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10 AUG 19.docCITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 19, 2010 7:00 P.M. – 7:51 P.M. REGULAR CITY COUNCIL MEETING - CITY HALL - #1 MUNICIPAL DRIVE The City Council of the City of Jacksonville, Arkansas met in regular session on August 19, 2010 at the regular meeting place of the Council. Alderman Howard delivered the invocation and Mayor Fletcher led a standing audience in the “Pledge of Allegiance” to the flag. ROLL CALL: Aldermen: Elliott, Smith, McCleary, Sansing, Ray, Rinker, Stroud, Twitty, and Howard answered roll call. Mayor Fletcher also answered ROLL CALL declaring a quorum. PRESENT NINE (9), ABSENT (1). Others present for the meeting were: Director of Administration Jim Durham, Finance Director Paul Mushrush, City Engineer Jay Whisker, Public Works Director Jim Oakley, CDBG Director Theresa Watson, Police Chief Gary Sipes, Fire Chief John Vanderhoof, Human Resource Director Jill Ross, Director of Information Technology Barbara Daniel, Parks and Recreation Director Kristen Griggs, Water Department Superintendent Mike Simpson, Mrs. Glenda Fletcher, Mrs. Marie Fletcher, Mrs. Tammy Bourdo, Mrs. Helen Stroud, Mr. Rizelle Aaron, Mrs. Addie Gibson, Mr. Jim Moore, Mr. Larry Smith, Mrs. Mary Twitty, Mr. Mike Traylor, Mr. Tommy Dupree, Mr. Gerald Clark, interested citizens, and members of the press. PRESENTATION OF MINUTES: Mayor Fletcher presented the minutes of the regular City Council meeting of August 5, 2010 for approval and/or correction at the next regularly scheduled City Council meeting. APPROVAL AND/OR CORRECTION OF MINUTES: Alderman Smith moved, seconded by Alderman Howard that the minutes of the regular City Council meeting of 15 July 2010 be APPROVED. MOTION CARRIED. CONSENT AGENDA: REGULAR MONTHLY REPORT/POLICE DEPARTMENT Alderman Elliott moved, seconded by Alderman Ray to approve the Regular Monthly Report for July 2010 regarding annual crime statistical comparisons. REGULAR MONTHLY REPORT/FIRE DEPARTMENT Alderman Elliott moved, seconded by Alderman Ray to approve the Regular Monthly Report for July 2010, which reflects a fire loss of $20,000.00 and a savings total of $40,000.00. ROLL CALL: Aldermen: Elliott, Smith, McCleary, Ray, Rinker, Stroud, Twitty, and Howard voted AYE. MOTION CARRIED. WATER DEPARTMENT: WASTEWATER DEPARTMENT: FIRE DEPARTMENT: Request to Accept Bid Mobile Data/Incident Routing Chief Vanderhoof stated that the Mobile Data/Incident Routing would computerize the fire trucks. He explained that it would provide mapping CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 19, 2010 7:00 P.M. – 7:51 P.M. and routing as well as all emergency vehicles being routed to the scene and locate area fire hydrants. He related that this would modernize the Department’s emergency response. He then answered that the bid is a budgeted item. Alderman Ray moved, seconded by Alderman Howard to accept the bid from OptiMetrics in the amount of $27,475.00. MOTION CARRIED. Mayor Fletcher noted that funds would be drawn from the Equipment Fund. POLICE DEPARTMENT: STREET DEPARTMENT: SANITATION DEPARTMENT: PARKS & RECREATION: PLANNING COMMISSION: GENERAL: a. Recognition of Pinewood Elementary Student DARE essay contest winner Police Officer Donald Bredenberg introduced 6th grade Pinewood student Caleb Kelley. He explained that Caleb Kelley won the Pinewood essay contest and his essay was submitted to the State, where he won as the Arkansas State essay winner. Mrs. Kelley introduced her oldest son, Jalin Kelley, who received the National Achievement Recognition for his efforts in math. She explained that he received the award as a 7th grade Algebra One student, adding that because of that award, her son was able to apply for a college scholarship. b. Mr. Bobby Roberts of CALS to introduce new librarian at Nixon Library Mr. Roberts thanked the City for its support of the Library, noting that circulation is up 41% since moving from the old building, attendance is up 16%, computer use has increased 37%, meeting room use is up 190% and the attendance of events has increased 390%. He stated that the real heart of the Library is the people who use and work in the Library, saying that he is delighted that Ms. Cindy Powell, who was the acting manager of the Library, has been appointed as manager. He noted that they are considering extending the hours of the Library. He reiterated his appreciation of the support of the City Council. Ms. Cindy Powell expressed her appreciation for the opportunity of being chosen, inviting everyone to come to the Library. She then expressed her appreciation for the new building and expanded services. Mayor Fletcher expressed the City’s pride, saying that the Library is an anchor for the downtown area. He stated that the City will begin a project in October to revitalize the Main Street area. