City of Mt. Vernon City Council Met Feb. 1.
Here is the minutes provided by the council:
The Mt. Vernon City Council held a Regular City Council Meeting at 7:00 p.m. in the City Council Chamber at City Hall, 1100 Main Street, Mt. Vernon, Illinois via teleconference due to the Covid-19 Quarantine via GoToMeeting. The Log-In for the meeting is https://global.gotomeeting.com/join/5093999125, Call in Number: +1 (646) 749-3112, Access Code: 509- 399-125.
Mayor John Lewis called the meeting to order.
Pastor Don Evans of the West Salem Missionary Baptist Church gave the Invocation.
The Pledge of Allegiance was recited.
ROLL CALL
Roll call showed present: Council Member Joe Gliosci, Council Member Donte Moore, Council Member Mike Young, and Mayor John Lewis. Absent: Council Member Ray Botch.
PRESENTATION OF JOURNALS
The Journal for the January 19, 2021 Regular City Council Meeting was presented for approval.
Council Member Donte Moore motioned to approve the Journal as presented. Seconded by Council Member Joe Gliosci. Yeas: Gliosci, Moore, Young, and Lewis. Absent: Botch.
VISITORS/CITIZENS REQUESTS/ADDRESSES FROM THE AUDIENCE
Michael Kroeschen spoke on behalf of Lake Lease Holders on Whippoorwill Club at Jaycee Lake. He thanked the City for allowing the Lease Holders to use the Lake. As stewards of Jaycee Lake, the Whippoorwill Club invested in the property maintenance with erosion protection, road repair, tree removal and maintenance, and cleaning of the area. Kroeschen wanted to make the City Council aware of the work done by the Lake Lease Holders on Whippoorwill Club at Jaycee Lake.
APPROVAL OF CONSOLIDATED VOUCHERS FOR ACCOUNTS PAYABLE
The Consolidated Vouchers for Accounts Payable were presented to Council for approval.
Council Member Donte Moore motioned to approve the Consolidated Vouchers for Accounts Payable in the amount of $724,980.39. Seconded by Council Member Mike Young. Yeas: Gliosci, Moore, Young, and Lewis. Absent: Botch.
BIDS AND QUOTES
No bids and quotes
CITY MANAGER
City Manager Mary Ellen Bechtel requested permission for the Consent of Assignment for a Miller Lake Lease Agreement for David R. Leggans. The Consent of Assignment transfers the Lease Agreement dated October 7, 2002 between the City of Mt. Vernon, Illinois as Lessor and David R. Leggans, as Lessee, to David R. Leggans and Anna Lisa Leggans.
Council Member Mike Young motioned to approve the Consent of Assignment for a Miller Lake Lease Agreement for David R. Leggans. Seconded by Council Member Donte Moore. Yeas: Gliosci, Moore, Young, and Lewis. Absent: Botch.
City Manager Mary Ellen Bechtel presented the Eight Month Budget Review for the General Corporate, and Water & Sewer Funds.
Finance Director Steve Tate distributed the budget summary chart for the General Corporate Fund, Public Utilities Water Fund, and the Public Utilities Sewer Fund.
Tate explained that the revenue amounts do not include the Cures Grant Revenue from the State of Illinois ($630,222), sales of surplus vehicles and equipment ($175,337), and land sales ($81,100). These are one- time revenues ($886,659). He reported that the expenses show that the City is under in salaries and wages in the Police and Public Works Departments.
Tate reported that the Home Rule Sales Tax revenue is down 3% from last year. The 1% State Sales Tax revenue is down 1.7%. State Income Tax revenue is up 19%. Revenue from Video Gaming Tax is down 34%.
Without the one-time revenues of $886,659, the actual Operating Surplus after 8 months is $212,552. The originally budgeted Operating Surplus FY 2020-2021 is $133,560. City Manager Mary Ellen Bechtel stated that last March the City’s budget was cut $1.3 million due to possible COVID-19 effects. Tate explained that the numbers have come in better than planned due to the COVID effect.
Council Member Donte Moore asked if the decrease in the Police salaries were due to overtime or manpower issues. Bechtel replied that it was due to both. Moore asked if the new
Thrive Marijuana
Dispensary provided for an increase in revenue. Tate replied that the City receives a Cannabis Excise Tax based on per capita and Home Rule Sales Tax at around $5,000 per month.
