City of Centralia City Council met Oct. 26.
Here is the minutes provided by the council:
The City Council for Centralia, Illinois met for a Work Session to discuss the 2021 Operating Budget and Capital Plan. Mayor Williams called the Work Session to order at 5:00 p.m.
Present: Mayor Williams, Councilman Jones, Councilman Smith, Councilman Sauer, & Councilman Marshall (Mayor Williams was present at City Hall and all others attended remotely)
Absent: None
Staff Members Participating Physically at City Hall: Lowell Crow, City Manager; Bill Agee, City Treasurer, Gayla
Harting, Community Development Director; and Kim Enke, City Clerk
Staff Members Participating Electronically: Katie Plutz, Assistant City Manager and Economic Development Director; Michelle Liggett, Finance Director; Jeff Schwartz, Public Works Director; Chief Dodson, Police Department; and Chief Lynch, Fire Department
City Manager Crow provided an overview of the budget process that has started and is being submitted and reviewed by the department heads and staff. He noted that he has met with each of the department heads twice for the first draft. He reported that approximately $620,000 still needs to be cut out of the budget. He noted that there will be two more work sessions before the final work session where everything is balanced. A copy of the first draft of the budget and capital plan was provided in a PowerPoint.
City Manager Crow stated that during the S&P audit, it was determined that a capital plan was needed. He stated that the capital plan that is provided is a 5 year plan. He asked the Council to review the capital plan and let him know if there is anything that the Council would like to move or change. He began the review of the capital plan with the Fire Department and Police Department. He reported that the purchase of the squad cars will be funded from the impound fees and DUI money that is set aside. He noted that the completion of the investigation and dispatch area is included. He explained the platform and pumper fire truck payments are included in the capital plan at $148,000 per year. He stated that depending how the referendum goes, another pumper will be purchased next year with payments beginning in 2022 with the leasing program at $58,000 per year. He explained that he has stressed the importance of a phased replacement program with the departments and this capital plan includes planning for those replacements. He also noted that equipment for the new pumper is also included due to not all of the equipment being compatible with the new fire trucks. He stated that there is an issue at Station 2 that needs to be fixed and is included in the capital plan as well. Public Works was reviewed next with the City Manager noting that this is typically the biggest part of the capital plan. He noted that the plan included Gragg St. which will be funded by a combination of STU, Motor Fuel Tax, and Opportunity grant. He noted that sections of Sara/Frazier, Pine & Sycamore and many other streets are included in the plan. He also noted that a lease of a skid steer is included as well as the lease of a dump truck and street sweeper. He also added that the tree removal funds are for some ash bore and oak gail trees, with some of the funds from ash bore taken from MFT. He noted that there is also funds budgeted in the general fund. He also noted that building maintenance for roof repair at the old city hall, city hall, and the yards are also included. City Manager Crow provided the capital plans for water, sewer, and lift station replacements. He explained the need to replace the water line at 161 West following the bridge replacement. He also explained that the truck lease and vactor truck lease is included in the plan.
City Manager Crow reviewed the Operational Budget that currently has a $11,902,333 requested amount. He noted that the revenue estimates are short of that. He stated that himself and Treasurer Bill Agee are reviewing the past 5 years, this year, and the projected property taxes. He stated that the expenditures are being completed and reviewed by Finance Director Michelle Liggett, himself and department heads. He noted that Assistant City Manager/Economic Development Director Katie Plutz reviewed a lot of the other funds that involved economic development.
Next City Manager Crow reviewed the budget overview that included the amounts budgeted for a variety of expenditures. He noted that the reductions to the Centralia Youth Center and Centralia Clean & Green and the increase to the Fire & Police Commission due to testing expenses for new hires. This overview also included the amount for the possible retirement of Bill Agee, demolitions, and street improvements. The expenses for public property, police, and fire were also discussed. The airport easement study was discussed and City Manager Crow explained that these are funds are provided each year. He noted that there is some acquisition that will need to take place and some trees that will need to be taken down for the strip. He stated that there is a hangar door that will also be replaced. He stated that road repairs around the lake will continue again this year. The TIF expenditures were discussed including continuing façade grants. He reported that Katie Plutz has researched the ability to pay for the strategic plan and comprehensive plan out of the TIF money. He added that the funds are available and the cost has been broken up among the TIF budgets. He also stated that he expects the cost to be less and spread over to the next year as well. The Intermountain Electronics grant funds were included and discussed as well as the Sewer and Water fund expenses.
