Loading...
HomeMy WebLinkAbout10-27-2020 Clerical Committee Meeting MInutes CLERICAL COMMITTEE Tuesday October 27, 2020— 5:30pm CITY HALL 2 North Main Street, Canton IL 61520 VIA ZOOM 893 8130 9143 Aldermen in attendance: Alderman Andra Chamberlin, Justin Nelson, John Lovell, Craig West, Jeff Fritz, Aldermen absent: Staff in attendance: Mayor Kent McDowell, City Clerk Diana Pavley Rock, Attorney Chris Jump, City Treasurer Crystal Wilkinson, Comptroller Beka Schultz, Street Superintendent Ron Robinson In the audience: Parlin Ingersoll Director Kim Bunner, Parlin Ingersoll Board President Tryvge Meade News Media- Fulton Democrat 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 BEGINNGING MAY 1, 2020 AND ENDING APRIL 30, 2021 Comptroller Beka Schultz explained that the committee would need to decide on a recommendation to take to council for the levy. The City received a request from Parlin Ingersoll Library to levy taxes for the library. The City is limited to a 5% increase unless the City holds a truth in taxation hearing. The City could decrease the amount they typically would include in the levy to try to incorporate the library's request into the levy without exceeding the 5%. The City could also decide to have the normal amount the City would be asking for with the levy and then add the library portion-and hold a truth in taxation hearing if this amount exceeds the 5%. The library's request- as well as what is allowed as the statutory limits on their corporate request is in the amount of$288,000.00. The total increase that the City can ask for-over last year's 2.8 million dollars- is $141,000.00 . The final EAV will not be approved for several more weeks from the Fulton County Assessor. A 4% increase would cut the city's request down approximately $100,000.00. All but one fund is corrected- as far as the deficits that were previously incurred from prior administrations. This one fund is one that really can' have anything done about it based on other limitations. The City does have enough of a surplus built up, that we can take away some from our request and still be ok. Comptroller Beka Schultz asked if this is just a one-time request from the library, or if they would continue to make this request each year. Library Director Kim Bunner said that the total amount they are requesting aftertheir revision is $290,200.00. The City received an estimated EAV from the County Assessor, so their request would need to be revised again. Based on the last 10 years of the City's EAV,we have not ever seen a 3%increase. The average is 1%. Trygve Meade stated that this request will be one made each year- and it is designed to address a structural problem in their budget that couldn't be addressed any other way. Comptroller Beka Schultz explained that the City could decrease the amount they would ask for this year, with a 4 percent increase over the next 4 years- the City could be back at the levels they are at now. Treasurer Wilkinson further discussed the amounts that would be required for the police and fire pension funds. These are the two funds of most concern. Alderman Nelson asked how our revenues are currently looking to replenish the funds that will need to be paid out for the various funds. Beka explained that she reviewed the budget to the actual through the end of September. There were no large variances, other than the gaming fund. This is where the sidewalks, demolition and the cemetery are receiving extra funding. The normal operating general fund does not reflect missing money from the pandemic. Most of what is anticipated will actually hit in FY22 just because of the timing on when the state collects money vs how they pay the City. Treasurer Wilkinson said she did look up the replacement tax, because this does impact our pensions. Estimates were lowered from last year. The City is off by approximately$20,000.00 on the estimate that was originally received for replacement tax. The City uses replacement tax to fund police and fire pensions and IMRF pensions. Alderman Nelson said based on the funds needed for pensions and the request from the library he does not see a way to keep the request below 5%. Attorney Jump said there is some room for interpretation on at least the larger amount of money that the library is asking for. As an example, the tort immunity portion of the levy specifically states that the corporate authority "may" levy for that amount. Attorney Jump suggested seeing if the City could possibly work with the library to see if the amount requested is needed right now. This would prevent such a large increase this year. Trygve Meade stated that the library will need it at some point—even if the library was able to do without it this year, it will still be needed down the road. This would then cause a very sharp increase in another year. It has been 41 years since the library has asked the City for any funds from the levy. Unfortunately, this needs to be done at this point. The minimums wage increases play a part in the needed levy. The library is aware that this could trigger a truth in