Town of Richmond
Board of Supervisors Meeting
June 29, 2023
Chairman Karbash called the meeting to order at 7:00pm. Present: Karbash, Supervisors Susan
Miller, Dave Overbeek, Steven Wade, Tom Kraus. The Pledge of Allegiance was recited. Motion to approve the Agenda by Overbeek, second by Wade, passed unanimously.
Karbash explains two reasons for the meeting, first of all a review of the Town Ordinance on
Alcoholic Beverages and secondly our account status and the interest we’re earning on each account. Karbash explains that our general checking account balance is approximately $138,497 and this is the account we pay our bills with. We estimate that tax collection money that we’ll receive this year yet will be approximately $224,000 that will go to the BMO Money Market fund. Money market funds are now paying 4.5 to 5% interest on those funds and those funds are liquid so we want to maximize our return on these monies.
Also, the BMO CD is renewed into a money market fund. Karbash asks Clerk Hayes to advise Treasurer Seaver (not present) that we want to maximize the interest rates we can get on these funds. Karbash explains at First Citizens we are getting 5.16% on the Money Market account where we currently have a balance of $382,000.
Karbash explains we have approximately $138,497 in our general checking;
We estimate that we’ll have approximately $224,343 in anticipated revenues for the rest of the year, and we estimate we’ll have $335,000 of expenses for the remainder of the year. Karbash asks if we should put $75,000 into a money market account to get more interest and move money back into the general checking account as we need it for example when the checking account gets down to $10,000, there is no penalty for this and we would get more interest earnings.
Deputy Treasurer Sheets explains that when you look at the remainder of the year, and account for anticipated revenues and expenditures we end the year with a balance somewhere near $27,000.
Karbash asks what the monthly expenditures are and Sheets advises that we have recurring monthly expenditures of at least $33,505, and there will be additional expenditures not yet known to us. We know that last year’s Q3 and Q4 expenditures totaled $385,000.
Karbash gives an example that we leave $70,000 in general checking and when the general checking gets down to $10,000 we move some back in from the money market. This is making our money work for us. He believes there is no risk for doing this although it requires more work on the part of the clerk and treasurer to monitor this.
Karbash asks Clerk Hayes if he believes this is workable. Clerk Hayes defers to Deputy Treasurer sheets to advise the Board and suggests there are months when we have $40,000 in expenditures and there are months when we have $60,000 in expenditures.
Motion by Overbeek to retain $60,000 in general checking and as needed once per month roll money into the general checking account from the BMO Money Market account to cover bills, second by Miller, passed unanimously.
Overbeek suggests we monitor this and if it becomes difficult to manage, we can revert back to what we have now, Karbash agrees and advises Clerk Hayes we will leave that up to him.
Clerk Hayes reminds the Board that moving money between accounts is not the Clerk’s role but the Treasurer’s role, and that Treasurer Seaver was unable to join the meeting but Deputy Treasurer Sheets is here.
Deputy Sheets opinions that telephone requests to move money between accounts is not a good idea as it doesn’t provide the necessary and required record keeping. She advises this should be done in person with appropriate documentation.
Clerk Hayes and Deputy Treasurer Sheets will meet with Treasurer Seaver and explain the Board motion.
Karbash then brings up the ARPA fund account stating that this fund must be kept separate from the other funds. Karbash advises he has asked Roadman McManaway to designate roads in
need of repair that we could use these funds for without spending the money this year. Karbash further explains that we could invest this money until next year’s road repair season and earn possibly an additional $6 or $7,000 in interest. He realizes we are speculating a bit on asphalt prices for next year.
Overbeek did speak with one contractor and was advised that prices wouldn’t move much higher and even if they did, the interest we could earn would more than offset a minimal price increase in asphalt.
Deputy Treasurer Sheets explains that Treasurer Seaver’s discussion with First Citizens Bank indicated we could earn the same interest as we are earning now on the first $100,000 and anything over that we could earn 5%, a nice gesture but First Citizens knows that money is going to get spent and won’t be there long term.
