oaks, Phil Fleming News Media- John Froehling from Daily Ledger. Finance Alderman Craig West, Chairman (Absent) BILLS A non reoccurring bill was presented for payment on this month's bill list. The bill was from ID Network for a live scan network in the amount of $3,195.00. Generally the bill is paid from the gaming fund; however the City has not received the funds at this time from the state. The bill will be paid from the general fund until the City receives the fund. Once the City receives the funds the money will be transferred. TREASURER'S REPORT City Comptroller Caty Campbell reported the following: The total cash at the end of September was just over 2.8 million. The total investments are 6.76 million. The general fund CD matured at the end of September and it was renewed at .9% for another six months. The City is now at approximately 95% collected for property tax funds in the general fund and the TIF funds are approximately 98% collected. The budget comparison general fund reflects a loss of approximately $8,000 and the water and sewer fund has a gain of $228,000.00 at the end of September. FY 2010-2011 Audit Report Aaron Phillips complimented City Clerk Diana Tucker and Comptroller Caty Campbell for the work in this year's audit. Aaron explained that this year's audit went much better than last year. Aaron further explained that various disbursements and payrolls are tested to provide a level of unpredictable testing. The bank reconciliations were done and not many adjustments were needed. Aaron explained that the City is not tracking grants as effectively as they should be and this is one area that improvements could be made. Comptroller Caty Campbell has discussed this area with the auditors and plans are in place to make improvements with the tracking of grants. A lack of segregation of duties (especially on the receipt side) was another area that could use some improvements. Overall the City is in pretty good financial shape. The assets are comprised of 50% equity and 50% debt. The liability section reflects bonds and loans payable in the amount of $4,400,000 which is the money borrowed for the IH TIF-- This will need to be refunded soon. Before these were issued there was not a lot of debt outside of the water and sewer fund. A plan needs to be in place to repay this debt. The large amounts of liability related to the water and sewer redevelopment after 2005--- this is being paid down at a good rate. The total expense for the City is approximately 14.5 million dollars. 37% of this amount is for payroll. This year 5.4 million was spent on payroll. This amount is down $50,000.00 from last fiscal year. The water and sewer is approx 37% while the police and fire is 32%. The general fund cash balance last year was 1.9 million. This year the balance is 2.6 million. The IH site TIF brought in $200,000.00 in revenue. Attached are the two management letters provided for this year's audit. To the City Council City of Canton We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Canton, Illinois for the year ended April 30, 2011, and have issued our report thereon dated October 10, 2011. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, as well as certain information related to the planned scope and timing of our audit. Professional standards also required that we communicate to you the following information related to our audit. REQUIRED COMMUNICATIONS TO THE COUNCIL Our Responsibilitv under U.S. Generally Accepted Auditin~ Standards Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you, dated May 9, 2011. Si~nificant Audit Findin~s Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant Accounting policies used by the City of Canton are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during 2011. We noted no transactions entered into by the governmental unit during the year for which there is a lack of authoritative guidance or consensus. There are no significant transactions that have been recognized in the financial statements in a different period than when the transaction occurred. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimate affecting the financial statements was management's estimates of the useful lives of capital assets. The useful lives are based on the expected future years of service. We evaluated the key factors and assumptions used to develop the useful lives in determining that they are reasonable in relation to the financial statements taken as a whole. City of Canton, Illinois Page 2 ~ The disclosures in the financial statements are neutral, consistent, and clear. Certain financial statement Disclosures are particularly sensitive because of their significance to financial statement users. The most Sensitive disclosure affecting the financial statements was the disclosure of retirement plans and other Post employment benefits in Notes 9& 14 to the financial statements. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. The following is a list of the material adjustments made during the audit: Net Asset Effect Capitalize Water & Sewer Fund additions to capital assets $4,490,856 Record depreciation in the Water & Sewer Fund (848,268) Record changes in market value of Fire Pension Investments 306,981 Record changes in market value of Police Pension Investments 874,382 Transfer 61 Eastside Square costs from General Fund to IH-TIF Fund General Fund 577,189 IH-TIF Fund (577,189) Transfer 3rd Avenue grant eligible expenses out of the IH-TIF Fund IH-TIF Fund 401,221 3rd Avenue Capital Project Fund (401,221) Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be Significant to the financial statements or the auditor's report. We are pleased to report that no such Disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated October 10, 2011. