BUDGET WORKSHOP

Lincoln City Hall, Council Chambers

700 Broadway Street ILincoln, Illinois

Thursday, March 22, 2018

The Budget Workshop of the City Councilof Lincoln was called to order by Mayor Seth Goodman at 5:34 p.m., with proper notice given. City Clerk Peggy Bateman called the roll call.

Present:

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

Present:

Treasurer Chuck Conzo City Clerk Peggy Bateman

Streets Superintendent Walt Landers

Fire Chief Mark Miller

Building and Safety Officer Wes Woodhall Pol ce Chief Paul Adams

Absent:

Waste Water and Treatment Manager Tim Ferguson Alderwoman Heidi Browne

City Attorney Blinn Bates

Presiding:

Mayor Seth Goodman

Fiscal Year 2018-2019 Draft Budget Discussion:

Mayor Goodman called upon Treasurer Chuck Conze to discuss the 2018-2019 Revenue Projections and proposed Fiscal Year 2018-2019 Budget for the City of Lincoln. Treasurer Conzo thanked Mayor Goodman.

Sales Tax Rebates:

Treasurer Chuck Conze led discussion, beginning where the Lincoln City Council left off during the first Budget Workshop on Monday, March 12, 2018. He picked up conversation about an agreement with Coy's Car Corner in Lincoln.

Alderman Keller joined the meeting at 5:37 p.m.

Treasurer Conze moved to discuss Workforce Development. Alderman Hoinacki asked a question to Treasurer Conzo about Workforce Development.

Alderwoman Bauer weighed in. She said that whenthe council made the decision to fund this last time, she made her decision with the understanding that it would be a one-time ask, as a pilot program. She said that was how it was presented last time.

Treasurer Conze recognized this is a considerable amount of money, higher than sponsorships. He said he would strike thisif it were the desire of the council. Alderman Keller asked if there as an amount the dealership specifically requested. Treasurer Conze said $25,000.

Public Safety Building:

Treasurer Conzo moved to Public Safety Bid Financing and Design Engineering line items.$50,000is listed in this fund. The reason it was so high last time is because of the police station, other things as well.Alderman Bauer asked Streets Superintendent Walt Landers about Design Engineering funds for a bridge. It is listed in this budget, farther down. Alderman Hoinacki asked Police Chief Paul Adams about remaining construction on the new police station. He said there is a still a small portion of the Design Engineering contract bill that has not been paid.

Treasurer Conze mentioned The Depot/Waiting Station that it will be paid in full. Alderman Welch said the city needs to at least maintain what was done last year in terms of streets and sidewalks. Treasurer Conzo asked if he should add that back in. Treasurer Conze said the city can do that if that is the consensus. He said the proposed budget could be changed periodically up until the time the council votes on it. He said the second voting day in April is April 17, 2018.

Alderman Hoefle backed the proposed budget review up to Utility Tax, at the top of the page 13. Treasurer Conzo mentioned revenue projections, that sometimes the city may fall short or exceed them. Alderman Hoefle told Treasurer Conze to hold up. He then asked Superintendent Landers about roads. He said in essence the city could duplicate what was done last year and put $25,000 more into sidewalks...all without touching the Utility Tax. Treasurer Conze said, "yes."

Treasurer Conzo said the council could put in a stipulation about fund transfers, "transfer as needed." Alderman Hoefle said heis in agreement with Alderman Welch about keeping the same levelof productivity at the streets department had last year. Alderman Parrott asked a question about micro resurfacing and how it plays a role in the priority of roads that will be addressed this coming year.

Superintendent Landers said he met with someone from Farnsworth Group today (Thursday, March 22).

Alderwoman Bauer noted which projects are the guide for this year not including reconstruction. Treasurer Conze said after speaking with Superintendent Landers he learned the projects will not likely be paid for until next fiscal year.

Alderman Hoinacki asked Superintendent Landers if he anticipates doing any more work during this fiscal year. Superintendent Landers said he is hoping they can do petition work and small repairjobs.

