 Yeah Originally in the more I thought about it my cell phone doesn't work so good at home And I figured you guys wanted me to be in 4k clarity 5k well, it's coming I heard One my my neighbor I Yes, no reason could land in the pool. Are you there Mary Lynn? Mary Lynn's calling in right now Eric inform me I Sounds like we got a lot of people calling in which is great. I am going to With everyone who's on the phone, please say hello Oh Marilyn you might want to just call off. Do you have a list of who should be calling in I don't So I will just take a stab at it Jim Boren. I Hear you're in the council chamber. Yes, I am Marcus Valio about train Mitchell And did I hear Marcus No Marcus. No, not yet. All right Um, we have a quorum for our meeting why don't we Identify the other folks other than Todd who are in the council chamber Relying up Daryl Hoffland City Administrator Chad Pellishek planning director It was Mike van der Steen Okay, Vicki Schneider Melissa Ness Eric Bushman and Marty Halverson Yes Why don't we get started if you'll join me in your own way wherever you are in the pledge of allegiance Allegiance to the flag of the United States of America and to the Republic for which it stands One nation under God Indivisible with liberty and justice for all very good So just a couple of ground rules that have worked well so far If you are not speaking if you would put your microphone or your phone or whatever you have on mute that is helpful I'm going to continue on it on speaker If that becomes difficult for folks or if anyone else on the speakerphone as trouble will probably need to change that out If you wish to be recognized Just give a shout out to me and I will recognize you You'll have to identify yourself and then understand that there are Lapses in time, so we're gonna this will be pretty Particularly hard for me, but we're gonna give everybody a chance just to for that little Transfer of time before you start to speak if that's okay with everyone. All right Let's practice on 2.1, which is approval of the minutes of our March 9th meeting. Do I have motion to approve? If you can make sure your microphones are on mute Unless you're speaking I heard Todd Wolf Move to approve the minutes. I didn't get who seconded that Right, all right It's been moved in second to approve the minutes all in favor say die. Aye. Aye Sure, both sides again, we're getting some feedback, so please If you can make sure that your microphone is on mute if you're not speaking All right, we are going to go into 3.1 Which is the resolution to? From the board of water commissioners to approve seeking approval of a taxable $3.1 million water revenue bond Participation notes to fund engineering costs ahead of the project construction and that was March 9th who wishes to speak on this to get started Mary Lynn, I believe this this is Marty from the water utility Mary Lynn is Joe do you want to do blood from the water? And Joe are you on the phone? I am yes Okay, very good Jerry Jerry Vanda Creek Sorry, Jerry Vanda Creek also from the water utilities on the line Okay, anybody else from the water utility All right, very good. Why don't you go ahead Joe and walk us through what you're looking for Well, just briefly we're at the introduction of a very large capital investment project We're referring to it as a raw water improvements project And it involves putting a new very large intake pipeline about a mile out into Lake Michigan And then some structure on the shoreline pumping stations and other equipment involved with that Currently all the water In the city comes through one of two intake pipelines one of those dates in 1909 and the other dates to 1959 and After a lot of review and planning and such we are convinced that the time is now to begin the next era of intake pipelines for the utility to serve For another hundred years. These do have a very long lifetime so what's before the committee tonight and what the Board of Water Commissioners has seen as well and Carol Worth is here also by phone to describe in more detail is the initial funding device for the project because it's a very large capital project. There are Very large engineering costs And we're just beginning in preliminary engineering so Ms. Worth has Aided us in identifying a short term financing tool for the engineering cost And and that is the issue before the committee tonight Um, okay Carol are you on the phone? Yes, I am okay, and uh Why don't you walk us through? As briefly as you can but in as much detail as you need to the um bond Anticipation note. I think that's what Joe was referring to That is correct And uh, I do have a handout that was distributed for This meeting that does contain some of the details And I know that's further on down in your agenda So if you'd like I can just briefly describe it here, and then we can Go through the report when we get to that point on your agenda if that's okay with you If that's the case then why don't we just wait Why don't we just wait Until we get to that point on the agenda unless If anyone feels that there's anything else that we need to uh to take on right at this point Motion to approve 3.1 Is there and that was Todd yes All right, is there a second second jim boran Okay, is there any further discussion? All right with the understanding that we'll be going into this in more detail as we Go down the agenda all in favor state. Aye. Aye Aye Aye Any opposed Chair votes aye very good. So Carol just stay on the line We'll take it from there okay, actually item 3.2 is The operational and organizational assessment report From February 7th with regard to the city of shawaitan finance and human resources department Which was prepared by quickton larson allen as you'll remember this came to us February and it is our intent to continue discussion on this maryland to the new year Into the new council year Maryland with that in mind. Is there a motion? Yes, maryland. I would like to make a motion To move this to finance and personnel new committee Very good. Is there a second second boran Is there any discussion then on? Moving this to the new council year maryland This is this is boran. I have I have one question. I guess this would be for marty Marty how long into the new year the new council year would we expect? A report from you on your action plan for this document Thank you Yeah, thanks, jim We are currently in the process of taking the 30 page document and working it down into about a three page summary that each of the finance department and human resources department staff as well as some Information technology staff are taking the categories and putting them into priority groups Our time frame prior to the covet 19 was roughly The beginning of april. I believe it's going to take probably till the end of april with some of