Regular Meeting
September 6, 2011
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 6th day of September 2011, at
7:30 p.m. Mayor Homer L. Ward 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 and pointed out by
Mayor Ward as required by law.
Roll call found the following Council
Members present: Doug Brown, Rick Carmichael, Roger Bailey, Tim Polson,
Joshua Vossler, Shirley Bender, Brad Kuzelka, and Kelly Davis.
Mayor Ward called for the submittal of forms
to request future agenda items. No forms were submitted during the
meeting.
Mayor Ward read the Consent Agenda:
1.
Approval of the minutes of the
regular meeting of August 16, 2011.
2.
Approval of claims.
Bailey moved to approve the Consent Agenda.
Motion seconded by Carmichael. On roll call, Polson, Bailey, Carmichael,
Brown, Vossler, Bender, Kuzelka, and Davis voted “yes.” Motion carried.
Mayor Ward opened the Budget Hearing and
Budget Summary for the 2011-2012 Fiscal Year.
Brian Blobaum of Blobaum & Busboom, P.C.
explained the budget process has two legal items that it addresses. One is
setting the dollar amount of property tax request that we will be levying on
properties for the coming year for the General Fund and the Bond Fund; and
the other is, setting an overall expenditure limit for the City for the
entire year. Blobaum stated all the extra data of spreadsheets and line
items are internal numbers that are put together. The total of those
creates a legal limit; so we’re not limited by line item or by fund, we’re
limited by the total. Blobaum stated the overall property tax asking for
this budget, which was published, in the General Fund for the 2011-2012
Fiscal Year is $493,079.00 and in the Bond Fund is $206,355.00. This is a
total tax asking of $699,434.00, which compared with the prior year of
$762,175.00 is an 8.2% total decrease from the prior year. (Last year the
tax asking in the General Fund was $509,427.00 and in the Bond Fund was
$252,748.00.) Blobaum stated the levy will drop from .706468 to .668575.
The overall limits of expenditures that are set up in this budget are the
cash balances that we have on hand, plus anticipated revenues, less normal
operating expenditures. Then we have budgeted basically all the money that
we have generated plus our cash reserves to be able to be spent as capital
outlay items. Blobaum stated the expenditure limits in the General Fund for
2011-2012 we’re budgeting $5,555,143.00, in the Bond Fund for 2011-2012
we’re budgeting $1,584,396.00 and in the Keno Fund for 2011-2012 we’re
budgeting $108,220.00. Blobaum stated in the Bond Fund the expenditure
limit is budgeted at $1,584,396.00 which includes a $1,000,000.00
contingency for potential bond projects as well as $315,009 cash reserve
budgeted for prepayment. Blobaum continued with an overview of cash
positions historically and for the upcoming year, stating that in comparing
the General Fund budget to prior years budgets – he looks at budgeted
reduction in cash reserves and adjusts for rebudgeted funds such as LB840
(which really isn’t our money to spend on anything); so subtracts that out
of the reduction. In comparison, in 2008-2009 we budgeted to reduce cash
reserves with those adjustments by $113,629.00 and actually increased the
cash reserves by $283,480.00; in 2009-2010 we budgeted to reduce cash
reserves by $118,854.00 and actually increased the cash reserves by
$81,644.00; in 2010-2011, the current year, we budgeted to reduce cash
reserves by $54,854.00 and estimating we will decrease cash reserves by
approximately $491,012.00 – however the large projected decrease in reserves
for 2010-2011 fiscal year includes a $477,371.00 projected decrease in LB840
reserve funds, leaving little change in unrestricted cash; and for 2011-2012
we’ve budgeted to reduce cash reserves by $44,713.00. However, we don’t
know how the current year will turn out; if we will have an increase or
decrease; usually we come out better than what we have said. The estimated
year end cash reserves, on October 1, 2011, in the governmental funds (not
utility funds) should be approximately $1,419,000.00 of which about
$177,000.00 is reserved; not available for general purposes such as
salaries, etc. The reserved funds, which we can not touch, are LB840 of
$76,000.00, fire equipment of $31,000.00 and $70,000.00 of grants and trust
funds. In the early 80’s the expendable cash reserve was as low as about
$400,000.00 and in the 90’s the reserve reached as high as $1.5 million.
