12 AUG 16.docCITY OF JACKSONVILLE
REGULAR CITY COUNCIL MEETING
AUGUST 16, 2012
7:00 P.M. – 7:30 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 16, 2012 at the regular meeting place of the City Council. Alderman Howard delivered the invocation and Acting Vice Mayor Smith
led a standing audience in the “Pledge of Allegiance” to the flag. He then explained that Mayor Fletcher is attending a Municipal League meeting out of town and Vice Mayor Reedie Ray
has honored him with serving as Acting Vice Mayor for what is his last City Council meeting. He related that he and his wife have sold their home and are moving to Vilonia. He acknowledged
attendance of his daughter and her husband, April and Russell Burrows, and his son Mike Smith.
ROLL CALL: Aldermen: Elliott, McCleary, Sansing, Ray, Rinker, Stroud, Robinson, and
Howard answered roll call. Acting Vice Mayor Smith also answered ROLL CALL declaring a quorum. PRESENT EIGHT (8), ABSENT (2). Mayor Fletcher was attending Municipal League out of
town.
Others present for the meeting were: City Attorney Robert Bamburg, Finance Director Cheryl Erkel, Fire Chief John Vanderhoof, Public Works Director Jim Oakley, City Engineer
Jay Whisker, Police Chief Gary Sipes, IT Director Barbara McDaniel, Human Resource Director Jill Ross, CDBG Director Theresa Watson, 911 Communications Director Tabby Hughes, Rizzell
Aaron, Planning Commissioner Jim Moore, Mary Twitty, Helen Stroud, Edith Smith, Gerald Clark, Roger Sundermeier, Derrick Evans, Freddie Booker, interested citizens, and members of the
press.
PRESENTATION OF MINUTES:
Acting Vice Mayor Smith presented the minutes of the regular City Council meeting of August 2, 2012 for approval and/or correction at the next regularly
scheduled City Council meeting.
APPROVAL AND/OR CORRECTION OF MINUTES:
Alderman Howard moved, seconded by Alderman Stroud that the minutes of the regular City Council meeting of 19
July 2012 be APPROVED. MOTION CARRIED.
CONSENT AGENDA: REGULAR MONTHLY REPORT/FIRE DEPARTMENT
Alderman Ray moved, seconded by Alderman McCleary to approve the regular monthly report
for July 2012 from the Jacksonville Fire Department, reflecting a fire loss of $0.00 and a savings total of $0.00.
REGULAR MONTHLY REPORT/ENGINEERING DEPARTMENT
Alderman Ray moved,
seconded by Alderman McCleary to approve the Regular Monthly Report for July 2012.
PERMITS/LICENSE ISSUED INSPECTIONS PREFORMED
Building Permits 72 Building Inspections
45
Business Licenses 7 Electrical 40
Plumbing 43 HVACR 27
CITY OF JACKSONVILLE
REGULAR CITY COUNCIL MEETING
AUGUST 16, 2012
7:00 P.M. – 7:30 P.M.
REGULAR MONTHLY REPORT/ANIMAL CONTROL
Alderman Ray moved, seconded by Alderman McCleary to
approve the regular monthly Animal Control report for July 2012. Said reports reflect:
ADOPTION/FINES: $1,360.00
CONTRIBUTIONS: $ 0.00
TOTAL: $1,360.00
ROLL CALL:
Aldermen: Elliott, McCleary, Sansing, Ray, Rinker, Stroud, Robinson, and Howard voted AYE. MOTION CARRIED.
WATER DEPARTMENT:
WASTEWATER DEPARTMENT:
FIRE DEPARTMENT:
POLICE DEPARTMENT:
STREET DEPARTMENT:
SANITATION DEPARTMENT: Request to fund petty cash for Recycling Center
Finance Director Cheryl Erkel requested a petty cash fund for the Recycling Center, explaining
that the Center charges $1.00 per tire for an individual collection of more than four tires. She stated that the employees are having problems making change, so she is requesting a
$40.00 petty cash fund.
Alderman Ray moved, seconded by Alderman Stroud to approve the funding of a $40.00 petty cash for the Recycling Center. MOTION CARRIED.
PARKS & RECREATION:
PLANNING COMMISSION: ORDINANCE 1456 (#18-2012)
AN ORDINANCE RECLASSIFYING PROPERTY IN THE CITY OF JACKSONVILLE, ARKANSAS (GENERAL LOCATION: NORTHEASTERN AVENUE AND PLUMMER DRIVE);
AMENDING ORDINANCE NUMBERS 213 AND 238 AND THE LAND USE MAP OF THE CITY OF JACKSONVILLE, ARKANSAS; AND, FOR OTHER PURPOSES.
