Regular Session of the Board of Aldermen February 28, 2017

Regular Session of the Board of Aldermen February 28, 2017

CITY OF SHREWSBURY

BOARD OF ALDERMEN

WORK SESSION OF THE BOARD OF ALDERMEN

July 25, 2017

A Work Session of the Board of Aldermen of the City of Shrewsbury, Missouri was held at 6:00 p.m. this 25thday ofJuly, 2017 in the Aldermanic Conference Room of City Hall for the transaction of such business that may come before the Board.

Present:

Mayor...... Felicity Buckley

Alderman...... Elmer Kauffmann

Alderman...... Mike Travaglini

Alderman...... Chris Gorman

Alderman...... Sam Scherer

Alderman...... Ed Kopff

Absent: Alderman...... Rick Steingruby

Also present:

Director of Administration...... Jonathan D. Greever

Director of Finance...... Danielle Oettle

Street Superintendent...... Tony Wagner

Police Chief...... Jeff Keller

Fire Chief...... Chris Amenn

Parks Director...... Chris Buck

City Attorney...... Mike Daming

Roll Call

Mayor Buckley opened the meeting and City Clerk Kathy Marlockcommenced with the roll call. Alderman Steingruby was absent, all other board members were present.

Approval of Minutes

The minutes for the 7-11-2017 Regular Session of the Board of Alderman were reviewed. Alderwoman Gorman made a motion to accept the minutes as presented. Alderman Scherer seconded. The minutes were unanimously approved.

Fiscal Year 2016 Audit Results – RubinBrown, LLP (Presentation – Mr. Jeff Winter).

Mayor Buckley introduced the topic of the Fiscal Year 2016 Audit Results prepared by RubinBrown. Mr. Jeff Winter presented the overview clarifying that the audit was conducted on the basic financial statements of the City of Shrewsbury for the year that ended December 31, 2016. Please see Appendix A- RubinBrownViewPoints.

The ViewPoint analysis provided the City of Shrewsbury an opportunity to conduct further analysis, if desired. RubinBrowndid not express an opinion on the internal controls on government activities per protocol.

The submission of the management letter confirmed that the financial statements presented, in a fair manner, the government activities. The standards the auditors benchmarked to were the commonly recognized Generally Accepted Accounting Principles (GAAP).

Mr. Winter commended Director Oettle for her prompt, professional timeliness in submitting documentation. In addition, Mr. Winter expressed RubinBrown’s opinion that “The financial statement referred to…are fairly presented in conformity with U.S. generally accepted accounting principles and include all property classified funds and other financial information of the primary government and all component units required by generally accepted accounting principles to be included in the financial reporting entity,” (RubinBrown Management Letter, Page 1, Jun3 27, 2017). See Appendix B.

Two key recommendations were issued from the discussion: first, the City should account for and track capital asset dispositions and their associated accumulated depreciations, in the future. Second, RubinBrown recommended that the City maintain a list of employee status changes relative to pension plan participants reported to LAGERS, as required per pension accounting standards, in accordance with Government Accounting Standards Board (GASB) Statement No. 68.

RubinBrown further recommended that the capitalization policy be amended from $100 to $5000 per capital asset addition in line with industry standards. Finally, it was clarified and emphasized that the RubinBrown Management Letter was addressed only to the Mayor and Board of Aldermen was not intended for any other audience or use.

The Mayor ended the discussion with one clarifying question, “How far back does the pension list need to be considered?” Mr. Winter noted that the pension list should simply address the year under audit or review.

Mr. Winter then finalized the discussion with a focus on the goal of financial operations. That goal is to grow the General Fund Balances. General Fund Balances represent a kind of rainy day fund. Historically, the City has drawn upon such a fund in times of determined need.

Hear Citizens

None

Fiscal Year 2017 – Six Month Fiscal Review

Director Oettle reported on the first six month of Fiscal Year 2017 compared to the first six months of Fiscal Year 2016. The Board of Aldermen reviewed the financial overview.

Brief highlights:

• Revenue across all funds $3,527,340 which is $261,125 more than last year at this time.
• Expenses at $4.4 million and is approximately $187,000 more than last year, at this time.
• General Fund Revenue is about 44.5% or $74,000 more than last year at this time.
• Ambulance Revenue higher by $25,000

Alderman Travaglinirequested an explanation clarifying the increase in Ambulance revenue? Chief Amenn responded that call volume was up 10% compared to the first quarter of the year and the Fire Department billing agency was changed, and, as a result, the collection of debt improved. The Mayor commented that nothing out of the ordinary has occurred. The projected surplus for 2017 was forecast to be approximately $30,000 which was viewed as still a valid projection.

