Loading...
HomeMy WebLinkAboutw - November 13, 2013 COW (Special) SPECIAL COMMITTEE OF THE WHOLE MEETING November 13, 2013 The Special Committee of the Whole meeting was called to order by Mayor Kaptain at 5:00 p.m. in the Council Chambers. Present: Councilmembers Dunne (arrive at 5:10 p.m.), Gavin, Moeller, Powell, Prigge, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Absent: None. Discussion Regarding the Budget Schedule City Manager Stegall reviewed the current budget meeting schedule. He highlighted what was discussed at the last meeting and what would be discussed at this meeting. General Fund Chief Financial Officer Colleen Lavery presented the end of year projects for 2013 and the proposed revenues and expenditures for 2014. A copy of the presentation is on file with the City Clerk’s office. The General Fund revenues are estimated to end the year at $113,673,000 and property taxes were on target at $26,500,000. The 2012 revenues were estimated to exceed the 2012 budget by approximately $2,000,000 and therefore the 2013 tax levy was reduced from the planned $28,500,000 to $26,500,000. She further stated that the reported sales and use tax for the first seven months of the year are $11,965,000 or 9% more than what was budgeted. Assuming similar overages for the remainder of the year the 2013 sales and use tax revenue is being estimated at $20,805,000. The state has reported income tax revenues for the first ten months of the year to be approximately $9,100,000 or 11.4% more than what was budgeted. Assuming that the remainder of the year has similar collections 2013 income tax revenue is being estimated at $10,460,000. Telecommunication tax receipts are estimated to end the year at $610,000 below budget. In preparing the 2012 estimates the tax receipts were in step with the tax receipts for the same period in 2011 therefore the 2012 revenues were estimated to achieve the previous year’s levels of $4,350,000. The telecommunication receipts for the remainder of 2012 fell short of the prior year and resulted in a budget deficit and because the 2013 budget was based on the previous year’s estimate the shortfall in revenues occurred. The income overages being estimated for service charges, miscellaneous revenue and transfers from other funds are accompanied by offsetting increases in expenditures. Charges for services include fees related to vacant building licensing and inspection. The city contracts these services to a third party and once the fee is collected the vendor is paid their share. A transfer of MFT (Motor Fuel Tax) funds was made to the general fund and this transfer was made to offset the cost of the annual MFT street resurfacing project, street light maintenance and street patching paid directly out of the general fund. Committee of the Whole November 13, 2013 Page 2 The 2014 proposed general fund revenues are $116,210,360 which represents a 2.2% increase from the 2013 estimate. The property tax diversification goal of reducing the percentage of property taxes in the general fund to 30% has been achieved. This was accomplished by adding the natural gas, electricity and alcoholic beverage taxes coupled with increases in other major revenue sources. The planned property tax levy for 2014 is $43,047,000. Property taxes are levied for the Debt Service, IMRF, Police and Fire Pension funds, and the General fund allocation. The police and fire pension fund’s annual required contributions have increased, with the fire pension annual contribution increasing $450,000 and the police pension contribution increasing $1,772,000. The estimates for the General fund’s income tax and sales tax revenues have exceeded the 2013 budget projections. This surplus allows for an unplanned $1,000,000 reduction in the General Fund Levy. Based on nine months of natural gas receipts, a budget overage of $250,000 has been projected. The cooler temperatures experienced in spring and early summer resulted in greater usage and therefore an increase in tax collections. The revenue estimates for electricity are expected to be $200,000 less than the budget. These revenues sources are impacted by temperatures and in 2012 and 2013 the shortages in one revenue stream were offset by overages in the other. Also, based on various market conditions the sales and use tax budgets for 2014 are assumed to remain at $20,805,000. It is noted that for 2014, income tax receipts are budgeted at $10,165,000. This amount assumes that receipts will return to normal and the economic environment and employment rates will remain stable. This also assumes that the state will not take any adverse actions which could reduce or eliminate this tax sharing. The cost of providing waste and recycling collection services to residential households is offset by a refuse fee. The fee is equal to what the city is charged by Waste Management. The current contract with Waste Management will expire on December 31, 2014 and it is anticipated that the current rate of $13.25 will change. The 2014 budget increase in wages and benefits is attributable to several factors including pensions, healthcare premiums and a cost of living increase. In regards to wages and benefits, the city has discretion over headcount. In order to minimize headcount the city utilizes overtime, cross training employees and outsourcing labor when appropriate. The filling of the Assistant Fire Chief for Emergency Operations and Pubic Services Director positions are being proposed for the 2014 budget. The 2014 contractual service expenditures are budgeted at $15,806,000. There are