Lincoln, Illinois
Finance & Fire/Water & ESDA Committees
July 2, 2012
Minutes of a Finance Committee/Fire Committee Meeting held in the Council Chambers of City Hall, Lincoln, IL, on Monday, July 2, 2012.
Alderman Anderson called the meeting to order at 6:32 p.m.
Members of the Finance Committee present were Chairman Alderman Anderson, Alderman Horn, Alderman Neitzel, Alderman Tibbs and Alderman Busby. Members of the Fire Committee present were Chairman Alderman Horn, Vice Chairman Alderman Busby, Alderman Anderson, Alderman Armbrust (he arrived at 6:41 p.m.) and Alderman Bacon. Also present was Alderman Hoinacki, Alderman O'Donohue, Alderman Wilmert (he arrived at 6:45 p.m.). Department Heads present were Fire Chief Miller, and Street Superintendent Mr. Jackson (he arrived at 6:40 p.m.). Also present were Mayor Snyder, City Treasurer Mr. Conzo, City Clerk Mrs. Gehlbach, and Recording Secretary Mrs. Riggs.
The meeting was to discuss the fire apparatus.
Fire Chief Miller said the lowest vehicle interest rate he found was 2.75% from Illini Bank. CEFCU has not gotten back to them yet. All the banks he has talked to have agreed to an annual payment. The truck that is being replaced is 5104 which is a 1991 and there is a major issue with the water tank which has been replaced twice. To repair the truck it would cost around $20,000.00. Most tanks now are poly plastic because the stainless steel tanks corrode. Thought it had about 50,000 miles but wasn't sure of how many hours are on the truck.
Alderman Neitzel saw a pumper truck in Springfield at the surplus. It is a 1993 and holds 1250 gallons of water.
Fire Chief Miller said he would go look at it and it would need to fit in the garage. The scrap value of the truck is $3,000.00 with one place they looked at for a trade in. There is a company in Northern Illinois that buys used trucks and part out and would take the whole truck.
Alderman Busby said he could not vote for a truck. He could not see going into debt for $368,000.00. He thought the City should put a new stainless steel tank on it and run it for 3-5 years.
Fire Chief Miller said he would look into the prices of stainless steel tank and a poly tank. Alderman Busby thought they should look into buying a smaller vehicle for medical runs. Fire Chief Miller said that is what they are currently doing. Alderman Neitzel said the truck is junk and that it is rusting out and the frame will drop. Fire Chief Miller said the truck was sitting outside.
Alderman Anderson asked if they had already paid for a police vehicle from the GO Bond this year. City Clerk Mrs. Gehlbach said they had.
Alderman Anderson said they had already outlined about $112,000.00 to spend out of the GO Bond this year which included a roof loan payment which the City does not have to make. Having $446,633.72 left in the GO Bond. If the amount for the other things the City still needs to do besides a truck if you subtract out the $112,000.00 there is still $334,000.00 left.
Finance & Fire/Water & ESDA Committees
July 2, 2012; Page -2-
Alderman Anderson said she was leery of using it all for a truck and thought they would want to do some other things next year before they get the next bond issue. It might be possible after next year to use money out of the future GO Bond. She did not like the idea of throwing more money into that truck. She didn't think the rates would go much lower.
Fire Chief Miller said he has been working on a grant. There are two parts of the grant and he is writing a major part of it for protective clothing for the firefighters but could ask for portions for truck payments. He is planning on writing in $150,000.00 for that grant from the Feds. If we can put money down from the GO Bond and show how much we can put down on it versus asking for the whole $368,000.00 he thought they might have a better chance getting it.
City Treasurer Conzo said CEFCU asked a few more questions than the other financial institutions and that is why he thought they should wait to hear from them. If the City waits to buy something in 3-4 years it will cost more. The GO Bond has to be paid up December 13, 2013. He felt they should pay as much from the bond as possible and borrow as little as possible.
The City is still paying on sales tax rebates to Jim Xamis (about three years left), Goody's/Dollar Tree (Dec. 1, 2013), Sysco (goes through 2014), and Coy's (thought goes to 2024 or 2025).
Fire Chief Miller said he was looking at the truck as an emergency purchase. Doesn't want to create debt and keep trucks rolling on the road. He has been down a truck every day and has to put the truck that is leaking water in service while they are servicing the other trucks. He doesn't want to do it but needs something dependable.
Alderman Anderson said if they took the $446,000.00 that is left in the GO Bond and financed $100,000.00 and paid the remaining $268,008.00 out of the GO Bond that would leave $178,625.00. She felt they could use half of that for capital projects which would cover what they already have. Keeping $88,000.00 to $89,000.00 aside for the next fiscal year or the beginning of the next fiscal year. She felt if they were going to borrow to borrow the least they could. There would still be money left to do other capital projects.
Fire Chief Miller said doing a stock truck already built it would take 40-45 days. There is testing and training that goes into that time.
Alderman Horn moved to adjourn the meeting and Alderman Tibbs seconded it. There were five Finance Committee yeas (Alderman Anderson, Alderman Busby, Alderman Horn, Alderman Neitzel, and Alderman Tibbs, zero nays, and none absent; motion carried. There were five Fire Committee yeas (Alderman Anderson, Alderman Armbrust, Alderman Bacon, Alderman Busby, and Alderman Horn), zero nays, none absent; motion carried.
The Finance Committee and Fire Committee Meeting Adjourned at 7:03 p.m.
Respectfully Submitted By:
Risa Riggs
Recording Secretary
City of Lincoln