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HomeMy WebLinkAbout22 - November 17, 2010 COW COMMITTEE OF THE WHOLE MEETING November 17, 2010 The regular Committee of the Whole meeting was called to order by Mayor Schock at 5:00 p.m. in the Council Chambers. Present: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Absent: None. Approval of Minutes Councilmember Steffen made a motion, seconded by Councilmember Dunne, to approve the minutes of the November 3, 2010, regular meeting. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, and Mayor Schock. Nays: None. Councilmember Warren voted present. Budget Discussion RuthAnne Hall, Budget Officer, introduced Aaron Cosentino and Dan Ault who gave a brief presentation on the Info One program that is currently in use in the Public Services Department. They reported the program has been very successful. As an example, they mentioned that calls received regarding leaf collection were generally handled on the same day. Colleen Lavery, Chief Financial Officer, then reviewed the General Funds in the 2011 Proposed Budget. (See Attachment A) She noted that property taxes and sales tax revenues comprise almost fifty percent of the revenues and that personnel costs and contracted services are the largest expenditures. Ms. Lavery said that property taxes for 2011 represent 36 percent of the revenues and that this will violate the city’s policy that no one source exceeds 35 percent. She noted that the future years should be in compliance. She also mentioned that Kane County has estimated a 4.76 percent decline in property values. She estimates that the sales tax review should realize the budgeted amount. Income tax revenues have fallen short by $500,000 for 2010 and there is no estimated increase for 2011. New revenue sources should include additional sales tax collected from the new Wal-Mart and Rosen Kia, impact fees, and DUI fines. Cash reserves are at a 16 percent level. Professional opinion is that they should be no more than 19 percent. Currently reserves are being used to supplement late payments from the state. Councilmember Dunne asked what the total of all the reserve funds was. Ms. Lavery said she would have that figure at the December 1, 2010, meeting. Councilmember Warren credited staff for staying on budget this year. Committee of the Whole November 17, 2010 Page 2 Councilmember Kaptain said that he did not like fines being a revenue source. He also wondered about the collection of business license fees. Mr. Stegall said that the collection of the license fees was a methodical process and that he was confident they would be collected. Councilmember Steffen said he believed that the three major sources of revenue are getting skewed and that they city needs to continue to diversify the tax base. Mayor Schock said he was not upset that the property tax revenue had gone up because the city has added six million square feet of industrial property and a high number of very expensive homes to the property tax base. He would like to see sales tax revenues increase. Councilmember Kaptain said he was concerned about the drop in sales tax revenue. Councilmember Steffen stated that as the unemployed find work, the income tax revenue will increase. RuthAnne Hall reviewed the Riverboat Funds and she noted that these monies primarily fund the capital improvement projects. These revenues have dropped 38 percent since 2008 and it is forecast there will be an additional 14 percent reduction for 2011 due to the opening of the Des Plaines riverboat. She also noted this revenue source will be funding seventy-seven projects in 2011; however, this is down from over one hundred projects in 2008. Councilmember Kaptain mentioned that the non-profit organizations are very concerned about the decrease in revenues available to these organizations and some are struggling to continue to provide services. Councilmember