Blobaum stated the available projected cash reserves in the General
(non-utility) funds, at about $1,240,000.00, would be above the historical
average; we’re in a pretty good position.
No one else addressed the Council during
the public hearing. Mayor Ward declared the hearing closed.
Mayor Ward opened the
Public Hearing concerning setting of the final tax request for the
2011-2012 Fiscal Year for the General Fund
in the amount of $493,079.00 and the Bond Fund at $206,355.00.
Blobaum stated this hearing is a special
hearing that is required when the dollar amount of property tax request has
changed from the prior year; we have to set the new dollar amounts. Blobaum
stated the 2010-2011 overall property tax request was $762,175.00 compared
to $699,434.00 for 2011-2012. Blobaum stated the overall decrease in the tax
asking is 8.2% for both the General Fund and the Bond Fund.
No one else addressed the Council during
the public hearing. Mayor Ward declared the hearing closed.
Mayor Ward read from
the agenda “consider recommendation from the Board of Public Works (BOPW) to
build 5 miles of line from Harbine to Ellis.”
Jim Morehead, Electrical Distribution
Superintendent, addressed the Council. Morehead stated the BOPW has nine
small towns they take care of – build lines, cut trees, etc. Morehead
stated the load has picked up immensely. Morehead stated the BOPW gave their
approval of hiring a contractor to build the first five miles of line from
Harbine to Ellis. A total of eight lines need to be built – but hopefully
the line department will be able to do the other three lines in the future.
Morehead stated the cost would be roughly $21,000.00 per mile for the
construction cost and the materials would be roughly half of the
construction cost; so the total project would be approximately $150,000.00.
Council member Tim Polson asked what the timeline would be to get the
project completed. Morehead stated hopefully the contractor would be able
to get to the project within six weeks; and should be able to complete the
job in a timely manner – shouldn’t take too long. Morehead stated the BOPW
has funds to pay for this project; they’ve been planning for this for three
years so they’ve been saving money for this project. Council member Kelly
Davis asked if the BOPW would have to bid this project. Morehead stated
they already had it out for bids.
Carmichael moved to approve the recommendation from the BOPW to allow hiring
a contractor to build five miles of line from Harbine to Ellis.
Motion seconded by Bailey. On roll call,
Polson, Bailey, Carmichael, Brown, Vossler, Bender, Kuzelka, and Davis voted
“yes.” Motion carried.
Bender moved to approve the 2011-2012
Fiscal Year Budget as proposed/published. Motion seconded by Davis. On
roll call, Polson, Bailey, Carmichael, Brown, Vossler, Bender, Kuzelka, and
Davis voted “yes.” Motion carried.
Bender moved to approve an additional 1%
increase in Restricted Funds Limitation for the 2011-2012 budget for the
City of Fairbury. Motion seconded by Carmichael. Blobaum stated the
consideration of an additional 1% increase in restricted funds authority for
the 2011-2012 budget allows for an additional 1% increase to the spending
limitation added to the statutory 2½ percent limit. This is not a tax
increase, it is an allowance for a spending increase should the need arise.
This same action was taken last year for the current city budget. On roll
call, Polson, Bailey, Carmichael, Brown, Vossler, Bender, Kuzelka, and Davis
voted “yes.” Motion carried.
Mayor Ward read from the agenda “JEO
presentation regarding the City of Fairbury’s dike system.” Lalit Jha with
JEO Consulting did a PowerPoint presentation for the City Council regarding
levees and the new FEMA regulations for levee certification. Assistant
Street Superintendent Laura Bedlan addressed the Council. Bedlan stated she
has been talking to the Department of Natural Resources (DNR), but hasn’t
received any Base Floodplain Elevation (BFE) information or a Provisional
Accredited Levee (PAL) letter from FEMA yet.