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a"second opinion" on certain situations. If a consultation involves application of an accounting principle to the governmental unit's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the governmental unit's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Supplementary Information With respect to the supplementary information accompanying the financial statements, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. This information is intended solely for the use of the City Council and management of City of Canton, Illinois and is not intended to be and should not be used by anyone other than these specified parties. October 10, 2011 Phillips, Salmi & Associates, LLC 112 S. Main St. Washington, IL 61571 We are providing this letter in connection with your audit of the financial statements of City of Canton, Illinois, as of April 30, 2011 and for the year then ended for the purpose of expressing an opinion as to whether the financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, major fund, and the aggregate remaining fund information of the City of Canton, Illinois, and the respective changes in financial position and cash flows, where applicable, in conformity with the modified cash basis of accounting, and other comprehensive basis of accounting. We confirm that we are responsible for the fair presentation of the previously mentioned financial statements in conformity with the modified cash basis of accounting (accrual basis for pension funds) which is an other comprehensive basis of accounting. We are also responsible for adopting sound accounting policies, establishing and maintaining effective internal control, and preventing and detecting fraud. We confirm, to the best of our knowledge and belief, as of the date of this letter, the following representations made to you during your audit. 1. The financial statements referred to above are fairly presented in conformity with the modified cash basis of accounting (accrual for pension funds) and include all properly classified funds and other financial information of the primary government and all component units required to be included in the financial reporting entity. There are no component units. 2. We have made available to you all- a. Financial records and related data and all audit or relevant monitoring reports, if any, received from funding sources. b. Minutes of the meetings of City Council or summaries of actions of recent meetings for which minutes have not yet been prepared. 3. There have been no communications from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices. 4. There are no material transactions that have not been properly recorded in the accounting records underlying the financial statements or the schedule of expenditures of federal awards. 5. We believe the effects of the uncorrected financial statement misstatements summarized as follows are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. There are none. 6. We acknowledge our responsibility for the design and implementation of programs and controls to prevent and detect fraud. 7. We have no knowledge of any fraud or suspected fraud affecting the entity involving: a. Management, b. Employees who have significant roles in internal control, or c. Others where the fraud could have a material effect on the financial statements. 8. We have no knowledge of any allegations of fraud or suspected fraud affecting the entity received in communications from employees, former employees, analysts, regulators, or others. 9. We have a process to track the status of audit findings and recommendations. 10. We have provided our views on reported findings, conclusions, and recommendations, as well as our planned corrective actions, for the report. 11. The City has no plans or intentions that may materially affect the carrying value or classification of assets, liabilities, or fund equity. 12. The following, if any, have been properly recorded or disclosed in the financial statements: a. Related party transactions, including revenues, expenditures/expenses, loans, transfers, leasing arrangements, and guarantees, and amounts receivable from or payable to related parties. b. Guarantees, whether written or oral, under which the City is contingently liable. c. All accounting estimates that could be material to the financial statements, including the key factors and significant assumptions underlying those estimates and measurements. We believe the estimates and measurements are reasonable in the circumstances, consistently applied, and adequately disclosed. 13. We are responsible for compliance with the laws, regulations, and provisions of contracts and grant agreements applicable to us, including tax or debt limits and debt contracts; and we have identified and disclosed to you all laws, regulations and provisions of contracts and grant agreements that we believe have a direct and material effect on the determination of financial statement amounts, or other financial data significant to the audit objectives, including legal and contractual provisions for reporting specific activities in separate funds. 14. There are no- a. Violations or possible violations of budget ordinances, laws and regulations (including those pertaining to adopting, approving, and amending budgets), provisions of contracts and grant agreements, tax or debt limits, and any related debt covenants whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency, or for reporting on noncompliance. b. Unasserted claims or assessments that our lawyer has advised us are probable of assertion and must be disclosed in accordance with Financial Accounting Standards Board (FASB) Statement No. 5, Accounting for Contingencies. c. Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by FASB Statement No. 5. d. Reservations or designation of fund equity that were not properly authorized and approved. 15. As part of your audit, you prepared the draft financial statements and related notes and schedule of expenditures of federal awards. We have designated a competent management- level individual to oversee your services and have made all management decisions and performed all management functions. We have reviewed, approved, and accepted responsibility for those financial statements and related notes and schedule of expenditures of federal awa rds. 16. The City has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset been pledged as collateral except as made known to you. 17. The City has complied with all aspects of contractual agreements that would have a material effect on the financial statements in the event of noncompliance. 18. The financial statements include all component units as well as joint ventures with an equity interest, and properly disclose all other joint ventures and other related organizations. There are none. 19. The financial statements properly classify all funds and activities. 20. All funds that meet the quantitative criteria in GASB Statement Nos. 34 and 37 for presentation as major are identified and presented as such and all other funds that are presented as major are particularly important to financial statement users. 21. Net assets components (invested in capital assets, net of related debt; restricted; and unrestricted) and fund balance reserves and designations are properly classified and, if applicable, approved. 22. Provisions for uncollectible receivables have been properly identified and recorded. 23. Expenses have been appropriately classified in or allocated to functions and programs in the statement of activities, and allocations have been made on a reasonable basis. 24. Revenues are appropriately classified in the statement of activities within program revenues, general revenues, contributions to term or permanent endowments, or contributions to permanent fund principal. 25. Interfund, internal, and intra-entity activity and balances have been appropriately classified and reported. 26. Deposits and investment securities are properly classified as to risk, and investments are properly valued. 27. Capital assets, including infrastructure assets, are properly capitalized, reported, and, if applicable, depreciated. 28. Required supplementary information (RSI) is measured and presented within prescribed guidelines. We acknowledge our responsibility for the required supplementary information. The RSI is measured and presented within prescribed guidelines and the methods of ineasurement and presentation have not changed from those used in the prior period. We have disclosed to you any significant assumptions and interpretations underlying the measurement and presentation of the RSI. We acknowledge our responsibility for presenting the RSI in accordance with accounting principles generally accepted in the United States of America, and we believe the RSI, including its form and content, is fairly presented in accordance with accounting principles generally accepted in the United States of America. The methods of ineasurement and presentation of the R51 have not changed from those used in the prior period, and we have disclosed to you any significant assumptions or interpretations underlying the measurement and presentation of the supplementary information. 29. With respect to federal award programs: a. We are responsible for complying and have complied with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. b. We have, in accordance with OMB Circular A-133, identified in the schedule of expenditures of federal awards, expenditures made during the audit period for all awards provided by federal agencies in the form of grants, federal cost-reimbursement contracts, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, insurance, food commodities, direct appropriations, and other assistance. c. We are responsible for complying with, and have complied with in all material respects, the requirements of laws, regulations, and the provisions of contracts and grant agreements related to each of our federal programs and have identified and disclosed to you the requirements of laws, regulations, and the provisions of contracts and grant agreements that are considered to have a direct and material effect on each major federal program. d. We are responsible for establishing and maintaining, and have established and maintained, effective internal control over compliance requirements applicable to federal programs that provides reasonable assurance that we are managing our federal awards in compliance with laws, regulations, and the provisions of contracts and grant agreements that could have a material effect on our federal programs. We believe the internal control system is adequate and is functioning as intended. Also, no changes have been made in internal control over compliance or other factors to the date of this letter that might significantly affect internal control, including any corrective action taken with regard to reportable conditions (including material weaknesses) reported in the schedule of findings and questioned costs. e. We have made available to you all contracts and grant agreements (including amendments, if any) and any other correspondence with federal agencies or passthrough entities relating to major federal programs. f. We have received no requests from a federal agency to audit one or more specific programs as a major program. g. We have complied, in all material respects, with the compliance requirements, including when applicable, those set forth in the OMB Circular A-133 