Budget Workshop
City Hall, Cherokee, Iowa
February 9, 2010 – 5:00 P.M.
Mayor Murphy called a budget workshop to order on this
date. Present: Council Members Stieneke, Morrow, Mallory,
Burkhart, Administrator Eikmeier, Clerk-Treasurer Taylor. Absent: Council
Member Peck.
The council continued review of
the 2010-11 budget. Scott Stevenson, Ruan Securities, was present to review
possible
financing options if the council wants to pursue a street project in the next
year. Scott told the council that through the
U.S. Treasury Department the County has access to $1.8 million in low interest
Recovery Zone Economic Development Bonds.
If the County has no use for any or all of these funds they could grant them to
the city. He also mentioned that interest
rates are at a 60-year low for traditional financing options. Scott passed out
a report that shows the city’s annual debt
service requirement drops considerably in FY14, which would be a good time to
pursue additional financing for new projects.
In continued review of the
2010-11 budget, the council discussed the possibility of implementing a
franchise fee on gas and
electric utilities. A 3% fee would generate approximately $160,000/year. The
preliminary budget shows $135,000 going
into the General Fund to help build a much-needed reserve and the remaining
$25,000 would go toward street improvement
projects. Gas and electric utilities currently charge a 1% local option sales
tax on usage. If a franchise fee is implemented,
this 1% local option tax is removed, so a 3% franchise fee would be a net
increase of 2% over what customers already see on
their bill. It was noted that surrounding county seat towns have franchise fees
and that this fee is spread among more people
that property taxes. The council was split on this issue. This fee could be
any amount, so possibly a lower percentage could
be discussed. Administrator Eikmeier had included $25,000 in the budget for a
communications study, but after visiting
with a CML representative and finding that the state rules and regulations are
in flux, he suggested deferring the study at
this time. He did, however, stress that the city needs to keep pressure on
Mediacom to improve the existing system. The
Administrator reported that he had discussed with Gary
Chase and Roger Frisbie the elimination of $40,000 from the fire
department budget for a used pumper truck. They agreed that this could be
delayed for another year, as they continue to
look at vehicle replacement schedule options. Annual police vehicle replacement
was discussed and whether 4-wheel drive
vehicles are needed. Administrator Eikmeier indicated that the vehicles have
about 100,000 miles on them when traded and
the council has the opportunity to review specifications before going to bid.
They could decide at that time what type of
vehicle to bid. Annexation is another area that will be explored. This will be
a lengthy process, but in the end would create
additional tax base and revenue. The next budget meeting is scheduled for
Thursday, February 11 at 5:00 p.m.
A motion by Stieneke, seconded by Morrow, adjourned the meeting at 6:40 p.m. Motion carried.
Mark Murphy – Mayor
ATTEST:
Debra Taylor, ICMC
City Clerk-Treasurer
Regular City Council Meeting
City Hall, Cherokee, Iowa
February 9, 2010 – 7:00 P.M.
A regular meeting was called to order on this date by
Mayor Murphy. Present: Council Members Stieneke, Morrow,
Mallory, Burkhart, Administrator Eikmeier, Clerk-Treasurer Taylor. Absent:
Council Member Peck.
Terry Graybill, 532 Bailey Ct., commented that the city street department is doing a great job with snow removal.
Scott Stevenson, Ruan
Securities, gave a brief overview of the $2,830,000 G.O. Refunding Capital Loan
notes. These notes
will refinance three existing notes with a lower interest rate at an average of
2%. This will save $160,000 over the life of
the notes. A motion by Stieneke, seconded by Morrow, adopted Resolution No.
10-05, directing the acceptance of a proposal
to purchase $2,830,000 G.O. Refunding Capital Loan Notes, Series 2010. Roll
call was: AYES: All. NAYS: None.
On a motion by Burkhart,
seconded by Mallory, the council adopted Resolution No. 10-06, authorizing the
redemption of
outstanding G.O. Capital Loan Notes, Series 2000C, dated 11/1/00. Roll call
was: AYES: All. NAYS: None.
A motion by Stieneke, seconded
by Morrow, adopted Resolution No. 10-07, authorizing the redemption of
outstanding G.O.
Capital Loan Notes, Series 2004A, dated 4/15/04. Roll call was: AYES: All.
NAYS: None.
