The City
Council met at
Guests in attendance: Jim Hansen, Izetta Dierking, Linda Booth, Darren Tooley.
City staff in attendance: Wayne Rush, Jim Blum, Terri Abel.
Motion by
Motion by
Henningsen, seconded by
There was no Treasurer’s report available at the time of the Council meeting. Motion by Booth, seconded by Zimmerman to approve the Clerk’s report. Ayes: Griffith, Henningsen, Booth, Zimmerman, Wood. Carried.
The Council members reviewed Pay Request #3 in conjunction with the ongoing Water Treatment System Improvements Project. Blum commented that construction will begin as soon as the weather allows.
Motion by
Jim Blum, on behalf of four property owners, requested the City’s financial participation in the replacement of residential sidewalk. The properties are as follows: 72’ of sidewalk in front of the Bruce and Carol Rosenbaum residence at 607 Atlantic Street; 98’ of sidewalk in front of the Shannon and Teresa Griffith residence at 600 Antique City Drive; 61’ of sidewalk in front of the Richard Haire and Mary Jackman residence at 604 Antique City Drive; and 41’ of sidewalk in front of the Kenneth and Linda Jones residence at 305 Atlantic Street. The current request for sidewalk replacement totaled 272 feet at the City’s cost of $1,360.00. Blum requested that the sidewalk replacement be included in the program for FY 07-08 since the $5,000.00 annual allocation had not as yet been expended. Jim also reminded the Council members that they had approved sidewalk replacement at the Vic Nielsen property at the last regular City Council meeting. Since the meeting, Blum had measured Nielsen’s sidewalk, which totaled 52 feet that is in need of replacement. Blum also stated that he would like to include Nielsen’s sidewalk replacement in the residential sidewalk program for the current fiscal year. By including Nielsen’s sidewalk, the current request would total $1,620.00.
The Council members reviewed the requirements of participation in the residential sidewalk program. After the completed sidewalk has been inspected by the City Superintendent, the City will reimburse property owners for sidewalk replacement at $5.00 per running foot. Because the City has not yet exhausted the total $5,000.00 allocated for FY 07-08, Blum’s request was to include the detailed five properties in the sidewalk allocation for the current fiscal year.
Motion by Griffith, seconded by Booth to approve the City’s financial participation in residential sidewalk replacement at property owned by Bruce and Carol Rosenbaum at 607 Atlantic Street; Shannon and Teresa Griffith at 600 Antique City Drive; Richard Haire and Mary Jackman at 604 Antique City Drive; and Kenneth and Linda Jones at 305 Atlantic Street. Ayes: Henningsen, Griffith, Zimmerman, Wood, Booth. Carried.
There was no decision made
regarding the City’s financial participation in the repair of sidewalk at
There was no discussion of park mowing.
Relative to Fire Department discussion, the Council members considered the Fire Department’s recommendation of Darrell Stamp as Fire Chief.
Motion by Booth, seconded by Zimmerman to approve the Fire Department’s recommendation of Darrell Stamp as Fire Chief. Ayes: Wood, Griffith, Henningsen, Booth, Zimmerman. Carried.
Breck Henningsen, who is a member of the City Council as well as a member of the Fire Department, reported that the Fire Chief had made arrangements for the Fire Department to receive a used Ford Explorer at no cost. Henningsen reported that some of the members of the Fire Department were upset about the acquisition because they had not been previously informed. Breck also commented that even if the vehicle was free, there would still be upkeep and the cost of insurance to consider. He also noted that the Fire Department had not requested approval from the City Council prior to obtaining the vehicle. Henningsen was not certain of the status of the vehicle, whether the Department had kept the vehicle or whether the vehicle had been returned. Booth questioned the purpose for the vehicle. Henningsen stated that the Explorer was intended to be an instant command vehicle; the vehicle would also be driven to fire schools and other training for the members of the Fire Department. Currently the City pays the Department members mileage when they drive their personal vehicles to training opportunities.
Henningsen stated that he would attempt to obtain further information concerning the vehicle, and he would report back to the City Council.
Relative to discussion of the Walnut Housing Rehabilitation Program, Abel reported that work had begun at the Raymond McLaughlin residence, which is located at
Jim Hansen was present at the Council meeting to introduce Darren Tooley as the new Civil Defense Director. Hansen stated that he was retiring as the City’s Civil Defense Director after twenty years of service. He reported that Darren Tooley had volunteered to take over his position. Mayor LaVonne Wood thanked Hansen for his many years of service to the community, and she welcomed Tooley to the position.