Alderman Stroud moved, seconded by Alderman Ray that Ordinance
1456 be placed on FIRST READING. ROLL CALL: Aldermen Elliott, McCleary, Sansing, Ray, Rinker, Stroud, Robinson, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney
Bamburg read the heading of Ordinance 1456.
City Engineer Whisker related that the area had been zoned for mobile homes, noting that apartments were constructed many years ago on the
property and now the landowner is requesting to change the zoning to match the current use of the property along with a smaller tract of land adjacent to the rear.
CITY OF JACKSONVILLE
REGULAR CITY COUNCIL MEETING
AUGUST 16, 2012
7:00 P.M. – 7:30 P.M.
Discussion ensued regarding a moratorium on mobile homes and City Attorney Bamburg clarified
that the item would be on the next regularly scheduled City Council meeting agenda, but may not be as a moratorium.
Alderman Stroud moved, seconded by Alderman McCleary to APPROVE
Ordinance 1456 on FIRST READING and to suspend the rules and place Ordinance 1456 on SECOND READING. ROLL CALL: Aldermen Elliott, McCleary, Sansing, Ray, Rinker, Stroud, Robinson, and
Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1456.
Alderman Stroud moved, seconded by Alderman Robinson to APPROVE Ordinance
1456 on SECOND READING and to further suspend the rules and place Ordinance 1456 on THIRD and FINAL READING. ROLL CALL: Aldermen Elliott, McCleary, Sansing, Ray, Rinker, Stroud, Robinson,
and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1456.
Alderman Stroud moved, seconded by Alderman Ray that Ordinance 1456
be APPROVED AND ADOPTED. ROLL CALL: Aldermen Elliott, Smith, McCleary, Sansing, Ray, Rinker, Stroud, Robinson, and Howard voted AYE. NAY (0). MOTION CARRIED.
ORDINANCE APPROVED,
ADOPTED, AND NUMBERED 1456 THIS 16th DAY OF AUGUST 2012.
GENERAL: PRESENTATION OF THE 2011 CAFR
Gerald Clark of McAllister & Associates stated that it is his privilege to present
the Comprehensive Annual Financial Report (CAFR) for the City of Jacksonville year ended December 31, 2011.
Calendar year 2011 marks the 15th consecutive year that the City has prepared
a Comprehensive Annual Financial Report. This annual report was prepared by the City’s Finance Department. It contains financial statements audited by the City’s auditing firm, McAlister
& Associates, P.A., CPAs, and also pertinent financial, economic, demographic, and statistical information related to the City of Jacksonville over a ten-year period.
While the CAFR
is not a required document, it is used by the City’s Administration to assess internal operations, by the community to assess the City’s use of tax revenue; and by prospective industries
that might be looking to relocate to the City. It is also an important tool used by bond rating agencies to review and assign ratings to bond issues.
Each year since 1997, the City’s
CAFR has received the Certificate of Excellence in Financial Reporting. The Certificate of Achievement is the highest form of recognition in governmental accounting and financial reporting
awarded by the Government Finance Officers Association (GFOA).
CITY OF JACKSONVILLE
REGULAR CITY COUNCIL MEETING
AUGUST 16, 2012
7:00 P.M. – 7:30 P.M.
As in the past, the 2011 Comprehensive Annual Financial Report has been submitted to
GFOA for award consideration.
In response to a question from Acting Vice Mayor Smith, Mr. Clark answered that the City of Jacksonville has received the award for 15 consecutive years.
Management’s
Representations
This report consists of management’s representations concerning the finances of the City of Jacksonville. Consequently, management assumes full responsibility for the
accuracy of the data provided and the completeness and fairness of presentation of the financial statements, including all disclosures.
Independent Audit
The goal of the audit was to
provide reasonable assurance that the financial statements of the City for the year ended December 31, 2011, 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, 2011. 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 audit 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
and procedures. 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.
CITY OF JACKSONVILLE
REGULAR CITY COUNCIL MEETING
AUGUST 16, 2012
7:00 P.M. – 7:30 P.M.