A motion by Mallory, seconded by
Burkhart, adopted Resolution No. 10-08, authorizing the redemption of
outstanding G.O.
Capital Loan Notes, Series 2004B, dated 6/15/04. Roll call was: AYES: All.
NAYS: None.
On a motion by Mallory, seconded by Morrow, the council unanimously approved the following under “Consent Business”.
City council minutes of January 26th, February 2nd and February 4th.
Bills totaling $133,538.96.
BRETT GANNON GAS FOR SQUAD CAR-DES MOINES 22.96
USPS POSTAGE FOR UTILITY BILLS 559.93
CHEROKEE AVIATION AUTH. JAN. TAX DRAW 519.80
GE MONEY BANK/AMAZON DVD'S 181.47
CHEROKEE FIRE DEPARTMENT VOL. ALLOW.-12/14/09-1/21/10 860.00
GE CAPITAL FEB. SKIDLOADER PAYMENT 365.05
IOWA LAKES ELECTRIC COOP ELEC. - 12/1/09-12/31/09 39.49
THREE RIVERS BENEFIT CLAIMS THRU 1/29/10 4,512.11
FEB. ADMIN. FEE 384.00
ALLIANT ENERGY NATURAL GAS 6,511.05
AL'S CORNER OIL CO. FUEL 119.90
AMERICAN WATER WORKS ASSO. ANNUAL MEMBERSHIP 165.00
ARAMARK UNIFORM SERVICES SHOP RAGS; MATS; MOPS 100.66
BLAINE'S WATER COND. LAB WATER; SALT; FILTERS 213.02
BOMGAARS SUPPLIES 607.15
BROWN SUPPLY CO. 6" COUPLING; PLOW CUTTING EDGE 429.27
BUGH WELDING STRAIGHTEN EXHAUST PIPE 38.00
REPAIR FRONT GATE 224.92
MAKE LIFT RING-BEECH ST. 18.00
BUILDERS SHARP. & SERVICE CUTTING EDGE-BOBCAT BUCKET 285.53
BUSINESS WEEK SUBSCRIPTION 60.00
STEVE CASEY JAN. CELL PHONE 40.00
CHAMPION ELECTRIC, INC. EXIT BULBS; CORD ENDS 43.76
INSTALL COMPUTER OUTLETS 271.84
CHEROKEE AUTO PARTS HEATER MOTOR-FORD TRUCK 22.01
CHEROKEE BOWL YIA PARTY FEE 100.85
CHEROKEE CO. CLERK/COURT CITY CASES 240.00
CHEROKEE COUNTY SHERIFF SERVE NOTICE-OLIVER; DIAS 119.00
CHEROKEE CO. SOLID WASTE FEB. LANDFILL FEE 11,556.01
CHEROKEE CO. WORK SERVIC CLEAN SHOP RAGS 3.51
CHEROKEE LUMBER, INC. DOOR 125.00
CHRONICLE TIMES AD FOR FIREMAN 99.00
MINUTES; BIDS; ANNUAL WAGES 311.81
CONTROL SYSTEM SPECIALIST MECHANICAL SYSTEM MAINT. 187.60
EMILY COOK VOLLEYBALL REF. 50.00
JESSICA COOK VOLLEYBALL REF. 20.00
DAWN COOMBS VOLLEYBALL REF. 100.00
THE COURT FOCUS FEB. SUBSCRIPTION 13.00
DPC INDUSTRIES, INC. CHLORINE 610.63
DANKO EMERGENCY EQUIPMENT GLOVES; PATCH 65.65
DEMCO, INC. SUPPLIES 451.39
ELIZABETH DAWSON VOLLEYBALL OFFICIAL 20.00
DENNY'S SERVICE REPAIR KIT-WOMEN'S R.R. 82.00
DOUBLEDAY LARGE PRINT BOOKS 60.46
FAREWAY STORES, INC. SUPPLIES 35.15
FARMER'S GRAIN & FEED BIRD FEED 18.00
ED M. FELD EQUIP. CO. TAMPER SEALS; EXTINGUISHERS 298.00
FSH COMMUNICATIONS PARK PAY PHONE 55.00
GRAHAM TIRE & AUTOMOTIVE 4 TIRES FOR '96 IH TRUCK 1,288.60
GREGG COMPUTER SERVICE INSTALL MORE MEMORY 135.00
CORDLESS KEYBOARD & MOUSE 69.00
HD SUPPLY WATERWORKS, LTD WATEROUS HYDRANT PARTS 911.74
HACH CO. LAB CHEMICALS 133.09
HEATH HAGBERG JR. BASKETBALL INSTRUCTOR 225.00
HALLETT MATERIALS ICE CONTROL SAND 61.68
HOLZHAUER MOTORS, LTD. SERVICE VEHICLES; HEADLAMP 327.59