Motion by Booth, seconded by Henningsen to approve Darren Tooley to replace Jim Hansen as Civil Defense Director. Ayes: Wood, Zimmerman, Henningsen, Booth, Griffith. Carried.
A lengthy discussion followed regarding the possible adoption of a resolution transferring $65,624.32 from the General Fund into the Local Option Capital Improvements Fund. Abel explained that during the review of the recent City Audit by a manager at the State Auditor’s Office, the recommendation had been made to make a corrective transfer from the General Fund into the Local Option Capital Improvements Fund. According to the manager, when originally voting for the implementation of a local option sales tax, the residents of Walnut voted that 90% of the tax would be used for infrastructure expenses and 10% of the tax would be used for property tax relief. Abel indicated that she had been monthly depositing 90% of the local option sales tax proceeds into the General Fund and 10% of the local option sales tax proceeds into the Local Option Capital Improvements Fund. Abel indicated that she had felt that there were more than enough infrastructure expenses paid from the General Fund to cover the 90% of LOST money that was to be spent for infrastructure expenses. Abel stated that she had considered expenses for major equipment purchases, such as the purchase of an ambulance, as an infrastructure expense. However, the audit manager disallowed any expenses for equipment as infrastructure expenses. The audit manager had requested that Abel calculate all disbursements or transfers made for infrastructure from the General Fund and any disbursements made for infrastructure from Water and Sewer if funded from user charges, but not infrastructure financed with debt. Abel was also instructed to compile a listing of the total LOST received, including the amount credited to the General Fund and the amount credited to capital projects for fiscal 2003, 2004, 2005, 2006, and 2007. She was requested to compile a listing of the City’s infrastructure disbursements and transfers made from the General Fund and the Water and Sewer funds if funded from user charges for fiscal 2003, 2004, 2005, 2006, and 2007. After compiling all of the information and forwarding it to the Auditor’s Office, the audit manager informed Abel that her recommendation would be to make a corrective transfer of $65,624.32 from the General Fund into the Local Option Capital Improvements Fund.
The Council members reviewed the General Fund balance as included in the Clerk’s report. The General Fund has a current balance of approximately $127,000.00. The Hi Fi Account, which is also General Fund money, has a current actual balance of $62,523.03. Abel noted that the corrective transfer would essentially transfer the excess General Fund money that is currently in the Hi Fi Account into the Local Option Capital Improvements Fund. She noted that it would be her intent to close the Hi Fi Account and transfer all of it plus the remaining approximately $3,000.00 from the General Fund into the Local Option Capital Improvements Fund.
Abel noted that the corrective transfer could be viewed as beneficial because the increased revenue in the Local Option Capital Improvements Fund could be utilized for a curb and gutter project, which has been badly needed for a long time. However, the corrective transfer could also be viewed as detrimental because the balance in the General Fund would be compromised. Accordingly, the General Fund balance would no longer benefit from future receipt of 90% of local option sales tax revenue. Abel indicated that in the future, she would be required to transfer 10% of LOST into the General Fund and 90% of LOST into the Local Option Capital Improvements Fund. She stated that it would be her intent in the future to transfer back money from the Local Option Capital Improvements Fund into the General Fund for any disbursements or transfers made for infrastructure expenses. However, if equipment expenses could not be considered as infrastructure expenses, it would certainly not be possible to transfer all of the LOST revenue back into the General Fund. The balance in the General Fund would, likewise, eventually suffer. The receipt of hotel motel tax should help to increase the General Fund balance, but it will not be enough to offset the diminished LOST revenue.
The audit manager stated that she believed that when the voters of Walnut went to the polls to vote concerning the implementation of a local option sales tax, they believed that 90% of the receipts would be used for infrastructure expenses, not for the purchase of equipment. Abel stated that the expenditures that were made for water main improvements and water plant improvements would be considered infrastructure expenses, however, the expenditures could not be taken into consideration for the calculation of analyzing the City’s use of LOST credited to the General Fund because the infrastructure was financed with debt.
Street administration expenses were disallowed by the audit manager as infrastructure expenditures. The Council members all agreed that they considered the administration that is required for streets, including the cost of street equipment, tools, and repairs, as street infrastructure expenses. Booth stated that such street expenses should have been considered and included in analyzing the City’s use of LOST credited to the General Fund.
Booth suggested that perhaps the Council consider putting the matter of local option sales tax back on the ballot to request that the public broaden the definition of infrastructure to include the purchase of equipment. Abel indicated that the Council would not be able to broaden the definition of infrastructure, but the question on the ballot could broaden the use of local option sales tax to include the purchase of equipment.
