City of Belleville City Council met December 11.
Here is the minutes provided by the Council:
Mayor Mark Eckert called this meeting to order.
Mayor Eckert explained the disaster procedures. Mayor Eckert reminded anyone speaking this evening to step up to a microphone because the meetings are being taped and posted the next day on the website.
Mayor Eckert requested City Clerk Jennifer Gain Meyer to call roll. Members present on roll call: Alderman Hazel, Alderman Kinsella, Alderwoman Pusa, Alderman Buettner, Alderman Randle, Alderman Tyler, Alderman Anthony, Alderwoman Schaefer, Alderman Gaa, Alderwoman Stiehl, Alderman Weygandt, Alderman Elmore and Alderman Barfield.
Alderman Ovian, Alderman Dintelman and Alderman Wigginton excused.
Roll Call Department Heads:
Roll Call Department Heads: City Clerk, Jennifer Gain Meyer and City Treasurer Hardt. Finance Director, Jamie Maitret and Human Resource Director, Sherry Favre.
City Attorney Hoerner excused.
Department Heads Excused: Police Chief, Bill Clay; Fire Chief Tom Pour; City Engineer, Tim Gregowicz; Director of Maintenance, Ken Vaughn; Health and Housing Director, Bob Sabo: Director of Parks and Recreation, Debbie Belleville; Director of Public Works, Jason Poole; Director of Wastewater, Royce Carlisle; Director of Economic Development, Annissa McCaskill and Director of Library, Leander Spearman.
Pledge:
Mayor Eckert led the Pledge of Allegiance.
Public Hearing:
Public Hearing Open: 6:32 p.m.
Mayor Eckert read the following statement:
For tonight's hearing please be reminded that Section 18-80 of the Illinois Truth and Taxation Law pertinently provides that all hearings shall be open to the public and the corporate authority of the taxing district shall explain the reasons for the proposed increase and shall permit persons desiring to be heard an opportunity to present testimony within a reasonable time limit as determined. (ILCS 35 200/18-80.)
Mayor Eckert stated the city is holding this hearing, this is annual; however, there have been Some years it was not required by law. (increase was under 5%)
Finance Director, Jamie Maitret, stated that some may have seen in the newspaper the 2016 levy extension from the prior year was $10,086,011. The proposed levy is $11,294,375. This is $1.2 million increase or approximately 12% from the prior year. The levy is going up approximately $1 million (the fireman pension and police pension contribution). These amounts of $3.4 million levy for each are recommended minimum contribution from their independent actuary study that is done annually by the pension board to determine what needs to be contributed. This not only funds current pensions but funds the unfunded liability that has continued to grow over the years as decades ago this city council's forefathers did not fund the pensions properly.
The fireman's pension is approximately funded at 46% and the police pension is funded at 55%. The city was approached by Standards and Poor, the rating agency, in which they downgraded the bond rating due largely in part to not funding the pensions to a higher percentage. Therefore, this has affected us in other ways that can drive up interest costs on debt, as well as, other funding Sources. The city administration is proposing to fund the pensions to the level recommended by the pension actuary.
The other increase this year is under General and Community Assistance. These were line items that were previously levied under Belleville Township. The Belleville Township was dissolved and the City of Belleville assumed the services.
If the pensions are not funded the pension boards can go to the State of Illinois and the state can withhold other funding sources to the city and give them to the pensions. The pension boards will get their money regardless. The council must decide how to fund them i.e. real estate tax levy or another funding source.
Mayor Eckert stated the city's forefathers have chosen to fund the pensions through property tax. Many people over the years have said their property tax pays for police and fire. The property tax does not pay for the general fund i.e. purchasing fire trucks, paying firemen, paying policemen. The property tax has always taken care of and 60% is police and fire pension, a percentage of IMRF and now general assistance.
Alderman Weygandt asked how many years will it take to catch up; Mayor Eckert stated in 2040 it will be 100% funded. Alderman Weygandt stated if the city can pay the employee $30,000/yr
over 20 years they can retire at $2.5 million.