our priorities in different areas We currently are Trying to work with the staff in various locations, which adds a little bit of a challenge So I would expect that by The first finance and committee meeting in may we should be able to provide The summarize document With priority groupings to discuss I just had I have one question marty and that is Is there any low hanging fruit that you can kind of take care of from that report? One concern I had was just the cash handling at the at the cashiers desk I would imagine that would be something with procedure that you could take care of pretty quickly or have you already taken care of those There's yeah, jim. There's several items that have already been Either finalized or are in process of of adjusting and adapting and making changes So there are some low hanging fruit in each of the different categories that we're able to address Thank you very much You're welcome Are there any other questions or comments maryland? This is todd. Yes. I just wanted to make a couple of comments Just to kind of expand I wanted to expand on jim and marty's points We know that this report For finance and for human For hr is very important and we know that during the covet 19 has kind of changed some direction and and what's going on We want to make sure that we Take the report and we vet it very closely and and concisely working with the management and the in the teams And making sure that we we develop a good plan for moving forward To make this a better a better environment and a better process That's all Thank you any other comments In terms of marty's plan, which I think is a sound one We really need In addition to prioritizing and and and going through it carefully I think we really need a really strong plan to address many of the concerns that were brought up And so I think that's as well. What what? Both finance and human resources are working on and what we hope to Kind of get to in early may so with that in mind And no further discussion all in favor of the motion. Please stay die Aye Aye Any opposed Chair both sides and the motion passes. Thank you 3.3 is the petition and notice of the tax lien subject to tax foreclosure For 2014 15 and 16 Check are you in the room? Check's not with us I think that this is um Chuck was online I'm sorry. Chuck was online unless we lost him Oh, and I did. Yeah, he Oh, he was he He was Okay, I don't remember I think this is probably uh, if someone else has any information Um, this is a motion to uh, uh to accept in file Darryl, do you uh or marty have any other ideas about what we should be doing with this? Chad's actually coming to the microphone Okay So this is chad pelisheck and a lot of these we reserve this document a lot of these are city development loans that we have on properties that we've used money federal money to enhance people's selected properties a number of the other ones are Properties that we have judgments and leans against primarily in building code violations and some civil matters Um, some of these are good for the community. Some of these aren't so good for the community But this is a general course of action that we always get a notification from the county as to when they're going to foreclose and then we take appropriate steps on our ends to our end to Deem those loans uncollectible and the The city attorney's office files whatever is needed. So your motion of accepting and file This is more of a public record document just to notify you guys of the properties that they're going to foreclose on Motion to file Did I hear a motion to file yes from Todd From Todd As you look through this kind of long document The only sad thing for the city is that This action essentially forecloses all of the other leans that are on the property Should there be leftover money? I believe the county distributes this to lean holders, but Typically the city doesn't get a great deal out of this, but it's something that has to be done All right, there's no other discussion all in favor of the motion Hi Any opposed Sure both side motion passes All right I chuck Adams here just noting that I got cut off and I'm back on the call Okay You missed your moment in the sun. So, you know, what can I say? You were probably happy to be cut off. No, just kidding. Um, all right 3.4 and 3.5 Essentially are well, they're two different matters. Let's go to 3.4, which is providing for the sale of 3.1 million dollars in Uh, taxable water utility revenue bond and solicitation notes. Um, and chiral, are you still on the line? Yes, I am I assume you'll speak to both 3.4 and 3.5 That is correct Okay Well, I shouldn't I just assumed on 3.5, but let's go with 3.4 Um, away you go Okay I'm going to refer to a report that I have provided for the meeting And it's actually we'll be covering Both of those resolutions in the report And They are prepared in a very similar format. This is the process of starting to Uh, borrow money for 2020 And the resolution is called the set sale resolution It basically starts by identifying the dollar amount And the purpose in the first word as in each resolution So you will see for the water utility We have 3.1 million and the statutory purpose language is described as Costs of improvements additions extensions to the water utility and then specifically Mentioned the engineering and design costs of the intake project The city's cip resolution does Mention the 4 million 9 85 And the purposes which are the city's 2020 capital improvement plan purposes Then goes through a list of the items that we are borrowing for in statutory terms So that's where you have the building repairs innovations streets inside lock repairing improvements park improvements and upgrades storm water And acquisition of vehicles and other equipment. We also are financing some projects for the city's tax increment district The resolution Also in section 2 that as I should say the second whereas of each resolution talks about the type of Issue that we are going forward with so you will see in the water Resolution It talks about this issuance being a revenue bond Anticipation notes and again, this is an interim financing vehicle. It is a short-term vehicle It's still under the revenue bond statute. It is not general obligation that of the city The city's cip borrowing is listed as a general obligation promissory notes and promissory notes is What the city has for the most part traditionally used for its capital improvement borrowing And that means that we are restricted to a repayment period of Of 10 years or less and this is A general obligation supported by tax levy Can be offset by other revenues, but the security behind that is is tax levy the resolution both in section one identify again the dollar amount and the title of the issue and then in section two says that we're