Next City Manager Crow discussed the items of concern. He stated that the budget is approximately $700,000 over budget and they need to work to reduce cost. He stated that since 2010 the Fire and Police Pensions have increased by $1.2 Million. He stated that there has not been any increases to property taxes during that time and money has been taken from the general fund to cover that and there are additional increases this year. He noted that the retirement of possibly 4 employees are anticipated expenses. He also noted that if the sales tax referendum doesn’t pass, the city will need to consider how to pay for it. He also discussed how the cost of insurance has decreased but the number of employees that are adding family members to the City’s insurance due to loss of jobs is increasing. He specifically noted that the dispatchers alone have had an increase of $50,000 due to adding additional family members but noted it is happening in several departments. The refurbishing of the swimming pool was discussed. City Manager Crow explained the estimate was $1.4 Million including concrete replacement, sidewalks, and pump and filter system. The recreation center was discussed noting that since 2016, there has been a $35,000 shortfall which has carried over and was identified by S&P during their review. He explained that an additional fire pumper truck needs to be purchased as well next year. He noted that the final concern is what he discussed previously which is that there has not been property tax increases since 2010 but there has been increased expenses due to fire and police pensions and additional increases in salaries across all of the unions.
Next City Manager Crow noted the new line items to be added to the budget which included transferring funds to cover recreation costs, strategic plan and comprehensive plan costs from TIF funds, expenditures for a spring tourism event to be paid by hotel/motel taxes as well as marketing and branding, the addition of a building inspector in Community Development, and vehicle purchases from impound and drug fees.
City Manager Crow reviewed the breakdown of each of the departments expenditures as well as the revenue estimates. He noted that the sales tax is higher than the revised budget by about $140,000 due to sales tax coming in higher than anticipated. He stated that as anticipated the gaming tax will be short and oil revenue isn’t recovering. He reviewed the anticipated revenue for various fees and permits.
Discussion began with Councilman Jones asking for clarification about demolitions. City Manager Crow confirmed that the budget for demolitions was included in the amount of $100,000 with an additional grant being sought. He explained that first cut means the first draft but other revisions still need to be made. He noted that this is to show where they need to go. He stated that the other funds and water and sewer will be reviewed at a later date. Councilman Jones also asked for more details about the water line on 161 West. City Manger Crow asked Jeff Schwartz to explain the repairs. Director Schwartz explained that the line was already leaking and had issues prior to the bridge repair. He stated that they abandoned it and waited until the bridge was complete before making the repairs. He stated that it was in bad condition and had several leaks. Mayor Williams asked where the line goes to. Director Schwartz stated that the line provides Hoffman with water service and currently they are getting water from Carlyle until the line can be repaired. Mayor Williams asked if Hoffman or the State can share some of the cost of replacing the line and Director Schwartz explained that it is an existing line in a right of way and there is not any reimbursements provided from the state for that. He stated that he hopes the expenses are not as high as he has budgeted, but it depends on the bore that will need made under the creek. City Manager Crow added that the water contract with Hoffman states that the city will maintain the lines to sell them water. Councilman Sauer asked for clarification as to why the library, that is a separate taxing entity, is being paid $41,000. City Manager Crow stated that in 1973, when Personal Property Replacement Tax was given, there was money that could be designated and one of the ways was to designate to pay the library. Treasurer Agee stated that the library district continues to get the funds due to it being designated. Councilman Sauer stated that he is concerned with the amount that needs to cut and it doesn’t address the other things that need to be added. City Manager Crow stated that the addition of an IT Director and Building Inspector need to be reviewed to see if they can be afforded going forward. He also stated that the Council will need to see what happens with the sales tax and if that passes it will relieve some of the costs for equipment for the fire department. He stated that if it passes the city will begin getting the tax in July. He also noted that if it doesn’t pass, the council will need to consider raising property