CLERICAL COMMITTEE
Tuesday December 8th, 2009 – 6:30 p.m.
Historic Depot, 50 North 4th Avenue, Canton, Illinois
Aldermen in attendance: Jim Hartford, Craig West, Larry Sarff, Rick Reed, Jorge Rivero, Eric Schenck, Gerald Ellis. Others in attendance: Mayor Kevin Meade, Deputy City Clerk Diana Tucker, City Attorney Chrissie Peterson, City Treasurer Aaron Anderson, City Administrator Jim Snider, Police Chief Dan Taylor, Public Works Director Clif O’Brien, SRPED Mark Rothert, Joe Ginger Video Services. In the audience was Daily Ledger John Froehling, Journal Star Kevin Sampier, Dustin Pollitt, Lee Puleo, Jim Hocker and John Fry
Finance
Alderman Eric Schenck, Chairman
Bills.
Alderman Sarff questioned the item on page 20 listed as the payphone. Jim Snider stated he did some research on this item, and discovered it was for a payphone at the lake, and we are mandated to pay for it- in the amount of $118.00 per month. A letter was received from the Department of Health that mandates the City to have the payphone. Jim Snider is going to continue to research to see if this is required since we do not have a year-round campground.
Motion and second was made by Aldermen Sarff/ Rivero to send the bills to Council for consideration. The motion carried by voice vote, and was unanimous.
Treasurer’s Report.
City Treasurer Aaron Anderson highlighted the treasurer’s report with the following:
First- as of the end of November, we are currently running a General Fund deficit of ($14,769). This is in contrast to the $231,285 surplus at the end of October. The number one reason for this drastic turnaround is linked to State revenue streams. Due to the budgetary crisis at the State level, payments to the City for certain revenues have been severely delayed. This is most apparent in terms of income tax revenue. Income tax revenue has been the City’s second largest General Fund revenue source in the past and the State Comptroller’s Office has indicated that they are behind as far back as July 2009 on some payments. The feeling at the State level is that this situation will worsen before it gets better. As you can see in the report, General Fund revenues were $330,257 for the month. This is the lowest-earning month in the General Fund in this fiscal year by nearly $100,000. This is caused mostly by State revenues dropping nearly $225,000 from where they were in October. Therefore, the General Fund lost approximately $246,000 in November.
The impact of this large loss can be seen in the available cash section of the report. Total cash and investments are down approximately $767,000 from October. Last week, as you are all aware, several people spoke out about the increase in property taxes. There was some suggestion that the General Fund should foot the bill for the recent losses in the City’s pension funds. Due to the problems in the State revenue streams, I do not see this as a viable option. Although we still have investments of approximately $2.3 million, I believe we will need these reserves to make up the cash flow shortfall associated with slow payments from the State. As Jim Snider stated last week, the pension issue is not a one-year problem and when coupling these issues with slowing revenue streams, General Fund reserves could be exhausted at a rapid rate.
Also, the bill to the Illinois Municipal League Risk Management Association for the 2010 insurance premium was paid last month. To take advantage of a 2% discount, it was decided to pay the full amount of $491,279 out of General Fund reserves. The funds impacted by this expense are the Liability Insurance Fund and Workmen’s Compensation Fund. These funds are showing negative cash balances on this month’s report due to this expense. However, since the entire 2010 insurance premium has been paid, I do not expect to see much, if any, activity in either of these two funds until the end of next calendar year. By then, we will have received our 2010 property tax extension.
On another note, as of the end of November, we have received 100% of our approximately $1.5 million property tax extension for 2009.
Alderman Schenck stated that we need to continue to be prudent about dipping into our reserve funds.
Motion and second was made by Alderman Sarff/Rivero to send the Treasurer’s report to Council for approval. The motion carried by voice vote, and was unanimous.
2009-2010 Budget Amendment
City Administrator Jim Snider gave a report to outline the 2009-2010 budget amendment. The vast majority of the adjustments relate to simple clarification of items that were not set up correctly in the original budget. We have several account line items that function as both revenue and expenditures. The actual cash effect on the finances is limited to basically the following two accounts. The balance of the changes where anticipated and accounted for – just not properly budget for:
General Fund: <$105,085>
Civil Defense: 3,000>
Jim stated he would name a few of the amendments:
Dental Cobra:Increased $300.00 due to the item not originally budgeted.
Fireworks Donation: Increased $2,740.00 due to item not originally budgeted.
Vol. Workers Fund: Revenue increased $2,000.00 due to item not originally budgeted.
Short-Term Bond Proceeds: Increased $4,000,000 due to item not originally budgeted.
IH Site Scrap Iron Sales: Increased $10,000 due to item not originally budgeted.
Lake Development: Increased due to item not originally budgeted.
Police and Fire Pension: Increased due to item not originally budgeted.
Postage: Increased $3,000.00 due to item not originally budgeted.
Advertising: Increased $5,000.00 due to item not originally budgeted
Dues: Increased $5,225.00 due to the WIRC annual dues not originally budgeted.