going to public sale And section three of the resolutions basically say that We are directing us our firm to proceed with the Notice of sale and the preparation of the official statement that's required in order to access the bond market um as a public sale the council takes i'm sorry the We will receive bids on behalf of the city on a certain date and time and We come back to the council for approval Of those results and we'll talk about that process in a little bit the issue details That we're referring to in the second part of my report on page one Does say that the city and the water utility begin the process with first of all I identify in approving the dollar amounts for the project We review the irs the federal law regulations with regard to spend downs how quickly the city And the utility are required to spend tax exempt money And we also reviewed structuring options and the debt for each of these is structured to coincide with the anticipated revenue stream for each purpose And we will and are in the process of preparing And it's an official statement for the city's cip issue and an official statement for the water utilities revenue band We distribute those into the marketplace and we also apply for a moody's bond rating The process for the bond rating is going to be one application for the city's long-term rating for the note And your long-term general obligation rating is a double a2 And we are also going to apply for the moody's Short-term rating and that's called a mig rating that stands for moody's investment grade for the water utility Revenue band the water utility does have a long-term moody's double a2 rating When you issue this type of a security this structure for an interim financing vehicle moody's will assign the short-term mig rating The administration of both the city and the utility and as well as myself for going to participate in the conference call scheduled on april 21st Moving to the second page of the report Now we're getting into the the details. We have the four million nine eighty five notes And they are issued for four purposes We have dollar amounts identified at the top three million six thirty five for the city cip And we have three other dollar amounts for various kid projects All these projects have been reviewed by bond council and are eligible for taxes and financing And will be secured by the levy of taxes with the expectation that there will be increment from the respective tiff districts to offset that levy And also there will be dollars that will come in from the bidding on the issue from the underwriters That will also offset that debt service In addition, we are expecting To do some refinancing later in 2020 Some 2007 bonds that are outstanding at at the rather high interest rates and could pose a Quite a savings opportunity for for the city, but we can't do it at this time Because that is subject to certain rules for refunding that means we have to do it within 90 days of Of the first call date which is later in the year All of the money for the city's cip because it is tax exempt Must be under federal law be spent in 24 months Because they are general obligation notes under state law We have to repay them or have a structure here to repay them within 10 years or less So these notes are structured out with a principal payment due on december 1st And that means december 1st of 2029 is the last date that we can have a principal maturity We will also have a prepayment feature beginning in the year 2027 So the the structure that you see there for 4,985 is for all three purposes We prepare this information back on march 11. And so I wanted you to see How we began the process with the structuring And you'll see the coupons are all 2% But you will see that there is a tic at the bottom which is called the true interest cost Of a 1.59 and the reason for that is because with this pricing the anticipated pricing It was expected that the city would receive over $130,000 of premium From investors and when you receive the premium that offsets that 2% coupon and that's how you get it down to the 159 So You'll see then the interest generated You'll see the total at the bottom is the pricing schedule What is significant about this pricing schedule? Is to track the market you track the yield column You'll see there that the yield for the first maturity is a 0.90 and It gradually walks up to the 2029 year of a 1.45 With all the coupons at 2% means that these are all Purchased as premium bonds, which is very standard for a bank-qualified tax exempt issue That difference between those two columns is a generating premium And that is reflected in the dollar price column to the far right side of the page And if you look at the total you'll see that total is $5,196 The difference between the 4,090 to five and that number is the premium, which is over 211 thousand dollars The underwriter keeps some of that to pay his expenses as well as all other expenses of our fee bond council and rating And then whatever he does not use for those purposes comes back to the city And the only thing you can do with that premium is use it to offset debt service payments But that does bring the true interest cost down to that 1.59, which is the very last number on page two Moving to page three we go through the exercise for the 3 million one of water revenue bands in the same way Now what's different about the revenue band is that this is an interim financing structure And the reason it's interim is because it is being used to provide for the engineering costs Which are very sizable right now Typically when you start a project and you have engineering costs Sometimes front that money until you actually get closer to the construction date With this 3 million dollars, of course that would create quite a Impact on the utility cash flow. So what we're doing is creating an interim financing vehicle until the time that the construction of the project is anticipated to begin which matching the timetable for the anticipated vehicle to use for the long-term revenue bonds and right now the The utility is preparing the application for a state of wisconsin state drinking water loan program that would provide 30 year financing for the project the Loan program right now provides 20 year loans However, the loan program is also in the process of Of applying or filling out whatever documentation is necessary in order to Be allowed to have 30 year loans for the state drinking water program And that is not anticipated to be a problem. But if we're just in the process of that Taking place right now Now worst-case scenario if that program is not available the Utilities high quality bond rating does allow you to have access to the municipal bond market Either way, they would become revenue bonds in either way in including this