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HomeMy WebLinkAboutJuly 27, 1988 COW COMMITTEE OF THE WHOLE MEETING July 27 , 1988 The Committee of the Whole Meeting was called to order at 6 : 30 p.m. , in the Council Conference Room. Members present : Councilmen Fox, Gilliam, Moylan, Popple , Shales, Walters and Mayor VanDeVoorde. Absent : None. Consideration of a report from the Integrated Capital Budget Committee. Terry Jones, Chairman of the Steering Committee reviewed with the Council the recommendations set forth by his committee . Mr. Jones stated the committees appointed to evaluate the City capital requirements have reviewed $106 , 018 ,560 in projects . These projects were identified by City staff, citizens , committee members and other governmental bodies . The Steering Committee has worked to develop a program to rebuild Elgin and to prepare for the growth which we face. This four year program is now proposed to total $92 , 717 ,430 . A total of $6 , 826, 300 was proposed for equipment replacement and $4 ,417 , 600 is recommended in the ICB. The Steering Committee gave very high support to the development of the Randall Road area, the northeastern development area, and the redevelopment of the major entryways into Elgin. A total of $99 , 192 ,260 was proposed in projects and programs , and $88,299 ,830 is included in the recommended ICB. The Steering Committee suggested the Council consider the following options for funding the proposed four year ICB program: a. A one half of one percent utility tax on gas , electric and telephone systems . b. A one cent per gallon gasoline tax. c. A one-quarter cent sales tax increase. d. A $2 . 00/week garbage collection fee. e. A $2 .50/$1,000 real estate transfer tax. f. A business license fee. g. A two and one-half percent increase in the Hotel/Motel tax, with the proceeds directed to the Hemmens Building maintenance and operations . h. An increase in the property tax of ten cents per one hundred dollars of valuation. Committee of the Whole Meeting July 27 , 1988 Page 2 i. A modest bonding program to fund all or a portion of the ICB program costs. Mr. Jones further stated the ICB may be viewed as an ambitious program, However, much has been delayed and can no longer be deferred. The proposed program is designed to rebuild Elgin , restoring old neighborhoods and building the tax base required to support a modern city. It has the enthusiastic support of the appointed Steering Committee and they urge its adoption. Councilman Walters made a motion, seconded by Councilman Fox to set a public hearing for the ICB program on September 1, 1988 at 4 :00 p.m. Yeas: Councilmen Fox, Gilliam, Moylan, Popple , Shales , Walters and Mayor VanDeVoorde . Nays : None . Consideration of the mid-year budget and analysis and a resolution setting a public hearing in compliance with Truth in Taxation Laws . The City Manager stated two major considerations may impact the 1988 tax levy rate , funding for on-going city operations during 1989 and funding for projects contained in the Intregrated Capital Budget . A general fund revenue and expenditure forecast for 1988 and 1989 was furnished to the Council for their review. This forecast shows that for 1988, expenditures are projected to exceed revenues by $1, 721,825 , which will reduce the general fund carry over balance for 1989 to $1, 316 ,515 . In 1989 , it is projected that expenditures (excluding Integrated Capital Budget items ) will exceed revenues by $1, 632 , 000. This will wipe out the carry over balance and leave a deficit of $315 ,485. This does not take into consideration any funding for Integrated Capital Budget items or additional personnel for programs. Council reviewed the following assumptions and alternatives that could be used to fund the projected 1989 deficit and possible pay for Integrated Capital Project items . Assumption I If the assessed valuation increases only at one-half the amount of this year' s increase ( growth without reevaluation ) ; and the tax rate/$100 assessed valuation stays the same , we could expect an increased revenue of $320 ,000 . This would be a 4 .5% increase under Truth in Taxation, and would offset the anticipated shortfall with nothing for funding the ICB. Assumption II If we anticipate a 4 .9% increase un Truth in Taxation, revenue would increast $348,000 . There would be an increase i Committee of the Whole Meeting July 27 , 1988 Page 3 in the tax rate of only about .4% with the balance coming from growth in the valuation. There would be about $33,000 for ICB projects. Assumption III If we anticipate a 4 . 