City Council

COMMISSION ON PUBLIC WORKS/UTILITIES COUNCIL ROOM MARCH 25, 2014 6:45 P.M. The Commission on Public Works/Utilities met in regular session, Chair Horn presiding. On roll call: all members present. The minutes of the previous meeting were declared approved. Director of Public Works Flynn reported on no burials at the cemetery, equipment maintenance, snow and ice removal from streets, parking lots and sidewalks, widening streets, pushing up snow dumps, removed dead trees from the cemetery and one at Listeman Park, hauling brush and compost, replacing old signs with the new reflectivity standard signs, opening storm drains, patching pot holes, and the frost depths have reached down far enough to warrant running a pencil lead size stream of water as a preventive measure, water consumption is up 100,000 gallons per day (usage is up about a third), the new water bills will also include the new water rate. Motion Quicker, second Neville, that Water bills Nos. 48 to 79 in the amount of $56,395.61 and Sewer bills Nos. 45 to 62 in the amount of $39,020.73 be paid. All Aye. Motion Mabie, second Weiers, to adjourn. All Aye. __________________________________________ Daryn J. Horn, Chair ___________________________________ Rex R. Roehl, Clerk ************ COMMON COUNCIL COUNCIL ROOM MARCH 25, 2014 7:00 P.M. The Common Council met in regular session, Mayor Mabie presiding. On roll call: all members present. The Pledge of Allegiance was recited. The minutes of the previous meeting were declared approved. Council Member Quicker reported on the March 12, 2014 meeting of the Historic Preservation Commission regarding: 1) discussion and work on the Historic Preservation Walking Tour brochure, 2) discussion on other historic preservation projects, and 3) authorized membership renewal in the Wisconsin Association of Historic Preservation Commissions. Council Member Glassbrenner reported on the March 20, 2014 meeting of the Neillsville Community Fire Hall Board regarding: 1) payment of bills, 2) thanking the City crew for keeping the parking lot and sidewalks clear this winter, 3) installation of a keyless lock on the service door, 4) reviewed the 2013 financial statements, and 5) discussed the sewer backup/water lateral break and building concerns. Council Member Horn reported on the March 25, 2014 meeting of the Commission on Public Works/Utilities regarding: 1) current activities, and 2) payment of bills. Mayor Mabie declared all reports filed as presented with the City Clerk. Scott Bolstad, Wisconsin Outreach Director for Senator Ron Johnson, introduced himself and relayed greetings from the Senator. Mike Lensmire, CliftonLarsonAllen, presented the City, Water, Sewer, TIF District #2, TIF District #3, Special Revenue Funds and Other Governmental Funds 2013 Annual Audit Reports regarding: 1) the auditor’s report and opinion that the financial statements are reported fairly, 2) the City has $3.4 million in General Fund Balance with $2.4 million in Unassigned Fund Balance, which is very strong financial condition, very stable and will help the City weather emergencies, it is a good position to be in, 3) both the water and sewer utilities show a positive change in net position and Rate of Return (Water $19,901 – 2.76% and Sewer $117,156 – 3.65%), the PSC recommends 8% Rate of Return, 4) TIF Districts #2 and 3 were reviewed – TIF Districts are large up-front investments ($2 million and $1.6 million respectively) recovered in future tax increments from the individual TIF Districts. The Council needs to be aware that TIF District #2 has a deficit of $923,517 with 8 years remaining. Its annual increment is about $91,000. This means the City will be about $196,000 short and will have to cover the deficit unless more development occurs, 5) risk disclosure on the City’s cash and investments were reviewed at year end, and everything was FDIC insured or collateralized – a good job was done on securing the funds, 6) reviewed the City’s long-term debt, including capital leases for the John Deere end loader and computer network, 7) the City’s statutory debt limit is $5.7 million, with current borrowing of $1.7 million – with $4 million available, the City is in very good shape, 8) the General Fund Budget Comparison was reviewed, 9) reviewed Compiled Schedules Report of debt service, non-lapsing funds, insurance, and water and sewer utilities Rate of Return – regulatory basis, 1)) reviewed the City’s internal control structure – lack of separation of duties, preparation of financial statements, and audit adjustments, and 11) in conclusion, the records are in very good working order, the staff was cooperative, the City had an overall good year, with good financial planning in place. Mayor Mabie, on behalf of the Council, thanked City Clerk-Treasurer Roehl and Deputy Clerk- Treasurer Clark for doing a great job for the City. Motion Horn, second Glassbrenner, to accept and file the 2013 annual audit report as presented. All Aye. The City Clerk presented a report on the City’s continuing appropriations accounts and their respective balances as of December 31, 2013. The following is a list of said accounts: Account No. 51100 Legislative/Council (Cable TV Broadcast Fund), Account No. 52100 Police Department (K-9 Fund), Account No. 53450 Parking Lots and Meters, Account No. 55110 Library, Account No. 55250 Parks & Recreation – Room Tax 30%, Account No. 55340 Celebrations, Account No. 55360 Christmas Decorations, Account No. 56300 Planning (Historic Preservation Brochures), Account No. 56600 Urban Development, Account No. 56700 Economic Development Administration, Account