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Home My WebLink About03-01-2022 Council Meeting Minutes CANTON CITY COUNCIL MEETING MINUTES TUESDAY, MARCH 1, 2022 at 6:30pm Historic Depot-Donald E Edwards Way th 50 North 4 Avenue Canton Il 61520 A regular meeting of the Canton City Council was held on March 1, 2022 (6:30pm) via zoom. STAFF IN ATTENDANCE: Mayor Kent McDowell, City Clerk Diana Pavley Rock, Attorney Chris Jump, Treasurer Crystal Wilkinson, Interim Fire Chief Tony Plumer, Interim Police Chief Michael Eveland, Superintendent Ron Robinson, System Maintenance Superintendent Dash Wilson, Utility Director Joe Carruthers, Comptroller Beka Schultz, City Engineer Keith Plavec MEDIA IN ATTENDANCE: Fulton Democrat, Daily Ledger PLEDGE OF ALLEGIANCE OPENED THE MEETING INVOCATION – Mayor Kent McDowell PUBLIC PARTICIPATION ROLL CALL Yes No Absent Alderperson Gossett X Alderperson X Lingenfelter Alderperson Fritz X Alderperson Hale X Alderperson West X Alderperson Lovell X Alderperson Nelson X Alderperson X Chamberlin ADDITIONS OR CORRECTIONS TO THE AGENDA CONSENT AGENDA APPROVAL OF THE COUNCIL MEETING MINUTES HELD FEBRUARY 15, 2022 BIL LIST JANUARY DISBURSEMENT REPORT TREASURER’S REPORT COMPTROLLER’S REPORT Motion and second were made by Alderpersons Nelson/Hale to approve the consent agenda. ROLL CALL Yes No Absent Alderperson Gossett X Alderperson X Lingenfelter Alderperson Fritz X Alderperson Hale X Alderperson West X Alderperson Lovell X Alderperson Nelson X Alderperson X Chamberlin The motion carried. COMMITTEE REPORTS: . FINANCE ALDERPERSON ANDRA CHAMBERLIN, CHAIR APPROVAL OF THE FY 2020-2021 AUDIT Tom Burroughs and Aaron Phillips from Phillips Salmi and Associates presented the 2020-2021 audit to the council. Tom reported that there were no deficiencies during their audit testing of internal controls and the segregation of duties are adequate. There were no concerns found during the audit testing. The consolidated year end financial report was required by the state due to the city expending more than $300,000.00 of grant funds. The annual financial report was also required by the state comptroller, and both reports have been submitted to the state. Aaron Phillips reviewed the statement of net position (page 6) of the financial statements. The statement of net position is the assets of the city, minus the liabilities of the city to get the net position. The total assets of the city are reported at $51,765,457. The liabilities are $10,999,705. The total net position for the city is $41,152,136. Of the $41,152,136 of net assets there are $38,000,000 which are capital assets (roads, infrastructure, water/sewer) Aaron further explained that during the audit process he is looking at the progress the city makes from one year to the next. The city has approximately $13,000,000 in cash and restricted assets. Last year this same number was $9,900,000. This reflects over $3,000,000 increase in assets from just one year ago. The liabilities include the debt the city owes on the TIF and the water/sewer bonds. The water sewer bonds are almost paid. The bonds that started in 2005 are now three years away from being paid off. The liabilities total is $10,996,705. Last year the total debt was $13,500,000. The city has reduced their debt 2.5 million over the last year. The combined increase in assets and the decrease in liabilities puts the city in a better position than the past. Aaron further explained that this audit year is from the COVID pandemic. The city reduced spending during the pandemic. The city also received funding during the pandemic from the CARES ACT in the amount of $606,000.00. The funds went toward expenses that were already expended. There were also the Rebuild Illinois MFT