Tate reported that in the Water Fund, Operating Surplus is currently down about $15,000. Overall, the
Water Fund is doing well.
Tate reported that in the Sewer Fund, the Fund struggles to pay its operating costs. The Sewer Fund’s revenue is under budget and the expenditures are over budget. He stated that this is mostly due to the planned 5% rate increase that was delayed due to Covid. Bechtel explained that the rate increase is still delayed because we remain under an Executive Order. Ninety days after the State lifts the Executive Order, the rate increase can be implemented. She stated that the rates need to be raised 13% to make the Fund solvent.
Bechtel reported that the four-year projections do not include possible contractual wage increases and the $15 minimum wage. Other worksheets presented were estimated Operating Fund Balance
Projections, Revenue and Expense Projections, and multi-year comparisons of various taxes.
Revenue Assumptions
1. Assuming a 1.0% increase in 2020-21 Sales and Home Rule Tax from 2019-20, plus COVID negative impact: 0% increase last 4 years.
2. Assuming a 2.1% decrease in 2020-21 State Income Tax from 2019-20 plus COVID negative impact: 0% increase last 4 years.
3. Assuming the negative impact of COVID will be as budgeted for 2020-21 and there will be no negative impact after that.
4. Assuming 10% reduction in State Income Tax by State will continue indefinitely
5. Assuming all other revenue will remain constant
Expenditure Assumptions
1. Assuming staffing levels budgeted in 2020-21 will continue through 4/30/2025
2. Assuming a 2.77% increase each year in wages (union contracts are thru 4/30/2022)
3. Assuming 4% increase each year in Self-funded Health Insurance
4. Assuming 4% increase each year in Plan F Health Insurance
5. Assuming 3% increase each year in Property Casualty Insurance
6. Assuming 5% increase each year in Work Comp Insurance
7. Assuming no reimbursements will be received from MFT Fund for Public Works labor and equipment
Assuming that we will continue to fund JCDC at 100,000 each year
Assuming that we will continue to fund DMDC at 77,000 each year
10. Assuming 2% increase each year in all other expenses 11. Assuming no transfer for Capital Items
CITY ATTORNEY
City Manager Mary Ellen Bechtel presented a Resolution Accepting a Grant from the Illinois Housing Development Authority’s Strong Communities Program. Bechtel explained the Authority will make a grant to the City of $168,000 to preserve affordable housing efforts by assisting with the rehabilitation and/or demolition of abandoned properties.
Council Member Joe Gliosci motioned to approve the Resolution Accepting a Grant from the Illinois Housing Development Authority’s Strong Communities Program. Seconded by Council Member Donte Moore. Yeas: Gliosci, Moore, Young, and Lewis. Absent: Botch.
City Manager Mary Ellen Bechtel presented a Resolution Authorizing Increase in Annual Rental for Lake Leases. Bechtel explained that the City owns property adjacent to Lake Miller and Lake Jaycee. There are multiple long-term leases with private individuals and entities. The leases provide for an increase of not more than fifty percent of the current rental now paid to be effective for five years from May 1, 2021 or until the next review date. She stated that it has been fifteen years since the last rent increase.
Council Member Donte Moore motioned to approve the Resolution Authorizing Increase in Annual Rental for Lake Leases. Seconded by Council Member Mike Young. Yeas: Gliosci, Moore, Young, and Lewis. Absent: Botch.
MAYOR
Mayor John Lewis presented for the advice and consent of the City Council, the appointments of Gregory Graves and Glinda Jackson to the Minority Affairs & Human Relations Commission as members-at-large.
Council Member Mike Young motioned to approve the appointments of Gregory Graves and Glinda Jackson to the Minority Affairs & Human Relations Commission as members-at-large. Seconded by Council Member Donte Moore. Yeas: Gliosci, Moore, Young, and Lewis. Absent: Botch.
CITY COUNCIL
No comments were heard.
VISITORS/CITIZENS REQUESTS/ADDRESSES FROM THE AUDIENCE
No comments were heard.
EXECUTIVE SESSION
No Executive Session
ADJOURNMENT
Council Member Joe Gliosci motioned to adjourn. Seconded by Council Member Donte Moore. Yeas: Gliosci, Moore, Young, and Lewis. Absent: Botch.
The meeting was adjourned at 7:37 p.m.
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