Mayor Ward read from the agenda “consider
Fairbury Airport Authority’s Tax Request of $33,000.00 for Fiscal Year
2011-2012.” City Administrator Joseph Parker stated $33,000.00 is the same
amount the Airport Authority had requested last year, but the City Council
only approved $30,000.00. Parker stated with the City’s budget this year he
had cut most of the departments spending by 2.75%. Parker stated he feels
the Council should stay at $30,000.00 again this year and not go above that
amount. Council member Joshua Vossler asked if the airport generates any
revenue. Sandra Decker from the
Airport Authority Board addressed the Council. Decker stated they do have a
farm lease which generates income, also income from hangars, and makes a
very small amount on fuel. Decker stated they do not charge anything for
using the airport; said if they would charge a fee for landing, the planes
would not land here – they would go to Beatrice or Hebron. Decker stated
last year the Council had asked them to check into reissuing their bonds
since the interest rate was down; they did reissue their bonds and will
probably save about $10,000.00 over the life of the bonds. Bailey moved to
approve only $30,000.00 for the Airport Authority’s tax request for Fiscal
Year 2011-2012. Motion seconded by
Bender. The Airport Authority had requested a total of $33,000.00 for the
2011-2012 Fiscal Year. On roll call, Polson, Bailey, Carmichael, Brown,
Vossler, Bender, Kuzelka, and Davis voted “yes.” Motion carried.
Polson moved to approve the recommendation
from the Public Works Committee regarding the request from the Homecoming
Committee to have a bonfire on Thursday, September 22, 2011 at about 9:00
p.m. behind the Community Building and barricading portions of the downtown
area for a parade and pep rally on Friday, September 23, 2011 at 3:00 p.m.
Motion seconded by Bender. The parade route will be the same as last year –
starting at the corner of 4th & E Streets going west completely
around the square with barricading all the intersections around the square.
On roll call, Polson, Bailey, Carmichael, Brown, Vossler, Bender, Kuzelka,
and Davis voted “yes.” Motion carried.
Polson moved to approve the recommendation
from the Public Works Committee for Central School to use different areas of
the City Park on September 29, 2011 from 5:00 p.m. – 7:00 p.m. for the
annual Family Fall into Fitness Night and Bike Rodeo with barricades being
placed at various locations in the City Park. Rain Date will be October 4,
2011. Motion seconded by Kuzelka. They request barricades being placed at
the 5th Street entrance toward the Fun Park allowing traffic to
flow towards the baseball field, 4th Street before coming past
the softball complex, and one by the Community Building, not allowing
traffic to go past the Community Building going south; and blocking off the
area between the swimming pool and Community Building for a bike rodeo. On
roll call, Polson, Bailey, Carmichael, Brown, Vossler, Bender, Kuzelka, and
Davis voted “yes.” Motion carried.
Brown moved to authorize Mayor Ward to sign
the Outdoor Warning System Project Personal Property Lease Agreement between
Southeast Nebraska Development District (SENDD) and the City of Fairbury.
Motion seconded by Carmichael. On roll call, Polson, Bailey, Carmichael,
Brown, Vossler, Bender, Kuzelka, and Davis voted “yes.” Motion carried.
Bailey moved to approve the Outdoor Warning
System Project Rent/Match in the amount of $12,338.50 payable to SENDD by
October 31, 2011. Motion seconded by Brown. The City will receive two
additional sirens; this amount will be paid by both the City of Fairbury and
Fairbury Light & Water – each paying half of this amount. This project is a
75% Economic Development Administration (EDA) Grant Share with a 25%
City/Local Match. On roll call, Polson, Bailey, Carmichael, Brown, Vossler,
Bender, Kuzelka, and Davis voted “yes.” Motion carried.
Polson moved to approve the Special
Committee appointments for the Comprehensive Plan Review Committee regarding
the development of a new Comprehensive Plan: Mayor Homer Ward, Chair;
Joseph Parker, Michael Beachler, Mick Hynek, Laura Bedlan, Chad Sprunk, Eric
Voss, Sharyl Preston, Roger Bailey, Douglas Brown, Cathy Kleine, and Paul
Schramm. Motion seconded by Carmichael. Vossler asked what is the new
comprehensive plan. Mayor Ward stated it is the new design the City has
just gone through with the LMI (low to moderate income) Study; need to
develop a new comprehensive plan encompassing the entire city before the
city will qualify for CDBG funding. Parker stated the comprehensive plan
basically lays out how the city plans its future. Parker stated the plan
looks at things like where new commercial may go, or where residential will
go – it lays those plans out for the long run. Parker stated the new
comprehensive plan will probably be used by the city for the next eight to
ten years. Council member Shirley Bender stated the Comprehensive Plan
Review Committee will put the plan together, but it will be brought to the
Council for approval. Parker stated the Comprehensive Plan will first go to
the Planning Commission for approval and the Planning Commission will then
give a recommendation to the City Council. On roll call, Polson, Bailey,
Carmichael, Brown, Vossler, Bender, Kuzelka, and Davis voted “yes.” Motion
carried.
