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HomeMy WebLinkAbouty - November 28, 2012 COW COMMITTEE OF THE WHOLE MEETING November 28, 2012 The Committee of the Whole meeting was called to order by Mayor Kaptain at 5:05 p.m. in the Council Chambers. Present: Councilmembers Gilliam, Moeller, Powell, Prigge, Steffen, and Mayor Kaptain. Absent: Councilmember Dunne. Approval of Minutes Councilmember Gilliam made a motion, seconded by Councilmember Moeller, to approve the minutes of the November 7, 2012, special meeting. Upon a roll call vote: Yeas: Councilmembers Gilliam, Moeller, Powell, Prigge, Steffen, and Mayor Kaptain. Nays: None. Councilmember Moeller made a motion, seconded by Councilmember Gilliam, to approve the minutes of the November 14, 2012, regular meeting. Upon a roll call vote: Yeas: Councilmembers Gilliam, Moeller, Powell, Prigge, Steffen, and Mayor Kaptain. Nays: None. Review of the Utility Fund Chief Financial Officer Colleen Lavery presented information about the utility fund. She noted that in past budgets the water and sewer enterprise funds were separate. The 2013 budget combines these funds into a single Utility Fund. Sewer fees are dependent on water usage and because of this dependence on the Water Fund, the two funds are being combined to present a comprehensive view of the city’s water distribution system. Consolidating these funds allows for a degree of flexibility when setting user rates and financing the infrastructure improvements necessary for a reliable and high functioning water distribution system. The water utility provides for the treatment and distribution of water to city residents, businesses and the neighboring communities of Sleepy Hollow and Bartlett. The water utility supports the operation of the Riverside and Airlite water treatment plants with capacities of 32 million and 10 million gallons of water per day respectively. The sewer utility provides residents and businesses with the collection of wastewater. The city is responsible for the maintenance of sewer lines, while wastewater treatment services are provided by the Fox River Water Reclamation District (FRWRD). The Utility Fund derives its revenues from the sale of water. The water and sewer services provided to individual properties are measured and then billed based on calculated usage. Thus fees within the Utility Fund operate on a “pay as you use” service delivery model. The factors having the greatest impact on revenue from water and sewer billing are the level of consumption and utility rates. The 2012 water rate was reduced from the previous year by one percent. The sewer rate remained the same as it was in 2011. Committee of the Whole November 28, 2012 Page 2 Combined service revenue in 2012 is projected to be $30,352,000 which is approximately 15 percent greater than budgeted revenues of $26,392,250. The drought that was experienced in 2012 resulted in a 13 percent increase in budgeted water usage and revenues. The 2013 budgeted commodities and supplies expense is eleven percent or $367,790 greater than the 2012 estimate due to an increase in costs of water meters and accessories. New EPA regulations that take effect in January 2014 require all drinking water materials be lead free. This will require any water meter removed from service to be replaced with a new meter that meets the requirements of this mandate. A price increase is anticipated because it costs more for the vendors to manufacture the new meters. The proposed 2013 capital projects will be funded by issuance of debt, collected impact fees and existing project savings. An additional combined sewer separation project of $4,000,000 is included in the 2013 budget and will be financed with the overage of revenues resulting from the additional water sales. There was discussion how the communities were chosen for water rate comparison and if other communities should be added. Also discussed was if other communities used the combined utility fund model. Councilmember Moeller asked about a presentation about water conservation options to help residents save money. Review of the Recreation Fund Chief Financial Officer Colleen Lavery presented information about the recreation fund. The fund’s estimated revenues for 2012 are $10,724,030, compared to a budget of $9,619,050. The overage is attributable to an increase in the working cash carryover from 2011 operations. In addition, program revenues are expected to exceed budget by $200,000. In 2012, there was a planned $670,000 decrease in the general fund transfer to the Parks and Recreation fund. In order to reduce the level of support to the Parks and Recreation fund expenditure reductions, including staff reductions, were implemented. The operations of the Hemmens shifted away from providing performances to a rental facility. In the past, the General Fund would subsidize performances and all associated costs however, under the new model only utility costs, general building maintenance and required staffing costs remain. The Parks and Recreation estimated expenditures for 2012 are $7,807,000 which is $142,030 greater than budget. Unexpected expenditures related to locker room repairs and water tanks at the Centre were made and the financing for these