City Council

City Council of Jacksonville, Arkansas AGENDA Regular City Council Meeting September 3, 2015 7:00 p.m. 1. OPENING PRAYER: PAGE 2. ROLL CALL: 3. PRESENTA-TIONOF Regular City Council Meeting NIINUTES: August 20, 2015 1-70 4. APPROVALS AND/OR Regular City Council Meeting CORRECTION OF NIINUTES: August 6,2015 5. CONSENT AGENDA: Engineering Department: Regular Mo~ithlyReportIAugust City Engineer Jay Whisker 6. WATER DEPARTMENT: 7. WASTEWATER DEPARTMENT: 8. FIRE DEPARTMENT: Arkansas Fire EMS Service of the Year Award (Mayor Fletcher) 9. POLICE DEPARTMENT: 10. STREET DEPARTMENT: 11. SANITATION DEPARTMENT: 12. PARKS & REC. DEPT: UPDATE: FestiVille Report (Mayor Fletcher) 13. PLANNING COMMISSION: 14. GENERAL: RESOLUTION 731 (#02-2015) Authorizing the Mayor and City Clerk to sign necessary documents for property transfer regarding #40 Grace Street for 104 Galloway Circle (Mayor Fletcher) 12-13 15. APPOINTMENTS: PLANNING COMMISSION Appointment of Patrick Thomas to fill the unexpired term of Joe Ott term to expire 01/01/2018 16. ANNOUNCEMENTS: City Offices will be closed Monday, September 7th in observance of Labor Day Sanitation routes will run one day late City Council A G E N D A continued: September 3, 2015 ANNOUNCEMENTS continued: Senior Citizen Fundraising Bunko September l g t hbeginning 4:30 p.m at Landmark Baptist Church JacksonvilleINorth Pulaski School Board Election Tuesday, September 15th Early Voting at Courthouse September 8ththrough 1 4 ' ~ Early Voting at Jacksonville Community Center September 8'h through 1lth 10:OO a.m. to 5:00 p.m. ADJOURNMENT  CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 20, 2015 7:00 P.M. - 7:28 P.M. REGULAR CITY COUNCIL MEETING - CITY HALL - #1 MUNICIPAL DRIVE The City Council of the City of Jacksonville, Arkansas met in regular session on August 20, 2015 at the regular meeting place of the City Council. Alderman Bolden delivered the invocation and Vice Mayor Kenny Elliott led a standing audience in the "Pledge of Allegiance" to the flag. ROLL CALL: Aldermen: Bolden, McCleary, Sansing, Ray, Mashburn, Traylor, Twitty, Smith, and Howard answered ROLL CALL. Vice Mayor Kenny Elliott also answered ROLL CALL declaring a quorum. PRESENT NINE (9), ABSENT (0) . Mayor Fletcher was absent. Others present for the meeting were: City Attorney Robert Bamburg, Finance Director Cheryl Erkel, Human Resource Director Jill Ross, Public Works Director Jim Oakley, Police Chief Kenny Boyd, Fire Chief Alan Laughy, CDBG Director Theresa Watson, IT Director Scott Rothlisberger, 911 Director Tabby Hughes, Planning Commissioner Jim Moore, Patrick Thomas, Jennifer Martin, Johnny Simpson, Jessie Lindsey, Gerald Clark, and interested citizens, and members of the press. PRESENTATION OF MINUTES: Vice Mayor Kenny Elliott presented the minutes of the regular City Council meeting of August 6, 2015 for approval and/or correction at the next regularly scheduled City Council meeting. APPROVAL AND/OR CORRECTION OF MINUTES: Alderman Howard moved, seconded by Alderman Bolden that the minutes of the regular City Council meeting of 16 July 2015 be APPROVED. MOTION CARRIED. CONSENT AGENDA: REGULAR MONTHLY REPORT/FIRE DEPARTMENT Alderman Ray moved, seconded by Alderman Twitty to approve the regular monthly report for July 2015 from the Jacksonville Fire Department, reflecting a fire loss of $42,000.00 and a savings total of $305,000.00. REGULAR MONTHLY REPORT/POLICE DEPARTMENT Alderman Ray moved, seconded by Alderman Twitty to approve the Regular Monthly Report for July 2015 regarding annual crime statistical comparisons. Code Enforcement for July 2015 Assigned Calls 131 Self-Initiated Calls -- 252 Follow ups 351 Basketball Goals 5 Meetings/Court Hearings 10 Structures Inspected 1 Citations/Warnings Issued 17 Rental