Brown moved to approve a 2.75% wage
increase for the City Administrator for 2011-2012. Motion seconded by
Bailey. The increase will start October 1, 2011 – the same as the other
city employees. Council member Shirley Bender asked if the budget the
Council approved was with this salary increase. Parker stated it was.
Council member Joshua Vossler stated a long term goal should be to reach a
solution – the wage increases are a considerable increase including the
wages and the benefits the city employees receive. Vossler stated when you
work for the government there is a limit – the tax base isn’t increasing.
Vossler stated the average household income in this area is $35,000.00.
Vossler and Polson both stated maybe should do away with the percentage
increases of wages and go to a dollar amount instead. Mayor Ward stated
this would have to go through union negotiations. On roll call, Polson,
Bailey, Carmichael, Brown, Vossler, Bender, Kuzelka, and Davis voted “yes.”
Motion carried.
Davis moved to approve the recommendation
from the Housing Committee regarding CDBG – Citywide Housing Rehabilitation
Program – Award of Rehabilitation Construction Contract to Schoenrock
Construction in the amount of $24,000.00 for Applicant #009/ 800 D Street.
Motion seconded by Brown. The total bid for applicant #009 is $24,000.00
minus the contingency fund in the amount of $1,816.00 for a base bid of
$22,184.00. On roll call, Polson, Bailey, Carmichael, Brown, Vossler,
Bender, Kuzelka, and Davis voted “yes.” Motion carried.
Davis moved to approve the recommendation
from the Housing Committee regarding CDBG – Citywide Housing Rehabilitation
Program – Award of Rehabilitation Construction Contract to Professional
Contracting Services in the amount of $23,458.00 for Applicant #010/ 715 6th
Street. Motion seconded by Brown. The total bid for applicant #010 is
$23,458.00 minus the contingency fund in the amount of $2,133.00 for a base
bid of $21,325.00. On roll call, Polson, Bailey, Carmichael, Brown, Vossler,
Bender, Kuzelka, and Davis voted “yes.” Motion carried.
Bender moved to approve transferring
$9,770.00 from the Keno Fund to the General Fund and the same $9,770.00 from
the General Fund to the Library Fund to be used for roof and gutters.
Motion seconded by Carmichael. On roll call, Polson, Bailey, Carmichael,
Brown, Vossler, Bender, Kuzelka, and Davis voted “yes.” Motion carried.
Bailey moved to adopt the resolutions in
Agenda Items 1 - 7 under Resolutions and Ordinances:
Resolution No. 825 obligating LB840 funds
to Ron Southwick
at 425 D Street for a “Downtown Design
Challenge Grant” in the amount of $3,000.00
Resolution No. 826
obligating LB840 funds to Ron Southwick
at 328 5th Street
for a “Downtown Design Challenge Grant” in the amount of $3,000.00
Resolution No. 827
obligating LB840 funds to Ron Southwick
at 320 5th Street
for a “Downtown Design Challenge Grant” in the amount of $3,000.00
Resolution No. 828
obligating LB840 funds to Ron Southwick
at 318 5th Street
for a “Downtown Design Challenge Grant” in the amount of $2,953.66
Resolution No. 829
obligating LB840 funds to Ron Southwick
at 316 5th Street
for a “Downtown Design Challenge Grant” in the amount of $3,000.00
Resolution No. 830
obligating LB840 funds to Ron Southwick
at 312 5th Street
for a “Downtown Design Challenge Grant” in the amount of $2,357.14
Resolution No. 831
obligating LB840 funds to Ron Southwick
at 312½ 5th Street for a
“Downtown Design Challenge Grant” in the amount of $3,000.00.
Motion seconded by Carmichael. Craig
Eberle with Southeast Nebraska Development District (SENDD) office in
Lincoln, Program Administrator for the Fairbury LB840 Program, addressed the
Council. Eberle stated Southwick’s projects were also on the August 2, 2011
Council agenda at which time the City Council requested the projects be
broken down per project and not lumped together. Eberle stated with the
assistance of Ron Southwick, he has broken down each project based on the
specific number of windows/doors applicable to each project which has
changed the overall cost and work item breakdown of each project, thus new
project proposals and recommendations were needed so the projects went
before the Historic Preservation Committee again on September 1, 2011.