taxes. Councilman Marshall asked who is responsible for the pensions of the SRO Officers. City Manager Crow stated that the schools are paying the salaries and expenses of the officers and he asked that Chief Dodson discuss this further. Chief Dodson stated that the complete cost of the SRO officers are being picked up by the sales tax the schools implemented. The cost includes their pension, insurance, and salaries. Councilman Marshall stated that he is also concerned about the amounts of cuts that still need to be made. He noted that many other communities over the years have had to increase their taxes to pay for the pension liability costs. He stated that it is one of the biggest expenses and at some point Centralia is going to have think about the cost of public safety or continue to find a council that will increase property taxes going forward like other cities. City Manager Crow stated that the 1% salary increase is extremely important to Centralia because there is a compounding effect on it with the pension costs. He stated that the pension consolidation is moving forward which will help but still three years away. He stated that the IML is promoting 3 members for the pension boards and the Mayor is able to vote. Mayor Williams stated that his concern is the $35,000 shortage in recreation. He asked how much is being paid to them and is the city getting the biggest bang for the buck. He also stated that the pool is a concern of his with $1.4 Million for refurbishing it. He asked if the replacement of the pool with payments over a period of time may be something to consider instead. He noted that once refurbishing starts, the repairs are continual. Councilman Smith expressed that he was glad that the money for demolitions is included in the budget. He also asked for clarification concerning the amount paid to the recreation complex. City Manager Crow stated that he met with Sonya Germann and David Agee and the contract for the complex is for $120,000 and they have also added mowing, maintenance, and more responsibilities of other areas which has increased their costs and the total to $170,000. He noted that it was $190,000 in 2019 without additional revenue. He stated that Sonya Germann is looking at hosting more travel ball events and other options for increasing revenue. Councilman Smith stated that he is concerned that this is a huge cost to city and the taxpayers. Mayor Williams asked if there is a way to change the contract with the recreation center. City Manager Crow stated that the contract is through 2024 but the additional costs over $120,000 have never had a written agreement. He said that he could go back to David Agee and Sonya Germann to discuss it further. City Manager Crow also noted that the costs of the pools in other communities including Salem which was approximately $5 Million and Mt. Vernon which was approximately $7.5 Million. He stated that the estimate he received was from Gonzalez, the civil project engineers and not pool engineers, so he would need to a true estimate. He stated that a cost estimate for a splash pad would be something to consider as well, noting that the bathrooms could still be used with the splash pad. He stated that he was looking for direction from the council to know what they want to do with the pool going forward. Mayor Williams stated that a number of residents continue to use the pool and he would like to see if the pool could be replaced by spreading the cost out over a period of time. He stated that he would hate to see $1.4 Million into the pool that will the need to continue to refurbish. Mayor Williams asked how long it would take to replace it and the City Manager estimated it to be a 2 year project and noted the need for a funding source for it. Councilman Sauer asked that before moving forward on the pool, the city determine the use it has had in the past. He stated that it is his understanding that it has not been used as much in recent years due to an indoor pool at the recreation center. He stated that he would like a report concerning the usage. City Manager Crow stated that he had discussed this with Sonya in the past. He also noted that the other concern will be the hiring of lifeguards due to the minimum wage requirements increasing to $15.00 per hour in 2024. Mayor Williams also asked what the usage of the indoor pool is and City Manager Crow stated that he would ask for those numbers as well from Sonya Germann. Councilman Marshall stated that he feels that revenue is lost to Salem and Mt. Vernon due to their water parks. Councilman Smith inquired about the possibility of funding the pool through a grant. City Manager Crow discussed his past experience with OSLAD grants and Councilman Smith discussed previous grants Kaskaskia College was also able to obtain.
With no further business to discuss, the Work Session was adjourned at 5:55 p.m.
https://cityofcentralia.org/vertical/sites/%7BFC680FE7-BE5C-4903-A103-67AF5EF51655%7D/uploads/10-_October_26_2020_Work_Session_-_budget.pdf
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