Properties Inspected 4 Notices/Letters Written 0 Properties Red Tagged 0 Vehicles Tagged 4 Search Warrants Served 0 Vehicles Towed 0 Structures Rehabbed 0 Lots posted 28 Structures Condemned 0  CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 20, 2015 7:00 P.M. -7:28 P.M. Signs removed 25 Houses Demolished by City 0 Trash cans tagged 2 Houses Demolished by Owner 1 Parking Violations 12 Tickets Issue 2 Grass Letters 113 Grass Mowed 45 REGULAR MONTH REPoRT/ANIMAL CONTROL Alderman Ray moved, seconded by Alderman Twitty to approve the regular monthly report for July 2015. ADOPTION FEES/FINES $1,475.00 CONTRIBUTIONS 0.00 TOTALS $1,475.00 In response to a question from Alderman Taylor, Chief Boyd stated that the increase in total complaint calls or CFS (Calls for service) can be either calls for the Police or self initiated activities by the Police. He related that they started a new pilot program in April, resulting in a more proactive stance by the Police rather than reactive. He noted that most of the other crime statistics, especially burglaries have decreased, which is due to the self initiated activities where the Police are doing community type oriented policing. ROLL CALL : Aldermen : Bolden, McCleary , Sansing , Ray, Mashburn, Traylor, Twitty, Smith and Howard voted AYE. MOTION CARRIED. WATER DEPARTMENT: WASTEWATER DEPARTMENTS: FIRE DEPARTMENT: POLICE DEPARTMENT: STREET DEPARTMENT: SANITATION DEPARTMENT: PARKS & RECREATION: PLANNING COMMISSION: GENEFULL: PRESENTATION OF 2014 CAFR by Gerald Clark of McAllister & Associates Mr. Clark stated that it is his privilege to present the Comprehensive Annual Financial Report ("CAFR") for the City of Jacksonville for the year ended December 31, 2014. The following is Mr. Clark's written report. Calendar year 2014 marks the 18t"onsecutive year that the City has prepared a Comprehensive Annual Financial Report. The 2014 annual report was prepared by the City's Finance Department. It contains financial statements audited by the City's auditing firm, McAlister & Associates, P.A., CPAs, and also pertinent financial, economic, demographic, and statistical information related to the City of Jacksonville over a ten- year period.  CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 20, 2015 7:00 P . M . - 7:28 P . M . The purpose of the report is to provide the City's elected officials, citizens, financial institutions, creditors, and other interested parties with detailed information concerning the financial condition and performance of the City of Jacksonville. Each year since 1997 and including the 2013 report, the City's CAFR has received the Certificate of Excellence in Financial Reporting awarded by the Government Finance Officers Association of the United States and Canada (GFOA). The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. The 2014 Comprehensive Annual Financial Report has also been submitted to GFOA for award consideration. The City is responsible for the preparation and fair presentation of the financial statements in accordance with generally accepted accounting principles. The City is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements. Our responsibility as auditors is to conduct the audit in accordance with generally accepted auditing standards and government auditing standards; to express an opinion on the City's financial statements; and to gather sufficient evidence to provide a basis for the audit opinion. Based upon our audit, we have rendered a clean^', or unmodified opinion on the City's financial st.atements for the year ended December 31, 2014. An unmodified opinion means that the financial statements have been prepared using accounting principles generally accepted in the United States of America (GAAP), do not contain material