City of Mt. Vernon City Council met March 23.
Here are the minutes provided by the council:
The Mt. Vernon City Council called a Workshop Meeting for Thursday, March 23, 2023 at 4:30 p.m. at City Hall, 1100 Main Street, Council Chamber Room, 2nd Floor, Mt. Vernon, Illinois.
Due to the absence of Mayor John Lewis, Deputy City Clerk Becky Barbour called the meeting to order. The first order of business was to appoint a Mayor Pro Tem. Motion by Council Member Joe Gliosci to appoint Council Member Donte Moore as Mayor Pro Tem for today’s meeting. Seconded by Council Member Mike Young. All were in favor.
Mayor Pro Tem Donte Moore opened the meeting.
ROLL CALL
Roll call showed present: Council Member Ray Botch, Council Member Joe Gliosci, Council Member Donte Moore, and Council Member Mike Young. Absent: Mayor John Lewis
Also present: City Manager Mary Ellen Bechtel, Finance Director Stephanie Bailey, and Deputy City Clerk Becky Barbour.
VISITORS/CITIZEN’S REQUESTS/ADDRESSES FROM THE AUDIENCE
No visitors spoke at the meeting.
REVIEW AND DISCUSSION ON THE PROPOSED 2023-2024 BUDGET
City Manager Mary Ellen Bechtel stated that everyone has received a copy of the proposed 2023-24 Budget. She stated that this a draft and it will be finalized, and the Council will be voting on it at the April 17, 2023 Council Meeting. City Manager Bechtel turned the meeting over to Finance Director Stephanie Bailey.
GENERAL CORPORATE FUND
Finance Director Bailey stated that the beginning fund working balance going into 2023-24 is estimated to be $12,340,640. We are projecting $19,451,284 of revenue and $20,374,394 in expenditures to leave a working fund balance of $11,665,746. City Manager Bechtel stated that this budget includes new personnel and raises. This fund balance is approximately 7.4 months of operations. All of the revenues and expenses are line items in the report and are broken down by departments.
MOTOR FUEL TAX
The Motor Fuel Tax is projected with a working fund balance of $323,709 for 2024. City Manager Bechtel spoke about the capital projects and expenditures. The expenditures include street overlays, street patching materials, and in house overlays. City Manager Bechtel spoke about specific street repairs that are included in the budget.
SANITATION FUND
The Sanitation Fund is estimated to end April 30, 2023 with $5,039. The Council had discussed last year that the City should look at this fund each year regarding raising the rates. The City needs to raise the rate by $1.50 to $23.00 effective May 1, 2023. This will leave an estimated working fund balance in 2024 of $57,122. City Manager Bechtel stated that electronic recycling is budgeted for this year. There is a charge for this, and it is calculated into the budget.
AQUATIC ZOO FUND
The Aquatic Zoo Fund is projected to end with a deficit of $88,028 at the end of this budget. The working fund balance for the Aquatic Zoo is projected at a deficit of -$228,395 for 2023-2024.
City Manager Bechtel stated that the City would like to account for the Aquatic Zoo Fund in the General Corporate Fund where it is shown in the audit as a department. This would eliminate this fund and would eliminate making the transfer from General Corporate to Aquatic Zoo. It would have a department code and a report would still be available showing expenses and revenues.
TOURISM FUND
City Manager Bechtel explained that 2% of the hotel/motel tax goes into this fund. 3% goes into General Corporate plus the $2.00 per night Room Tax (Safety Tax) goes into General Corporate. She stated that wages, health care, advertising, Christmas decorations, fireworks, festival sponsorships, postage, billboards and brochures are included in expenses within this fund. There is included in this budget an estimated $500,000 of the working fund capital for improvements to Potomac Boulevard. It is projected to end with a fund balance next year of $57,958.
CDAP FUND
City Manager Bechtel stated that $650,000 is being budgeted in and out of the CDAP fund. This is a year that the City can apply for the Housing Rehab Grant and Crosswalk will apply for the grant and administer it. The money will come to the City and the City will pay it out to Crosswalk. No city money is budgeted for this. It all comes from the grant.
QUALITY OF LIFE/ECONOMIC DEVELOPMENT FUND
This is the fund that the construction of the new Police Department is being paid from. This is also the fund that includes the Quality-of-Life Grants that the City receives. That includes the Outdoor Spaces Grant for $429,189 for Veterans Park, $78,400 for the Jaycee Lake Grant, $2,000,753 from ARPA to go toward the new Police Department, and the Community Facilities Grant of $1,000,000. $4.9 million has been paid on the Police Department and there is $5.1 million left to be paid out. This fund has a proposed working fund ending balance of $1,275,574.