Discussion

Airbnb

The Mayor introduced the discussion on Airbnb’s. The Board members reviewed and discussed the survey results. Alderman Kopff asked the question, “Do City ordinances permit Airbnb in Shrewsbury?” The Mayor said it is inadequately addressed. Director Greever indicated that the ordinances address “home businesses” and become a matter of definitions when discussing short-term rentals as a business.

Alderman Travaglini indicated that there was no urgency in addressing the topic. He said the City can take a thoughtful approach to considering the type of regulation that would address the Airbnb market and take care of this in a manner that allows thorough consideration.

The Mayor indicated that the City does need to address Airbnb before there is a large influx of such businesses regulation is far more difficult after the fact. Mayor Buckley reminded the Board that this issue is not black and white and the municipal examples provided offer helpful regulatory considerations.

The Mayor emphasized the difference between residential purposes such as a one-year rental contract of a home versus the transient population who might lease an Airbnb property. She also emphasized the difference between a neighborhood environment and a commercial environment.

The Mayor encouraged the Board of Aldermen to review the municipal examples again. She also encouraged the Board members to consider having town-hall meetings for each of the wards and invite the residents to share their view. Suggested meeting details included: City Center, 5-8 p.m., specific rooms dedicated to each ward. Alderman Kauffman suggested that the residents come for both a Renovated Facilities Tour as well as Ward Conversation on Airbnb.

Alderwoman Gorman clarified that she wants to balance home values and homeowner rights. Alderman Travaglini clarified that homeowners can rent their property. Alderman Kopff said he wants to process a clear ordinance that does not have loopholes.

The Mayor concluded the conversation with a focus on the zoning aspects of the city that control the type of building and purpose of the building in any given area.

Next Steps:

Occupancy Permit Restriction

The Mayor concluded the conversation with City Attorney Mike Daming commentary. Given the presence of an occupancy permit requirement, Airbnb do not require an Occupancy Permit so the use is in violation of the residency standard. The City Code does not contemplate the presence of Airbnb’s. The Mayor indicated that the City of Shrewsbury could reach out to the properties that are perceived as being Airbnb’s to request that they come into compliance by applying for an Occupancy Permit, each time occupants change.

Ward Townhall Meetings

At the August 22, 2017 Work Session, the Board of Alderman will host Ward Meetings to discuss the Airbnb topic. The Aldermen will host their respective sessions. The Mayor requested sign-in sheets for each session.

The Mayor also encouraged the Aldermen to contemplate the conversation in advance. She anticipated that some residents may be amenable to Airbnb’s sounds fine but they will also want to know what kind of regulations might be imposed?

Community Relations Fall Festival Fireworks (10-7-2017) and Open House-October 11, 2017

The Mayor introduced the topic of hosting Fireworks at the Fall Festival. The Board of Alderman approved a $5,000 budget for fireworks for the October 7, 2017 Festival.

The Board of Alderman also approved a Renovated Facilities Tour of the City Center with a special focus on the Sunset Ballroom on October 11, 2017. Invitees will include Wedding Planners, Church Event Planners and coordinators, residents, and additional types of Event Planning vendors. The Mayor reminded the Board of Alderman that $6,000 had been allocated toward a special mailer but the Mayor suggested the money could be redirected for decorating the Ballroom to set the room up as if a special event were occurring and a full page advertisement could be purchased in the Webster-Kirkwood Times.

Commercial Vehicle Traffic Regulations

The Mayor introduced the topic of Commercial vehicles on the City streets. A sample ordinance both revised and a clean copy were reviewed by the Board of Aldermen. The vehicles are regulated to those of delivering freight and merchandise. There are legal restrictions as to what can be banned. City Attorney Mike Daming advised that per state law a complete ban of commercial vehicles cannot be enacted. Examples of deliveries exempt from such regulation include FedEx and the routine mailing of packages to resident addresses. The last time the ordinance was updated was January 31, 1961. Alderman Kauffmann asked a question as to the streets that would have Commercial vehicle traffic regulations. Director Greever cited City Code. 383.020 and the link to schedule VIII noting said streets.

Texting and Driving

The Mayor tabled the discussion on Texting and Driving given the absence of Alderman Rick Steingruby who represented a strong interest in past discussions.

Old Business

None

New Business

None

Hear the Citizens

Elisa Reeves, 7272 Murdoch Avenue, Shrewsbury, MO. 63119.

Ms. Reeves thanked the Board of Aldermen for addressing Commercial traffic in the municipality.

Adjournment

Alderman Travaglini made a motion to adjourn the Work Session to move to Closed Session. Alderman Kauffmann seconded the motion, and it passed unanimously.

Respectfully submitted,

______

Mary Kathryn Marlock

City Clerk

ATTEST:

Felicity Buckley,

Mayor

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