City of Mt. Vernon, Illinois
City Council Workshop Meeting
March 26, 2009
The Mt. Vernon City Council met for a Workshop Meeting on Thursday, March 26, 2009 at 5:30 p.m. in the Council Chambers at City Hall, 1100 Main Street, Mt. Vernon, Illinois
The purpose of this Workshop Meeting was for discussion of the 2009/2010 Annual Budget.
Mayor Mary Jane Chesley called the Workshop Meeting to order. Roll call showed present: Council Member Mary Burgan, Council Member Shirilyn Holt, Council Member David Wood and Mayor Mary Jane Chesley. Absent: Council Member Mike Walker.
Finance Director Merle Hollmann stated that the first department to discuss would be the Engineering / Inspection Department. City Engineer John Porter was in attendance to present his budget. Finance Director Hollmann stated that the Engineering and Inspection Departments are both under direction of City Engineer John Porter. Mr. Hollmann explained the columns in the budget worksheets, the current expenses, the proposed expenses and the increase/ decrease amounts. The Engineering Department was presented first. Mr. Hollmann stated that the salaries of any department heads had not been changed as yet because we do not know what the salaries will be. The non-union employees have been figured at the 3% & 1% increases like the union employees. Mr. Hollmann spoke regarding the self-insurance and the IMRF rates. Mr. Hollmann stated that IMRF lost a lot of money and they would be phasing in 10% over a period of time. The current rate is 8.24% Mr. Hollmann is using an estimated blended amount of 8.51%. The employee rate for IMRF is 4.5%. We have estimated that the insurance will have a 16% increase in January. Mr. Hollmann stated that the unemployment rate is down to 2.7%.
Mr. Hollmann spoke regarding contract engineering. Since Matt is gone, John may need some contract engineering help. Mr. Hollmann spoke regarding travel
& meals. John Porter keeps up his Engineering classes and seminars, so travel is needed for the classes and licenses.
Demolition costs were discussed. City Manager Ron Neibert stated that demolition costs were cut out last year and he is hopeful the City will be able to reinstate the work this year. $50,000.00 was put in the budget for this in Engineering. Council Member Wood asked how many buildings could be demolished with this amount. City Engineer John Porter stated that the $50,000.00 would do 12 to 15 buildings.
Finance Director Merle Hollmann stated that MFT Funds and fuels, repairs and oils cannot be totaled at this time until the Equipment Maintenance Director figures his numbers and lets everyone know what the charges will be. Mr. Hollmann discussed non-capital equipment. A computer, GIS software and a data collector are on the capital expense list. Mayor Chesley asked how many vehicles the Engineering / Inspection departments have. Mr. Hollmann stated that they have 3 vehicles.
Finance Director Merle Hollmann stated that there was no extra help included in next year’s budget. The departments have been using Kenna for half a day; then she goes to the billing services department.
Finance Director Merle Hollmann stated that the Engineering Department came in under budget this year by $25,983.00.
Finance Director Merle Hollmann presented the Inspection Department budget next. Since the two departments will be together next year, this budget shows the 08/09 figures. The Inspection Department came in under budget this year.
The figures for the summer workers were discussed. They are the weed cutters that are used for the summer work. There is one Supervisor and three workers times 13 weeks. All of this has been put into the Engineering/Inspection combined budget for next year.
Finance Director Merle Hollmann stated that this is a pretty simple budget. Doris’ salary is the same as always. The Treasurer is not covered by insurance. Doris has asked for enough travel to go to Municipal League in Chicago this year, as she has not been in several years. In this budget, there is the Performance Bond for her position; this is due right after the election. He stated that he is looking at IMRF for the Bonds. This could save some money. The Treasurer came in under budget again. Mr. Hollmann explained each column in the budget to Council, so they could know how the figures came out.
Finance Director Merle Hollmann stated that again there are no department head salaries in this budget. Mr. Hollmann stated that health insurance is a large item in every budget. Mayor Mary Jane Chesley asked about the travel expenses. Human Resources did not use all of their travel expenses due to cut backs. The new budget is the same amount requested. Mayor Chesley asked about the postage increases. Mr. Hollmann stated that the postage is going to go up by $.02 so the increase has been added in to the budget figures. Mr. Hollmann stated that again the motor fuels, oils and repairs have not been figured for the new year until Equipment Supervisor Mike Shannon comes up with figures for everyone. Mrs. Pemberton stated that her subscription-membership fees are up for next year. She stated that some of the memberships are very valuable to her office for webinars and magazines. Mrs. Pemberton stated that they take advantage of a lot of free webinars also. Mr. Hollmann stated that the Human Resources Budget is in under budget by $2,266. this year.
Finance Director Merle Hollmann presented the City Clerk’s budget. He reminded Council that the City Clerk would get a pay increase to $32,500. beginning May 1. Council Member Mary Burgin asked about the overtime. Jackie explained that when she is off work the Administrative Assistant would have to do the Council Meeting or other meetings required. She is either paid overtime for that or she can take comp time in lieu of money. Merle Hollmann explained that employees are allowed to build up to 30 hours comp time at the discretion of the department head in non-union departments. The Clerk’s insurance is built into the General Corporate Fund as the insurance was taken away from the Clerk, but Jackie is covered as a retiree. Under travel, the Clerk has asked to go to both Municipal League and the Illinois Clerks Academy. She hasn’t attended either for a couple of years. The office remodel was discussed. City Manager Neibert stated that the Park employees could do this work this winter. The replacement of the air conditioner was discussed. Postage is high but there could be a lot of annexations due to the interstate overpass/ interchange. The Clerk’s Bond will be the same at the Treasurer’s Bond. All in all the Clerk’s Office came in under budget again for this year.