projects was taken from the fund’s capital reserve established three years ago. Committee of the Whole November 28, 2012 Page 3 Review of the Central Area TIF Assistant City Manager Rick Kozal presented information regarding the Central Area TIF. He provided the geographic boundaries of the Central Area TIF and noted that it is the largest and most successful of the TIF areas. In 2013 revenue is expected to be 19.2 million and expenditures to be 16.2 million. In 2012 revenue was at $17,745,480 which is comprised of redevelopment grants, the TIF increment, working cash, interest earning and Route 20 TIF and expenditures were at $2,892,140 which is made up of capital outlay and contract services. The focus of the capital outlay for 2013-2017 is to finish projects that have been started, continued investment in property, and the infrastructure. Projects that are currently in progress include: Riverside Drive promenade $9.6 million; CBD resurfacing and streetscape phase $4.3 million. Projects under the continuing reinvestment of properties include: property acquisition $1.29 million North Grove Avenue redevelopment, North Grove Avenue sidewalk improvement $100,000, downtown facade improvement program $100,000 and the downtown projecting sign program $20,000. Planning for future infrastructure demands, for 2013-2017, include new strategic initiatives such as: the Chicago Street sewer separation $175,000 for 2015 and $840 for 2016, bridge rehabilitation $300,000 and bridge replacement reserve $300,000. Also included in the 2013-2017 Financial Plan are contractual services. These include: Dupage Court combined sewer separation $400,000, Downtown Neighborhood Association $135,000 thru 2016, economic development incentives and special projects $260,000, and professional services $50,000. It is anticipated that the Downtown Neighborhood Association will received funding in 2017 via a Special Service Area. City Manager Stegall noted that, as with the overall budget, the main focus is on maintenance. Mayor Kaptain thanked staff for looking into taking care of future needs of the city. Councilmember Powell asked that discussions regarding the Hemmens include information contained in a study conducted last year on possible future uses and needs at the facility. Councilmember Gilliam asked about how overtime is handled and if reducing overtime would help reduces overall expenses for the City. City Manager Stegall explained that the current model allowed for the overtime and with smaller workforce this model cost the city less. He further explained that fewer workers equate to fewer pension and insurance benefits expenses Councilmember Prigge expressed concerns about employees being forced to work overtime and safety issues. Committee of the Whole November 28, 2012 Page 4 Councilmember Powell asked about using funds for residential properties within the Central Area TIF for projects such as diseased tree removal and other grant programs. City Manager Stegall noted that there needed to be an amendment to the neighborhood improvement grant program to allow for this and staff would be presenting a draft of these changes after the first of the year. Review of the Other Funds Chief Financial Officer Colleen Lavery presented information about the other funds, such as capital improvement and the golf fund. On July 1, 2012 the increased home rule sales tax, from .75% to 1.25%, took effect. The additional sales tax collected is shown in the Capital Improvements fund where it is earmarked for infrastructure improvements. In 2012, the receipts were used for the resurfacing of neighborhood streets and the repayment of the $2.3 million dollar debt owed to Elgin Community College for the reconstruction of Spartan Drive. Ms. Lavery also reported that the golf fund no longer required any subsidy. As of January 1, 2013 Porter’s Pub would be operating only under Carlucci and no tax dollars would be supporting golf operations. Discussion of the Cook County Tax Bill Chief Financial Officer Colleen Lavery provided further information regarding the tax bill for residents in Cook County and the changes to the homeowner exemption. This change caused an increase in the property tax bills for many residents in Cook County. There was discussion regarding changes that were made during last year’s budget review including the revenue diversification plan that triggered new revenue streams including an alcohol tax and gas tax. User Fees Chief Financial Officer Colleen Lavery presented information about user fees. User Fees denotes the goods or services provided by a local municipality which are financed by charging the user. These fees can be broken down into three categories: community services, regulatory and administrative, and quality of life. Regulatory and administrative are those fees associated with regulatory and administrative processes such as licenses, police and fire services, building permits, and fees paid by developers. Quality of Life fees are associated with public services that add to the quality of life, such as parks and recreation programming. These services in Elgin are associated with the Recreation and Golf Funds. Ms. Lavery noted no substantial changes to the user fees. The exception being the