City of LaSalle Finance Committee met June 29.
Here are the minutes provided by the committee:
ROLL CALL
Present: Chairman Ptak, Alderman Thompson, Lavieri, Jeppson, Herndon Others Present: Mayor Jeff Grove, Finance Director John Duncan, Economic Development Director Leah Inman, Supt. Public Works Patrick Watson, Fire Chief Jerry Janick, Deputy City Clerk Brent Bader, Alderman Bacidore, Alderman Reynolds, Alderman Crane
Preliminary Budget for Fiscal Year 2022-2023
Economic Development Director Leah Inman started the conversation in regards to a grant survey that she sent out a few weeks back to a handful of city officials and the aldermen. Brian Brown and Inman brainstormed to get some ideas of what were some things to focus on for the city. The results are tallied on the survey that she provided the aldermen. Inman stated the survey wasn't anything very formal, but Inman felt that it was nice to see where the city officials would like to see efforts go towards. Inman stated that the alleys and the abandoned residential properties are a top priority by most. This will help to guide Inman, Brown and potentially NCICG as far as that goes for what kind of grants the city would like to go after. Aldermen Reynolds asked if Inman was surprised by these results on the survey. She was not surprised. She does believe that they do need some help with some of the homes that are dilapidated and the CDBG grants will come up soon. These are the grants that were the ones that were recently just released to Spring Valley and Ottawa for $550,000 each for residential replacements. Inman also mentioned that within the economic development budget, she has some memberships that she would like to be considered. Inman stated that she presented a three tier approach last year. The largest membership would be with NCIEDC, which is the North Central Illinois Economic Development Corporation. That's about a $12,400 investment and that is based on per capita population. That would be for recruiting large industrial sites. They're the ones that work with Intersect Illinois, who has a public private partnership through the state of Illinois, and they basically compile all the RFIs that might get filtered down to groups, as well as some larger municipalities as well. Inman continued to explain the middle tier is IVAC, being a $3,000 investment. IVAC is doing a lot more networking for the communities. IVAC's next event looks to be a commercial open house in October for the whole IVAC region. Ottawa had great success when they did an event like this. They had a building sold and at least two buildings leased that day. During the commercial open house event, they will have some people doing presentations for TIF, Enterprise zone, and all the incentives that would benefit a lot of the communities around here and some incentives that are even at the state level. The last portion of Inman’s three tier memberships would be the Small Business Development Center at $1,000. This group is headed by Amy Lambert. They are part of a public private partnership with the Starved Rock Community Alliance at the old post office and funded by the state. This membership for our entrepreneur friendly community seems to be a no-brainer. They have helped area people and businesses get to the next level and talk to one another. Between those three different organizations, Inman feels that it hits all the groups in the city, the entrepreneurs, the middle people, current businesses, and commercial areas.
Finance Director Duncan began his discussion of the appropriations for the upcoming 2022- 2023 fiscal year. Duncan provided each and every aldermen with a hard copy. Please see EXHIBIT A.
Alderman Lavieri had a question in regards to property tax being the same as real estate tax. Duncan stated that the city levies for property tax levy, the property tax across many different funds. The city levy for the pensions, which comes out of the general fund and they levy for the general fund which comes out of the general fund. The city also levy for crossing guards and social security and those come out of their own separate funds. If the city were to just add up what they have in property tax, you'd have to go through every single fund. Something else that Ducnan pointed out about these accounts is that they all mirror each other. If the funds end in 3110, it is a property tax revenue account. If the two numbers preceding that are 01, then it's the general fund. but you can see in fund 16 or 18 or 20, they also have property tax. If one wanted to look at each total property tax levy, they would have to add every property tax from every fund. Alderman Lavieri asked for this explanation because many residents claim that they pay their property taxes, so the city should be able to do an expensive project. Duncan stated that the first line under the general fund is all the money the city gets from the general fund from property taxes. Duncan mentioned that under that section property tax, there are a couple of bonds that the city has left to pay off for specific projects. The $341,000 and then the property tax pension, $1.9 million, is inclusive of both fire and police pensions. That is the sum of both of them that the city levies for. That income will be coming in, but again, one will see that when they go to the fire and police expense reports, the $1.1 million, $935,000, being distributed to those pension expense accounts and sum up to those amounts.
Alderman Crane asked Duncan about the $1.5 million allotted for the Public Works building. Crane was wondering if the $50,000/yr that the Mayor mentioned was throwing in part of that $1.5million. Mayor reminded Crane that he had earmarked $50,000 a year for 7 years to cover the purchase price of $350,000. Crane didn’t know if adding that $350 into the 1.5 million budget was necessary to show they would potentially be spending $1.8 million on the project. Duncan did not know if it was necessary to make those decisions right now at this time. The city can add or subtract more to the budget depending on what is needed for the project. Duncan wanted to have the $1.5 million allotted in this fiscal year for the current project.
Under Community Development and Marketing, Bader asked to budget in to update the new resident packet and to develop a community calendar that would include city events, garbage days, and city holidays.
Alderman Crane mentioned making Bader and Inman’s salary more comparable to what the city once paid Don Alexi of $65,000 when he was the City’s Economic Developer years ago.
Duncan stated that the city could look at this when the city discusses the non-union wage ordinances annually.
