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CITY COUNCIL BUDGET WORKSHOP

Lincoln City Hall, Council Chambers

700 Broadway Street ILincoln, lllinois

Monday, March 12, 2018

The Budget Workshop of the City Councilof Lincoln was called to order by Mayor Seth Goodman at 5:32 p.m., with proper notice given.

Present:

Alderman Steve Parrott Alderman Tracy Welch Alderman Ron Fleshman Alderman Michelle Bauer Alderman Ron Keller Alderwoman Heidi Browne Alderman Rick Hoefle Alderman Jeff Hoinacki

Present:

Treasurer Chuck Conze City Clerk Peggy Bateman

Streets Superintendent Walt Landers Fire Chief Mark Miller

Waste Water and Treatment Manager Tim Ferguson Building and Safety Officer Wes Woodhall

Police Chief Paul Adams

Absent:

City Attorney Blinn Bates

Presiding:

Mayor Seth Goodman

Public Comment:

Mayor Goodman called upon citizens registered to speak. Bill Donath, representing the Logan County Genealogical Historical Society. Requests a $750 donation from City for continued support. The County has already donated. Notes that during the depot renovations Chicago Street was closed which hindered their foot traffic.

Treasurer Chuck Conze comments that he is a member of this organization. Points out the work of the society in terms of two statues in Logan County. Civil War Statue and Abraham Lincoln Statue.

Alderman Ron Keller asks about the county donation, asks if it is a regular contribution. Alderman Tracy Welch asks about the request listed in the budget.

Treasurer Chuck Conzo said this is a first draft of the budget, but was aware of the request.

Welch would be in favor of this donation - stated it's very important we preserve the history of our county.

Bill Donath shares that the current budget for the group is $12,000.

Alderman Rick Hoefle shared the positives of the society, stating that some of their events draw visitors to the city and county, and said he could see this at the depot.

Treasurer Conzo: Explains that it could fit under, "tourism."

Budget Workshops begins:

Mayor Goodman turns discussion over the Treasurer Conzo.

Treasurer Conze begins by thanking Mayor Goodman and Councilmembers -outlines what the council members will find in the budget proposal, states it's a preliminary budget draft. Shares draft of revenue projections. He mentions that in future the document will all be in one spread sheet. Points out this goes through Fund 56. The only real large fund that needs more time and attention is the capital improvements fund.

Treasurer Conzo shares the item will be up for inspection 10 days prior to the voting meeting and that it will be publicized in the Lincoln Courier.

Gen. Fund Consolidated Sub-Funds:

Treasurer Conzo starts from the beginning, at page one of the proposed Budget - Fiscal Year 2018-2019. Notes that asterisks bring attention to changes in line item dollar amounts.

Transfers:

Transfers to the TJF Fund (we don't know what the property tax revenue will be, we may not need that much -

$45,000)

City Clerk:

Treasurer Conzo moves to discussion of City Clerk, City Administrator categories.

Building and Zoning:

Discussion of Building and Zoning is turned over to Building and Safety Officer, Mr. Wes Woodhall.

Building and Safety Officer, Wes Woodhall states there really are not really a lot of changes as he did not want to ask for anything. Dropped $1,000 from part-time salaries. There are two houses in town that may need to be torn down - the cost to tear down one bigger home could run $20,000-$30,000, this would bring his

department over budget on this line items as $25,000 is allocated under item #02-0224-8599. His team has started to look into grants to help alleviate some of the costs for demolition and cleanup.

Building and Zoning may need a new vehicle for the department. They are looking for a small SUV type vehicle

• no other specifications, it just needs to drive. Their 2005 Dodge Stratus was recently in an accident and likely needs to be replaced.

Alderman Hoefle asked if Mr. Woodhall is looking into a leasing program. Mr. Woodhall said he has found some vehicles including a $13,000 vehicle with lower miles from a local dealer.

Alderman Bauer inquired about the equipment fund, asked Treasurer Conze if this is something that would be considered equipment and if it could be woven in. Treasurer says she made a good point, and it is a definite possibility.

Alderman Fleshman stated the Vehicle Repair cost line item could be reduced if they acquire a new vehicle.

Department, Merit Commission, Mayor and City Council:

Treasurer Conzo moves to discussion of Crossing Guards (only one guard), Merit Commission (nothing new here), Mayor and City Council, the part-time salary position line item is eliminated.

