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07 AUG 16.doc CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 16, 2007 7:00 P.M. – 7:25 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, 2007 at the regular meeting place of the Council. Alderman Stroud delivered the invocation and Acting Mayor Howard led a standing audience in the “Pledge of Allegiance” to the flag. ROLL CALL: Aldermen: Smith, McCleary, Rinker, Stroud, and Twitty answered roll call. Acting Mayor Howard also answered ROLL CALL declaring a quorum. PRESENT six (6), ABSENT (3). Mayor Swaim was out of town attending Municipal League meetings. Others present for the meeting were: City Attorney Robert Bamburg, Acting Deputy Clerk Carol Vaughn, Finance Director Paul Mushrush, Public Works Director Jim Oakley, Human Resource Director Jill Fourqurean, Parks and Recreation Director George Biggs, CDBG Director Theresa Watson, Fire Chief John Vanderhoof, Police Captain Charles Jenkins, Planning Commission Chairman Mike Traylor, Mr. Alfonso Nations, Mrs. Addie Gibson, Mr. Larry Smith, Mr. Gerald Clark, interested citizens and members of the press. PRESENTATION OF MINUTES: Acting Mayor Howard presented the minutes of the regular City Council meeting of August 2, 2007 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 Stroud that the minutes of the Regular City Council Meeting of 19 July 2007 be APPROVED. MOTION CARRIED with Acting Mayor Howard voting AYE. CONSENT AGENDA: REGULAR MONTHLY REPORT/ENGINEERING Alderman Stroud moved, seconded by Alderman McCleary to approve the Regular Monthly Report for July 2007. Said report reflects: PERMITS/LICENSE ISSUED INSPECTIONS PREFORMED Building Permits 29 Building Inspections 70 Business License 13 HVACR 50 Electrical 77 Plumbing 105 UNSIGHTLY & UNSANITARY VEHICLES Grass Letters 581 Notice of Noncompliance 8 Property Mowed 49 Towed 0 Trash Letters 76 Trash Removal 6 CONDEMNATIONS Property Maint. Letters 38 Structural Maint. Letters 0 Cost for February $1,135.00 Structural Repairs Made 0 Demolitions 0 1 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 16, 2007 7:00 P.M. – 7:25 P.M. REGULAR MONTHLY REPORT/ANIMAL CONTROL Alderman Stroud moved, seconded by Alderman McCleary to approve the Regular Monthly Animal Control Report for July 2007. Said report reflects: ADOPTION/FINES: $2,007.50 CONTRIBUTIONS: $ 21.25 TOTAL: $2,028.75 In response to a question posed by Alderman Stroud, Public Works Director Jim Oakley informed the Council that approximately fifteen citations have been issued to Pit Bull owners in violation of the Ordinance. He stated that neighbors are calling in reports of Pit Bulls in violation. He stated that he felt there could be as many as 300 more Pit Bulls in the City. He noted that 125 Pit Bull owners did register their dogs. ROLL CALL: Aldermen: Smith, McCleary, Rinker, Stroud, and Twitty voted AYE. MOTION CARRIED with Acting Mayor Howard voting AYE. WATER DEPARTMENT: WASTEWATER DEPARTMENT: FIRE DEPARTMENT: POLICE DEPARTMENT: STREET DEPARTMENT: SANITATION DEPARTMENT: PARKS & RECREATION: PLANNING COMMISSION: a. FINAL PLAT Jacksonville Commerce Subdivision Lots 1 & 2 Acting Mayor Howard stated that four final plats have been forwarded from the Planning Commission for approval, adding that he had spoken with Mr. Whisker who recommended approval. b. FINAL PLAT Wendi’s Corner c. FINAL PLAT Northlake PH X-C d. FINAL PLAT Jaxon Terrace Subdivision Alderman Smith moved, seconded by Alderman Rinker to approve the Final Plats of the Jacksonville Commerce Subdivision Lots 1 & 2, Wendi’s Corner, Northlake PH X-C, and the Jaxon Terrace Subdivision. MOTION CARRIED with Acting Mayor Howard voting AYE. GENERAL: Presentation of the 2006 CAFR and Annual Audit Mr. Gerald Clark, CPA with McAlister & Associates, expressed appreciation 2 on behalf of his firm regarding the opportunity to perform the audit for the City. He reviewed highlights from the financial report presentation CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 16, 2007 7:00 P.M. – 7:25 P.M. letter, adding that additionally the City Council received a copy of the audit management letter. He stated that the Comprehensive Annual Financial Report contains an abundance of information that can be utilized to evaluate the City’s financial condition and its operational and fiscal accountability. The CAFR provides a comprehensive summary of the City’s finances and other relevant information for the audit year, including economic overviews, financial analyses, financial statements, note disclosures, budgetary and other compliance schedules, statistical data and single audit information. He related that there are three main sections in the report; the introductory section that includes a transmittal letter written by the City’s management, a financial section that contains their audit opinion, and a statistical section including a ten-year history of financial and non-financial data that offers a context to understand the City’s financial statements. He stated that the report consist of management’s representations concerning the finances of the City of Jacksonville. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in the report. He stated that the goal of the audit was to provide reasonable assurance that the financial statements for the year ending December 2006 are free of material misstatement. The audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, adding that they assessed the accounting principals used and significant estimates made by management and evaluated the overall financial statement presentation. He stated that based on their procedures they have concluded that there was a reasonable basis for rendering an unqualified opinion that the City’s financial statements are fairly presented in conformity with generally accepted accounting principles. He then stated that the audit disclosed no material deficiencies or material weaknesses in relation to the City’s internal control over financial reporting or compliance with the requirements of