Regular Meeting
September 16, 2008
The
Mayor and Council of the City of Fairbury met in regular session in the
Council Chambers located at 612 D Street, Fairbury, Nebraska, on the 16th
day of September, 2008, at 7:30 p.m. In the absence of Mayor LaVeda Fry,
Council President Doug Brown called the meeting to order.
Notice of meeting was given in advance thereof by publication in the
Fairbury Journal News, Fairbury, Nebraska, the designated method of giving
notice, as shown by affidavit of publication. The Open Meetings Act was
posted in the meeting room as required by law.
Roll call found the following Council Members present: Doug Brown, Ron Byrd,
Don Trimm, Beryl Lueders, Shirley Bender, Brad Kuzelka, and Tim Polson.
Absent: Ed Friesen.
Council President Brown called for the submittal of forms to request future
agenda items. No forms were submitted during the meeting.
Council President Brown read the Consent Agenda:
1.
Approval of the minutes of the regular meeting of September 2, 2008.
2.
Approval of claims.
3.
Approval of the August 2008 Reconciliation Report.
4.
Approval of the resignation of Neal Frederick as curator for the
Fairbury City Museum.
5.
Approval of the reappointment of Cathy Kleine and Kendall Schlake to
the Planning Commission, term to expire September 2011.
6.
Approval of the appointment of Yvonne Ridder to the Planning
Commission, term to expire September 2011.
Trimm moved to approve the Consent Agenda. Motion seconded by Byrd. On
roll call, Brown, Byrd, Trimm, Lueders, Bender, Kuzelka, and Polson voted
“yes.” Friesen absent. Motion carried.
Council President Brown opened the Budget Hearing and Budget Summary for the
2008-2009 Fiscal Year. Brian Blobaum of Blobaum & Busboom, P.C. stated the
notice for the public hearing was published in the paper at least five days
in advance of this meeting and that September 20, 2008 is the deadline to
file the budgets with the Auditor of Public Accounts and the County Clerk
after which time the property tax can not be changed. Blobaum explained
that there are two things done during the budget process, which are
preparing property tax requests and setting expenditure limits for the year;
an overall limit for the entire city. Blobaum stated the maximum General
Fund levy is $.45 plus a $.05 levy for interlocal agreements; this levy is
shared with the Airport Authority and is at $.495 for the 2008-2009 Budget.
Blobaum explained to the Council that there are also limits of raising
revenues with the basic limit of 2.5% per year and that an additional 1% can
be done with a 75% majority vote of the Council. Blobaum strongly advised
the Council to vote in favor of allowing an additional 1% increase, for a
total of 3.5%. Blobaum stated the tax asking for the General Fund for the
2008-2009 Fiscal Year is $508,000; which requires a 46.98¢ levy and for the
Bond Fund it is $270,000; which requires a 24.97¢ levy. This is a total tax
asking of $778,000 which compared with the prior year was $710,900 which
equates to a 9.4% increase. The expenditure limits that have been set are
$6,035,578 for the General Fund and the Bond Fund is $271,544 and the Keno
Fund is $50,000. The Proprietary Funds have their own budget (which they
had their hearing in May); these numbers are included in this budget. The
budget notice in the paper includes these numbers so it is much larger
because of this. Blobaum continued with an overview of cash positions
historically and for the upcoming year, stating that although there was a
budgeted cash reduction of $113,629 in the current year; we don’t know how
that will turn out for the end of the year. The estimated yearend cash
reserves in the governmental funds should be approximately $939,000 of which
about $369,000 is reserved. The reserved funds are LB840 of $170,000, fire
equipment of $150,000 and the remainder is grants and trust funds. In the
early 80’s the cash reserve was as low as about $400,000 and in the 90’s the
reserve reached as high as $1.5 million. Blobaum stated the current cash
reserves of about $570,000, of the City, are still near a 30 year low.
Blobaum stated this is the budget as prepared by past City Administrator Jim
Ferneau and the Finance Committee. No one else spoke during the hearing.