Mayor Eckert stated there are five (5) proposals that have been submitted to legislation from IML regarding pension reform.
Director of Finance, Jamie Maitret, stated the police/fire pensions are dictated by the state Statute.
Mayor Eckert Stated the city has funded the pensions, as state mandated, since 1997. In 1997, the city increased the tax levy 32%. Unfortunately, prior to 1997, for many years, the pensions were not properly funded they were underfunded and that is why there is a deficit.
Public Participation:
Alicia Bradley-
Ms. Bradley addressed the Truth and Taxation Act was enacted in 1991.
What year was the total property taxes extended or abated prior to 2016?
What was the total taxes extended or abated total dollar value prior to 2016?
Is this the first time a notice was published in a newspaper for a public hearing regarding the truth taxation because the tax levy is more than 5%?
Can the city council provide the taxpayers a comparison amount that is proposed, property tax levy from 2014 to 2015 prior to the city council for approval of 50 special use permits, which in turn, allows the 50 residential properties to no longer be included on the tax rolls?
Can the city council provide the taxpayers a comparison amount of its proposed property tax levy to the amount of taxes extended for the district in the prior years of the initial onset the elected officials allow any residential property to be used for dormitory usage?
Ms. Bradley stated, in her opinion, this information will help the taxpayers understand that the truth and taxation act which was enacted as losses July 29, 1981 has been implemented appropriately by the elected officials and all citizens have been properly informed and included in the truth regarding the city taxation policies and procedures.
Mayor Eckert requested Ms. Bradley to email her questions and the city will provide the answers to her and the media.
Michael Hagberg-
For every two dollars you raise the levy an additional one dollar will be collected in TIF funding. When you raise this year's levy by $1.2 million the taxpayers of Belleville will be forced to also pay $500,000 in additional TIF taxes. This means that the Belleville taxpayers are going to have to reach into their pockets and hand over an additional $1.7 million to City Hall. And to note, this doesn't include the expected increases for the County and School districts.
The BND quoted the city's finance director has estimated the increase to be in the range of $30 to $80 for the owner of a $100,000 home. He once again, will have to disagree with her figures. Her estimate of 30 cents per hundred EAV would mean a $100,000 owner occupied home would See an increase of $82 and for a non-owner would see an increase of $100. He will come back in April and We can see who's estimated increase is closest to the actual.
Now let's talk about the public pensions.
He's Sure were going to hear that "Oh its not my fault, the pensions are mandated by the state'. Well it is our fault. The city has known for a long time that the current pension system is broke and cannot be sustained into the future.
This city and other municipalities need to force a change in the current system, and do it soon.
Mr. Eckert, when you took office 12 years ago, the Firemen and Police Pensions liabilities were
funded at 44% and 52% respectively. This year they are funded at a slight decrease of 41% and 52%.
During this time the property tax levy has more than doubled from $5.5 million to $11.3 million.
The current pension projections call for a payroll increase of 4% year per year. This can be accomplished by salary increases or hiring additional personnel that pay into the system. Either
way, it's a pyramid scheme. The higher the salaries the higher the future liability.
It is also assumed that pension investments will earn 7% interest year over year. When this doesn't happen its the taxpayers that are forced to fund the shortfall.
It's time for this council to discuss the possibility of converting the Fire, Police and IMRF pensions into a 401K style of pension. Much like the private sector where the employee contribute and are matched by their employer and there is no future liability beyond the current year. The employees would then be free to control their own retirement fund.
Year after year, of ever increasing property taxes, hasn't Solved the pension problem. Higher taxes are forcing those living on a fixed income to sell and leave the city. Higher taxes are also
discouraging home buyers from settling in Belleville.
The time is now to step up to address the problem, formulate a long term solution and get it done
SOO1.
Public Hearing Closed: 6:53 p.m.
Adjournment:
Mayor Eckert adjourned the meeting at 6:54 pm.
http://www.belleville.net/AgendaCenter/ViewFile/Minutes/_12112017-1594
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