City of Belleville Finance Committee met March 13
Here are the minutes provided by the committee:
In Attendance:
(A) Finance Committee Members
Bryan Whitaker, Alderman
Scott Ferguson, Alderman
Raffi Ovian, Alderman
Shelly Schaefer, Alderman
Chris Rothweiler, Alderman
Phil Elmore, Alderman
Nora Sullivan, Alderman
(B) Guests
Kent Randle, Alderman
Kara Osthoff, Alderman
Michael Hagberg
(C) Staff
Jamie Maitret, Finance Director
Sarah Biermann, Treasurer
Mayor Patty Gregory
Dean Hardt, Purchasing
Sarah Herzing, Police Department
Leander Spearman, Library Director
Chief Matt Eiskant, Police Chief
Jason Poole, Public Works Director
Scott Tyler, Health & Housing Director
Sal Elkott, City Engineer
Eric Walls, IT Director
Chief Lloyd Stinson, Fire Chief
Kathy Kaiser, PR & Communications Director
Randy Smith, WWTP Director
Chairman Whitaker called the meeting to order at 7:00 pm. Alderman Duco was excused. All other committee members were present. Chairman Whitaker introduced guests. Emergency evacuation procedures were announced.
Chairman Whitaker opened public participation. There was no public participation. Public participation was closed.
Chairman Whitaker asked for a motion to approve the minutes from the February 13, 2023 meeting.
Motion
Alderman Schaefer made a motion to approve the minutes from February 13, 2023. Alderman Ferguson seconded. All attending members voted yes. The motion passed.
Contract with KONE Inc. for Campus
Dean Hardt explained that this is for emergency cellular phone service for the elevators at the Campus. Discussion followed.
Motion
Alderman Schaefer made a motion to approve contract with KONE Inc. to provide emergency cellular service to three elevators located at SIJWDC, with equipment and installation cost of $2,250 total, with monthly fee of $105 for three lines. Alderman Ferguson seconded. Roll call vote was taken. Alderman Ferguson, Ovian, Schaefer, Rothweiler, Elmore, Sullivan and Whitaker all voted yes. The motion passed.
Two New Sanitation Trucks
Jason Poole explained this purchase would be for one recycle truck and one yard waste truck. Both are rear loaders. The trucks would likely not be delivered until early calendar year 2024. Discussion followed.
Motion
Alderman Rothweiler made a motion to approve waiving the formal bidding procedures and utilizing Sourcewell contract #091219-NWYto purchase two new 2024 M2 Freightliner 20- yard load Sanitation trucks from Elliott Equipment Co. in the amount of $418,110. Alderman Ferguson seconded. Roll call vote was taken. Alderman Ferguson, Ovian, Schaefer, Rothweiler, Elmore, Sullivan and Whitaker all voted yes. The motion passed.
Health Insurance Renewal for 5/1/23
Jamie Maitret explained that the broker marketed our medical, dental, and life insurance plans. The vision plan approved last year was locked in for two years, so that one is not up for renewal this year. BCBS originally came in with a 5.8% increase, but the broker was able to negotiate it down to an only 2% increase for medical. Dental is no increase from last year, and still with BCBS. Life insurance with Standard Life is going up for the first time in a long time. When looking at it as a percentage it is a 21.6% increase, but it only amounts to $1.20 per person per month increase. Staff is recommending these renewals, as well as for the City to cover all of the monthly basic life premiums for each active full-time employee, instead of factoring it into the employee/employer premium split as in the past. Discussion followed.
Motion
Alderman Elmore made a motion to approve health insurance renewal effective 5/1/2023, including medical, dental, and life insurance, as recommended by staff and our insurance broker. Alderman Schaefer seconded. Roll call vote was taken. Alderman Ferguson, Ovian, Schaefer, Rothweiler, Elmore, Sullivan and Whitaker all voted yes. The motion passed.
Utility Savings & Possible Resolution with Good Energy
Jamie Maitret explained that this doesn’t currently require a motion, but she will likely be bringing a resolution forward to the next Council meeting that she wanted the Committee to be aware of. Most of the City-owned utility accounts receive the electric supply through a third-party contract with Constellation Energy. There are some accounts that have been added since that contract, that couldn’t get onto that contract. The biggest ones are the Campus accounts. Also, since our electric franchise agreement was renewed last month, Ameren no longer gives a 50% discount on street lighting. We are therefore now able to market the street lighting accounts out to third party suppliers to try and get a better rate. Due to the timing of needing to sign contracts very quickly after pricing is received, she is asking the Council for a resolution that will give her and the Mayor authority to sign contracts for electric and gas supply to City-owned accounts, as long as recommended by our consultant Good Energy, and that there is a savings versus the Ameren rate. Discussion followed.
Motion
No motion at this time.
FY2023-2024 Budget Review & Discussion
Jamie Maitret gave an overview of the budget process and then started to go through the budget explanations. Jamie stated that the total proposed budget for all funds for the fiscal year 23/24 is $138,372,508. This is up approximately 2% from the current fiscal year original budget of $135,564,775.