He pointed out one item in the management letter that relates to the adoption of a new
accounting pronouncement, which is GASB Statement No. 54 that was implemented by the City in this year’s financial statements. He explained that under this statement, the Sales Tax Fund
and the Emergency 911 Fund, no longer met the governmental accounting standards regarding the new definition for special revenue funds. He noted that their recommendation to close these
Funds has already been approved by the City Council at the last regularly scheduled City Council meeting. He added that the closing of these Funds will necessitate the amending of the
2012 General Fund Budget in order to include the revenues from the closed Funds as General Revenue funds.
Following are a few financial highlights of the 2011 report:
The Summary
Statement of Net Assets shown below indicates total assets of the City were $57,818,000 at the end of 2011, an increase of $987,000 from 2010. Total liabilities of the City were $6,661,000,
an increase of $1,063,000 over the prior year. Total assets exceeded total liabilities by $51.2 million ($51,156,451) at the end of 2011.
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 its investment in capital assets such as land, buildings,
infrastructure, and machinery and equipment. This amount at the end of 2011 was $37.5 million ($37,454,535) or 73% of total net assets. These capital assets are used to provide services
to the community and, as a result, they are not available for future spending.
An additional portion of the City’s net assets are subject to external restrictions as to how they may
be used. At the end of 2011 these restricted net assets totaled $2.1 million ($2,052,401) or 4% of total net assets.
The remaining balance, approximately $11.6 million ($11,649,515)
is considered unrestricted net assets. These are available to meet the City’s ongoing obligations to its citizens and creditors.
CITY OF JACKSONVILLE
REGULAR CITY COUNCIL MEETING
AUGUST 16, 2012
7:00 P.M. – 7:30 P.M.
City of Jacksonville
Summary Statement of Net Assets
December 31, 2011 and 2010
The
Summary Statement of Changes in Net Assets shown indicates total revenues of the City increased slightly in 2011 over 2010. 2011 revenues were $24,414,000 compared to $23,994,000 in
2010, an increase of about $420,000 or 1.75%. Total expenditures decreased slightly from $25,498,000 in 2010 to $24,490,000 in 2011. Overall, expenditures exceeded revenues by $75,930
resulting in a like decrease in the City’s net assets.
CITY OF JACKSONVILLE
REGULAR CITY COUNCIL MEETING
AUGUST 16, 2012
7:00 P.M. – 7:30 P.M.
City of Jacksonville
Summary Statement of Changes in Net Assets
December 31, 2011 and
2010
The City’s governmental funds, which are reported on the modified accrual basis of accounting, reported total 2011 revenues of $21.0 million ($21,041,000) and total expenditures
of $23.2 million ($23,233,000). Sales tax revenues which account for approximately 60% of all City revenues were $12,613,000 in 2011. This was a decrease of 4.1% from 2010 sales tax
revenue. State tax turnbacks and other intergovernmental revenues were $4.1 million ($4,054,000) in 2011 or approximately 20% of revenues; utility franchise taxes were $1.1 million ($1,057,000)
or 5% of total revenues.
CITY OF JACKSONVILLE
REGULAR CITY COUNCIL MEETING
AUGUST 16, 2012
7:00 P.M. – 7:30 P.M.
City of Jacksonville
Comparative Statement of Revenues and Expenditures-Governmental
Funds
The City’s General Fund finished 2011 with a fund balance of $3,527,772, which was an increase of $71,403 over the December 31, 2010 fund balance. General Fund revenues of
$5,114,000 million were $292,000 over budgeted revenues for the year, while General Fund expenditures of $17,853,000 million were $219,700 under budgeted expenditures for 2011.
CITY OF JACKSONVILLE
REGULAR CITY COUNCIL MEETING
AUGUST 16, 2012
7:00 P.M. – 7:30 P.M.
As a measure of the General Fund’s liquidity, the fund balance of $3,527,772 represents
approximately 20% of 2011 actual General Fund expenditures and 18.5% of 2012 General Fund 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 (16%) expenditures based on the most recent completed year. At the end of 2011, the balance on hand met this goal.
This minimum
level of fund balance is required to ensure funds availability for unforeseen emergencies that might severely impact the City’s ability to pay for basic operations and also to guarantee
the payment of debt obligations.
CITY OF JACKSONVILLE
REGULAR CITY COUNCIL MEETING
AUGUST 16, 2012
7:00 P.M. – 7:30 P.M.