misstatements, and are fairly presented. Our Independent Auditor's Report is presented on page 9 of the CAFR. We have issued a formal management letter, included with the annual report, which is a customary by-product of the audit process and is intended to provide management with suggestions and guidance in the ongoing effort to improve internal controls. The management letter addresses the resolution of matters that were reported in the prior year audit, and contains three comments related to the 2014 audit. The following are financial highlights of the 2014 report: The first two financial statements in the CAFR are referred to as the government-wide financial statements. These statements include all funds of the City, with the exception of the Police and Fire pension trust funds. It also includes the Water, Wastewater, and A&P Commission as discrete component units.  CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 20, 2015 7:00 P.M. - 7:28 P.M. h The first of the government-wide financial statements is the Statement of Net Position. This statement is comparable to a balance sheet for a private business enterprise. The Statement of Net Position presents information on all of the City's assets and liabilities on a full accrual basis with the difference between the assets and liabilities reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The City's Statement of Net Position indicates total assets of the City were $62,215,000 at the end of 2014. This is a decrease of $1,216,000 from 2013. Of the total assets, $52M is capital assets, $4M is cash and investments, and $6M is accounts receivable and other assets. Total liabilities of the City were $12,182,000, a decrease of $2,095,000 from 2013. Of the $12M total liabilities, $8M is considered long-term obligations due beyond one year and $4M are considered current and other liabilities. Total assets exceeded total liabilities by $50,033,000 at the end of 2014. The amount by which assets exceed liabilities is referred to as the City's "Net Position". Net position is essentially composed of three components: the largest of which, for the City, is its investment in capital assets such as land, buildings, infrastructure, and machinery and equipment. This amount at the end of 2014 was $43,833,000 or 888 of total net position. These capital assets are used to provide services to the community and, as a result, they are not available for future spending. An additional portion of the City's net position is subject to external restrictions as to how the funds may be used, such as street and grant funds. At the end of 2014, the City's restricted net position totaled $1,831,000 or 3.7% of the total net position of the City. The balance, approximately $4,368,000 is considered an unrestricted net position. This amount is available to meet the City's ongoing obligations to its citizens and creditors.  CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 20, 2015 7:00 P.M. - 7:28 P.M. Sumrnary Statement of Net Position December 3 1,2014 and 201 3 Net P o s ~ t ~ o n Gobernrnen tal A c t ~ v~ t l e s 13~~1nesq-type Actlvlt~eq Total 2 0 14 2011 20 1 4 2013 2014 2013 Current a n d other assets $ 8,403.034 $ 9,052,959 $ 1.824,787 $ 1,613,384 $ 10.3 17,RZI $ 10,66(i,293 Capital asscts 50.43 1,628 5 1,105,083 1,465,190 1,659,2 1 1 5 1.896.R 19 2,764,294 Total assets 58,924,662 60.1 58.042 3.289,977 3.272.545 62,214.639 63,430,(87 - - 1.onp-ler~ii llab~litiesoutstanding 8.13 1,289 9,64 1,683 193.692 498,487 8,324.98 I 10,140,170 Other L~ab~lities 3,424,444 3,729,405 432,6 1 1 407,234 3,857,055 4,136,639 Net Po51t1ori Il~vestedIn c a p ~ t a lasqetq net o f related dcht 42,843,429 4 2 , 0 5 8 , l 14 989,853 887,393 43,833,282 42.945.507 Keqt~~ c t e d 1,831,423 1 , I 84,762 1,831 4.23 1,184,762 Lln~e\tr~cted 2,694,078 3,544,078 1,673,821 1,479,43 1 4,367,899 5,023,509 > The second of the government-wide financial statements is the Statement of Activities. This statement is comparable to an income statement for a private business enterprise. The Statement of Activities presents information showing revenues and expenses on a full accrual basis and how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave) The Statement of Activities indicates total revenues of the City increased in 2014 over 2013. 