Jefferson Street Bridge Design:

This is split out over the next couple of years.

library Parking Lot

Alderman Hoefle said he has met with Farnsworth Group over the Pekin Street Library parking lot alley. He mentioned designs that the city previously spent around $80,000 on that he thinks could be used to help the esthetics downtown.He proposed using the plan the next year or after. Treasurer Conze said he did budget for $5,881 - in case it is needed.

Treasurer Conzo told the council they could now go in two different directions - reviewing the line items with question marks.

Alderman Bauer asked about removing Short 11th.Treasurer Conzo asked Superintendent Landers if that's true - that there will be no movement on the street during the upcoming fiscal year. He agreed.

Treasurer Conzo then returned to page one to cover any item with question marks.

Transfers to Capital Projection/Utility Tax Liability Insurance

City Clerk

Salaried-Appointed:

Without objection, Treasurer Conze moved down to the City Administrator position. He said the longer the city goes without filling this position, the more money the city saves. Alderman Bauer said the council needs to budget for $70,000 on the City Administrator salary. Treasurer Conzo mentioned hiring an Assistant City Administrator for $40,000-$45,000. Alderman Hoefle mentioned thatif the council does hire a City Administrator, they may not get into the role until May or June.He mentioned dropping travel/training down to $1,000 for the first year the City Administrator is hired.Alderman Hoefle said this could be subject to change.Alderman Parrott disagreed with the $1,000 budget for travel and training.

He alluded to that that amount would not stretch very far in Chicago. Alderman Hoefle said this new hire should likely need to get acclimated with the City of Lincoln before traveling for training. Treasurer Conzo agreed. Alderman Parrott suggested setting the amount at $1,500.

Alderman Hoinacki said that year to date - what amount had been used out of the lineitem - $2,016 had been used.Alderman Hoefle said he is not uncomfortable with $1,500. He said it does not make sense to send this new hire all over, traveling for training in their first year. Alderman Keller made a suggestion to back off the miscellaneous and revise the salary and travel lines. Alderman Welch asked what the council ended up on . . . it was $1,000 in miscellaneous and $70,000 for salary etc.

Alderman Parrott asked about the Telephone allowance. He wanted to know it was a cell phone. It was lowered to $1,000 from $2,000. Treasurer Conzo said he thinks $1,000 is generous and he would appreciate itif the council could negotiate that down from there.

Building and Zoning:

Alderman Fleshman mentioned the vehicle that Building and Safety Officer Wes Woodhall had requested, as $4,000 is still allocated for vehicle repairs. Alderman Hoefle asked where Safety Officer Woodhall had left off with auto bids. He said $14,000 with $25,000 being the high-end. The current vehicle has around 90,000 miles on it. He proposed purchasing a new one outright while trading in the current vehicle and utilizing the $4,000 for a monthly vehicle payment.

Treasurer Conzo asked about the vehicle repair line being changed to vehicle purchase. Alderman Welch asked about the interest rate on a new car. Alderman Bauer mentioned that Safety Officer Woodhall could likely take advantage of other co-ops the city currently has. She later continued about buying a vehicle without interest. She said in looking around the councilmight find a way to buy it outright.

Treasurer Conzo said the council could go back to it. He moved to the Mayor and City Council budget.

Mayor and City Council:

Treasurer Conze said the Mayor helped in reducing the budget line item - it is lower compared to last year. He said he appreciated it.

Fire Deparbnent:

Salaries-Appointed includes one new hire.

Police Deparbnent:

Equipment Replacement Fund is going to be listed as a General Fund transfer on page one. He said it will appear under Fund 70. Salaries-Clerical listed as item 02-1206-4017 is listed at $50,000 - but split

into two roles at $25,000 annually. Chief Adams said it should make the force more efficient as more officers will be able to hit the streets.

Alderman Fleshman asked to stop on Building and Grounds. He posed questions to Fire Chief Miller about Utilities-Electric.Treasurer Conzo said some items are higher as the new building is under construction, but money is still being allocated to cover costs at the old building as needed.