money. The revenues from 2019-2020 were approximately $550,000.00. In 2021 the MFT fund were closer to 1 million. The year of the audit is also when the city started receiving the cannabis tax. The cannabis tax was approximately $115,000.00. Aaron discussed the long-term debt from the audit report. The city has 8 more years to pay off the TIF note. The city has an EPA loan that has a balance of $300,000.00 and this will be paid off in 1.5 years. The old water/sewer bonds have a balance of $5,575,000 and will be paid off in 2024. Aaron said it is fantastic that these long -term debts will be paid off. Interest rates went down and the city was able to refinance, which will save the city over $150,000.00 over the next three years. Aaron said everyone at the city is really doing a great job for the City of Canton. Everything found during the audit really reflects the hard work that everyone has been doing. The Supplementary of financial information shows the changes the city has made over a 5 to 6 year period. This report will compare revenues, expenses and pension liabilities over a 5 to 6 year period. Page two of the report is the general fund. In 2016 the total revenues were $8,471,905. In 2021 the total revenues were $11,624,679. Aaron explained that if an entity receives more than $750,000.00 in federal grant funds a compliance audit needs to be performed. The city might require this for the next audit year. The report reflects the expenditures disbursed were approximately the same from 2020 to 2021. This again shows that spending was reduced during the pandemic due to the uncertainty. This year the city had over $2,039,000 in reserves compared to only $239,920.00 in 2016. The cash and investments were $602,704.00. In 2021 this number has greatly increased to over 4.8 million dollars. Aaron also stated that from 2010-2016 the city did not have any reserves. Over the last 10 years there have been significant improvements to the city finances. Aaron said he remembers the time back then that the city was borrowing money while they were waiting on property taxes to come in. The report also has information on the water/sewer fund. The water/sewer fund should operate like a business. It needs to generate enough operating margin to cover the expenses and capital outlay/debt services. Aaron said this report does not reflect anything negative for the city. In 2016 the water/sewer fund had $875,020 in reserves. In 2021 the city had $3,616,948 in reserves. The report also shows information pertaining to the gross wages, health insurance costs, pension costs from 2016-2021. In 2016 the total personnel expenditures were $9,484,963. In 2021 the total personnel expenditures were $10,587,805. The total pensions paid in 2016 were $1,801,778. In 2021 the total pensions paid were $2,471,521. Aaron thanked Treasurer Crystal Wilkinson, City Clerk Diana Pavley Rock and Clifton Larson for all of their work during the audit. Motion and second were made by Alderperson Chamberlin/Nelson to approve The FY 2020-2021 Audit. ROLL CALL Yes No Absent Alderperson Gossett X Alderperson X Lingenfelter Alderperson Fritz X Alderperson Hale X Alderperson West X Alderperson Lovell X Alderperson Nelson X Alderperson X Chamberlin The motion carried. DISCUSS, CONSIDER AND VOTE ON A RESOLUTION APPROVING AN ENGAGEMENT LETTER WITH LAUTERBACH AND AMEN TO PROVIDE POST-EMPLOYMENT BENEFITS OTHER THAN THE PENSIONS GASB 75 RESOLUTION #5361 This is a process that takes place with the city every three years for an actuary on the post- employment benefits. The purpose of the actuary is to provide information on the unfunded liabilities. Motion and second were made by Alderperson Chamberlin/Nelson to approve THE FY 2020-2021 Audit. . ROLL CALL Yes