City of Rochelle Council Chambers
420 N 6th Street, Rochelle IL 61068
I. CALL TO ORDER:
• Pledge to the Flag
• Prayer
II. ROLL CALL:
III. PROCLAMATIONS, COMMENDATIONS, ETC:
• National Fire Prevention Week – pdf October 9-15, 2016 (51 KB)
• Public Power Week – pdf October 2-8, 2016 (54 KB)
IV. REPORTS AND COMMUNICATIONS:
• Mayor
o Appointment of Kurt Wolter to the Planning & Zoning Commission as a (Non-voting) Member at Large for a term to expire July 1, 2020
• Council Members
• pdf Financial Statements August 2016 (815 KB)
V. PUBLIC COMMENTARY:
VI. BUSINESS ITEMS:
1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:
a) Approve Minutes of City Council Meeting – pdf September 12, 2016 (56 KB)
b) Approve Bills – pdf 090216-090816 (85 KB) , pdf 090916-091516 (90 KB)
c) Approve Payroll – pdf 082916-091116 (52 KB)
d) Authorize the Rochelle Lions Club Annual Candy Sale as Requested – pdf October 7, 2016 (95 KB)
2) Audit Reports Fiscal Year 2015/2016
3) Ordinance Changing the Fiscal Year for the City of Rochelle to a Calendar Year Basis
4) Electric Unrestricted Cash Reserve Policy
5) Ordinance Approving Development Agreement – 1300 North 7th Street
VII. DISCUSSION ITEMS:
1) Hello Rochelle Mobile App
VIII. EXECUTIVE SESSION
IX. ADJOURNMENT
Agenda Item #2 Audit Report Fiscal Year 2015/2016
References:
City of Rochelle Comprehensive Annual Financial Report - pdf April 30, 2016 (2.31 MB)
Rochelle Municipal Utilities Annual Financial Report - pdf April 30, 2016 (943 KB)
Tax Increment Financing Fund Financial Report – pdf April 30, 2016 (416 KB)
Management Letter – pdf April 30, 2016 (298 KB)
Recommended Action:
Consider Audit Reports
History and Fact:
On January 25, 2016 the Mayor and City Council approved a contract with Sikich, LLP to perform an audit of the City’s financial operations for fiscal years ending April 30, 2016, 2017 and 2018. Although this is the first year under the new contract, this is the seventh year that Sikich has completed our annual audit.
Discussion:
Sikich planned and performed the audit in order to obtain reasonable assurance about whether the financial statements are free of material misstatements. This included performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The audit also included evaluating the appropriateness of accounting policies used, significant estimates made by management and evaluating the overall presentation of the financial statements.
The auditor’s opinion, as noted on page 2 of the Comprehensive Annual Financial Report, indicates that the financial statements “present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Rochelle, Illinois, as of April 30, 2016, and the respective changes in financial position and, where applicable cash flows thereof for the year ended in conformity with accounting principles generally accepted in the United States of America.”
Fred Lantz, Partner-in-Charge of Government Services for Sikich, will attend the meeting to provide an overview of the City’s Financial Statement and respond to questions from the Mayor and Council members.
Recommendation:
Accept and place on file the Audit Reports for FY 2015/2016 as prepared and presented by Sikich, LLP.
Agenda Item #3 Ordinance Changing the Fiscal Year for the City of Rochelle to a Calendar Year Basis
References:
pdf Ordinance Changing the Fiscal Year for the City of Rochelle to a Calendar Year Basis (204 KB)
Recommended Action:
Consider an Ordinance Changing the Fiscal Year for the City of Rochelle to a Calendar Year Basis
History and Fact:
Chapter 65 of the Illinois Municipal Code establishes the default fiscal year for municipalities with less than populations of 500,000 but authorizes the City Council to establish and change the fiscal year for the City. The City Council previously established a fiscal year beginning on May 1 and concluding on April 30 of the following year.
Discussion:
City Manager Plyman recommends changing the fiscal year to coincide with the calendar year effective January 1, 2017. There are several benefits to making this change including:
• More closely aligning the City’s budget and tax levy.
• Health and liability insurance premiums are done on a calendar year so budgeting for these items would be more accurate.
• Rate changes effective January 1st would be easier for many of our local industries to anticipate in their budgets.
• Many of our Capital Improvement Projects are currently budgeted across multiple fiscal years due to a construction season that stretches from March-November.
• Getting estimates in the fall for early spring construction projects may result in better pricing.