band They are obligations of the water utility paid from the water utility revenues generated through the rates That are applied for and approved through the public service commission There's no tax levy support pledge to their payment These bond anticipation notes even though we have them coming due all at one time All the principal is scheduled to come due on may 1st of 2024 Although we put a prepayment feature beginning on november 1st of 2021 we do that To maintain the flexibility for the utility to convert the principal payment to long-term financing through the safe Safe drinking water loan program when that program is available to do so and to take advantage of any any principal forgiveness or Interest subsidy available through that program If for some reason the program is taking a little bit longer to To complete its process of 30 year funding That's not a problem. That's the reason we put it out to the year 2024 to give Flexibility with the beginning of the construction of the project which is right now anticipated for june of 2022 Or as I said access to the availability of funding through the loan program So that's The reason why this is a little bit different It's an interim step But it provides a great deal of flexibility to the utility to respond to Providing funding while it is needed in order to cash flow the engineering class But it is also designed to accommodate a timetable For the safe drinking water loans program That program would Be able to refinance the principal amount on these on these revenue bands But in the meantime the interest payments would definitely be coming from the revenues of the water utilities The pricing summary is the Interest rates and the yield are both one and a half percent on at this time Now these are structured as taxable. They're not taxed exempt like the city's cipino And the reason for that is because of some of the unknowns with regard to the expenditure of the Cost related for this engineering cost if we did a tax exempt The utility would definitely have to commit to spending that within the 24 months If we do it as taxable There is no Quarterment as to how long you have to spend the fund so As we had discussed this with the commissioners We felt that the commissioners needed the flexibility of the expenditure period and So we structured this as a taxable and as a taxable It is very common for the coupon and the yield to be the same And they are actually bid at a discount. So it's a little bit different than What you would experience for the tax exempt structure So they would simply discount the issue for the amount of their expenses Which brings the true interest cost to the 1.63 Although built into this dollar amount It is expected that any other expenses associated with the issuance would be Taken out of that 3.1 million Okay Any questions up to this point? Does anyone have questions for carol? No, great job Okay, then I can continue on with the rest of the report which is Obviously on the same subject, but a little different information And that is page four Uh, we're going to talk a little bit about the market We I mean we always do talk about the market, but but we've gone through some Uh was we keep using that word unprecedented time during the month of march When we began this process and prepared this information the market experience um a quite a A large swing from what was recorded at the beginning of the month as record low to To the almost the end of the month as record high There was what's called a 200 basis points sell off 200 basis points is 2 percent So if you were looking at a yield that was 1 percent at the beginning of march, it was 3 percent within that same month Then on march 27th it started to turn around very very quickly where in two days The market was capturing or recapturing about a half a percent a day reversing that trend Now what happened during that time? Is a lot of um institutional investors like money markets, uh municipal bond funds Uh, they were selling off their municipal bonds into the marketplace And the underwriters were trying to absorb that sell-off. Well, what happened is there were more Bonds being sold off and there were purchasers to accept that sell-off So what happened is that created a liquidity problem in the market And that underwriters certainly did not have funds or capital to go out and purchase Issues new money issues in the market. So it really brought the market to a screeching halt so um what happened is that the um The fed took action In a couple of different ways that bottom line allows the federal government now And actually in some cases requires the federal government To actually purchase municipal bonds. So it's another buyer in the market And that made um the market quite happy and he started to see The trends turn around And I mean it's only been a couple of days. It seems like it's been a six months ago But it's every day. I mean we are monitoring markets so tightly Um throughout the morning and afternoon both to see what's going on But during that time um issuers all canceled their sales. I mean there was no sales because there was no money for the um The investors the underwriters to purchase The municipal bonds now when i'm talking about that bond market Okay, that particular bond market is called the general market. The general market definitely applies to Issues that are not being qualified and the city of shiboy again has been in the market Uh frequently with non-bank qualified bonds The notes are being qualified. What that means is that banks are still in the market banks Are still willing to buy bonds and has money to buy bonds. So that's a good thing So this is a good year for us to be going to market with bank qualified The taxable bond market is reacting some very close to the bank qualified market in the sense that banks Are interested in purchasing those so We've been a little bit more resilient than the um non bank qualified market that like I said was just about Shut down uh when this happened So we've been monitoring rates. Um, there's been a few Issues coming back into the market very slowly uh this week And next week there are a lot more issues on the calendar. So that's a good sign Uh, what we've been seeing In the last couple of days is we've been seeing uh two wisconsin issues I'd like to look at specifically wisconsin because of course it's a Very comparable result Because certain states have different tax advantages And I can tell you that um, we've had some good results here with uh, for example the The village of germantown soul, which is also a double a2 credit And they did pin your notes and their tic came in at a 1.75 And they had eight bits So you can see that there is definitely interest And the village of wanaki sold also on monday both of these sold on monday And