City Council Workshop Meeting
March 30,2006
The Mt. Vernon City Council held a Workshop meeting on Thursday, April 30, 2006 at 5:00 p.m. in the Council Chambers at City Hall, 1100 Main Street, Mt. Vernon, Illinois.
The purpose of this meeting was for discussion of the 2006/2007 Annual Budget.
Mrs. Mary Jo Pemberton, as Acting City Clerk called the Workshop Meeting to order and announced that the first order of business was to appoint a Mayor Pro Tem and that the floor was open for nominations for a Mayor Pro Tem. Motion by Council Member David E. Keen to nominate Council Member John Howard as Mayor Pro Tem for this Workshop Meeting. Second by Council Member Mike Walker. Yeas: Howard, Keen and Walker. Absent: Heck.
Mayor Pro Tem John Howard called the Workshop Meeting to order. Roll call showed present: Council Member John Howard, Council Member David E. Keen and Council Member Mike Walker. Absent: Council Member Ricky D. Heck.
City Manager Roy L. Payne began discussion on the Revenue Projections for the year. Mr. Payne stated that as a conservative figure, there could be ¾ million dollars revenue lost due to the reduced wages at General Tire. Mr. Payne stated that the City would have a Working Fund Balance at the end of April of 2005 of $1.7 million. Mr. Payne stated that these were rough figures. Finance Director Merle Hollmann stated that the biggest part of the figures is the Sales Tax and the Home Rule Tax. Mr. Hollmann stated that they are assuming a 7.5% decrease in the Sales Tax, or $350,000.00 and a 7.5% decrease in the Home Rule Tax, which would be $240,000.00.
Council Member Ricky D. Heck entered the meeting at 5:10 p.m.
Finance Director Merle Hollmann stated that General Corporate total revenue is looking like about $12 million dollars. City Manager Roy L. Payne stated that they tried to build a comfortable cushion in for the General Tire cuts. In April 2006 the estimated Working Fund Balance would be $1.7 million dollars.
Finance Director Merle Hollmann stated that we will be borrowing $387,000.00 for the fire trucks and the salt dome. The City needs to borrow funds to make it not show up as available revenue per Finance Director Merle Hollmann. Mr. Hollmann stated that originally we considered borrowing that amount for ten years. Now a five-year term would be realistic. Mr. Payne stated that these are preliminary figures and estimates and they will not be firmed up until later meetings.
Discussion was held regarding the Human Resources Budget. Finance Director Merle Hollmann stated that no department heads have been scheduled raise amounts and the employees have been given the amounts in the contracts for next year. Mr. Hollmann went over the other pay benefits on the budget.
Mr. Hollmann went through the other line items of the budget stating that each department budget will be different. Human Resources Department has been given more travel and schooling funds. Mr. Payne stated that this is necessary in this department to keep up with the new laws and ins and outs of negotiating and personnel information. Mr. Hollmann stated that the funds for gas and motor fuels, etc. has been increased because of the high costs of these items so far this year. Mrs. Pemberton spoke regarding an online testing program available for employees and the costs for them. She stated that this would be good to have to keep current on employee’s abilities for different positions.
Mr. Hollmann stated that the next department is SSA#1, Downtown Development Corporation. Present for this discussion was Cyndy Mitchell, Jay Koch and Joanne Joy of the corporation. Mr. Koch spoke regarding the purchase, demolition and removal of the old Mt. Vernon Motel. Mr. Koch handed out a letter regarding this issue. The letter stated that the estimated cost would be approximately $80,000.00 for the demolition and removal of the buildings. This also includes the abatement of the asbestos. Mr. Koch stated that the City Council approved the purchase of the buildings for $85,000.00 on March 20, 2006. Mr. Koch stated that this is a number one priority of the Board and it will benefit both the downtown area and the community.
Finance Director Merle Hollmann spoke regarding the revenues and expenses for the DMDC and SSA#1. Mr. Hollmann went through the revenue summary for DMDC. Mr. Koch gave a hand out for an ITEP Main Street Matching Grant request for $200,000.00. This is for the streetscape project. There would be a 20% match or $50,000.00 and DMDC is asking the City to approve the funding of the match.
Finance Director Merle Hollmann spoke regarding the expenses for DMDC & SSA#1. He stated that they run much like other departments as far as salaries and benefits, etc. The other expenses are in line with the past expenses. Mr. Koch stated that the sale of the Register News Building would help although there will be no rental income from this building. Discussion was held regarding a possible TIF District for the downtown area. Mr. Koch spoke regarding recruitment for the downtown area. Travel and training was discussed. The need for extra training on the Main Street Programs will be needed and travel is involved in this venture. Mr. Hollmann stated that all in all DMDC’s budget is in line with the past few years. Mr. Hollmann stated that he would put together a summary of the money and the needs to compare before Council makes a final decision.
The Mayor and Council Budget was reviewed at this time. Salaries were left the same. City Manager Roy L. Payne went through some of the expenses and explained them.
City Manager Roy L. Payne stated that in the City Manager’s budget, the salaries stay the same for now also. The fringe benefits stay basically the same with slight increases. The travel was increased to allow for more seminars and conferences. Discussion was held regarding an intern for next year.
The next budget discussed was Finance Administration. City Manager Roy L. Payne stated that there would be a retirement in Merle’s budget next year. Jeanette Johnson will be retiring this year’s budget so her retirement package is built in to this budget. Finance Director Merle Hollmann stated that Penny’s salary had been split 50/50 from Administration and Billing Services. In this budget her salary will be 75% out of Administration. The other pay benefits have been adjusted to reflect these changes. The travel funds are increased for this department also.
The Finance Billing Services department is the next budget to review. Discussion was held regarding the possible retirement of any other employees. Finance Director Merle Hollmann stated that Penny is thinking about going out in December and possibly Virginia about the same time, but nothing for sure. The Billing Services budget was raised to reflect a new employee and benefits to take Jeanette’s place.
City Manager Roy L. Payne spoke regarding a handout he gave regarding the street repair requests and a 5-year plan plus the oil and chip streets. MFT Funds were discussed.
Mr. Payne also handed out the by-laws for the new Economic Development entity.
Discussion was held regarding holding 3 more budget meetings, the tentative budget and final approval of the budget and when to have the meetings.
Motion by Council Member Ricky D. Heck to adjourn this Budget Workshop Meeting. Second by Council Member John Howard. Yeas: Heck, Howard, Keen and Walker.