Alderman Welch touched on the challenges of reaching all of our constituents and the need for postage, this falls into Public Communication, item #02-0254- which is listed at $3,000. Per feedback from the

trash/recycl ing program - Alderman Welch has learned there are some residents who don't have access to computers or television - but a mailing may be an effective way to reach this demographic. He supports the budget for postage for this purpose.

Alderman Keller said he would like to find an effective way to reach these people without adding this new budget line, such as through the press.

Alderman Welch said the simple answer is, "no," - that the media does a very good job, this line item is meant to cover items that the public needs to be informed about.

Alderman Bauer said she can see that if there were a mandate, it would be advantageous to have this line item in order to get a communication in front of people in a way the City of Lincoln can control. The postage may be needed to cover mailings about big issues. She does not think it is a bad idea.

Alderman Welch said this $3,000 would really only cover one and a half mailings. He cites the sewer changes as an example where this could be needed.

Contract Services -Legal:

Treasurer Conzo moved discussion to Contract Services through Woods and Bates Attorneys at Law. Commented on the need for a line item for Outside Legal Services if there is ever a conflict of interest. Treasurer Conzo moves to Contingencies.

Contingencies:

Pension Consultation Fees, $25,000 is cut.

Walt Landers speaks on the $20,000 not currently allocated in the FY 2018-2019 budget, proposal, Mr. Landers said the funds were intended to cover the costs of three concrete entry signs that were never purchased - line item #02-0604-6440, the line item listed as "Public Art" to be revised as it does not indicate "signage." The $20,000 will be carried over. Treasurer Conzo to make this adjustment and budget for it.

Fire Deparbnent:

Treasurer Conzo turns the discussion of the Fire Department budget on page four, over to Chief Miller. Noted there is a contract coming up and this budget takes that into account. This does not include an addition of another firefighter.

Fire Chief Miller shared that most of his department's operating fees have remained the same as the previous year. No changes in supply, gas/oil, equipment/computers line items, etc.

Noted that Grant Expenses had risen by $25,000 - as there were two grants received for the department this year, one is an Illinois grant that will be 100 percent paid for. A large grant they are considering is a communications grant to upgrade radios, this is about a $350,000 grant through the Federal Government.

There would be a cost to the city, if the department does not get this grant, they would not use this the $30,000 allocated in item # 02-0800-9002.

Anticipates that at some point in the future there may no longer be a need for the $10,000 Accrued Overtime fund. On his wish list for the budget, he would like to hire two new firefighters to the payroll.

Adding one new firefighter to staff would be helpful, as this employee could be hired as a floater on various shifts as needed.

Currently around $25,000 over on overtime due to a firefighter injury.If the firefighter cannot return,workman's comp will stop and the overtime hours will come out of the next budget.

Alderman Hoefle asked how much could be saved in overtime if the chief were to hire two floaters.

There will always be overtime for injuries, no matter if you hire three of four firefighters, however there could be some $60,000 in savings in overtime costs if there is a new hire. Starting salary would be around $45,000 for a new hire. New firefighters drive costs down for their first few years on staff. Salaries-Overtime item #02-0806- 4018 is currently listed at $110,000.

Salaries Monthly, item #02-0806-4013 allocates for one new firefighter hire, includes the potential firefighters' pension, health insurance. The payroll deduction for their pension contribution is 9.45 percent.

Treasurer Conzo to run the numbers on the costs of one or two new hires - will share with council.

Police Department:

Treasurer Conzo moves to Police Department. Mentioned two new clerical roles, pay raises. Tums discussion over to Chief Adams.

Police Chief Adams begins discussion about police uniforms, they received $12,000 this year - these costs are bumped up by $4,125 in FY 2018-2019 - to cover the costs of vests, but they should be reimbursed back for the cost of these vests. His department has already used these funds.They need to purchase six more vests.

Item #02-1200-5220 shows an increased budget allocation for Medical Supplies, covers the costs of items such as NARCAN.