No. 56750 Tourism Promotion – Room Tax 70%, Account No. 57140 Public Buildings, Account No. 57220 Public Safety – Fire Department Vehicles, Account No. 57320 Machinery and Equipment, Account No. 57330 Street Construction, Account No. 57332 Bridges and Culverts, Account No. 57343 Sidewalks and Crosswalks, Account No. 57350 Airport, and Account No. 57620 Parks. City Clerk Roehl stated that Account No. 56600 Urban Development will need the Council’s attention, as it is in the red at year end 2013. Motion Neville, second Weiers, to carry forward to 2014 the continuing appropriations as presented. All Aye. City Attorney Wachsmuth read the following resolution. RESOLUTION NO. 572 A RESOLUTION BORROWING $181,500 FOR REFINANCING TIF DISTRICT #2 CONSTRUCTION LOAN WHEREAS, the City of Neillsville, Clark County, Wisconsin (hereinafter called the “City”), is presently in need of funds aggregating $181,500.00 for public purpose(s) of: Refinance TIF District #2 construction loan due to Associated Bank; and  WHEREAS, the Council deems it necessary and in the best interests of the City that, pursuant to the provisions of Section 67.12(12), Wisconsin Statues, the sum of one hundred eighty one thousand five hundred no/100 dollars ($181,500.00) be borrowed for such purposes upon the terms and conditions hereinafter set forth; NOW, THEREFORE, BE IT RESOLVED, that for the purposes hereinabove set for the City, by its Mayor (or City Manager) and Clerk, pursuant to Section 67.12(12), Wisconsin Statutes, borrow from Citizens State Bank of Loyal (“Lender”), the sum of $181,500.00, and, to evidence such indebtedness, said Mayor (or City Manager) and City Clerk shall make, execute and deliver to the Lender for and on behalf of the City the promissory note of the City to be dated March 25, 2015 in said principal amount with interest at the rate of two and nine tenths percent (2.900%) per annum and payable as follows: (b) Installments of Principal and Interest in 7 equal payments of $25,746.88 due on March 25, 2015 and on the same day(s) of each twelfth month thereafter, PLUS a final payment of the unpaid balance and accrued interest due on March 25, 2022. All payments include principal and interest. (d) Interest is payable at the times so indicated. Interest is computed for the actual number of days principal is unpaid on the basis of a 365 day year. Said interest to be payable on the dates set forth above on the outstanding principal balance, with prepayment privileges on any principal or interest payment date on or after March 25, 2014. BE IT FURTHER RESOLVED, that there be, and there hereby is, levied on all the taxable property of the City, a direct annual irrepealable tax sufficient in amount to pay the principal and interest on said note as the same becomes due and payable, said tax to be in the following minimum amounts: Amount of Tax To Meet Note Payments Year of Levy (principal and interest) Due On (must be in year(s) prior to due date) $25,746.88 March 25, 2015 For the Year 2014 $25,746.88 March 25, 2016 For the Year 2015 $25,746.88 March 25, 2017 For the Year 2016 $25,746.88 March 25, 2018 For the Year 2017 $25,746.88 March 25, 2019 For the Year 2018 $25,746.88 March 25, 2020 For the Year 2019 $25,746.88 March 25, 2021 For the Year 2020 $25,746.20 March 25, 2022 For the Year 2021 If at any time there shall be on hand insufficient funds from the aforesaid tax levy to meet principal and/or interest payments on said note when due, the requisite amount shall be paid from other funds of the City then available, which sums shall be replaced upon the collection of the taxes herein levied. In the event that the City exercises its prepayment privilege, if any, then no such direct annual tax shall be included on the tax rolls for the prepayments made and the amount of direct annual tax hereinabove levied shall be reduced accordingly for the year or years with respect to which said note was prepaid. In each of said levy years, the direct annual tax so levied shall be carried into the tax rolls each year and shall be collected in the same manner and at the same time as other taxes of the City for such years are collected; provided, that the amount of tax carried into the tax roll may be reduced in any year by the amount of any surplus in the debt service account for the note. So long as any part of the principal of, or interest on, said note remains unpaid, the proceeds of said tax shall be segregated in a special fund used solely for the payment of the principal of, and interest on, said note. BE IT FURTHER RESOLVED, that there be and there hereby is established in the treasury of the City, if one has not already been established, a debt service fund, separate and distinct from every other fund, which shall be maintained in accordance with general accepted accounting principles. Sinking funds established for obligations previously  issued by the City may be considered as separate and distinct accounts within the debt service fund. Within the debt service fund, there be and there hereby is established a separate and distinct account designated as the “Debt Service Account for Promissory Note dated March 25, 2014”, which account shall be used solely for the purpose of paying principal and interest on said note. There shall be deposited in said account any accrued interest paid on said note at the time it is delivered to the Lender, all money raised by taxation or appropriated pursuant hereto, and such other sums as may be necessary to pay principal and interest on said note when the same shall become due. BE IT FURTHER RESOLVED, that the proceeds of said not shall be