Loading...
HomeMy WebLinkAbout11-02-2020 Clerical Committee Meeting Minutes CLERICAL COMMITTEE Monday, November 2, 2020— 5:30 p.m. CITY HALL 2 North Main Street, Canton IL 61520 VIA ZOOM # 827 9850 8118 Aldermen in attendance: Alderman Craig West, Andra Chamberlin, John Lovell, Justin Nelson, Jeff Fritz, Quin Mayhew Staff in attendance: Mayor Kent McDowell, City Clerk Diana Pavley Rock, Attorney Chris Jump, City Treasurer Crystal Wilkinson, City Engineer Keith Plavec, Comptroller Beka Schultz In the audience: Trygve Meade and Kim Bunner representing Parlin Ingersoll Library News Media- Fulton Democrat, Ledger Finance Alderman Andra Chamberlin, Chairman DISCUSS, CONSIDER AND VOTE ON A RECOMMENDATION TO COUNCIL REGARDING THE LEVYING AND ASSESSING TAXES FOR CORPORATE PURPOSE OF THE CITY OF CANTON, ILLINOIS FOR THE FISCAL YEAR BEGINNING MAY 1, 2020 AND ENDING APRIL 30, 2021 Treasurer Wilkinson explained that she looked into the city sales tax and the cannabis money. The Illinois Municipal League does not have any estimates for these items, but they do have estimates for the rest of the LDGF funds the City receives. The municipal sales tax is currently paid on a per capita basis. There has been an increase in this tax for the last few months. In October the City received $194,629.60 for the 1% share-which does reflect an increase. The City sales tax is up and we received$112.537.44 in October-which also reflects an increase. The City's 3%cannabis sales tax had the first distribution,which reflects an amount higher than anticipated. The City received $16,222.43 which could translate to over $190,000.00 annually. Treasurer Wilkinson said the City is currently doing well on the sales tax revenues, but there is much uncertainty due to the COVID pandemic. Comptroller Beka Schultz distributed a reporting showing cash balances, expenditures and reserve. The report only reflects the levied funds-since this is what is being reviewed. Beka said the City will need to decide if a truth in taxation hearing will be necessary, or to have the city try to absorb the library's request in the levy without going over the 5%that would trigger a hearing. Further discussion took place regarding the specific funds. Alderman Nelson expressed concerns about lowering the funds-and then trying to determine later how to make up the shortages. The City has several properties needing demolition which has significant expenses involved with them. Reducing funds could create some significant problems with demolitions. The sidewalk fund also has several projects scheduled-so reducing these funds would not be recommended. Comptroller Beka Schultz explained that it is possible to pass a levy that would not require a truth in taxation hearing, but the city would have to increase property taxes over the next four years— at a rate of 4.0% each year. The City would also need to dip into reserves for this to take place. This is not a good scenario- especially with the increases in pensions over the last several years. Alderman Lovell said he does not want to put any additional burden on the tax payers, especially in the uncertain times that we are facing. Alderman Lovell said there are always more options, rather than to tax more. One of those options would be to cut services. Alderman Lovell asked if we are to the point to either vote to raise taxes or cut services. Alderman Nelson said he believes it is the only option for the city at this point. Alderman Nelson said the City has cut personnel in every department possible, so the only other option is to cut services. Alderman Nelson said he has further concerns about going into reserves- and then risking running out of reserves if pension costs spike in the next few years. Comptroller Beka Schultz explained that If the city requests nothing more than what was requested last year—and only add the library's request, this would be a 10.2% increase. Motion was made by Alderman Nelson that we move forward at the same rate as the previous year and add the library's request to make it a 10.2 request and have a truth in taxation hearing. Discussion: Trygve Meade said the Library's next meeting will be November 18, 2020. They will be revising the request previously sent to the City in March so the corrected EAV can be included. The City will receive a revised request letter from the library after the November 18, 2020 meeting. Attorney Jump reminded everyone that the final levy needs to be passed by the last Tuesday in December. The City needs to pass an estimate at least 20 days in advance of what the levy will be. If this estimated amount exceeds 105% of the prior year, this triggers a truth in taxation hearing. This notice needs to go out not less than 7, but no more than 14 days prior to the hearing. The city could then have the final meeting to adopt the aggregate amount. Trygve Meade said that he knows the number the library will present is going to be $290,200.00. Further discussion took place regarding how this number was calculated and determining the EAV. Attorney Jump said the other alternative is the ability that the city would have to reduce the amount that the library has asked for. Trygve Meade said he wants to be clear that he does not think the city has the statutory authority to do that. It is his position that the city does not have the authority to reduce the amount the library is asking for. The library has tried for many years not to tax. This decision was not taken lightly by the library. This tax will simply allow the library to keep their doors open. This will not be making the library rich, but instead will make them solvent. Trygve said he just hopes the council will pass their request. Attorney Jump said there are a hand-full of statutes that must be looked at regarding the various