Compliance Supplement, relating to federal awards and have identified and disclosed to you all amounts questioned and any known noncompliance with the requirements of federal awards, including those resulting from other audits or program reviews. h. Amounts claimed or used for matching were determined in accordance with relevant guidelines in OMB Circular A-87, Cost Principles for State, Local, and Tribal Governments, and OMB's Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments. i. We have disclosed to you our interpretation of compliance requirements that may have varying interpretations. j. We have made available to you all documentation related to the compliance requirements, including information related to federal program financial reports and claims for advances and reimbursements. k. Federal program financial reports and claims for advances and reimbursements are supported by the books and records from which the financial statements have been prepared. I. We have charged costs to federal awards in accordance with applicable cost principles. m. The copies of federal program financial reports provided you are true copies of the reports submitted, or electronically transmitted, to the respective federal agency or pass-through entity, as applicable. n. We are responsible for and have accurately prepared the summary schedule of prior audit findings to include all findings required to be included by OMB Circular A-133 and we have provided you with all information on the status of the follow-up on prior audit findings by federal awarding agencies and pass-through entities, including all management decisions. o. We are responsible for and have accurately prepared the auditee section of the Data Collection Form as required by OMB Circular A-133, and we are responsible for preparing and implementing a corrective action plan for each audit finding. No events, including instances of noncompliance, have occurred subsequent to the balance sheet date and through the date of this letter that would require adjustment to or disclosure in the aforementioned financial statements or in the schedule of findings and questioned costs. Signed: Signed: Title: Title: 2011 Tax Levv City Administrator Jim Snider will have more information within two weeks for a levy to be approved in November and passed and filed in December. Electricitv- Ameren City Administrator Jim Snider reported that he has been working with the City's current consultant. (Integrys). The City has saved over $160.000.00 per year with Integrys for electric costs. The City selected Integrys approximately a year and half ago. Recently the City added some smaller Ameren accounts that will be an additional $1600.00 per year savings. Due to new regulations several cities in the state are entering into an agreement to aggregate their electricity for their citizens. Most of the cities in the Peoria area are using Good Energy. The council also is considering Blue Star as an option. The process would require a consultant to be selected. The consultant would be the supplier of electricity that could create a savings to residents in the amount of $125.00/year on their electric bill. Once a consultant is selected an agenda item will be brought forward to vote for a referendum on the ballot next spring. This will allow the citizens to vote on the process. Citv Treasurer Nikki Marter will be sworn in next Tuesday night. Nikki will begin as the new City Treasurer and will be starting next Monday (October 17, 2011) The segregation of duties will take place with the new treasurer. Legal& Ordinance Alderman Jeff Fritz, Chairman Pavin~ options for the mini stora~e buildin~ at enterarise lane City Engineer Keith Plavec explained that the Tindal's are proposing a storage unit at the enterprise drive and would like to approach the committee about waiving the paving requirements or just ask for an extension. Byron Tendall discussed the building permit he received on October 1, 2011. Maurer and Stutz notified Byron that he would have to pave completely around the mini storage unit. Byron further explained that when he first began the process he was told that he would have to pave in front of the business, but later found out that he would be required to pave completely around the building. Byron received two different bids for the project. One bid was in the amount of $19,485.00. The other bid was in the amount of $22,262.00. Byron was not originally preparing to pave completely around the mini storage building and requested either a variance not to pave completely around the unit or to be allowed 18-24 months to come up with the money to pave completely around the mini storage building. City Engineer Keith Plavec explained that the code book states that commercial properties need to have paved parking lots. The council previously agreed to have the City enforce the ordinance on record. Keith further explained that a bond would be required. This item will be further discussed next week. Parkin~ Avenue B- Mvrtle to Vine Alderman Nelson explained that some people have approached him regarding the traffic on Myrtle to Vine. Parking is currently allowed on both sides of the street but he would like to request to have no parking on one side of the street. Bill Terry recommended (after measuring the street) the east side of the road to have no parking. Open meetin~s act trainin~ for public officials Attorney Peterson explained the following: On lanuary 1, 2012, an amendment to the Open Meetings Act will become effective that requires all elected or appointed members of a public body to undergo mandatory training. All members of the City Council will have to complete the training. It also applies to all committees and sub-committees, including the