Rock Island City Council met November 20.
Here is the minutes provided by the Council:
1.Call to Order
Mayor Thoms called the meeting to order at 6:45 p.m.
2. Roll Call
Mayor Thoms asked the City Clerk to call the roll.
Present: Mayor Mike Thoms, Alderman Joshua Schipp, Alderman Dave Geenen, Alderman Virgil J. Mayberry, Alderman James Spurgetis, Alderman Stephen L. Tollenaer, and Alderman Dylan Parker
Absent: Alderman Ivory D. Clark
Staff: City Manager Randy Tweet, City Attorney Dave Morrison, City Clerk Judith Gilbert, and other City staff
3. Pledge of Allegiance
Mayor Thoms led in the saying of the Pledge of Allegiance.
4. Moment of Silence
Mayor Thoms asked for a moment of silence.
5. Minutes of the November 13, 2017 meeting.
Motion:
Alderman Spurgetis moved to approve the Minutes as printed; Alderman Geenen seconded.
Vote:
Motion passed on a 6-0-1 voice vote. Aye: Schipp, Geenen, Mayberry, Spurgetis, Tollenaer, and Parker. Nay: None. Absent: Clark.
6. Update Rock Island by Mayor Thoms
Holiday Schedules - Rock Island City Hall and all branches of the Rock Island Library will be closed on Thursday, November 23 and Friday, November 24, 2017 in observance of the Thanksgiving Holiday. Refuse collection and Curbside Recycling will still be on schedule Tuesday and Wednesday, but the rest of the week will be one day late. The City wishes everyone a happy and safe Thanksgiving Holiday!
28th Annual Quad City Christmas Arts & Crafts – On November 24th, 25th and 26th, the QCCA Expo Center will hold their annual Christmas Arts and Crafts Fair. There will be 200 exhibitors showing off their hand crafted products. Friday and Saturday the fair will be open from 10:00 a.m. to 5:00 p.m. and then on Sunday from 10:00 a.m. to 4:00 p.m. Tickets are $5.00 a piece or get free admission with a new unwrapped toy for Toys for Tots. For more information, please call (309) 647-0400.
Holiday Lighting Contest - The City of Rock Island’s Beautification Commission is sponsoring their 32nd Annual Holiday Lighting Contest. To nominate a residential or commercial light display, send the name and address of the display via e-mail to Douglass.Kathryn@Rigov.Org or call (309) 732-2905 by 5:00 p.m. on Wednesday, December 6, 2017. Judging will take place on the evening of December 11, when all displays should be illuminated by 5:30 p.m. Winners of the 2015 and 2016 Holiday Lighting Contest are not eligible.
Winter Night, Winter Lights – The Quad City Botanical Center is starting a new tradition for the whole family; Winter Nights, Winter Lights. The Botanical Center’s gardens will be in full winter bloom throughout the month of December and aglow with thousands of beautiful lights. Bundle up and stroll the gardens, bring the kids for crafts, or just plan a visit to one of the special events. To learn more about the special events, please call (309) 794-0991. The Botanical Center is located at 2525 4th Ave in Rock Island.
7.Presentation of the Calendar Year 2018 Budget.
Finance Director Stephanie Masson told Council the CY 2018 Proposed Budget is at their places. She pointed out the Financial Summary section and the Miscellaneous section with useful information and historical data. The budget document will be on the City website tomorrow. She previewed what she would cover in her presentation: budget goals, city-wide expenditures and revenues, the General Fund budget, General Fund expenditures and revenues, Public Works Enterprise Funds, Park & Recreation Fund and the Library, and the property tax levy.
Ms. Masson explained there are actually 44 funds to budget. The goals during the budget process were to balance the budgets, keep financial impacts to Rock Island citizens and businesses to a minimum, continue to provide quality services to citizens and businesses, be fiscally responsible by following the City's fiscal policies which provide direction, preserve the City's current financial position, and improve the City's future financial position.