9% increase in the tax rate and the increase in assessed valuation, we should expect revenue to increase by$668,000. This would be a 9 .4% increase under Truth in Taxation, although the individual property would only experience a 4 . 9% increase. This would provide about $352 ,000 for financing ICB projects . Assumption IV If we were to target the $489,000 recommended by the Steering Committee for pay-as-you-go financing of the ICB, this would require a total of $804 , 000 . This would cover the operating deficit of $315 ,000 and the ICB as well. This would amount to an 11. 32% increase under Truth in Taxation, but only a 6. 81% increase to the tax rate if the assessed valuation increases as expected. Assumption V If we were to attempt to finance the recommended $5,000,000 per year ICB totally from property tax through pay-as- you-go financing, it would talke a 70 . 3% increase in the actual tax rate and a 74 . 8% increase under the Truth in Taxation reporting procedure. Councilwoman Shales stated she could go with the Assumption III. Councilwoman Moylan also chose Assumption III . Councilmen Fox and Walters stated theywould go with Assumption IV. Councilman Walters made a motion, seconded by Councilman Fox to approve Assumption IV. Yeas: Councilmen Fox, Gilliam, Moylan, Popple, Shales and Walters. Nays: Mayor VanDeVoorde Councilman Walters made a motion, seconded by Councilman Fox to set a public hearing for Assumption IV on August 10 , 1988, at 8 :00 p.m. Yeas : Councilmen Fox, Gilliam, Moylan, Popple, Shales and Walters. Nays: Mayor VanDeVoorde Consideration of the second quarter revenues and expenditures report . Council was provided a status report of the 1988 budget as of the end of June. Committee of the Whole Meeting July 27 , 1988 Page 4 Consideration of a proposed musical production for 1989 at the Hemmens . Councilwoman Popple made a motion, seconded by Councilwoman Moylan to approve the production of Ain'T Misbehavin. Yeas: Councilmen Fox, Gilliam, Moylan, Popple, Shales, Walters and Mayor VanDeVoorde . Nays: None. Consideration of a proposal from the Department of Transportation for joint installation of pedestrian signals at the intersection of Larkin and Lyle . The existing agreement between IDOT and the City states that the cost of any improvements to the traffic signals at the subject intersection would be shared equally by the two parties . The City' s share of $6 , 325 . 00 could come from the Street Improvement Fund. Councilwoman Shales made a motion , seconded by Councilman Fox to approve the above proposal. Yeas : Councilmen Fox, Gilliam, Moylan, Popple, Shales , Walters and Mayor VanDeVoode Nays: none. Consideration of authorization of six month golf tickets for the last half of 1988. These passes would be in effect after approval by the Council, with the fee being 50% of the existing rate. After the close of th golf season, the staff will study the response to this course of action and made recommendations for the 1989 season. Councilwoman Moylan made a motion, seconded by Councilwoman Popple to approve the half season golf passes for 1988. Yeas: Councilmen Fox, Gilliam, Moylan , Popple , Shales , Walters and Mayor VanDeVoorde . Nays: None . Consideration of a proposal to establish Valley Bank as a water bill collection agent . Councilwoman Shales made a motion, seconded by Councilwoman Popple to authorize the Valley Bank and Trust to receive payments for water bills under the same conditions as Gromers and Home Federal. Yeas: Councilmen Fox, Gilliam, Moylan, Popple , Shales , Walters and Mayor VanDeVoorde. Nays: None. Consideration of a 1988 six month police activity report . Councilman Gilliam stated that since the Watch Court area has been under police surveilance the drug people have moved their operations around and now they are becoming a problem at Gifford and Ann Streets . Councilman Gilliam suggested something be set up in the budget to have a Committee of the Whole Meeting July 27 , 1988 Page 5 roving police unit to deal with these drug peddlers . Councilan Fox stated he would like to see a letter written to the Courts asking for their cooperation in the handling of these cases . Adjournment Councilwoman Moylan made a motion, seconded by Councilwoman Shales to adjourn the Committee of the Whole Meeting to go into Executive Session to discuss personnel, land acquistion, and boards and commissions. Yeas : Councilmen Fox, Gilliam, Moylan, Popple , Shales , Walters and Mayor VanDeVoorde. Nays: None. The meeting adjourned at 9 :55 p.m. oy.� Marie Yearm City Clerk