HomeMy WebLinkAbout23 - November 16, 2011 COW
COMMITTEE OF THE WHOLE MEETING
November 16, 2011
The regular Committee of the Whole meeting was called to order by Mayor Kaptain at 2:06 p.m.
in the Council Chambers. Present: Councilmembers Dunne, Moeller, Powell, Prigge, Steffen,
and Mayor Kaptain. Absent: None. Councilmember Gilliam arrived at 2:15 p.m.
Budget Discussion
Cherie Murphy, Assistant to the City Manager for Community Engagement, and Aaron
Cosentino, Management Analyst, presented the City’s public engagement and communication
plan for the budget process and other issues.
Ms. Murphy outlined the different meetings, such as Neighborhood walks, Community
Conversations, and Mayor’s Listening Sessions, in which residents could provide input to the
Council and Staff. Also outlined was the addition of the Budget Task Force to the Budgeting
process.
Aaron Cosentino, Management Analyst, outlined the communications plan. He noted it
combined traditional as well and new methods of communication. The City’s budget website,
Facebook, Twitter, posters, and flyers were all utilized to provide information to the community.
The goal was to reach a wide audience and to make the process as transparent as possible.
Colleen Lavery, Chief Financial Officer, provided an overview of the three versions of the
budget that were previously discussed. (presentation is on file with the City Clerk’s office). She
also reviewed the estimated results for 2011. The general fund is expected to end the year as
budgeted with expenditures exceeding revenues by $1.8 million. The remainder of the
presentation would discuss the General Fund, the Riverboat Fund, and the Central TIF District.
General Fund
Staff is recommending that the balanced approach to eliminating the general fund structural
deficit be implemented. In summary this approach reduces expenditures by $4.8 million dollars,
stabilizes the tax levy at current year levels and adds a refuse fee of $18 per month.
The General Fund diversification policy limits a single source of revenue to no more than 35% of
total general fund revenue. If the planned revenue targets are met and a new revenue source is
substituted for property tax there will be compliance with the 35% target.
Committee of the Whole
November 16, 2011
Page 2
$6,278,040 of refuse fees has been included in the 2012 budget. Previous years financial plans
identified the need for a new revenue source or a reduction in expenditures as a means of
addressing the funds impending structural deficit. Recapturing the costs associated with
providing waste collection and recycling services provides this revenue stream.
For 2012, the City is projecting a total sales tax budget of $18,422,500 which is a 2% increase as
compared to the 2011 estimate. The increase is attributable to the addition of Wal-Mart which
began operations on October 26th and should initially generate an annual sales tax of $822,500.
A full years estimate is included in 2012. Additionally, Sam’s Club, which is set to open in 2012,
will generate approximately $800,000 in additional sales tax revenue. This amount has been
included in the 2013 sales tax budget.
Income taxes are being budgeted with no increases to the 2011 estimate of $8,400,000.
The transfer-in to the general fund includes and additional $2,000,000 from the riverboat for a
total of $3,700,000.
The 2012 budget is based on maintaining the total dollar levy at the same level as in the previous
year. To do this, the city tax rate will no longer remain constant at $1.92 but will float with
changes in the EAV. The result will be that the average tax payer will pay the same dollars to the
city regardless of EAV.
The balanced approach to resolving the structural deficit requires not only a reduction in
expenditures but also the addition of a new revenue source. The proposed refuse fee will enable
public safety services to be delivered, as in the past, as well as diversify revenues and provide
funding for the City’s emergency communications system. The refuse fee will be included on the
city’s water bill.
Earnings and benefits are estimated at 75.9% of total general fund expenditures. The 2012
budget amount equates to a 2.3% increase when compared to the 2011 estimate. The increment is
attributable to rises in benefit costs and overtime requests.
Contractual services are the second largest expenditure within the general fund. As compared to
the 2011 estimate, this expenditure line item is budgeted to decline approximately $500,000 .
Capital expenditures in the 2012 budget and remaining plan years include $1,200,000 of funding
for the procurement of a public safety radio system. The addition of the refuse fees provides for
this purchase.
There was discussion on how overtime was used in the various departments and how reducing it
that would affect service. Also discussed were the costs of hiring staff to reduce the overtime. It
was noted by Assistant City Manager, Rick Kozal that the city has been actively working to
reduce over time over the past few years.
Committee of the Whole
November 16, 2011
Page 3
Riverboat Fund
The Riverboat Funds were established as special revenue funds to collect gaming tax revenues.
The city receives revenues from the riverboat operation by leasing the riverboat property and
from admissions and gaming revenue taxes. The admission tax collected is $1 per patron.