Alderman Lavieri asked where the employer to city portion of medicare and social security were listed. Duncan explains it as follows: If an employee’s salary is under the general fund, their Medicare and Social Security are in the Social Security fund. If the employee’s salary is in the water or sewer fund, their Medicare and Social Security are in that respective fund. The general fund and personal property replacement tax are the two funding sources for Social Security. Lavieri also asked about personal property replacement tax. He confirmed with Duncan that it was a tax that replaced the old personal property tax.
Aldermen Crane suggested still keeping the salt dome accessible to use at the current location or to potentially look into a warranty that still might be out on the current dome. The warranty may allow for some money back to move the dome's location or to fix the repairs that may be needed to the dome.
Alderman Bacidore did ask about how much the city budgets for salt. Salt fund is located under fund 0140401 1561 60. Duncan has the city budgeted for $125,000. Last year the city did use $141,000. Duncan wants to keep the budget at $125,000 because he believes they will not use as much as last year. Bacidore was just concerned because everything else is going through the roof with prices. Duncan informed the committee that Watson does get the state bid right away and does go out and compares to try to beat that price. Duncan also believes that based on inventory, the city will not need to buy as much as they did last year.
Duncan mentioned that the new public works building does not have its own account code yet because it's new to this fiscal year. Duncan will assign a GL account code and all of the expenses of the new public works building will be tracked to that account number. He is forecasting 1.5 million, but the city has three different funding sources for this project; water, sewer, and TIF.
City Engineer Brown's salary is split between the sewer and water departments funds. Brown also added an additional $5,000 to his budget this year for a handheld GPS. His current one does not read satellites anymore. This tablet will allow for submeter accuracy.
Mayor asked about this being the last year for the bond payment for revenue for the library. Duncan did confirm that it is.
Mayor also asked about having earmarked some money in the TIF for Flying J. Duncan also confirmed that to be correct. Ducan did also state that it is usable for TIF qualified expenditure.
Alderman Crane asked to appropriate money in the future to rural roads like North 29th/Hogsback. He would like to see the city pave them to the shoulder instead of tarchipping them every couple years. Crane estimated such a paved project to be $200,000 per mile and the city has approximately 7 miles. Crane also believed that some of these roads were part of a TIF that could be used to pay for such a project. This would be something for the council to discuss with Brian for the future.
Duncan did mention how the pool will need a liner in order to open next season, with the possibility of spreading it over the next two fiscal years. Since it is a significant portion of the park and recs budget, Mayor Grove suggested spreading the amount between two fiscal years. Duncan suggested that maybe the company would allow one payment in April and one in May that would allow two payments over two fiscal years. Either way, the park department is probably going to be in a negative balance for a period of time until they can overcome these expenditures.
Duncan went through Ambulance Fund 23. Chief Janick mentioned how with the GEMT program, there is a 50% kick back, so the city will see $150,000 on top of that. Duncan stated that last year they were collecting the revenue and sent it out, so the city didn't have the associated expense for them.
Supt. Watson elaborated on a couple projects that he asked to be appropriated into the Water Dept. Budget. The enclosed trailer for $12,000 would help us to not have to continually run back or to different locations to obtain materials. The road broom would go on the new skid steer. The other $12,000 trailer would be for the new skid steer. The shipping containers are being used to store items from the Civic tower that they are currently cleaning out. And the new service truck would be for the water dept.
Engineer Brown ran through some explanations of other projects that they had appropriated for. Brown mentioned how the city had a $530,000 expense for the lift station upgrades with the new pumps and the bigger size. Brown spoke with Ameren and Brown told them that multiple trucks of thiers did a significant amount of damage to the road, about a quarter million dollars, and they said to take that off the top of the $530,000. City is now down to owing Ameren $280,000. The anticipated $530,000 will allow the city to do all the repairs due to Ameren’s work and will also allow the city to do some upgrades to the lagoons and the pump station to get to the flows that the city needs. Brown doesn't expect it to cost $500,000 dollars, instead it will cost $50,000 plus the payment.
Finance Director Duncan closed the meeting with the committee members by reminding all that things can be discussed and numbers are not final. This is an appropriations document. All projects do not have to happen and projects can be substituted, if a different priority comes up.
Chairman Ptak asked if the city’s water and sewer balances are affecting the city from receiving grants. Duncan believes the water and sewer currently have very healthy balances. Brown or Duncan are unaware if the city has ever been denied a grant because of the city’s balances or rates.
Alderman Crane would like to see water and sewer money used to replace the roads from bottom up. Not just paving over the old roads but replacing sewer before roads get paved.
Brown agrees that it does make sense in areas that need it. If the sewer is in bad shape, part of the road rebuild can be paid out of the sewers funds. There is some benefit to being proactive with sewers, because sewer repairs will pay for the road repair.
Duncan also reminded the council that the new budget software can generate any sort of report that any council member would like to see at any time.
Alderman Crane did want the committee to consider budgeting for a UTV for the city. This vehicle could be used as a snowblower for doing sidewalks and used for maintenance for all the parks. Crane thought of three depts. Could split the costs, between Park and Rec., Building and Grounds, and Street. Crane estimated it to be around $25,000 with some attachments. He suggested purchasing a Kubota edition. Duncan did state he can appropriate the $30,000 for this UTV into the budget.
Moved by Alderman Lavieri and seconded by Alderman Thompson to adjourn the meeting.
Motion carried.
Meeting adjourned at 8:15pm
https://www.lasalle-il.gov/sites/default/files/agendas-minutes/2022-08/6-29-22.pdf
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