three expenditures: disposal, utilities, and equipment replacement. These three items account for $8.8 million or 56% of the total expenditure. The increase in this year’s budget is due to a 3% increase in disposal rates and the addition of contractors that are performing functions which current staffing levels prohibit. Additional funds are being allocated towards communications Committee of the Whole November 13, 2013 Page 3 and marketing, a housing inventory which will allow the code department to identify issues and measure progress, and a GIS specialist to assist with inventorying the city’s infrastructure. There was discussion regarding labor contract wage increases; public safety costs, and pension funding impacts. Also discussed were costs for contractual services; staffing policy decisions for 311; and positions within the Code Department. Also considered were special events funding; the property tax levy; and the estimated cost for the utility taxes residents. The Council took a break from 6:45 p.m.-7:00 p.m. Recreation Fund Chief Financial Officer Colleen Lavery provided information regarding the Recreation Fund. A copy of the presentation is on file with the City Clerk’s office. The Recreation Fund estimated revenues for 2013 are $11,208,690 compared to a budget of $10,539,890. The overage is due to an increase in the working cash carryover from 2012 operations, program revenues that are expected to exceed budget by $130,000 and a summer hiring grant of $26,000 from the State of Illinois. The funds 2014 total revenues are budgeted at $10,675,780 which is a $533,000 decline as compared to the 2013 estimate. The decrease in charges for services and sale of commodities is due to the proposed closure of the Wing Park Pool in 2014. The Wing Park Pool was forced to close on July 29th due to the failure of the pools five circulation pumps. These pumps need to be replaced with larger, higher capacity pumps. The pool’s main vessel and diving well need to be sand blasted and repainted, diving boards need to be replaced and stairs need to be re-gripped. The pool also needs to be equipped with a pool lift to be compliant with the Americans with Disabilities Act (ADA). This work can only be completed when the weather permits. The time required to complete these repairs will prohibit the pool from opening in June and rather than operate for a reduced time period, staff is recommending that the pool remain closed in 2014. The Recreation Funds earnings and benefits are being increased to $5,162,250 from the 2013 estimate. The commodities and supplies expenditures are budgeted to decline because the Wing Park Pool concessions will be closed. The Fund’s capital outlay includes $600,000 of costs associated with the required ADA improvements at the Sports Complex Softball Area. Committee of the Whole November 13, 2013 Page 4 Ms. Lavery provided a listing of unfunded ADA mandates. The list was not all inclusive but rather a plan to implement the necessary changes to bring parks and recreation facilities into compliance with ADA requirements. There was discussion regarding the impact of the Wing Park pool closure and how other facilities would absorb the services and programs; how old the facility is; location of flood plains; and user fee study. There was also discussion regarding the ADA (American with Disabilities Act) park improvement mandates. The council reviewed the obligations to conform to the ADA mandates and how progress towards completion is measured. Corporation Counsel Cogley reviewed the terms of act and potential liability for the city if the work was not completed. Riverboat Funds Assistant City Manager Rick Kozal provided background on the fund and how the revenue would be used based on agreements with the Grand Victoria Riverboat Casino. A copy of the presentation is on file with the City Clerk’s office. He provided information regarding the Riverboat Fund means of financing which comes from gaming tax; admissions tax; and interest earning which currently totals $33,572,980. Further he noted previous and proposed strategic initiatives that would be funded from the riverboat including: economic development agreements; business improvement grants; entryway signs; bikeway path implementation, bridge rehabilitation; Chicago Street sewer separation; the sewer lateral program; elevator upgrades; tree replacement; multi-family housing conversion program; and the warning siren system upgrade. Mr. Kozal provided information regarding the riverboat lease fund’s means of financing which comes from lease payments to the city and totals $6,442,660. Further he noted previous strategic initiatives that would be funded from the riverboat lease including: a comprehensive plan for land use, the South Street extension, and the NeighborWorks program. There was discussion regarding the bikeway path; ADA compliance; vehicle replacement; building maintenance; special events; Chamber of Commerce; Downtown Neighborhood Association; train quiet zones; and business improvement grants. Meeting Recap City Manager Stegall reviewed the various points and topics that staff would provide follow up on at a later date. Committee of the Whole November 13, 2013 Page 5 Adjournment Councilmember Moeller made a motion, seconded by Councilmember Gavin, to adjourn the meeting. Upon a roll call vote: Yeas: Councilmembers Dunne, Gavin, Moeller, Powell, Prigge, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Nays: None. The meeting adjourned at 9:02 p.m. s/ Kimberly Dewis December 4, 2013 Kimberly Dewis, City Clerk Date Approved