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HomeMy WebLinkAbout04-14-2015 Council Meeting Minutes A special meeting of the Canton City Council was held on April 14, 2015 (6:30PM) in the Council Chambers, The Donald E. Edwards Way-50 North 4th Avenue, Canton, Illinois 61520. STAFF IN ATTENDANCE: City Attorney Nancy Rabel, Community Service Director Jason Strandberg, Treasurer Kathy Luker, Mayor Jeffrey Fritz, City Clerk Diana Pavley-Rock, Interim Police Chief Rick Nichols, Fire Chief Tom Shubert, Comptroller Caty Campbell, Firefighter Jay Smith, Firefighter Keith Deppermann MEDIA IN ATTENDANCE: Daily Ledger- Larry Eskridge Video Services by Joe Ginger OTHERS IN THE AUDIENCE: ------------------------------------------------------------------------------------------------------------ ROLL CALL Yes No Absent Alderman Gerald x Ellis Alderman Justin x Nelson Alderman John x Lovell Alderman Angela x Hale Alderman Craig x West Alderman Tad x Putrich Alderman Dave x Pickel Alderman Jim x Nelson FINANCE COMMITTEE Alderman Justin Nelson Chairman Alderman Craig West, Acting Chair DISCUSS 2015-2016 BUDGET Treasurer Kathy Luker explained that currently the amended budget is standing at a surplus in the general fund in the amount of $35,858.00. The surplus in the water and sewer fund is in the amount of $71,169.00. If the City takes the difference in the health insurance from 5.14% down to 2.60% it can make a difference of$34,894.00 in the general fund and $11,889.00 in the water and sewer fund. If the City does not agree to the firefighter agreement in the amount of $99,000.00 it would create a deficit in the general fund in the amount of $63,142.00 without the health insurance change. The City will not have a final answer on the health insurance figure until after the insurance committee meets later this week. Mayor Fritz said the insurance committee is a recommending body, but the Council will have the final say regarding what insurance company the City will go with. Mayor Fritz said if the insurance is decreased from the 5.14% down to 2.60% that would create an additional $34,894.00- so that would give over a $69,000.00 surplus in the general fund. This amount includes the police retro pay that will be paid once the union contract is settled. Community Services Director Jason Strandberg said he understands that some of the Aldermen have stated that they will not vote in favor of the budget. It is still very important for them to realize that they must pass a budget by the end of the fiscal year so they will need to have a solution to pass the budget. If a budget is not passed by the end of April, the City will not be able to pay any bills or complete payroll. The City is required to have six out of the eight votes to pass a budget. Alderman Ellis said the insurance committee wanted to have time to check out references, but he believes the committee will recommend the lower quote. Alderman Putrich asked where the budget will stand if we do not agree to the firefighter's agreement, pay the police retro pay and use the lower quote of 2.6% for the insurance. Treasurer Kathy Luker said the amount would be -$28,248.00. The amended budget including the police payout, the insurance at 5.14% creates a surplus of $35,858.00. If the insurance is reduced to 2.6% it would give an additional surplus of $35,000.00. This would bring the total to $70,752.00. If the fire department receives $30,000.00 in expenses it would give an amended budget amount of $40,752.00. Mayor Fritz said if the City would agree to the agreement, the $30,000.00 would be offset by comp time. This would get the surplus in the general fund up to $70,000.00. Alderman Ellis said that would create a problem when the firefighters come next year and say they want paid out for their comp time. The City would no longer be $70,000.00 in the black. The firefighters would be rightfully entitled to their payout. Alderman Lovell said he wanted to further discuss the firefighters agreement and to be told why this agreement came up at the 11th hour. Firefighter Jay Smith said that the agreement is the exact same document that was signed by the Bohler administration. There were just a few minor language changes made that was suggested by Attorney Rabel. Attorney Rabel said the agreement didn't come at the 11th hour. The fire department was brainstorming in ways to cut their budget during the last few weeks during budget discussion. Jay further explained they had to go before their membership to get approval to bring the agreement to the Council. Fire Chief Tom Shubert said he has been discussing various ways to help with the budget during the past several weeks and it was an outstanding thing that the