City of Mt. Vernon, Illinois

City Council Workshop Meeting

November 29, 2010

 

 

 

 The Mt. Vernon City Council met for a Workshop Meeting at 3:30 p.m. on Monday, November 29, 2010 in the City Council Chambers at City Hall, 1100 Main Street, Mt. Vernon, IL.

 

Mayor Mary Jane Chesley called the Workshop Meeting to order saying that the purpose of this meeting is for discussion of the Mid Year Budget Review.

 

Roll call showed present: Council Member Mary Burgan, Council Member Dennis McEnaney, Council Member Todd Piper, Council Member David Wood and Mayor Mary Jane Chesley.

 

Mayor Chesley turned the meeting over to City Manager Ron Neibert.  Mr. Neibert spoke regarding the General Corporate and Public Utilities Funds. He spoke regarding the General Corporate cash balance funds and working fund balances in the General Corporate funds.  Ending with the Actual Budget Surplus for the six months in the amount of $18,221.00 for the General Corp Fund. 

 

Mr. Neibert then spoke regarding the Public Utilities Fund with the Actual Budget Deficit of ($102,472.00).

 

Mr. Neibert gave a run down of the Capital Purchases, Infrastructure Expenditures and Debt Service Expenditures and methods of funding.  He then spoke regarding the Capital Purchases to be paid for with debt, and the Capital Purchases to be paid for with grants and insurance proceeds. With the Restricted Cash Balance , Revenue Received, Funded with Food and Beverage Tax, Diesel Tax and 1% Telecommunication Tax Funds also 26% of first of three Bond payments.  The balance of the Restricted Cash on 10/31/2010 is $ 414,606.13.

 

Mr. Neibert stated that the self-insurance has helped save money. Several projects have come in under budget and that has saved the City money. Several bids have come in under budget. The insurance bid came in at 3% increase instead of 16% increase as we had expected.

 

Mr. Neibert spoke regarding the Capital Budget saying that there was a $125,000.00 Grant for the Fire Department Pumper Truck and the Aerial truck should be here on December 14, 2010.

 

Discussion was held regarding the 34th Street land acquisition. The land acquisition will be discussed at an Executive Session following this Workshop Meeting according to Mr. Neibert.  Discussion was held regarding the placement of the new water tower. The water tower could be put in one of two locations.  Back where it is right now, or in the Rolland W. Lewis Industrial Centre. If put in the RWL Centre, the tower would have to be built taller because the land is lower than where the tower sits now.  If put where it is now, it would be tall enough.  The tank needs to be a 300,000 gallon tank or larger.

 

Council Member Dennis McEnaney asked for a time line sheet on the projects.  City Manager Ron Neibert stated that he would get one to the Council.

 

Finance Director Merle Hollman spoke regarding the Sales Tax Revenues. Mr. Hollmann spoke regarding the Home Rule Tax.

 

Mr. Hollmann stated that the State is five (5) months behind in sending us our 1% State Sales Tax, but it has been running a little higher than last year.

 

Mr. Hollmann went over the 1% Home Rule Tax and it has been running a little over also.

 

The State Income Tax is also running a little more, but we have not received a payment since September for May/June taxes.

 

Mr. Hollmann discussed the Food and Beverage Tax. He stated that it is running between 2.22% and 5.21% increases also.

 

Mr. Hollmann went over the 2 cent Diesel Tax.  It was down some the first 4 months, then it increased in September/October by 7.17%. Council Member David Wood stated that of all the taxes, this one is the least local tax.  Meaning it affects more persons passing through than local people.

 

Council Member Mary Burgan stated that this all sounds like good news.  Mayor Mary Jane Chesley stated that it didn’t come easy.  It took a lot of hard work to get to where we are.  Council Member David Wood stated that it does all look good, but the Fire and Police Pensions are taking us down. City Manager Ron Neibert stated that both of those pension amounts are down from last year. Mayor Mary Jane Chesley stated that the IML is working on legislation from Mayor Cole in Carbondale regarding the Fire and Police Pensions and unions. Council Member David Wood stated that this is serious because the State decides how much we have to pay in to these two unions. Council Member Todd Piper asked how these pensions are funded.  City Manager Ron Neibert stated that they are by property tax only.

 

Council Member Dennis McEnaney stated that he appreciates the financial updates. Mr. Neibert stated that the financial statements will be ready by the next Council meeting.  Council Member Wood stated that they really should have had them sooner.

 

Motion by Council Member David Wood to go into an Executive Session to discuss land acquisition. Second by Council Member Mary Burgan.  Yeas: Burgan, McEnaney, Piper, Wood and Chesley.

 

Council returned to the Workshop Meeting at 5:00 p.m.  Motion by Council Member Todd Piper to adjourn this City Council Workshop Meeting.  Second by Council Member Dennis McEnaney.  Yeas: Burgan, McEnaney, Piper, Wood and Chesley.