2014 revenues were $26,685,000 compared to $26,031,000 in 2013, an increase of about $654,000 or 2.5%. Total expenses decreased to $25,806,000 in 2014 from $26,607,000 in 2013 or 6.5%. Overall, revenues exceeded expenditures by $878,800 in 2014, resulting in an increase in net position for 2014.  CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 20, 2015 7:00 P.M. - 7:28 P.M. Summary Statement of Change in Net Position December 3 1-2014 and 20 13 Change in Net Positiun C h v e r n ~ n e n t a lActivities Business-rvne Activities Total Reve~~aes I'ro~rm?~ rcve~rrrc.~: Cliargcs for services Operating grants and contrihr~tions Capital &rantsand cnntrihutions (;~ni~rnlre \.en rrrs: Property taxes S~les taxcs Franchise taxes lnvcst~neritearnings Intergovernmental Keven~res (31inl(loss) on sales nf capital assets Othe~ 331,187 331,187 Total general revcnues -7 688 16,190,662 15,755,693 T o t a l revenues Fxpenses General government I'uhllc works Parks and recreation services PII~IIC safety !lousing and n e ~ g h b r h o o dp r o p n n i s Interest o n long-term debt knitat ion services E~nergericymedical services Totzrl expenses Change In net p o ~ t Ion before t ~ a n s f e r s 1,041,654 (1,422,958) (1 62,827) ( 1 52,893) 878,827 (1.575,RSl) Tran\lera (459,677) (S90,OOO) 459,677 590,000 C h a ~ ~ g111c net posltlon 581,977 (2.01 2,958) - 9 6,8 5 0 7 - , 9 1T5- - Net P o s ~ t l o n January 1 46,786,954 48.799,91 1 2 3(>6,824 1,929,717 49,153,778 50,729,628 Net l ' o s ~ t ~ o-n 1)ecemixr 7 1 8 47,368,970 646.786.954 $ 2,667,674 $ 2,766,824 $ 50.032.604 S 49,153,777 > Narrowing our focus to the group of funds referred to the "governmental funds", these funds include all funds with the exception of the pension trust funds, and the enterprise funds (Sanitation and EMS). Governmental funds are reported on the modified accrual basis of accounting, which combines accrual-basis accounting with cash-basis accounts. Under this method, revenues are recognized when they become available and measurable, generally within 60 days after year-end. k The City's governmental funds reported total 2014 revenues of $23,107,000 and total expenditures of $23,226,000. Net position of these funds decreased $235,000 during the year. > Sales tax revenues account for 58% of all City revenues were $13,406,000 in 2014, compared to $13,164,000 in 2013, an increase of 1.8% from 2013 sales tax revenue. State tax turnbacks and other intergovernmental revenues, such as grants, were $4,729,000 million in 2014 or approximately 218 of revenues; utility franchise taxes were just under $1,138,000 or 4.9% of total revenues.  CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 20, 2015 7:00 P.M. - 7:28 P.M. Comparative Statement of Revenues and Expenditures-Governmental Funds Percent Percent of Change 2012 2013 - 2014 Total Prior Year Revenues P r o p e r t y taxes $ 779,861 $ 782,292 $ 802,438 3.5 % 2.6 % Sales taxes 13,138,610 13,164,041 13,406,409 58.0 1.8 L ~ c e n s e sa n d p e r m i t s 160,514 123,447 133,586 0.6 8.2 Intergovernmental 5,310,202 4,674,667 4,729,464 20.5 1.2 Charges f o r servlces 1,056,207 1,081,303 1,119,187 4.8 3.5 F ~ n e sa n d f e e s 791,192 798,456 840,609 3.6 5.3 U t ~ I i t fyr a n c h ~ s etaxes 1,031,798 1,292,667 