Matt Fauss and Dale Mick were present to represent the Public Works Department Budget. Finance Director began by speaking about the salaries and
again the department heads salaries are not raised yet. The secretary for the department may retire this coming year, so the salary there may be less. Discussion was held regarding the part-time workers for this summer. Council Member Mary Burgan asked what incentive pay was. Mr. Hollmann stated that it is when an employee works at another job that pays more, like an equipment operator, or a special trained job. Council Member Mike Walker asked about the overtime, it is an unusually low overtime year. This was because there was not much snow and ice to work this winter. Mayor Mary Jane Chesley asked about the salt spreaders. Mr. Fauss stated that these are replacements for some that we have that are worn out. Are they new or replacement ones? Council Member Mary Burgan asked about uniforms for the employees. Mr. Hollmann stated that the uniforms have always been furnished for the employees. T-shirts are issued to the part-time summer workers. Council discussed the traffic light going from incandescent to LED bulbs. Discussion was held regarding the old street sweeper. City Manager Neibert stated that they would continue to use it until it just stops. Council Member Mike Walker asked about the small tools. Why we have to buy so many each year. Aren’t they kept locked up. Mr. Fauss stated that they are but a lot of them wear out. Discussion was held regarding the oil for the patching machine. It is purchased right now from the County. The costs will be moved to the MFT Fund. Maintenance and Repairs the large projects and new projects and the milling were discussed. City Manager Neibert stated that they have requested to purchase a new milling machine for $85,550. Council Member David Wood discussed if this was feasible or should we continue to have it contracted out. Mr. Fauss stated that he has not checked on prices for this year to contract out the milling. Mr. Fauss explained why a milling machine could be helpful for even an oil and chip street. City Manager Ron Neibert stated that the machine could pay itself out in 5 years and should last up to 15 years. Finance Director Hollmann stated that the costs could possibly be turned in to MFT for reimbursement. Council Member Wood asked why some of the asphalt streets were oil and chipped last year. He stated that he had a lot of complaints on this. Dale Mick stated that the asphalts funds were low so this was the only way to do the street work last year. The O & C actually dressed up the streets and will hold until they can be asphalted again. Mr. Fauss stated that an alternative would be to mill the streets out and do an asphalt overlay again. Mr. Fauss stated that they could patch the asphalt streets until they can do an asphalt overlay. City Manager Neibert stated that to oil & chip an asphalt street is a temporary fix. Finance Director Hollmann stated that they are asking for 4 new beds for dump trucks. The old ones rust out and are no longer useful. Council Member Wood asked if the City is actually saving money by buying IDOT used vehicles or is it costing us more to keep them up. He stated that he would like to see an analysis of this. Finance Director Merle Hollmann stated that Public Works would like to purchase two used backhoes and four dump trucks.
Finance Director Merle Hollmann stated that this is a stand-alone fund. This budget is mostly a summary of revenue and expenses. Discussion was held regarding the costs of asphalt and oil & chip materials. Mayor Chesley asked if there was a list of streets to be done this year. Mr. Fauss gave Council the list. Mr. Fauss stated that the cost of oil is up by $.22 and asphalt is up to $8.00. There is a 24% raise in rock in the last 7 years. A 200% in oil costs in the last 7 years, a 124% raise in asphalt mix in the last 7 years, etc. So the costs of maintaining the streets have risen dramatically. Finance Director Hollmann stated that the revenue in is down 8% due to the amount of gas sold in the state. MFT Funds can only be used on streets. City Manager Ron Neibert stated that he recommends that we use the MFT Funds anytime we can. Council Member David Wood asked about the maintaining of Old Route 15. The City took over some of the streets and roads for a fee of $1,111,000. Mr. Fauss stated that is we asphalt 2” that would save $1 million per 8 miles. The cost of repairing Shiloh Drive from the RR to Route 15 would cost $260,000.00. It is in pretty bad shape, but until N Davidson is open it cannot be shut down. N. Davidson would take a lot of traffic off of Shiloh.
Finance Director Merle Hollmann stated that this is his office. The salaries were discussed and they will have the 3 & 1 % increases, all but Merle. Mr. Hollmann spoke regarding the software and travel for his department. He stated that Carol and Sarah each could use some training on the software. Mr. Hollmann explained the moneys from the Tourism Department, the 5% fee charged to them. That is from the administering of the Hotel/Motel tax. Mr. Hollmann stated that staff has asked for new carpeting in their office. The budget has come in $1,600 under.
Finance Director Merle Hollmann stated that the $1,500.00 was actually a retainer and is shown as Bill Howard’s salary. Bill Howard is covered under our insurance plan. The attorneys charge $135.00 per hour and have asked to go up to $140.00 per hour for 09/10. There are actually three attorneys, Bill Howard, Dave Leggans and Jeff Howard. Council Member David Wood asked if it would be less expensive to just hire a full time attorney for the City. City Manager Ron Neibert stated that he didn’t believe it would because then the attorney would have to have an office, a secretary, etc. Demolitions are included in the legal costs for next year.
City Manager Ron Neibert stated that next year they hope to streamline the budget process by the departments presenting to him and Finance Director and then they will bring everything to the Council. Council Member David Wood asked about buying new or used vehicles and equipment. He asked for a study of some kind so the figures could be looked at. Hiring extra help was discussed.
Mayor Mary Jane Chesley Asked about the property at 12th & Casey and where we stood on the purchase of the property. City Manager stated that we have made an agreement with the attorneys.
Council Member Mike Walker asked about the incentive pay and if it is per the contracts and the AISE Certifications.
Motion by Council Member Mike Walker to adjourn this Budget Workshop Meeting. Second by Council Member Shirilyn Holt. Yeas: Burgan, Holt, Walker, Wood and Chesley.