City of Peru Finance & Safety Services Committee met April 2.
Here is the minutes provided by the committee:
THE FINANCE & SAFETY SERVICES COMMITTEE MEMBERS PRESENT: Aldermen Radtke and Payton present; Aldermen Sapienza and Buffo present remotely. Mayor Harl present.
OTHER PERSONS PRESENT: City Clerk Dave Bartley, Treasurer Powell, Alderman Ferrari, Alderman Lukosus, Alderman Ballard, ASM Doug Bernabei, PSM Jeff King, City Engineer Eric Carls, Finance Officer Justin Miller, Human Resource Manager Kim Reese, Mike Perry of Chamlin and Associates and Chris Perra of T.E.S.T. and Economic Development Director Bob Vickery
MATTERS DISCUSSED
Alderman Payton made a motion to approve the minutes of the March 2, 2020 Finance & Safety Services meeting.
Alderman Buffo seconded the motion; motion carried.
The Committee reviewed and approved the disbursements for payment on April 1, 2020.
PRESENTATION
OLD BUSINESS
Alderman Radtke asked Finance Officer Justin Miller for projection due to the COVID-19. Alderman Radtke noted the need to work on budget revenue assumptions.
Finance Officer Justin Miller outlined the budget line by revenue with the pre COVID-19 assumptions:
Sales tax-1% or flat
Home rule
Hotel/motel tax
Video gaming
State tax
Miscellaneous revenue
Alderman Radtke reported all were reasonable assumptions on March 7th.
Finance Officer Justin Miller noted the what ifs are different than the economic downturn of 2008. Finance Officer Justin Miller noted there is a risk of overreacting and under reacting.
Alderman Payton expressed his concern there will not be a full recovery until year one.
Alderman Sapienza noted concerns with lost hotel/motel revenue that won’t be made up.
Finance Officer Justin Miller noted state taxes are significantly impacted by unemployment.
Alderman Radtke stated the city should open the discussion with general fund revenues and opened the discussion at 10%.
Alderman Payton stated he thinks the economic indicator that the number should be closer to 20%.
Alderman Buffo suggested splitting the difference at 15%.
Alderman Radtke asked Finance Officer Justin Miller for input based on his knowledge of the actual sales tax producers.
Alderman Radtke ask for additional input from other members of the Council.
Alderman Ferrari concurred with Finance Officer Justin Miller suggestion of 10%; with Alderman Lukosus suggesting 15%; Alderman Waldorf suggesting 10% and Alderman Ballard suggesting 15%.
Treasurer Powell asked if the city would ask the top sales tax producers what they are trending.
Treasurer Powell at about recent credit rating reviews. Finance Officer Justin Miller noted we were reaffirmed based on pre COVID-19 data.
Alderman Payton asked if Buxton would have data to evaluate.
Alderman Radtke reviewed all input regarding sales tax and noted the average would be 13%; all agreed.
Home Rule assumption taking out grocery and medical with an additional 5%.
Finance Officer Justin Miller stated we could make these assumptions, but we can wait until June for the budget finalization. Alderman Radtke stated he thinks waiting will be more responsible to see how everything unfolds.
There are reserves for Parkside bond commitment. Justin Miller confirmed yes.
Alderman Radtke initiated the hotel/motel assumptions talk to reduce revenue by 10%.
Video gaming assumptions at 12% bringing the total to $1.6 million in projected lost revenue.
State tax LDGF (tax income) all agreed on 10%.
Miscellaneous impact down 5%. Total $1,888,039.00
Alderman Radtke asked to review the utility fund and agreed on commercial funds by 10% based on the input of Alderman Lukosus.
Alderman Waldorf stated there should be no rush to pass a budget until we have more information.
Alderman Radtke stated his preference for a budget sooner to manage the approval of expenses.
Finance Officer Justin Miller will update the budget and noted the deficit that is of $2.6 million but these are actual on hand from infrastructure funds accrued for the Peoria Street project.
Alderman Radtke asked to bring these numbers back to the staff and look at the capital expenses.
City Engineer Eric Carls noted the N. Peoria Street and Midtown Road projects are obligated. City Engineer Eric Carls noted there may be significant expenses with current projects stoppage.
City Engineer Eric Carls noted the General Fund Street project and Police Department project for the May 13th to consider the not to exceed budget.
Alderman Radtke asked to bring staff back to review the capital projects.
Clerk Bartley initiated a discussion regarding utility payments. Clerk Bartley reported waiving of late fees and disconnection at this time. Clerk Bartley also noted the waiving of credit card fees. Clerk Bartley or postpone and prorate to August 1st the renewal of liquor licensed. All agreed.
Clerk Bartley reported yard waste service was set to begin on Friday, April 3rd, but received a notice from Republic Services that the yard waste pickup service has been suspended due to the coronavirus. Clerk Bartley stated a plan is being formed for residents to still dispose of the yard waste bags at the City owned landfill / compost site.
Human Resource Manager Kim Reese discussed the following:
• Converting Military Time with IMRF
• Revised employee handbook
• Revised drug and alcohol policy
• Multiple trainings at all departments to prevent overtime
Alderman Ferrari expressed concerns with not knowing the name of the selected candidate for the cemetery before the vote.
NEW BUSINESS
Committee discussed $500 donation to Cops 4 Cancer and asked for formal vote at the next regular meeting.
PUBLIC COMMENT
CLOSED SESSION
Alderman Payton made a motion to adjourn. Alderman Sapienza seconded the motion.
Meeting adjourned at 7:55 p.m.
https://www.peru.il.us/city-government/minutes/finance-and-safety-services-minutes/2020-fs-1/4878-finance-and-safety-services-minutes-04-02-20/file
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