Council member Kelly Davis stated with the new breakdowns Southwick would be
receiving about $700.00 less than what he would have received before the
projects were broken down. Eberle stated the overall total project cost is
$58,000.00. On roll call, Polson, Bailey, Carmichael, Brown, Vossler,
Bender, Kuzelka, and Davis voted “yes.” Motion carried.
Bender moved to adopt Resolution No. 837
setting the 2011-2012 property tax request at $493,079.00 for the General
Fund and $206,355.00 for the Bond Fund. Motion seconded by Kuzelka. On
roll call, Polson, Bailey, Carmichael, Brown, Vossler, Bender, Kuzelka, and
Davis voted “yes.” Motion carried.
Davis moved to adopt Resolution No. 838
authorizing the City of Fairbury/Board of Public Works to make preparations
for the sale of the 1992 Ford 3 Ton Truck by means of taking sealed bids.
Motion seconded by Brown. On roll call, Polson, Bailey, Carmichael, Brown,
Vossler, Bender, Kuzelka, and Davis voted “yes.” Motion carried.
Bailey moved to adopt Resolution No. 839
obligating LB840 funds to Dr. Jeffrey John Johnson/Johnson Family Vision
Care at 523 E Street for a “Downtown Design Challenge Grant” in the amount
of $3,000.00. Motion seconded by Carmichael. On roll call, Polson, Bailey,
Carmichael, Brown, Vossler, Bender, Kuzelka, and Davis voted “yes.” Motion
carried.
Mayor Ward read by title Ordinance No.
3012: AN ORDINANCE PROVIDING FOR
THE BOUNDARIES OF THE WARDS OF THE CITY OF FAIRBURY PURSUANT TO THE MOST
RECENT FEDERAL DECENNIAL CENSUS, AND TO REPEAL ALL PRIOR ORDINANCES AND
RESOLUTIONS IN CONFLICT HEREWITH. Bender moved to suspend the statutory
three readings requirement for Ordinance No. 3012. Motion seconded by
Vossler. On roll call, Polson, Bailey, Carmichael, Brown,
Vossler, Bender, Kuzelka, and Davis voted “yes.” Motion carried.
Carmichael moved for the final passage of Ordinance No. 3012. Motion
seconded by Bender. On roll call, Polson, Bailey, Carmichael, Brown,
Vossler, Bender, Kuzelka, and Davis voted “yes.” Motion carried.
Mayor Ward read by title Ordinance No.
3013: AN ORDINANCE SETTING SALARIES
FOR CITY EMPLOYEES COVERED BY IBEW AGREEMENT; PROVIDING FOR THE EFFECTIVE
DATE THEREOF; AND REPEALING CONFLICTING ORDINANCES. Kuzelka moved to give 2nd
reading to Ordinance No. 3013. Motion seconded by Carmichael. On roll
call, Polson, Bailey, Carmichael, Brown, Vossler, Bender, Kuzelka, and Davis
voted “yes.” Motion carried.
Mayor Ward read by title Ordinance No. 3014:
AN ORDINANCE SETTING SALARIES FOR
CITY POLICE DEPARTMENT EMPLOYEES COVERED BY CWA AGREEMENT; PROVIDING FOR THE
EFFECTIVE DATE THEREOF; AND REPEALING CONFLICTING ORDINANCES. Bailey moved
to give 2nd reading to Ordinance No. 3014. Motion seconded by
Carmichael. On roll call, Polson, Bailey, Carmichael, Brown, Vossler,
Bender, Kuzelka, and Davis voted “yes.” Motion carried.
Within the City Administrator’s report,
Joseph Parker stated he had visited with Bobbie Meints with Five Rivers
RC&D – they want to set up an electronic/appliances pick up in Jefferson
County this fall. They would need about ten volunteers and would also need
a forklift available. Parker stated he will help set up the
electronic/appliances pick up in Jefferson County and will let the Council
know the details.
Bender
moved to adjourn the meeting. Motion
seconded by Vossler. On roll call, Polson, Bailey, Carmichael, Brown,
Vossler, Bender, Kuzelka, and Davis voted “yes.” Motion carried. Meeting
adjourned at 8:55 p.m.
Homer L. Ward, Mayor
ATTEST: Sharyl Preston,
City Clerk
