City of Centralia City Council met Nov. 17.
Here are the minutes provided by the council:
MINUTES OF THE WORK SESSION
This meeting was conducted and attended as a full hybrid meeting. The City Council for Centralia, Illinois met for a Work Session to discuss the 2022 Budget. Mayor Kuder called the Work Session to order at 6:00 p.m.
Present: Mayor Kuder, Councilman Castellari, Councilman Smith, Councilman Griffin, Councilman Jackson Absent: None
Staff Members Participating Physically at City Hall: Scott Randall, City Manager; Derek Sherman, Assistant City Manager/Economic Development Director; Gayla Harting, Community Development Director; Jeff Schwartz; Public Works Director; Michelle Liggett, Finance Director; Chief Dodson, Police Department; John Lynch Fire Department; Bill Agee, City Treasurer; and Kim Enke, City Clerk
Staff Members Participating Electronically: None
City Manager Randall provided an overview of the proposed 2022 fiscal budget. The budget documents include six years of budget history, estimated year end expenses and revenue, year to date expenses and revenue for 2021, and the proposed budget for 2022. He explained that a cover letter was provided with the budget that detailed and explained the budget. He stated that he expects the City to end the year with a significant increase in revenue over what was budgeted. He explained that he expects to end 2021 in a strong financial position. He reported that all large funds are balanced. He stated that the few small funds that are not balanced or in the negative are lake restoration and drug enforcement where there is spending of accumulated fund balances but there are no particular problem areas.
While discussing revenues, City Manager Randall stated that in summary, the proposed budget includes a modest 2% increase in the tax levy noting that there has not been an increase in over a decade. He stated that it is prudent to raise significant revenue streams to accomplish the things that the City wants to do. He stated that the budget includes a 2% increase to all employees wages. He stated that another significant change is the addition of the contingency line item in each of the large funds for unexpected expenses. He stated that the purpose is to establish an unallocated expense line item for unexpected expenses. As an example, when an employee leaves the City, there are payments of accumulated time and the costs involved with the hiring and training of a new employee. He stated that in the past, it has been budgeted to anticipate these in each of the departments. He stated that he suggested that instead, there be contingency in the large funds including general, water, and sewer and if that situation arises then the money is transferred to the department in which it occurs. He stated that it is a change in philosophy, but a better way to control the funds. He stated that what the budget includes are the expenses that are known including employee wages. He explained that as they change, the adjustment will be made at that time rather that anticipate or predict it now. He stated that there are significant increases in revenues budgeted including sales tax with a 3.5% increase estimated. He stated that there are some increases in fee structures which includes increases in grave fees to raise to similar charges in neighboring communities. He stated that the Republic Services trash contract includes a 3% raise in October. He also noted that legislation has allowed an increase in video gaming fees. He stated that he recommends that the current charge of $20 per machine be increased to $125 per machine for non-profit establishments and increased to $250 per machine for any others.
During discussion of expenditures, City Manager Randall stated that the budget will includes replacement of a number of existing vacancies in the police department. He stated that the budget also includes the addition of 1.5 new positions including an additional code enforcement officer and providing a part-time secretary position for the fire department.
The revenue of the water fund and sewer fund was discussed. The City Manager stated that the budget includes a 5% increase based on recent changes to the Consumer Price Index. Mayor Kuder asked when the last increase occurred. City Manager Randall noted that the increases to water and sewer rates are based on the ordinance of the City that states that the rates increase each year based on the Consumer Price Index and no Council action is required. He stated that the rates will be made available in approximately 3 weeks.
He stated that as the budget is presented, it includes $1,999,000 that has been devoted for capital improvements including the fleet, buildings, structures, and roofing. He thanked each of the department heads for their efforts to complete the budget process for fiscal year 2022 as well as the budget review committee that assisted him which included the Assistant City Manager, Treasurer, and Finance Director.
Each fund of the budget was reviewed including the General Fund, Other Fund, Water Fund, and Sewer Fund. The current year end estimates and proposed 2022 expenditures were discussed and compared as well as comparison of revenues. The City Manager and each department head covering the each of the funds gave a synopsis of their budgets and answered any questions asked by the Council with discussion including personnel costs, operating expenses, and capital improvements.
Joel Brooks addressed the Council during public participation suggesting that water lines be moved from under the roadways and into boulevards due to the crews needing to tear up the road on each occasion that there is a broken water line that needs repaired. He stated that he is aware of the cost of road repairs increasing and he feels that they would last longer if they would not need to be torn up. Joel Brooks stated that he has been to many budget work sessions over many years and this one by far has been the most in depth session that he has ever attended. He stated that he learned a lot and where the tax dollars are actually spent.
The Mayor and City Council thanked the City Manager and staff for the preparation of the budget. With no further business to discuss the Work Session was adjourned at 9:15 p.m.
https://cityofcentralia.org/vertical/sites/%7BFC680FE7-BE5C-4903-A103-67AF5EF51655%7D/uploads/11-_November_17_2021_Work_Session_Minutes.pdf
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