Ms. Masson reviewed government-wide expenditures of $117 million across nine (9) departments. The General Fund is the largest portion at $35.1 million, followed by Water, Sewer, Storm and Refuse Funds at $29.6 million in expenditures. Economic development expenditures of $7.7 million include all TIF funds, CDBG funds, and the CIRLF program. Expenditures by category include personnel at $47.7 million or 41% of the total. Ms. Masson said this amount is down from last year's expenditures of $48.2 million even with wage increases that are part of 16 union contracts and an increase in contributions to police and fire pensions. To balance the budget, elimination of vacant positions, delay in hiring for positions, and restructuring in some departments (Parks, Library, and Finance) were utilized. Contract services account for $24.6 million; transfers and debt service each contribute 9% to the total.
Ms. Masson next reviewed city-wide revenues of $116 million. Charges for services represent the largest portion at 21% of revenues of $24.8 million in various enterprise funds (business type funds) which are the utilities and Parks funds. Debt proceeds of $13.6 million include loan proceeds from the Illinois Environmental Protection agency (IEPA) and a small amount of new bonds which represent the city's match for two state funded street projects for 38th Street and for 18th Avenue. They hope to delay bonding as long as possible. Property taxes are $17.9 million of revenues which includes the proposed tax levy and the TIF increments. Total revenues are less than expenditures. The difference is to be funded with current reserves. The current fund balance will be used to pay some of the bond payments that have been paid by the Gaming Fund in the past.
Ms. Masson reviewed the breakdown of state and local taxes of $22.6 million. Gaming tax is the largest at $4.4 million; second is sales and use tax at $3.9 million; and income tax is third at $3.8 million. Ms. Masson noted that last year, the largest portion was income tax. The state has decreased the local government share by 10% effective with the first of their fiscal year. The state will be distributing two more payments in their fiscal year, but it is not more revenue, but cash flow catching up to what is owed the cities. Ms. Masson said the gas tax is the smallest portion at $.4 million which includes a proposed penny increase effective the first of the year. Currently, the gas tax in Rock Island is two cents when it was raised in 2010.
Ms. Masson discussed the budget challenges the City is facing. Revenues are flat in state tax categories. Department heads were given a directive to cut 5% from their budgets. As a service provider, expenses continue to increase. The state had overpaid the City in sales tax of $82,000. One of the budget challenges is reduced state income to the City: $200,000 less in state income tax, $700,000 less in the Personal Property Replacement Tax, $400,000 less in income tax, and $45,000 less from an administrative fee the state is charging to distribute sales tax. Ms. Masson said careful attention is being paid to this year's budget which helps to determine where the City will end up next year. She is projecting the City will end up even. Another budget challenge to the General Fund is rising police and fire pension costs, an increase of $2.5 million over the last seven years. The solution was to reduce the General Fund's portion of the tax levy. She said these pensions are state mandated and were earned and the City stands by its obligation, but it creates a budgetary challenge when most of the budget is personnel. Collective bargaining wage rates and a 5.2% increase in insurance costs are additional budget challenges.
Ms. Masson reviewed the budget solutions. Expenditure reductions were made with the elimination of five vacant positions including two police officers; a delay in filling other positions; further delay in vehicle purchases; and a delay in contracted street maintenance, resurfacing, and reconstruction projects. Revenue increases are proposed with an increase in the ambulance fees, a one cent increase in the gas tax, and a property tax increase. Ms. Masson explained that the City's ambulance rates are at the median level of 24 local governments;staff is recommending the fees be closer to the average plus 10% and to add a non-resident component (common in the state). The third proposed budget solution is the use of reserves.
Ms. Masson reviewed the proposed General Fund budget revenues of $35.2 million which is a 2.8% increase over last year. The General Fund includes many other funds such as police related funds and the Labor Day Parade. General Fund expenses of $35.1 million broken out by departments includes Police at $14.2 million (40%), Fire at $9.8 million (28%) and Public Works at $5.3 million (15%). Those three departments account for 83% of the General Fund budget.
