City Council Budget Workshop
April 3, 2008
The Mt. Vernon City Council met for a Budget Workshop Meeting on Thursday, April 3, 2008 at 4:00 p.m. in the Council Chambers at City Hall.
Mayor Mary Jane Chesley called the Workshop Meeting to order and announced that the purpose of this meeting is for discussion of the 2008/2009 Budget. Each department will be reviewed before the Budget is approved.
Roll call showed present: Council Member Holt, Council Member Wood and Mayor Chesley. Council Member Walker came in at 4:20 p.m. Absent: Council Member Burgan.
Finance Director Merle Hollmann began by saying that each department had worked on their budgets for next FY and then he had gone over the worksheets with the department heads. The sheets given each Council Member are the ones for final discussion by Council. Mr. Hollmann stated that this is a cash basis budget.
PUBLIC UTILITIES
Alan Troutt Public Utilities Director and Steve McCoy Assistant Director were present to go over their budget submitted. Mr. Hollmann directed everyone to the PU Revenue page to begin with. He explained that the first item regarding taxes, IMRF, FICA, Medicare is a solid number and we have no control over those numbers. The user fees were also discussed. Mr. Hollmann stated that the figures already had the increases to the villages, etc. included.
Discussion was held regarding the purchase of a new jet truck, the de-watering project at the Sewer Treatment Plant and loan proceeds. EMC stated that they would waive $100,000.00 of the fee if we would give them another 5-year contract. That would put the de-watering project at $868,921.00, which could be put on a 2 1/2% EPA Loan. City Manager Ron Neibert stated that the current shortfall needs to be made up somehow. The amount is $1.5 million. The shortfall comes from paying out more for water then we collect. The water rates for the villages and General Tire have been raised, but not to residential customers. This is where the annual shortfall comes from. We are taking in less
than we are paying out. Rend Lake raised their rates to us by 21% recently and we did not raise our rates to cover the raise.
Merle Hollmann spoke regarding the new Jet Truck purchase and the Dewatering Project for totals of $1,088,921.00.
Discussion was held regarding the expenditures for this department. The amount of overtime salaries was very high and it was explained that this was an unusual amount of leaks having to be repaired. There were almost three times the leaks as last year, some 304 or more leaks. The gas and oil costs are not figured yet. The water purchases from Rend Lake are high due to the raise they passed on to us. The cost of the sewer TV inspections is high. The City was going to purchase a camera, but it did not come about, so we pay someone else to come in and do the TV inspections. The purchase of a new pick-up truck was discussed for the Assistant Superintendent. The purchase of a new Jet Truck was discussed. Capital Improvements were discussed. A portable pump for Lift station #14, lift station # 14 force main, rebuild Wagner Road Lift Station, gravity sewer under the new interchange, water main replacement and the dewatering project. The GOB Bonds were discussed. They were paid off in 2007. Discussion was held regarding the financing of Lift Station #15 and the Dewatering Project and the loans from EPA that could be used for these projects. Financing of the Jet Truck was discussed.
HUMAN RESOURCES
Mary Jo Pemberton was present for discussion of the Human Resources Budget. Merle Hollmann, Finance Director stated that this is a no revenue department. Mr. Hollmann stated that the salary for the department heads is not included in any of the budget papers yet, they will not be decided until the contracts are finished. Mr. Hollmann stated that the fuel and oil amounts are not posted as yet and vehicle repairs due to the Vehicle Maintenance department not having the figures yet. Mr. Hollmann stated that there is not much of a change in this budget.
CITY TREASURER
City Treasurer Doris Stover was present to discuss her budget. Merle Hollmann stated that the amount for the publication of the Annual Report was high this past year, which caused her to have a deficit in the fund. The Treasurer put in to go to Illinois Municipal League this next year so that amount was added in this year. The Performance Bond amount was put in this year for the election in April 2009. These increases will take her budget to 115% difference.
TOURISM
Mrs. Bonnie Jerdon was present to discuss her budget. Finance Director Merle Hollmann stated that this is a stand-alone department, meaning that they function on their own funds from special revenues. Mr. Hollmann stated that Tourism has been carrying a working fund balance for a few years. The Hotel/Motel tax is at 5% plus $1. a night charge. Mr. Hollmann stated that 3% of the 5% goes right back into the fund the rest goes into the General Corporate Fund. Tourism also gets Grant Funds from different grants. The Convention and Visitors Grant is $60,000.00 plus with a 50% match. The Chamber of Commerce pays rent for their offices at $4,800.00 per year. The Tourism Department pays the utilities for all of the building. The conference room is used most nights a week, but there is no income from that usage. The expenses for Tourism are a 9.1% IMRF cost. They will be replacing several Christmas Lights for the City decorating this year at the cost of $12,000.00. The roof on the building is in need of replacing this year for a cost of $ 60,000.00. A new parking lot North of the building for $12,000.00 materials only is an expense. Work on the sidewalks in the amount of $150,000.00 is on schedule for this year also. Discussion was held regarding the sidewalk projects past and future. The Trail Grant Match was discussed. The possibility of raising the Hotel/Motel Tax was discussed. Another 1% Hotel Motel Tax would bring in $130,000.00.
ADJOURNMENT
Mayor Mary Jane Chesley stated that at this time she would adjourn this Workshop Meeting of the City Council as she and Council Member Holt have to go to other meetings at 6:00 p.m. Meeting adjourned at 5:53 p.m.