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Anyone who wishes to have an item added to the voting agenda needs
to have their request submitted to the city clerk's office no later
than noon on Dec. 30. Public hearing and vote on tax levy
Mayor Keith Snyder called the meeting to order and went directly
into the public hearing for the 2009-10 tax levy.
Snyder asked if there was anyone present who wished to comment on
the proposed tax levy. When no one spoke up, he closed the public
hearing and turned the floor to Alderwoman Marty Neitzel, who made
the motion for passing the levy.
With Alderwoman Melody Anderson and Alderman Nathan Turner absent
for the evening, the motion carried with a unanimous vote of 8-0.
Tax levy increases are based on the Consumer Price Index, which
is a federally established measure of the price level of consumer
goods and services compared with the portion of income used by
consumers to purchase those goods and services. For this year, the
CPI was 0.893 percent, which comes to an overall increase of
approximately $1,400 in tax revenues for the city.
City treasurer: Same story, different date
Les Plotner, city treasurer, reported on the finances of the city
as of the end of November.
Basically it was the same story he's been telling for the past
several months: Be cautious, be concerned, and don't spend a penny
you don't have to.
The city relies on a variety of tax-based revenues to cover its
general operating expenses. With the exception of the
telecommunications tax, all those revenues are showing significant
declines for the year.
Plotner reviewed the decreases in each tax and then summarized
the "whole picture," saying that the estimated decrease in all tax
revenues is going to amount to approximately $287,000.
During the course of his report, Plotner mentioned debt
obligations, such as the new loan taken out this year for the roof
of City Hall; rebates of sales tax due to Xamis Ford Lincoln
Mercury, the Burwells and Lincoln Chrysler Jeep as a result of
infrastructure agreements; and a $300,000 loan obligation.
When Plotner concluded his report, Snyder asked about the
$300,000 and was told that the figure was a rotation of funds from
the city's contingency fund to its general operating fund.
Plotner explained that the money was shifted from one fund
balance to another at the end of the fiscal year. He explained that
the money would have to be paid to the contingency fund at the end
of the year but then could be "borrowed" again at the beginning of
the new year.
Snyder commented, "But it really doesn't count as a debt. It
isn't an added expense?"
Plotner replied, "No."
Snyder also asked how last year's expenses compared with what was
budgeted.
He noted that the $287,000 deficit in revenues Plotner is
projecting amounts to an approximate 4 percent decrease to the
current budget figure.
He asked that Plotner look into the actual expenditures versus
budget for the year ending April 30, 2009. The mayor commented that
it would help to know if the city came in under budget on total
expenditures, and if so, by what amount.
Plotner said that it would take some time to pull that
information together, but he will work on it and get back to the
council with that information.
Plotner explained that the Policemen's Pension Fund is showing a
significant decrease in value. He explained that in the past, he has
reported on the fund according to the actual dollars invested.
However, during the audit, Estes, Bridgewater and Ogden adjusted
the figure according to the actual cash value of the fund.
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Because many of the dollars invested are in mutual funds, which are
driven by the market, the declining value of stocks has affected the
value of the fund as a whole.
When the auditors visited the council the first of December,
Richard Ogden had commented on this, saying that as the economy
recovers, the value of the mutual funds will increase.
In the Firemen's Pension Fund, Plotner reported that the balances
are more stable and steady because they don't have mutual fund
investments. The majority of that money is in annuities, which are
not driven by the market.
He also commented that at a meeting of the Lincoln Fire and
Police Commission board, it was discussed whether or not an outside
accounting firm should be contracted to monitor the policemen's and
firemen's funds. Plotner commented that he was in favor of this
action, as monitoring and managing these funds is complicated as
well as time-consuming.
Ameren pays up
Snyder reported to the council that the city has received a check
from Ameren in the amount of $6,000.
In 1970 the city signed a franchise agreement with Ameren that
would permit it to have electric service to five locations,
including City Hall, free of charge.
When a new and separate contract agreement was signed with
Mid-American Energy in May, that company took over those five
locations by mistake, thus breaking the franchise agreement with
Ameren.
During the six-month period between this occurrence and the city
reverting to the Ameren agreement, a total of $7,436.47 was expended
on utilities at these five locations.
Snyder said that currently the refund check is locked in the city
safe because the letter attached had indicated that depositing the
check would serve to relieve Ameren of any further obligation in the
matter.
Snyder said that because the check arrived too late for this
week's agenda, it would be held until the council had the
opportunity to discuss whether or not to accept the terms attached
to the check.
"I think we'll have another item to bring before you at our
meeting in January," he added. "We'll talk about both of those, but
I think we've got our losses on the electricity covered."
Other items approved by unanimous vote
Denise Martinek, city clerk, was appointed to be the city's
freedom of information officer.
The city will seek bids for bar screen for the Palmer lift
station. Bids will be advertised with a return deadline of Feb. 16.
The city will seek bids for one new police squad car. This will
be the replacement vehicle for the new vehicle that was totaled in
an accident. Bids will be advertised with a return deadline of Feb.
16.
[By NILA SMITH]
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