When the General Fund is broken out by categories, personnel accounts for 76% of the budget with $26.8 million in expenses and $6.2 million in services (18%). Personnel expenses include salaries (56.6%), pension costs (29.2%), health insurance (8.1%), overtime, longevity pay, fringe benefits, professional development/education, and severance pay. Salaries, pension costs, and health insurance account for 94% of personnel expenditures. The Police and Fire departments' personnel costs make up 80% of the General Fund for a total of $22 million out of $26.8 million.
Public Works personnel make up 6.6% and Community and Economic Development makes up 4.3% of total personnel costs. Finance, Information Technology, General Administration (which includes the Mayor and City Council) and Human Resources make up the rest.
Ms. Masson explained that Public Works Enterprise Funds are business type funds or proprietary funds; charges are supposed to cover all of the costs of the services including debt and savings for future infrastructure improvements. The Water Treatment Filter Facility project accounts for 23% of the $29.6 million Enterprise Funds budget. They are proposing a 3% Waste Water increase and an increase of $1 per month for Refuse.
The Parks and Recreation Fund along with the Library are supported by property taxes. The golf courses, Whitewater Junction, and RIFAC have their own Enterprise Funds. Revenues of $5.6 million for Parks accounts for 33% of the property taxes. Parks expenditures are $6.1 million. The Library Fund budget expenditures of $2.57 million closely matches proposed revenues of $2.5 million. The Library is proposing an increase in the tax levy of $2.1 million in property taxes which is a 1.83% increase over last year. Property taxes represent 82% of their revenues.
Ms. Masson reviewed the proposed 2017 property tax levy of $12.38 million for CY 2018. The 2016 tax levy was $11 million with a proposed $1.1 million increase for 2017. Police and fire pensions account for 54% of the tax levy. The General Fund portion of the levy is 16% and has been decreasing over the years. Public Benefits represents a reduction in the Debt Service Fund portion of the tax levy to keep the tax levy as low as possible. She explained the difference between the EAV or property valuation and the property tax rate. In August, the City was notified by County that the tentative valuation was $475 million representing a 0.73% increase. She stressed the final valuation can be different from the original estimate the City receives.
Ms. Masson presented a graph of the tax rate by collection year. The City of Rock Island tax rate has been level for the past decade. The proposed tax rate is 2.6022. She also reviewed the City's EAV history since 2003 which is in an upwards trend since a dip in 2013. Ms. Masson reviewed the City tax levy history for the past seven years. The General Fund portion continues to decrease; the portion for fire and police pensions continues to increase, while the Parks and Recreation and the Library portions remain flat.
Ms. Masson explained that in 2017, the City of Rock Island made up only 23.3% or less than one-quarter of the total property tax bill which includes, the City, the Library, Parks and Recreation, and police and fire pensions. The school district is the majority of the property tax bill at 52.4%. Other taxing districts include the County, the township, the airport, Black Hawk College, and MetroLink. The impact for for an average $100,000 home occupied by the homeowner will be an increase of $58 in 2018, just less than $5 per month. That is for the proposed tax rate of 2.6022.
In conclusion, Ms. Masson said they balanced the 2018 General Fund budget with a mix of solutions: the use of reserves, expense reductions, and new revenues, while maintaining a high level of service to citizens. While difficult actions, the City will maintain its financial strength with 90 day reserves and its bond rating (investment grade). She thanked the departments especially the department heads for the hours spent preparing the budget. Ms. Masson noted that it is challenging to budget in uncertain times when so much of the costs are related to personnel and which the revenues support.
Ms. Masson announced departments will present their budgets to Council on Monday, November 27 from 5:00 to 10:00 p.m. at the Police Department Community Room. If necessary, there will be another session on Saturday, December 2 at 8:00 a.m. The budget will be presented for consideration on Monday, December 11 for a first reading and there will be a second reading and final approval on Monday, December 18.