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 19, 2010 7:00 P.M. – 7:51 P.M. c. City Audit of the 2009 CAFR presented by Mr. Gerald Clark Mr. Clark presented the City’s 2009 Comprehensive Annual Financial Report containing the 2009 financial statements and audit report. Following is Mr. Clark’s report to the City Council: The Comprehensive Annual Financial Report (CAFR) presents a comprehensive and detailed picture of the City’s financial transactions during the 2009 calendar year and the financial condition of the various funds as of December 31, 2009. Information contained in this report was prepared in accordance with guidelines set forth by the Government Finance Officers Association (GFOA). The CAFR is intended to provide a clearly articulated, user-friendly reporting of the City’s financial affairs. Report Format Section I, the Introductory Section, contains a financial overview, a discussion of the City’s economy, and organization charts for the City. Section II, the Financial Section, contains the auditor’s report, Management’s Discussion and Analysis (MD&A) of the financial statements, audited basic financial statements and notes thereto, and the underlying combining and individual fund financial statements and supporting schedules. Section III, the Statistical Section, sets forth selected unaudited economic, financial trend, and demographic information for the City on a multi-year basis. The City was awarded the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association for its 2008 report. The City has been awarded this honor for 12 consecutive years (1997-2008) and it is considered the highest form of recognition in governmental accounting and financial reporting. Its attainment represents a significant accomplishment by a City and its management. This year’s report has been submitted for consideration for the award. An award-winning CAFR shows dedication to fiscal responsibility and outstanding financial management and reporting. It promotes improved public finance and can increase the City’s credit rating as it presents additional technical information not found in a standard financial reporting package. Management’s Representations This report consists of management’s representations concerning the finances of the City. Consequently, management assumes full responsibility for completeness and reliability of all information presented. To provide a reasonable basis for making these representations, City management has established a comprehensive internal control framework designed both to protect City assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with GAAP. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 19, 2010 7:00 P.M. – 7:51 P.M. The City’s management has asserted that, to the best of their knowledge and belief, this financial report is complete and reliable in all material respects. Independent Audit The goal of our audit was to provide reasonable assurance that the financial statements of the City for the year ended December 31, 2009, are free of material misstatement. The audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Based upon our audit, we have rendered an unqualified opinion on the City’s financial statements for the year ended December 31, 2009. The audit report is presented as the first component of the financial section of the report. Professional standards governing Single Audit engagements require us as auditors to report not only on the fair presentation of the financial statements, but also to report on the government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal grant awards. We have done so and these reports are contained in the Single Audit Section of the report. No Material Weaknesses The audit disclosed no significant deficiencies or material weaknesses in relation to the City’s internal control over financial reporting and compliance with the requirements of laws, regulations, contracts and grants, including those applicable to Federal award programs. Management Letter We have issued a formal management letter, included with the annual report, which is a customary by-product of the audit process and is intended to provide management with suggestions and guidance in the ongoing effort to improve internal controls. Although the items noted in the letter do not involve material financial issues, management has agreed that improved controls are warranted and has set about to implement the recommendations. Following are some financial highlights of the 2009 report: You will find the first financial statement in the CAFR on pages 24-25 to be the “Statement of Net Assets.” This is essentially the City’s Balance Sheet, on the accrual basis of accounting. We’re pleased to report the City’s balance sheet remained relatively strong at the end of 2009 as total assets of the City exceeded total liabilities by approximately $52.7 million ($52,736,298). CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 19, 2010 7:00 P.M. – 7:51 P.M. The amount by which assets exceed liabilities is referred to as “Net Assets”. Net assets essentially are composed