Council President Brown declared the hearing closed.
Council President Brown opened the public hearing concerning the setting of
the final tax request for the 2008-2009 Fiscal Year for $508,000 for the
General Fund and $270,000 for the Bond Fund. Blobaum stated a separate
hearing is required whenever there is a change in the dollar amount of the
tax asking from the previous year per state statutes. No one else spoke
during the hearing. Council President Brown declared the hearing closed.
Council President Brown opened the public hearing regarding the Proposed
Text Amendment to the City of Fairbury Subdivision Regulations 2005
Edition. Building Inspector Eric Voss explained this section is to provide
for lot splits, lot combinations, and boundary adjustments which result in
lots divided or combined into not more than six tracts without having to
replat said lots. Voss stated they would still have to meet some
requirements; but they wouldn’t have to have an architect engineer stamp and
they could approve it administratively instead of having to go through all
the steps for subdivisions. Cathy Kleine with the Planning Commission
stated the way the original comprehensive plan was written was not very user
friendly and they are trying to make the comprehensive plan more user
friendly. If the subdivision of lots have existing utilities, streets,
etc., this would save a great amount of time and money. No one else spoke
during the hearing. Council President Brown declared the hearing closed.
Bender moved to approve the 2008-2009 Fiscal Year Budget as presented.
Motion seconded by Lueders. On roll call, Brown, Byrd, Trimm, Lueders,
Bender, Kuzelka, and Polson voted “yes.” Friesen absent. Motion carried.
Bender moved to approve an additional 1% increase in the 2008-2009
Restricted Funds Limitation. Motion seconded by Byrd. Blobaum stated have
to follow lid statutes when preparing the budget. The lid carries forward a
continuing number from year to year. The basics of the lid statute is to
control the growth of revenues of property tax, sales tax, etc. The only
thing we have control over is property tax; it allows a 2 ½% increase every
year; you can extend this by passing this additional 1% increase in
restricted funds authority. Budgeting to spend this additional money on
real estate improvements, payments on bonded debt and interlocal agreements
like our contract with the county for the law enforcement center. We
currently have real estate capital improvements budgeted of $505,200, of
which $230,573 is carried from previous years that was not spent. We have a
limitation, so need to make as wide as we can as we move to the future, to
give us more options. This has become tightened because of sales tax and
growth of property valuation. On roll call, Brown, Byrd, Trimm, Lueders,
Bender, Kuzelka, and Polson voted “yes.” Friesen absent. Motion carried.
Blobaum presented the City of Fairbury Enterprise Funds Financial Statements
and Schedules for Year Ending April 30, 2008. Blobaum stated his firm is
issuing a clean audit opinion but that he is required to report internal
control deficiencies. Blobaum stated one significant internal control
deficiency is the lack of separation of duties, which may be too costly to
warrant correction. Also records oversight in liability accounts not
reviewed in general ledger, misclassifications; this needs to be improved.
Blobaum stated the Light & Water Department shows a net income at the year
ending April 30, 2008 of $745,476 versus $577,945 last year; which are the
two best years by far in the last ten years. Labor costs had dropped from
previous year due to early retirements and employee benefits that were paid
out during the prior year. Cash reserves are growing in the utility funds.
Trimm moved to approve the revised agreement with the Fairbury Civic
Foundation for the Girl Scout Cabin. Motion seconded by Byrd. Polson
wanted to know what had been changed. City Attorney David Bargen
recommended adding language to Paragraph 5 “Each donor shall be so informed
upon his or her donation to the fund.” This paragraph states that donations
to the fund shall not be refundable. In the event of future demolition or
abandonment of the Girl Scout Cabin, a Foundation Board of Directors may
approve disbursement of the fund for other improvements in the Fairbury City
Park as the Board, in its discretion, may identify. Bargen felt this
language should be added so the donors will be informed up front of the
possibility their donation might be used for a different project should the
Girl Scout Cabin project be abandoned. On roll call, Brown, Byrd, Trimm,
Lueders, Bender, Kuzelka, and Polson voted “yes.” Friesen absent. Motion
carried.