Alderman Spurgetis asked when was the last time there was a tax increase. Ms. Masson explained there are two components: the dollar amount that is levied which is spread amongst all of the tax parcels and the tax rate. The property tax rate has remained flat for the last ten years ranging from 2.38 to 2.4. Alderman Spurgetis said it is a complicated process.
Mayor Thoms said they would allow public comment now regarding the proposed budget. Rock Island resident Dale Muller said he is concerned about the tax increase and the perception that Rock Island has high taxes which he thinks keeps the real estate values from increasing. Mr. Muller said the population has decreased and there is less retail; those are the problems.
8. Proclamation declaring November 28, 2017 as Giving Tuesday.
Mayor Thoms read the proclamation. Pam Hauman, Outreach Coordinator for Christian Care, accepted the proclamation. She explained that Giving Tuesday, November 28, is a national day of philanthropy. Last year, $177 million was donated to a variety of non-profit organizations. It is a global event in 17 countries. She asked the audience to remember Christian Care in their giving; as the local homeless shelter for men, they rely heavily on donations.
9. A Special Ordinance establishing a stop intersection at 15th Avenue regulating eastbound and westbound traffic at its intersection with 28th Street.
Motion:
Alderman Parker moved to consider, suspend the rules, and pass the ordinance; Alderman Schipp seconded.
Vote:
Motion passed on a 6-0-1 roll call vote. Aye: Schipp, Geenen, Mayberry, Spurgetis, Tollenaer, and Parker. Nay: None. Absent: Clark.
10. Resolution declaring support for the Illinois Bicentennial Commission in planning and promoting initiatives to recognize and celebrate the bicentennial of the state of Illinois officially observed on December 3, 2018.
Motion:
Alderman Parker moved to adopt the resolution as recommended; Alderman Schipp seconded.
Mayor Thoms said they have a commemorative flag from the State and they hope to raise the flag on December 4.
Vote:
Motion passed on a 6-0-1 roll call vote. Aye: Schipp, Geenen, Mayberry, Spurgetis, Tollenaer, and Parker. Nay: None. Absent: Clark.
11. Claims
a. Report from the Public Works Department regarding payment #1 in the amount of $46,669.45 to Langman Construction of Rock Island, IL for the 33rd Avenue Court Reconstruction, West of 17th Street Project for services provided from October 23, 2017 through October 31, 2017.
b. Report from the Public Works Department regarding payment #3 in the amount of $614,323.55 to General Constructors Inc. of Bettendorf, IA for the 007 Outfall Relocation Project for services provided from September 30, 2017 through October 31, 2017.
Motion:
Alderman Spurgetis moved to accept the reports and authorize payments for Claims items a and b as recommended; Alderman Mayberry seconded.
Vote:
Motion passed on a 6-0-1 roll call vote. Aye: Schipp, Geenen, Mayberry, Spurgetis, Tollenaer, and Parker. Nay: None. Absent: Clark.
12. Claims for the week of November 10 through November 16 in the amount of $1,207,110.91.
Motion:
Alderman Parker moved to allow the claims; Alderman Spurgetis seconded.
Vote:
Motion passed on a 6-0-1 roll call vote. Aye: Schipp, Geenen, Mayberry, Spurgetis, Tollenaer, and Parker. Nay: None. Absent: Clark.
13. ACH Payments for the month of October in the amount of $2,372,582.45.
Motion:
Alderman Geenen moved to approve the ACH payments; Alderman Tollenaer seconded.
Vote:
Motion passed on a 6-0-1 roll call vote. Aye: Schipp, Geenen, Mayberry, Spurgetis, Tollenaer, and Parker. Nay: None. Absent: Clark.
14. Purchase Card Claims for the period from September 27 through October 26, 2017 in the amount of $65,834.48.
Motion:
Alderman Mayberry moved to approve the purchase card claims; Alderman Spurgetis seconded.
Vote:
Motion passed on a 6-0-1 roll call vote. Aye: Schipp, Geenen, Mayberry, Spurgetis, Tollenaer, and Parker. Nay: None. Absent: Clark.
