Metro East Sun

City of Belleville Finance Committee met Nov. 13.

Here are the minutes provided by the committee:

In Attendance: 

(A) Finance Committee Members 

Bryan Whitaker, Alderperson 

Carmen Duco, Alderperson 

Scott Ferguson, Alderperson 

Raffi Ovian, Alderperson 

Shelly Schaefer, Alderperson 

Chris Rothweiler, Alderperson 

Phil Elmore, Alderperson 

Nora Sullivan, Alderperson 

(B) Guests 

Kara Osthoff, Alderperson 

Michael Hagberg 

(C) Staff 

Jamie Maitret, Finance Director 

Patty Gregory, Mayor 

Jason Poole, Director of Public Works 

Matt Eiskant, Police Chief 

Lt. Rob Thomason, Police Department  

Chairman Whitaker called the meeting to order at 7:00 pm. Roll call was taken. All 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 October 12, 2023 meeting. 

Motion 

Alderperson Ferguson made a motion to approve the minutes from October 12, 2023. Alderperson Schaefer seconded. All attending members voted yes. The motion passed. 

Worker’s Compensation/Property/Liability Insurance Renewal 

Jamie Maitret explained that this renewal is not for the employee medical insurance, just worker’s compensation/property/liability insurance. Our broker provided a packet of information to the committee about all of the market factors driving this renewal increase, and itemized the breakdown of the premiums. Overall, the total premiums, including cyber liability coverage, are increasing by about 15%. This is about average with what the entire insurance market is experiencing. This is more than what was budgeted, so budget amendments will need to be made to cover the cost. The brokers did approach ICRMT about reducing the premium. ICRMT offered to reduce the total premiums by $75,564, but the property deductible would have to go from $25,000 to $50,000, and the worker’s compensation deductible would have to go from $250,000 to $400,000. With this change, one bad worker’s compensation claim would more than wipe out the savings. Jamie did not feel this savings was worth the change in deductibles, and neither did the broker. Discussion followed. 

Motion 

Alderperson Elmore made a motion to approve the worker’s compensation and property/liability insurance renewal with ICRMT, as recommended by our broker. Alderperson Ferguson seconded. Roll call vote was taken. Alderpersons Duco, Ferguson, Ovian, Schaefer, Rothweiler, Elmore, Sullivan and Whitaker all voted yes. The motion passed. 

Six New Trucks for Public Works 

Jason Poole explained that overall we would be purchasing 6 new trucks: 2 for the Street Department, 2 for the Parks Department, one for the Cemetery Department, and one for the Sanitation Department. The Cemetery Truck was actually ordered last year, but the State bid vendor had to cancel the order because they did not have trucks available. Broadway Ford can get the trucks, and they are actually under the Illinois State bid price by about $450. 

Motion 

Alderperson Rothweiler made a motion to waive the formal bidding procedures and purchase six (6) new 2024 Ford F-250 pickup trucks from Broadway Ford for $288,514 for the Public Works Department, with Broadway Ford matching the Illinois State bid price. Alderperson Schaefer seconded. Roll call vote was taken. Alderpersons Duco, Ferguson, Ovian, Schaefer, Rothweiler, Elmore, Sullivan and Whitaker all voted yes. The motion passed. 

Bank Financing for New Automated Sanitation Truck 

Jamie Maitret explained that around this time last year the City Council approved the purchase of a new sanitation truck. The truck will be delivered by the end of the month, so we contacted several local banks to get quotes on financing rates. We received rates from three banks, with the lowest being Clayton Holdings, LLC (Commerce) at 4.77% for this three year loan. 

Motion 

Alderperson Schaefer made a motion to approve bank financing from Clayton Holdings, LLC at 4.77% interest for financing of a new automated sanitation truck. Alderperson Ferguson seconded. Roll call vote was taken. Alderpersons Duco, Ferguson, Ovian, Schaefer, Rothweiler, Elmore, Sullivan and Whitaker all voted yes. The motion passed. 

Bank Financing for New Ladder Fire Truck

This is for financing of the new ladder fire truck that was purchased in July, and should be delivered before the end of the month. We received rates from three banks, with the lowest being Clayton Holdings, LLC (Commerce) at 4.77% for this seven year loan. We do have budgeted to make a $250,000 down payment on the truck as part of this purchase/financing too. 

Motion 

Alderperson Schaefer made a motion to approve bank financing from Clayton Holdings, LLC at 4.77% interest for financing of a new ladder fire truck. Alderperson Ferguson seconded. Roll call vote was taken. Alderpersons Duco, Ferguson, Ovian, Schaefer, Rothweiler, Elmore, Sullivan and Whitaker all voted yes. The motion passed. 

City Policy Regarding Billing for Special Events/Hiring of City Services Chief Eiskant and Jason Poole are both in attendance for discussion. There is currently a City policy that spells out which events receive a 20% discount on services, and that existing parades are not charged. We do charge the exact cost for most employees that work events, but a set rate for police officers, mainly due to the much larger range of hourly rates for officers/sergeants that can sign up to work the events. Chairman Whitaker did suggest that if we raise the police rates, we do need something in place that these amounts increase annually with the increase in union contract rates. Discussion followed, especially concerning billing actual rates versus an average, what types of events/security details our staff is hired for, and the discounts fitness events are receiving. Discussion also followed concerning parade costs and billing. 

Motion 

Alderperson Elmore made a motion to table this discussion until the December Finance Committee meeting. Alderperson Schaefer seconded. All attending members voted yes. The motion passed. 

Discussion of 2023 Tax Levy 

Jamie Maitret stated that the first item she usually waits for to determine the real estate tax levy that will be needed for the next year is the independent actuarial funding reports for the police and fire pensions. We have received those, and unfortunately the pensions did not earn great investment returns over the last year. The reports are showing that we will need to contribute almost $1 million more than we did last year. This means we are looking at an approximate 8% increase in our tax levy. The only lines that she is proposing to increase are the fire pension, police pension, and the tort liability line. This line is used to pay liability claims from lawsuits and worker’s compensation claims, and she is proposing to raise this line $50,000. Discussion followed. There will be a Truth in Taxation hearing at the City Council meeting on 12/4/23, and the Finance Committee will consider approval at the meeting on 12/11/23. If there are any alderpersons that have another idea of how to fund the pensions without the tax levy increase, they need to contact Jamie immediately to propose other ideas. 

Motion 

No motion was needed at this time.

Revenue Sources 

Motion to receive and file. 

Motion 

Alderperson Schaefer made a motion to receive and file the revenue sources. Alderperson Elmore seconded. All attending members voted yes. The motion passed. 

Motion to Adjourn 

Alderperson Rothweiler made a motion to adjourn at 8:12 pm. Alderperson Schaefer seconded. All attending members voted yes. The motion passed.

https://www.belleville.net/AgendaCenter/ViewFile/Minutes/_11132023-3128