Gilliam suggested that it comes down to bricks and mortar versus people. Councilmember Steffen said that if cuts have to be made to the non-profits, he hoped that they would be given at least a year’s notice. Councilmember Prigge agreed and said that some organizations may have to reinvent how they find new sources for funds. Councilmember Dunne mentioned that if the bricks and mortar projects are discontinued, then there could be more people who need assistance. Mayor Schock stated that the state needs to meet its obligations also. He said it is very difficult to determine who or what should get funding. Mr. Stegall said that the recommended strategy is to use Riverboat Funds to generate more investment in the community or more revenue. Councilmember Gilliam asked how much stimulus money had been received. Mr. Stegall said he would provide this information for the next meeting. At this time, it was decided to suspend the budget discussion and proceed with the rest of the Committee of the Whole items. Consideration of Truth in Taxation Act Requirements No action taken at this time. Committee of the Whole November 17, 2010 Page 3 Discussion Concerning Proposed Advisory Referendum to Change Election of City Council Councilmember Kaptain mentioned that there was interest in the community to possibly establish a ward system since it is anticipated that the 2010 certified census will be such that two additional council members will be required. He said it has been suggested that there be an advisory referendum proposing a mixed system that consists of a certain number of wards and then the remaining number of council members elected at large. He noted this would have to be presented to the Election Board no later than January 14, 2011. Councilmember Gilliam said this has come up several times in the past, but each time it has failed by a three-to-one vote. He said he has not heard of any interest, but if there is some, then the residents should present a petition. Councilmember Kaptain said there are 25,000 more residents now and the questions should be presented to the community. Councilmember Dunne said he felt the citizens have the right to give input and that the city should write the referendum. Councilmember Gilliam said he is not in favor of a ward system. Presently he is responsible to 100,000 people. In a ward system, it would be a fraction of that. Councilmember Kaptain said that is why he is proposing a mixed council – several members would be from wards and several would be at large. Corporation Counsel William Cogley explained that home rule prevails, but if a binding referendum passed, there would be five wards with representation and three at large council members. Mayor Shock felt that if the city wrote the referendum, the perception would be that the council is in favor of it. This is why he felt it should come from the grassroots level. He said the city has had the current form of government for over fifty years. Councilmember Steffen asked if there was an advisory referendum passed in 2011, does it become binding in 2013, and questioned when the actual changes would go into effect. Corporation Counsel William Cogley said this can be specified when the question is actually on the ballot. Councilmember Warren said he has had no one ask him about a ward system. He said he felt that if there was interest, then the grassroots support must take its course. Councilmember Kaptain made a motion, seconded by Councilmember Dunne, to consider an advisory referendum to elect part of the council members at large and part of the council members from districts with staggered terms in biannual elections. Upon a roll call vote: Yeas: Councilmembers Dunne, Kaptain, and Steffen. Nays: Councilmembers Gilliam, Prigge, Warren, and Mayor Schock. Committee of the Whole November 17, 2010 Page 4 Consideration of Grant Writer Services Agreement with Dahlquist and Lutzow Architects Councilmember Dunne made a motion, seconded by Councilmember Gilliam, to approve a grant writer services agreement with Dahlquist and Lutzow Architects for services necessary to apply for grants on the city’s behalf. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, and Mayor Schock. Nays: None. Councilmember Warren abstained due to conflict. Consideration of Holiday Gift Certificates for City Staff Councilmember Gilliam made a motion, seconded by Councilmember Prigge, to approve the purchase of $25 downtown gift certificates for city staff. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. Consideration of Second Amendment to Development Agreement with River Park Place LLC Councilmember Dunne made a motion, seconded by Councilmember Kaptain, to approve the Second Amendment to the Development Agreement with River Park Place LLC providing for the re-conveyance of the redevelopment property to the city and extending the date for the construction of the redevelopment. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. Consideration of Termination of Development Agreement with Channing Square LLC Councilmember Gilliam made a motion, seconded by Councilmember Dunne, to approve termination of the Development Agreement with Channing Square LLC and retain ownership of properties to be held for future redevelopment opportunities. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. Consideration of Emergency Filter Under-Drain Repairs at Riverside Water Treatment Plant Councilmember Gilliam made a motion, seconded by Councilmember Warren, to approve a contract with All Service Contracting Corporation for emergency repairs to under-drains in the amount of $241,980. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. Committee of the Whole November 17, 2010 Page 5 Announcements from Council Councilmember Prigge announced details regarding the Pet Health & Safety Drive, scheduled for November 20, 2010 for interested Elgin residents. Councilmember Dunne thanked everyone for their support at the Veterans Day ceremony and thanked staff for repairing the damage at the park. He also mentioned that the flag pole and plaque donated by the Ladies Auxiliary of the VFW had been relocated. Both Councilmember Dunne and Councilmember Warren spoke about the upcoming benefit on December 11, 2010, for Patricia Kinney, a local business owner who is currently experiencing health issues, and the support she has received from the community. Announcements from Staff Cherie Murphy, Assistant to the City Manager for Community Engagement, announced upcoming city events. She also noted that leaf pickup will continue through December 3, 2010. Adjournment Councilmember Gilliam made a motion, seconded by Councilmember Warren, to adjourn the meeting. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. The meeting adjourned at 6:45 p.m. s/ Diane Robertson December 1, 2010 Diane Robertson, City Clerk Date Approved What to Expect –Nov. 17, 2010 •Introduction –RuthAnne Hall •General Fund –Colleen Lavery •Riverboat Funds –RuthAnne Hall •Other Funds –Colleen Lavery •User Fees –RuthAnne Hall Introduction/Recap 2010 General Fund Estimates General Fund Revenues General Fund Financial Plan 2011-2015 2010 2011 2012 2013 2014 2015 Revenue Estimate Budget Planned Planned Planned Planned Property Tax 36,120,000$ 33,200,000$ 32,500,000$ 33,250,000$ 34,400,000$ 35,050,000$ New Revenue Source(s)0 1,750,000 4,500,000 4,635,000 4,774,050 4,917,270 Telecommunications Tax 4,500,000 4,500,000 4,635,000 4,774,000 4,917,000 5,065,000 Sales Taxes 16,101,000 16,101,000 18,334,000 18,884,000 19,451,000 20,035,000 Income Tax 8,200,000 8,200,000 8,446,000 8,699,000 8,960,000 9,229,000 Charges for Services 2,679,460 2,878,990 2,965,000 3,054,000 3,146,000 3,240,000 Licenses, Permits & Fines 3,844,040 4,120,910 4,245,000 4,440,000 4,644,000 4,858,000 Other