Karbash recognizes this is currently set up as a checking account, and we would close the checking account and move it in to a CD or a Money Market account and get 4.5 to 5% interest for 9 months or so.
Sheets asks about the rules for expenditure of ARPA funds, and former Clerk Barb Ceas explains that the funds need to be designated by the end of next year 2024 and the projects must be completed by the end of 2026.
Supervisor Miller opinions that we don’t have enough information at this time on the exact road projects we are committing to so investing the money for higher interest until those funds are designated for specific projects would be beneficial. She further states that we could go through the bidding process later this year and be prepared to designate the funds next spring.
Motion by Miller to invest the First Citizens ARPA fund in an interest bearing account at 4% or higher by leaving enough in there to maintain checking account status, second by Kraus, passed unanimously.
Sheets opinions we should attempt to match the 5.16% interest we are getting on another account.
Mike Bergman asks why we are paying $167.00 per month for internet service here at the Town Hall. Clerk Hayes advises that the $167.00 fee is for internet service for the Town Hall and the Town Garage as well as the land line phone service in both buildings. Prior to switching to Edge Broadband, we were paying more than $400.00 per month to other carriers for the same service. So we are saving approximately $250.00 per month on these services.
Karbash introduces the second agenda item, the Alcoholic Beverage ordinance. This is an ordinance that Karbash opposed when it was introduced and passed. He reads section 5.05.060 of the ordinance;
“No retail alcoholic beverage license shall be issued to any person or entity if the person or entity or the premises for which the license is issued is in violation of any town or county ordinance or regulation relating to the zoning, health or safety of such premises, including any adjacent premises owned or operated by the same person or entity. Any such violation shall be grounds for suspension or revocation of any license issued to any person or entity.”
Karbash suggests that we need to consider repeal of all or part of this ordinance if we want to issue Badger Bob’s liquor license renewal in good conscious because he is legally in violation of a county ordinance.
Overbeek states he was also against this ordinance when it was passed.
Miller states she was opposed to this ordinance also and voted against adoption, however she doesn’t feel we need to repeal all of chapter 5 ordinance.
Former Clerk Ceas agrees that repeal of the entire chapter 5 ordinance isn’t necessary. Karbash suggests that removing reference to the county may be an option removing us from being an enforcement arm of the county. Karbash further states that a liquor license is someone’s livelihood and states that a person could be in violation of a weed ordinance which has nothing to do with serving liquor and stand to lose their liquor license over this.
Town resident Brenda Austin expresses that the Board should repeal this as it affects people’s business and employee’s livelihoods.
Former Clerk Ceas suggests that you don’t want to repeal the entire ordinance, you want to amend it to repeal a portion of it.
Karbash asks Clerk Hayes to share what legal counsel advised on this. Clerk Hayes responds advising that counsel says we can repeal the entire ordinance, a section of the ordinance, or certain verbiage from a section, however, in order to do so, we have to pass an ordinance. Clerk Hayes explains that not knowing what the Board would decide, he has prepared an ordinance for signature for all three options.
Supervisor Kraus explains that he voted in favor of this ordinance when it was passed because of what we were intending to accomplish at the time. The circumstances were very different then than they are now. Our intent was to solve a problem in the Township.
Karbash motion to amend the Town Ordinance Chapter 5 Alcoholic Beverages by repealing section 5.05.060 in its entirety, second by Overbeek, passed unanimously.
Clerk Hayes has Chaiman Karbash sign the ordinance to amend Chapter 5 Alcoholic Beverages
and advises the Board he will post the ordinance revision throughout the Township and on the Town web site on Friday June 30th, 2023. Following posting as required, he intends to personally deliver Badger Bob’s liquor license.
Motion to adjourn by Miller, second by Wade, passed unanimously. Meeting adjourned.