Special City Council Meeting
April 30, 2008
The Mt. Vernon City Council held a Special City Council Meeting on Thursday, April 30, 2008, at 4:00 p.m. in the Council Chambers at City Hall, 1100 Main Street, Mt. Vernon, Illinois.
Mayor Mary Jane Chesley called the Special City Council Meeting to order. Roll call showed present: Council Member Mary Burgan, Council Member Shirilyn Holt, Council Member Mike Walker, Council Member David Wood and Mayor Mary Jane Chesley.
City Clerk Jackie Sharp read the “Notice of Special City Council Meeting”. The notice read as follows: “ I, Mayor Mary Jane Chesley, hereby call a Special Meeting of the Mt. Vernon City Council to be held on Thursday, April 30, 2008, at 4:00 p.m. in the Council Chambers at City Hall, 1100 Main Street, Mt. Vernon, Illinois. The purpose of this meeting is for such action Council may desire on the following matter:
1. Public Hearing of the Tentative Annual Budget 2008/2009
2. Approval of the 2008/2009 Annual Budget
3. An Ordinance regulating City water/sewer and trash rates
Dated in Mt. Vernon, Illinois on this 17th day of April, 2008.
Signed Mary Jane Chesley, Mayor
City Manager Ron Neibert stated that Council had worked on this budget for several weeks. Mr. Neibert turned the meeting over to Finance Director Merle Hollmann to discuss the Proposed Budget. Mr. Hollmann presented a graph showing how much the General Corp Fund has had to finance the Public Utilities Fund over the last few years. Mr. Hollmann stated that it now up to nearly $2,000,000.00 per year. Mr. Hollmann stated that this is one of the largest items in this Budget. Rend Lake has raised their rate to Mt. Vernon by 20% which in turn the City raised to their villages and large users. Mr. Hollmann stated that the City in turn, needs to raise their water and sewer rates to residential consumers
by 12% . Mr. Hollmann stated that the City also needs to raise their trash service from $4.26 to $8.86 to meet the new contract that the City just signed with Midwest Waste. The sanitation department should be a stand-alone department, meaning it should take in the same as it pays out. Mr. Hollmann discussed the Ending Fund Balance for the General Corporate Fund for next year. He stated that it should be at least enough to cover two months of payments. Mr. Hollmann discussed the amount of water lost the last two years. The City is going to be actively tracking losses this year to see if we can identify how and where so much water is lost. We pay for a lot more water than we are able to bill out, meaning it is being lost somewhere.
Mayor Mary Jane Chesley spoke regarding the hours of work that have been put into this budget over the past two months or so. Mayor Chesley stated that all of the departments have worked hard and tried to balance and cut on each of their budgets to help the process.
City Manager Ron Neibert stated that this budget represents the general budgets of each department and also the General Capital Expenses for each department. Mr. Neibert named over several of the Capital Requests for the departments. A lot of the obligation for the street improvements can be passed on and done under the MFT Funds. Mr. Neibert spoke regarding the $900,000.00 sewer improvement project by the interchange. Mr. Neibert stated that the ending amount would be a $27,370,000.00 budget. Mr. Neibert spoke regarding the self-insurance fund.
Mayor Mary Jane Chesley stated that Council has reviewed this proposed budget and gone over it and it is not actually a finished budget. Council will be doing quarterly reviews on the budget to stay on top of all the expenses and revenues. Keeping a sharp eye on the budget as we go along. We are going to look at the budget like a businessperson, not as politicians. It is evident the water and sewer funds have not been increased since 2003 and they are suffering because of that. The City cannot keep subsidizing the Public Utilities Fund. The General Corporate Fund needs to be full in order for the City to grow and support the new Interchange and its infrastructure needed. Mayor Chesley stated that the lost water really needs to be inspected and found to cure that problem.
Council Member David Wood stated that looking at the budget from a business point of view, there are a few things to look at. The General Corporate funding the loss in the Sanitation and Public Utilities Funds is a huge problem. Previous Councils have not looked at this or chose to ignore the problem that has grown into a large amount. The previous administration has chosen not to increase rates, as it is an unpopular venture. It is a must do item now to recoup some of the lost funds. Mr. Wood stated that 3% raises from time to time before would have made the 12% increase now unnecessary.
Council Member Mary Burgan stated that the City subsidizing the trash pick up amazed her. It is a simple process, they charge the City a certain amount and the City should turn it around and charge each customer appropriately. Mrs. Burgan spoke about a recycling program.
Council Member Shirilyn Holt stated that this is one job Council has to do, to try to get things in line. Spending and revenues need to be looked at carefully. No one wants an increase in rates, but the City cannot continue to pay out and not get enough in return. Mrs. Holt stated that she is glad they will stay on top of the budget quarterly.
Mayor Mary Jane Chesley stated that the increase to her own water bill would be $5.96 a month. Council Member Wood stated that the 2 large pick ups a year for clean up week will be a lot of help.
Council Member Mike Walker stated that he doesn’t look at the past Councils as passing the job down to the present Council. He thanked them for subsidizing his bill for so many years. However, it has gotten to the point that it cannot be done any longer. Mr. Walker stated that he looks forward to a balanced budget in each line item in each department. Holding the lines for increases will reward the City down the road.
Council Member David Wood stated that the rate increases alone will not solve the problems forever. The Interchange Project costs are there to be dealt with. The City has to be interested in the City growth. Mr. Wood spoke regarding the debt services.
Motion by Council Member Mary Burgan to Suspend the rules to Vote on an Ordinance. Second by Council Member Shirilyn Holt. Yeas: Burgan, Holt, Walker, Wood and Chesley. Motion by Council Member Mary Burgan to Adopt Ordinance # 2008-16, an Ordinance Adopting the City of Mt. Vernon 2008/2009 Annual Budget. Second by Council Member David Wood. Yeas: Burgan, Holt, Walker, Wood and Chesley.
Motion by Council Member Mike Walker to Suspend the Rules to Vote on an Ordinance. Second by Council Member Shirilyn Holt. Yeas: Burgan, Holt, Walker, Wood and Chesley. Motion by Council Member Mike Walker to Adopt Ordinance # 2008-17, an Ordinance Regulating City Water/Sewer and Trash Rates. Second by Council Member Shirilyn Holt. Yeas: Burgan, Holt, Walker, Wood and Chesley.
Motion by Council Member David Wood to adjourn this City Council Special Meeting. Second by Council Member Shirilyn Holt. Yeas: Burgan, Holt, Walker, Wood and Chesley.