Revenue 10,145,760 9,951,380 10,338,700 10,501,650 10,774,280 11,311,810 Transfer In 8,613,270 10,016,340 10,617,000 11,095,000 11,594,000 11,616,000 Working Cash Carryover 0 0 (1,740,000) 31,000 1,423,000 2,904,000 Total Revenue 90,203,530$ 90,718,620$ 94,840,700$ 99,363,650$ 104,083,330$ 108,226,080$ General Fund Levy Distribution Amount % of Total 47,705,000$ 100% Less:Debt Services 4,000,000 8.38% Pensions 10,505,000 22.02% Subtotal 14,505,000 30.41% $33,200,000 69.59%Remaining for General Fund Total Levy Property Tax - Levy Distribution Sales Tax Income Tax New Revenue Source Amount Walmart Sales Tax 750,000.00$ Rosen Kia Sales Tax 402,500.00$ Impact Fees 347,500.00$ DUI Fines 250,000.00$ Total 1,750,000.00$ New Revenue Initatives Cash Reserve 2011 2012 2013 2014 2015 Budget Planned Planned Planned Planned Expenditures 92,458,870$ 94,810,000$ 97,941,000$ 101,179,000$ 104,529,000$ Cash Reserve Contribution 500,000$ 500,000$ 500,000$ 500,000$ -$ Year-End Cash Reserve 14,793,000$ 15,170,000$ 15,671,000$ 16,189,000$ 16,725,000$ As a % of Total Expenditures 16%16%16%16%16% General Fund - Year End Cash Projections Expenditures General Fund Financial Plan 2011-2015 Expenditures 2010 Estimate 2011 Budget 2012 Planned 2013 Planned 2014 Planned 2015 Planned Earnings & Benefits 67,471,520$ 69,703,790$ 71,098,000$ 73,231,000$ 75,428,000$ 77,691,000$ Commodities & Supplies 2,217,160 2,221,600 2,310,000 2,402,000 2,498,000 2,598,000 Contractual Services 14,128,670 14,575,930 15,159,000 15,765,000 16,396,000 17,052,000 Misc. Expenses 918,060 911,800 945,000 980,000 1,016,000 1,054,000 Financing Transfers 4,760,140 4,760,140 4,998,000 5,248,000 5,510,000 5,786,000 Capital Outlay 350,240 285,610 300,000 315,000 331,000 348,000 Total Expenditures 89,845,790$ 92,458,870$ 94,810,000$ 97,941,000$ 101,179,000$ 104,529,000$ Questions? Riverboat Funds Revenues 2011-2015 Existing Strategic Initiatives Key Existing Strategic Initiatives –Riverboat Funds 2011-2015 Bikeway Implementation Program*$1,122,640 Combined Sewer Separation Projects 7,500,000 Highland Avenue Reconstruction*925,000 Neighborhood Storm Sewer Reconstruction 1,400,000 Neighborhood Street Resurfacing Program 4,456,470 Neighborhood Street Rehabilitation 8,703,020 North Commonwealth Engineering/Reconstruction 115,000 Warning Siren System Upgrade/Expansion 1,072,000 Total $25,294,130 * Indicates grant funding available New Strategic Initiatives New Strategic Initiatives –Riverboat Funds 2011-2015 Hemmens Lightboard Replacement $25,000 TOD Plan for Chicago Street Metra Station*100,000 Alerting System Redundancy 49,720 Ambulance Replacement 460,000 Comprehensive Land Use Updates 150,000 Fire Station Sewer Line Replacement 200,000 Telestaff Payroll System 70,900 National/Kimball Street Interconnects*130,000 NeighborWorks Program 100,000 Citizen Survey 90,000 Total $1,375,620 * Indicates grant funding available Adapting: Key Grant Funded Projects Project Name Project Cost Grant Funding Local Match Wing Street/31*$2,200,000 $1,540,000 $660,000 Summit Street*940,000 940,000 0 Big Timber West*1,220,000 970,000 250,000 Big Timber East*830,000 725,000 100,000 U.S. Forestry Tree Grant*1,800,000 1,800,000 0 Bicycle Path Route 1 460,000 370,000 90,000 Bicycle Path Route 4 3,400,000 2,720,000 680,000 Bicycle Safety Grant 50,000 25,000 25,000 Kimball/National Signal Interconnect 130,000 100,000 30,000 Public Works Lighting Upgrade*280,000 280,000 0 Highland Avenue Reconstruction -Engineering 500,000 400,000 100,000 North McLean –ERP 340,000 340,000 0 Dundee/Summit Interchange 3,300,000 2,200,000 1,100,000 Riverside Drive Promenade (pending) 10,500,000 8,000,000 2,500,000 TOTAL $25,950,000 $20,410,000 $5,535,000 Questions? Other Funds Special Revenue Funds Budget Summary - Special Revenue Funds Fund 2011 2011 Number Fund Description Revenue Expenditures 201 Public Benefit Fund 4,770$ 4,770$ 220 Emergency Telephone