City of LaSalle Finance Committee met Nov. 29.
Here are the minutes provided by the committee:
Chairman Pro Tem Lavieri called the Meeting to order at 6:00pm
ROLL CALL
Present: Chairman Pro Tem Lavieri, Aldermen Demes, Jeppson, Herndon (Arrived at 6:11 p.m.)
Excused Absence: Chariman Ptak
Others Present: Deputy Clerk Brent Bader, Finance Director John Duncan, Economic Development Director Leah Inman, Mayor Jeff Grove
A quorum was present.
Moved by Alderman Demes and seconded by Alderman Jeppson to approve and place on file the amended minutes of the Finance Committee for November 15, 2021. Each and every alderman has a copy.
Voice vote, all ayes. Motion carried.
Moved by Alderman Demes and seconded by Alderman Jeppson to recommend the request from Jose Perez for a Redevelopment Incentive Program grant totaling $10,100 for premises located at 849 First Street.
Voice vote, all ayes. Motion carried.
Chairman Pro Tem Lavieri said he discussed the next item with the Mayor and Lavieri and noted it’s a “unique roof” and is expensive to repair. Finance Director Duncan said the City received funding for COVID relief that was earmarked for projects one being roof replacement and the second being tuckpointing. The roof leaks in multiple places at City Hall. Once the architecture plans are done the City will go out to bid and submit to the Council for approval.
Moved by Alderman Demes and seconded by Alderman Jeppson to recommend a proposal from Kmetz Architects for roofing replacement at City Hall.
ROLL CALL
AYE: Aldermen Demes, Lavieri, Jeppson, Herndon
NAY: None Absent: Chairman Ptak Abstain: None
MOTION CARRIED: 4-0
Finance Director Duncan then discussed the tax levy which were on the full Council’s approval later that evening. He ran down the line items on a small spreadsheet he created which is included here as “Exhibit A.”
Finance Director Duncan talked about the police and fire pensions. He noted the amount levied for the fire pension would be down $47,000 this year due to the City catching up on the fire pension payments. He reviewed the State of Illinois’ actuarial report and the City’s is levying almost double what the required amount is based on their report. They’ve also suggested the City of La Salle is 80% funded with that pension which is a significant improvement from the past. He also reviewed the Lauterbach and Amen report which recommended levying $185,397, which the City will also exceed.
The City will be levying an additional $130,000 for the police pension when compared to last year, noting the City is 37% funded by Lauterbach and Amen’s report while they are 39% funded by the State’s analysis. These are still increases from the past. The amount being levied is exactly the amount recommended by Lauterbach and Amen and above what the State has recommended. Chairman Pro Tem Lavieri asked if they were both working on the same target year and Finance Director Duncan said they were, however while Lauterbach and Amen recommend the City be 100% funded by that time while the State suggests 90% funded by that point. The other difference between the two is Lauterbach and Amen suggest a 5% rate of return while the State suggests a 5.75% rate or return. Both of which affect why their numbers are different.
The increase in total non-Bond levies comes to 4.96% and as such a truth in taxation in hearing is not required as it falls below 5%.
Finance Director Duncan then explained the bond levies come in less than $115,340 compared to last year due to a library bond and a 2007 bond which have been paid off. After this year, all the bonds will be paid off and debt will specifically be with IEPA loans with the wastewater treatment plant. Finance Director Duncan said homeowners will likely not see any increase or decrease on the City’s of La Salle’s portion of property taxes as a result. Chairman Pro Tem asked Finance Director Duncan to clarify that the wastewater bond is not interest free which he confirmed and noted it is not paid from property tax money but rather the sewer fund.
There were no more questions or comments from the public.
Chairman Pro Tem Lavieri adjourned the meeting at 6:16 p.m.
https://www.lasalle-il.gov/sites/default/files/agendas-minutes/2021-12/11-29-2021.pdf
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