No Absent Alderperson Gossett X Alderperson X Lingenfelter Alderperson Fritz X Alderperson Hale X Alderperson West Alderperson Lovell X Alderperson Nelson X Alderperson X Chamberlin The motion carried. DISCUSS, CONSIDER AND VOTE ON THE MUNICIPAL AGGREGATION WITH DACOTT ENERGY A representative from Dacott Energy Services was at the meeting to discuss electric aggregation. In March 2020 the City of Canton elected to enter into a 24-month agreement at $0.0439/kWh with Homefield Energy. The contract has performed very well against the utility, reducing costs for residents by nearly $550,000 since June 2020, an aggregation savings of $1,130,000 for the life of the program starting June 2016. The weather, economy as well as supply and demand are all bullish for the near and long term with very few indicators suggesting otherwise. There is a lot of uncertainty in the markets and this makes it very difficult when you are trying to lock in a price. Everyone is estimating that prices will go up, but nobody is sure exactly how much they will increase over time. The City of Canton Electric Aggregation Program has completed the RFP process for the renewal date of June 2022. All registered alternative retail electric suppliers in the state of Illinois were allowed the opportunity to bid, of those 3 responded with bids. The three bidders were Constellation, Homefield and Energy Harbor. Homefield Energy came in with the lowest bid. The bid amount for a 12- month contract was $0.0842. This reflects the increase when you consider the current contract amount is $0.0439. It is the recommendation of Dacott to do a 12- month term with Homefield Energy at $0.0842. If projections are right, this price will be lower than the published price comes out in June. The purchasing strategy is to purchase before the price to compare has been published, because once it is published, suppliers will follow suit. If the city were to wait until June, the prices could go up. Residents can leave the program at any time. If the Ameren rate is lower, residents can leave the program at any time and go back to Ameren. Motion and second were made by Alderperson Chamberlin/Hale to accept the 12-month contract with Homefield Energy. ROLL CALL Yes No Absent Alderperson Gossett X Alderperson X Lingenfelter Alderperson Fritz X Alderperson Hale X Alderperson West X Alderperson Lovell X Alderperson Nelson X Alderperson X Chamberlin The motion carried. LEGAL AND ORDINANCE ALDERPERSON CRAIG WEST, CHAIR DISCUSS, CONSIDER AND VOTE ON A RESOLUTION APPROVING A SETTLEMENT AGREEMENT FOR THE PURPOSES OF DEMOLISHING 124 MARTIN AVENUE, CANTON ILLINOIS. This item was tabled until after the executive session meeting. DISCUSS, CONSIDER AND VOTE ON AN ORDINANCE TO ESTABLISH A DATE FOR A PUBLIC HEARING REGARDING THE PROPOSAL TO CONSIDER AND APPROVE A BUSINESS DISTRICT DESIGNATING A BUSINESS DISTRICT REDEVELOPMENT PLAN FOR THE PROPOSED CANTON BUSINESS DEVELOPMENT DISTRICT NO 1 ORDINANCE #4280 Attorney Jump explained that this item previously came before the council and was approved, but Gannett Publishing put the public hearing notice in the wrong paper. This needs to be corrected to meet the states guidelines. Motion and second were made by Alderperson Fritz/West to waive the first reading of the ordinance. ROLL CALL Yes No Absent Alderperson Gossett X Alderperson X Lingenfelter Alderperson Fritz X Alderperson Hale X Alderperson West X Alderperson Lovell X Alderperson Nelson X Alderperson X Chamberlin The motion carried. Motion and second were made by Alderperson West/Nelson to approve the ordinance and place it on file. ROLL CALL Yes No Absent Alderperson Gossett X Alderperson X Lingenfelter Alderperson Fritz X Alderperson Hale X Alderperson West X Alderperson