HY-VEE, INC. SUPPLIES 11.47
IOWA LIBRARY ASSOCIATION IOWA LIBRARY ASSOC. DUES 195.00
IOWA MUNI. FIN. OFFICERS ANNUAL MEMBERSHIP 45.00
IOWA ONE CALL DEC. LOCATES 7.20
IOWA TELECOM PHONE SERVICE 937.99
IOWA WORKFORCE DEVELOP. QRTLY. UNEMPLOYMENT-J.PETERSON 305.00
JIM'S LAWN CARE & MORE SNOW REMOVAL ON BRIDGES 225.00
MARIE JONES VOLLEYBALL OFFICIAL 50.00
K-MART #9222 SUPPLIES 83.13
BOB LEE JR. BASKETBALL INSTRUCTOR 225.00
LETSCHE BIKE/RADIO SHACK DVD PLAYER; POWER STRIP 64.98
MICRO CRUZER 39.99
LUBECK OIL COMPANY EXHAUST PARTS-'98 IH TRUCK 113.97
LUNDELL CONSTRUCTION CO. GRAVE DIGGING 142.50
WATER LEAK-900 BLK. N.ROOS. 1,275.00
LOAD/HAUL SNOW 5,730.00
PUSH UP SNOW AT DUMP SITE 974.00
MID AMERICAN ENERGY ELECTRICITY 23,777.84
M.O.C.I.C. ANNUAL MEMBERSHIP 100.00
MILLS & MILLER INC. 50.84 T. SALT 2,897.88
MITINET, INC. COMPUTER SUPPORT 199.00
MOTOR PARTS SALES VEHICLE PARTS/SUPPLIES 133.76
TOM MUMMERT & SON CONST. HAUL SNOW 2,850.00
MUNICIPAL SUPPLY, INC. REPAIR CLAMPS 613.00
MURPHY TRACTOR & EQUIPME REPAIRS-544J LOADER 1,963.16
NORTHWEST COMMUNICATIONS JAN./FEB. INTERNET SERVICE 79.90
O'HALLORAN INTERNATIONAL AIR FILTER 55.88
LEAF SPRING ASSMBLY. 1,317.54
REPAIR FUEL PROBLEM-LOADER 179.84
DETROIT LOCKER-'98 IH TRUCK 2,357.85
OTIS ELEVATOR COMPANY ELEVATOR SERVICE CONTRACT 140.00
PARENTS MAGAZINE SUBSCRIPTION 7.99
PERKINS OFFICE SOLUTIONS OFFICE SUPPLIES 339.95
PETTY CASH POSTAGE 160.73
POWERSPORTS, INC. REPAIR SNOW BLOWER 185.25
R COMM WIRELESS VERTEX BATTERIES 96.00
RASMUSSEN'S CORP. CHECK ENGINE LIGHT PROBLEM 54.45
REEDSBURG HARDWARE 5 PR. CHAIN TIGHTNERS 153.16
REINERT MACHINE SHOP CRIMP ON HYD. HOSE END 29.16
REBUILD PLOW LIFT CYLINDER 90.03
REPAIR SAND SPREADER 73.50
CUTTING EDGE FOR J.D. 101.71
RON'S REPAIR, INC. REPAIR 2000 DODGE PICKUP 798.00
SAC COUNTY SHERIFF SERVE NOTICE-WILLIAMS 69.50
SANITARY SERVICES JAN. GARBAGE PICKUP 20,647.55
SCHOON CONSTRUCTION CO. WATER LEAK-WASHBURN RD. 1,456.25
WATER LEAK-912 PILOT 1,125.00
LOAD/HAUL SNOW 3,915.00
SCHOLASTIC, INC. STORIES 2000 BOOKS 90.00
SIOUX SALES COMPANY NAME PLATE-DIXSON 21.90
SIOUXLAND DISTRICT HEALTH BACTERIA SAMPLES 130.00
STEVE'S WINDOW SERVICE WINDOW CLEANING 116.00
TEST AMERICA ANALYTICAL SAMPLE TESTING 2,395.89
TIRE SERVICE CENTER MOUNT/BALANCE 4 NEW TIRE 204.00
TIRE REPAIR 15.00
TREASURER, STATE OF IOWA JAN. SALES TAX 4,950.29
USA BLUE BOOK LAB CHEMICALS 23.19
UNITED PARCEL SERVICE SHIPPING CHARGES 137.13
UNITED STATES CELLULAR CELL PHONES-1/22/10-2/21/10 99.87
USPS ANNUAL PRESORT FEE 185.00
VALLEY VETERINARY CENTER BOARD 3 STRAYS 224.00
VERIZON WIRELESS CELL PHONES-1/21/10-2/20/10 142.20
WALDNER'S LAWN SERVICE CLEAN DOWNTOWN NODES 905.00
WASHINGTON HIGH SCHOOL JR. BASKETBALL INSTRUCTION 225.00
WELLS FARGO FIN. LEASE COPY MACHINE LEASE 110.80