15. Report from the Community and Economic Development Department regarding a Special Ordinance amending Chapter 4, Article I, Section 4-1 Building Codes, Section 4-3 Plumbing Codes, Section 4-4 Mechanical Codes, and Chapter 4, Article II, Section 4-23 Electrical Codes as it relates to the 2015 International Building Code and 2017 National Electrical Code.
Motion:
Alderman Parker moved to consider, suspend the rules, and pass the ordinance; Alderman Schipp seconded.
Vote:
Motion passed on a 6-0-1 roll call vote. Aye: Schipp, Geenen, Mayberry, Spurgetis, Tollenaer, and Parker. Nay: None. Absent: Clark.
16. Report from the Fire Department regarding a Special Ordinance amending Chapter 6, Article II, Sections 6-16, 6-19(a), 6-20, 6-21, and 6-22 of the Code of Ordinances as it relates to the 2015 International Fire Code.
Motion:
Alderman Schipp moved to consider, suspend the rules, and pass the ordinance; Alderman Parker seconded.
Vote:
Motion passed on a 6-0-1 roll call vote. Aye: Schipp, Geenen, Mayberry, Spurgetis, Tollenaer, and Parker. Nay: None. Absent: Clark.
17. Report from the Community and Economic Development Department regarding the adoption of the "Quad Cities Enterprise Zone Intergovernmental Agreement" between the City of East Moline, the City of Moline, the City of Rock Island, the City of Silvis, the Village of Milan, and Rock Island County for the designation of the Quad Cities Enterprise Zone.
Motion:
Alderman Spurgetis moved to approve the intergovernmental agreement as recommended and authorize the Mayor to execute the agreement; Alderman Mayberry seconded.
Alderman Schipp thanked Mr. Tweet, City Manager, and Chandler Poole, Community and Economic Development Director, and the CED staff for getting this done. Mr. Tweet explained it will be submitted as part of the application. The Enterprise Zone will be in effect in January 2019 if it is awarded.
Mayor Thoms said a lot of work went into the latest Enterprise Zone application including getting 30-31 letters from businesses in support of the Enterprise Zone and the businesses' future capital investments. Mayor Thoms said the majority of the letters were from Rock Island businesses.
Vote:
Motion passed on a 6-0-1 roll call vote. Aye: Schipp, Geenen, Mayberry, Spurgetis, Tollenaer, and Parker. Nay: None. Absent: Clark.
18. Report from the Community and Economic Development Department regarding an Ordinance establishing an Enterprise Zone in the cities of East Moline, Moline, Rock Island, and Silvis, the village of Milan, and the county of Rock Island, Illinois, pursuant to the aforementioned "Quad Cities Enterprise Zone Intergovernmental Agreement," and subject to the certification and approval of the Illinois Department of Commerce and Economic Opportunity.
Motion:
Alderman Geenen moved to consider, suspend the rules, and pass the ordinance; Alderman Schipp seconded.
Vote:
Motion passed on a 6-0-1 roll call vote. Aye: Schipp, Geenen, Mayberry, Spurgetis, Tollenaer, and Parker. Nay: None. Absent: Clark.
19. Report from the Finance Department regarding the Five-Year Capital Improvement Plan for CY18 through CY22.
Motion:
Alderman Schipp moved to approve the Five-Year Capital Improvement Plan as recommended and authorize staff to implement the CY 2018 projects and expenditures pending approval of the CY 2018 budget in December; Alderman Geenen seconded.
Alderman Schipp said he was happy to see that money for the Community Caring Conference was added in and that the Aldermen's wishes were heard. He commented that it is a very lean list for 2018. Alderman Schipp asked if the plan included funding for absorbing the water service for the Arsenal. Mr. Tweet said that has been on hold for some time, but should start up again in 2018. There is some money budgeted for it if it goes forward.
