The meeting was called to order by Mayor Jones at 7:07 p.m. 

The Pledge of Allegiance was given. 

The Minutes of the June 14, 2004 Board of Aldermen meeting were submitted for approval.  A motion was made by Alderman Buermann and seconded by Alderman Fleming to approve the Minutes.  A voice vote was taken with a unanimous affirmative result and the motion was declared passed. 

Darrel Songer from Larson Allen presented the annual audit for 2003.  He noted that the GASB 34 regulations applied to Ballwin’s audit for the first time.  He said that we have all been aware that these regulations were coming, and had been in place for larger cities and states for several years, but this is the first time they became applicable to cities the size of Ballwin. 

Mr. Songer took the Board’s attention to the audit report page 1.  He noted that it contains the auditor’s opinion.  As has always been the case in the past, the auditors have given a clean opinion in the statements relative to Ballwin’s financial practices. 

Mr. Songer recommended the Board review pages 3-14, which contains management discussion and analysis.  He noted that most of this information was prepared by Finance Officer Glenda Loehr, and dealt with issues of the 2003 budget, discussing overages and underages of actual expenses and revenues compared to budgetary expenses and revenues.  The auditors carefully reviewed this for accuracy and found no inconsistencies or problems with the statements. 

Mr. Songer referenced page 15 of the report.  He noted this is a balance sheet that shows assets and liabilities, including capital assets and liabilities.  He said this page is one of the major new elements of the audit brought about by the GASB 34 regulations.  He said that Ballwin has a negative asset position of approximately $6 million.  He noted that this is primarily because according to accounting regulations, the City of Ballwin is responsible for showing the liability of the TIF bonds, but it cannot show the asset associated with the TIF bonds.  He said much of the City’s assets are not included in the 2003 report.  This is because of the phasing in of the GASB 34 regulations.  These asset values will be added in future years and this will somewhat offset the negative position of the 2003 balance sheet. 

Mr. Songer pointed out page 16 which is a new reporting associated with the GASB 34 regulations.  This sheets lists expenses of operation.  Pages 18 and 19 are similar to what the City of Ballwin has seen in previous years’ audits.  These are the fund balance sheets and show that Ballwin had a            $4 million fund balance at the end of 2003.  Page 21 contains revenues, expenses, and fund balance.  This shows that Ballwin, between 2002 – 2003, experienced a net change in the fund balance of plus $252,000.

Mr. Songer next discussed the management letter.  He stated that the letter was very positive.  He pointed out that there was concern about the level of the fund balances.  It’s important that the Board of Aldermen understand that the fund balances are not at the level of their policy.  He said the Finance Department was very prepared for the audit and did an exceptionally good job answering questions and providing the necessary information.  He said that because of the new federal auditing regulations and the GASB 34 regulations, the time associated with preparing the 2003 audit was substantially in excess of what had been required in previous years to provide this document.  He noted that Ballwin is the only city of which he is aware of this size that did all of the additional financial work in-house.  He noted that the work being done by Finance Officer Loehr and the Finance Department probably saved the City of Ballwin a $10,000 - $15,000 expense that would have been necessary if outside assistance had been hired. 

City Administrator Kuntz concurred that Finance Officer Loehr did an exceptionally good job and deserves a lot of credit for her hard work and diligence.  

Alderman Gatton asked Mr. Songer if he heard the Board’s earlier discussions on revenues and expenditures and if he had any thoughts of what Ballwin might be able to do to improve its revenue/expenditure position.  Mr. Songer said that he does not have enough first hand detailed knowledge of the City’s budget to be able to offer a well thought through comprehensive evaluation.  He did, however, state that grants are probably not a means that the City could hope to utilize to substantially change its budgetary and financial picture.  Many grants have so many strings attached to them and are of such a short period of time that they are not a good solution to an ongoing budgetary problem.  The best things the City could do are hope for an improved economy and increase efforts to generate additional sales tax. 

City Administrator Kuntz noted that the auditors have for several years recommended that the City of Ballwin increase staffing in the Finance Department.  This is recommended from a control perspective, but due to financial considerations, the City has been unable to do that and has, therefore, saved the cost of additional personnel that would be associated with that effort. 

None. 

None. 

