MINUTES OF THE FINANCE COMMITTEEMEETING OF THE CITY OF HERRIN, ILHELD IN THE COUNCIL CHAMBERS SATURDAY, NOVEMBER 21, 2015 AT 9 A.M.
Chairman Paul York called the meeting to order at 9:00 a.m. In attendance were finance committee members: Alderman Paul York and Alderman Robert Craig along with Mayor Steve Frattini, Treasurer Carl Goodwin, Alderman Sheila Ahlgren, Alderman Steve Miller, Alderman Bill Sizemore, City Clerk Shelly Huggins, Budget Director Carrie Cravens and Public Works Director Tom Somers.
Alderman York thanked Carl Goodwin, Treasurer for all of his hard work on the tax levy. Carl handed out his proposed levy suggestions. We are holding Rend Lake check and internal pension checks currently. We have to improve our revenue. We will probably have to borrow in December as there are 3 payrolls. Since 96 or 97 the tax levy was raised in 2008 and 2013 and has been down every other year. Alderman York stated that this is as good time as any to increase as other municipalities are doing the same. Mayor Frattini stated that we are below other communities. Alderman Craig stated that when we comparable our levy is the lowest and our salaries are the highest. We need to meet in the middle. He is not in favor of the increase but it may be a necessary evil.
Mayor Frattini stated that the council and department heads have been economizing and have pared down the operating expenses. Going forward we need to place the 2nd tier in our contracts. Public Works is against the 2nd tier. Alderman Craig stated that once we pay Huffman & Brewster fees we are better off offering something rather than pay attorney fees.
The sewer fund owes general fund approximately $535,000. Public Works director Somers stated that he has proposed a $1.62 increase on the minimum sewer bill. That way sewer fund can pay back the internal funds it owes. We have about an 87% accuracy with our water meters. He is working with a firm on a proposal to implement a new system. The readings would come directly to City Hall with one billing cycle per month. There would be no manual readings. The cost over 15 years is $362,368 annually. Mayor Frattini stated that our numbers currently could be flawed. With the new system there would be real time data. Customers would have access to their consumption use. Tom stated that it may take up to a year to see the extra income from the system. The newer meters already in place would stay. He stated that it will pay for itself and generate surplus income with no upfront costs.
Alderman Miller stated that he had always said he didn’t want to raise taxes. He suggested that we may need to eliminate more positions, we have already done two. We should have no part time employees and cut costs instead of burdening the tax payer.
Alderman Craig stated he has reservations with the new metering system not opposition. How long would it last and in the past we have only gotten positives not any of the negatives. Somers stated that he would like to have the company come in and present their proposal. Alderman Craig stated it is a cash flow problems and where would the scrap dollars from old meters go?
Alderman York stated we should check with a community that currently uses it. Somers stated that now they are clumsily read with 3 different types of meters.
Treasurer Goodwin stated that the pensions are really hurting us. We can’t just stop raises, freezes would have to happen through mutual agreement. Alderman Ahlgren is concerned with employees continuing to ask for raises when they are paid well. Alderman Craig stated that for the last 15 years raises have been between 60 cents and 1 dollar per hour. This year we tried to cut to about 40 cents per hour but with Patty just receiving the raise she did the union did not go for it.
Alderman Miller stated how the fireman have the best City salaries. Alderman Craig stated that there are 12 of them and they work 900 hours per year over average employees. We could have another crew for the extra hours. Alderman Miller stated that we have to make changes.
Alderman Craig stated that they did everything they could in the clerical negotiations. Alderman Miller sated that we have to look for changes and we have been elected stewards of the City and we have to do what is right. Alderman Craig stated that we must have the right information and can only work with data we receive. Mayor Frattini stated that the data is improving and stated that proposed sewer increases were done to have the least impact on residents.
There will be a proposed levy public hearing on Friday, December 4th at 10 a.m. at City Hall.
Meeting adjourned at 10:15 a.m.