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HomeMy WebLinkAboutw - November 15, 2017 COW COMMITTEE OF THE WHOLE MEETING November 15, 2017 The regular Committee of the Whole meeting was called to order by Mayor Kaptain at 5:00 p.m. in the Council Chambers. Present: Councilmembers Dixon, Dunne, Gavin, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Absent: None. Approval of Minutes Councilmember Shaw made a motion, seconded by Councilmember Martinez, to approve the minutes of the November 1, 2017, special meeting. Upon a roll call vote: Yeas: Councilmembers Dixon, Dunne, Gavin, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Nays: None. Councilmember Shaw made a motion, seconded by Councilmember Martinez, to approve the minutes of the November 8, 2017, regular meeting. Upon a roll call vote: Yeas: Councilmembers Dixon, Dunne, Gavin, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Nays: None. 2018 Budget Discussion City Manager Kozal provided an overview of the budget topics to be discussed during the meeting. They included the General Fund, River Boat Fund, Central Area TIF, Utility Fund, and a presentation from the Elgin Area Convention and Visitors Bureau. Debra Nawrocki, Chief Financial Officer and Budget Director, presented information regarding the General Fund and the Financial Plan. She provided information regarding the revenues and expenditures for 2017. She also explained the manner in which the state provided the income tax due to the city impacted projected revenues. She stated that expenditures were affected by a decrease in cost of health insurance and payroll savings from unfilled positions. For 2018 revenues, the general fund property tax levy will remain flat at the current rate, there are increases to the hotel/motel tax, home rule sales tax and a new motor fuel sales tax. Also proposed are an increase to nonresident ambulance fees and a pass through fee increase for waste management services. On the expenditures side, there is a proposed change in the Fire Department staffing model, a 5% decrease in spending on various commodities, and eliminating the funding to the Elgin Area Convention and Visitors Bureau. There was discussion regarding income tax payments from the state, how future capital projects would be funded, and the city’s reserve levels. Committee of the Whole November 15, 2017 Page 2 Laura Valdez-Wilson, Senior Management Analyst, presented information regarding the River Boat fund. The fund has seen a decrease in revenues and therefore fewer projects have been accomplished in recent years. Starting in 2005 there were 146 projects funded out of the river boat fund and it is anticipated that in 2018 there will be 33 projects and in 2019 there will be 8 projects. The anticipated revenue for 2018 is $11 million dollars with $9.7 million from gaming and admission and $1 million for the lease. In addition, video gaming revenue is expected to be $250,000. The Riverboat Fund is restricted to capital purchases, one-time non-operating expenditures, and funding for community organizations. The proposed projects for 2018 include City Hall Plaza improvements, retaining wall repairs, purchase of a snow plow, various street resurfacing and rehabilitation projects, roof replacements, economic development incentive commitments, and neighborhood grants. There was discussion regarding the previous year funding carry over, and how projects previously funded would be addressed, as well as the impact on the local not for profit organizations. Ms. Valdez-Wilson noted that the building assessment for 600 State Street was being completed to determine the viability of shared office space for local not for profit organizations. Debra Nawrocki, Chief Financial Officer and Budget Director, presented the 2017 overview of the Central Area Tax Increment Financing Fund. Revenue estimates for 2017 were up 25% from 2016 and the EAV (Equalized Assess Value) also showed an increase from the prior year of 32%. Revenues for 2017 are expected to be $8 million dollars. The expenditures were estimated at $6.6 million with the majority of the expenses coming from the development assistance with Capstone for the work on the Tower Building. It was estimated that there would be $1.8 million to carry over to 2018 in this fund. In 2018, the fund would be used for the Chicago Street Sewer Separation project and continued funding to the Downtown Neighborhood Association (DNA). City Manager Kozal provided information regarding potential projects in the Central Area Tax Increment Financing district. Properties in the district, such as the Crocker Theatre property, could support larger redevelopment projects and have a greater impact on the increment. Other opportunities would be to work with the DNA to perform residential conversions or provide capital investments such as the grease trap program. There were discussions regarding the boundaries of the TIF district, potential projects for small businesses, historic preservation, property deconversion, and the process when a Tax Increment Financing district expires. Debra Nawrocki provided an overview of the Utility Fund. Factors impacting this fund include the termination of the water contract with Bartlett, personnel costs, and a carryover from the Bluff City Sewer Project from 2016. The water and sewer rates are budgeted to increase by 7 and 8 percent respectively. Committee of the Whole November 15, 2017 Page 3 Eric Weiss, Interim Water Director, provided an overview of proposed projects in the Utility Fund. The projects will invest $11.7 million in utility improvements in 2018 to maintain current services and to plan for future growth. The funding for the strategic initiatives will come from impact fees, capital project funds, and the issuance of general obligation bonds. Adjourn to the City Council Meeting Councilmember Gavin made a motion, seconded by Councilmember Martinez, to adjourn and go into the City Council meeting. Upon a roll call vote: Yeas: Councilmembers Dixon, Dunne, Gavin, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Nays: None. Reconvene Councilmember Gavin made a motion, seconded by Councilmember Martinez, to reconvene the Committee of the Whole meeting. Upon a roll call vote: Yeas: Councilmembers Dixon, Dunne, Gavin, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Nays: None. Public Comments Kim Bless, Director of the Elgin Area Convention and Visitors Bureau (EACVB), provided a presentation about the Bureau’s activities and the roll out of a new marketing campaign. Local business representatives Marylou Pilman, from the Grand Victoria Casino, and David Bear, from Bearco McDonalds, expressed their support for the EACVB. Ms. Bless explained the funding model of a matching grant from the state and what it meant to be a certified convention bureau. There was discussion regarding financial and budget details, staffing levels and salaries, as well as the projects the EACVB has been involved in. Also discussed was how these tasks would be handled if the bureau closed. Announcements from Council Councilmember Rauschenberger noted the passing of Virginia Umberger who had recently turned 108 years old. Councilmember Martinez thanked all that attended the Veterans Day program held on November 11, 2017 at Veterans Memorial Park. Committee of the Whole November 15, 2017 Page 4 Councilmember Dunne invited the public to attend the Community Thanksgiving Dinner being held at United Methodist Church. He also encouraged residents to participate in “Giving Tuesday”, on November 28, 2017. The program allows for a 100% donation match to not for profit groups. Announcements from Staff Molly Center, Management Analyst in the City Manager’s Office, announced upcoming city events. Adjournment Councilmember Gavin, made a motion, seconded by Councilmember Dunne, to adjourn the meeting. Upon a roll call vote: Yeas: Councilmembers Dixon, Dunne, Gavin, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Nays: None. The meeting adjourned at 8:45 p.m. s/ Kimberly Dewis December 6, 2017 Kimberly Dewis, City Clerk Date Approved