 BILL # 3302 - AN ORDINANCE AMENDING CHAPTER 2 SECTION 2-105 OF THE CODE OF ORDINANCES OF THE CITY OF BALLWIN BY CORRECTING THE TERM OF OFFICE SET FORTH THEREIN. 

A motion was made by Alderman Suozzi and seconded by Alderman Buermann for a first reading of Bill No. 3302.   A voice vote was taken with a unanimous affirmative result and the motion was declared passed.  Bill No. 3302 was read for the first time. 

A motion was made by Alderman Lembke and seconded by Alderman Gatton for a second reading of Bill No. 3302.  A voice vote was taken with a unanimous affirmative result and the motion was declared passed.  Bill No. 3302 was read for the second time. 

A roll call was taken for passage and approval of Bill No. 3302 with the following results:  Ayes – Lembke, Pogue, Robinson, Fleming, Gatton, Buermann, Suozzi.    Nays – None.  Whereupon Mayor Jones declared Bill No. 3302 approved and it became Ordinance No. 04-27. 

BILL # 3303 - AN ORDINANCE AMENDING CHAPTER 13 OF THE CODE OF ORDINANCES OF THE CITY OF BALLWIN, MISSOURI, ENTITLED, “PARKS AND RECREATION” BY THE ADDITION OF SECTION 18-42, ENTITLED "SPECIAL PARK EVENTS.” 

A motion was made by Alderman Lembke and seconded by Alderman Buermann for a first reading of Bill No. 3303.   A voice vote was taken with a unanimous affirmative result and the motion was declared passed.  Bill No. 3303 was read for the first time. 

A motion was made by Alderman Buermann and seconded by Alderman Lembke for a second reading of Bill No. 3303.  A voice vote was taken with a unanimous affirmative result and the motion was declared passed.  Bill No. 3303 was read for the second time. 

A roll call was taken for passage and approval of Bill No. 3303 with the following results:  Ayes – Buermann, Robinson, Fleming, Pogue, Suozzi, Lembke, Gatton.    Nays – None.  Whereupon Mayor Jones declared Bill No. 3303 approved and it became Ordinance No. 04-28. 

BILL # 3304 - AN ORDINANCE PROVIDING FOR THE ANNEXATION BY THE CITY OF BALLWIN, MISSOURI, OF AN AREA OF UNINCORPORATED LAND DESCRIBED HEREIN AND REFERRED TO AS THE “KIEFER CREEK ANNEXATION AREA,” AND PROVIDING FOR APPROVAL OF AN ANNEXATION PLAN AND BOUNDARY CHANGE PROPOSAL TO BE SUBMITTED TO THE ST. LOUIS COUNTY BOUNDARY COMMISSION FOR ITS CONSIDERATION AND SUBSEQUENT DIRECTION OF AN ELECTION TO VOTERS OF THE CITY OF BALLWIN AND OF THE AREA PROPOSED TO BE ANNEXED. 

A motion was made by Alderman Gatton and seconded by Alderman Suozzi for a first reading of Bill No. 3304.   A voice vote was taken with a unanimous affirmative result and the motion was declared passed.  Bill No. 3304 was read for the first time. 

A motion was made by Alderman Lembke and seconded by Alderman Buermann for a second reading of Bill No. 3304.  A voice vote was taken with a unanimous affirmative result and the motion was declared passed.  Bill No. 3304 was read for the second time. 

A roll call was taken for passage and approval of Bill No. 3304 with the following results:  Ayes – Lembke, Suozzi, Pogue, Fleming, Robinson, Gatton, Buermann.    Nays – None.  Whereupon Mayor Jones declared Bill No. 3304 approved and it became Ordinance No. 04-29. 

CONSENT ITEMS 

A motion was made by Alderman Suozzi and seconded by Alderman Gatton to accept the consent items.  A voice vote was taken with a unanimous affirmative result and the motion was declared passed.

Liquor License Renewals:  A motion was made by Alderman Lembke and seconded by Alderman Gatton to approve the Liquor License Renewals for the six business requesting approval on this agenda.  The businesses are Lara’s Markets, Meadowbrook Country Club, Taqueria Chihuaha, The Patio Place, The Seventh Inn, and Tony Marino’s Steak & Chops.  A voice vote was taken with a unanimous affirmative result and the motion was declared passed.

