Finance Committee

City of Verona Finance Committee City Hall – 111 Lincoln Street Verona, WI 53593-1520 MINUTES FINANCE COMMITTEE May 14, 2018 The meeting was called to order by Chairperson Doyle at 6:30 p.m. in Conference Room D110 Roll Call: Chairperson Elizabeth Doyle, Alder Kate Cronin and Alder Chad Kemp were present. Also present: City Administrator Jeff Mikorski, Finance Director Brian Lamers, Director of Public Works Theran Jacobson, City Attorney Bryan Kleinmaier and Norman Barrientos from Barrientos Design. Discussion and Possible Action regarding approval of April 23, 2018 Finance Committee minutes: Motion was made by Cronin, seconded by Kemp to approve the April 23, 2018 Finance Committee minutes with no amendments. Motion carried 3-0. Discussion and Possible Action regarding the Preliminary 2018 Borrowing Plan Including Financing for Capital Projects: Lamers and Mikorski went through the projects and explained that the 2018 borrowing plan is at $9,985,000. Kemp asked about the Woods Road to County Highway M project which Jacobson explained the project. Doyle asked if there was any questions regarding the space needs for the Public Works building and there were no questions. Lamers pointed out the analysis from Ehlers and places the City in moderate assessment with the current borrowing plan and read Ehlers comment on that which includes that “moderate” means that metric is in the single A rating tier. Lamers explained this does not necessarily mean the City would be downgraded but is a possibility. If the downgrading would happen it would mean the interest rate would probably be higher for borrowing. Lamers also explained with the future borrowing the City would be borrowing over $10 million which the City would not be bank qualifying which is approximately an increase in .5% in interest. Jacobson explained he could overhaul the 5-year plan and remove or push projects back. Jacobson explained that after all the issuance of debt for the Public Works facility the projected increase needed in revenue for the water would be 12%, sewer would be 6% and storm water would be 8%. Jacobson stated that the current building is paid for and utilities are only getting charged operation cost and not rent for the use of the building which is keeping rates down. Lamers explained the concern about the current debt, the future of the city’s debt and not being sustainable at the rate we are now. No motion made at this time. Discussion and Possible Action regarding Approval of Contract with BS&A Software for New Financial Software: Lamers discussed the budget was initially $150,000 but we also included the time entry and business licensing and the current price with that is approximately $170,000. Motion was made by Kemp, seconded by Cronin to approve the Resolution for Administration to www.ci.verona.wi.us contract with BS&A Software to be forwarded to the City Council for approval. Motion carried 3-0. Discussion and Possible Action Regarding the City Investment Report for April 2018: Lamers went through the report and noted that there was nothing unusual. Discussion and Possible Action regarding the payment of bills: Motion was made by Kemp, seconded by Cronin to approve the payment of bills totaling $998,126.72. Motion carried 3-0. Adjournment: Motion was made by Cronin, seconded by Kemp, to adjourn the Finance Committee Meeting at 7:08 p.m. Motion carried 3-0. Respectfully submitted, Brian Lamers CPA Finance Director www.ci.verona.wi.us