1,137,932 4.9 (12.0) Investment ~ncorne 21,136 7,026 5,059 0.0 (28.0) M~scellaneous 227,747 917,159 932,527 4.0 1.7 Total revenues Expenditures General g o v e r n m e n t Public w o r k s Parks a n d r e c r e a t i o n Police Fire Emergency c o m m u n i c a t i o n s Animal control H o u s i n g a n d n e i g h b o r h o o d programs D e b t se rvice Total expenditures $32,069,377 $27,951,574 $23,226 436 100.00 % (16.9) % 2. The City's General Fund finished 2014 with a fund balance of $2,435,403, which was a decrease of $669,575 from the December 31, 2013 fund balance. General Fund revenues of $19,839,000 were $120,000 over amended budgeted revenues for the year, while General Fund expenditures of $20,390,000 were $105,000 under budgeted expenditures for 2014.  CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 20, 2015 7:00 P.M. - 7:28 P.M. 2014 General Fund Operations Final Variance Budgeted Actual w i t h Final Amounts Amounts Budget Revenues $19,718,346 $19,838,533 $ 120,187 Expenditures 20,494,176 20,390,108 104,068 Revenues i n excess o f expenditures ( 775,830) (551,575) Other financing sources (uses) Transfers-in: (From Other Funds) 275,000 275,000 Transfe rs-out (393,000) (393,000) Total other financing sources (uses) ( 118,000) ( 118,000) Net change i n f u n d balances Fund balances, January 1 3,104,979 Fund balances, December 3 1 $ 2,435,403 > As a measure of the General Fund's liquidity, it is useful to compare total General Fund fund balance to total General Fund expenditures. The fund balance of $2,435,403 at December 31, 2014 represents approximately 12.0% of 2014 actual General Fund expenditures and approximately 11.88 of 2015 General Fund budgeted expenditures. As a general policy, the City's minimum target at the end of a fiscal year for the fund balance of the General Fund is 60 days (16%) expenditures based on the most recent completed year. At the end of 2014, the balance on hand was approximately 43 days of 2015 budgeted General Fund expenditures. This minimum level of fund balance is required to ensure funds availability for unforeseen emergencies that might impact the City's ability to pay for basic operations and also to guarantee the payment of debt obligations.  CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 20, 2015 7:00 P.M. - 7:28 P.M. General Fund Ending Fund Balance as a Percent of Next Year's General Fund Budgeted Expenditures General Fund Fund Balance % of Budgeted end of Budgeted Year Expenditures Previous Year Expenditures 2007 $15,265,213 $ 3,168,768 20.8% 2008 17,516,497 3,672,742 21.0% +GF Fund Balance % -+Budgeted Expend~tures In conclusion, I encourage you to read the Management's Discussion and Analysis included in the financial section and beginning on page 12, and also the notes to financial statements which begin on page 45. The MD&A analyzes the City's financial performance for the year, provides  CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 20, 2015 7:00 P.M. - 7:28 P.M. comparisons of the current year results to the prior year, and discusses both the positive and negative aspects of the comparison. The notes to the financial statements provide required detailed disclosures and descriptions of the financial statements. The preparation of this report would not have been possible without the dedication and committed services of key staff in the City's Finance Department under the leadership of Finance Director Cheryl Erkel. I would like to express our appreciation to all City staff who assisted US in the audit and whose efforts resulted in a timely and successful completion of this year's report. Finally, we want to express our appreciation once again to the City and the Council for allowing us the opportunity to serve as the City's auditors. We