Fund 2,039,360 2,039,360 230 Community Development Block Grant Fund 1,099,610 1,099,610 230 CDBG - R 114,640 114,640 230 Energy Efficiency Conservation Block Grant 447,130 447,130 230 NSP Grant 708,300 708,300 240 Spring Street Parking District Fund 136,580 136,580 250 Drug Asset Forfeiture Fund 586,340 586,340 262 Central Area TIF Fund 15,146,960 10,930,120 263 Route 20 TIF Fund 280,000 280,000 275 Riverboat Fund 43,080,380 33,677,900 276 Riverboat Lease Fund 6,965,190 6,162,160 280 Illinois Municipal Retirement Fund 11,138,520 11,138,520 290 Motor Fuel Tax Fund 3,372,050 3,372,050 294 Cemetary Operating Fund 564,410 498,290 296 Recreation Fund 10,131,300 8,910,210 Total Special Revenue Funds $95,815,540 $80,105,980 IMRF Fund Balance Policy Discussion IMRF IMRF Reserve Reserve Plan Year Liability Levy Required Balance 2011 $4,425,000 4,425,000$ -$ 3,062,570$ 2012 4,667,820 4,400,000 267,820 2,794,750 2013 4,938,820 4,400,000 538,820 2,255,930 2014 5,236,820 4,400,000 836,820 1,419,110 2015 5,564,820 5,400,000 164,820 1,254,290 22.5% Illinois Municipal Retirement Fund Reserve Ending Reserve Balance as a percentage of liability Debt Service Fund Budget Summary - Corporate Bond Fund Fund 2011 2011 Number Fund Description Revenue Expenditues 301 Corporate Bond Fund $13,842,630 $13,842,630 Total Corporate Bond Funds $13,842,630 $13,842,630 Capital Improvement Funds Budget Summary - Capital Improvement Funds Fund 2011 2011 Number Fund Description Revenue Expenditues 340 Park Development Fund 1,896,020$ 1,896,020$ 378 Tyler Creek Fund 925,800 925,800 380 2000 G.O. Bond Projects Fund 25,070 25,070 381 2001 G.O. Bond Projects Fund 59,400 59,400 383 2003 G.O. Bond Projects Fund 120,280 120,280 384 2004 G.O. Bond Projects Fund 168,950 168,950 365 2005 G.O. Bond Projects Fund 1,226,780 1,226,780 366 2006 G.O. Bond Projects Fund 2,002,400 2,002,400 367 2007 G.O. Bond Projects Fund 1,431,600 1,431,600 368 2008 G.O. Bond Projects Fund 3,159,000 3,159,000 370 2010 G.O. Bond Projects Fund 3,200,000 3,200,000 Total Capital Improvements Funds $14,215,300 $14,215,300 Enterprise Funds Budget Summary - Enterprise Funds Fund 2011 2011 Number Fund Description Revenue Expenditues 401 Water Operating Fund $21,999,660 $22,896,960 420 Water Development Fund 2,892,840 2,892,840 430 Sewer Operating Fund 4,943,550 5,152,910 440 Sewer Development Fund 9,564,560 9,564,560 540 Golf Operating Fund 3,091,450 3,091,450 Total Enterprise Funds $42,492,060 $43,598,720 Internal Service Funds Budget Summary - Internal Service Funds Fund 2010 2010 Number Fund Description Revenue Expenditues 601 Equipment Replacement Fund $3,312,850 $3,312,850 630 Risk Management Fund 6,115,190 6,115,190 635 Health Insurance Fund 8,873,250 8,873,250 Total Internal Service Funds $18,301,290 $18,301,290 Trust and Agency Funds Budget Summary - Trust and Agency Funds Fund 2011 2011 Number Fund Description Revenue Expenditures 520 Cemetery Perpetual Care Fund $17,500 $17,500 636 Retiree Health Insurance Fund 1,451,000 1,443,000 701 Police Pension 7,887,000 5,629,770 711 Fire Pension 6,683,400 4,750,120 Total Trust and Agency Funds $16,038,900 $11,840,390 Questions? User Fees Types of User Fees •Community Services –Water and Sewer Fees •Regulatory and Administrative –Police and Fire services, building permits, fees paid by developers, and licenses •Quality of Life –Parks and Recreation User Fee Study Year User Fees Fund Estimated Cost 2011 Recreation Fees Recreation Fund (296) $25,000 2012 Development Fees General Fund (010) $25,000 2013 Public Safety General Fund (010) $25,000 2014 General Government General Fund (010) $25,000 Subtotal $100,000 Budget Next Steps •Truth in Taxation Public Hearing •December 1, 2010 •Ordinance Adopting the Budget •December 15, 2010 •Ordinance for the Levy & Assessment of Taxes •December 15, 2010 •2011 Budget & 2011-2015 Financial Plan to Kane County •December 21, 2010