used solely for the purposes for which it is issued, but may be temporarily invested until needed in legal investments, provided that no such investment shall be in such a manner as would cause said note to be an “arbitrage bond” with the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, or the Regulations of the Commissioner of Internal Revenue thereunder; and an officer of the City, charged with the responsibility for issuing the note, shall certify by use of an arbitrage certificate that, on the basis of the facts, estimates and circumstances in existence on the date of the delivery of the note, it is not expected that the proceeds will be used in a manner that would cause said note to be an “arbitrage bond.” BE IT FURTHER RESOLVED, that the projects financed by the note and their ownership, management and use will not cause the note to be a “private activity bond” within the meaning of Section 141 of the Internal Revenue Code of 1986, as amended, and that the City shall comply with the provisions of the Code to the extent necessary to maintain the tax-exempt status of the interest on the note. BE IT FURTHER RESOLVED, that the City Clerk shall keep records for the registration and for the transfer of the note. The person in whose name the note shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes and payment of either principal or interest on the note shall be made only to the registered owner thereof. All such payments shall be valid and effectual to satisfy and discharge the liability upon such note to the extent of the sum or sums so paid. The note may be transferred by the registered owner thereof by presentation of the note at the office of the City Clerk, duly endorsed for the transfer or accompanied by an assignment duly executed by the registered owner or his legal representative duly authorized in writing. Upon such presentation the note shall be transferred by appropriate entry in the registration records and a similar notation, including date of registration, name of new registered owner and signature of the City Clerk, shall be made on such note. BE IT FURTHER RESOLVED, that the note is hereby designated as a “qualified tax-exempt obligation” for purposes of Section 265 of the Internal Revenue Code of 1986, as amended, relating to the ability of financial institutions to deduct from income for federal income tax purposes, interest expense that is allocable to carrying and acquiring tax-exempt obligations. BE IT FURTHER RESOLVED, that the City officials are hereby authorized and directed, so long as said note is outstanding, to deliver to the Lender any audit statement or other financial information the Lender may reasonably request and to discuss its affairs and finances with the Lender. BE IT FURTHER RESOLVED, that said note shall be delivered to the Lender on or after the date of said note, upon receipt of the total principal amount of the loan evidenced thereby, plus accrued interest, if any, to date of delivery, provided that, if this is a refinancing, the refunding note shall be immediately exchanged for the note being refinanced. ____________________________________ Steven J. Mabie, Mayor ____________________________________ Rex R. Roehl, Clerk Motion Quicker, second Neville, that Resolution No. 572 be adopted. All Aye. City Attorney Wachsmuth reported that the City had served a Raze Order on Amy Symington, for her property at 303 W. Fifteenth Street on February 16, 2014. Symington was notified, she has not filed anything with the court, the 30 days has passed, and the City is ready to take the house down. The City does not have to go back to the court, since Symington did not respond. City Attorney Wachsmuth stated that she had been contacted by a man named Frank Ray, who was interested in purchasing the property and tearing it down. She informed him of the raze order, the back taxes on the property, the possibility of an unsatisfied mortgage on the property, and that the City would be discussing how to proceed on the property at tonight’s meeting. He is not present. Director of Public Works Flynn reported on a phone call from Attorney Thomas Harnisch last week regarding the property and raze order. Council Member Glassbrenner stated that there is some interest in the lot, but the City won’t recover its costs. How much would it cost to take the house down. Director of Public Works Flynn stated around $8,000 to $10,000 to raze property, we would advertise for bids. City Clerk Roehl reminded the Council that the Urban Development budget only has about $300 in it, therefore the Council will either have to delay another project or tap into City reserves. Discussion followed. Motion Glassbrenner, second Weiers, to authorize the Director of Public Works to advertise for bids to raze the property at 303 W. Fifteenth Street. All Aye. Mayor Mabie stated that on behalf of the Common Council, he would like to congratulate the Lady Warriors basketball team for bringing home the silver ball from the WIAA Division 3 State Tournament in Green Bay, and to thank Dan Thompson, Director of the League of Wisconsin Municipalities, for his work, service and support over the years, it was greatly appreciated and we wish him a long and happy retirement. Tavern Operator’s License Application: Randi J. Bryan Motion Horn, second Neville, to grant. All Aye. Motion Neville, second Glassbrenner, that City bills Nos. 286 to 331 in the amount of $752,398.32 be paid. All Aye. Motion Horn, second Neville, to adjourn. All Aye. __________________________________________ Steven J. Mabie, Mayor ___________________________________ Rex R. Roehl, Clerk