Jamie discussed the general fund budget and made the following comments:
∙ This is the first draft you are seeing but cuts and adjustments have been made to bring this budget forward balanced, showing a surplus for the year of just $2,752.
∙ Before discussing the new proposed budget, current year projections were discussed. We should end the year just about breaking even. Projections for both revenue and expenditures are running at about 95%.
∙ The total budget request in the General Fund for next year is $39,501,409. This is up approximately 8.3% from the current year original budget of $36,483,601. This is mainly due to several major revenue sources being up dramatically this year, and estimates show those trends to continue for the next fiscal year, especially with State income tax, replacement tax, sales tax, and utility tax.
∙ For expenditures requested, the main increase is to our public safety departments. The Police and Fire budgets increased a total of just over $1.8 million collectively.
∙ This budget includes many new items that the Mayor and aldermen have presented as priorities, including:
o Hiring new police officers (78 budgeted positions, up from current year original budget of 72)
o Adding a third position in IT
o Adding 3 new Public Works positions (including 2 in Sanitation to help with large item cleanups throughout the City)
o Adding a new Maintenance Manager
o New equipment for PD & FD
o Demolitions via General Fund and ARPA money
o Infrastructure via ARPA money
Jamie also noted the following highlights of the Sewer funds:
∙ Total sewer budget is approximately $25.6 million.
∙ This is a balanced budget by about $23,000 in the Operations & Maintenance account, after making all required IEPA debt payments.
∙ We are finishing up with Phase 5 of the LTCP (approx. $10 million) from the ARPA funds.
∙ We have another $5.8 million budgeted for engineering and construction on sewer projects.
∙ No other significant changes from the current year.
Jamie noted the following highlights of the Motor Fuel Tax (MFT) Fund:
∙ State has increased the MFT revenues over the past few years, and we have received all Rebuild Illinois funding allotments.
∙ MFT spending for next year is budgeted at approximately $5.4 million.
∙ Some of this is rollover of current year projects that are not completed yet. Projects include a section of Forest Avenue, Fourscore improvements, Allsup Dr improvements, Kilmar Woods improvements, as well as increased funding for general infrastructure maintenance, sidewalks, asphalt patch, concrete patch, and pavement markings.
There is a breakdown of each TIF’s budget included in the supporting documentation for the budget. Some of the major projects budgeted for TIF 3 include:
∙ Equipment or vehicles for almost every department that uses major equipment or vehicles.
∙ Belle Valley flooding remediation
∙ Upgrade of Alum Feed facility for WWTP
∙ Finishing paying many grant match projects, including 6th – 12th Street Streetscape, Centreville Ave, East A St, and N. Illinois.
∙ Freeburg Ave roundabout
∙ Grant matching funds to finish West Main 12th-17th St, if grant is approved
∙ Raab Ave – 17th-19th
∙ South 16th St
∙ 6th Street reconstruction
∙ Lebanon Ave
∙ State St school sidewalk (grant)
∙ Contributing approx. $55,000 towards IL159 resurfacing that the State is doing
∙ Pleasant Hill Park, Bellevue Park, Citizens Park, and Rotary Park improvements
∙ Economic Development Strategy/Plan
∙ Building maintenance improvements to several City-owned buildings
∙ Increased funding for general infrastructure maintenance, sidewalks, asphalt patch, concrete patch, and pavement markings.
∙ Transfers for salaries related to administration of the TIF, as well as transfers to other funds for debt service payments for debt associated with road projects and building renovations in those TIF areas.
Among various different funding sources, especially ARPA, MFT, and TIF, this proposed budget includes more than $23 million of engineering and construction of new infrastructure improvements.
While this was a quick overview of the proposed budget, Jamie reiterated that she is always available to discuss any parts of the budget further and in greater detail. She urged each alderman to contact her with any questions or concerns well in advance of the meeting in April when the budget will be voted on. A budget must be approved by May 1st.
Jamie concluded the discussion by thanking all of the department heads, staff, and elected officials that worked together to get to this point and present a budget. They all work very hard for this community each and every day. She then asked for any questions on the budget as presented. Discussion followed about several lines in the budget that changed, and the reasoning why.
No motion was needed at this time. The budget will be voted on in April.
Revenue Sources
Motion to receive and file.
Motion
Alderman Ferguson made a motion to receive and file the revenue sources. Alderman Schaefer seconded. All attending members voted yes. The motion passed.
Alderman Elmore requested that the City revisit the business license program discussion. He thought the City did not have a business license program. Jamie stated that we do, just not every single business is required to have one, just certain types of businesses. Jamie suggested that he follow up with the City Clerk and the City attorney. Discussion followed.
Motion to Adjourn
Alderman Schaefer made a motion to adjourn at 7:46 pm. Alderman Ferguson seconded. All attending members voted yes. The motion passed.
https://www.belleville.net/AgendaCenter/ViewFile/Minutes/_03132023-2967
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