BUDGET WORKSHOP
Lincoln City Hall, Council Chambers
700 Broadway Street | Lincoln, Illinois
Tuesday, April 14, 2020
The Budget Workshop with the City Council of Lincoln was called to order by Mayor Seth Goodman at 5:32 p.m., with proper notice given. Attendance was noted.
Present:
Alderman Tracy Welch, Ward 1
Alderman Steve Parrott, Ward 1
Alderman Colby Leith, Ward 2
Alderman Sam Downs, Ward 2
Alderman Kevin Bateman, Ward 3
Alderman Ron Keller, Ward 3
Alderman Jeff Hoinacki, Ward 4
Alderman Kathy Horn, Ward 4
Staff Present:
City Clerk Peggy Bateman
Treasurer Chuck Conzo
Police Chief Paul Adams
Absent:
City Attorney John Hoblit
Remotely:
City Administrator Elizabeth Kavelman (joined the meeting at 6:01pm)
Fire Chief Bob Dunovsky
Streets Superintendent Walt Landers
Building and Safety Officer Wes Woodhall
Veolia Water, Andrew Bowns
Presiding:
Mayor Seth Goodman
Public Comment:
There was no one present to speak for public participation.
Mayor Goodman called on City Treasurer Conzo to begin the budget discussions. Mr. Conzo stated that he provided the council with revenue projections and that the City wouldn’t know if any changes to the budget will need to be made until 2-3 months into the fiscal year. He also reminded the council that appropriations are done in July and filed with the County Clerk. He expects changes will need to be made to the budget around that time and possibly further into the fiscal year due to the interruptions in revenue from to the Coronavirus.
There was a budget committee that was made up of Treasurer Conzo, City Administrator Kavelman, Alderman Horn and Alderman Hoinacki. Mr. Conzo said this committee worked very well and things ran smoothly.
Animal Control
Animal Control’s contract is subject to change, the county is about a month away from finalizing.
Liability Insurance
Is based off the premiums, then increased for the possibility of increases.
City Clerk
City Clerk Bateman lowered her overall budget by almost $14,000.00.
Alderman Keller asked if there was any more software updates that Clerk Bateman would need that may not be reflected in the budget, Clerk Bateman said no she thinks that is all resolved.
Treasurer Conzo also mentioned that throughout the budget there will be added lines for telephone. Those are not additional phones, just phone extensions. Chief Adams (also the City’s IT person) found that the city had outdated breakdowns of the phone extensions. Those have been sorted out and now included in each department’s budget.
City Treasurer
Treasurer Conzo separated out his budget per request from the council. He pointed out that the printing/publishing line is for the notices that he needs to publish in the paper for public hearings.
City Administrator
The vehicle allowance has been moved from the salary line to the travel and training line. However it is compensated through payroll.
Two additional phone extensions were being charged to the City Administrator in error. That will be a $656 reduction in costs.
Council members questioned the amount of paper that is being used by Administrator Kavelman. She stated that the 5th Street Road Project, which dates back to 1996, has been a huge factor. She feels
comfortable that she is caught up on this project.
The telephone line is strictly for communications. It is written in the City Administrator’s contract that the City will provide an internet connection at her residence, a city cell phone, and a tablet/iPad with a data plan.
Building and Zoning
Small increase due to salary increases.
There was talk about increasing the demolition/cleanup line to $90,000 to take care of the Kickapoo Street garage, however the council and Mr. Woodhall agreed to hold off on that project until the council has a better idea of how the revenue streams will be due to the virus. Mr. Woodhall stated that he didn’t have any structural concerns regarding the building, it’s more of just an eyesore. He had a drive by estimate of $35,000 to tear down and remove the building. However, once the building is down, the parking lot will need a lot of work to make it useable. He sees it costing overall $60,000.
Alderman Bateman asked if the idea of selling the Kickapoo Street Garage has ever been discussed by the council. He said that would eliminate the cost of tearing it down and would put it back on the tax roll. Alderman Welch said that there would be stipulations on what that property could be used for because of it being a main corridor into downtown Lincoln and Route 66. Mayor Goodman said that you cannot discriminate once you list a property and once someone purchases a property it’s theirs to do with as they wish and it would be difficult to control future uses.
Mr. Woodhall also said he raised his postage line by $250 due to the delinquent trash letters his department sends out. He spoke with City Clerk Bateman and there is an additional postage charge due that will put him approximately $200 over even that amount for this fiscal year.
Crossing Guards
This increase is for the possibility of adding an additional crossing guard.
Merit Commissions
The salary line has been cut back due to lack of use.
Commission Expenses is for testing and stayed the same because it varies from year to year.
Mayor and City Council
Shows significant reduction.
Contract Services – Legal
Labor Attorney line was reduced due to not having any contracts coming due.
Contingencies
Shows a reduction from last year.
Fire Department
Chief Dunovsky stated that he had discussions with each council member regarding his budget but if anyone had any additional questions that he would be glad to respond. There were no questions.
Treasurer Conzo mentioned there may be an additional firefighter added 3 months into the next fiscal year per council approval.