General Fund Ending Fund Balance as a Percent of Budget
Conclusion
Setting the standard
for sound governance and fiscal management remains a top priority of Jacksonville. The impact of the national recession has resulted in drastic budget cuts for many city governments
as their revenues have declined. Other cities have proposed tax increases, layoffs, furloughs, reduction in operating hours for parks, libraries, and recreation centers and significant
cuts in the levels of service provided to citizens. Jacksonville has not been immune to the recession. Sales tax revenues declined 4% in 2011. However, the City has taken proactive steps
to review processes and reduce operating costs while maintaining excellent levels of service. Operating expenditures of the City’s governmental funds decreased by $700,000 in 2011 as
a result of these efforts. At the end of 2011, Jacksonville remained relatively well-positioned for the future with fund balance reserves totaling in excess of $12 million in the General,
Street and Capital Projects Funds and only very minimal debt. This is a reflection of cumulative cost savings and process improvements that have resulted from years of planning and strong
financial leadership.
He stated that the preparation of this report would not have been possible without the dedication and committed services of key staff in the City’s Finance Department
under the leadership of Finance Director Cheryl Erkel. He expressed his appreciation to all City staff who assisted us in the audit and whose efforts resulted in a timely and successful
completion of this year’s report. He then expressed his appreciation once again to the City and the Council for allowing them to serve as the City’s auditors. He said that they very
much value their business relationship with the City of Jacksonville.
CITY OF JACKSONVILLE
REGULAR CITY COUNCIL MEETING
AUGUST 16, 2012
7:00 P.M. – 7:30 P.M.
Alderman Stroud moved, seconded by Alderman Sansing to approve the 2011 CAFR as presented.
MOTION CARRIED.
APPOINTMENT(S): ADVERTISING AND PROMOTION COMMISSION
Alderman Ray moved, seconded by Alderman Howard to approve the appointment of Alderman Kenny Elliott to serve
on the Jacksonville Advertising and Promotion Commission. MOTION CARRIED.
ANNOUNCEMENT(S): Arkansas Highway Department public hearing September 11, 2012 4-7 p.m. at the Community
Center Room C.
City Engineer Whisker explained that Hwy. 67/167 is due to be widened from Redmond Road to Austin, adding that the State Highway Department has funds that have been dedicated
for the Main and Redmond Road overpasses. He encouraged citizens to participate in the public hearing, noting that there are several proposed plans. He noted that if anyone is unable
to attend this public hearing there is another one scheduled on September 12th at the same time in Cabot at their high school media room.
ADDITION TO AGENDA:
Alderman Howard moved,
seconded by Alderman Ray to suspend the rules and place an item on the agenda regarding the scheduling of a public hearing regarding condemnations. MOTION CARRIED.
Alderman Ray moved,
seconded by Alderman Stroud to host a public hearing September 6, 2012 at 7:00 p.m. to consider condemnations of certain real property located in the City of Jacksonville. MOTION CARRIED.
Alderman Marshall Smith retiring from City Council
Alderman Ray announced that Alderman Smith is retiring from the City Council after 32 years of service. He related that he has
enjoyed serving with Alderman Smith, noting that he and Alderman Smith also served on the Rotary Club for many years. He recalled that when Alderman Smith was the Rotary Club President,
he served with him as Vice President. He then recalled that while he was campaigning Alderman Smith’s daughter supported him and accompanied him on a bicycle while he was walking in
various neighborhoods. He reiterated that he has enjoyed serving with Alderman Smith through the years, expressing good wishes for Alderman Smith and family.
Alderman Elliott concurred,
expressing his thanks to Alderman Smith for all his good work for the City of Jacksonville.
Alderman Rinker joined in wishing Alderman Smith well, mentioning that she also had the
honor of teaching Alderman Smith’s daughter, April, when she was 10 years old. She acknowledged April in the audience, adding that now April is a teacher herself. She stated that she
is honored to have served with Alderman Smith.
CITY OF JACKSONVILLE
REGULAR CITY COUNCIL MEETING
AUGUST 16, 2012
7:00 P.M. – 7:30 P.M.
Alderman Smith reminisced about when he began on City Council, noting many distinguished
individuals that he has had the honor of serving with and commenting on how fast the years have passed. He was filled with emotion, wishing the best for Jacksonville, saying that Jacksonville
is his home.
ADJOURNMENT: Without objection, Acting Vice Mayor Smith adjourned the meeting at approximately 7:30 p.m. MOTION CARRIED.
Respectfully,
________________________
_________________________
Susan L. Davitt MAYOR GARY FLETCHER
City Clerk-Treasurer