Zoning Board of Appeals and Planning and Zoning Commission. Although the Act doesn't necessarily define "members of a public bod~', anyone with voting rights and anyone who is counted to constitute a quorum would be required to do this training. For members currently serving on a council or board, training is to be completed by January 1, 2013. For persons elected or appointed after January 1, 2012, they will have a 90 day period to complete the training after they take office. The mandatory training is available online, through the Illinois Attorney General's office at: http://foia.ilattornev~eneral.net/electronic foia trainin~.aspx. Once a member completes the training, he/she is required to file a Certificate of Training with the City Clerk. Currently, mandatory training does not include penalties for the official public body when training is not completed. However, other sections of the Open Meetings Act carry stiff penalties for failure to comply. It is quite likely that an additional amendment could be purposed to this act that will institute penalties for public officials and/or the public body when members fail to complete the training. Noise Ordinance Attorney Peterson explained that the noise ordinance has not been updated in many years. The City will revisit the city ordinance and will also provide a copy of the county's ordinance for review and comparison. Contract for purchase of real estate- lots 6& 7. Industrial Park Mark Rothert explained that an agreement is in the packet for an expansion of the Davis business at the Industrial Park. Joe Davis would like to expand his business and Mark recommended the approval of the request. Attorney Peterson explained that due to the fact that the property is in the TIF district the bidding process is different from the way the City would sell other property outside of a TIF district. The legal and ordinance committee adjourned at 7:13 pm Community & Industrial Development Alderman Jeremy Pasley, Chairman (Absent) Aldermen Fritz acted as temporary chair UPDATE FROM MARK ROTHERT SRPED EXECUTIVE DIRECTOR Mark Rothert provided the following update: Mark explained that much of his time during the past few weeks have been spent with Navistar. Today some TIF meetings were held prior to this committee meeting with the taxing districts to discuss amending the IH TIF, and reviewing annual reports. The Route 9 and Chestnut Street TIF were continued until November 1, 2011. A public hearing is scheduled for November 8, 2011. The Spoon River Scenic drive was very successful this year with over one thousand people attending. The new Harvest Inn opening was also very successful. Dana Smith did a very good job in organizing the Spoon River Scenic Drive. Hotel/Motel Tax repuest for $1000.00 from Canton School District Athletic Director Th~ Spaan River ~'ar~n~rship far Eco~~mic D~velopment ~aard at~ Directors rec,e~t~y vote~ ta recomm~~d suppor~ing a$1,040 r~~u~st for Hot~llMa~el ~ax funds from ~anton Hig~ School Athl~~ic D~r~ctor, J~n Grzanlch, t0 5~1~~10~C C~StS ~SSOCI~~~~ WIt~ ~l~lT Th~S~1Vli1~ B~Sk~t~a~l Tourna~ent an N~vember 21, ~2, ~S; &?bth, si~ilar ~a ~he requ~s~ t~~~ w~s ~pproved last y~ar, ~ T~a~ns play'lll~ ~hIS ~~ear inclu~e: ~ Chicaga M~rshaLl; ~ P~arla Uianual; ~ Ma~~rrib; ~ Illir~i C~~~ai; ~.d ~ Ca~ton dn~ gaal of th~ t~uu~am~nt is to attract fat~s ~nd farr~ily fr~m a11 ~f the tearris ~layin~ in th~ tourna~ent, t~erebv zncr~a~~ng usag~ af restaura~~s, hatel~, and gas stations, th~s ~reatin~ a tourismdraw~o Canton. This is the 3?t~ ~rear of ~h~ tour~a~nent, Retail Ads Mayor Meade discussed the idea of advertising for local businesses on the Canton television channel during the holiday shopping season. Mayor Meade requests the council to approve up to $5,000.00 to create up to five minutes of commercial time to highlight individual businesses. Any business that generates sales taxes would be eligible. The business would be requested to pay $50.00 and the city will match the $50.00 for the cost of the advertisement. This item will be further discussed at next week's council meeting. Davcare Center Keith Plavec explained that Jerry Jarnigan has not been complying with some of the requirements set forth and an architect should be contacted for some professional guidance with the plans for the daycare center at the old bowling alley (Four Seasons). Mr. Jarnigan purchased the building and the fire department visited the site and found that several renovations had been completed without a building permit. Maurer and Stutz met with Jerry and Todd Jarnigan to explain that a building code is in place and a permit was issued. The work was completed and inspected. The fire department then received a letter from the state fire marshal's office explaining that the proposed daycare center had 7 pages of deficiencies and two pages of operational expectations. The City would like to see the daycare open and be successful; however the codes must be met to ensure the safety of the children and staff. The Community & Industrial Development Committee adjourned at 7:32 p.m. Negotiations, Grievance & Personnel A/derman Dave Pickel, Chairman EAP This item is tabled. Leaf nro~ram Mayor Meade stated that the leaf program will begin next week and citizens are told to rake leaves to the terrace for the leaf program. The leaf program will follow the regular garbage routes. Locust Street Improvements Avenue A intersection should be open by the end of the week. The Main Street intersection should be open by the end of next week. 15t Avenue will be closed once Main Street opens Adiournment The Clerical Committee adjourned at 7:40pm The Clerical Committee adjourned at 7:40pm for executive session for the discussion of personnel and ~o tial la ` s~,. ker City Clerk