refuse fee which was to increase based on the pass through cost from the Committee of the Whole November 28, 2012 Page 5 waste management contract. The waste management contract would be reviewed in the coming year as the current contract is set to expire. Consideration of Elgin Image Commission’s 2012 Recognition Awards Councilmember Gilliam made a motion, seconded by Councilmember Steffen to approve the Elgin Image Commission’s 2012 Recognition Awards to recognize individuals with a connection to Elgin who have attained local, regional, or national prominence. Upon a roll call vote: Yeas: Councilmembers Gilliam, Moeller, Powell, Prigge, Steffen, and Mayor Kaptain. Nays: None. Consideration of Sub-Recipient Agreement with Association for Individual Development for 2012-2013 Community Development Block Grant Councilmember Moeller made a motion, seconded by Councilmember Steffen to approve the execution of Program Year 2012-2013 Community Development Block Grant Sub-Recipient Agreement with Association for Individual Development in the amount of $40,104 to provide services to individuals who have developmental, physical and/or mental disabilities and those in need of behavioral health services. Upon a roll call vote: Yeas: Councilmembers Gilliam, Moeller, Powell, Prigge, Steffen, and Mayor Kaptain. Nays: None. Consideration of Sub-Recipient Agreement with The Larkin Center for 2012-2013 Community Development Block Grant Councilmember Gilliam made a motion, seconded by Councilmember Powell to approve the execution of Program Year 2012-2013 Community Development Block Grant Sub-Recipient Agreement with The Larkin Center in the amount of $50,600 to provide uninsured, at-risk children with primary and preventive pediatric dental care, childhood nutrition counseling and food assistance in the Elgin community. Upon a roll call vote: Yeas: Councilmembers Gilliam, Moeller, Powell, Prigge, Steffen, and Mayor Kaptain. Nays: None. Consideration of Sub-Recipient Agreement with Renz Addiction Counseling Center for 2012-2013 Community Development Block Grant Councilmember Moeller made a motion, seconded by Councilmember Gilliam to approve the execution of Program Year 2012-2013 Community Development Block Grant Sub-Recipient Agreement with Renz Addiction Counseling Center in the amount of $33,000 to provide a safe overnight shelter and connection with support services to homeless individuals and families in the greater Elgin area. Upon a roll call vote: Yeas: Councilmembers Gilliam, Moeller, Powell, Prigge, Steffen, and Mayor Kaptain. Nays: None. Committee of the Whole November 28, 2012 Page 6 Consideration of Acceptance of the Illinois Department of Transportation “Local Alcohol Program” Grant for Drunk Driving Enforcement Councilmember Gilliam made a motion, seconded by Councilmember Moeller to approve the Illinois Department of Transportation “Local Alcohol Program” grant for drunk driving enforcement in the amount of $41,584 to partner with the Illinois Department of Transportation to continue making the roadways safer by providing a high level of drunk driving enforcement. Upon a roll call vote: Yeas: Councilmembers Gilliam, Moeller, Powell, Prigge, Steffen, and Mayor Kaptain. Nays: None. Consideration of Acceptance of the Illinois Department of Transportation “Sustained Traffic Enforcement Program” Grant for Enforcing Safe Driving Practices Councilmember Powell made a motion, seconded by Councilmember Steffen to approve the Illinois Department of Transportation sustained traffic enforcement program grant in the amount of $61,444 to continue making the roadways safer by providing a high level of traffic enforcement. Upon a roll call vote: Yeas: Councilmembers Gilliam, Moeller, Powell, Prigge, Steffen, and Mayor Kaptain. Nays: None. Consideration of Contract with the Kane County Child Advocacy Center for Services Relating to the Investigation of Sensitive Crimes Involving Children ($35,000) Councilmember Moeller made a motion, seconded by Councilmember Gilliam to approve the contract with the Kane County Child Advocacy Center for Services relation to the investigation of sensitive crimes involving children in the amount of $35,000 to provide investigative and victim services for cases involving children who have been victimized by sexual or serious physical abuse. Upon a roll call vote: Yeas: Councilmembers Gilliam, Moeller, Powell, Prigge, Steffen, and Mayor Kaptain. Nays: None. Announcements from the Council Mayor Kaptain congratulated the Izaak Walton League and Bill Jones on receiving a national award for their support of the leagues mission, commitment to membership, local scholarship, youth engagement and effective communication. They were the only chapter in Illinois to receive this award.. He also commended the Laotian community on their recent efforts to register six hundred voters when their goal was two hundred. Committee of the Whole November 28, 2012 Page 7 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 Steffen, to adjourn the meeting. Upon a roll call vote: Yeas: Councilmembers Gilliam, Moeller, Powell, Prigge, Steffen, and Mayor Kaptain. Nays: None. The meeting adjourned at 7:04 p.m. s/ Kimberly Dewis December 5, 2012 Kimberly Dewis, City Clerk Date Approved