taxation hearing, so they are willing to come to the hearing to explain that the library is asking for these funds which causes the need for a truth in taxation hearing. The library prefers to not lower any of the proposed numbers- as these are the funds that has been determined that would be needed. The library said they would make it clear to the public that it is their request that causes the amount to exceed the 5% causing the truth in taxation hearing. Director Bunner said the statute does state that the amounts "shall" be levied by the corporate authorities in the amounts determined by the library board. Mr. Parlin originally developed the library with a tax involved, and the library was fortunate for years to not need to tax. The library has cut as many things as possible over the last several years, and it is no longer a reality to not seek funds from the levy. Attorney Jump explained that a portion from the public library's act that authorizes the board to recommend an amount to the corporate authorities in order to levy for library purposes. Attorney Jump said it is his opinion that this has to do with the taxes set forth in the public library's act, not all of the additional taxes that are being requested- in which are at the discretion of the corporate authorities or the City Council to ultimately approve for purposes of the levy. A handful of statutes would need to be reviewed to get to all of the various numbers. The statute specifically sited by Director Bunner is an amount that states that the corporate authorities shall levy up to an amount not to exceed .15%. This is the bulk of the money, but then there are four other funds broken down which include an audit fund amount, a risk management loss control, a portion for IMRF contributions on behalf of the employer and social security contributions. Director Bunner said she could have their library attorney reach out to Attorney Jump, but he has already expressed that the amounts being requested by the library are amounts they can ask for. Attorney Jump said he is wanting to see if the library can reduce there amounts so the City does not get themselves into a position where they can't meet their own obligations. A determination will just need to be made to see if a truth in taxation hearing will be held or if funds can be reduced to eliminate the need for a hearing. Trygve Meade said they do regret asking for the amounts, but does believe that the amount being requested are as low as possible. The progressively increasing minimum wage is part of the reason that this request is necessary. Attorney Jump said the committee will just need to decide what their recommendation is to the council. The proper notices and publications will need to be made and the overall levy is due the last Tuesday in December. The City will need to make sure the deadlines are met with the levy process. The library will hold a meeting on November 18, 2020 to prepare a final request for the City. Alderman Fritz said he would like to see the numbers from the Library and an analysis from our Treasurer to reflect the impact this will have on the City services and the levy considering that we are in the middle of a pandemic. Comptroller Beka Schultz explained that if we use the library figures and the City does not take any increase at all it would be a 10.2% increase. The City could look at taking decreases on some of their funds to stay below the 5% as an option. This would take away from the City reserves if decreases are made. Trygve said that they calculated an average impact per household from their request would be approximately a $50.00 increase. There should be a separate library corporate portion that will be reflected separately on the individual tax bills. Alderman Nelson said he does not feel they have enough information to make a recommendation to Council. Treasurer Wilkinson said another committee meeting could be held Monday, November 2 at 5:30pm. Motion and second were made by Alderwoman Chamberlin/Nelson to table this until the next committee meeting to be held on Monday, November 2, 2020 at 5:30pm. Ayes: Alderwoman Chamberlin, Aldermen West, Lovell Nelson Nays: None Absent: None The motion carried. DISCUSS, CONSIDER AND VOTE ON A RECOMMENDATION TO COUNCIL IN SELECTING A FINANCIAL INSTITUTION FOR THE DUMP TRUCK LOAN. Treasurer Wilkinson explained that this should be tabled. The City does not need to get a loan for this until the Spring. Attorney Jump said the City needs to make sure it will not impact the statutory lending limits as a municipality. This item will be tabled until the next committee meeting on Monday, November 2, 2020 at 5:30pm. Ayes: Alderwoman Chamberlin, Aldermen West, Lovell Nelson 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/West to adjourn without the need for executive session. Those on the committee voting Aye are as follows: Aldermen Chamberlin, Lovell, Nelson Those on the committee voting no are as follows: None Those on the committee absent are as follows: Alderman Craig West The motion carried. Diana Pavley Rock, City Clerk