HOME RULE SALES TAX FUND
City Manager Bechtel stated that the Home Rule Sales Tax Fund will have a projected working fund balance at the end of 2024 of $326,248. Included are estimated expenses of $500,000 for the demolition of the Jefferson Memorial Hospital, $275,000 for vehicle leasing, $100,000 for sidewalk repair and replacement, $250,000 for a small bucket truck, $35,000 for gunshot recognition, $143,145 for new squad cars, $300,000 for new dump trucks, and $3,760,377 for new construction – South 44th Street connectors.
PENSION SALES TAX FUND
The Pension Sales Tax Fund is estimated to have $1,932,069 on April 30, 2024. The increase in the City’s sales tax has helped this Fund.
GENERAL CORPORATE CAPITAL PROJECTS FUND
General Corporate Capital Projects Fund is projected to have a total working fund balance of $125,133 at the end of April, 2024. This budget includes refurbishing of a fire truck at an estimated cost of $300,000, 11th & Casey Storm Project at an estimated cost of $300,000, the Public Works facility at an estimated cost of $2.5 million.
HEALTH INSURANCE FUND
The City maintains a self-insured Health Insurance Fund. The City did change providers this year from Health Link to Cigna. The City’s attachment point is $60,000 per employee. The City is responsible for the medical bills up to $60,000, after that the catastrophic insurance takes effect. Page 7 of 15
City Council Budget Workshop Thursday, March 23, 2023
WATER FUND
The Water Fund is projected to have a $653,990 operating surplus at the end of 2024 which includes the rate increase from Rend Lake. City Manager Bechtel stated that the City is not proposing an increase in the water rates. $82,400 has been budgeted for Harlan Road waterline, the water towers will need to be inspected and those expenses are budgeted for this year. EPA Phase I is budgeted at $121,000.00. EPA Phase 4 is budgeted at $3,235,000 and Phase 2 L&N Tower is budgeted at 2,180,000.
SEWER FUND
City Manager Bechtel stated that there is $215,963 estimated in working fund capital after $332,000 is transferred from the water fund to the sewer fund. Without that transfer, the sewer fund would be at a deficit. To keep from transferring money from water fund, the City would need to raise the rates. The City raised sewer rates 5% last year and had plans to raise another 5% for operations. Some of the estimated expenses included in this fund are the Midtown survey at a total cost is $1,640,990.00 to be paid out, $100,000 for manhole lining, $12,000 for easement clearing, Olive and Pavey sewer line at $125,000, $500,000 for Western Gardens, CDAP sewer project is $797,000.00 (the City will get $450,000, the balance comes out of the City’s budget), manhole relining is $200,000, flow meters to be purchased at $50,000, in-house materials for sewer is $100,000, and Summersville sewer lining at $950,000.
DOWNTOWN TIF FUND
City Manager Bechtel gave a report regarding for the Downtown TIF fund which is projected at $3,794,229. This is the net minus what was purchased and took off of the tax rolls. The Post Office rent is $340,938 for nine years. Expenses are projected to the end of the TIF – nine years. This is the City’s commitment for the next nine years. Total expenses to the end of the TIF is $1,202,848 and the net for development is $2,932,319. This leaves $2.3 million over nine years if the City can obtain a 5% interest rate. There is a total proposed operating balance of $34,007.
INDUSTRIAL PARK CONSERVATION AREA (WESTSIDE) TIF
The City is budgeting a working fund balance of $1,152. There is enough money to pay off the debt against this fund and the City would like to pay that off. There is money in this fund to put internet into the Chesley Industrial Park. That infrastructure has not been put in place yet.
RTE 15/I-57 (EASTSIDE) TIF
The Route 15/I-57 (Eastside) TIF is the account that has the Drury Inn in it. The projected working fund balance at the end of 2024 is $512.
A four-year projection report was given. This shows a 5% increase each year. City Manager Mary Ellen Bechtel stated that the City’s expenses did go up approximately 15% from a year ago to this year in the General Fund.
LOANS
The next worksheet shows the loan balances. This is for all of the City’s outstanding debt. The grand total for all loans for 2024 is $5,666,074. This shows IEPA projects that are being worked on but not financed yet. The rate will be determined July 1. This year, the City will pay off the early retirement loan, the water meter loan, Weedy Acres loan, and the AMI loan.
City Council Budget Workshop Thursday, March 23, 2023
City Manager Bechtel stated that the Cannabis Tax will be moved to General Corporate. Next year the Aquatic Zoo will be moved to General Corporate. City Manager Bechtel asked that the Council look over the budget. There is time to look at the budget and get it finalized at the April 17, 2023 council meeting.
EXECUTIVE SESSION
No Executive Session was held.
ADJOURNMENT
Council Member Joe Gliosci motioned to adjourn. Seconded by Council Member Mike Young. Yeas: Botch, Gliosci, Moore, and Young. Absent: Lewis.
The meeting was adjourned at 5:55 p.m.
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