Per Sikich, the City’s auditors, an ordinance to change the fiscal year must be approved by the City Council and filed with the Secretary of State and State Comptroller’s Office.
Recommendation:
Approve an Ordinance Changing the Fiscal Year for the City of Rochelle to a Calendar Year Basis Effective January 1, 2017.
Agenda Item #4 Electric Unrestricted Cash Reserve Policy
References:
pdf Memo from Finance Director Chris Cardott (29 KB)
pdf Electric Unrestricted Cash Reserve Policy (128 KB)
Recommended Action:
Consider Approving Electric Unrestricted Cash Reserve Policy
History and Fact:
The purpose of the Electric Fund Balance and Unrestricted Cash Reserve Policy is to maintain an adequate amount of reserves to protect Rochelle Municipal Utilities Electric ability to provide reliable electric service during periods of power supply cost uncertainties, reductions in sales due to weather or a sluggish economy, volatile energy prices and rising capital improvement costs while maintaining stable rates. It is important for RMU Electric to maintain the financial flexibility to smooth rate increases.
Properly designed reserve policies send a positive signal to ratepayers, investors, and regulatory and credit rating agencies that the City is committed to maintaining the long- run fiscal strength of RMU Electric. Strong and transparent financial policies, including maintaining prudent reserves for emergencies, rate stability, working capital and capital improvements, are consistent with best practices in the utility industry.
Discussion:
The policy states that “RMU Electric will have sufficient unrestricted, undesignated reserves to maintain or improve its credit ratings; ensure that operating and maintenance costs will be paid in a timely manner, to pay debt service obligations, and to invest in needed capital improvements and equipment replacement on a timely basis. In addition, RMU Electric will maintain sufficient reserves to minimize rate increases due to market volatility, weather impacts on demands, emergencies (such as natural disasters), and regulatory changes.” The policy includes a Target (Minimum) Level equal to 90 days of operating and maintenance expenses and a Maximum Level equal to 120 days of operating and maintenance expenses.
The Utility Advisory Board, at its meeting on September 21st, voted to recommend that the City Council approve the policy.
Recommendation:
Approve Electric Unrestricted Cash Reserve Policy
Agenda Item #5 Ordinance Approving Development Agreement – 1300 North 7th Street
References:
pdf Ordinance Approving Development Agreement (488 KB)
Recommended Action:
Consider Ordinance Approving Development Agreement for 1300 North 7th Street
History and Fact:
The City continues to spur development by offering a variety of incentive options including: real estate tax abatements, sales tax rebates and waiving and/or reducing specific City fees. Providing incentives, when appropriate, is important when attracting and maintaining both industrial and commercial/retail facilities in our community.
Discussion:
DKS Real Estate, LLC owns the property located at 1300 North 7th Street. The property currently includes a commercial building, which houses an automobile repair shop, and a parking lot. DKS intends to relocate a Chrysler/Jeep Dealership to the property which will be operated by Sawicki Motor Company, Inc. The owner and operator plan to remodel the existing building to include an automobile showroom and repair facilities with completion no later than December 31, 2017. Once renovated, the facility will employ a minimum of eight full-time employees.
Based on the development of the property as outlined in the agreement and the anticipated economic impact, the following incentives are proposed:
• Real Estate Tax Abatement – Abatement of the City’s real estate taxes attributed to any new improvements over five years as follows: 90%, 75%, 60%, 45% and 30%.
• Sales Tax Rebate – Rebate of ½ of the 1% portion of the Operator’s Retail Occupation Tax attributable to sales and services rendered at the new showroom/repair facility for a period of three years. This rebate will be extended for an additional two years if local contractors provide 50% of the total contracted cost of the development.
• Building Permit Fees – Waiver of building permit fees for new construction and renovations for one year.
• Codes – Un-renovated portions of the facility will remain subject to the codes that were in affect at the time of construction, providing it was in compliance at that time.
Recommendation:
Authorize an Ordinance Approving Development Agreement for 1300 North 7th Street
Discussion Item #1 Hello Rochelle Mobile App
The City of Rochelle is excited to announce the launch of our new mobile app, Hello, Rochelle!
Hello, Rochelle is a simple way for residents to keep up with happenings around town, contact City staff with ease, view posts on the City’s Facebook page and link to the City, RMU and Tourism websites.
Marketing and PR Manager Jenny Thompson will attend the meeting to provide an overview of the City’s new mobile app.