Economic Planning and Development:

Treasurer Conzo brought up DockDogs® Worldwide - thatit has been entered in the budget and listed at $750. There is money left over from the Lincoln Balloon Festival as there is not going to be a balloon fest in 2018. Alderman Hoefle said he thought the counciltalked about this and lowered that $5,000 to

$1,000.

Streets and Alleys:

Treasurer Conzo moved to respond to the line items under Streets and Alleys that had question marks by them. Superintendent Landers mentioned giving his part-time employees a five percent raise.Their hourly rates would rise from $9.75 per hour to $10.25 per hour. Alderman Hoefle mentioned giving Superintendent Landers a full-time hire.Alderman Parrott asked how an approval for a raise is done. Treasurer Conzo said it has been done a couple of different ways over the years. It must be provided for in the budget as a stipulation. Treasurer Conze said it could also be done in a resolution.

Alderman Parrott asked if the council ever looks at the projection of pension payments for new hires or the years ahead.He then asked what percentages firefighters and police officers pay into their pensions. Treasurer Conze said it is around nine to 10 percent.

Treasurer Conze said the city's auditors share this in the Gasby Report. They change it annually based on retirement and deaths etc.

Alderman Bauer asked if the council could return to Building and Zoning and the vehicle repair line item.

Alderman Hoinacki asked to go back to page three to Building and Zoning, Salaries-Part-time.

Building and Safety Officer Wes Woodhall mentioned he has not used a few line items and asked the councilif he could go ahead and use the dollars allocated for the vehicle purchase.

Treasurer Conzo turned to Motor Fuel Tax.

Motor Fuel Tax:

Treasurer Conzo mentioned an incentive from Union Pacific, he also mentioned the Fifth St. Reimbursements that are pending.

Superintendent Landers brought up MFT Engineering. He said it was recommended that this line item gets raised.

Alderman Fleshman asked Superintendent Landers and what has been paid out this year. He asked about an unused $92,000 -then he asked about Traffic Signal Electric Service whichis listed at

$30,000.

Hotel/Motel Tax:

The Lincoln Civic Foundation has been removed asit was a previous project of former City Administrator Clay Johnson.

Superintendent Landers said the city is in desperate need of new picnic tables. Treasurer Conzo asked how many there are and how much they cost. Superintendent Landers said a heavy duty picnic table is around $400 each. Alderman Welch proposed replacing a few each year.

Alderman Bauer said The Tropics sign is near completion. Alderman Hoefle said if the sign is near completion and the council could use some of the dollars allocated for next year to fund the picnic tables. Alderman Welch then brought up using some of The Tropic sign's budget or The Balloon Fest Budget for DockDogs.

Sewer Bond Repayment Capital Projects

library Parking Lot

The Budget Workshop recessed at 6:51 p.m. The Budget Workshop resumed at 7:10 p.m.

TIF Fund:

Alderwoman Bauer mentioned favade projects and the businesses that have inquired if there are funds available. She mentioned carrying over $10,000 to help fund those types of prokects.Safety Officer Wes Woodhall said he does have an application right now.

Alderman Hoefle said he is inclined to at least put in $20,000 in that line.

Alderman Welch wanted to return to the TIF Grant line item.He asked Safety Officer Wes Woodhall about opting out of the TIF program. Alderman Hoefle explained and went into property taxes within the TlF District.

Equipment Rentals:

Treasurer Conzo asked if there is anything the councilwould want to add.Alderman Hoinacki asked about Land Rental Income.Treasurer Conze said the city no longer has a cell tower which made up the Land Rental Income. He said there is a small amount that goes into from the former French property, the Fifth Street road extension.

TIF Fund:

Alderman Welch wanted to return to the TIF Fund, he wanted to ensure that the property that has requested the grants has opted in or opted out of the TIF Program. Alderman Hoefle explained what this might mean regarding falling out of the TIF if you had protested your taxes. He wanted to make clear that applicants meet this qualification before they can receive the fa<;ade grant.