Contractual Services: is a significant amount of an increase of $83,400.00 to reflect only partial amount of the dues to Spoon River Partnership, Hocker Fitzgerald Accounting, Humane Society, City of Pekin Inspection charges and PROS Consulting .
Planning and Zoning: is another significant increase of $31,000 to reflect the outsourcing cost of planning and zoning administrative services through Maurer and Stutz.
IH Go Bond Debt: Increased due to item not originally budgeted.
ESDA: Increased to $5,500 to pay for ESDA director’s salary of $500.00 per month.
K-9 Donation Grant: Increased to $5,500.00 due to item not being originally budgeted.
Audit Fund: Decreased $25,000 due to no 2008 levy proceeds.
Stimulus Projects that were added: The first being the Ash Street Sidewalk, and the 2nd being the North Main Street Sidewalks- Increased due to not originally budgeted MFT.
Water Plant Fund: New line item. Expense covered by W & S bond proceeds.
Liability Insurance Fund: Increased due to only half of bill with IMLRMA being budgeted. CA recommends all of 2010 bill be paid in November.
TIF IH Fund:Increased to reflect issuance of debt certificates.
TIF Misc Expenses: Increased $20,000 due additional misc. expense and $10,000 payment to IEPA for loan repayment. 1st of annual installments over the remaining life of the TIF.
Jim stated these are a lot of specific line item changes, and not a significant dollar amount increase. I anticipate further “housekeeping” type adjustments to be made in the final budget amendment in April, 2010.
Alderman Schenck stated that he thinks that some items in the budget could be put off as expenditures until later in the year then reviewed at that time.
City Administrator commented that other cities have laid people off but he does not feel we are at that point. The trends from the State of Illinois are disturbing. We have a lot of positive things happening in Canton, We anticipate increased revenue growth in our tax base with the Cook developmentand other things.
Alderman Schenck stated we are currently on pretty solid ground, but we don’t want to see this change in a negative direction.
Alderman Schenck stated the budget amendment requires a 2/3 majority vote.
Motion was made by Aldermen Schenck /Sarff to send to the Council as an ordinance for the first reading. The motion carried by voice vote, and was unanimous.
Unsuitable Soil Reimbursement
City Administrator Jim Snider indicated this needs to be held over to the next Mechanical Committee Meeting. Keith Plavec is still working on this item.
Benefit Planning Consultant Contract
Deputy Clerk Diana Tucker gave a report on the Benefit Planning Consultant Contract
Currently the city utilizes FSA, HRA and Cobra services with Benefit Planning Consultant.
The service agreement expires December 31st of each year- this is a twelve month contract
We currently have approximately 15 employees that participate in the Flexible Spending Account.
Cobra notices are sent by BPC upon notification from the City
HRA services are currently being utilized
BPC is responsible for issuing checks to employees for reimbursement of qualifying expenses
Most business prefers utilizing third party administrators to keep the health information confidential.
During the next year we negotiated lower rates, which are outlined in the TPA Service Agreement received in your packets.
I will highlight just a couple
The monthly service charge was reduced from $7.50 per person enrolled in the plan to $6.00 per person
The monthly minimum fee was reduced from $150.00 to $100.00 per month.
The cost for Cobra administration will remain at $1.00 per person on the group health plan per month.
I received a quote from PayFlex- a company that coordinates the services with BCBS electronically. The rates were substantially higher.
Implementation fee of750.00
Administration fee$6.25/person
Enrollment fee$250.00
Takeover of previous plan$2,500.00
I would recommend renewing the service agreement with Benefit Planning Consultant for the 2010 calendar year at the negotiated rates received.
Motion and Second was made Alderman Sarff/Rivero to enter into an agreement with BPC for the upcoming year. The motion carried by voice vote, and was unanimous.
IML Risk Management Bill.
City Administrator Jim Snider reported:
Last month, the Council approved the full payment of $491,279.58 (in order to receive 2% discount) to IML Risk Management for our annual insurance premium for city operations. I also reported that we have an option to go with the min/max plan Option #1 in the amount of $421,026.61. We would save $70,252.97 up front but would assume the additional risk of losing an additional $70,000 if our performance for 2010 exceeds the 120% Claim Loss Fund.
IML Risk Management has provided me a spreadsheet showing our total experience over the last five years and how we would have done if we were in the min/max plan. We would have lost an additional $19,678 under the min/max plan versus the full premium price. However, if you just look at the last three years, we would have come out ahead by $58,947.
An additional variable to consider is that two-thirds of municipality’s across the state who are eligible ($100,000 min insurance coverage) to participate in the min/max plan do so.
In order to garner a cost savings, we would probably need to commit to the min/max plan for a series of years. We would, however, have the option to pay the full premium each year.
There is no clear cut advantage to go with the min/max plan. My recommendation is that we go ahead and enter the plan, while budgeting the full loss potential under the plan. Again, our limit would only be the 120% of the claim loss fund. In other words, another $70,000 in 2010 if we have a poor experience year. This coverage is only offered to cities with over $100,000.00 in coverage. 2/3 of the cities in the state of Illinois are in the plan.