Ballwin Oaks Plaza Special Use Exception Transfer, 15212 – 15224 Manchester Road: 

Mayor Jones asked if a representative for the petitioner was present.  There was none. 

A motion was made by Alderman Robinson and seconded by Alderman Lembke to hold this matter over to the July 26 meeting, since no one representing the owners or the petitioners were in attendance and there were unable to answer questions relative to sidewalks and other physical matters of the site.  A voice vote was taken with a unanimous affirmative result and the motion was declared passed. 

None.

City Attorney Lucchesi notified the Board that per the parameters given to him by the Board, he had settled the issue regarding The Pointe roof lawsuit.  Mayor Jones noted that the results of the lawsuit settlement will be public document as soon as it has been approved by the court. 

Smoking:  Alderman Gatton presented a recommended new ordinance to the Board of Aldermen which will limit smoking in restaurants and bars in the City of Ballwin.  He asked that the matter be placed on the July 26 Board of Aldermen agenda as a Bill.  He noted that many of the businesses in Ballwin that will be impacted by this ordinance do not oppose it.  They do not, however, want Ballwin to be the only City that sets these types of limits.  Their concern is that Ballwin doing this unilaterally would put them at a competitive disadvantage with similar businesses in cities that don’t have this kind of regulation.  He noted that several cities in St. Louis County and the County itself are considering the adoption of this or similar ordinances.  He believes it is time for the City of Ballwin to also adopt such an ordinance.

A motion was made by Alderman Gatton and seconded by Alderman Lembke to place the matter on the July 26 agenda for consideration as a Bill, with the provision that City Attorney Lucchesi would review the Bill for the proper language.  A voice vote was taken with a unanimous affirmative result and the motion was declared passed.

Alderman Suozzi asked if there was any data on the impact that similar legislation has had on bar receipts elsewhere in the country.  Alderman Gatton said he does not have this information at this time but believes such data is available and he will provide it to the Board of Aldermen. 

Alderman Suozzi asked if the 25-foot rule, which prohibits smoking within 25 feet of the entrance to a restaurant/bar was included in this ordinance.  Alderman Gatton said that it was and that he had no problem considering variations in that dimension.  There was no further discussion.

No Parking:  Alderman Lembke raised the issue of a request for no parking at 609 Castle Ridge Drive.  City Administrator Kuntz noted that the individual had requested that no parking be posted in front of his property only.  He noted that there is evidently a problem with a neighbor parking their vehicles in front of this gentleman’s house and he objects to this.  He has repeatedly asked the police to enforce the 24 hour parking regulations.  They have done so, but the neighbor continues to legally park his vehicles in front of this gentleman’s house.  City Administrator Kuntz was concerned that authorizing parking in this situation for this kind of purpose could set a dangerous precedent and the City could be inundated with similar requests all over town.  When City Administrator Kuntz declined to authorize the parking, the individual approached Alderman Lembke and asked that the matter be brought before the Board of Aldermen for consideration.

A motion was made by Alderman Lembke that a bill be prepared for consideration by the Board of Aldermen authorizing the placement of 24-hour no parking in front of this property.  Mayor Jones noted that the motion died for lack of a second. 

Alderman Buermann stated that he had presided over a meeting of the Finance & Administration Committee of the Board of Aldermen prior to this meeting.  The committee discussed issues of revenues and expenditures of the City of Ballwin with particular concern about long range implications of current trends.  He noted that the use tax was discussed and it could be expected to generate somewhere in the range of $50,000 per year.  He noted that the City of Clarkson Valley will vote next week on the Police contract and staff is hopeful that it will be adopted.  He noted that the committee will review utility tax and other similar tax options that are available to the City to enhance revenues plus continue to review the budget for areas that can be reduced and services that can be done less expensively or eliminated to improve the overall financial picture. 

Alderman Fleming congratulated the Ballwin Days Committee and all that were involved in the event.  He said a good job was done by everyone and it was a wonderful experience.

A motion was made by Alderman Buermann and seconded by Alderman Gatton to adjourn.  The motion passed unanimously and the meeting was adjourned at 7:43 p.m.

MC