Police Department
Chief Adams added the expenditure for an additional officer if a federal grant that he has applied for is approved. That will assist with that officer’s salary. If that grant does not come through, the additional officer will not be hired.
Building and Grounds
Reduction in cost.
Alderman Bateman asked if bids could be collected for a new roof on City Hall. It loses shingles every time it storms and Chief Dunovsky found out that there is no warranty left on the roof. Mr. Bateman would just like an amount that the council can go off of if revenues will allow for the repair. He would also like to see if the Historical Preservation Committee would allow a metal roof to be installed. Alderman Hoinacki said it could be added to appropriations after the Council receives the bids.
Contract Services – General
No changes
Economic Planning and Development
Alderman Welch asked if the council would be willing to increase the 3rd Friday line to $6,000.00 to try to make the event more exciting for the community. He doesn’t anticipate using it all. There was no objection from the Council, Treasurer Conzo made the adjustment.
Streets and Alleys
Modest increases due to salary increase.
Superintendent Landers spoke to the part time employee moving to a full time employee. He said that Charity Hutchison has been working for both the Street Department and the Building & Safety Office. Both offices will split her salary and she will be available to assist any other departments that need additional help. When she does assist other departments, that department will be billed for those hours. This salary cost is offset due to a full time employee recently dropping down to part time and also no longer eligible for health insurance. As a result of that, the city is really not incurring
any additional cost.
Trash Collection – Billing
No changes
Health Benefits
Considerable increase in costs due to increase in premiums. The biggest increase is the HSA benefit line due to the increase in employer contributions.
Motor Fuel Tax
Superintendent Landers asked the council if there were any questions regarding Motor Fuel Tax.
There were no questions.
Bond Expenditures
This includes equipment requests from the Fire Department, technology upgrades for recording council meetings, and street improvements. There is currently no specific project in mind for street improvements.
Treasurer Conzo said that general good practice on a 3 year bond is to spend $200,000 the first year, $200,000 the second year, and the remaining amount the third year.
The Fire Department is needing a new washing machine and will be paid out of FY20/21. Having forgone pickup trucks for last year, they have earmarked $65,000 for one new pickup truck or two used trucks if a deal could be met. There is currently a grant out for $26,000 that will be used to replace a 25 year old system if approved. The current system is hydraulic, the new system will be battery operated. If the grant is not approved, the money is also earmarked to use later in the fiscal year. There is also $12,000 earmarked for replacement air bags that have passed their 10 year expirations.
Sewer O & M
Long term control plan is moving forward and will be a big part of this year’s budget.
Sewer Accounting and Admin
City Clerk Bateman wanted to remind the council that sewer bills go out monthly now instead of quarterly. That is monthly postage, billing paper, inside envelope and outside envelope, which is more costly. This change was made as a benefit to the residents to be able to afford a monthly bill rather than a larger quarterly bill.
Alderman Welch asked what condition the folding machines were in. Clerk Bateman said that some months there are no problems and some months there are a lot of problems. They are going to use the machines for another year.
Hotel/Motel Tax
Additional Tourism Projects and Events line was increased to $8,000 in hopes that once the restrictions from the virus are lifted, people will want to get out and travel and spend money. This additional money will help promote tourism and hopefully recover lost revenue.
Alderman Bateman spoke about the Pigs and Swigs event. There was already a deposit given to Dock Dogs for this year’s event. The Pigs and Swigs committee tried to reschedule the event to the weekend of the Balloon Fest however, food vendors and Dock Dogs were already booked other places. The committee also didn’t feel comfortable asking their normal sponsors for donations during these tough economic times.
Alderman Parrott said that the Tourism Bureau has lost State Grants in the thousands of dollars due to the virus.
Sewer Bond Repayment
A scheduled payment…10 year bond. The last payment on this is Dec 1, 2023.
Capital Projects
Superintendent Landers will be bringing targets to the council at next week’s meeting that will include 4th St and Decatur St resurfacing where sewer repairs were done and also Heitmann Dr. These two projects will total $500,000.
Sidewalk Improvements will included finishing projects not finished last year and additional targets for this year (also brought to the council at the next meeting) that will total $125,000.
The Stahlhut Drive Extension line is an 8 year loan through ALMH at 1%. Payments on this loan will begin this year.
TIF Fund
There will need to be $42,953.00 transferred from the General Fund to the TIF Fund to pay the TIF Bond payment.
Alderman Welch questioned what impact the uncertainty of the theatre would have on this. Treasurer
Conzo said that he truly expected to see a difference at this point, but due to the virus the Sherriff’s sale
as been delayed. He doesn’t expect to see an impact until the city receives the 2020 tax payment that is payable in calendar year 2021.
Police and Fire Pension
3% cost of living increase. Neither of these funds are in balance which will result in needing to drawl from investments which has been done in previous years.
All Veterans Park
Funds had been maintained for repairs and improvements
Community Gardens
Has a balance of $4,843 for expenses and landscaping.
Adjournment:
There being no further discussion to come before the City Council of Lincoln, Alderman Keller motioned to adjourn, seconded by Alderman Welch. Mayor Goodman adjourned the meeting at 6:48 p.m.
Respectfully Submitted By:
Charity Hutchison, Recording Secretary
City of Lincoln