Alderman Sarff asked if this premium was for all of our liability coverage. City Administrator Jim Snider replied that it is. Alderman Eric Schenck said he thinks it would be worth trying to have the min/max plan.
Motion and second was made by Aldermen Schenck/Rivero, to draft a resolution and present to the Council for consideration then forward to the IML to switch to the Min/Max plan. The motion carried by voice vote, and was unanimous.
53 Week Pay Date Issue
Mayor Kevin Meade reported that every 7 years there are 53 Friday’s in the year. The problem with 53 pay checks is people are getting an extra weeks pay in the year. We will need to decide how we will adjust the pay and not provide an extra weeks pay. The amount for 1 weeks pay is approximately $130,000.00. Mayor Meade stated that he is currently working with the Union’s to see what the best way is to deal with the issue.
No action required.
The Finance Committee adjourned at 7:15 p.m.
Legal & Ordinance
Chairman
Approval of Closed Session Minutes.
City Attorney Chrissie Peterson stated that she would recommend that the executive session minutes be reviewed in executive session, then come back to that item for action after the executive session.
Mayor Kevin Meade asked the Chief to remind people about the snow removal ordinance.
Chief Dan Taylor reported that anytime we have more than 3 inches of snow, cars need to be removed from the city streets within 12 hours. The street department needs to be able to remove snow from the streets.
Legal & Ordinance Committee adjourned at 7:18 p.m.
Community & Industrial Development
Alderman Jorge Rivero, Chairman
Update from Mark Rothert SRPED Executive Director.
Cook Canton—over 700 people have signed up to take the Cook Canton screening tests. The passage rates on such tests remain high. Career Link/SRC now have a pool over 170 who have passed all five tests and are ready to fill out applications later this month.
TIF redevelopment agreement for business expansion will come up before the city council for deliberation.
Canton Main Street held a meeting on 12/3/09. The Olde Fashioned Christmas Walk is scheduled for December 11, 2009 from 5:00 p.m. to 7:30p.m.
Visited with Eilish Tuffy of Landmarks Illinois concerning historic preservation projects in downtown Canton.
Special Events/Tourism:
Planning for 2010 open-air market
Wrap up of Muchkin Masquerade
The Big Red Christmas Stocking contest will be this Friday at the Christmas Walk
Dana submitted the calendar of events to the 2010 Peoria area visitors convention guide- and will be printed in January.
Website Re-Design
Completed six-class schedule of Dreamweaver classes at SRC Tech Center.
Reviewed critical issues associated with using Dreamweaver to create a new website to replace current site hosted by GovOffice.com
Contacted GovOffice to research options for customizing current site with upgraded template and custom graphics, at a cost of $2,000.
Reviewed other sites of large and small populations to develop a “feel” for how they showcased their communities on the Web.
Met with Missy Towery and Mark Rothert to discuss results of the research, and to gain their input on the development of the website.
Created a report/analysis to be presented to Mark, Missy and Rick Klinedinst at the next regular Marketing Committee meeting comparing the risk and benefits of Dreamweaver vs. GovOffice.com.
Business Attraction and Support:
The SRPED is working with the following business development opportunities. Please call me if you would like to talk privately about any of these:
Talked with real estate broker concerning available properties in town for retail expansion. Broker made site visit to Canton last week.
Conference call with local officials and potential expansion of retail business.
Talked to a business lead about the former Heilig-Meyer building.
Talked with prospective buyer/retailer for former Drow Lot, recommended that the City Council issue another Request for Proposal (RFP) to solicit interest in the property. The committee agreed.
Mayor Kevin Meade stated we should take this back out for bids, but this would need Council action.
Motion and second was made Schenck/Sarff to re-bid the Drow Lot. Motion was carried by voice vote and was unanimous.
Grant Work:
Performed grant administration and reporting for DCEO, USDA, and Hotel/Motel tax grants.
Other:
Talked to Peoria Area Chapter of SCORE concerning development in Canton.
Canton is now on Facebook with a Canton, Illinois community page. Become a “fan” to stay up to date on events and happenings in our community.
Hotel/Motel Tax Request for Website Upgrade (Mark Rothert)
Summary
Hotel/Motel tax fund request to upgrade design of existing Canton website
Background
The current website was first created in 2005 using a company called GovOffice.com and uses one of the free templates they supply as part of their package. This site was initially created as a web portal and one-stop online destination for information about Canton. It has served that purpose well. Current contributors to the website include the Spoon River Partnership, the City, the Canton Area Chamber of Commerce, and Canton Main Street. Links to other community non-profit organizations and resources are also listed. Because a GovOffice template is used, there is a certain ease of updating information that is useful when multiple contributors are accessing the site. However, a template, by nature, sacrifices customization and their have been desires by council members and contributing website administrators to enhance its design and aesthetics.