• Salaries-Appointed item #02-1206-4012 to increase by $4,550
• Salaries-Monthly item #02-1206-401 3 to increase by $51,665 - a 2.75 percent increase

Police Chief Adams would like to hire another officer - recognizes the city has a drug problem - said the city is seeing an increase in crack-cocaine usage.Chief Adams said this is a problem that is not going to go away,

but that we are headed in the right direction. One thing he would like to see happen would be to have a School Resource Officer (SRO) hired in conjunction with District 27.

The Chief thinks grant funding could cover the SRO in a school such as the Lincoln Junior High - 75 percent of their salary (not including pension, health insurance, social security contributions) would be covered by a three year grant. Following the three years, Dist. 27, and Police Department would need to pick up this individuals' salary.

With the permission of the council Chief Adams would like to move forward with requesting Dist. 27 pay the remainder of the salary for this SRO.

Chief Adams also calls for the creation of two new, full-time administrative positions at the police station:

• Records Clerk
• Investigations Clerk

The roles could cover the writing of reports, the property room, copying CD's, filling out additional paperwork, dispositions etc. Chief Adams would prefer his officers were on the streets rather than covering these duties. He also notes these positions could save in overtime expenses.

Alderman Jeff Hoinacki excuses himself from the workshop for·a matter of personal business.

Mayor Goodman calls for a five minute recess.

Upon reconvening, Mayor Goodman turns the floor back over to Treasurer Conzo.Treasurer Conzo addresses Chief Adams for final comment.

Chief Adams reiterates that the hiring of two clerks could put one, possibly two officers back on the streets.

Building and Grounds:

Treasurer Conze turns discussion of Buildings and Grounds over to Fire Chief Miller, as he has covered these duties for several years. Chief Miller explained there are quite a few increases, including changes to phone Telephone Service. He would also like to see the city add phone lines into the Buildings and Grounds budget, to simplify and pay it out of one budget - item #02-1400.

He is also interested in hiring a part-time custodian to cover Buildings and Grounds. Alderman Keller raises questionover a custodian contract increase.Asked if this increase includes the projected cost of cleaning The Depot once it's occupied. Chief Miller shared that whoever occupies the space will be responsible for cleaning

it.

Treasurer Conzo said the Logan County Tourism Bureau would be able to clean and care for The Depot if they were to occupy the space. Discussion of rent, reimbursement pursues.

Alderman Bauer brings up page 10 and the Pass through to Tourism Bureau line item, Treasurer Conze said the increase is based on projected revenue.

Treasurer Conze moves on to contract services.

Economic Planning and Development:

Treasurer Conze begins comment on line items for the New Community Organization as the Logan County Alliance nolonger exists, the Chamber of Commerce-Balloon Fest, and Branding Initiative.

Alderman Keller would prefer the Balloon Fest line item remain in place, in hopes the festival will return in 2019.

Alderman Hoefle proposes a $500 line item, rather than the $5,000 to be used as a placeholder, Alderman Bauer is more comfortable with leaving a budget of $1,000 a placeholder. The Branding Initiative line item of

$4,200 has been cut.

Alderman Bauer raises the point that someone associated with the Pigs and Swigs Festival may be interested

in a donation from the funds previously allocated to the Balloon Fest - knowing that it could be a one-time gift.

Streets and Alleys:

Treasurer Conzo moves discussion to Streets and Alleys, passes discussion to Streets Superintendent Walt Landers.

Tree Trim and Stump Removalhas an increased budget of $3,500 for FY 2018-2019. There is an adjustment for a Labor Attorney, listed at $13,500 over the previous FY. Alderman Bauer requests it be listed at $10,000 to keep it consistent with other Labor Attorney budgets.

The Streets and Alleys budget also calls for the creation of a new hourly position ($51,655) - item #02-3606- 4014 includes a 2.5 percent increase. Superintendent Landers believes this position could be filled for $40,000.

Hiring would likely not take place before May 1, 2018. Superintendent Landers believes an additional employee could help alleviate some of the backlog of jobs currently left on hold.

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Alderman Hoefle asked if the new hire could assist in the replacement of sidewalks and mentions the Capital Project.

Alderman Welch asked if seasonal help would still be hired. Superintendent Landers stated there would still be seasonal help. This would stay at last year's rate. Mentioned the landscape waste attendant and those who help with storm cleanup and snow removal are also paid from this line item.

Alderman Welch asked what we would be putting in the budget for Salaries-Hourly (New) - asked if it is

$40,000-$45,000. Superintendent Landers said $40,000.