that was a double a2 and 9.6 million that was 15 years and they came in at a 1.79 Also had eight bits so That's pretty much all we've seen so far for um sales from wisconsin there have been some sales for other states, but um There has been some, you know, uh interest in entering back into the market So when I look at those rates now, um from these last two issues And I put those yields on to the shabuigan uh geo notes That 1.59 tic that we've seen Um could become like a 1.9 Okay, because that includes expenses and it includes an assumption of what the underwriter class is going to be Which we don't know yet. It could be low lower than that. So it's a very conservative estimate If it really was that, you know, 1.9 Um, we would probably be about a hundred thousand dollars different From that number at a 1.59 now if we would have been selling during that high point that um Is that the market really reached Then we would have experienced the cost of about 300 000 more than what we are showing in this report So you can see that um, I did attach a graph Um of a market indicator that is used by all underwriters. It's called a b-vol curve That's my last page and you'll see From the month of march what exactly happened to interest rates and Where we're at ends of april 3rd, which of course was last week friday now since that time every day Has been coming in at anywhere from 10 to 15 basis points lower since friday So I know it's only a short lived Um Trends but uh, but at least we are seeing it going in in the right direction for now So with regard to the water revenue bands The high point we would have been looking at about a two and a quarter percent Right now again, there are not a ton of passables to look at I've looked at some from other states It would look like we're somewhere between a 1.8 and a two percent interest rate as of right now Okay, so so that's the impact of markets and um, and what We're seeing and what the trend is So that takes me to the final topic on page four, which is the award resolution Uh The next action besides the set sale resolutions by the council Is that you would adopt award resolution on the day of sale And those resolutions you'll have two separate ones one for the notes one for the band They will lock in the final terms and interest rates And you'll you'll you normally have your finance committee meeting where you receive that information Except that information and then we we have those uh, adopted by the council The night as a force and then the funds would be scheduled for delivery on may 18th to both Utility and the city now one thing that we are going to do in order to provide the City with a little bit more flexibility Uh, is we are going to have a different type of award resolution drafted that Will allow the city if we get to the end of the month of april And it's looking like something disastrous has happened in the market And we don't want to sell on may 4th Because the city has a definite locked in structure for its four million nine eighty five Then we would reserve the right for the council to take action on the fourth on a resolution that really grants the authority to the city administrator to award the bonds on a future sale date that won't be tied to a council meeting date But it'll be a future sale date when the market conditions are right Um, however, if we get to the meet close to that may 4th date And we see that things are going well and we're going to sell on may 4th Then we will be presenting you with the standard traditional award resolution for for your approval With regard to the revenue band, we are not going to have that type of resolution We are going to use the traditional award resolution for the draft as well as the final And the reason for that is because uh, we're dealing with an interim financing It is one maturity. It has a great deal of flexibility with the call So, um, and we're not, you know, we're not seeing anything at the moment that the taxable would be impacted As the tax exemptor or non bank qualified. Um, I should say bank qualified or non bank qualified market could be So, uh, with that, I think I've, uh, covered everything that I wanted to and, uh, be happy to answer any questions Mary Lynn anyone have questions for, uh, Carol Mary Lynn Yep, thank you. Um, I just wanted to Uh, thank Carol because she she does such a great job looking for different Ways for us to save money and consolidate especially right now with The very interesting times that we're in and I wanted to also thank her for explaining um some of the reactions that she's seeing and like in the b-valve and that b-val because, um One of my questions was going to be I know the government is Very concerned where people are going to start to be more conservative right now, which will actually take and twist things into a negative way and We definitely need to be able to give You know Daryl and the team the ability to make the decision to lock in as quickly as possible when they do see the best Um, the best opportunity out there. So I just wanted to say, uh, thank you She's answered like every question some that I didn't even realize I had so thank you Thank you Other questions for carol I had this is jim boran. I had one Carol when we get to the cities the city's borrowing And with the way the market is What what what have we talked about? What our tolerance would be for you are throwing around numbers of an additional 200,000 or 300,000 dollars Does it get to the point where? You know, we really have to take a look at delaying this borrowing as far as you know, our payback and that type of thing Yes, we do um part of that parameters resolution that is actually the revised award resolution We'll ask us to state in there in order to give direction to the city administrator It'll ask us to include things like What is the maximum interest rate that you would? award the bonds to what is the maximum purchase price that the underwriter can bid on the bond So we will definitely Need to have that information. We will have that discussion And we will then make that part of the resolution that the council will act on providing that direction to administrations Okay, that's uh, that's very helpful carol. Thank you Other questions for carol um, if not, I think what we will do is go to uh, 3.4 and I would ask for a resolution authorizing the city to Issue sale of 2.1 million in taxable water utility revenue bond and anticipation notes series 2020 b Motion to recommend Is there a second? second All right, we have a motion and second. Is there any other discussions? Hearing none all in favor state I I Hi I All right, any names? chair both I Very good. We'll go on to uh I'm sorry. I lost my place here to um resolution 187 uh requesting Asking for a motion to recommend that we authorized the city