union did. They stepped up to the plate to help balance a budget. Alderman Putrich said he is in favor of putting the $30,000 back in the budget. Alderman Purich said maybe the city could look at the agreement in four months from now if needed. Rick Nichols said they have a 3 man minimum per shift. When you start cutting people to fill in when someone is using PTO you can't eliminate overtime. When you cut people something has to give and certain areas are impacted. The police department has not been this low in staff for a decade. Mayor Fritz said we will begin talking about revenues vs. expenses each meeting. Mayor Fritz said there is an article regarding the budget in the newspaper. It casts a shadow on the fire department for causing overtime and creating a problem with the budget. Alderman Ellis said all departments within the City need to be tightly restrained. The City will have to monitor all expenses closely. The City is down positions in other departments. The City is going to have to do more with less. The City could amend the budget once the determination is made regarding the health insurance. If the City uses the higher figure of 5% the City would still have a budget that could be passed. Alderman Lovell expressed concerns about having a budget that is so tight. What would the City do if there was an error and something comes in over budget. Interim Chief Nichols said the City needs to have more meetings to talk about bringing in more revenue. Alderman Pickel asked why the City pays for the crossing guards. Why doesn't the school pay for this? Chief Nichols said it has been the City's responsibility for many years. It is on City streets and safety patrol must take place. Currently we have a budget that has a surplus of$5,000.00. Alderman John Lovell said he is not comfortable with just a small surplus of $5,000.00. Mayor Fritz suggested that Lovell come back with a figure that he would be comfortable with. The City could then look at ways to get to that figure. Alderman John Lovell asked if a list could be compiled. Jason Strandberg said the City is short everywhere. Alderman Lovell said he would like to see options with such a small amount in the budget as a positive. The City needs to determine if cuts must take place. Alderman Tad Putrich asked how long the City has had two administrative assistants. Attorney Rabel said the Mayor has always had a full time secretary. The Clerk's office always had a full time Deputy Clerk. When Diana first started with the City she was a full time Deputy Clerk. When she became City Clerk they hired Mary Zilly to work part time and have her hours split between the City Attorney and the City Clerk. City Clerk Diana Pavley-Rock said the City already cut a full time Deputy Clerk down to part time that is shared between two different people. Attorney Rabel said that until Chrissie Peterson came to the City they didn't have a full time attorney, so therefore there wasn't a secretary for that person. Attorney Rabel said there have always been two full time people. City Clerk Diana Pavley-Rock said the Council previously talked about hiring a full time human resource director. Diana said she took on those duties along with the duties previously handled by a Deputy Clerk. Alderwoman Hale suggested cutting the pay of the aldermen and giving that back into the general fund. Mayor Fritz previously suggested cutting his salary in half to help with the budget. Alderman Ellis said the elected officials salaries are set by ordinance every four years. It would need to be decided if the money could be donated back. Further discussion took place regarding the final outcome of the insurance quote. Diana will bring back a final determination from the insurance committee after they meet. Alderman Justin Nelson arrives late to the meeting. Treasurer Luker said with the retro pay and the health insurance going down to 5.14% creates a surplus on the general fund in the amount of$35,858.00. This amount includes the $45,000.00 for the fire department. If the health insurance goes down to 2.6% it would give a surplus of $40,752.00. The final surplus amount if the insurance does not go down to 2.6% but stays at the 5.14%will be $5,858.00. Alderman Putrich said this will be a budget the City can work with, but there may need to be a drastic change done as time goes on. A RESOLUTION AMENDING THE AGREEMENT BETWEEN THE CITY OF CANTON AND THE FIREFIGHTERS LOCAL 1807. No motion made Communications from Mayor Jeffrey Fritz Old Business New Business Motion and second were made by Aldermen Pickel/Justin Nelson to adjourn at 7:50pm The motion carried by voice vote and was unanimous. Diana Pavley-Rock, City Clerk Jeffrey Fritz, Mayor