Alderman Hoinacki asked if that is not currently on the application. Alderman Hoefle said we need to correct it. It needs to be in the application. Alderman Welch said if the city is funding this, those who are contributing tax revenue to the fund, need to get the grant first. Alderman Hoinacki said the fa<;ade program should be suspended May 1, if the city is adding new stipulations to the application.

Alderman Hoefle said that the city could step into a legal situation. Alderman Hoefle said the city should expedite an ordinance change, to be clear on this. Treasurer Conzo asked about the ordinance. Safety Officer Wes Woodhall said someone has come forward. Alderwoman Bauer said the fa<;ade programis the only program funded.Alderman Hoefle would like to amend the ordinance. He said thisis a potential legal issue, he wants to addressit as quickly as possible. He said he would be glad to take a look at the ordinance to see if a change needs to be made.

Capitol Project Fund

Alderman Welch wanted to return to the Capitol Project Fund, he said there is parking lots improvement money. He wanted to know what it would take to replace the flashing stop lights downtown with stop signs. Treasurer Conzo said it could not be done with this money. Alderman Welch said he would like the city to do this.

Streets Superintendent Walt Landers said he should be able to replace the lights with the signs this coming fiscal year. Treasurer Conze said there are so many other things we could spend money on. Superintendent Landers said he should be able to with his upcoming budget. .. he mentioned the city would save money on electricity utilities. Alderman Welch said thisislow hanging fruit, which taxpayers ask the council about all the time. Treasurer Conze said he never saw the advantage of removing the stop lights.

Superintendent Walt Landers said solar power flashing lights also exist. He thinks the councilcould move to a stop sign with a solar flashing light on top of it.

Alderwoman Bauer asked about being esthetically pleasing with the potential new choice of signage. She said everyone knows how she feels about the completion of the square. Treasurer Conzo said you would want to put in something that is historically appropriate.

Superintendent Landers then brought up the historic downtown signs with a distinct emblem. He said these signs are on his list for replacement as well. He said he will throw together some options and bring them before the council. Alderwoman Bauer then brought up sidewalk repairs that will likely be neededif the city removes the stop lights.

Alderman Hoefle then transitioned to page nine under the Motor Fuel Tax and the $100,000 listed therein for Street Lights.

Police Pension Fund and Fire Pension Fund:

Treasurer Conze shared that the city will be in an improved position regarding the funding of these pension liabilities - but that in the short term there will be a cash flow problem in those funds. He said the combined amount. He said this will be the case unless they get an increased source of revenue. He said the city did increase the tax levy and put the total 2.1 percent CPI into the pension funds. He told the councilhe wanted them to be aware of this, in terms of a cash flow problem.

Alderman Hoefle mentioned money estimated in the revenue projections - the Utility Tax listed at the front of the packet at $650,000.

Treasurer Conzo said none of that amount is going in. He said the city will run out of Utility Tax eventually because it is being used for capital projects.

Alderman Hoefle asked Treasurer Conzo to tell him how much that is. He said he would like to see some of that Utility Tax money . . . he said he thought that is what the Utility Tax was designed for.

Alderman Hoefle said he is talking about for the years to come. Treasurer Conze said that the sewer mandate will be very costly. Alderman Hoefle talked about lowering it . . .by $2, $3, $5, every year. Treasurer Conze said it is something they would have to check on.

Alderman Bauer asked Alderman Hoefle to clarify about the $650,000 that normally goes to capital projects.Alderman Hoefle said as a citizen who pays into the Utility Tax, he wants to ensure it goes toward what it was intended to be used for.

Treasurer Conze said it would be a 15 year loan. Alderman Bauer said this would eat up the entire Utility Tax that was intended to go to capital improvement projects.

Alderman Hoefle said he is trying to look at what gives benefit to the citizens right now. He said he does not want to give up on capital projects right now either. Treasurer Conze said the councilwill have to decide or debate on it.

Alderman Hoinacki said you can only slice the pie so many ways. He said if you take away from one, you would be taking away from another.

Alderman Hoefle said he is not disagreeing with anyone. He said he would love to do capitalprojects but that there is a sewer mandate forthcoming. He said it does not do any good to do capital projects if the citizens are complaining that the Utility Tax is not helping them, and second the city starts losing more citizens. He said it is important that one fund helps fund the other.

