MONDAY, November 25, 2013
City of Rochelle Council Chambers
420 North 6th Street, Rochelle, IL 61068
I. CALL TO ORDER:
• Pledge to the Flag
• Prayer
II. ROLL CALL:
III. PROCLAMATIONS, COMMENDATIONS, ETC:
• default National Drunk and Drugged Driving Prevention Month - December 2013
IV. REPORTS AND COMMUNICATIONS:
• Mayor
• Council Members
• default Financials - October 2013
V. PUBLIC COMMENTARY:
VI. BUSINESS ITEMS:
1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:
a) Approve Minutes of City Council Meeting – default November 12, 2013
b) Approve Bills – default 110113-110713 , default 110813-111413
c) Approve Payroll – default 102813-111013
d) default Accept and Place on File Muncipal Compliance Report - Police Pension Fund
e) default Accept and Place on File Municipal Compliance Report - Fire Pension Fund
2) Illinois Clean Energy Community Foundation Grant – Wastewater Treatment Plant Blower and Centrifuges
3) Local Debt Recovery Program
VII. DISCUSSION ITEMS:
1) Midyear Financial Report
2) Financial Reporting for Pension Plans
3) Tax Levy 2013-14
VIII. EXECUTIVE SESSION
Agenda Item #2 Illinois Clean Energy Community Foundation Grant – Wastewater Treatment Plant Blower and Centrifuges
References:
default Memo from Water Water Reclamation Superintendent Kathy Cooper
default Illinois Clean Energy Community Foundation Grant Agreement
Recommended Action:
Consider Illinois Clean Energy Community Foundation Grant
History and Fact:
According to the United States Environmental Protection Agency, approximately one-third of a municipality's electrical budget is for the treatment plant, with the aeration system blowers accounting for one-third to one-half of that power. The Rochelle Treatment Plant has an average electrical bill of $15,500 per month and staff is constantly looking at ways to reduce that amount.
A new technology, the turbo blower, was introduced to the industry about six years ago and staff began to investigate the possibility of installing one to help reduce the plant's electrical bill. Their evaluation showed, that unless grant funds were available, the pay back for the new blower did not justify pursuing the project.
Discussion:
For many years, the only communities that were eligible for grants were those served by Commonwealth Edison and Ameren. This year, the Clean Energy Foundation offered a pilot program for energy efficiency at Wastewater Treatment Plants to all of the communities in the state. RMU applied for a grant to help fund a blower replacement and to help pay for the energy efficiency achieved by the installation of new centrifuges.
On November 7th, Water/Water Reclamation Superintendent Kathy Cooper received notice that Rochelle was awarded $54,054 for installation of the new blower and centrifuge. With notice of the grant, RMU may move forward with the engineering for the blower and continue with the centrifuge project. The total cost of the blower project is expected to be $100,000 to $150,000, and payback should be less than eight years.
RMU staff recommends that council approve acceptance of the grant.
Recommendation:
Approve a Resolution Accepting a Grant from the Illinois Clean Energy Community Foundation for the Installation of Equipment at the Water Treatment Plant
Agenda Item #3 Local Debt Recovery Program
References:
default Memo from RMU Customer Service Supervisor Barbara Bell
default Intergovernmental Agreement between the City and the Illinois Office of the Comptroller
Recommended Action:
Consider Approval of an Intergovernmental Agreement between the City and the Illinois Office of the Comptroller regarding access to the Comptroller's Local Debt Recover Program.
History and Fact:
The Illinois Public Act 097-0632 was signed into law on December 2011 and established the Local Debt Recovery Program. The Program allows the Illinois Office of the Comptroller, through an intergovernmental agreement, to collect unpaid debt for local governments such as parking tickets, traffic fines, utility bills and ordinance violation fines at no cost.
Discussion:
The Comptroller's office matches unpaid debt records for up to the past seven years from the municipality's system against the Comptroller's system. Prior to the Comptroller issuing a state check for items such as a tax refund, lottery payment, commercial payment or payroll check, the amount owed (which must be greater than $10.00) plus an administrative fee will be deducted. The debtor has 60 days to protest the offset with the Comptroller's office. The funds will be deposited into the municipality's account after the 60 days. The debt records will remain in the Comptroller's system until the municipality requests them to be removed or for up to seven years from the debt certification date.
The Local Debt Recovery Program is scheduled to work within privacy protection and fair debt collection laws. Restrictions and limitations governing involuntary withholdings also apply. The funds collected from the Local Debt Recovery Program will not be subject to state payment delays.
RMU Customer Service Supervisor Barbara Bell recommends the use of the Local Debt Recovery Program to collect unpaid debt owed to the City. This Program will be in addition to the current collection process.
Recommendation:
Approve an Intergovernmental Agreement between the City and the Illinois Office of the Comptroller regarding access to the Comptroller's Local Debt Recover Program Grant.
Discussion Item #1 Midyear Financial Report
The City of Rochelle's 2013-2014 budget was adopted by the Mayor and City Council on April 22, 2013. The second quarter of the current fiscal year ended on October 31, 2013. Finance Manager Chris Frye will provide information on actual revenue and expenditures in relation to the budget, specifically in areas where there are variances.
Discussion Item #2 Financial Reporting for Pension Plans
In June of this year the Governmental Accounting Standards Board (GASB) issued Statement No. 68, Accounting and Financial Reporting for Pensions. As a result, State and local governments with defined benefit plans will have to disclose a "net pension liability" on their balance sheets if they prepare financial statement in conformity with generally accepted accounting principles in order to receive a clean opinion from auditors on their financial statements. Statement No. 68 is applicable for the City's fiscal year ending April 30, 2016. Finance Manager Chris Frye will provide additional information on these upcoming changes.
Discussion Item #3 Tax Levy 2013-14
Annually the Mayor and City Council are required to adopt a Tax Levy Ordinance and file it with the County Clerk on or before the last Tuesday in December. The Ordinance Levying Taxes for the City of Rochelle 2013-14 will be included as a business item on the December 9, 2013 City Council Meeting. A Notice of Proposed Property Tax Increase for the City of Rochelle was published in the Rochelle News Leader on November 19, 2013 which included a proposed increase of no more than 7.98%. Finance Manager Chris Frye will provide information on the various components and discuss options related to the levy. In addition, the Rochelle Police and Fire Pension Fund Presidents will discuss their respective recommendations and respond to questions from the Mayor and Council.
References:
default Rochelle Police Pension Fund Recommendation - Rochelle Police Pension Board
default Rochelle Police Pension Fund Recommendation - Illinois Department of Insurance
default Rochelle Police Pension Fund Recommendation – Lauterbach & Amen, LLP
default Rochelle Fire Pension Fund Recommendation- Rochelle Fire Pension Board
default Rochelle Fire Pension Fund Recommendation - Illinois Department of Insurance
default Rochelle Fire Pension Fund Recommendation - Lauterbach & Amen, LLP