to issue scale of 4,985,000 dollars in general obligation promise story notes series 2020 Motion to recommend All right, second, some spray Um, is there any other discussions? Hearing none all in favor, please state I I I I Sorry, I didn't give you enough time to get in there. Um uh, there uh, any uh Uh, any votes again, sorry Hearing none, uh on the chair both side hearing none um The resolution is passed And I think Am I correct? Is this do it for carol or do we need? to um Continue on with to continue to have joe jerry and carol on the line I believe she's done. That's all that's on the agendas. Thank you Okay, if you folks want to ring off fine if you want to stay that's perfectly fine as well. Thanks carol. Thank you Okay, thank you. All right Okay, thank you. Thank you. All right. Thank you much. Bye. Bye. Take care Um We will move on to 3.6, which is the resolution terminating the city's uh tid number 11 Authorizing the finance director to distribute excess increment to overlying taxing districts Artie do you want to Mary Lynn this is chad pelishek Or chad very good. So the uh tiff district we're talking about today is tid 11 Which encompasses primarily the area around the washington square Um mall where the piggly wiggly is on the south side of shabuagan That district i think was created back in 1998 has a redevelopment of an old conical fill site. That was a contaminated property We've expended uh paid all our debt down in that district and it's ready to be closed. So Under a state statute we the council has to accept a resolution to terminate the tiff district and then pay out um The funds that are left in the fund balance to the taxing jurisdiction So i've gotten a couple calls from a few of you over what the Numbers look like so there's a roughly a fund balance of about 2.6 million in this fund The city's portion of the tax bill is about 38 percent. So we should see Around 980,000 the school districts is about 36 percent. So they should get around 936,000 Uh shabuagan county is about 22 percent of the tax bill. So they should get around 572 Governors are in 2000 and then lake shore technical college is about three percent um They would get about 80,000 and then there's some remainder One percent that goes to the state So that would be how the payout would roughly look the city's in for around 980,000 payout of this district and Those numbers will be finalized once cla completes the audit on the district and then Authorizes marty to release the checks and close the district the timeliness of this is the document needs to be approved by april 15th in order to comply with state Department of revenue regulations. So if there's any other questions, I'd be happy to answer them Marylin Yeah Uh, I just would like to ask chad. So chad these funds that come in where can we put them or do they just go to the general fund? Well, we're moving into a budget deficit. So maybe this will fill a year or two of that For the 500,000 that's missing from the power plant. So Well, I was wondering if we would actually use it. Uh, don't we have some some issues with south point? Being a I don't know. I mean that's going to be Have to be discussed where that money ultimately goes and what we use it for but we don't have to necessarily use it for another It's not subject to being used in another tiff district. Okay. Thank you. It can be used for general obligation or operational Don't tell daryl He's already calculated it Motion to recommend sounds like good news I think I heard a motion to recommend the termination of the district and uh distribution of the access increments That was at utah. Yes it was Okay, I'll second that All right. I'm seconded by jim. Any other questions or discussions? Hearing none all in favor state. Aye. Aye Aye Any opposed chair votes aye Good. Thank you Um 2.7 is a resolution establishing an early retirement incentive program and authorizing the city administrator An acting director of human resources to offer benefits to qualifying city employees Who'd like to take this for? This is marty. I will Take take this uh topic. Um, so the Policy that is in place For this agenda item is a result of the clifton larson allen assessment and some of the early identified areas of that assessment And uh coincide with finding the Appropriate staffing levels staffing individuals Both on engagement skill set and as a result Discussions took place certainly with staff in in giving the early feedback from this assessment and at times sometimes a individual is Not necessarily In exact alignment with what the assessment reveals and a policy was established to Um offer a early in early retirement incentive that would be Only For the non-exempt employees within the finance and hr department at this time As a result it affects really only two individuals as eligible and At this point, that's uh where we're at as far as The policy being the first step Um, certainly I can answer questions, but uh not looking to get into Specific names at this point Any questions for marty? This is jim. I have just a general question. We're not getting into any any specific people And and this might be something our our interim hr director could get involved in With the with the current situation with unemployment The maximum benefit I understand for this for for wisconsin is three three hundred Is three hundred and seventy dollars a week And with this latest thing that the federal government has passed that's an additional six hundred dollars So theoretically a person that's collecting unemployment could get nine hundred and seventy dollars a week My question is I don't know how long uh unemployment lasted wisconsin. I haven't had any recent experience with it And then the federal program I believe was going to go out two or three months I guess my question would be would it be a better deal for these employees To consider going on unemployment and collecting the state's amount along with the with the federal amount and come out Better than anything we would offer them on the way out the door Certainly jim. That's a that's a chuck adam here. Go ahead chuck Okay, um, so So the unemployment wouldn't work exactly that way The the issue would be is that typically in an unemployment you you you know, you're releasing someone uh, and you know either for cause or Because you don't have the work for them This program really deals with a uh a different circumstance. There's not necessarily You know some sort of disciplinary cause to to release somebody and and it's not necessarily that we don't have work for them Rather, it's it's really in response to the cla program. So Uh realistically, uh, I'm not I don't believe that unemployment would be an option under this particular situation Are you talking about the federal or the state or both? combination