North Egypt News

City of Mt. Vernon City Council met April 4.

Here are the minutes provided by the council:

The Mt. Vernon City Council called a Special Meeting for Thursday, April 4, 2024 at 1:00 p.m. at City Hall, 1100 Main Street, Council Chamber Room, 2nd Floor, Mt. Vernon, Illinois.

Mayor John Lewis opened the meeting.

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.

Also present: City Manager Mary Ellen Bechtel, Finance Director Stephanie Bailey, Assistant City Manager Nathan McKenna, 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 2024-2025 BUDGET

City Manager Mary Ellen Bechtel turned the meeting over to Finance Director Stephanie Bailey. She presented an Annual Budget Summary of All Funds.

Finance Director Bailey explained that the City should have $116,069,173 in revenues with $93,834,356 in expenditures and that would leave a fund balance of $22,234,817. This is if all revenues and expenditures are met which they typically are not.

This next page shows what there is at end of the year with each fund broke out. City Manager Mary Ellen Bechtel stated that this does not include this last month, but those final numbers won’t be available until the audit is completed.

GENERAL CORPORATE FUND

The General Corporate Fund 01 has been combined with the Aquatic Zoo Fund. Together, they comprise the major operating fund of the City. The General Corporate Fund is expected to end 2024- 2025 with an operating surplus of $11,475,306. This surplus is attributable to operating revenues expected to be $22,061,112 over budget and operating expenses are expected to be right at budgeted amount of $20,775,001. $3,400,000 loaned to Fund 73 Rt 15/I-57 TIF Fund for large city projects.

The General Corporate working fund balance for Operations projected on April 30, 2025 is $20,211,422 with total expenditures for Operations projected at $18,910,023. The General Corporate Fund for the year ended April 30, 2025, after $3,400,000 dollar transfer, IMRF, Medicare, FICA, Police and Fire Pensions are transferred is expected to maintain a $11,475,306 or 6.6 months' worth of operating expenditures in our operating working fund balance.

Finance Director Bailey stated next is a listing of the 2025 projects that have been compiled.

Bailey stated that $1.2 million dollars has been removed from the General Corporate Fund. This has been reduced in anticipation of losing the 1% sales tax on groceries. There was additional discussion regarding the 1% grocery tax that the Governor is proposing eliminating in the budget.

City Manager Mary Ellen Bechtel also stated that there are some development agreements that have been completed. The City won’t be paying any more benefit on the development agreements for Holiday Inn, Culver’s, Mach I and Fujiyama. This adds about $200,000.00 to the budget. The continuing agreements are for Kohls, Drury Inn, Rural King and Ashley Outlet.

MOTOR FUEL TAX

Bailey stated that the Motor Fuel Tax Budget has the FAU money anticipated for the Fairfield Road project, oil and chip and overlay. City Manager Bechtel stated that the list of projects shows which roads that this will cover.

SANITATION FUND

Bailey explained that Sanitation Fund held its own this year. Bechtel stated that there is enough money for Electronic Recycling this year.

TOURISM FUND

Bailey stated that the Tourism Fund receives 2% of the Hotel/Motel tax. The expenditures for this fund include the project for the historical exhibit of the history of the water system for the City of Mt. Vernon. The budget also includes money for a grand opening in the spring for the Downtown Park and fireworks for the Fourth of July Celebration.

CDAP FUND

Bailey explained that this fund is for the housing grant. $650,000 comes in for this grant and the City has a $20,000 match.

QUALITY OF LIFE/ECONOMIC DEVELOPMENT FUND

Bailey stated that on projects there is listed $10,982,531 of expenses. This fund is limited to expenditures that improve the quality of life of our citizens or provide economic development to our city and accounts for the 0.5% Home Rule Sales Tax started on July 1, 2012. We are projecting a total working fund balance on April 30, 2025, of $541,767 in this fund. FY 2025 the budget will include 27th Street, at $3,769,714. Planned for FY 2025 are various roads, park improvements, and design for future Rec Center. The 3% Cannabis Tax will be transferred into Quality-of-Life Fund for future city projects. Bechtel explained that some of the expenses will be covered by grants. Downtown Streetscape is a $3,000,000 grant and there is $3.6 million for road projects, of which $3.4 million is from the bonds.

HOME RULE SALES TAX FUND

Bailey stated this fund is for water/sewer projects, demolition, utilities, roads, equipment and debt. A total of $3.5 million has been budgeted for this fund. The working fund balance in this fund is projected to be $1,013,279 on April 30, 2025.

PENSION SALES TAX FUND

The Pension Sales Tax Fund is from the 0.25% Home Rule Sales Tax. This is for pension funds and is projected to be $2,496,152 on April 30, 2025 unless current rates used for calculations changes.

GENERAL CORPORATE CAPITAL PROJECTS FUND

Bailey stated this fund has $4,131,179 for capital, infrastructure expenditures and equipment, including station alerting upgrade, surveillance cameras, vehicles, trailers, refurbishing a firetruck, and other various capital improvements along with related debt service expenses during 2024-2025. This fund is projected to have a total working fund balance of $749,499 on April 30, 2025.

HEALTH INSURANCE FUND

Bailey stated that the Health Insurance Fund continues to grow a little every year. It is considered an “Internal Service Fund.” She stated that there is projected to be $3,042,090 on April 30, 2025 to cover potential claims, however you cannot plan for a catastrophic year.

CDBG GRANT FUND

The next summary is an anticipated CDBG Grant. The City has incorporated it into its own fund because it has to be a standalone fund. It is for a sewer project. This is relining in the south part of town.

COMMUNITY INVESTMENT GRANT FUND

This also has to be in a standalone fund. It is for a $3.2 million dollar grant for sewer relining.

WATER FUND

The Water Fund operates the water distribution system of the City. We are proposing $8.421 million of capital expenses, infrastructure improvements and related debt service expenses in the Water Fund for 2024-2025. It is projected to have an operating surplus of $1,534,974 for 2024-25.

SEWER FUND

The Sewer Fund operates the sanitary sewer systems of the City. The Sewer Fund is projected to have a fund balance of $603,752 for 2024-25, a working fund balance for operations of $436,730 on April 30, 2025 and total expenditures for operations of $4.022. million.

DOWNTOWN TIF FUND

Bailey stated the loan for the Broadway Commons will come from the Downtown TIF Fund.

INDUSTRIAL PARK CONSERVATION AREA (WESTSIDE) TIF

Bailey stated that other than the obligations that come out of this fund, anything left over in this fund will be transferred over to the Route 15/I-57 TIF to cover the payment back to general corporate.

RTE 15/I-57 (EASTSIDE) TIF

This fund shows the $3.4 million for 44th Street.

EXECUTIVE SESSION

No Executive Session was held.

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 2:19 p.m.

https://www.mtvernon.com/media/ppqfkgiq/april-4-2024-special-council-meeting.pdf