laws, regulations, contracts and grants, including those applicable to Federal award programs. He stated that they have issued a formal management letter, included with the annual report, which is a customary and by—product of the audit process and is intended to provide management with suggestions and guidance in the ongoing effort to improve internal controls. He stated that the items noted in the letter did not involve material financial issues, but management did agree that improved controls are warranted and has set about to implement the recommendations. He then reported that between the fiscal years 2006 and 2005, on a City 3 wide basis that includes Wastewater and Waterworks utilities, total revenues for 2006 were 32.8 million compared to 2005 31.9 million. He added that expenditures totaled 27.0 million in 2006 and 25.0 million in 2005. He noted additional financial highlights, saying that net assets, which serves over time as a useful indicator of a government’s financial CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 16, 2007 7:00 P.M. – 7:25 P.M. position, total assets of the City exceeded total liabilities at the close of 2006 by $51,261,137. He stated that the majority of that amount is made up by the City’s investment in infrastructure and equipment, adding that $14,428,218 is considered unrestricted net assets and may be used to meet the City’s ongoing obligation to its citizens and creditors in accordance with the City’s fund designation and policy. He related that growth in net assets is a key measure to the overall fiscal health of a city, adding that the City’s total net assets increased by $8,318,105 in 2006. He stated that the net assets of the governmental activities increased by $8,392,549 in 2006, which is a 19% increase over 2005 ending net assets. He stated that one of the more widely used litmus test for measuring financial conditions is the “change in fund balance” or more commonly referred to in the private sector as “net income”. At the close of 2006, the City’s governmental funds reported a combined ending fund balance of $23,162,008, which was a positive change in fund balance of $5,861,976 from the prior year. He related that the unreserved portion of the fund balances is $7,590,711, which represents 33% of the total and is available for spending at the City’s discretion. He stated that like most, the City has to save for a “rainy day”, saying that means building the fund balance of the General Fund. He added that at the end of 2006, the total fund balance of the General Fund was $3,168,768 compared to $2,984,901 at the end of 2005, an increase of $183,867. He stated that the City’s minimum target at the end of a fiscal year for the General Fund balance is 60 days or approximately 17% of budgeted General Fund expenditures for the upcoming fiscal year. At the end of 2006, the balance on hand equated to 72 days or approximately 20.3% of the 2007 budgeted expenditures. He then related that the City’s bond indebtedness increased by $2,500,000 during 2006, adding that it is the first time in a long time that there have been any long-term bonds payable on the balance sheet. The increase is attributable to the issuance of 2006 Library Construction and Improvement bonds. He stated that the City’s component units, namely the Water, Wastewater utilities and A&P Commission, reported net assets of $45,399,851 as of December 31, 2006 which was an increase of $2,136,395 from 2005. He stated that in summary, these are all positive trends that provide 4 evidence that the City’s financial condition was strengthened in 2006. He concluded saying while other cities have experienced financial constraints and budgetary crisis, the City of Jacksonville remains financially strong and has achieved new highs in several revenue accounts, while working hard to maintain low overhead costs and expenditures. He related that he feels the City Council, Mayor, and Directors are to be commended for that accomplishment. He added that the preparation of this report would not have been possible without the efficient and committed services of key CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 16, 2007 7:00 P.M. – 7:25 P.M. staff in the City’s Finance Department under the leadership of Finance Director Paul Mushrush and Financial Manager Cheryl Erkel. He expressed his appreciation to all City staff whose dedicated efforts resulted in a timely and successful completion of this year’s report. He stated that the Mayor and City Council have continued to demonstrate a commitment to allocate the resources needed to ensure the ability to account, report, monitor, and control the financial operations and transactions of the City of Jacksonville in a responsible and progressive manner. He reiterated his appreciation to the City and the Council for allowing McAlister & Associates the opportunity to serve as the City auditors. He noted that three-year revenue charts were included in the report for review. Discussion ensued regarding a contract for repairs to the Community Center pool that was completed prior to waiving competitive bidding. Alderman Smith commended the audit, saying that he is proud the report conveys that the City continues to exercise prudent management. He thanked Mr. Clark for his work on the report. Mr. Mushrush related that the Finance Department implemented GASB Statement 34 one year earlier than required, adding that one item in the management letter does indicate the need to purchase fixed asset software. He stated that he was aware of the need to purchase new software. He noted that the CAFR has been sent for review by the GFOA for another certificate of Excellence in Finance Reporting, making 10 consecutive awards for the City of Jacksonville. APPOINTMENT(S): ANNOUNCEMENT(S): ADJOURNMENT: Without objection, Acting Mayor Howard adjourned the meeting at approximately 7:25 p.m. MOTION CARRIED. Respectfully, 5 ________________________ _________________________ Susan L. Davitt MAYOR TOMMY SWAIM City Clerk-Treasurer 6