SPECIAL MEETING OF THE CITY OF HUDSON COMMON COUNCIL

MINUTES OF WEDNESDAY, MARCH 23, 2005

Meeting called to order by Mayor Jack Breault in the Council Chambers of City Hall at 7:00 p.m.

PRESENT: Mayor Breault and Alderpersons Mike Laatsch, Paul Radermacher, Roger Riedel, Scot O’Malley, and Carah Koch.

ABSENT: Alderperson Dennis O’Connell.

OTHERS PRESENT: Finance Officer Betty Caruso, Dan Roeglin, Steve Apfelbacher, Don Gilbert, Dennis Darnold, Jim Eulberg, Devin Willi (7:35 p.m.),and others.

2005 CAPITAL PROJECTS AND FUNDING SOURCES AND TABOR SUMMARY RE: LEVY LIMITS: Finance Officer Betty Caruso explained the meaning of prepaid assessments. Steve Apfelbacher, President of Ehlers & Associates, Inc., reported on issues regarding the City’s existing debt. He presented two preliminary financing options: Option A, finance $2,500,00 in Capital Projects, or Option B, finance $3,000,000 in Capital Projects. He stated that the City has been able to maintain their budget and keep the mill rate down due to the growth in valuations.

Mayor Breault added that bonding should be considered at this time, due to recent changes proposed by the State Legislature. Mr. Apfelbacher noted that the City has until July 1^st to issue additional debt; levy limits could apply after that date. He reported that paying off some current debt, taking advantage of lower interest rates, and restructuring the maturity schedules for new and old debt would maintain the present debt levy of $1.0 and $1.2 million a year.

Discussion continued comparing of Options A and B. Ms. Caruso presented a summary of the City’s 2005 financing needs. If the City issues notes, Mr. Apfelbacher suggested meeting with Moody’s Investors Service in Chicago to update the City’s bond rating. Mayor Breault received verbal authorization from the Council to travel to Chicago to seek an A-1 bond rating for the City.

Ms. Caruso continued with a detailed description of the current financial situation. She requested direction from the Council in order to begin the borrowing process. MOTION by Radermacher, second by O’Malley, to approve the 2005 Capital Projects in the amount of $2,500,000, with funding and associated agreements as outlined in Option A, as presented by Finance Officer Betty Caruso. Discussion continued; Council members agreed that Option A made the most sense for the City. All ayes, MOTION CARRIED. Mayor Breault thanked and congratulated Ms. Caruso, Department Heads, Steve Apfelbacher, and members of the Park Board for the great job in completing the presentation.

2003 AUDIT: O’Malley voiced concern that the computer data produced does not allow the annual audit to be completed in a timely manner. He recognized that the State regulations regarding GASB 34 were a large part of the problem. Discussion continued and included the recommendation of using an outside consultant to find out ways to streamline the system and make the audit process more productive. Mayor added that an outside analysis of the entire operation, not just computers, could help management. Ms. Caruso stated that she believed the computer system was not the reason for the late audit report. She noted that additional personnel are needed, and she was aware that other areas in the State experienced the same situation due to GASB 34 reporting requirements. Mayor Breault stated that she would get the help needed in order to provide the proper information in a timely manner for completion of the audit.

Discussion continued regarding the possibility of hiring an outside consultant to perform an assessment; this matter will be considered by Council in the near future.

TOURIST INFORMATION CENTER ISSUES: Mayor Breault stated that he and Dennis Darnold were requesting Council approval to proceed with negotiations with the Department of Transportation and Department of Tourism regarding the I-94 Tourist Information Center in Hudson. He stated that some issues they would be considering were traffic on Crest View Drive and repairs to bring the current building up to date. Mayor Breault stated that the City could take possession of the property and maintain it for approximately $60,000 to $70,000 per year. He noted that the building could also be leased back to the Tourism Department, adding that the land use must be government-related. He explained that the DOT has offered to maintain the access road, but it would be part of the City’s thoroughfare. Dennis Darnold stated that an analysis of road extension costs was needed. He noted that if the facility continued to be used as a Tourist Information Center, it would be staffed by the State.

MOTION by O’Malley, second by Riedel, to approve continuation of the City’s negotiations with the Wisconsin Departments of Tourism and Transportation regarding the I-94 Tourist Information Center facility. MOTION CARRIED.

SPECIAL REVENUE FUND BUDGETS: Finance Officer Betty Caruso recommended Council adoption of the Revenue Fund Budgets, as presented. She stated that GASB 34 required that Special Revenue Funds be reported with a budget to actual comparison. MOTION by O’Malley, second by Koch, to approve the 2005 Special Revenue Fund budgets, as submitted. MOTION CARRIED.

MOTION by O’Malley, second by Radermacher to adjourn the meeting. Meeting adjourned at 8:20 p.m. MOTION CARRIED.

Nancy Norvold, City Clerk

I hereby certify that the City Clerk has submitted the foregoing minutes to me, and I hereby by my signature approve said minutes and all acts of the Common Council as sent forth therein.

John D. Breault, Mayor