Gaming taxes received equate to 5 percent of the operation’s gaming receipts.
Riverboat and Riverboat Lease gaming proceeds for 2012 are budgeted at approximately $14
million. This represents a 16 percent decrease in estimated revenues from 2011. New proceeds
from gaming tax revenues have been declining since 2008. This decrease was initially credited to
the implementation of an indoor smoking ban in 2008 and the continued decline is attributed to
the economic downturn. The decrease in 2011 proceeds is directly related to the opening of the
Des Plaines casino in July of 2011.
There was discussion regarding the City’s bond rating and how it would be affected if there was a
change in the river boat policy. Colleen Lavery, Chief Financial Officer, quoted Standard &
Poor’s stating “we expect the city to make the budget adjustments it deems necessary to keep the
level of reserves despite continued pressures on its revenues due to the recession
There was discussion regarding bringing back the vehicle sticker program and the related
administration and enforcement costs.
Councilmember Steffen suggested instituting a similar funding program for the arts that was
proposed for the social service agencies. The application could be reviewed by the Cultural Arts
Commission with the Council’s final approval.
The Council discussed how economic development would be handled when the Chamber’s
funding was reduced. Mayor Kaptain noted that there would be discussion in January with
agencies that worked towards economic development as their service agreements would be
ending soon.
There was discussion regarding vehicle replacement and how much maintenance is costing as
opposed to replacing. It was noted that prior to 2010 the last vehicles that were replaced was in
2007. Also, discussed was vehicle auctions and how the City switched services that provides a
better return.
There was general consensus among the Council that there should be a stable revenue source that
would be used specifically for street repairs.
Break from 3:30 p.m. – 3:40 p.m.
Committee of the Whole
November 16, 2011
Page 4
Central TIF District
The Central TIF District is the City’s largest and most successful TIF district. The Central Area
TIF District was established in April 2002 and will remain in effect until April 2025.
DNA has proposed a plan that would make both the organization and the downtown district fully
self-sufficient by 2016. The plan calls for maintaining the organization’s current funding level of
$135,000 annually from 2012 through 2015 using TIF proceeds. During this time, the DNA and
the city will work together on the research and development of a special service area that would
provide full funding for the administration, maintenance and activities of the district above and
beyond basic city services. Corporation Counsel Cogley outlined the process to establish a
special service area
Mayor Kaptain explained a stormwater utility fee as a fee assigned for cost of maintenance of
storm sewers based on regulations established by the EPA. Specifically the regulations
regarding water purification.
Adjourn
Councilmember Gilliam made a motion, seconded by Councilmember Moeller, to adjourn until
6:00 p.m. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Moeller, Powell,
Prigge, Steffen, and Mayor Kaptain. Nays: None.
Reconvene
The regular Committee of the Whole meeting was reconvened by Mayor Kaptain at 6:05 p.m. in
the Council Chambers. Present: Councilmembers Dunne, Gilliam, Moeller, Powell, Prigge,
Steffen, and Mayor Kaptain. Absent: None.
Approval of Minutes
Councilmember Gilliam made a motion, seconded by Councilmember Steffen, to approve the
minutes of the November 2, 2011, regular meeting. Upon a roll call vote: Yeas:
Councilmembers Dunne, Gilliam, Moeller, Powell, Prigge, Steffen, and Mayor Kaptain. Nays:
None.
Downtown Parking Update
Staff requested that this item be delayed until the next regularly scheduled meeting.
Committee of the Whole
November 16, 2011
Page 5
Consideration of Change Order No. 1 and Final Payment with Virgil Cook and Sons
Incorporated for Pedestrian Crossing at College Green Drive and Randall Road
Councilmember Powell made a motion, seconded by Councilmember Moeller, to approve
Change Order No. 1 and final payment to Virgil Cook and Sons Incorporated in the amount of
$11,623 for the pedestrian crossing located at College Green Drive and Randall Road to increase
the walkability of an area of Elgin currently dominated by automobile traffic. Upon a roll call
vote: Yeas: Councilmembers Dunne, Gilliam, Moeller, Powell, Prigge, Steffen, and Mayor
Kaptain. Nays: None.
Consideration of Acceptance of Public Improvements within the Tall Oaks Subdivision,
Units 1 and 2
Councilmember Moeller made a motion, seconded by Councilmember Powell, to accept the
public improvements within the Tall Oaks Subdivision, Unit 1 and 2, and fulfill the city’s
obligation to maintain reliable infrastructure for serving businesses and residents. Upon a roll
call vote: Yeas: Councilmembers Dunne, Gilliam, Moeller, Powell, Prigge, Steffen, and Mayor
Kaptain. Nays: None.