Several revisions coming to Streets and Alleys. Equipment rental is not included in this proposal.

Health Benefits:

Treasurer Conzo moved to health benefits. Treasurer Conzo took current health insurance premiums and increased them by 10 percent over FY 2017-2018 budget after speaking with the insurance broker. To take effect Jan. 1, 2019. Dental and Life Insurance amounts are based off of a possible three percent increase.

This takes care of the General Fund, the amount will change based on Budget Workshop discussion. Talks can continue when the City Council convenes on March 22, 2018. At 5:30 p.m.

Additional Items Police Grant:

Treasurer Conzo moved to discussion to Police Grant for safety equipment. The Fire Grant has been used for safety equipment. There is $1,261.28. Chief Adams is certain he will find a way to use it with the new police department.

Motor Fuel Tax:

Treasurer Conzo moved to discussion on the Motor Fuel Tax. Superintendent Landers mentioned current MFT. and the current engineering fees are around roughly $76,000 and only $56,000 was budgeted. Treasurer

Conzo says he could raise it to $70,000 tentatively. Superintendent Landers supports that move.

Superintendent Landers moves to discussion on Salaries-Hourly items #20-0006-4014.The line item is currently listed at $40,000 down from $90,000. Superintendent Landers and Alderman Bauer support increasing it to $50,000.

2017 Project Fund:

Treasurer Conze turns discussion to the 2017 Project Fund.

Alderman Welch mentions the $10,000 estimated for new laptops for the City Council Chambers that would come out of this fund.

Sewer Accounting and Admin:

Treasurer Conzo transitions discussion to Sewer. City Clerk Bateman said there could be additional costs incurred if the sewer changes it water reads - due to the new computer system, software, and contractual services adjustments may need to be made.

Alderman Welch asked if the $3,000 allocated basically covers contractual services, and not enhancements or upgrades to software.

The annual cost for the computer system and software is $17,180 per Clerk Bateman.Currently, item #50- 7004-7877, Capital Expense-Software is allocated at $10,000. Clerk Bateman to work with the software contractor to discuss costs of upgrades and enhancements of the software per Alderman Welch's suggestion.

Alderman Welch to work with Clerk Bateman on the matter.

Sewer Plant:

Treasurer Conze turned discussion to Waste Water and Treatment Manager Tim Ferguson. Manager Ferguson expressed the need for the following:

• John Deere Gator Utility Vehicle
• Carport or structure to cover pipes, fittings currently exposed and deteriorating
• Furnace updates and repairsHe mentioned their current furnace is aged and has been under repair in years past, parts are getting hard to find, and a wasp nest was found inside. Manager Ferguson moved to other line items.
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Sewer Bond Repayinents:

Treasurer Conze thanked Manager Ferguson, moved on to Sewer Bond Repayments, Bond Fees on page 11, skipped over Hotel/Motel Tax on page 10.

Hotel/Motel Tax:

Treasurer Conze oved to Hotel/Motel Tax. Mentioned the passage of 85 percent of the tax to go to the Logan County Tourism Bureau.

Lincoln Civic Foundation line item removed from budget, but added a line item for 3rd Friday events.

The money ($17,000) allocated for the Tropic Sign, item #55-0000-7003, was carried over because it was not spent in FY 2017-2018.

Alderman Bauer asked what was shared publicly in the job description for the salary range of the City Administrator, she would like to know what the high end is on this salary range, so this information can be shared with Treasurer Conze and reflected accurately in the budget proposal.

Alderman Welch reviewed notes and said the starting salary range is up to $75,000.

Treasurer Conze shared the could be a higher of lower projection in Hotel/Motel Tax, said we were up in some months, but without the Balloon Festival the amount might go back down.

Adjournment:

There being no further discussion to come before the City Council, Alderman Welch motioned to adjourn, seconded by Alderman Hoefle. Mayor Goodman adjourned the Budget Workshop at 8:37 p.m.

Upcoming Meetings:

Committee of the Whole I Tuesday, March 13, 2018 at 7 p.m. Regular City Council IMonday, March 19, 2018 at 7 p.m.

Budget Workshop IThursday, March 22, 2018 at 5:30 p.m.

Respectfully Submitted By:

Alex Williams, Recording Secretary