Alderman Hoinacki made the point that capital projects are good for people too. Alderman Hoefle said it does not do any good for them in they do not live in Lincoln anymore. He said he wants to make sure the sewer mandate has minimum impact. Alderman Welch said in the past few years there has been money for capital improvement projects, but asked how much was set aside for the sewer mandate?

Alderwoman Bauer said there was not any data, but they did make an incremental $1 increase.

Alderman Welch said it is pretty well known in this building that past councils knew this was coming. He said this is not something they got a letter about last year. He said the city could have done a better job at planning for this.

Alderman Hoefle said the councilshould put this on hold.

Treasurer Conzo suggested putting it on the agenda for April 17. That way the public hearing could be held at the same time. It would also be publicized in pamphlet form and shared with the public 10 days prior to the time of the public hearing.

Alderman Bauer brought up the Utility Tax again, stating that it is projected at $650,000. Treasurer Conze said this is 70 percent of this Utility Tax. She then asked why then was there only $302,000 in

capital projects last year. Treasurer Conze said that was what the council put in the budget. It stayed in the General Fund. He said the council could transfer it to sewer.

All Veterans Park

Treasurer Conze moved to All Veterans Park and processing donations. This account has been opened as a pass through account for flag pole improvements and other projects happening this spring. There

is about $2,100 in it now.

"From the Ground Up"

Treasurer Conze said this community gardens project has not moved forward. He recommended closing off the account and transferring a portion of the funds ($4,134.70) to the Third Friday line. He said the remaining balance, ($5,651.72) could be used on landscaping around The Depot or new police station.

Treasurer Conze said he will revise the document so that it can be distributed to the council at the Committee of the Whole meeting on Tuesday, March 27.

Superintendent Landers asked if the councilwas going to move to discuss the Equipment Fund.

Superintendent Landers said he missed it earlier in the workshop. He wanted to bring attention to

leased equipment and the need for a backhoe. Superintendent Landers also brought up the balloon payment on the backhoe which is $45,000 at the end of the five years. The end loader at the end of five years would be in the $80,000 range for the balloon payment.

Alderman Parrott asked if Superintendent Landers would like to continue with a leasing program for the equipment. He said it makes sense. Alderman Welch asked what the new purchase price is on an end loader and backhoe. Both items are over $100,000.

Alderman Bauer asked Treasurer Conze to give the council information about the bond payment before a Public Hearing on Monday, March 26, at Lincoln College. Treasurer Conze said it the bond payment would be over a couple hundred thousand plus. He said well over $200,000. He said he would email this to the council.

Treasurer Conze asked if there was anything else, there being no further discussion, he moved forward to cover Illinois Statutes Chapter 65, stating that the budget must be available to the public for at least 10 days prior to the passage of the budget. That brings the tentative budget to be drafted by April 5.

Following final action on the budget, there must be a public hearing on the budget. The public hearing would be on April 16, prior to the day the council would vote on the item. The item will need to be publicized in the media. The entire budget is not published, only the hearing and a tentative amount.

Treasurer Conze reminded the council that the budget is a working document, and is subject to the cash made available. Treasurer Conze said this is all he had to discuss for the evening.

Mayor Goodman thanked Treasurer Conze. He moved to discuss other items.

Other Discussion:

None.

Announcements:

None.

Adjournment:

There being no further discussion to come before the City Council of Lincoln, Alderwoman Bauer motioned to adjourn, seconded by Alderman Hoefle. Mayor Goodman declared the motion carried.The meeting adjourned at 7:57 p.m.

Upcoming Meetings:

Public Hearing at Lincoln College IMonday, March 26, 2018 at 6 p.m. Committee of the Whole I Tuesday, March 27, 2018 at 7 p.m.

Regular City Council IMonday, April 2, 2018 at 7 p.m. Committee of the Whole ITuesday, April 10, 2018 at 7 p.m.

Respectfully Submitted By:

Alex Williams, Recording Secretary