of of either one Okay, thank you. And then I guess also chuck, uh As long as you're there, uh if if we, uh If we just summarily, uh, let somebody go and they decided to sue us What kind of uh, what kind of dollars would we be looking at and then potentially if the the ex employee was Successful would that include us paying their legal fees also? Well, if you summarily let someone go, um You know, obviously it depends on the individual circumstance and you know, we're not This program isn't really designed. Um, you know, it's not aimed at one Employee or anything of the sort even though there's likely a limited number of people who would likely choose to take this um So it's going to really depend on the individual circumstances. What I can say is that um a if you summarily Terminate someone and you don't have the proper basis for doing it and you've done it for the improper reasons Yeah, potentially you can have um, you know significant costs including paying, uh You know what paying salaries that would have expected to have been paid Including paying the costs that the employee would incur in In filing that lawsuit Uh, and then one more thing chuck and that is as I would presume that these people these people that we would offer this to would be at will employees Uh What how does this fit in with an at will employee being my understanding of an at will employee They're serving at at our at our pleasure and if we decide to let them go Uh, they're an at will employee. They don't have as much recourse as as uh as an exempt an exempt employee. Would that be true? So an at will employee doesn't mean no recourse it just means that the nature of the recourse is is very specific in in this case, um, you know, what we're we're trying to do is Uh, recognize the fact that we have valuable employees that that have done service over the years that Things do sometimes change The cla report reflects some things that need to change and we're trying to find a good way to sort of Align the fact that we have valuable employees who provided good service in the past With the fact that there have been some changes and there's probably a need to Align the department in a somewhat different way That's that's very different than a circumstance where we just simply have decided that uh an employee is you know you know not someone that we want to have with us anymore at all and You know you terminate them. This is not this is a little bit of a different circumstance than that Thank you Are there any other questions for I'm just gonna I just want to make a comment on this initially. I wasn't going to support this but After thinking about it and you know knowing what what the payout potentially would be for an employee And the and possibly the legal repercussions It may be It may be and take advantage of for the city to offer this in lieu of Maybe a lot more expense. So on that in that regard, I'm going to vote for it. But uh, I I don't I still don't like the concept of having to Pay out large sums of money And I just hope that this doesn't set up precedent for future employees that Maybe considering retiring And may not be the best employees And are going to demand the same thing So that that's the danger that I see but I will support it because I think in the long run It's probably be more cost effective for the city. Thanks Mary Lynn motion to recommend All right If you have your microphone on if you could mute it that would be helpful Um, we have a motion to recommend That we establish an early retirement incentive program Uh, is there a second? Uh, second, Mitchell All right, we have a motion and a second. Is there any further discussions? I just wanted to give my thanks to Chuck for your excellent answers much appreciated Um with that in mind if there are no other Comments all those in favor, uh, please stay die. I I In the opposed chair votes to aye the motion is passed Um, we're going to go on to three point eight, which is a claim from ryan llc Um, I'm trying to see what kind of action we want on this this would be Yeah, this this is a claim. We're just asking for filing This is a this particular one. Uh, we uh, we did already pay All right, if we could have a motion to accept in file motion to recommend and file Very good any further discussions hearing none all in favor state. I hi Hi any mays I motion uh, pass it All right three point nine is a claim uh from scott brown and We are looking for A motion to accept in file motion to accept in file Second there's second all right um Is there any further discussion hearing none all in favor state. I hi hi I In the opposed chair votes aye 3.10 is a Claim from the schollion area school district motion to accept in file. All right very good And there's a second I think that's a second right Okay Um any further discussions Hearing none all those in favor state. I hi I Any opposed Chair votes aye motion passes Uh, 3.1 is a lot of claims to be Referred to Um to be referred to the Finance and personnel committee of the new common council motion to recommend to move to the new council Second there's second all right Any discussions Hearing none all in favor state. I hi hi Any opposed chair votes aye motion passes 3.12 are a variety of comments and complaints to be uh accepted in file Is there such a motion? so move Second all right. We have a motion there in a second any discussions Hearing none all in favor state. I hi I And uh any opposed Chair votes aye And 3.13 is Motion to move to the next council I Any opposed chair votes aye motion passes All right, we move on to 4.1, which is the summary of the community survey Darrell is that yours? Yes, it is. Thank you, madam chair I will keep my my comments relatively brief. I will be making a presentation to the common council tonight In substantially more detail But I did want to share with you which I feel are really incredible Positive trends over the five years that the city has been creating and sending out to our residents a community survey You'll note on the IFC It's identified that 1,455 Responses were received which is equivalent to a little over 3% of the city's residents who are 18 years Of age or older When we started Back in 2016 We've seen an increase of over 200% since that time just in one year alone from 2019 to 2020 We were 14 higher as far as responses We do have sort of two Lengths of surveys last year in conjunction with ARP We put together a very comprehensive survey And some of that information received was incorporated into this shabuigan livability plan This year was a shorter survey. We hope to work with the city's communication task force for the 2021 community survey To make sure that the questions more closely are tailored toward meeting The needs of our strategic plan Um, so we look forward to working on the survey