Abel reported that the audit manager had volunteered to discuss and explain her recommendation to the members of the City Council. The Council members felt that her travel to Walnut would only increase the cost of the audit, and they did not feel that her explanation would be necessary.
All of the Council members agreed that most of the voters in Walnut had no idea of the definition of infrastructure when they voted for 90% of the revenue from LOST to be used for infrastructure expenses. Booth felt that the purchase of equipment should be considered an infrastructure expense; however, the definition of infrastructure that was provided by the audit manager did not include equipment. The definition of infrastructure stated that infrastructure is long-lived capital assets that normally are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets. Examples of infrastructure assets include roads, bridges, tunnels, drainage systems, water and sewer systems, dams, and lighting systems. Abel stated that the members of the City Council had purposely decided that the word infrastructure should be included on the ballot question in order to give the Council a broad choice of where to spend the LOST funding.
Both Griffith and Booth questioned what would happen should the Council choose to forego making a corrective transfer from the General Fund into the Local Option Capital Improvements Fund. Abel could not answer the question, but she stated that she has always felt that the City should comply with any audit recommendations that are made. But Abel was clear that she did not agree with the opinion that equipment was not infrastructure.
Booth once again made the suggestion that the Council put the matter back on the ballot, broadening the purpose for which the LOST funds could be spent. Booth also felt that perhaps it would be advantageous for the City Council to invite the audit manager to a Council meeting to explain that the City Council did not believe that it was going against the intent of the voters when spending LOST revenue. Booth stated that he thought that Abel should inform the State Auditor’s Office that the City Council did not want to comply with the recommendation concerning a corrective transfer of funds.
Abel stated that the City Council would be able to use the Local Option Capital Improvements Fund for any infrastructure expense, including water or sewer lines. She also indicated that at the end of each fiscal year, she would calculate the amount of General Fund money that was spent for infrastructure, and she would prepare a resolution to reimburse the General Fund from the Local Option Capital Improvements Fund.
Abel reminded the Council members that the transfer did not diminish the amount of funding available to the City; the transfer would diminish the City’s flexibility to spend the funding. Booth again made the comment that he did not feel that the voters intent was to prohibit the City Council from spending LOST funding for equipment purchases.
During the course of the discussion, Abel indicated that she hoped to receive the full audit report before the next regular City Council meeting. When the audit report arrives, it will be available for Council review.
Motion by Booth, seconded by
It was reported to the Council that the budget for FY 2007-2008 should be amended by $15,000.00 in the program of Culture and Recreation, $115,000.00 in the program of Debt Service, and $15,000.00 in the program of Public Safety. It appears that the original budget for the three functions will be overspent. In order to spend more than what is allocated in any of the nine functions, it is necessary to amend the current budget. The $15,000.00 amendment in the program of Culture and Recreation and the $15,000.00 amendment in the program of Public Safety were necessary because the audit mandated that the City include any expenditures that are made through separately maintained accounts, namely accounts that are held by the Walnut Public Library and the Walnut Volunteer Fire Department. Even though the City had no records pertaining to expenditures that are made by the Fire Department through a separately maintained fund, it became necessary for the City to consider those expenditures and amend its budget when appropriate. Likewise, any expenditures that were made by the Walnut Public Library through its memorial fund also had to be considered when amending the budget. The $115,000.00 amendment in the program of Debt Service was necessary because Abel stated that she had included the debt service expenditure in the function of Business Type Activities, when it should have been included in the function of Debt Service.
Motion by Griffith, seconded by Booth to amend the FY 2007-2008 budget by $15,000.00 in the program of Culture and Recreation, $115,000.00 in the program of Debt Service, and $15,000.00 in the program of Public Safety with the public hearing being set for Thursday, May 1, 2008 at 5:00 p.m. Ayes: Wood, Griffith, Booth, Henningsen, Zimmerman. Carried.
It was reported that general garbage pick-up will take place on Thursday,
April 24 and
Relative to discussion of City maintenance, Blum distributed a summary graph of the amount of water that was pumped per month during the years 2002 until March of 2008. Each year was color coded. The graph revealed that the amount of water that has been pumped has continued to decrease since 2002. The decrease is partly due to the repair of water mains, the replacement of leaking water mains, and the recent water distribution system improvements that were accomplished in 2005. The amount of pumped water has drastically decreased since the old cast iron water mains were replaced. The amount of water loss has consistently improved since 2002.
Blum also distributed a graph
showing millions of gallons pumped per year.
Data was included on the graph from 1989 until the end of 2007. In 2000, the City pumped 70 million gallons
of water compared to 32 million gallons in 2006 and 2007. The graphs are on file in
Blum reported that the City men are planning to exercise water valves within the week, and the water tower will be inspected within the month.