Vote:
Motion passed on a 6-0-1 roll call vote. Aye: Schipp, Geenen, Mayberry, Spurgetis, Tollenaer, and Parker. Nay: None. Absent: Clark.
20. Report from the Mayor regarding an appointment to the Human Rights Commission.
Motion:
Alderman Parker moved to approve the appointment as recommended; Alderman Geenen seconded.
Mayor Thoms announced Vince Thomas is the appointment to the Human Rights Commission.
Vote:
Motion passed on a 6-0-1 voice vote. Aye: Schipp, Geenen, Mayberry, Spurgetis, Tollenaer, and Parker. Nay: None. Absent: Clark.
21. Report from the City Clerk regarding an Activity application and Resolution for the Quad Cities River Bandits Race to Home 5K to be held on Saturday, April 21, 2018 from 9:00 a.m. to 10:00 a.m.
Motion:
Alderman Schipp moved to approve the event and adopt the resolution as recommended; Alderman Parker seconded.
Vote:
Motion passed on a 6-0-1 roll call vote. Aye: Schipp, Geenen, Mayberry, Spurgetis, Tollenaer, and Parker. Nay: None. Absent: Clark.
22. Other Business
Alderman Tollenaer extended his sincere sympathies to Alderman Ivory Clark and his family.
Alderman Mayberry asked Martin Luther King Center Director Jerry Jones to come up to the podium and talk about the weekend's event at the King Center. Mr. Jones said they served over 1000 plates of food for the annual Martin Luther King Center Thanksgiving celebration; 700 meals were delivered on Saturday and over 300 meals were served on Sunday. He thanked the 150 volunteers and contributors who helped make it possible.
Mayor Thoms announced the opening of the American Job Center at 500 42nd Street. He and Alderman Mayberry and City Manager Mr. Tweet attended the ribbon cutting held this morning. The center will be a one-stop shop for a variety of resources including unemployment insurance, job training, education, and collaboration with other agencies. Previously, the closest center was in Sterling. The center employs 25 staff. Mayor Thoms said it is a great resource here in Rock Island.
Alderman Schipp commented on the budget process and thanked individuals for reaching out with their concerns. Alderman Schipp said it was the most thorough and professional job in reviewing and preparing the budget for Council. He stated it is a disservice to focus on the past such as where we were in population. It is a disservice to those who live in Rock Island now and to the businesses and all who are working to improve the City. The City now has a great city manager and a great mayor who has really dug into the budget process and brought his business mind to it. Alderman Schipp said everywhere that Mayor Thoms goes, he is advocating for Rock Island in a positive way. Alderman Schipp said Mr. Tweet is a good steward of the City's services. He commented the challenges the City faces are not unique to Rock Island. Alderman Schipp said he hopes people will come out out next Monday to hear the departments present their budgets. Mayor Thoms thanked Alderman Schipp.
No one signed up to address Council to speak on a topic.
23. Executive Session: 5 ILCS 120/2 (c)(1) The appointment, employment, compensation, discipline, performance, or dismissal of specific employees of the public body (or legal counsel for the public body).
Motion:
Alderman Schipp moved to go into Executive Session for the exception cited; Alderman Parker seconded.
Vote:
Motion passed on a 6-0-1 roll call vote. Aye: Schipp, Geenen, Mayberry, Spurgetis, Tollenaer, and Parker. Nay: None. Absent: Clark.
Motion passed on a 6-0-1 roll call vote. Aye: Schipp, Geenen, Mayberry, Spurgetis, Tollenaer, and Parker. Nay: None. Absent: Clark.
24. Motion to Adjourn
Motion:
Alderman Parker moved to adjourn; Alderman Schipp seconded.
Vote:
Motion passed on a 6-0-1 voice vote. Aye: Schipp, Geenen, Mayberry, Spurgetis, Tollenaer, and Parker. Nay: None. Absent: Clark.
The meeting adjourned at 8:23 p.m.
http://www.rigov.org/AgendaCenter/ViewFile/Minutes/_11202017-82
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