of three components: the largest of which, for the City, is it’s investment in capital assets such as land, buildings, infrastructure, and machinery and equipment, - this amount was $32.7 million ($32,735,694) or 62% of total net assets. These capital assets are used to provide services to citizens: and, as a result, they are not available for future spending since capital assets cannot be used to liquidate liabilities. An additional portion of the City’s net assets are subject to restrictions as to how they may be used. At the end of 2009 these restricted net assets totaled $4.3 million ($4,381,589) or 8% of total net assets. The remaining balance, approximately $15.6 million ($15,619,015) is considered unrestricted net assets and may be used to meet the City’s ongoing obligations to its citizens and creditors. Summary Statement of Net Assets -December 31, 2009 and 2008 Error! Not a valid link. The second financial statement in the CAFR is the Statement of Activities shown on pages 26-27. This statement is essentially the City’s Income Statement for the year on an accrual basis. Overall, the City’s net assets decreased by approximately $162,000 ($162,200) in 2009. Net assets of the governmental activities increased by approximately $814,000 ($814,253) in 2009, which was a 2% increase over beginning net assets. This was offset by a decrease in the net assets of the City’s business-type activities (essentially Sanitation Services and Emergency Medical Services), which decreased by $976,000 ($976,453) in 2009. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 19, 2010 7:00 P.M. – 7:51 P.M. Summary Statement of Changes in Net Assets -December 31, 2009 and 2008 Error! Not a valid link. On a modified accrual basis of accounting, the City’s total 2009 revenues were $21.6 million ($21,614,016) and total expenditures were $23.5 million ($23,577,813). Sales tax revenues - the City largest revenue source - accounted for 61% or $13.1 million ($13,149,636) of total revenues. However 2009 sales tax revenues as compared to 2008 were down approximately $500,000, or 3.6%. State tax turnbacks and other intergovernmental revenues were $4.1 million ($4,102,067) in 2009 (down 4.9% from 2008) or 19% of total revenues; and utility franchise taxes were $1.1 million ($1,131,386) or 5% of total revenues. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 19, 2010 7:00 P.M. – 7:51 P.M. Summary Statement of Revenues & Expenditures-Governmental Funds  Finally, looking at the City’s General Fund - at December 31, 2009, the General Fund reported a fund balance of $3.6 million ($3,571,855), an increase of $19,000 for the year. General Fund revenues were $515,000 under budgeted revenues for the year, while General Fund expenditures were $1.2 million under budgeted expenditures for 2009. Of the General Fund’s fund balance of $3.6 million at year-end, $3.5 million ($3,503,551) was unreserved and undesignated. This amount represents 20% of 2009 actual General Fund expenditures and 18% of 2010 budgeted expenditures. As a general policy, the City’s minimum target at the end of a fiscal year for the fund balance of the General Fund is 60 days expenditures based on the most recent completed year and, at the end of 2009, the balance on hand met this target. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 19, 2010 7:00 P.M. – 7:51 P.M. This minimum level of fund balance is required due to the sometimes cyclical nature of cash flow and also, the need for liquidity in case of a fiscal emergency. Budgetary Comparison Schedule-General Fund - December 31, 2009 Error! Not a valid link. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 19, 2010 7:00 P.M. – 7:51 P.M. Conclusion To conclude – I would point out that despite challenging economic times affecting many cities in Arkansas and across the United States, Jacksonville remains relatively well-positioned financially, with a balanced budget, uncommitted reserve balances in excess of $7 million at the end 2009, and very minimal debt. This reflects the cumulative effect of cost savings and process improvements that have been put in place not only in 2009, but also in prior years and we commend the City’s leadership for being fiscally responsible. The preparation of this report would not have been possible without the efficient and committed services of key staff in the City’s Finance Department under the leadership of Finance Director Paul Mushrush and Assistant Finance Director Cheryl Erkel. I would also like to express our appreciation to all City staff whose dedicated efforts resulted in a timely and successful completion of this year’s report. Finally, we want to express our appreciation once again to the City and the Council for allowing us the opportunity to serve as the City’s auditors. We value our business relationship with the City of Jacksonville. Alderman Smith moved, seconded by Alderman Stroud to accept the 2009 CAFR audit presented by Mr. Gerald Clark. MOTION