Jim stated that he had discussed
the repair of the brick streets with the contractor from
Blum stated that he had discussed
the repair of
Jim reported that he is planning to attend a wastewater meeting within the week.
Booth commented that the Interstate ramps have deteriorated and are in relatively poor shape.
Regarding Mayor items or announcements, the Council members were provided
with information pertaining to a petition that has been
filed in the Office of the Clerk of Court for
Relative to
Council items or announcements, Booth reported that the quarterly inspection of
City property has not yet been completed.
Booth stated that he has noticed that a speed limit sign is missing on
The Council members were provided with information concerning two upcoming workshops.
The Smart Economic Development
Conference, sponsored by the Iowa Department of Economic Development, will be
held on
The Iowa League of Cities Small
City Workshop will be held on
There were no public items or announcements.
Motion by Booth, seconded by Zimmerman to pay the following bills and issue warrants for the same. Ayes: Henningsen, Griffith, Booth, Wood, Zimmerman. Carried.
#14648
#14649 Terri Abel, wages 958.14
#14650 James Blum, wages 967.47
#14651 Wayne Rush, wages 778.40
#14652
#14653 Wellmark Blue Cross Blue Shield, employee insurance 3,948.88
#14654 Herb Wood, hauling; rent of dumpsters; recycling fee 3,010.00
#14655 U.S. Postmaster, billing postage 99.84
#14656 Ray McLaughlin, meal allowance, Housing Rehabilitation Program 162.50
#14657 Super 8 Motel, temporary relocation fees, Housing Rehab. Program 740.74
#14658 Terri Abel, wages 958.14
#14659 Karri Bennett, wages 240.95
#14660 James Blum, wages 967.47
#14661 Tamie Langlois, wages 99.50
#14662 Margo Matthies, wages 899.10
#14663 Wayne Rush, wages 778.40
#14664
#14665 Terri Abel, wages 227.32
#14666 James Blum, wages 270.70
#14667 Wayne Rush, wages 162.56
#14668 Advanced Water Technology, Calciquest; chlorine 604.39
#14669 Benefit Services Plus Administrators, employee insurance 99.96
#14670
#14671 Cappel’s, repairs to water salesman 27.92
#14672 Carley Drug Co., shipping fees 57.38
#14673 City of
#14674 City of Walnut, water deposit to account 50.00
#14675 Continental Research Corp., deodorizer 181.47
#14676 Countryside Trucking, trucking of gravel 290.57
#14677 Dona Grooms, Treasurer fee 100.00
#14678 Internal Revenue Service, Federal withholdings 726.43
#14679 Ingram, books 137.82
#14680 Iowa Association of Municipal Utilities, membership dues 384.34
#14681
#14682 Iowa Water Pollution Control, training – Blum 36.00
#14683 IPERS, withholdings 1,034.94
#14684 Kasperbauer Cleaners, Inc., cleaning floor mats 42.86
#14685 Kathy Hansen, cleaning
#14686 Kum & Go, fuel 669.84
#14687 Margo Matthies, Library supplies;
#14688 Internal Revenue Service, Medicare withholdings 301.69
#14689 MidAmerica Books, books 90.65
#14690 MidAmerican Energy Co., gas & electricity 4,636.04
#14691 Morton Salt, salt 2,982.63
#14692
#14693 Oakview Construction, Inc., Pay Request #3, Water Plant Project 70,416.85
#14694 Pott. Co. Sheriff’s Office, Apr., May, Jun., 2008, police protection 3,836.88
#14695 Pott.
#14696 Salvo, Deren, Schenck & Lauterbach, consults 56.00
#14697 Internal Revenue Service, Social Security withholdings 1,289.72
#14698 Sorensen Equipment Co., tractor repair 119.29
#14699 Taste of Home, subscription 29.98
#14700 Treasurer of State, 1st quarter sales tax 2,197.79
#14701 Treasurer, State of
#14702 U.S. Postmaster, postage 123.00
#14703 Verizon Wireless, cell phones 101.62
#14704
#14705 Walnut Telephone Co., phone; Internet; fax 279.38
Summary of Receipts: General, 15,345.74; Road Use Tax, 7,472.38;
Trust & Agency, 1,444.24; Water, 9,359.55; Sewer, 2,461.07; Local Option
Capital Improvements Fund, 683.44; Water Revenue Bond Sinking Fund, 1,650.00;
Customer Water Deposit, 103.49;
Meeting adjourned,
________________________________ __________________________________
LaVonne Wood Terri L. Abel
Mayor City Clerk