taxes. There are 5 different areas that fall into play and some of them have different language. If council wants Attorney Jump to look into the reduction of the library's request-this would be an option. Mayor McDowell asked how long the library knew about the financial difficulties and the possible need for the levy. Trygve said the library has known for a while that it might have to happen. This has been something the library has tried to consistently avoid. The library has cut staffing and reduce expenditures in as many areas as possible. The increase in minimum wage has accelerated the need to levy taxes. Mayor McDowell said he met with Trygve back in February of this year to discuss their levy request. At that time Trygve discussed the possibility of cutting some items to reduce their financial burden. Trygve explained that they previously looked into items that could be cut and getting grants. Trygve said the library is currently at the minimum for staffing and hours of operation to remain complaint with the state library association. It would be impossible at this point to cut anything else. The library is always looking for additional sources of funding. Grant funding is usually a one-time thing and will not sustain the library long term. The library needs these funds just to keep the doors open. Director Kim Bunner further explained that they have tried for years to just live within the trust. They have previously cut staff and hours-and they know they can't continue without this funding request. Kim said the statute provides that the corporate authority will levy in the amounts determined by the library board. Mr. Parlin started the library with a tax and the library has been fortunate enough for 61 years ago to say that they did not need it, however the library is now needing it to maintain the facility. The average impact on each household will be approximately $48.00. Trygve said he would be at the hearing to explain why this levy is necessary. Alderman Nelson said he does not see any other option other than doing the truth in taxation hearing due to the library's request. Alderman Lovell said he would second the motion made by Alderman Nelson. Amended Motion and second were made by Aldermen Nelson to recommend to Council that the city move forward at the same rate as the previously year and add the library's request to make it a 10.2 request and have a truth in taxation hearing. Attorney Jump said the motion could be to recommend to council that the city move forward with the library's request as currently stands with the numbers that Beka used for this year- understanding that this may result in a truth in taxation hearing subject to further discussion by Council. Amended Motion and second were made by Aldermen Nelson/Lovell to recommend to Council that the city move forward with the library's request as currently stands with the numbers that Beka used for this year-understanding that this may result in a truth in taxation hearing subject to further discussion by council. Roll Call: Ayes: Alderman Nelson, Lovell, West, Chamberlin Nays: None Absent: None The motion carried. This item will be on the November 17, 2020 Council meeting. Comptroller Beka Schultz requested that the library provide a copy of their budget for review prior to the meeting on November 17, 2020. Director Kim Bunner said the library has their budgetary amounts recorded. The trust will provide approximately 67% of what is needed. The corporate .15% was estimated on an EAV that was reasonable within 3%. The main goal is to look at accommodating the minimum wage- since several people are not currently at$15.00 per hour. Comptroller Beka Schultz said that minimum wage doesn't go up to $15.00/hour for another three years. It will only go up $1.00 at a time. Director Bunner said that when they projected out seven years, that's when they saw that this would not work and they had to an estimated plan for building issues that have been done with Phillips and Associates projecting out five years. The library has an estimated $280,000.00 re- roofing job that needs to be done by 2025. If the planning is done ahead, the library could save on their trust amounts so they can cover this without needing to ask for anything further. Director Bunner said that all of their financial information including the audit and budgets are located on their website. DISCUSS, CONSIDER AND VOTE ON A RECOMMENDATION TO COUNCIL REGARDING THE PURCHASE OF A DUMP TRUCK AND FINANCING RELATED THERETO. Treasurer Wilkinson said she spoke with the banks and all of them except Triumph Bank could hold the interest rate for the city until this Spring with the purchase is made. Treasurer Wilkinson would just need to check with the banks to see if the same rate would be offered for 4 years instead of a 5-year loan. Treasurer Wilkinson will check with the banks to see what they would offer for a 4-year rate compared to a 5-year rate. Motion and second were made by Alderwoman Chamberlin to table until Treasurer Wilkinson has a chance to check with the banks on the 4-year rate. Ayes: Alderman Nelson, West, Lovell, Chamberlin Nays: None Absent: None The motion carried. Legal &Ordinance Alderman Craig West, Chairman Negotiations, Grievance & Personnel Alderman Justin Nelson, Chairman Community and Industrial Development Alderman John Lovell, Chairman Adjournment Motion and second were made by Aldermen Nelson/Chamberlin to adjourn into executive session for: SILOS 120/2 C1, C2, CS, C6. There will be no action taken after the executive session. Those on the committee voting Aye are as follows: Aldermen West, Chamberlin, Lovell, Nelson Those on the committee voting no are as follows: None Those on the committee absent are as follows: None The motion carried. Diana Pavley Rock, City Clerk