Lovell X Alderperson Nelson X Alderperson X Chamberlin The motion carried. NEGOTIATIONS, GRIEVANCE & PERSONNEL ALDERPERSON JUSTIN NELSON, CHAIR COMMUNITY & INDUSTRIAL DEVELOPMENT ALDERPERSON JOHN LOVELL, CHAIR DISCUSS, CONSIDER AND VOTE ON A SPECIAL EVENT AND ROAD CLOSURE REQUEST FOR THE LEPRECHAUN LOOP TO BE HELD ON MARCH 19, 2022 The city received a request for a special event and road closure for the Leprechaun loop to be held March 19, 2022. The map and certificate of liability insurance was submitted with the application. Motion and second were made by Alderperson Lovell/Nelson to approve the Leprechaun Loop special event and road closure to be held March 19, 2022. ROLL CALL Yes No Absent Alderperson Gossett X Alderperson X Lingenfelter Alderperson Fritz X Alderperson Hale X Alderperson West X Alderperson Lovell X Alderperson Nelson X Alderperson X Chamberlin The motion carried. PUBLIC WORKS, WATER & SEWER ALDERPERSON ANGELA LINGENFELTER, CHAIR PUBLIC SAFETY AND TRAFFIC ALDERPERSON ANGELA HALE, CHAIR STREETS AND GARBAGE ALDERPERSON JEFF FRITZ, CHAIR DISCUSS, CONSIDER AND VOTE ON A PRICE CHANGE FOR A NEW GARBAGE TRUCK This item was tabled until after the executive session. LAKE, BUILDINGS AND GROUNDS ALDERPERSON GREG GOSSETT, CHAIR MAYOR COMMUNICATION Mayor McDowell thanked the public works employees and the police department employees for their work in removing the snow during the recent snow storm. The public is encouraged to call city hall with any reports of pot holes so they can be fixed. A budget meeting will be held on Tuesday, March 8, 2022 at 6:00pm in the Director’s room at City Hall. . OLD BUSINESS NEW BUSINESS . ADJOURNMENT MOTION and second were made by Alderpersons Nelson/Hale to adjourn into executive session for 5 ILCS 120/2, C11 ROLL CALL Yes No Absent Alderperson Gossett X Alderperson X Lingenfelter Alderperson Fritz X Alderperson Hale X Alderperson West X Alderperson Lovell X Alderperson Nelson X RECONVENED CANTON CITY COUNCIL MEETING MINUTES Alderperson X Chamberlin The motion carried. TUESDAY, MARCH 1, 2022 Historic Depot-Donald E Edwards Way th 50 North 4 Avenue Canton Il 61520 The council reconvened back into open session after the executive session. STAFF IN ATTENDANCE: Mayor Kent McDowell, City Clerk Diana Pavley Rock, Attorney Chris Jump, Treasurer Crystal Wilkinson, Comptroller Beka Schultz, City Engineer Keith Plavec MEDIA IN ATTENDANCE: Fulton Democrat, Daily Ledger ROLL CALL Yes No Absent Alderperson Gossett X Alderperson X Lingenfelter Alderperson Fritz X Alderperson Hale X Alderperson West X Alderperson Lovell X Alderperson Nelson X Alderperson X Chamberlin STREETS AND GARBAGE ALDERPERSON JEFF FRITZ, CHAIR DISCUSS, CONSIDER AND VOTE ON A PRICE CHANGE FOR A NEW GARBAGE TRUCK This item is tabled. LEGAL AND ORDINANCE ALDERPERSON CRAIG WEST, CHAIR DISCUSS, CONSIDER AND VOTE ON A RESOLUTION APPROVING A SETTLEMENT AGREEMENT FOR THE PURPOSES OF DEMOLISHING 124 MARTIN AVENUE, CANTON ILLINOIS. RESOLUTION #5362 Motion and second were made by Alderperson West/Nelson to approve the resolution and place it on file. ROLL CALL Yes No Absent Alderperson Gossett X Alderperson X Lingenfelter Alderperson Fritz X Alderperson Hale X Alderperson West Alderperson Lovell X Alderperson Nelson X Alderperson X Chamberlin The motion carried. ADJOURNMENT MOTION and second were made by Alderpersons Nelson/Hale to adjourn ROLL CALL Yes No Absent Alderperson Gossett X Alderperson X Lingenfelter Alderperson Fritz X Alderperson Hale X Alderperson West X Alderperson Lovell X Alderperson Nelson X Alderperson X Chamberlin The motion carried. __________________________________________________ Diana Pavley Rock, City Clerk ____________________________________________________ Kent McDowell, Mayor