CARRIED. d. ORDINANCE 1406 (#11-2010) AN ORDINANCE SUBMITTING TO THE VOTERS OF THE CITY OF JACKSONVILLE, ARKANSAS, AND OTHER AFFECTED PERSONS, THE QUESTION OF ANNEXATION TO THE CITY OF JACKSONVILLE, ARKANSAS, CERTAIN CONTIGUOUS TERRITORIES; DECLARING AN EMERGENCY; AND, FOR OTHER PURPOSES. Alderman Stroud moved, seconded by Alderman Ray to place Ordinance 1406 on FIRST READING. Chamber of Commerce Board Chairman Jason Wilkinson related that the mission of the Jacksonville Chamber of Commerce is to promote and develop Jacksonville by taking an active role in business recruitment and economic development. He stated that today the Jacksonville Chamber of Commerce Board of Directors voted to fully support the proposed annexation by the City of Jacksonville for the future sustained and controlled business and economic development along Hwy. 67/167-business corridor. Mayor Fletcher recognized Mr. Richard Roberts as the spokesman for opposition to the proposed annexation. Mr. Roberts thanked the City Council for allowing them to make a final summary opposing the proposed annexation. He analogized the annexation to a forced marriage of good intent but added that the residents do not want the annexation. He stated that it would not be a successful union. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 19, 2010 7:00 P.M. – 7:51 P.M. He related that they are opposed to the annexation because they prefer less government intervention, less government control, less government regulation, and less government bureaucracy. He stated that many of the residents live on lands that are not suitable for urban development; farmland, agricultural, timberland, swampland, and flood land. He pointed out that much of the land is very close to the LRAFB flight line, a base that is vital to our Country’s military defense and to the local economy in Central Arkansas. He related that he feels it would be wise to encourage residents to continue to live on rural acreages. He stated that in twenty or thirty years, the people of Central Arkansas would be very unhappy, if we encourage or permit “a bunch of Oak Ridge Subdivisions to dot this annexed area”. He stated that he is aware that the Oak Ridge Subdivision is a “sore subject” for the City of Jacksonville. He recapitulated the flooding issues in the Subdivision, which he stated are very real and serious, noting that the Subdivision was approved by the City of Jacksonville. He stated that a significant portion of the proposed annexation area is similar or worse flood plain property. He posed the question of why Jacksonville would want to annex swamp and flood land. He stated that there are serious environmental questions involved with many Federal regulations and oversight of flood lands and wetlands. He questioned if Jacksonville would really want to get involved with this “tar baby”. He related that he is aware that the City has been approached about amending the annexation to remove some of the more obvious unsuitable lands. He stated that he would hope that it is not too late for compromise and to find common ground. He added that compromise and working out problems together is a great American tradition. He reminded the City Council of the strong outpouring of opposition at the August 5th meeting, adding if it would be conceivable that these people would fund a legal effort to stop or delay the annexation if approved as is. He proposed the possibility of those residents mounting an advertising campaign against the annexation as is. He stated that he does not feel that it would be healthy for Jacksonville to find out. He asked that the City Council reconsider or modify the proposed annexation. Alderman Elliott related that he has spoken with many on both sides of the issue, adding that he feels everyone has valid concerns. He stated that he believes that rural acreage should be handled differently regarding possible future development. He related that the City Council should work to protect the rights of the rural landowners so as not to affect their way of life. He stated that the City Council needs to make sure that current property use is grandfathered. He added that rights of hunting should be protected as well as the right to have horses or cows. He reminded everyone that if the area is annexed, the City Council would also be representatives for the newly annexed people and should be responsive to their rights and wishes. He supported having ordinances in place prior to the Election that address these concerns so that the residents have something in writing. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 19, 2010 7:00 P.M. – 7:51 P.M. Alderman Smith concurred, saying that he understands that these residents have concerns and it is recognized that they live in a different environment. He assured the residents that the City Council would work with them to ensure their way of life. He related that he and Alderman Elliott would be their Ward representatives and they stand ready to work with the residents of the proposed annex area. He related that it is not always easy to sit on the City Council and make the hard decisions but they are willing to work with the residents. He agreed that ordinances need to be put in place to address those concerns. Alderman Sansing stated that while many people have spoken against the annexation he does not believe that is 100% of the people’s view. He read an email excerpt from a County resident who expressed support of the annexation. He noted that it stated some residents were too intimidated to speak in favor of the annexation. He related that the email offers fire and police protection as the top reasons they support the annexation, adding that controlled development of the 67/167 corridor is also important. Alderman Stroud acknowledge the concerns as presented to the City Council at the August 5th meeting, saying that there are ways the City Council can address their concerns and not bother their quality of life. He stated that in five years he feels those same residents will feel that the annexation was a good thing for them. He stated that the City Council will address their concerns prior to the Election. Alderman Ray moved, seconded by Alderman Stroud to call for a question to the vote. A member of the audience disrupted protocol for the call to question. Mayor Fletcher explained that a call to question ends all discussion as prescribed by Roberts Rules of Order. ROLL CALL for call to question: Alderman Elliott, Smith, McCleary, Sansing, Ray, Rinker, Stroud, Twitty, and Howard. MOTION CARRIED unanimously. ROLL CALL to place Ordinance 1406 on FIRST READING: Alderman Elliott, Smith, McCleary, Sansing, Ray, Rinker, Stroud, Twitty, and Howard. MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1406 (#11-2010). Alderman Stroud moved, seconded by Alderman Ray to accept Ordinance 1406 on FIRST READING and to suspend the rules and place Ordinance 1406 on SECOND READING. ROLL CALL: Aldermen Elliott, Smith, McCleary, Sansing, Ray, Rinker, Stroud, Twitty, and Howard voted AYE. (0) NAY. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 19, 2010 7:00 P.M. – 7:51 P.M. Alderman Stroud moved, seconded by Alderman Ray to accept Ordinance 1406 on SECOND READING and further suspend the rules and place Ordinance 1406 on THIRD AND FINAL READING. ROLL CALL: Aldermen Elliott, Smith, McCleary, Sansing, Ray, Rinker, Stroud, Twitty, and Howard voted AYE. (0) NAY. Alderman Stroud moved, seconded by Alderman Ray that Ordinance 1406 be APPROVED AND ADOPTED. Alderman Elliott stated that the City Council would be seeking, in the spirit of compromise, good and constructive comments as to what needs to be worked into the ordinances protecting rural landowners and what best addresses their needs and concerns. ROLL CALL: Aldermen Elliott, Smith, McCleary, Sansing, Ray, Rinker, Stroud, Twitty, and Howard voted AYE. (0) NAY. Alderman McCleary moved, seconded by Alderman Smith that the EMERGENCY CLAUSE be approved and adopted. ROLL CALL: Aldermen Elliott, Smith, McCleary, Sansing, Ray, Rinker, Stroud, Twitty, and Howard voted AYE. (0) NAY. ORDINANCE 1406 (#11-2010) APPROVED AND ADOTPED THIS 15TH DAY OF AUGUST, 2010. APPOINTMENT(S): PARKS AND RECREATION COMMISSION Alderman Howard moved, seconded by Alderman McCleary to approve the reappointment of Ronnie Higgins for a term to expire 5/09/2015. ANNOUNCEMENT(S): Mr. Patrick Thomas related his efforts to raise awareness for the Triple Negative Breast Cancer Foundation regarding a fundraiser. He explained that the “pink pig” mascot from area business, the Bar-B-Que Shack, has been absconded and is being held for a $5,000.00 ransom, which will be donated to the Foundation. He stated that the mascot has been tracked down to the City Council Chambers, but they are a little short on the ransom. He recognized Ms. Georgia Lewis, a Triple Negative Breast Cancer patient. Ms. Lewis related that when she was diagnosed with Triple Negative Breast Cancer in February of 2010 she had never heard of Triple Negative Breast Cancer. She explained targeted therapies for the disease, noting that it is unresponsive to the most effective treatments for breast cancer. She stated that this type of cancer is highly aggressive, having a high rate of metastasis to the brain, liver, GI tract, and ovaries. She related that it is more likely to recur in three to five years than other subtypes of breast cancer. She explained the need to create awareness for this type of breast cancer, adding that she is trying to bring awareness to the Jacksonville community. She thanked the City Council for allowing her to bring her message before them. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 19, 2010 7:00 P.M. – 7:51 P.M. ADJOURNMENT: Without objection, Mayor Fletcher adjourned the meeting at approximately 9:51 p.m. MOTION CARRIED. Respectfully, ________________________ _________________________ Susan L. Davitt MAYOR GARY FLETCHER City Clerk-Treasurer