questions as I mentioned And possibly changing some things up. The good news is that since 2015 to 2020 Several of the questions remain the same and as a result we're able to receive Some great sort of trend analysis Some of the things I'd like to go over And highlight are The key question that we've asked you every year is the overall quality of life in the city shabuigan Those that check the box excellent or good And we 80 percent of the overall respondents Check those boxes since 2016 that 80 percent Has increased 18 percent So again, it's really a bright Sort of a bright note to the overall Feelings that city residents have we also ask sort of a similar question Asking participants The general direction that the city is heading 79 percent indicated improving or steady This is consistent with a last year survey But a 36 increase over the five year period. So again a significant Sort of feeling amongst our residents That things are changing and things are changing in a positive way The next sort of set of questions are city performance related for overall performance Excellent or good 81 felt that way almost a 20 percent increase since 2016 One of our next item was one of our strategic plans focus area is communication. So we asked the question In keeping residents informed. How well are we doing? Excellent or good ratings 71 felt that that way that reflects a 23 gain From our initial 2016 survey. So over the five years that we've had the community strategic plan Again, this is something we've worked hard on We've changed things up internally. We have a new communication specialist So all this has contributed to an increase and residents are responding The largest upturn experience since the 2016 survey is to the question of delivering services efficiently The results indicate 63 of respondents checked excellent or good. That's a 32 increase 32 increase over a five year period For the top five rated city services or functions Those that responded very important or important The top five are fire service drinking water emergency medical services police services and public access to lake michigan These are all 80 percent or higher as being very important or important Of those top five that I mentioned I think four three or four of them have been consistently in the different surveys over the years Last year one that was part of the top five that was not in the top five this year is As far as being very important or important is attracting and keeping businesses So hopefully maybe that's a reflection that we have been successful So the residents are not Coding that or responding to that as as being very important or important Survey participants indicated positive gains is what in the to the question of how well the city is doing in each In each of our areas For the rating of excellent or good This is really interesting over the over the five year period Zoning and land use actually had the largest increase in improvement 37 increase in those checking excellent or good support for neighborhoods Six thirty seven percent increase street street tree maintenance of 36 rise and checking excellent or good public transits services 23 increase in overall city administration a 22 percent increase In 2019 The areas that received the highest excellent or good were ems Fire police and leaf pickup For excellent good rated city departments The top five were fire department me public library police department city clerks office and the senior activity center were tied for fourth and fifth place The fire department continues to just excel in their positive response By residents last year it was also in the top five With 93 percent so again being number one in 2019 at 93 percent Being excellent or good, but they even exceeded Sort of expectations in that they're now at 97 percent. So that's an incredible Support that this department has throughout the community Over the past five years those departments that received an excellent or good Increase The largest increase as far as over that six year period of time was actually the city administrator's office The next was common council finance department shoreline metro the mayor's office municipal court planning and development Uh property assessing city attorney and building inspection All those I mentioned had at least an eight percent or more increase The top into the range was as high as a 35 increase In a rating of excellent or good compared to when we started the surveys back in 2016 I mentioned earlier about top communication Our communication being important. So we also asked the residents. Where do you receive? Information or where do you search for information about the city of sheboygan? The city's website was number one sheboygan press was number two sheboygan sun Was number three whbl was four and next door was number five This is the first time that next door has appeared as one of the top five sources of revenue or information about the city's Operations last year Next as I mentioned next door. This is the first year. It's appeared on our top five list last year the fifth Spot was held by the city's facebook account For four most critical Projects are potential new initiatives. We asked an open-ended question and the top four subject matters No surprise the number one was street or street repair related questions or comments affordable housing Related comments was number two most frequently identified neighborhood revitalization And the last was business development including comments about downtown the mix of businesses in our community We actually had a few olive garden Comments that were mentioned, which is always humorous for all of us Chad pelishick says it's something that they teach as part of the curriculum at this public school district All in all The typical residents Checked the box that they were between the age of 56 and 65 As far as race 97 percent white as far as participants in the survey And for the category of how long have you resided within the city of shabuagan? 50 percent or more Checked the box that they had been residents for 25 years or more As I mentioned, I'm going into a slightly more detail at the common council meeting tonight Is there any questions of me at the finance and personnel committee level? Great job And I think we'll hold questions that they're on tell the council meeting give people a little bit of time to stretch their legs before The meeting starts which will be soon Unless there's a burning question Nice to have this information Motion to adjourn will be determined And I would ask for a motion to adjourn sine day Motion to adjourn Synod day Second all right on favor Hi All right, we are adjourned. Thank you all appreciate it Thanks everybody Is delmigalski gonna show up? I don't need to sit here. I can sit where you're sitting