Rock Island Today

City of East Moline Committee of the Whole met Oct. 21.

Here are the minutes provided by the committee:

ROLL CALL

Mayor Freeman called the meeting to order and directed the City Clerk Wanda Roberts-Bontz to call the roll. The following Alderpersons were present: Olivia Dorothy, Jeffrey Deppe, Nancy Mulcahey, Adam Guthrie, Rhea Oakes, Lynn Segura, and Jose Rico. 7:06 p.m.

ADDITIONS/CORRECTIONS TO AGENDA

None

Message Ordinance (Lindsay Gorishek, Asst. Director of Community Development)

The City’s massage ordinance from 1974 needs to be brought up to date with current State regulations. Some highlighted changes are:

- Fingerprinting required for owner and all licensed massage therapists

- Limit business hours to 6am-9pm

- Storefront windows must remain transparent

RECOMMENDATION/REQUESTED ACTION: Approval

A motion was made by Alderperson Guthrie, seconded by Alderperson Rico to concur with the recommendation as presented. Upon roll call the following voted in favor: Oakes, Segura, Rico, Dorothy, Deppe, Mulcahey, and Guthrie. Motion carried.

Participation in IML-RMA Min-Max Insurance Coverage Program (Mark Rothert, City Administrator)

The Illinois Municipal League Risk Management Association (IML-RMA) typically provides comprehensive insurance coverage for municipalities, including:

1. Property Insurance: Covers damage or loss to municipal buildings, equipment, and other property due to events like fire, vandalism, weather-related incidents, and more.

2. Liability Insurance: Provides protection against claims resulting from injuries or damages that the municipality may be legally responsible for. This includes general liability, public officials' liability, employment practices liability, and law enforcement liability.

3. Workers' Compensation: Covers medical expenses, lost wages, and rehabilitation costs for municipal employees who are injured or become ill due to their job duties.

4. Automobile Insurance: Includes coverage for municipal vehicles, protecting against damages from collisions, theft, or other accidents, as well as liability for injuries caused by municipal vehicles.

5. Cyber Liability: Offers protection against risks associated with data breaches, cyber-attacks, and other forms of cyber incidents that could impact municipal operations.

IML-RMA further offers a unique insurance coverage option called the Min/Max Program. This program is designed to provide an incentive for member municipalities to focus on effective accident prevention and claims management. The Min/Max Program operates on a flexible contribution basis that rewards members for maintaining low loss and claim costs while holding them accountable when costs exceed expectations. If a municipality's claims and loss costs are lower than anticipated, they can benefit from overall savings. This motivates members to prioritize risk management strategies that help prevent accidents and reduce claims. Conversely, if losses and claims are higher than expected, members might have to pay additional contributions. This system ensures that municipalities are directly engaged in minimizing risks, as they share in both the financial rewards and penalties based on their performance. The program aims to promote a proactive approach to risk management, where municipalities actively engage in reducing incidents and controlling claim costs, thereby potentially lowering their insurance expenses.

The City has been a participant in the Min/Max Program since 2019 and again recommends participating in the program. The minimum premium costs to enter into the Min/Max program for 2025 will be $457,081 and paid out of the Risk Management Fund which is largely funded through a risk management chargeback from all departments, as well as a portion of property taxes. The maximum premium under the program is $754,601. The City will be responsible for any claims over the minimum, up to the maximum. An alternative to the Min/Max program would be to pay IML-RMA a standard premium of $641,920 for annual coverage. At this time, staff recommends participation in the Min/Max Program.

RECOMMENDATION/REQUESTED ACTION: Approval

A motion was made by Alderperson Rico, seconded by Alderperson Oakes to concur with the recommendation as presented. Upon roll call the following voted in favor: Oakes, Segura, Rico, Dorothy, Deppe, Mulcahey, and Guthrie. Motion carried.

Property Tax Levy Estimate per Truth in Taxation Act (Mark Rothert, City Administrator)

Section 18-60 of the Truth in Taxation Law, 35 ILCS 200/18-60, requires the corporate authority of each taxing district, not less than 20 days prior to the adoption of its aggregate tax levy, to estimate the amounts of money necessary to be raised by taxation for that year upon the taxable property in its district.

Section 18-70 of the Truth in Taxation Law, 35 ILCS 200/18-70, further requires the corporate authority of each taxing district to give public notice of and hold a public hearing on its intent to adopt an aggregate tax levy, if the estimated amounts to be levied exceed 105% of the property taxes extended or estimated to be extended, including any amount abated prior to such extension, upon the levy of the preceding year.

The attached resolution makes a determination that the proposed 2024 property tax levy to be collected in 2025 shall not exceed $7,537,103.00. This proposed estimate is less than 105% of the aggregate extensions for the 2023 tax levy of $7,178,193. Because the proposed estimate is less than 105% of last year’s extension the corporate authority (Mayor and City Council) will not be required to hold a public hearing. Please note that the amounts estimated include the tax levy for the East Moline Public Library as well.

See attached document for property tax levy recommendation and comparison to previous years. The City’s tax rate is recommended to decrease by 3.83% from approximately 2.1829 to 2.0976 (-.0854). Below is a history of the City’s tax rate since 2012.

In the FY2025 budget the city will experience higher inflationary costs, nearly $200,000 in additional expenses related to police and fire pensions, and raising personnel costs for exempt and non-exempt employees. The city will also ideally be implementing two new collective bargaining agreements at the start of the year. Staff therefore recommends approval of the proposed tax levy which will help offset these costs, given estimates of increased equalized assessed value, while also providing a rate reduction. The final property tax levy will be presented at upcoming COW meetings along with the first and second readings of an ordinance.

RECOMMENDATION/REQUESTED ACTION: Approval

A motion was made by Alderperson Segura, seconded by Alderperson Rico to concur with the recommendation as presented. Upon roll call the following voted in favor: Oakes, Segura, Rico, Dorothy, Deppe, Mulcahey, and Guthrie. Motion carried.

ADJOURMENT:

A motion was made by Alderperson Oakes, seconded by Alderperson Segura to adjourn the Committee-of-the-Whole meeting. A voice vote was taken. Motion carried. 7:19 p.m.

https://www.eastmoline.com/AgendaCenter/ViewFile/Minutes/_10212024-1042