very much value our business relationship with the City of Jacksonville. Alderman Bolden moved, seconded by Alderman Mashburn to approve the audit and 2014 CAFR as presented. MOTION CARRIED. APPOINTMENTS: CIVIL SERVICE COMMISSION Alderman Bolden moved, seconded by Alderman Mashburn to approve the appointment of Jessie Lindsey for a term to expire 04/01/2019. MOTION CARRIED. JACKSONVILLE HOUSING AUTHORITY Alderman Bolden moved, seconded by Alderman Twitty to approve t h e appointment o f Jody Urquhart for a term t o expire 03/17/2020. MOTION CARRIED. ADJOURNMENT: Without objection, Vice Mayor Elliott adjourned the meeting at approximately 7:28 p.m. MOTION CARRIED. Respectfully, Susan L. Davitt MAYOR GARY FLETCHER City Clerk-Treasurer  CITY OF JACKSONVILLE To: Mayor Fletcher, Jacksonville City Council From: Engineering Department Please find below the consent agenda for the Engineering Department ENGINEERING REPORT FOR AUGUST 2015 PERMlTSlLlCENSE ISSUED Building Permits 18 Business License 8 INSPECTIONS PERFORMED Building l nspections 34 Electrical 40 Plumbing 33 HVACR 10  RESOLUTrolv NO. 731 (# 02 - 2015) A RESOLUTION APPROVING AND GRANTING AUTHORIZATION TO MA YOR FLETCHER AND CITY CLERK DAVIW FOR APPROVAL OF CERTAIN DOCUMENTS TO TRANSFER CERTAIN PROPERTY OWNED BY THE CITY OF JACKSONVILLE, A R M NSAS, FOR CERTAIN PROPERTY0 WNED BY D & D REAL ESTA TE RENTAL, INC. I N THE CITY; AND, FOR OTHER PURPOSES. WHEREAZ in efforts toward improvement of City facilities and to make better use of property owned by the City, City officials sought and received several responses to a Request for Proposals for exchange of property along Galloway Circle; and, WHEREAS, after consideration and negotiation, it is hereby found that the transfer proposal submitted by D & D Real Estate Rental, Inc. provides transfer of real property of equal monetary value and includes removal of the structure on D & D's lot. NOW, THEREFORE, BE I T RESOLVED BY THE CITY COUNCIL OF THE CITY OF JACKSONVILLE, A R M NSAS, THA T: SECTIONONE: Approval and authority is hereby granted for exchange between the City of Jacksonville and D & D Real Estate Rental, Inc. The City's property at #40 Grace Street, Jacksonville, legally described as Block 8, Lot 40, Briarfield Subdivision, Section Three, Phase 11, to the City of Jacksonville, Arkansas, will be exchanged for D & D's property at 104 Galloway Circle, legally described as Lot 332, Sunnyside Hills Addition to the City of Jacksonville, Arkansas. Because the properties have both been professionally appraised at Twenty Thousand Dollars ($20,000.00), no monetary amount will be exchanged. SECTION TWO: I n addition to the exchange of lots, D & D Real Estate Rental, Inc. has agreed to accept 137 Roosevelt Road, a/k/a Lot 225, Sunnyside Addition to the City of Jacksonville, in exchange for timely removal of the structure currently existing at 104 Galloway Circle. As a result, the City will have a clean lot on Galloway Circle that will be added to the Public Park in the area and relieved of the duty to continue to n-raintainthe property at 137 Roosevelt Road. SECTION THREE: Mayor Fletcher and City Clerk Davitt are hereby authorized to execute the necessary transfer documents, in form approved by the City Attorney, and to take such actions as may be appropriate to carry out the terms of this Resolution. Resolution No. 731 (#02 - 2015) Page Two SECTION FOUR: This Resolution, being necessary for the betterment of the public utility and in the continuing purpose of protecting the public's health and safety, shall be in effect from and after its date of adoption. APPROVED AND ADOPTED THIS DA Y OF SEPTEMBER, 2015. CU'Y OF JACKSONVILLK AR/C4NSAS MA YOR GAR Y FLUCHER SUSAN D A V m C/TYCLERK APPROVED AS TO FORM: ROBERT E BAMBURG, C.ATT-ORNEY