Consideration of Reimbursement to Wyndham Deerpoint for Water Main Oversizing in
the Tall Oaks Subdivision
Councilmember Gilliam made a motion, seconded by Councilmember Moeller, to reimburse
Wyndham Deerpoint in the amount of $100,980 for the installation of an oversized water main
for planned water distribution system reinforcement and growth. Upon a roll call vote: Yeas:
Councilmembers Dunne, Gilliam, Moeller, Powell, Prigge, Steffen, and Mayor Kaptain. Nays:
None.
Consideration of Resolution Establishing a Schedule and Funding Policies and Priorities
for the 2012-2013 Community Development Block Grant Program Year
Councilmember Gilliam made a motion, seconded by Councilmember Dunne, to consider a
resolution to establish a schedule, funding policies, and priorities for the 2012-2013 Community
Development Block Grant Program to develop viable urban communities through the provision
of decent, safe and sanitary housing; suitable living environments; and expanded economic
development opportunities. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam,
Moeller, Powell, Prigge, Steffen, and Mayor Kaptain. Nays: None.
Committee of the Whole
November 16, 2011
Page 6
Consideration of Acceptance of Easement Agreement and Water Main Repair Agreement
with Life Storage Centers, LLC
Councilmember Dunne made a motion, seconded by Councilmember Moeller, to accept an
easement and water main repair agreement with Life Storage Centers, LLC to increase the city’s
ability to add circulation and redundancy in the water main system around the subject property.
Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Moeller, Powell, Prigge, Steffen,
and Mayor Kaptain. Nays: None.
Consideration of RFP 11-048 Regarding a Lease of Contract with Konica Minolta Business
Solutions for Five Multi-Functional Devices
Councilmember Moeller made a motion, seconded by Councilmember Gilliam, to consider a
lease contract with Konica Minolta Business Solutions for five multi-functional devices in the
amount of $42,073 in order to undertake initiatives to reduce the city’s cost of doing business.
Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Moeller, Powell, Prigge, Steffen,
and Mayor Kaptain. Nays: None.
Consideration of Change Order No. 1 and Final with J and T Services for the 2009 Central
Business District Water Main Project
Councilmember Moeller made a motion, seconded by Councilmember Steffen, to approve
Change Order No.1 and final with J and T Services in the amount of $30,915 for the 2009
Central Business District Water Main Project to enhance the water system in the Central
Business District by including additional work necessary to improve constructability. Upon a
roll call vote: Yeas: Councilmembers Dunne, Gilliam, Moeller, Powell, Prigge, Steffen, and
Mayor Kaptain. Nays: None.
Consideration of Adoption of a Resolution to Enter into an Intergovernmental Grant
Agreement with the Chicago Metropolitan Agency for Planning
Councilmember Steffen made a motion, seconded by Councilmember Gilliam, to adopt a
resolution to enter into an intergovernmental grant agreement with the Chicago Metropolitan
Agency for Planning in the amount of $100,000 to improve intermodal transportation options in
the most cost effective manner possible. Upon a roll call vote: Yeas: Councilmembers Dunne,
Gilliam, Moeller, Powell, Prigge, Steffen, and Mayor Kaptain. Nays: None.
Committee of the Whole
November 16, 2011
Page 7
Announcements from Council
Councilmember Prigge thanked Aaron Cosentino and Kristie Hilton for another successful Pet
Health and Safety Fair.
Councilmember Dunne reminded everyone about the Elgin Community Network’s Community
Dinner being held on November 24th from 11 a.m.-2 p.m.
Announcements from Staff
Cherie Murphy, Assistant to the City Manager for Community Engagement, announced
upcoming city events.
Adjournment
Councilmember Gilliam made a motion, seconded by Councilmember Moeller, to adjourn and go
into the Executive Session for the purpose of discussing the following matters. Upon a roll call
vote: Yeas: Councilmembers Dunne, Gilliam, Moeller, Powell, Prigge, Steffen, and Mayor
Kaptain. Nays: None.
Selection of a Person to Fill a Vacant Office, Including a Vacancy in a Public
Office, When the Public Body is Given Power to Appoint Under Law or
Ordinance, or the Discipline, Performance or Removal of the Occupant of a
Public Office, When the Public Body is Given Power to Remove the Occupant
Under Law or Ordinance - Exempt Under Section 120/2(c) (3) of the Open
Meetings Act
The meeting adjourned at 6:15 p.m.
s/ Kimberly Dewis December 7, 2011
Kimberly Dewis, City Clerk Date Approved