WIESE OIL & SUPPLY CO.LT PARTS TO REPAIR GAS PUMP 41.00
WINTHER STAVE & CO. FINAL PAY.-2008/09 AUDIT 4,850.00
Reviewed Library Board minutes of January 6th.
Renewal of class “B” beer/wine permit – Fareway; class “B” native wine permit – Hy-Vee Gas.
A motion by
Burkhart, seconded by Stieneke, accepted the 2008-09 annual audit with the
stipulation that a member of the
auditing firm would be present at a future meeting if the council so desires.
Motion carried.
Mark Buschkamp,
Cherokee Area Economic Development director, was present to request funding for
the 2010-11 budget year.
Mark reviewed what he has been working on the past year including spending
considerable time on the M.H.I. closures. He passed
out information regarding upcoming seminars and conferences in the area at
little or no cost to attendees. Mark then explained
the revised funding formula, which is based on property valuations at
$.10/$1000. This formula relieves some of the pressure
on cities. CAEDC also continues to request funds from business, industry and
private donations. The request for FY11 funding
from Cherokee is $10,935, which is down from previous years’ contributions of
$21,000. The council will confirm a contribution
to CAEDC through the budgeting process.
The council reviewed the following reports.
1. Administrator’s report.
2. January Clerk-Treasurer’s report and receipts as follows: General-$53,675.36; Police
Forfeiture-$631.55; County Library-$.53; Road Use-$49,207.55; Employee Benefits-
$21,220.95; Emergency-$935.59; Local Option Sales Tax-$39,500.84; Hotel/Motel Tax-
$2.42; Tax Increment Financing-$823.81; Revolving Loan-$122.76; Library Memorial-
$52.07; Park & Rec. Cap. Impr.-$6.37; Debt Service-$20,791.96; Road Use Equipment-
$.61; A.B.C. Projects-$80; Emergency Set-Aside-$1.08; Aquatic Center/Gillette Park-
$32.05; Fire Rescue Truck-$.25; Oak Hill Perpetual Care-$20.17; Water Utility-City-
$50,574.52; Water Utility-Industrial-$11,782.17; Water Bd./Int.-$3.46; Water Improvement-
$10,008.89; Water Reserve-$29.42; Water System Maintenance-$8,550.28; Sewer Utility-
City-$72,165.99; Sewer Utility-Industrial-$21,443.94; Sewer Bd./Int.-$32,699; Sewer
Improvement-$1,666.67; Aviation Authority-$803.68; Solid Waste-$20,513.56; Landfill-
$11,148.44; Storm Water Utility-$6,412.48; Self Insurance-$15.65; Aquatic Center Bd.
Acct.-$2,184.89.
3. January Police
report. Administrator Eikmeier reported that a police vehicle slid into the
path of a truck and the damage
has been reported to the
city’s insurance carrier.
4. January department reports.
On a motion by Morrow, seconded by Burkhart, the meeting was adjourned at 7:25 p.m. Motion carried.
News media – Paul Struck, Chronicle Times; Nikki Thunder, KCHE.
Mark Murphy – Mayor
ATTEST:
Debra Taylor, ICMC
City Clerk-Treasurer