Trimm moved to Lay on the Table Item #5 under Current Business – Update on
pending and potential litigation. Bargen stated this would be held in
closed session at the end of the council meeting. Motion seconded by Byrd.
On roll call, Brown, Byrd, Trimm, Lueders, Bender, Kuzelka, and Polson voted
“yes.” Friesen absent. Motion carried.
Council President Doug Brown read by title Resolution No. 695 designating
depositories of the City of Fairbury and approving the pledge of assets as
security from said banks. Polson moved to adopt Resolution No. 695. Motion
seconded by Byrd. On roll call, Brown, Byrd, Trimm, Lueders, Bender,
Kuzelka, and Polson voted “yes.” Friesen absent. Motion carried.
Council President Brown read by title Resolution No. 696 setting the
2008-2009 property tax request at $508,000 for the General Fund and $270,000
for the Bond Fund. Polson moved to adopt Resolution No. 696. Motion
seconded by Trimm. On roll call, Brown, Byrd, Trimm, Lueders, Bender,
Kuzelka, and Polson voted “yes.” Friesen absent. Motion carried.
Council President Brown read by title Resolution No. 697 consenting to the
amendment of Exhibit D to the Service Schedule M Total Power Requirements
Power Purchase Agreement with the Municipal Energy Agency of Nebraska (MEAN)
regarding participation in certain power projects. Byrd moved to adopt
Resolution No. 697. Motion seconded by Lueders. Superintendent of
Utilities Michael Beachler was present to answer any questions. No
questions were asked. On roll call, Brown, Byrd, Trimm, Lueders, Bender,
Kuzelka, and Polson voted “yes.” Friesen absent. Motion carried.
Council President Brown read by title Ordinance No. 2978: AN ORDINANCE
AMENDING THE CITY OF FAIRBURY SUBDIVISION REGULATIONS TO ADD A SECTION 3.09
– ADMINISTRATIVE SUBDIVISION. Bender moved to introduce Ordinance No. 2978
and provide for its first reading. Motion seconded by Polson. On roll
call, Brown, Byrd, Trimm, Lueders, Bender, Kuzelka, and Polson voted “yes.”
Friesen absent. Motion carried.
Bender moved to Take from the Table Item #5 under Current Business – Update
on pending and potential litigation. Motion seconded by Lueders. On roll
call, Brown, Byrd, Trimm, Lueders, Bender, Kuzelka, and Polson voted “yes.”
Friesen absent. Motion carried.
In
open session, Bender moved to enter into closed session for the purpose of
protecting the public interest, the subject matter of the closed session
being discussing pending and potential litigation; designating individuals
to remain as Council President Brown; Council Members Byrd, Trimm, Lueders,
Bender, Kuzelka, and Polson; City Attorney David Bargen; and City Clerk
Sharyl Preston. Motion seconded by Polson. On roll call, Brown, Byrd,
Trimm, Lueders, Bender, Kuzelka, and Polson voted “yes.” Friesen absent.
Motion carried. Council President Brown confirmed the purpose of the closed
session was to protect the public interest, and the subject matter for the
closed session is pending and potential litigation and announced the time of
the start of the closed session to be 8:04 p.m.
The
council came out of closed session at 8:28 p.m. Trimm moved to enter into
open session. Motion seconded by Byrd. On roll call, Brown, Byrd, Trimm,
Lueders, Bender, Kuzelka, and Polson voted “yes.” Friesen absent. Motion
carried.
Byrd moved to adjourn the meeting. Motion seconded by Bender. On roll
call, Brown, Byrd, Trimm, Lueders, Bender, Kuzelka, and Polson voted “yes.”
Friesen absent. Motion carried. Meeting adjourned at 8:29 p.m.
Douglas Brown, Council President
Attest: Sharyl Preston, City Clerk
